Tantalus Systems Holding Inc (TSX:GRID)

Q2 2026 Tantalus Systems Holding Inc Earnings Call Transcript

Aug 6, 2026 / 02:00 PM GMT

Release Date Price: C$4.25 (-13.27%)

Transcript

Key Points

Positve

Record Q2 revenue of $15.4 million, up 18% year-over-year, with both segments growing at the same rate.
Gross profit margin reached approximately 55%, well above the long-term target of 50%, driven by strong software and services margins of 78%.
Adjusted EBITDA grew 35% year-over-year to $690,000, demonstrating operating leverage.
Annual recurring revenue (ARR) hit a new milestone of $15 million, with a 19% CAGR since 2016.
Strong balance sheet with $41.3 million in liquidity, and debt restructuring lowered interest costs and extended maturities.
TrueSense Gateway adoption is scaling: 77 utilities have ordered, with 37 moving to deployments (up from 28 in Q1).
New software offerings (TrueGrid Verify and TrueGrid Advantage) expand recurring revenue opportunities.
Record qualified order pipeline and 8 utilities in active contracting, expected to convert by year-end.
Revenue diversification is strong, with no single customer over 5% of first-half revenue.
Trailing 12-month revenue reached approximately $60 million, an all-time high, with 21% growth.

Negative

Book-to-bill ratio for the first half was 0.97x, below 1.0, reflecting order timing volatility.
Net loss widened to $1.0 million from $903,000 in the prior year, due to increased R&D and sales investments.
Cash used in operating activities was $5.7 million in Q2, driven by working capital timing and inventory buildup.
Inventory investment consumed $2 million in cash, partly due to memory component cost pressures.
Tariffs of 12.5% are being incurred, with a more pronounced year-over-year impact in the first half.
Utilities are being more deliberate in contracting due to macroeconomic uncertainty and inflationary pressures.
TrueSense Gateway initial deliveries had a gross margin headwind, though nearing inflection point.
SD card supply market is tight, posing a potential margin risk.
Deferred revenue seasonality contributed $2.6 million to cash use in Q2.
Headcount additions and restructuring charges in Q2 are expected to normalize, but OpEx run rate is higher.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

GRID.TO - Tantalus Systems Holding Inc
Q2 2026 Tantalus Systems Holding Inc Earnings Call
Aug 06, 2026 / 02:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good day and welcome to the Tantalus Systems second quarter 2026 financial results conference call.

All participants will be in a listen-only mode should you need assistance, please signal a conference specialist by pressing the key, followed by 0.

To today's presentation, there will be an opportunity to ask questions.

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Please note this event is being recorded.

I would now like to turn the over to Mrs.

Deborah Honig.

Hidden Investor relations, please go ahead, ma'am.

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