TeraGo Inc.

Good morning, ladies and gentlemen, and welcome to Terrigo's first quarter 2026 financial results conference call. Currently, all participants are on a listen-only mode. Following the presentation, we'll conduct a question-and-answer session with pre-qualified analysts on the call, and instructions will be provided at that time for you to queue up for questions. If anyone has any difficulties hearing the conference, please press star followed by zero for operator assistance at any time. I'd like to remind everyone that this conference call is being recorded. Tarago would like to remind listeners that the company's remarks and answers to your questions today may contain forward-looking statements that are based upon management's current expectations. All such statements are made pursuant to the Safe Harbor provisions and are intended to be forward-looking statements under applicable Canadian securities legislation. When relying on forward-looking statements to make decisions with respect to the company, you should care of the 2025 Annual Information Form, which is available on www.cedarplus.ca, and also consider other uncertainties and potential events. Except as may be required by Canadian securities laws, the company does not undertake any obligation to update any forward-looking statement as a result of new information. We would also like to remind listeners that TerraGo uses certain non-GAAP financial measures to arrive at adjusted results to assess its business and to measure overall performance. Terrigal believes that these financial measures provide readers with a better understanding of how management views the company's overall performance. I'll now turn the conference over to Terrigal's Chief Executive Officer, Daniel Vucinic. Sir, the floor is yours.

Thank you, and good morning, everyone, and welcome to our first quarter 2026 earnings call. Over the past year, we've taken a disciplined approach to reshaping the business, improving operating efficiency, and focusing on customer opportunities that better align with our long-term objectives. That work continued during the first quarter. As part of the process, we've continued to move away from lower margin or unprofitable accounts, which we believe is the right long-term decision for the business. Our objective is to build a stronger, more efficient revenue base, with a greater concentration of mid-market and enterprise customers, multi-location opportunities, and higher value connectivity solutions. We continue to see encouraging activity across our sales pipeline and bookings, particularly from customers seeking resilient, high-quality connectivity solutions to support increasingly data-intensive operations. In today's rapidly evolving business environment, customers are looking beyond basic connectivity and seeking service providers that are agile, highly responsive, and capable of delivering a true white glove experience. Many organizations are reevaluating incumbent providers in favor of partners that can offer proactive support, operational flexibility, and a stronger commitment to customer success. Across the broader technology and telecommunication sector, we continue to see increasing investments in AI infrastructure, private wireless networks, and advanced 5G applications. As these technologies evolve, enterprise connectivity requirements are becoming increasingly data-intensive and latency-sensitive. Millimeter-wave spectrum is particularly well-suited for high throughput, including high upload speeds, and ultra-low latency connectivity environments. As a result, continued industry investment and technological advancement in these areas reinforces the long-term strategic relevance of Terego Spectrum Holdings and wireless network infrastructure. For example, recently Ericsson, Qualcomm, and Australia's NBN co-recently demonstrated Gigabit Class 5G, another native wave performance, over extended distances using millimeter wave spectrum. Developments such as these continue to reinforce the performance capabilities and long-term relevance of millimeter wave technologies for high-capacity wireless applications. At the same time, private wireless and digital twin deployments continue to expand across manufacturing facilities, logistics operations, transportation hubs, warehouses, ports, and mining environments. connecting people and machines with data. Data that is then used to drive significant productivity and efficiency business outcomes. Specific to Canada's ICED recent millimeter wave consultation, they propose to repurpose the lower 26 gigahertz band, previously called the 24 gigahertz, for flexible use. A flex use decision would mean that millimeter wave spectrum could be used for both mobile and fixed wireless services, whereas today it is only permitted for fixed wireless. When we look at service providers in the U.S., they're increasingly leveraging millimeter-wave technology to enhance mobile connectivity in densely populated areas such as stadiums, for example, World Cup soccer games coming up, concert arenas, and urban centers. The extremely high capacity ultra-low latency of millimeter wave spectrum make it ideal for supporting large crowds where conventional mid-band and low-band networks often experience congestion. We are encouraged by the progress ICED made in that 2025 5G millimeter wave consultation on the 26 gigahertz and 38 gigahertz bands. As for our operating business, we continue to prioritize improving the quality of our revenue base managing costs responsibly, and driving greater efficiency across the organization. This includes ongoing reviews of our network footprint, infrastructure utilization, operating costs, and real estate footprint. Although the broader operating environment remains competitive, we are encouraged by the level of customer engagement and bookings activity we continue to see in the market. With that said, I'll turn it over to our CFO, Raj Sapra.

Thanks, Stan. Good morning, everyone. Moving on to our Q1 financial results presentation on slide four for an overview of our KPIs. Our average revenue per customer, or ARPA, in our connectivity business increased by 1.9% to $1,253 in Q1 2026 compared to $1,229 for the same period last year. The continued improvement in ARPA levels is driven by favorable shifts in our customer base and product mix, as Dan alluded to earlier. Our churn was .9% compared to 1.2% for the same period last year. Customer churn is a continued focus of the business, and we continue to improve our initiatives around the customer retention, reflecting our ongoing execution of our strategy to enhance customer engagement with a focus on mid-market and large-scale customers, as well as implementation of enhanced renewal and retention programs. Turning to slide five to go through our broader Q1 2026 financial summary, total revenue for Q1 was $6.17 million as compared to $6.4 million for the same period last year. The decrease in revenue reflects a combination of lower bookings in the fiscal year 2025, which permeates into the early part of 2026, as well as the company's focus on optimizing its customer base, including the intentional churn of low margin and non-strategic customers. These impacts were partially offset by improved sales bookings in the first quarter of 2026. Adjusted EBITDA was $931,000 in Q1 2026 compared to just over a million dollars for the same period last year. The marginal decrease reflects the earlier mentioned revenue decreases, partially offset by significant disciplined cost management and continued operational efficiencies across the business. Net loss for the quarter was $3.14 million compared to a net loss of $3.5 million in the same period last year. The decrease in net loss was primarily driven by the change in the stock compensation expense as there were more option cancellations in Q1 this year versus last year. Moving now to slide six, with respect to the balance sheet, The company ended the first quarter of 2026 with about 9.8 million in cash and cash equivalents. In the first quarter of 2026, the company generated approximately 319,000 in cash flow operations as compared to 0.96 million in the same period last year. With that said, I would like to turn the call back over to Dan.