Tucows Reports Strong Y/Y Earnings & Revenue Increases in Q1
Tucows reported first-quarter 2025 revenues of $94.6 million, up 8.2% from $87.5 million in the same period a year ago. Gross profit jumped 28.5% year over year to $23.5 million from $18.3 million. The net loss narrowed significantly to $15.1 million (or $1.37 per share) from a loss of $26.5 million (or $2.42 per share) in the first quarter of 2024. The adjusted net loss came in at $14.9 million, or $1.35 per share, improving from an adjusted net loss of $23.4 million, or $2.14 per share, a year ago. Adjusted EBITDA jumped 225% to $13.7 million compared with $4.2 million in the prior-year quarter.
Tucows Inc. price-consensus-eps-surprise-chart | Tucows Inc. Quote
All three operating segments — Ting, Wavelo and Tucows Domains — delivered solid performances. Ting Internet revenues rose 16% year over year to $16.3 million, driven by a 12% increase in subscribers and growth in average revenue per user (ARPU). Gross profit for Ting reached $10.5 million, up from $8.7 million a year ago, while the adjusted EBITDA loss significantly narrowed to $0.9 million from a loss of $9.5 million, aided by the capital efficiency initiatives introduced in 2024.
Wavelo, Tucows' platform services business, recorded revenues of $11.4 million, up 21% year over year. Gross profit increased 25% to $11.3 million, and adjusted EBITDA grew 60% to $4.4 million. Growth was attributed to an expanding subscriber base and improved contractual terms, including a rate card introduced as part of the renewed agreement with Echostar.
Tucows Domains generated revenues of $65.3 million, a 6% increase from the first quarter of 2024. Gross profit improved 9% to $20.2 million, and adjusted EBITDA rose 15% to $11.5 million. While total transactions declined 6% due to a large customer transition, the underlying business showed strength with a renewal rate of 76.5% and improved margins from higher-value services, such as expiry stream monetization.
CEO Elliot Noss emphasized that the company delivered these results in the context of four consecutive years of revenue growth. He highlighted the firm's ongoing cost optimization and deleveraging efforts, including a $2.5-million payment toward syndicated debt in the quarter. Noss noted that macroeconomic conditions, particularly the rise of AI, will increasingly shape business decisions and stressed the importance of thoughtful execution.
Dave Woroch, CEO of Tucows Domains, noted the resilience of the domain business, despite some churn, and pointed to growth opportunities ahead, including progress in the company's registry platform partnership with India's .in operator, NIXI and the expected expansion in generic top-level domains slated for 2026.
Wavelo CEO Justin Reilly described the first quarter as the business unit's best quarter to date. He attributed gains to improved customer alignment and strong execution by sales and engineering teams. Reilly also spoke extensively about the growing role of AI, highlighting its productivity benefits across operations, sales and engineering. He framed AI as a disruptive but empowering force for Wavelo's future competitiveness.
Revenue and profit growth were primarily driven by increased subscriber counts and higher ARPU in the Ting segment, stronger contributions from high-margin services in Domains, and an uptick in Wavelo's contracted platform deals. Operating efficiencies from the 2024 Ting restructuring initiative also contributed materially to EBITDA expansion across the board.
Cost discipline was evident across functional areas — sales and marketing expenses fell 41% year over year, and general and administrative expenses decreased 6%, helping offset higher network depreciation and financing expenses. Despite positive trends, net cash from operating activities was negative $11.3 million, nearly double the outflow of the prior-year quarter, reflecting investment in growth and the timing of receivables and contract liabilities.
Management commentary suggested expectations for adjusted EBITDA growth to moderate to single-digit levels in subsequent quarters. The company's focus remains on expanding margins, driving revenues, and maintaining strict cost controls.
In the first quarter, the company confirmed the wind-down of the Ting Build Scorecard following a shift away from market construction, signaling a strategic pivot toward operational efficiency and existing network optimization. Additionally, the company highlighted ongoing progress with NIXI in India, signaling forward movement in expanding its registry footprint.
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