Burnaby, British Columbia--(Newsfile Corp. - May 6, 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 ended March 31, 2026.

All amounts presented in this news release are in United States dollars ("U.S. dollars"), unless otherwise indicated.

Q1 2026 FINANCIAL HIGHLIGHTS

• Revenue: Revenue increased by approximately 27% year-over-year to $15.1 million. Revenue from Connected Devices and Infrastructure ("Connected Devices") increased by $2.6 million or 33% and Utility Software Applications and Services ("Software and Services") revenue increased by $0.6 million or approximately 14%. The increases in revenue were a result of adding new customers, commencing larger shipments of the TRUSense Gateway™ and continuing to expand deployments with existing accounts. Recurring Revenue¹ increased by 17% to $3.6 million and represented 24% of total revenue in the quarter.

• Gross Profit and Gross Profit Margin: Gross Profit improved by 21% to $7.9 million from the prior year with contributions from both operating segments. Overall Gross Profit Margin, on a consolidated basis, decreased to 52.3% due primarily to the impact of tariff recoveries included in revenue in the current period and product mix within the Connected Devices segment while margins from the Software and Services segment remained in line with the same period last year. Excluding the impact of tariff recoveries included in revenue, the Gross Profit Margin was 55.1%.

• Annual Recurring Revenue ("ARR")¹ Growth: ARR¹ grew by over 15% year-over-year to $14.8 million as of March 31, 2026 (March 31, 2025: $12.8 million).

• Loss and Loss Per Share: Loss for the period was $405,000 compared to a loss of $651,000 for the same period last year, representing a diluted loss per share of $0.01 for both periods.

• Adjusted EBITDA: The Company delivered Adjusted EBITDA¹ of $750,000, reflecting an improvement compared to $317,000 in the prior year period.

• Cash Flow from Operating Activities: The Company generated positive Cash Flow from Operating Activities of approximately $4.7 million.

• Bought Deal Financing: On February 9, 2026, the Company completed a bought deal financing by issuing 4,299,275 shares at a price of CAD$5.35 per share. Gross proceeds were approximately $17.0 million (CAD$23.0 million) and net proceeds were approximately $15.6 million (CAD$21.2 million) after total share issuance costs of approximately $1.4 million (CAD$1.8 million).

• Liquidity: As at March 31, 2026, Tantalus had available liquidity of approximately $40.4 million compared to $21.1 million as at December 31, 2025. The available liquidity was comprised of a cash balance of $31.9 million and borrowing availability of $8.5 million under its line of credit.

"Thanks to our team's hard work and their continued collaboration with our customers, Tantalus delivered a new milestone for revenue generated in a quarter to commence 2026," said Peter Londa, President & CEO of Tantalus. "While we continue to build momentum, we are mindful of the increasing economic and geopolitical uncertainty that may influence near-term decisions within the utility industry. Our data-centric approach is resonating with utilities as we seek to provide a flexible, cost-effective path to grid modernization, and we will continue to work closely with our customers to help them resolve mission-critical challenges across their respective distribution grids."

OTHER KEY DEVELOPMENTS

• Sales Order Conversion: During Q1 2026, the Company converted $19.6 million in orders from its sales pipeline and ended the quarter with a book-to-bill ratio of 1.3x.

• Growth of User Community: The Company added 3 new utilities in Q1 2026, demonstrating a continued ability to convert new accounts from its sales pipeline.

• TRUSense Gateway Progress: As of the date of this news release, 70 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.

• ERT License Agreement Extension: The Company extended its license agreement with Itron, Inc. to support full Encoder Receiver Transmitter (ERT®) compatibility across the TRUConnect™ AMI Platform. The Company remains the only solution provider expressly licensed to read and deliver the complete ERT messaging structure across a purpose-built AMI platform- allowing utilities to preserve Itron warranties and enhance their grid modernization efforts.

• 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.

• Changes regarding Import Tariffs: In February 2026, the United States Supreme Court invalidated tariffs imposed under the International Emergency Economic Powers Act (IEEPA). Subsequent to that decision, the Court of International Trade (CIT) issued an order that effectively required United States Customs and Border Protection (CBP) to issue refunds to all importers who validly paid IEEPA tariffs. On April 20, 2026, CBP launched the Consolidated Administration and Processing of Entries (CAPE) portal to process refund claims for IEEPA tariffs. The Company intends to file refund claims for the IEEPA tariffs that the Company, or its brokers and logistics partners, are eligible to do so across the various phases of the refund process. The Company is aware of continuing uncertainty regarding whether the U.S. government will appeal the CIT order or otherwise modify the expected refund process as well as the timing for receipt of refunds.

The Company will hold a conference call and webcast to discuss the financial results on Thursday, May 7, 2026, at 11:00 am Eastern Time.

CONFERENCE CALL

Participants, please ask to be joined to the Tantalus Systems call.

Webcast URL: https://event.choruscall.com/mediaframe/webcast.html?webcastid=0pRYy4hB

REPLAY INFORMATION

A conference call and webcast replay will be available until May 14, 2026. To access the conference call replay, please see details below:

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 period ended March 31, 2026, audited financial statements for the years ended December 31, 2025 and 2024 and related Management's Discussion & Analysis ("MD&A") for the three-month periods ended March 31, 2026 and 2025 and years ended December 31, 2025 and 2024, which can be found on SEDAR+ at www.sedarplus.ca and are also available on the Company's website at www.tantalus.com.

All comparisons presented in this press release are between the three-month period ended March 31, 2026 and the three-month period ended March 31, 2025, unless otherwise indicated. 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 unless otherwise noted.

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 on www.sedarplus.ca.

TANTALUS SYSTEMS HOLDING INC.
Consolidated 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.
Consolidated 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.

a) "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.

b) "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.

This press release also refers to the following non-IFRS ratios:

c) "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:

d) "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.

e) "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 INFORMATION¹

GROSS PROFIT AND GROSS PROFIT MARGIN CALCULATIONS

RECONCILIATION OF LOSS TO ADJUSTED EBITDA¹

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://www.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 to support utilities' grid modernization efforts, the continuing and future application of import tariffs (and the processing of any related refund claims), 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, including economic and geopolitical matters, 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 March 27, 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 March 27, 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.

¹ See definitions for Non-IFRS and Other Financial Measures below.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/296319

Source: Tantalus Systems Holding Inc.