Latest news with #TucowsInc
San Francisco Chronicle
07-08-2025
- Business
- San Francisco Chronicle
Tucows: Q2 Earnings Snapshot
TORONTO (AP) — TORONTO (AP) — Tucows Inc. (TCX) on Thursday reported a loss of $15.6 million in its second quarter. The Toronto-based company said it had a loss of $1.41 per share. _____
Yahoo
29-05-2025
- Business
- Yahoo
Tucows Inc (TCX) Q1 2025 Earnings Call Highlights: Strategic Shift to Capital-Light Model and ...
Release Date: May 27, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Tucows Inc (NASDAQ:TCX) is focusing on becoming a capital light, asset light ISP, which could improve operational efficiency and reduce debt. The company has a productive 10-year relationship with the City of Westminster, Maryland, showcasing successful partnerships. Tucows Inc (NASDAQ:TCX) has identified a white space opportunity in the market for capital light ISPs, which could lead to growth. The company has best-in-class penetration, ARPU, and churn metrics, indicating strong operational performance. Tucows Inc (NASDAQ:TCX) is generating free cash flow of between $5 to $6 million per quarter, providing financial flexibility. Concerns were raised about Ting's balance sheet, which is considered unacceptable and potentially unsustainable. The shift to a capital light model results in lower net operating margins, from around 70% to 25-30%. The company faces challenges in normalizing or benchmarking its metrics against private equity firms. There is uncertainty and elevated costs associated with capital and construction projects. The current quarter experienced slightly elevated levels of balance sheet due to a seasonal receivable build. Warning! GuruFocus has detected 5 Warning Signs with TCX. Q: What is Tucows' strategy for Ting's balance sheet and future outlook? A: Eliot Noss, President and CEO, explained that the best path forward is leveraging their 130,000 owned addresses to reduce debt and transition to a capital-light, asset-light ISP model. This involves separating the ISP operations from the physical network infrastructure, a strategy pursued by major private equity firms. The goal is to improve operational efficiency and financial performance by shifting network maintenance costs to Netcos while focusing on customer relationships. Q: How does the capital-light ISP model affect financial margins? A: Eliot Noss noted that in a capital-light model, net operating margins shift from around 70% in a fully penetrated, traditionally capitalized network to 25-30%. This model offers a different risk-reward balance, with the ISP bearing the risk of penetration and ARPU but also benefiting from outperforming these metrics. Q: What are the key metrics for Tucows' domains growth initiatives? A: Dave Warra, CEO of Tucows Domains, stated that for storefronts, they focus on the number of orders processed and revenue and margin per order. For cloud hosting, the critical metric is the number of websites added. Both areas are currently modest in scale, but progress will be shared as they become more material. Q: How does Tucows plan to manage its free cash flow and stock repurchase decisions? A: Eliot Noss highlighted that a typical quarter in 2025 is expected to generate $5-6 million in free cash flow. The decision to repurchase stock is guided by three considerations: stock value, available cash, and any ongoing discussions that might preclude repurchases. There is no trade-off between servicing debt and repurchasing stock. Q: What is the significance of Tucows' reseller channel? A: Dave Warra emphasized the value of the reseller channel for broad distribution and low customer acquisition costs. However, the channel's success is measured by the pace of adoption, which is crucial for expanding their market reach. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
14-05-2025
- Business
- Yahoo
Tucows Reports Strong Y/Y Earnings & Revenue Increases in Q1
Shares of Tucows Inc. TCX have gained 0.3% since reporting results for the first quarter of 2025. This compares to the S&P 500 index's 3.1% growth over the same time frame. Over the past month, the stock has gained 8.9% compared with the S&P 500's 8.1% rally. 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. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tucows Inc. (TCX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Cision Canada
08-05-2025
- Business
- Cision Canada
Tucows Delivers Strong Q1 with Gains in Revenue, Gross Profit and Adjusted EBITDA
TORONTO, May 8, 2025 /CNW/ - Tucows Inc. (NASDAQ: TCX) (TSX: TC), a global internet services leader, today reported its unaudited financial results for the first quarter ended March 31, 2025. All figures are in U.S. dollars. "On the heels of four years of strong revenue growth, we are very pleased with our first quarter results," said Elliot Noss, President and CEO of Tucows. "All three of our businesses delivered year-over-year gains, with an 8% increase in consolidated revenue, a 29% increase in gross profit, and a more than threefold improvement in Adjusted EBITDA compared to Q1 last year. Importantly, we achieved a substantial year-over-year reduction in net loss through strong revenue growth and cost optimization initiatives. We also continued to deleverage the business with payments on our syndicated debt. The progress we are making across the organization positions us well for continued improvement in 2025 and beyond." Financial Results Consolidated net revenue for the first quarter of 2025 increased 8.2% to $94.6 million from $87.5 million for the first quarter of 2024, driven by strong year-over-year revenue gains from all three Tucows businesses. Gross profit for the first quarter of 2025 increased 28.5% to $23.5 million from $18.3 million from the first quarter of 2024. The increase in gross profit was driven by strong year-over-year gains from all three Tucows businesses. Net loss for the first quarter of 2025 narrowed significantly to $15.1 million, or a loss of $1.37 per share, compared to a net loss of $26.5 million, or a loss of $2.42 per share, for the first quarter of 2024, reflecting improved operational efficiency and revenue momentum. Adjusted net income 1 (loss) and Adjusted EPS 1 in Q1 2025 are ($14.9 million) and ($1.35) per share compared to Q1 2024 Adjusted net income 1 (loss) of ($23.4 million) and Adjusted EPS 1 of ($2.14) per share. Adjusted EBITDA 1 for the first quarter of 2025 climbed 225% to $13.7 million from $4.2 million for the first quarter of 2024, highlighting the strength of our operating leverage. The year-over-year increase was driven by growth of revenues from all three businesses, margin gains, and company-wide cost-reduction efforts, including the 2024 Ting capital efficiency plan. We ended the first quarter of 2025 with cash and cash equivalents, and restricted cash and restricted cash equivalents of $55.0 million, while continuing to reduce debt and invest in growth. This compares with $73.2 million at the end of the fourth quarter of 2024 and $79.4 million at the end of the first quarter of 2024. 1 Non-GAAP financial measures are described below and reconciled to GAAP measures in the accompanying tables. Summary of Revenues, Gross Profit and Adjusted EBITDA (In Thousands of US Dollars) Revenue Gross Profit Adj. EBITDA¹ 3 Months ended March 31 3 Months ended March 31 3 Months ended March 31 2025 (unaudited) 2024 (unaudited) 2025 (unaudited) 2024 (unaudited) 2025 (unaudited) 2024 (unaudited) Ting Internet Services: Fiber Internet Services 16,315 14,102 10,478 8,742 (854) (9,537) Wavelo Platform Services: Platform Services 11,396 9,365 11,259 9,033 4,449 Other Professional Services 0 25 0 6 Total Wavelo Platform Services 11,396 9,390 11,259 9,039 2,787 Tucows Domain Services: Wholesale Domain Services 50,004 48,151 9,623 9,488 Value Added Services 5,903 4,703 5,423 4,156 Total Wholesale 55,907 52,854 15,046 13,644 Retail 9,348 9,028 5,169 4,892 Total Tucows Domain Services 65,255 61,882 20,215 18,536 11,540 10,011 Corporate: Mobile Services and Eliminations 1,643 2,083 (2,504) (654) (1,464) 941 Network Expenses: Network, other costs n/a n/a (4,971) (7,064) n/a n/a Network, depreciation of property and equipment n/a n/a (10,376) (9,865) n/a n/a Network, amortization of intangible assets n/a n/a (366) (365) n/a n/a Network, impairment n/a n/a (204) (53) n/a n/a Total Network Expenses n/a n/a (15,917) (17,347) n/a n/a Total 94,609 87,457 23,531 18,316 13,671 4,202 1 Non-GAAP financial measures are described below and reconciled to GAAP measures in the accompanying tables. Notes: 1. Tucows reports all financial information required in conformity with United States generally accepted accounting principles (GAAP). Along with this information, to assist financial statement users in an assessment of our historical performance, the Company discloses non-GAAP financial measures in press releases and on investor conference calls and related events, as the Company believes that the non-GAAP information enhances investors' overall understanding of our financial performance, and should be read in addition to, rather than instead of, the financial statements prepared in accordance with GAAP. Non-GAAP financial measures do not reflect a comprehensive system of accounting and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies and/or analysts and may differ from period to period. The Company endeavors to compensate for these limitations by providing the relevant disclosure of the items excluded in the calculation of Adjusted EBITDA to net income based on U.S. GAAP; Adjusted net income to GAAP net income; and adjusted basic earnings per share to GAAP basic earnings per share, which should be considered when evaluating the Company's results. Tucows strongly encourages investors to review its financial information in its entirety and not to rely on a single financial measure. Adjusted EBITDA The Company believes that the provision of this supplemental non-GAAP measure allows investors to evaluate the operational and financial performance of the Company's core business using similar evaluation measures to those used by management. The Company uses Adjusted EBITDA to measure its performance and prepare its budgets. Since Adjusted EBITDA is a non-GAAP financial performance measure, the Company's calculation of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies; and should not be considered in isolation, as a substitute for, or superior to measures of financial performance prepared in accordance with GAAP. Because Adjusted EBITDA is calculated before certain recurring cash charges, including interest expense and taxes, and is not adjusted for capital expenditures or other recurring cash requirements of the business, it should not be considered as a liquidity measure. The Company's Adjusted EBITDA definition excludes depreciation, impairment and loss on disposition of property and equipment, amortization of intangible assets, income tax provision, interest expense (net), stock-based compensation, asset impairment, gains and losses from unrealized foreign currency transactions, loss on debt extinguishment and costs that are not indicative of on-going performance (profitability), including acquisition and transition costs. Gains and losses from unrealized foreign currency transactions removes the unrealized effect of the change in the mark-to-market values on outstanding unhedged foreign currency contracts, as well as the unrealized effect from the translation of monetary accounts denominated in non-U.S. dollars to U.S. dollars. The following table reconciles net income (loss) to Adjusted EBITDA (in thousands of US dollars): 3 Months ended March 31 2025 (unaudited) 2024 (unaudited) Net income (Loss) for the period (15,133) (26,484) Less: Provision (recovery) for income taxes 2,166 1,774 Depreciation of property and equipment 10,460 9,987 Impairment of property and equipment 204 53 Amortization of intangible assets 1,205 1,679 Interest expense, net 13,613 11,879 Stock-based compensation 1,505 1,873 Unrealized loss (gain) on foreign exchange revaluation of foreign denominated monetary assets and liabilities (364) 390 Acquisition and transition costs* 15 3,051 Adjusted EBITDA 13,671 4,202 * Acquisition and transition costs represent transaction-related expenses and transitional expenses. Expenses include severance or transitional costs associated with department, operational or overall company restructuring efforts, including geographic alignments. Adjusted Net Income and Adjusted Basic Earnings Per Common Share (Adjusted EPS) The Company believes that the provision of this supplemental non-GAAP measure allows investors to best evaluate our operating results and understand the operating trends of our core business without the effect of acquisition and transition costs, impairment expenses and losses on extinguishment of debt. Acquisition and transition costs represent transaction-related expenses and transitional expenses. Expenses include severance or transitional costs associated with department, operational or overall company restructuring efforts, including geographic alignments. Since adjusted net income and adjusted EPS are non-GAAP financial performance measures, the Company's calculation of adjusted net income and adjusted EPS may not be comparable to other similarly titled measures of other companies; and should not be considered in isolation, as a substitute for, or superior to measures of financial performance prepared in accordance with GAAP. The Company's adjusted net income and adjusted EPS definitions exclude from the calculation of reported GAAP net income and GAAP EPS, the effect of the following items: impairment of property and expenses, acquisition and transition costs (including restructuring charges) and loss on debt extinguishment. The following table reconciles adjusted net income and adjusted EPS to GAAP net income (In thousands of US dollars, except Per Share data): * Acquisition and transition costs represent transaction-related expenses and transitional expenses. Expenses include severance or transitional costs associated with department, operational or overall company restructuring efforts, including geographic alignments. Management Commentary Concurrent with the dissemination of its quarterly financial results news release at 5:05 p.m. ET on Thursday, May 8, 2025, management's pre-recorded audio commentary (and transcript), discussing the quarter and outlook for the Company will be posted to the Tucows website at Following management's prepared commentary, for the subsequent seven days, until Thursday, May 15, 2025, shareholders, analysts and prospective investors can submit questions to Tucows' management at [email protected]. Management will post responses to questions in an audio recording and transcript to the Company's website at on Tuesday, May 27, 2025, at approximately 5 p.m. ET. All questions will receive a response, however, questions of a more specific nature may be responded to directly. About Tucows Tucows helps connect more people to the benefit of internet access through communications service technology, domain services, and fiber-optic internet infrastructure. Ting ( delivers fixed fiber Internet access with outstanding customer support. Wavelo ( is a telecommunications software suite for service providers that simplifies the management of mobile and internet network access; provisioning, billing and subscription; developer tools; and more. Tucows Domains ( manages approximately 24 million domain names and millions of value-added services through a global reseller network of over 35,000 web hosts and ISPs. Hover ( makes it easy for individuals and small businesses to manage their domain names and email addresses. More information can be found on Tucows' corporate website ( Tucows, Ting, Wavelo, and Hover are registered trademarks of Tucows Inc. or its subsidiaries. This release includes forward-looking statements as that term is defined in the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding our expectations regarding our future financial results and, including, without limitation, our expectations regarding our ability to realize synergies from the Enom acquisition and our expectation for growth of Ting Internet. These statements are based on management's current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Information about other potential factors that could affect Tucows' business, results of operations and financial condition is included in the Risk Factors sections of Tucows' filings with the Securities and Exchange Commission. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. All forward-looking statements are based on information available to Tucows as of the date they are made. Tucows assumes no obligation to update any forward-looking statements, except as may be required by law.
Yahoo
24-04-2025
- Business
- Yahoo
Tucows Announces Timing for Q1 2025 Financial Results News Release and Management Commentary
TORONTO, April 24, 2025 /CNW/ - Tucows Inc. (NASDAQ: TCX) (TSX: TC) today announced that it will report its financial results for the first quarter ended March 31, 2025, via news release on Thursday, May 8, 2025 at 5:05 p.m. ET. Concurrent with the dissemination of its quarterly financial results news release at 5:05 p.m. ET on Thursday, May 8, 2025, management's pre-recorded audio commentary and transcript discussing the quarter and outlook for the Company will be posted to the Tucows website at Following management's prepared commentary, for the subsequent seven days, until Thursday, May 15, 2025, shareholders, analysts and prospective investors can submit questions to Tucows' management at ir@ Management will post responses to questions in an audio recording and transcript to the Company's website at on Tuesday, May 27, 2025, at approximately 5 p.m. ET. All questions will receive a response, however, questions of a more specific nature may be responded to directly. About TucowsTucows helps connect more people to the benefit of internet access through communications service technology, domain services, and fiber-optic internet infrastructure. Ting ( delivers fixed fiber Internet access with outstanding customer support. Wavelo ( is a telecommunications software suite for service providers that simplifies the management of mobile and internet network access; provisioning, billing and subscription; developer tools; and more. Tucows Domains ( manages approximately 25 million domain names and millions of value-added services through a global reseller network of over 35,000 web hosts and ISPs. Hover ( makes it easy for individuals and small businesses to manage their domain names and email addresses. More information can be found on Tucows' corporate website ( Tucows, Ting, Wavelo, and Hover are registered trademarks of Tucows Inc. or its subsidiaries. View original content to download multimedia: SOURCE Tucows Inc. View original content to download multimedia: Sign in to access your portfolio
