TeraGo Reports Mixed Q2 2026 Results Amid Regulatory Tailwinds
Event summary
- TeraGo's Q2 2026 revenue declined by 2.1% YoY to $6.2M due to lower bookings in 2025 and installation delays.
- Adjusted EBITDA increased by 16.8% YoY to $1.055M, driven by lower operating expenses.
- ARPA grew by 4.2% YoY to $1,279, reflecting focus on mid-market and large-scale customers.
- Backlog MRR decreased by 15% YoY to $78,788 but showed sequential improvement from Q1 2026.
- ISED's May 2026 decision provides regulatory clarity for mmWave spectrum licensing and a 2027 auction.
The big picture
TeraGo's Q2 2026 results highlight the tension between revenue challenges and strategic positioning. The company's focus on high-value customers is driving ARPA growth, while regulatory clarity from ISED enhances the value of its mmWave spectrum portfolio. As Canada's largest holder of this spectrum, TeraGo is well-positioned to capitalize on emerging opportunities in advanced fixed wireless, private 5G networks, and enterprise connectivity.
What we're watching
- Regulatory Tailwinds
- How ISED's flexible-use licensing framework will enhance TeraGo's spectrum monetization potential.
- Customer Acquisition
- Whether TeraGo can sustain ARPA growth by attracting more mid-market and large-scale customers.
- Operational Execution
- The pace at which TeraGo can improve backlog MRR and reduce churn rates.
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