NTG Clarity Reports 42% Year-Over-Year Revenue Growth in Q3 2025, Continues Investment in Future Growth

Core Insights - NTG Clarity Networks Inc. reported a 42% year-over-year revenue growth in Q3 2025, reaching approximately $20.9 million, driven by strong client demand and operational execution in Saudi Arabia [3][6] - The company reaffirmed its full-year revenue guidance of approximately $78 million for 2025, despite a revision in its Adjusted EBITDA margin forecast to a range of 12% - 16% from the previous 16% - 20% [7][8] Financial Performance - Revenue increased to $20.9 million, a 42% rise compared to $14.7 million in Q3 2024, with a 10% increase in accounts and 63% of customers raising service levels [6][10] - Gross profit rose by 32% year-over-year to $7.3 million, representing 35% of revenue, down from 37% in the prior year due to fluctuations in revenue mix and pricing incentives [6][10] - Net income was reported at $1.9 million, or 9% of revenue, a decrease from $2.1 million or 14% in the previous year, attributed to the commencement of tax payments and a tax accrual of $595 thousand in Q3 2025 [6][10] - Adjusted EBITDA was $2.5 million, or 12% of revenue, down from $3.2 million or 22% in the prior year, impacted by new employee hiring costs [6][10] Strategic Investments - The company has made significant investments in specialized talent and delivery capacity to support upcoming contracts, which have taken longer to finalize, leading to increased SG&A expenses [4][6] - NTG Clarity is expanding its geographic presence, including establishing a branch in Baghdad, Iraq, and a corporate entity in Dubai, UAE, to enhance business development efforts [9][8] Operational Outlook - The company anticipates improved cash flow in Q4 2025 as collections accelerate and new projects begin to contribute to revenue [4][6] - NTG Clarity is focused on operational discipline and cash conversion, with expectations of meaningful improvements in financial performance as new contracts mobilize [4][6]