NTG Clarity Reports 51% Year-Over-Year Revenue Growth, Driven by Growth in High-Margin Segments
NTG Clarity (OTC:NYWKF) reported strong Q2 2025 financial results with revenue growing 51% year-over-year to $18.9 million, driven by 89% growth in offshore services and 1,688% growth in NTGapps. Gross profit increased 68% to $7.2 million, with margins improving to 38% from 34% year-over-year.
However, net income declined to $0.4 million (2% margin) from $2.4 million (20% margin) due to a $1.2 million FX headwind and $0.9 million tax provision. The company reaffirmed its 2025 guidance expecting revenue of approximately $78 million and Adjusted EBITDA margin of 16-20%. Post quarter-end, NTG completed an equity financing raising $8.2 million to support larger contracts and potential M&A opportunities.
NTG Clarity (OTC:NYWKF) ha riportato solidi risultati finanziari per il 2° trimestre 2025 con ricavi in crescita del 51% su base annua, arrivati a 18,9 milioni di dollari, trainati da un aumento dell'89% nei servizi offshore e del 1.688% in NTGapps. Il utile lordo è salito del 68% a 7,2 milioni di dollari, con margini che sono passati dal 34% al 38% anno su anno.
Tuttavia, l'utile netto è diminuito a 0,4 milioni di dollari (margine 2%) rispetto a 2,4 milioni (margine 20%) a causa di un impulso negativo legato al FX di 1,2 milioni e di una disposizione fiscale di 0,9 milioni. La società ha confermato le previsioni per il 2025, prevedendo ricavi di circa 78 milioni di dollari e un margine Adjusted EBITDA tra il 16% e il 20%. Dopo la chiusura del trimestre, NTG ha completato un finanziamento azionario raccogliendo 8,2 milioni di dollari per sostenere contratti più ampi e potenziali operazioni di M&A.
NTG Clarity (OTC:NYWKF) informó sólidos resultados financieros en el 2T 2025 con ingresos que crecieron un 51% interanual hasta 18,9 millones de dólares, impulsados por un crecimiento del 89% en servicios offshore y del 1.688% en NTGapps. La utilidad bruta aumentó un 68% hasta 7,2 millones de dólares, con márgenes que mejoraron del 34% al 38% interanual.
No obstante, la utilidad neta se redujo a 0,4 millones de dólares (margen 2%) desde 2,4 millones (margen 20%) debido a un impacto negativo por FX de 1,2 millones y una provisión fiscal de 0,9 millones. La compañía reafirmó su guía para 2025, esperando ingresos de aproximadamente 78 millones de dólares y un margen Adjusted EBITDA del 16-20%. Tras el cierre del trimestre, NTG completó una financiación mediante acciones que recaudó 8,2 millones de dólares para apoyar contratos más grandes y posibles oportunidades de M&A.
NTG Clarity (OTC:NYWKF)는 2025년 2분기에 견조한 실적을 발표했습니다. 매출이 전년 대비 51% 증가하여 1,890만 달러를 기록했으며, 이는 오프쇼어 서비스가 89% 성장하고 NTGapps가 1,688% 성장한 데 힘입은 것입니다. 총이익은 68% 증가한 720만 달러로, 마진은 전년의 34%에서 38%로 개선되었습니다.
다만, 순이익은 24백만 달러에서 40만 달러로 감소(마진 2%)했는데, 이는 1.2백만 달러의 환손실(FX) 영향과 0.9백만 달러의 세금 충당금 때문입니다. 회사는 2025년 가이던스를 재확인하며 약 7,800만 달러의 매출과 16–20%의 조정 EBITDA 마진을 예상했습니다. 분기 종료 후, NTG는 더 큰 계약과 잠재적 M&A 기회를 지원하기 위해 820만 달러의 주식 자금 조달을 완료했습니다.
NTG Clarity (OTC:NYWKF) a publié de solides résultats pour le 2e trimestre 2025 avec des revenus en hausse de 51% sur un an, à 18,9 millions de dollars, portés par une croissance de 89% des services offshore et de 1 688% de NTGapps. La marge brute a augmenté de 68% pour atteindre 7,2 millions de dollars, les marges passant de 34% à 38% en glissement annuel.
Cependant, le résultat net a diminué à 0,4 million de dollars (marge 2%) contre 2,4 millions (marge 20%), en raison d'un vent de face FX de 1,2 million et d'une provision fiscale de 0,9 million. La société a confirmé ses prévisions 2025, s'attendant à des revenus d'environ 78 millions de dollars et à une marge d'Adjusted EBITDA de 16 à 20%. Après la clôture du trimestre, NTG a réalisé un financement par émission d'actions levant 8,2 millions de dollars pour soutenir des contrats plus importants et d'éventuelles opérations de fusion-acquisition.
NTG Clarity (OTC:NYWKF) meldete starke Finanzergebnisse für das 2. Quartal 2025 mit einem Umsatzanstieg von 51% gegenüber dem Vorjahr auf 18,9 Millionen US-Dollar, getragen von einem Wachstum der Offshore-Dienstleistungen um 89% und von NTGapps um 1.688%. Der Bruttogewinn stieg um 68% auf 7,2 Millionen US-Dollar, wobei die Margen von 34% auf 38% verbesserten.
Derweil
- Revenue grew 51% year-over-year to $18.9 million
- Gross profit increased 68% to $7.2 million with margins expanding to 38% from 34%
- Offshore services grew 89% while NTGapps segment grew 1,688%
- Successfully raised $8.2 million through equity financing post quarter-end
- Maintained 17 consecutive quarters of record last-twelve-month revenue growth
- Net income declined 83% to $0.4 million from $2.4 million year-over-year
- Negative $2.7 million operating cash flow due to slow collections
- $1.2 million foreign exchange headwind impacted profitability
- Adjusted EBITDA margins compressed to 15% from 23% year-over-year
- Current Adjusted EBITDA tracking below lower end of target range
Reaffirms Full Year Guidance, Despite FX Headwinds in Q2
Toronto, Ontario--(Newsfile Corp. - August 27, 2025) - NTG Clarity Networks Inc. (TSXV: NCI) (OTC Pink: NYWKF); NTG Clarity ("NTG" or the "Company") today reports its second quarter results for the quarter ended June 30, 2025 (all figures in Canadian Dollars).
Q2 2025 Highlights
All comparisons below are to the quarter ended June 30, 2024, unless otherwise noted.
- Revenue grew
51% year-over-year to$18.9 million , driven by strong growth of offshore services, which grew89% and the accelerating growth of NTGapps, which grew 1,688% . Topline revenue was impacted compared to Q1 2025 because of the weakening US dollar in Q2 2025.
- Gross Profit rose
68% year-over-year to$7.2 million , representing38% of revenue, compared to$4.3 million and34% in the prior year. Gross margin was strong in the quarter, driven by lower upfront engagement costs like travel and a higher portion of revenue coming from NTGapps.
- Net Income was
$0.4 million , or2% of revenue, compared to$2.4 million or20% in the prior year. The year-over-year decline reflects an FX headwind of$1.2 million dollars from a weakening US Dollar in the quarter and a tax provision for$0.9 million .
- Adjusted EBITDA fell
1% to$2.8 million , or15% of revenue, compared to$2.8 million or23% of revenue in the prior year. Adjusted EBITDA margins were burdened in the quarter by the hiring of new employees who are expected to be deployed on new contracts towards the end of the year.
- Operating Cash Flow used of
$2.7 million , consistent with seasonal patterns, as Q2 is typically the slowest collections quarter. The usage primarily reflects timing of accounts receivable collections, impacted by major holidays during the period and a$1.2 million foreign exchange headwind.
"We continue our strong track record of growth posting
"Subsequent to quarter-end, we successfully closed an equity financing for approximately
Financial Outlook for 2025
Our performance this quarter, even with the headwind of FX, gives us confidence to reafirm our full year guidance. We saw gross margin expansion in the quarter and expect to see Adusted EBITDA margin expansion in the back half of the year as we deploy new hires into fully billable roles.
While our current Adjusted EBITDA is tracking below the lower end of the target range, we anticipate margin improvement over the course of the year.
Revenue: Expected to be approximately
$78 million Adjusted EBITDA Margin: Forecasted in the range of
16% -20%
In 2025 our strategic priorities are:
- Expand and solidify our position as an integral part of clients' long-term digital strategy, leveraging our superior cost structure, quality offerings, and trusted relationships built over multiple years of service.
- Win new customers through the expanding network effect of recommendations from current and past clients.
- Increase adoption and traction of NTGapps, positioning them as essential tools within our clients' digital ecosystems.
Conference Call Details
On Thursday, August 28, 2025, at 9:00 AM ET, management will host a conference call webcast to discuss the Company's financial and operating results.
What: NTG Clarity Q2 2025 Earnings Call
When: Thursday, August 28, 2025, at 9:00 AM ET
Where: Live webcast can be accessed from the Events page of NTG's website: https://ntgclarity.com/events/second-quarter-2025-earnings-conference-call-ntg-clarity
Management will be hosting a Q&A at the end of the call; however, to streamline the earnings conference call, we ask any questions to be emailed along with the asker's name and company, if applicable, by the end of the day Wednesday, August 27, 2025, to:
Adam Zaghloul, Vice President, Strategy & Planning
Email: adam@ntgclarity.com
Income Statement Highlights for the Quarter Ended June 30, 2025 and 2024
| June 30, 2025 | June 30, 2024 | |||||
| REVENUE | $ | 18,876,105 | $ | 12,488,315 | ||
| COST OF SALES | 11,717,002 | 8,227,457 | ||||
| GROSS PROFIT | $ | 7,159,103 | $ | 4,260,858 | ||
| SG&A | 4,501,303 | 1,576,550 | ||||
| (Gain) loss on foreign exchange | 1,179,889 | 123,731 | ||||
| Other Expenses | 157,264 | 93,580 | ||||
| Exchange (gain) loss on translation | 61,901 | 23,623 | ||||
| Provision for income taxes | 856,166 | 0 | ||||
| Comprehensive Income | $ | 402,580 | $ | 2,443,374 | ||
| per share (basic) | $ | 0.01 | $ | 0.06 | ||
| per share (fully diluted) | $ | 0.01 | $ | 0.06 | ||
Balance Sheet Highlights
| June 30, 2025 | December 31, 2024 | |||||
| Total Assets | $ | 32,543,079 | $ | 28,292,859 | ||
| Total Liabilities | $ | 16,506,859 | $ | 15,691,675 | ||
| Shareholder's Equity | $ | 16,036,220 | $ | 12,601,184 |
Non-GAAP Financial Measures
NTG references Adjusted EBITDA, which is a non-IFRS (non-GAAP) measure and Adjusted EBITDA margin, which is a non-GAAP ratio. Adjusted EBITDA means adjusted earnings before interest, taxes, depreciation and amortization. EBITDA is equal to net income (loss) before income taxes plus finance costs plus depreciation. Adjusted EBITDA is equal to EBITDA before other discretionary expenses and expenses outside of the control of NTG. In NTG's case these are other income, share-based payments, and expenses related to foreign exchange. Adjusted EBITDA margin is Adjusted EBITDA as a percentage of total revenue.
Adjusted EBITDA and Adjusted EBITDA margin are not recognized measures under IFRS. Management believes that in addition to net income (loss), Adjusted EBITDA and Adjusted EBITDA margin are useful supplemental measures as they provide an indication of the results generated by the Company's primary business activities prior to consideration of how those activities are financed, amortized, or how the results are taxed and consolidated in various jurisdictions and currencies as well as the cash generated by the Company's primary business activities without consideration of the timing of the monetization of non-cash working capital items.
NTG also references Free Cash Flow, which is a non-IFRS (non-GAAP) measure. Free Cash Flow means cash provided by operating activities less capital expenditures. In NTG's case, Free Cash Flow is equal to net cash from operating activities as reported in the consolidated statements of cash flows, reduced by the purchase of property and equipment.
Free Cash Flow is not a recognized measure under IFRS. Management believes that in addition to net cash from operating activities, Free Cash Flow is a useful supplemental measure as it provides insight into the cash generated by the Company's primary business activities after funding required capital expenditures, and it reflects the Company's ability to pursue strategic growth, repay debt, or return capital to shareholders.
Readers should be cautioned, however, that Adjusted EBITDA and Adjusted EBITDA margin should not be construed as an alternative to net income determined in accordance with IFRS as an indicator of the Company's performance. Neither should Free Cash Flow be construed as an alternative to net cash from operating activities as determined in accordance with IFRS as an indicator of the Company's performance. The Company's method of calculating Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow may differ from other organizations and, accordingly, Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow may not be comparable to measures used by other organizations.
The non-IFRS measures referenced in this release reconcile to the IFRS measures reported in the Consolidated Financial Statements as follows, unless reconciled elsewhere:
| For the three months ended | ||||||
| Adjusted EBITDA | June 30, 2025 | June 30, 2024 | ||||
| Net Income (Margin) | $ | 402,580 ( | $ | 2,443,374 ( | ||
| Add back: | ||||||
| (Gain) loss on foreign exchange | 1,179,889 | 123,731 | ||||
| Depreciation | 195,665 | 38,733 | ||||
| Amortization | 132,183 | 132,183 | ||||
| Interest, net | 55,156 | 78,991 | ||||
| Taxes | 855,678 | 800 | ||||
| Other income | (211,025 | ) | (95,072 | ) | ||
| Share-based payment | 117,956 | 70,128 | ||||
| Loss on joint venture | 0 | 0 | ||||
| Loss on disposal of assets | 0 | 0 | ||||
| Less: | ||||||
| Exchange gain (loss) arising on translation of foreign operations | (61,901 | ) | (23,623 | ) | ||
| Adjusted EBITDA (Margin) | $ | 2,789,983 ( | $ | 2,816,491 ( | ||
| For the three months ended | ||||||
| Free Cash Flow | June 30, 2025 | June 30, 2024 | ||||
| TOTAL CASH IN-FLOW FROM OPERATING ACTIVITIES | $ | (2,689,043 | ) | $ | 225,088 | |
| Less: | ||||||
| Purchase of property, plant and equipment | 48,867 | 154,768 | ||||
| Free Cash Flow | $ | (2,737,910 | ) | $ | 70,320 | |
About NTG Clarity Networks Inc.
NTG Clarity Networks' vision is to be a global leader in digital transformation solutions. As a Canadian company established in 1992, NTG Clarity has delivered software, networking, and IT solutions to large enterprises including financial institutions and network service providers. More than 1,300 IT and network professionals provide design, engineering, implementation, software development and security expertise to the industry's leading enterprises.
For Further Information:
Adam Zaghloul, Vice President, Strategy & Planning
NTG Clarity Networks Inc.
Ph: 905-305-1325
Fax: 905-752-0469
Email: adam@ntgclarity.com
Forward-Looking Information
Certain statements in this release, other than statements of historical fact, are forward looking information that involve various risks and uncertainties. Forward looking information includes, but is not limited to, statements with respect to: 2025 financial guidance including anticipated revenue and adjusted EBITDA margin; anticipated activity levels and operating results; projections based on current backlog; corporate strategies; customer demand and competitive conditions in the markets in which the Company operates.
Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: future demand for the Company's products and services; the results of research and development activities; access to capital; intellectual property protection; general business, economic, competitive, political and social uncertainties; delays in obtaining governmental approvals; failure to obtain regulatory approvals; reliance on key personnel; stock market volatility; fluctuations in interest rates and exchange rates; and the impact of new laws and regulatory requirements. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about estimated annual revenue and adjusted EBITDA margin, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set out in the above paragraph. The actual financial results of the Company may vary from the amounts set out herein and such variation may be material. NTG and its management believe that the FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments. However, because this information is subjective and subject to numerous risks, it should not be relied on as necessarily indicative of future results. Except as required by applicable securities laws, the Company undertakes no obligation to update such FOFI. FOFI contained in this news release was made as of the date hereof and was provided for the purpose of providing further information about the Company's anticipated future business operations on an annual basis. Readers are cautioned that the FOFI contained in this news release should not be used for purposes other than for which it is disclosed herein.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/264192
FAQ
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