Burnaby, British Columbia--(Newsfile Corp. - August 5, 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 June 30, 2026 (and as compared with the second quarter of 2025).

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

Q2 2026 FINANCIAL HIGHLIGHTS
(All comparisons made are against the prior year period, unless otherwise noted)

• Revenue increased by 18% to $15.4 million, a new quarterly record
• Annual Recurring Revenue¹ increased by 13% to $15.0 million, a new milestone
• Gross Profit Margin increased by 190 basis points to 54.9%
• Loss for the period was $1.0 million
• Loss per Share was consistent at $0.02
• Adjusted EBITDA¹ increased by 35% to $690,000
• Liquidity¹ more than doubled to $41.3 million

"Tantalus is pleased to see our business continuing to thrive. At $15.4 million, the Company set a new record for the most revenue generated during a quarter. The Company also delivered milestones for revenue generated in the first six months of a year and on a trailing twelve-month basis," said Peter Londa, President & CEO of Tantalus. "We continue to deliver strong gross profit margins, are increasing annual recurring revenue, and are improving Adjusted EBITDA margin contributions as a result of efficiencies and leverage within our business model. The demand for our data-driven solutions remains durable, with more utilities deploying the TRUSense Gateway^TM and utilizing our analytics solutions as they continue to prioritize a data-centric approach to their mandate to modernize their distribution grids."

Q2 2026 FINANCIAL SUMMARY
(All comparisons made are against the prior year period, unless otherwise noted)

• Revenue: The Company set a new quarterly record by generating $15.4 million of revenue, reflecting 18% year-over-year growth. The strong result was driven by adding new utilities to the Company's user community and expanding deployments with existing customers.

• Recurring Revenue¹: Recurring Revenue¹ generated during the period increased to $3.6 million and represented 23% of total revenue in the quarter. The increase continues to validate the Company's operating model with the activation of Connected Devices and Infrastructure ("Connected Devices") triggering recurring revenue through the life of a grid modernization deployment.

• Gross Profit and Gross Profit Margin: Gross Profit improved to $8.5 million and Consolidated Gross Profit Margin was 54.9%. The favorable results were driven by the mix of Connected Devices shipped during the quarter and strong contributions from software license revenue.

• Loss and Loss Per Share: Loss for the period was $1.0 million representing a loss per share of $0.02. The loss primarily reflected higher operating expenses, including investments in sales and marketing as well as research and development to support longer-term growth initiatives.

• Adjusted EBITDA¹: The Company delivered positive Adjusted EBITDA¹ of $690,000, reflecting an increase of 35% over the prior year period. The increase reflects the operating leverage within the Company's business model.

• Cash Flow from Operating Activities: Cash Flow from Operating Activities reflected a cash outflow of approximately $5.7 million, driven primarily by working capital investments. These investments included approximately $2 million in inventory balances to proactively secure supply for key components amid selective cost and capacity constraints within the supply chain, and approximately $2.7 million related to the seasonal movement in deferred revenues. The Company expects the majority of the investment in inventory to support deployments in the second half of 2026 and into early 2027.

• Liquidity¹: Tantalus' liquidity improved to approximately $41.3 million, consisting of $29.3 million of cash and borrowing availability of $12.0 million under its line of credit facility.

OTHER KEY DEVELOPMENTS

• Annual Recurring Revenue ("ARR")¹ Growth: ARR¹ increased by approximately 13% year over year to another record-high level of $15.0 million as of June 30, 2026.

• Sales Order Conversion: During Q2 2026, the Company converted $9.9 million of orders from its sales pipeline. For the first six months of 2026, total orders converted were $29.5 million, reflecting a year-to-date book-to-bill ratio of 0.97x, measured against the Company's highest first half revenue on record. This ratio is consistent with management's experience of utility budget cycles and contract approvals, rather than a change in underlying demand. The Company continues to see durable demand supported by a growing, qualified pipeline of opportunities across both operating segments.

• Growth of User Community: The Company added five new utilities during the quarter, bringing the number of new utilities through the first six months of 2026 to eight in total. The Company continues to demonstrate its ability to convert new accounts from its sales pipeline, with eight additional utilities currently in a contracting process with the Company.

• TRUSense Gateway™ Progress: As of the date of this news release, the number of utilities placing orders for the TRUSense Gateway^TM increased to 77. Of these utilities, 37 are now beyond the pilot phase and approximately 30% are new to Tantalus' user community. With approximately 6,200 TRUSense Gateways^TM shipped to date, the Company continues to validate its first-mover advantage and differentiated approach that is securing additional opportunities.

• Amended loan facility and repayment of EDC Term Loan: On June 26, 2026, the Company amended its loan facility, which now provides aggregate commitments of up to $20.0 million, comprising of a $12.0 million revolving credit facility, a new $3.5 million term loan ("New Term Loan"), and $4.5 million in letters of credit capacity. Subsequent to quarter-end, on July 6, 2026, the Company fully repaid the outstanding balance of the term loan from EDC of approximately $6.0 million plus accrued interest.

• Launch of TRUGrid^TM Verify and TRUGrid^TM Advantage: On May 12, 2026, the Company announced the launch of TRUGrid^TM Verify, an AI-enabled analytics application that identifies and eliminates hidden errors in GIS and AMI data. The Company also launched TRUGrid^TM Advantage, a dedicated managed service offering to support the deployment of Tantalus' suite of analytics solutions. Both offerings have customers actively leveraging these new capabilities.

The Company will hold a conference call and webcast to discuss the financial results on Thursday, August 6, 2026, at 10:00 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=tHvGHj5p

REPLAY INFORMATION

A conference call and webcast replay will be available until August 13, 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 interim condensed consolidated financial statements for the three-month and six-month periods ended June 30, 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 and six-month periods ended June 30, 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 and six-month periods ended June 30, 2026 and the three-month and six-month periods ended June 30, 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.
Interim Condensed Consolidated Statements of Loss and Other Comprehensive Loss
(Unaudited)
(Expressed in thousands of U.S. dollars except for shares and per share amounts)

TANTALUS SYSTEMS HOLDING INC.
Interim Condensed Consolidated Statements of Financial Position
(Unaudited)
(Expressed in thousands of U.S. dollars)

TANTALUS SYSTEMS HOLDING INC.
Interim Condensed Consolidated Statements of Cash Flows
(Unaudited)
(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 non-IFRS financial 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. This press release refers to the following non-IFRS financial measures, non-IFRS ratios and supplementary financial measures:

1. "EBITDA" represents 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.

2. "Adjusted EBITDA" represents 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.

3. "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.

4. "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.

5. "Annual Recurring Revenue" or "ARR" is the Company's Recurring Revenue as expressed on a forward-looking annualized basis attributable to its analytics, subscriptions and SaaS offerings, hosting services, software maintenance and technical support services agreements at a point in time.

6. "Liquidity" is the Company's cash balance plus available borrowing capacity under its line of credit facility.

SUMMARY OF IFRS RESULTS AND NON-IFRS MEASURES¹

GROSS PROFIT AND GROSS PROFIT MARGIN CALCULATIONS

RECONCILIATION OF 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 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 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 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.

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