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NTG Clarity Reports 51% Year-Over-Year Revenue Growth, Driven by Growth in High-Margin Segments
Reaffirms Full Year Guidance, Despite FX Headwinds in Q2 Toronto, Ontario--(Newsfile Corp. - Aug...
About this update from Ntg Clarity Networks Inc.
[{"type":"text","content":"NTG Clarity Reports 51% Year-Over-Year Revenue Growth, Driven by Growth in High-Margin SegmentsReaffirms Full Year Guidance, Despite FX Headwinds in Q2Toronto, 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 HighlightsAll 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 grew 89% 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, representing 38% of revenue, compared to $4.3 million and 34% 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, or 2% of revenue, compared to $2.4 million or 20% 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, or 15% of revenue, compared to $2.8 million or 23% 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 51% year-over-year revenue growth, lead by our two highest margin business lines, offshore services and NTGapps,\" said Adam Zaghloul, Vice President of Strategy & Planning at NTG Clarity. \"While reported revenue and profitability this quarter reflect a U.S. dollar foreign exchange headwind, underlying performance remained robust. Importantly, we have already made the strategic investments and are carrying the re...