Earnings release
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1 Tantalus Systems Holding Inc. Reports Third Quarter 2025 Financial Results Burnaby, B.C. – November 12, 2025 –– 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 ended September 30, 2025. All amounts presented in this news release are in United States dollars (“U.S. dollars ”) and all amounts presented in the attached financial tables are in thousands of U.S. dollars, unless otherwise noted. Q3 2025 FINANCIAL HIGHLIGHTS • Revenue: The Company delivered revenue of $14.2 million, reflecting 2 2.5% year -over-year growth and setting a new high-water mark for revenue generated during the third quarter of a fiscal year. Revenue from Connected Devices and Infrastructure (“Connected Devices”) increased by $2.2 million or 30% and Utility Software Applications & Services (“Software and Services”) revenue increased by $0. 5 million or 10% . The increases in revenue are a result of higher sales volumes to new and existing utility customers . Recurring R evenue 1 was $3.4 million and represented 24% of total revenue in the quarter. • Annual Recurring Revenue (“ARR”)1 Growth: ARR1 grew by 11% year over year to $13.5 million as of September 30, 2025 (September 30, 2024: $12.2 million). • Gross Profit Margin1: The Company continued to deliver strong Gross Profit Margin1 at 55% which includes the impact of tariffs on Connected Devices. • Net Income: The Company generated net income for the period of $384,000 reflecting an improvement on a comparative basis from the prior year period loss of $361,000. • Diluted Income per Share: Diluted income per share was $0.01, compared to the diluted loss per share of $0.01 generated in the prior year period. • Adjusted EBITDA1: The Company delivered positive Adjusted EBITDA 1 of approximately $1.2 million, reflecting an improvement compared to $585,000 in the prior year period. • Cash Flow from Operating Activities : Cash Flow from Operating Activities was negative $ 1.3 million compared to negative $0.9 million in the prior year. Cash Flow from Operating Activities typically declines during the third quarter due to lower deferred revenues. In addition, investments 1 See definitions for Non-IFRS and Other Financial Measures above.
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2 Non-IFRS and Other Finance Measures. were also made in sales and marketing as well as ramping up production for the TRUSense Gateway™. • Liquidity: At September 30, 2025, Tantalus maintained sufficient liquidity of approximately $18.3 million to support its growth trajectory consisting of a cash balance of $9.8 million and full borrowing availability of $8.5 million under its revolving line of credit facility. “We remain on track to deliver record performance in 2025 thanks to the continued hard work and dedication of our team,” said Peter Londa, President & CEO of Tantalus. “We are witnessing an increasing level of interest in the TRUSense Gateway, particularly when combined with our TRUGrid™ a nalytics offering focused on transformer monitoring and grid reliability. Our data -centric approach to grid modernization is helping utilities pinpoint vulnerabilities and prioritize their investments to improve the efficiency, reliability and resiliency of distribution grids. Our approach continues to build momentum as utilities seek to extend the life of existing assets.” OTHER KEY DEVELOPMENTS • Sales Order Conversion: During Q3 2025, the Company converted $9.7 million in orders which was 33% higher than for the same quarter last year (2024: $7.3 million) . The book- to-bill ratio through the end of Q3 2025 was 1.37x. At $53.8 million of orders converted through the first nine months of 2025, the Company has already set a new all-time milestone for orders converted in an entire calendar year. • Growth of User Community : The Company added 4 new utilities in Q3 2025, demonstrating a continued ability to convert new accounts from its sales pipeline. • TRUSense Gateway Progress: As of the date of this news release, the Company has secured initial orders from 52 utilities to trial, pilot and 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 in order to leverage the capabilities of these devices and other Tantalus solutions. • First Significant TRUSense Gateway Agreement: On July 7, 2025 , the Company announced that EPB in Chattanooga, Tennessee, a recognized leader in the utility industry, expanded its partnership with the Company to deploy TRUSense Ethernet Gateways (“TEGs”) across its service territory. Commencing this year, EPB is planning to deploy an initial 20,000 TEGs over the next five years, with the option to purchase additional TEGs during the term of the contract and will also be updating a portion of its existing metering infrastructure to the latest generation of Tantalus technology. • Modification of Tariff Rate: On July 22, 2025, the U.S. Government announced an agreement with the Government of the Philippines to modify the tariff rate to 19% on products imported from the Philippines into the U.S. Such tariffs only apply to the Connected Devices segment and are not applicable to the Software and Services segment. The Company has offered to incur 5% of the tariff cost while passing on the remaining 14% to its utility customers.
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3 Non-IFRS and Other Finance Measures. Q3 2025 CONFERENCE CALL Management will hold a conference call and webcast to discuss the financial results on Thursday , November 13, 2025 at 10:00 am Eastern Time. 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 Webcast URL: https://event.choruscall.com/mediaframe/webcast.html?webcastid=KNFoDLef REPLAY INFORMATION A conference call and webcast replay will be available until November 20, 2025. To access the conference call replay, please see details below: US Toll Free: 1-877-344-7529 International Toll: 1-412-317-0088 Canada Toll Free: 1-855-669-9658 Replay Access Code: 5640354 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 condensed consolidated financial statements for the three-month and nine-month periods ended September 30, 2025, audited financial statements for the year ended December 31, 2024 and related Management's Discussion & Analysis (“MD&A”) for the three and nine-month periods ended September 30, 2025 and the year ended December 31, 2024 which can be found on SEDAR+ at www.sedarplus.ca and is also available on the Company’s website at www.tantalus.com. All results are reported in U.S. dollars and all amounts included in the tables attached to this press release are reported in thousands of U.S. dollars except for shares and per share amounts and unless otherwise noted. All comparisons presented in this press release are between the three-month and nine -month periods ended September 30, 2025 and September 30, 2024, unless otherwise indicated. The accompanying notes to the financial statements are an integral part of the following consolidated financial statements and can be found on the Company's website at www.tantalus.com or at www.sedarplus.ca.
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4 Non-IFRS and Other Finance Measures. TANTALUS SYSTEMS HOLDING INC. Consolidated Statements of Financial Position (Unaudited) (Expressed in thousands of U.S. dollars) September 30, December 31, Note 2025 2024 Assets 6 Current assets Cash $ 9,817 $ 13,219 Accounts receivable 3 7,567 10,011 Inventory 4 6,173 4,832 Prepaid expenses and other assets 1,443 1,829 Total current assets 25,000 29,891 Property and equipment 1,131 731 Right of Use assets 1,602 2,038 Intangible assets 4,866 5,443 Goodwill 3,445 3,445 Total assets $ 36,044 $ 41,548 Liabilities and Shareholders’ Equity Current liabilities Accounts payable and accrued liabilities 5 $ 15,348 $ 15,629 Deferred revenue and deposits 5,014 6,055 Lease liabilities 769 843 Line of credit 6 - 3,679 Term loan - current portion 6 1,402 1,535 Total current liabilities 22,533 27,740 Deferred revenue and deposits 37 103 Lease liabilities 1,093 1,392 Term loan 6 5,581 5,372 Total liabilities 29,244 34,607 Total shareholders’ equity 6,800 6,941 Total liabilities and shareholders’ equity $ 36,044 $ 41,548 See accompanying notes to consolidated financial statements.
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5 TANTALUS SYSTEMS HOLDING INC. Consolidated Statements of Operations and Comprehensive Earnings (Loss) (Unaudited) (Expressed in thousands of U.S. dollars except for shares and per share amounts) Note Three months ended September 30, 2025 Three months ended September 30, 2024 Nine months ended September 30, 2025 Nine months ended September 30, 2024 Revenues 10 $ 14,197 $ 11,589 $ 39,188 $ 31,722 Cost of sales 4, 10 6,397 5,044 17,941 14,294 7,800 6,545 21,247 17,428 Expenses Sales and marketing 7(e) 2,584 2,387 8,146 6,775 Research and development 7(e) 1,729 1,668 4,966 5,627 General and administrative 7(e) 2,543 1,979 6,911 5,535 Depreciation and amortization 421 438 1,247 1,323 7,276 6,472 21,270 19,260 Operating income (loss) 524 73 (23) (1,832) Other (expenses) earnings Foreign exchange gain (loss) 18 (33) (252) 171 Interest income 33 - 33 - Finance expenses (199) (401) (921) (1,235) Unrealized gain on loan modification 6 - - 16 - (147) (434) (1,123) (1,064) Income (loss) before income taxes 376 (361) (1,146) (2,896) Income tax (recovery) expense (8) - 25 22 Income (loss) for the period 384 (361) (1,170) (2,917) Foreign currency translation adjustment - - 2 (9) Total comprehensive income (loss) for the period $ 384 $ (361) $ (1,168) $ (2,926) Income (loss) per share (basic and diluted) $ 0.01 $ (0.01) $ (0.02) $ (0.06) Weighted average number of shares outstanding (basic and diluted) 8 51,335,322 50,845,942 51,088,896 47,561,270 See accompanying notes to consolidated financial statements.
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6 Non-IFRS and Other Finance Measures. TANTALUS SYSTEMS HOLDING INC. Consolidated Statements of Cash Flows (Unaudited) (Expressed in thousands of U.S. dollars) See accompanying notes to consolidated financial statements. Note Three months ended S eptember 30, 2025 Three months ended S eptember 30, 2024 Nine months ended S eptember 30, 2025 Nine months ended S eptember 30, 2024 Cash (used in) provided by Operating Activities In come (loss) for the period $ 384 $ (361) $ (1,170) $ (2,917) Adjustments to reconcile loss for the period to net cash flows: Unrealized foreign exchange gain (loss) 12 (20) 122 30 Depreciation of equipment 88 85 234 264 Amortization of intangible assets 192 192 577 577 Amortization of right-of-use asset 141 160 436 481 Share-based compensation 7 (e) 252 74 800 383 Finance expenses 199 401 921 1,235 Amortization of deferred financing cost 1 5 22 16 Unrealized gain on loan modification - - (16) - Changes in Non-Cash Operating Working Capital Accounts receivable 3 2,377 838 2,444 (238) Inventory 4 (893) (119) (1,341) 1,293 Prepaid expenses and other assets 164 (7) 386 (133) Accounts payable and accrued liabilities 5 (1,074) 1,487 (382) (338) Deferred revenue and deposits (2,966) (3,271) (1,108) (114) Lease payments for interest (37) (49) (121) (156) Interest paid on loans 6 (162) (352) (800) (1,080) Net Cash (used in) provided by Operating Activities (1,322) (936) 1,004 (695) Investing Activities Purchase of equipment (242) (56) (634) (161) Net Cash used in Investing Activities (242) (56) (634) (161) Financing Activities Repayment of indebtedness 6 - - (3,986) (821) Change in restricted cash - - - 673 Accrued interest on term loan 211 - 372 - Repayment of lease liabilities (186) (179) (500) (476) Issuance of common shares from financing - - - 7,296 Issuance of common shares - other 7 (b) 198 - 335 - Share issuance costs - - - (632) Net Cash provided by (used in) Financing Activities 223 (179) (3,779) 6,040 Effect of foreign exchange on cash (17) 69 7 (32) (Decrease) Increase in cash (1,359) (1,103) (3,403) 5,151 Cash, beginning of period 11,175 11,408 13, 219 5,154 Cash, end of period $ 9,817 $ 10,305 $ 9,817 $ 10,305
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7 Non-IFRS and Other Finance Measures. NON-IFRS AND OTHER FINANCIAL MEASURES This press release contains certain financial measures that do not have any standardized meaning prescribed by International Financial Reporting Standards (“IFRS”). Therefore, these financial measures may not be comparable to similar measures presented by other issuers. Investors are cautioned that these measures should not be construed as an alternative to net income (loss) or to cash provided by (used in) operating, investing, financing activities, and cash determined in accordance with IFRS, as indicators of the Company’s 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. a) “EBITDA” is calculated as 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. b) “Adjusted EBITDA” is calculated as income (loss) adjusted for interest, income tax, depreciation, amortization, stock-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 inves tors, and is used by management , in evaluating the operating performance of the Company. Beginning in the fourth quarter of 2024, the Company excludes non-recurring items such as restructuring expenses, financing costs, government subsidies and recovery of contingent liability in the Company’s presentation of Adjusted EBITDA as these expenses are not representative of ongoing operating performance. This news release also refers to the following non-IFRS ratios: c) “Gross Profit” is calculated as 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. d) “Gross Profit Margin” is calculated as 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. e) “Adjusted EBITDA Margin” is calculated as 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 news release also refers to the following supplementary financial measures: f) "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.
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8 Non-IFRS and Other Finance Measures. g) “Annual Recurring Revenue” or “ARR” is comprised of the Company’s Recurring Revenue as expressed on a forward looking annualized revenue basis 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 PROFIT1 AND GROSS PROFIT MARGIN1 CALCULATIONS 1 See definitions for Non-IFRS and Other Financial Measures above. Three months ended S eptember 30, 2025 Three months ended S eptember 30, 2024 Nine months ended S eptember 30, 2025 Nine months ended S eptember 30, 2024 Revenue $ 14, 197 $ 11,589 $ 39,188 $ 31,722 Gross Profit 7,800 6,545 21,247 17,428 Gross Profit Margin % 1 55% 56% 54% 55% Adjusted EBITDA 1 $ 1,197 $ 585 $ 2,024 $ (125) Adjusted EBITDA Margin 1 8% 5% 5% 0% Income (loss) for the period $ 384 $ (361) $ (1,170) $ (2,917) Income (loss) per share (diluted) 0.01 ( 0.01) (0.02) (0.06) Weighted average shares outstanding: Basic and diluted 51,335,322 50, 845,942 51,088,896 47,561,270 Cash $ 9,817 $ 10,305 $ 9,817 $ 10,305 Three months ended September 30, 2025 % % Total % Revenue $ 9,303 100.0% $ 4,894 100.0% $ 14,197 100.0% Cost of sales 5,109 54.9% 1,287 26.3% 6,397 45.1% Gross Profit $ 4,193 45.1% $ 3,607 73.7% $ 7,800 54.9% Percentage of Total Gross Profit 54% 46% 100% Three months ended September 30, 2024 % % Total % Revenue $ 7,147 100.0% $ 4,442 100.0% $ 11,589 100.0% Cost of sales 4,194 58.7% 850 19.1% 5,044 43.5% Gross Profit $ 2,953 41.3% $ 3,592 80.9% $ 6,545 56.5% Percentage of Total Gross Profit 45% 55% 100% Connected Devices Software and Services Connected Devices Software and Services
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9 Non-IFRS and Other Finance Measures. GROSS PROFIT1 AND GROSS PROFIT MARGIN1 CALCULATIONS CONTINUED RECONCILIATION OF INCOME (LOSS) TO ADJUSTED EBITDA1 ABOUT TANTALUS SYSTEMS HOLDING INC. (TSX: GRID, OTCQX: TGMPF) 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 wh ile leveraging advanced capabilities to plan for future requirements. Learn more at www.tantalus.com. 1 See definitions for Non-IFRS and Other Financial Measures above. Nine months ended September 30, 2025 % % T otal % Revenue $ 25, 949 100.0% $ 13,239 100.0% $ 39,188 100.0% Cost of sales 14,525 56.0% 3,416 25.8% 17,941 45.8% Gross Profit $ 11, 424 44.0% $ 9,823 74.2% $ 21,247 54.2% Percentage of Total Gross Profit 54% 46% 100% Nine months ended September 30, 2024 % % T otal % Revenue $ 19, 912 100.0% $ 11,810 100.0% $ 31,722 100.0% Cost of sales 11,438 57.4% 2,857 24.2% 14,294 45.1% Gross Profit $ 8, 474 42.6% $ 8,954 75.8% $ 17,428 54.9% Percentage of Total Gross Profit 49% 51% 100% Software and Services Connected Devices Software and Services Connected Devices Three months ended September 30, 2025 Three months ended September 30, 2024 Nine months ended September 30, 2025 Nine months ended September 30, 2024 Income (loss) for the period $ 384 $ ( 361) $ (1,170) $ (2,917) Finance expense 199 401 921 1,235 Interest income (33) - (33) - Income tax (recovery) expense (8) - 25 22 Depreciation and amortization 421 438 1,247 1,323 EBITDA 963 478 988 (337) Share-based compensation 252 74 800 383 Foreign exchange (18) 33 252 (171) Unrealized gain on loan modification - - (16) - Adjusted EBITDA $ 1,197 $ 585 $ 2,024 $ (125)
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10 Non-IFRS and Other Finance Measures. 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”, “est imates”, “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 TRUS ense Gateway and TRUGrid analytics offerings , to help utilities leverage existing infrastructure while simultaneously furthering their grid modernization initiatives , the Company’s plans, objectives, strategy and expectations for its business, result s 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 and TRUGrid analytics offerings, 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 on the Company’s business and financial condition, the ability of the Company to execute on its plans, the absence of material adverse changes i n 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 March 31, 2025 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 Factor s” in the Company’s Annual Information Form dated March 31, 2025, 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, o r 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.
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11 Non-IFRS and Other Finance Measures. 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 t he 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 Website: www.tantalus.com LinkedIn: LinkedIn/company/tantalus X (formerly Twitter): @TantalusCorp