Burnaby, B.C. – March 18, 2026 –– Tantalus Systems (TSX: GRID, OTCQX: TGMPF) (“Tantalus” or the “Company”), a technology company dedicated to helping utilities modernize their distribution grids by harnessing the power of data, is pleased to announce its financial and operating results for the three-month period and year ended December 31, 2025.
All amounts are presented in this news release are in United States dollars (“U.S. dollars”), unless otherwise indicated.Q4 2025 FINANCIAL HIGHLIGHTS
- Revenue increased by approximately 19% year-over-year to $14.9 million, reflecting a new corporate milestone for revenue generated in a quarter. Revenue from Connected Devices and Infrastructure (“Connected Devices”) increased by $1.6 million or 21% and Utility Software Applications and Services (“Software and Services”) revenue increased by $0.7 million or approximately 15%. The increases in revenue were a result of adding new customers and continuing to expand deployments with existing accounts. Recurring Revenue[1] increased by 38% to $4.1 million and represented 28% of total revenue in the quarter.
- Gross Profit[1] improved by 27% to $8.3 million from the prior year with contributions from both operating segments. Overall Gross Profit Margin1, on a consolidated basis, increased by 350 basis points to 56% primarily due to the mix of products shipped within the Connected Devices segment and strong contributions from the Software and Services segment.
- Income for the period was $179,000 compared to income of $289,000 last year.
- The Company delivered positive Adjusted EBITDA[1] of approximately $1.3 million, which was effectively in-line with the prior year (December 31, 2024: $1.4 million) as the Company increased headcount and incurred higher operating expenses.
- The Company generated positive Cash Flow from Operating Activities of $3.3 million.
- At December 31, 2025, Tantalus had available liquidity of $21.1 million compared to $18.0 million as at December 31, 2024. The available liquidity was comprised of a cash balance of $12.6 million and borrowing availability of $8.5 million under its revolving line of credit.
2025 FINANCIAL HIGHLIGHTS
- The Company delivered record revenue of $54.1 million, representing 22% growth year-over-year. Revenue from Connected Devices increased by 28% to $35.3 million as a result of higher sales volumes and Software and Services revenue increased by 13% to $18.8 million as a result of higher annual maintenance billings. Recurring Revenue[1] increased by 20% to $13.9 million, representing 26% of total revenue for the year.
- Annual Recurring Revenue (“ARR”)[1] grew by approximately 14% year-over-year to $14.5 million as of December 31, 2025 (December 31, 2024: $12.7 million).
- Gross Profit[1] increased by 23% to $29.6 million while Gross Profit Margin[1], on a consolidated basis, remained stable at approximately 55%.
- Loss for the year was $992,000, compared to a loss of $2.6 million last year with the improvement arising from revenue and margin growth.
- Diluted Loss per Share was $0.02 compared to $0.05 in the prior year period.
- The Company delivered record Adjusted EBITDA[1] of $3.4 million, representing approximately 156% growth year-over-year (December 31, 2024: $1.3 million). The growth in Adjusted EBITDA reflects operating leverage in the business model as the Company scales revenue.
- The Company generated positive Cash Flow from Operating Activities of $4.7 million compared to $2.6 million in the prior year.
“Tantalus is grateful to our team, customers and partners who helped the Company deliver another year of commercial and financial milestones, including record results in revenue, adjusted EBITDA and sales orders,” said Peter Londa, President & CEO of Tantalus. “We continue to invest in innovative solutions that deliver cost-effective and low-risk paths to improve our customers’ systems and operations. Our vision for data-centric distribution grid modernization and Unified Intelligence is resonating with an expanding number of utilities and positions us to maintain our growth trajectory heading into 2026.”
OTHER KEY DEVELOPMENTS
- Sales Order Conversion: During Q4 2025, the Company converted $11.0 million in orders from its sales pipeline bringing the total amount in 2025 to a record level of $64.9 million. The results represented approximately 27% growth year-over-year and a book-to-bill ratio of 1.2x.
- Growth of User Community: The Company added 5 new utilities in Q4 2025 and 17 for the full year, demonstrating a continued ability to convert new accounts from its sales pipeline.
- TRUSense Gateway™ Progress: As of the date of this news release, 66 utilities submitted orders to trial, pilot and/or deploy the TRUSense Gateway. The adoption of the TRUSense Gateway is being driven by a combination of existing customers seeking to enhance deployments of Tantalus’ broader offerings and utilities that are ordering from the Company for the first time to accelerate their grid modernization journeys.
SUBSEQUENT EVENTS
- Appointment of New Board Member: On January 26, 2026, the Company announced the appointment of Susanna Zagar to its Board of Directors. Ms. Zagar most recently served as the CEO of the Ontario Energy Board and brings broad industry and governance expertise to the Company.
- Completion of CAD$23.0 Million Bought Deal Financing: On February 9, 2026, the Company completed a bought deal offering of 4,299,575 shares at a price of CAD$5.35 per share for total gross proceeds of approximately CAD$23.0 million. The Company intends to use the net proceeds of the offering for sales and marketing, strategic growth initiatives, partial repayment of the Company’s Term Loan, capital expenditures, research and development, and working capital and general corporate expenses.
- Changes in Import Tariffs: On February 20, 2026, the US Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs. As a result, on the same day two executive orders were issued, one prospectively suspending the original IEEPA tariffs, and another establishing the continuing suspension of duty-free de minimis treatment for certain imports to the US and the mechanisms for continuing to collect duties on such shipments and the rates of such duties. To the balance sheet date, $2.1 million has been paid in tariffs. There remains uncertainty as to any right of refund of the tariffs and the process required to collect eligible refunds (if any), as well as any contractual obligations to return amounts previously collected from customers.
The Company will hold a conference call and webcast to discuss the financial results on Thursday, March 19, 2026, at 11:00 am Eastern Time.
CONFERENCE CALL
Participant Dial In (Toll Free): 1-844-854-4410
Participant International Dial In: 1-412-317-5791
Participants, please ask to be joined to the Tantalus Systems call.
Webcast URL: https://event.choruscall.com/mediaframe/webcast.html?webcastid=upG0Skf1
REPLAY INFORMATION
A conference call and webcast replay will be available until March 26, 2026. To access the conference call replay, please see details below:
U.S./Canada Toll Free: 1-855-669-9658
International Toll: 1-412-317-0088
Replay Access Code: 1746245
FINANCIAL STATEMENTS AND MANAGEMENT DISCUSSION & ANALYSIS
Information included in this press release is a summary of results and financial statement excerpts and should be read in conjunction with the Company’s consolidated financial statements (“Annual Financial Statements”) and related Management’s Discussion & Analysis (“MD&A”) for the three-month period and year ended December 31, 2025 which can be found on SEDAR+ at www.sedarplus.ca and is also available on the Company’s website at https://tantalus.com.
All comparisons presented in this press release are between the three-month and twelve-month periods ended December 31, 2025 and the three-month and twelve-month periods ended December 31, 2024, unless otherwise indicated. In addition, all results are reported in U.S. dollars, unless otherwise noted.
The accompanying notes are an integral part of these following consolidated financial statements and can be found on the Company’s website at https://tantalus.com or on www.sedarplus.ca.
TANTALUS SYSTEMS HOLDING INC.
Consolidate Statements of Profit or Loss and Other Comprehensive Loss
(Expressed in thousands of U.S. dollars except for shares and per share amounts)
TANTALUS SYSTEMS HOLDING INC.
Consolidated Statements of Financial Position
(Expressed in thousands of U.S. dollars)
TANTALUS SYSTEMS HOLDING INC.
Consolidate Statements of Cash Flows
(Expressed in thousands of U.S. dollars)
NON-IFRS AND OTHER FINANCIAL MEASURES
This press release contains certain financial measures that do not have any standardized meaning prescribed by IFRS. Therefore, these financial measures may not be comparable to similar measures presented by other issuers. Investors are cautioned these measures should not be construed as an alternative to income (loss) or to cash provided by (used in) operating, investing, financing activities, determined in accordance with IFRS, as indicators of our performance.
We provide these additional non-IFRS measures, non-IFRS ratios and supplementary financial measures to assist investors in determining the Company’s ability to generate earnings and cash provided by (used in) operating activities.
- “EBITDA” is comprised of income (loss) adjusted for interest, income tax and depreciation and amortization. Management believes that EBITDA is a useful indicator for investors, and is used by management, in evaluating the operating performance of the Company.
- “Adjusted EBITDA” is comprised of income (loss) adjusted for interest, income tax, depreciation, amortization, share-based compensation, foreign exchange gain (loss) and other income / expenses not attributable to the operations of the Company. Management believes that Adjusted EBITDA is a useful indicator for investors, and is used by management, in evaluating the operating performance of the Company. Beginning in the fourth quarter of 2024, the Company excluded non-recurring items including restructuring expenses in our presentation of Adjusted EBITDA as these expenses are not representative of ongoing operating performance.
This press release also refers to the following non-IFRS ratios:
- “Gross Profit” is comprised of revenues less cost of sales. Management believes that Gross Profit is a useful indicator for investors, and is used by management, in evaluating the operating performance of the Company.
- “Gross Profit Margin” is comprised of Gross Profit expressed as a percentage of the Company’s revenues. Management believes that Gross Profit Margin is a useful indicator for investors, and is used by management, in evaluating the operating performance of the Company.
- “Adjusted EBITDA Margin” is comprised of Adjusted EBITDA expressed as a percentage of the Company’s revenues. Management believes that Adjusted EBITDA Margin is a useful indicator for investors, and is used by management, in evaluating the operating performance of the Company.
This press release also refers to the following supplementary financial measures:
- “Recurring Revenue” is comprised of the Company’s revenues recognized in a period that are recurring in nature and attributable to its analytics, subscriptions and software as a service (“SaaS”) offerings, hosting services, software maintenance and technical support agreement services.
- “Annual Recurring Revenue” or “ARR” is comprised of the Company’s Recurring Revenue as expressed on a forward-looking annualized revenue attributable to its analytics, subscriptions and SaaS offerings, hosting services, software maintenance and technical support services agreements at a point in time.
SELECTED FINANCIAL INFORMATION
GROSS PROFIT[1] AND GROSS PROFIT MARGIN[1] CALCULATIONS
RECONCILIATION OF INCOME (LOSS) TO ADJUSTED EBITDA[1]
ABOUT TANTALUS SYSTEMS HOLDING INC. (TSX: GRID, OTCQX: TGMP)
Tantalus is a technology company dedicated to helping utilities modernize their distribution grids by harnessing the power of data across all their devices and systems deployed throughout the entire distribution grid. We offer a grid modernization platform across multiple levels: intelligent connected devices, communications networks, data management, enterprise applications and analytics. Our solutions provide utilities with the flexibility they need to get the most value from existing infrastructure investments while leveraging advanced capabilities to plan for future requirements. All our technology is grounded in a data-centric approach that is designed to help utilities find the most cost-effective path to grid modernization with the least risk. Ultimately, we deliver Unified Intelligence to utilities of all kinds, so they can leverage data and insights across their entire grid, no matter what devices, systems or vendors they choose to work with. Learn more at https://tantalus.com.
FORWARD-LOOKING STATEMENTS
This news release contains “forward-looking information” within the meaning of applicable securities laws. Forward-looking information is generally identifiable by use of the words “believes”, “may”, “plans”, “will”, “anticipates”, “intends”, “could”, “estimates”, “expects”, “forecasts”, “projects” and similar expressions, and the negative of such expressions. Forward-looking information in this news release includes statements such as those relating to the ability of Tantalus’ solutions, including the TRUSense Gateway, the Company’s growth trajectory, use of proceeds, the Company’s plans, objectives, strategy and expectations for its business, results of operations and financial condition, the adoption of the Company’s solutions by customers in accordance with the Company’s ordinary business practices and terms and the anticipated risks to the business operations of the Company and its customers.
To the extent any forward-looking information in this news release constitutes a “financial outlook” within the meaning of securities laws, such information is being provided because management’s estimate of the future financial performance of Tantalus is useful to investors, and readers are cautioned that this information may not be appropriate for any other purpose and that they should not place undue reliance on such information.
In connection with the forward-looking information contained in this news release, Tantalus has made numerous assumptions, regarding, among other things: increasing demand for the Company’s solutions in support of utilities’ grid modernization efforts, the commercialization and adoption of the TRUSense Gateway, its ability to capitalize on growth opportunities and implement its growth strategy, its ability to retain key personnel, its ability to maintain existing customer relationships and to continue to expand its customers’ use of the Company’s products and solutions, its ability to acquire new customers, its ability to enhance the Company’s offerings to remain at the forefront of its industry, the impact of competition, the successful integration of future acquisitions, the impact of tariffs and any changes to tariffs on the Company’s business and financial condition, the ability of the Company to execute on its plans, the absence of material adverse changes in the Company’s business, its industry or the global economy and that the risks and uncertainties described under the “Risk Factors” section of the Company’s Annual Information Form dated on or about March 18, 2026 will not materialize. While Tantalus considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies. Additionally, there are known and unknown risk factors which could cause Tantalus’ actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. A complete discussion of the risks and uncertainties facing Tantalus is disclosed under the heading “Risk Factors” in the Company’s Annual Information Form dated on or about March 18, 2026, as well as those risk factors included with Tantalus’ continuous disclosure filings with Canadian securities regulatory authorities available at www.sedarplus.ca. If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information. The opinions, estimates or assumptions referred to above should be considered carefully by prospective investors.
All forward-looking information herein is qualified in its entirety by this cautionary statement, and Tantalus disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.
CONTACT TANTALUS
Deborah Honig
Investor Relations
647-203-8793 | deborah@adcap.ca
[1] See definitions for Non-IFRS and Other Financial Measures above.
