NTG Clarity Networks Inc
XTSX:NCI
NTG Clarity Networks Inc
NTG Clarity Networks, Inc. engages in the provision of telecommunications engineering, information technology, networking, and software solutions. The company is headquartered in Markham, Ontario. The company went IPO on 2000-10-11. The firm is engaged in providing telecommunications engineering, networking and related software solutions and has developed niche software products directed at the telecom service providers. The company offers professional telecom and IT services in the North American and Middle Eastern markets. The company operates through two segments: Canadian segment and Egypt segment. Canadian segment is made up of activities in Canada and its offices in Saudi Arabia, Oman. Egypt segment is its software development group and also provides professional services and network services/hardware to customers in Egypt. The firm provides various services, including solution development, system integration, testing as a service, outsourcing, consulting, training, small cities/building, data transformation and data migration.
NTG Clarity Networks, Inc. engages in the provision of telecommunications engineering, information technology, networking, and software solutions. The company is headquartered in Markham, Ontario. The company went IPO on 2000-10-11. The firm is engaged in providing telecommunications engineering, networking and related software solutions and has developed niche software products directed at the telecom service providers. The company offers professional telecom and IT services in the North American and Middle Eastern markets. The company operates through two segments: Canadian segment and Egypt segment. Canadian segment is made up of activities in Canada and its offices in Saudi Arabia, Oman. Egypt segment is its software development group and also provides professional services and network services/hardware to customers in Egypt. The firm provides various services, including solution development, system integration, testing as a service, outsourcing, consulting, training, small cities/building, data transformation and data migration.
Revenue Growth: NTG reported Q3 revenue of $20.9 million, up 42% year-over-year and setting another all-time revenue record for the company.
Guidance Reaffirmed: Management reaffirmed full-year 2025 revenue guidance of $78 million, representing about 40% year-over-year growth.
NTGapps Surge: NTGapps software line revenue rose over 650% year-over-year in Q3 and is now 13% of year-to-date revenue, up from 3% last year.
Margin Pressure: Gross margin was about 35% (low end of historical range) and adjusted EBITDA margin year-to-date was 14%, below the previous 16%-20% target. Adjusted EBITDA margin guidance for 2025 was lowered to 12%-16%.
Operating Expenses: Operating expenses rose to 24% of revenue, mainly due to higher G&A costs from strategic hiring and geographic expansion.
Cash Flow: Operating cash flow was negative, driven by an increase in contract assets and accounts receivable; cash position at quarter-end was $6.6 million.
Backlog Update: Backlog stood at $88 million, down sequentially due to delayed contract signings, which management views as a timing issue.
Market Opportunity: NTG sees significant runway in the Saudi and Gulf digital transformation market and is expanding regionally, including new offices in Iraq and the UAE.
