TORONTO, Aug. 7, 2025 /PRNewswire/ - Tucows Inc. $(TCX)$ (TSX: TC), a global internet services leader, today reported its unaudited financial results for the second quarter ended June 30, 2025. All figures are in U.S. dollars.

"Q2 showed good progress in all three businesses," said Elliot Noss, President & CEO of Tucows. "Revenue grew 10% on the back of across-the-board topline gains, with Wavelo and Tucows Domains coming in ahead of plan. Gross profit rose 6%, and net of a one-off fiber-lease expense at Ting--each business continued the robust year-over-year margin expansion we saw in Q1. Most importantly, our ongoing work to improve capital and operational efficiency, including Ting's pivot to a capital-light model, helped drive a 37% jump in Adjusted EBITDA, highlighting our improved economics. This put our mid-year Adjusted EBITDA slightly ahead of progress towards our 2025 guidance."

Financial Results

Consolidated net revenue for the second quarter of 2025 increased 10.1% to $98.5 million from $89.4 million for the second quarter of 2024, driven by strong year-over-year revenue gains from all three Tucows businesses.

Gross profit for the second quarter of 2025 increased 6.2% to $22.1 million from $20.8 million from the second quarter of 2024. The increase in gross profit was driven by strong year-over-year margin gains from Wavelo and Tucows Domains, but was offset by a decrease in gross margin from Ting, due to a one-time, non-cash lease adjustment resulting from a revision to lease payment recognition periods for certain contracts.

Net loss for the second quarter of 2025 decreased to $15.6 million, or a loss of $1.41 per share, compared to a net loss of $18.6 million, or a loss of $1.70 per share, for the second quarter of 2024, reflecting improved operational efficiency and revenue momentum. Adjusted net income(1) (loss) and Adjusted EPS(1) in Q2 2025 are ($16.3 million) and ($1.47) per share compared to Q2 2024 Adjusted net income(1) (loss) of ($17.8 million) and Adjusted EPS(1) of ($1.63) per share.

Adjusted EBITDA(1) for the second quarter of 2025 grew 37% to $12.6 million from $9.2 million for the second quarter of 2024. The year-over-year improvement was fueled by revenue growth across all three segments: margin expansion from Wavelo and Tucows Domains, Ting's shift to a capital-light model, and rigorous cost discipline and AI-driven efficiencies across the Company.

We ended the second quarter of 2025 with cash and cash equivalents, and restricted cash and restricted cash equivalents of $68.6 million. This compares with $55.0 million at the end of the first quarter of 2025 and $52.2 million at the end of the second quarter of 2024.

Summary Financial Results

(In Thousands of US Dollars, except Per Share data)

 
                     3 Months ended June 30                 6 Months ended June 30 
------------  -------------------------------------  ------------------------------------- 
                 2025         2024       % Change       2025         2024       % Change 
              (unaudited)  (unaudited)  (unaudited)  (unaudited)  (unaudited)  (unaudited) 
------------  -----------  -----------  -----------  -----------  -----------  ----------- 
Net Revenues    98,463       89,423        10 %        193,072      176,880        9 % 
------------  -----------  -----------  -----------  -----------  -----------  ----------- 
Gross 
 Profit(2)      22,110       20,810         6 %        45,641       39,126        17 % 
------------  -----------  -----------  -----------  -----------  -----------  ----------- 
Income 
 Earned on 
 Sale of 
 Transferred 
 Assets, 
 net             3,112        3,357        (7) %        5,853        6,978       (16) % 
------------  -----------  -----------  -----------  -----------  -----------  ----------- 
Net Income 
 (Loss)(2)     (15,637)     (18,604)       16 %       (30,770)     (45,088)       32 % 
------------  -----------  -----------  -----------  -----------  -----------  ----------- 
Adjusted Net 
 Income 
 (Loss)(1)     (16,277)     (17,835)        9 %       (31,187)     (41,215)       24 % 
------------  -----------  -----------  -----------  -----------  -----------  ----------- 
Basic 
 earnings 
 (Loss) per 
 common 
 share          (1.41)       (1.70)        17 %        (2.79)       (4.12)        32 % 
------------  -----------  -----------  -----------  -----------  -----------  ----------- 
Adjusted 
 Basic 
 earnings 
 (Loss) per 
 common 
 share(1)       (1.47)       (1.63)        10 %        (2.82)       (3.77)        25 % 
------------  -----------  -----------  -----------  -----------  -----------  ----------- 
Adjusted 
 EBITDA(1)      12,577        9,178        37 %        26,248       13,380        96 % 
------------  -----------  -----------  -----------  -----------  -----------  ----------- 
Net cash 
 provided by 
 (used in) 
 operating 
 activities      6,566       (4,707)       239 %       (4,685)     (10,386)       55 % 
------------  -----------  -----------  -----------  -----------  -----------  ----------- 
 
 
(1) Non-GAAP financial measures are described below and reconciled to GAAP 
measures in the accompanying tables. 
(2) Gross profit and Net Income (Loss) for Q2 2025 includes a one-time, 
immaterial, non-cash increase in lease expense of $2.7 million related to a 
lease accounting adjustment for certain long-term network access agreements. 
 

Summary of Revenues, Gross Profit and Adjusted EBITDA

(In Thousands of US Dollars)

 
                       Revenue                 Gross Profit             Adj. EBITDA(1) 
-------------  ------------------------  ------------------------  ------------------------ 
                3 Months ended June 30    3 Months ended June 30    3 Months ended June 30 
               ------------------------  ------------------------  ------------------------ 
                  2025         2024         2025         2024         2025         2024 
               (unaudited)  (unaudited)  (unaudited)  (unaudited)  (unaudited)  (unaudited) 
-------------  -----------  -----------  -----------  -----------  -----------  ----------- 
Ting Internet Services: 
------------------------------------------------------------------------------------------- 
Fiber 
 Internet 
 Services        16,410       14,571      7,704(2)       9,818     (3,651)(2)     (6,442) 
-------------  -----------  -----------  -----------  -----------  -----------  ----------- 
 
Wavelo Platform Services: 
------------------------------------------------------------------------------------------- 
Platform 
 Services        12,656       10,495       12,561       10,163 
-------------  -----------  -----------  -----------  -----------  -----------  ----------- 
Other 
 Professional 
 Services           0            6            0           (1) 
-------------  -----------  -----------  -----------  -----------  -----------  ----------- 
Total Wavelo 
 Platform 
 Services        12,656       10,501       12,561       10,162        5,360        3,911 
-------------  -----------  -----------  -----------  -----------  -----------  ----------- 
 
Tucows Domain Services: 
------------------------------------------------------------------------------------------- 
Wholesale 
-------------  -----------  -----------  -----------  -----------  -----------  ----------- 
Domain 
 Services        51,557       48,504       10,365        9,583 
-------------  -----------  -----------  -----------  -----------  -----------  ----------- 
Value Added 
 Services         5,757        4,524        5,300        4,004 
-------------  -----------  -----------  -----------  -----------  -----------  ----------- 
Total 
 Wholesale       57,314       53,028       15,665       13,587 
-------------  -----------  -----------  -----------  -----------  -----------  ----------- 
 
Retail           10,290        9,340        5,895        5,282 
-------------  -----------  -----------  -----------  -----------  -----------  ----------- 
Total Tucows 
 Domain 
 Services        67,604       62,368       21,560       18,869       12,543       11,217 
-------------  -----------  -----------  -----------  -----------  -----------  ----------- 
 
Corporate: 
------------------------------------------------------------------------------------------- 
Mobile 
 Services and 
 Eliminations     1,793        1,983       (2,431)       (754)       (1,675)        492 
-------------  -----------  -----------  -----------  -----------  -----------  ----------- 
 
Network Expenses: 
------------------------------------------------------------------------------------------- 
Network, 
 other costs       n/a          n/a        (6,023)      (6,862)        n/a          n/a 
-------------  -----------  -----------  -----------  -----------  -----------  ----------- 
Network, 
 depreciation 
 of property 
 and 
 equipment         n/a          n/a       (10,460)     (10,057)        n/a          n/a 
-------------  -----------  -----------  -----------  -----------  -----------  ----------- 
Network, 
 amortization 
 of 
 intangible 
 assets            n/a          n/a         (366)        (366)         n/a          n/a 
-------------  -----------  -----------  -----------  -----------  -----------  ----------- 
Network, 
 impairment        n/a          n/a         (435)          0           n/a          n/a 
-------------  -----------  -----------  -----------  -----------  -----------  ----------- 
Total Network 
 Expenses          n/a          n/a       (17,284)     (17,285)        n/a          n/a 
-------------  -----------  -----------  -----------  -----------  -----------  ----------- 
 
Total            98,463       89,423      22,110(2)     20,810      12,577(2)      9,178 
-------------  -----------  -----------  -----------  -----------  -----------  ----------- 
 
 
(1) Non-GAAP financial measures are described below and reconciled to GAAP 
measures in the accompanying tables. 
(2) Ting's gross margin for Q2 2025 includes a one-time, immaterial, non-cash 

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