NTG Clarity Reports Q1 2026 Revenue of $21.3 Million, Up 8.1% Year-Over-Year

About this update from Ntg Clarity Networks Inc.

[{"type":"text","content":"Toronto, Ontario--(Newsfile Corp. - May 27, 2026) - NTG Clarity Networks Inc. (TSXV: NCI) (OTC Pink: NYWKF); NTG Clarity ("NTG" or the "Company") today reported its results for the first quarter ended March 31, 2026 (all figures in Canadian Dollars).","length":270,"tagName":"p"},{"type":"text","content":"Q1 2026 HighlightsAll comparisons below are to the quarter ended March 31, 2025, unless otherwise noted","length":104,"tagName":"p"},{"type":"list","items":[{"val":[{"type":"text","content":"Revenue grew 8.1% year over year to $21.3 million, reflecting continued growth across the existing client base. Ramadan and Eid al-Fitr fell entirely within Q1 2026, reducing billable hours and deferring project activity during the final five weeks of the quarter.","length":264,"tagName":"p","attribs":{}}]},{"val":[{"type":"text","content":"Gross Profit rose 4.4% year-over-year to $7.0 million, representing 33.0% of revenue, compared to $6.7 million and 34.2% in the prior year. The margin compression reflects reduced staff utilization during Ramadan, consistent with the Company's historical pattern in Ramadan-affected quarters.","length":296,"tagName":"p","attribs":{}}]},{"val":[{"type":"text","content":"Net Income was $1.0 million, or 4.6% of revenue, compared to $2.1 million or 10.6% in the prior year. The prior year included a $595,000 foreign exchange gain. The current quarter includes a $668,000 non-recurring deferred tax recovery related to the conversion of the Company's Saudi branch to an LLC structure. Excluding these items in both periods, the year-over-year comparison is more closely aligned with the movement in operating results.","length":449,"tagName":"p","attribs":{}}]},{"val":[{"type":"text","content":"Adjusted EBITDA was $0.8 million, or 3.6% of revenue, compared to $2.9 million, or 14.6%, in the prior year. Through 2025 the Company built a delivery and support base sized for materially higher revenue. In the first quarter that base operated at low utilization through the seasonally softest period of the year, which compressed margin. The cost base is largely fixed and already in place, and combined cost of sales, general and administrative and sales and marketing expenses were approximately flat sequentially. As revenue normalizes against that base through the balance of the year, the Company exp...

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