NTG Clarity Announces 2025 Guidance

Toronto, Ontario--(Newsfile Corp. - March 26, 2025) - NTG Clarity Networks Inc. (TSXV: NCI) (OTC Pink: NYWKF) NTG Clarity ("NTG" or the "Company") is pleased to announce its 2025 financial guidance. Building on strong performance in 2024, The Company's financial outlook is based on expected sustained momentum across its business, driven by a history of growing backlog, strong customer demand, and expansion of engagements by existing clients.

Financial Outlook for 2025

• Revenue: Expected to be approximately $75 million
• Adjusted EBITDA Margin: Forecasted in the range of 16% - 20%

"Our 2025 guidance reflects our confidence in another year of meaningful growth, profitability, and cash generation," said Adam Zaghloul, Vice President of Strategy & Planning at NTG Clarity. "Our backlog now exceeds $105 million, with approximately $80 million of the backlog secured against three-year contracts. This visibility into future revenue gives us strong conviction in our outlook. While we expect some near-term margin impact as we scale to meet increasing demand, we look forward to demonstrating the operating leverage inherent in our model as the year progresses."

Mr. Zaghloul continued, "Our growth strategy is clearly delivering results. We are gaining traction across key customer segments, benefiting from a strong network of decision-makers driving referrals and new business wins. At the same time, our existing customers continue to expand their engagements, a testament to the value our solutions provide. With rapid digital transformation and market tailwinds at our back, we believe we are well positioned to capture additional upside."

Additionally, the company announced a shift in its financial reporting metrics, moving from net income margin guidance to Adjusted EBITDA guidance.

"This change in reporting better reflects the underlying strength of our business by excluding the impact of foreign exchange fluctuations. While we are not affected by tariffs and the macro environment in North America, foreign exchange dynamics can create variability that is not representative of our core performance. As a reminder we primarily bill our customers in the Saudi Riyal which is pegged to the US Dollar, while we report in Canadian dollars with a significant amount of expenses paid in both Egyptian pounds and Canadian dollars," Mr. Zaghloul explained.

About NTG Clarity Networks Inc.

NTG Clarity Networks' vision is to be a global leader in digital transformation solutions. As a Canadian company established in 1992, NTG Clarity has delivered software, networking, and IT solutions to large enterprises including financial institutions and network service providers. More than 1000 IT and network professionals provide design, engineering, implementation, software development and security expertise to the industry's leading enterprises.

Non-GAAP Financial Measures

This press release references Adjusted EBITDA margin, which is a non-GAAP ratio. Adjusted EBITDA margin is Adjusted EBITDA as a percentage of total revenue. EBITDA is equal to net income (loss) before income taxes plus finance costs plus depreciation. Adjusted EBITDA is equal to EBITDA before other discretionary expenses and expenses outside of the control of NTG. In NTG's case these are other income, share-based payments, and expenses related to foreign exchange. Adjusted EBITDA and Adjusted EBITDA margin are not recognized measures under IFRS.

Management believes that in addition to net income (loss), Adjusted EBITDA and Adjusted EBITDA margin are useful supplemental measures as they provide an indication of the results generated by the Company's primary business activities prior to consideration of how those activities are financed, amortized, or how the results are taxed and consolidated in various jurisdictions and currencies as well as the cash generated by the Company's primary business activities without consideration of the timing of the monetization of non-cash working capital items. Readers should be cautioned, however, that Adjusted EBITDA and Adjusted EBITDA margin should not be construed as an alternative to net income determined in accordance with IFRS as an indicator of the Company's performance. The Company's method of calculating Adjusted EBITDA and Adjusted EBITDA margin may differ from other organizations and, accordingly, Adjusted EBITDA and Adjusted EBITDA margin may not be comparable to measures used by other organizations.

Forward Looking Information

Certain statements in this release, other than statements of historical fact, are forward looking information that involve various risks and uncertainties. Forward looking information includes, but is not limited to, statements with respect to: 2025 financial guidance including anticipated revenue and adjusted EBITDA margin; anticipated activity levels and operating results; projections based on current backlog; corporate strategies; customer demand and competitive conditions in the markets in which the Company operates.

Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: future demand for the Company's products and services; the results of research and development activities; access to capital; intellectual property protection; general business, economic, competitive, political and social uncertainties; delays in obtaining governmental approvals; failure to obtain regulatory approvals; reliance on key personnel; stock market volatility; fluctuations in interest rates and exchange rates; and the impact of new laws and regulatory requirements. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about estimated annual revenue and adjusted EBITDA margin, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set out in the above paragraph. The actual financial results of the Company may vary from the amounts set out herein and such variation may be material. NTG and its management believe that the FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments. However, because this information is subjective and subject to numerous risks, it should not be relied on as necessarily indicative of future results. Except as required by applicable securities laws, the Company undertakes no obligation to update such FOFI. FOFI contained in this news release was made as of the date hereof and was provided for the purpose of providing further information about the Company's anticipated future business operations on an annual basis. Readers are cautioned that the FOFI contained in this news release should not be used for purposes other than for which it is disclosed herein.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/246036