Burnaby, British Columbia--(Newsfile Corp. - November 11, 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, announced its financial and operating results for the three-month period ended September 30, 2026 (and as compared with the third quarter of 2025).

All amounts presented in this press release are in United States dollars ("U.S. dollars"), unless otherwise indicated. Due to one-time refunds associated with tariffs previously paid pursuant to the International Emergency Economic Powers Act ("IEEPA") that were received from the U.S. government during the three months ended September 30, 2026, the Company is including a series of measurements that exclude the impact of the refunded amount, as management believes this approach provides a more relevant comparison to prior periods.

Q3 2026 FINANCIAL HIGHLIGHTS
(All comparisons made are against the prior year period, unless otherwise noted)

• Adjusted Revenue¹, excluding the impact of IEEPA tariff refunds, was $14.3 million, in line with the prior year. When including the impact of the IEEPA tariff refunds, Revenue was $12.9 million.

• Annual Recurring Revenue¹ ("ARR") increased by 14% to $15.4 million, a new high-water mark.

• Adjusted Gross Profit Margin¹, excluding the impact of IEEPA tariff refunds, increased 110 basis points as compared to the prior year period to 56.0%. When including the impact of the IEEPA tariff refunds, Gross Profit Margin was 70.6%.

• Income for the period was $1.4 million with Diluted Earnings per Share of $0.02, including the impact of IEEPA tariff refunds.

• Adjusted EBITDA¹ was $1.2 million, in line with the prior year period, excluding the impact of IEEPA tariff refunds.

• Liquidity¹ was $33.3 million, up from $18.3 million as of the end of the prior year period.

"Tantalus delivered solid progress in the third quarter on metrics tied to long-term value: 11 new utilities converted out of our pipeline, accelerated adoption of the TRUSense Gateway™, another record for ARR, and growth of both Adjusted Revenue and Adjusted EBITDA on a trailing twelve-month basis," said Peter Londa, President & CEO of Tantalus. "Durability of demand remains strong, despite shipments of connected devices shifting out of the quarter, which have impacted timing of revenue. We remain well-positioned to convert such demand into sustainable, profitable growth with 92 utilities placing orders for the TRUSense Gateway, 53 of which are beyond the pilot phase, our Calix collaboration opening a new channel to fiber-enabled utilities, inventory positioned to allow us to manage through longer lead times and inflationary pressures, and approximately $33.3 million in liquidity."

Q3 2026 FINANCIAL SUMMARY
(All comparisons made are against the prior year period, unless otherwise noted)

• Revenue and Adjusted Revenue¹: After including an approximate $1.4 million reduction related to IEEPA tariff refunds that are expected to be credited to eligible customers, Revenue for the quarter was $12.9 million. Excluding the impact of IEEPA tariff refunds, Adjusted Revenue¹ was $14.3 million for the quarter. Adjusted Revenue from Connected Devices was $9.2 million, in line with the prior year period, reflecting the timing of shipments impacted by availability and capacity allocations of meters from our partners, lead times with our contract manufacturer and a request by one of our larger customers to push shipments into 2027- these factors affected timing of revenue rather than the durability of demand. Software and Services revenue increased 4% to $5.1 million as more connected devices were shipped and deployed.

• Recurring Revenue¹: Recurring Revenue¹ increased by 14% to $3.9 million and represented 27% of total Adjusted Revenue¹ in the quarter compared to 24% in the prior year period. The increase reflects growth in the activation of software licenses on Connected Devices triggering recurring revenue through the life of a grid modernization deployment, increases in annual maintenance and hosting services as well as an increasing number of activations for the TRUGrid™ Analytics and Advantage offerings.

• Gross Profit Margin and Adjusted Gross Profit Margin¹: After including the net impact of approximately $1.1 million related to IEEPA tariff refunds, Gross Profit Margin was 70.6%. Excluding the impact of IEEPA tariff refunds, Adjusted Gross Profit Margin¹ increased by 110 basis points to 56.0% despite inflationary pressure on components for connected devices.

• Income and Earnings Per Share: Income for the period was $1.4 million, with Diluted Earnings per Share of $0.02, inclusive of an approximate $1.2 million benefit from IEEPA tariff refunds.

• Adjusted EBITDA¹: The Company delivered Adjusted EBITDA¹ of $1.2 million, excluding the impact of IEEPA tariff refunds.

• Cash Flow from Operating Activities: Cash Flow from Operating Activities reflected a cash outflow of approximately $1.1 million, driven primarily by working capital changes and management's decision to invest approximately $1.3 million in inventory of key components amid increasing lead times and inflationary pressures, and an approximately $3.1 million change due to the seasonal movement in deferred revenues. The Company expects the investment in inventory to support deployments and margins over the coming months.

• Liquidity¹: Tantalus has available liquidity of approximately $33.3 million, consisting of $21.3 million of cash and borrowing availability of approximately $12.0 million under its line of credit facility. The Company fully repaid the outstanding balance of the EDC Term Loan of approximately $6.0 million plus accrued interest.

OTHER KEY DEVELOPMENTS

• Annual Recurring Revenue¹ Growth: ARR¹ increased by approximately 14% over the prior year to another record-high of $15.4 million as of September 30, 2026.

• Sales Order Conversion: For the first nine months of 2026, total orders converted were $40.1 million, reflecting a year-to-date book-to-bill ratio of 0.90x, measured against Adjusted Revenue. This ratio is consistent with management's experience of utility budget cycles and contract approvals relative to the current economic environment. 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 11 new utilities during the quarter, bringing the number of new utilities added through the first nine months of 2026 to 19 in total.

• TRUSense Gateway Progress: As of the date of this press release, 92 utilities have placed orders for the TRUSense Gateway. Of these utilities, 53 are now beyond the pilot phase and approximately 35% are new to Tantalus' user community. With over 10,800 TRUSense Gateways shipped to date, the Company continues to validate its ability to secure long-term opportunities to deliver growth.

• Collaboration with Calix: On August 27, 2026, the Company announced a collaboration with Calix, Inc. (NYSE: CALX) to jointly offer fiber-enabled AMI solutions to electric cooperative and municipal utilities, pairing Tantalus' TRUSense Fiber Gateway and TRUConnect™ AMI platform with Calix's Optical Network Terminal technology.

• Inclusion in Smart Grid Index: On September 21, 2026, the Company was added to the NASDAQ OMX Clean Edge Smart Grid Infrastructure™ Index in the index's semi-annual reconstitution and is now held by the First Trust NASDAQ® Clean Edge® Smart Grid Infrastructure Index Fund (NASDAQ: GRID).

The Company will hold a conference call and webcast to discuss the financial results on Thursday, November 12, 2026, at 10:00 am Eastern Time.

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

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

IMPACT OF IEEPA TARIFF ADJUSTMENTS

The discussion in this press release includes results for the current and prior periods on an adjusted basis, as defined in the Non-IFRS Measures and Ratios section below. The IFRS measures include the impact of one-time IEEPA tariff refunds received during the three months ended September 30, 2026 from U.S. Customs and Border Protection ("CBP"). For the three and nine months ended September 30, 2026, Adjusted Revenue, Adjusted Cost of Sales, Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted EBITDA and Adjusted EBITDA Margin exclude the impact of IEEPA tariff refunds received from CBP. As these refunds relate to tariff amounts incurred and paid in prior periods and were recognized for the first time in the third quarter of 2026, management believes they are not representative of the Company's ongoing operating performance and that the adjusted measures provide a more meaningful comparison against the prior year periods (see Reconciliation of Non-IFRS Measures and Ratios below).

Specifically, the Company received refunds of approximately $2.6 million from CBP for IEEPA tariff amounts previously paid. Of this amount, approximately $2.5 million was recorded as a reduction of cost of sales in the Connected Devices segment and $0.1 million was recorded as interest income. The Company also recorded a reduction to Connected Devices revenue of approximately $1.4 million for credits expected to be issued to eligible customers. As a result, Gross Profit for the quarter included a net benefit of approximately $1.1 million.

The IEEPA tariff refunds were recognized for the first time in the third quarter of 2026 and did not affect any prior period presented.

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 nine-month periods ended September 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 nine-month periods ended September 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 nine-month periods ended September 30, 2026 and the three-month and nine-month periods ended September 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 Income (Loss) and
Other Comprehensive Income (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 MEASURES AND RATIOS

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 or financing activities, determined in accordance with IFRS, as indicators of our performance.

We provide these additional 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. See the reconciliation of the following non-IFRS financial measures to the most comparable IFRS financial measure in the "Reconciliation of Non-IFRS Measures and Ratios" section of this press release.

1. "Adjusted Revenue" represents Revenue adjusted for a portion of refunds received from tariffs previously paid under IEEPA that are expected to be credited to eligible customers. The estimated credits were offset against revenue generated from the Connected Devices segment. Management believes that Adjusted Revenue is a useful indicator for investors, and is used by management, in evaluating the operating performance of the Company.

2. "Adjusted Cost of Sales" represents Cost of Sales adjusted for a portion of IEEPA tariff refunds. The IEEPA tariff refunds were offset against cost of sales within the Connected Devices segment. Management believes that Adjusted Cost of Sales is a useful indicator for investors, and is used by management, in evaluating the operating profile of the Company.

3. "Adjusted Gross Profit" represents Gross Profit adjusted for the impact of IEEPA tariff refunds. Management believes that Adjusted Gross Profit is a useful indicator for investors, and is used by management, in evaluating the operating performance of the Company.

4. "Adjusted Gross Profit Margin" represents Adjusted Gross Profit as a percentage of the Company's Adjusted Revenue. Management believes that Adjusted Gross Profit Margin is a useful indicator for investors, and is used by management, in evaluating the operating performance of the Company.

5. "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.

6. "Adjusted EBITDA" represents income (loss) adjusted for interest, income tax, depreciation and amortization, share-based compensation, foreign exchange gain (loss), IEEPA tariff adjustments and other income/expenses not attributable to the ongoing operations of the Company. Beginning in the second quarter of 2026, the Company also excluded non-recurring restructuring costs from Adjusted EBITDA, as these expenses are not representative of ongoing operating expenses. During the third quarter of 2026, the Company excluded IEEPA tariff refunds from Adjusted EBITDA as they are not attributable to the ongoing operations of the Company. Management believes that Adjusted EBITDA is a useful indicator for investors, and is used by management, in evaluating the ongoing operating performance of the Company.

7. "Adjusted EBITDA Margin" is comprised of Adjusted EBITDA expressed as a percentage of the Company's Adjusted Revenue to facilitate operating performance comparison from period to period. Management believes that Adjusted EBITDA Margin is a useful indicator for investors, and is used by management, in evaluating the ongoing operating performance of the Company.

8. "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.

9. "Annual Recurring Revenue" or "ARR" is the Company's Recurring Revenue 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.

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

SUMMARY OF IFRS RESULTS

RECONCILIATION OF NON-IFRS MEASURES AND RATIOS¹

Tantalus measures its operating performance by using certain non-IFRS performance measures such as Adjusted Revenue, Adjusted Cost of Sales, Adjusted Gross Profit, Adjusted Gross Profit Margin and Adjusted EBITDA. These measures are not defined by IFRS and do not have any standardized meaning prescribed by IFRS. Therefore, these measures may not be comparable to similar measures presented by other issuers. A reconciliation is provided below for the IFRS measure most comparable to these measures.

GROSS PROFIT, GROSS PROFIT MARGIN, ADJUSTED GROSS PROFIT¹ AND ADJUSTED GROSS PROFIT MARGIN¹ CALCULATIONS

GROSS PROFIT, GROSS PROFIT MARGIN, ADJUSTED GROSS PROFIT¹ AND ADJUSTED 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 while leveraging advanced capabilities to plan for future requirements. All of 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 press 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 press release includes statements such as those relating to the ability of Tantalus' solutions to support utilities' grid modernization efforts, the Company's plans to issue credits to eligible customers relating to the IEEPA tariff refunds, the timing of shipments of Connected Devices (including shipments rescheduled into future periods), the Company's expansion of its sales channel and addressable market pursuant to the collaboration with Calix, the durability of demand for the Company's solutions and the conversion of such demand into Revenue growth, the Company's ability to utilize inventory to mitigate the impact of longer lead times and inflationary pressures, 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 press 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 press 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™, the Company's 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 Measures and Ratios". For a reconciliation of these measures to the closest IFRS measure, where a comparable IFRS measure exists, see "Reconciliation of Non-IFRS Measures and Ratios".

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