Tucows Reports Strong Fiscal 2025 Results; Beats Guidance

Executive Summary

• Tucows Inc. reported unaudited financial results for the fourth quarter and full year ended December 31, 2025, beating its 2025 guidance.
• Full-year revenue increased 8% to $390.3 million, while gross profit rose 13% to $93.9 million, driven by improved economics at Wavelo, margin expansion in Domains, and reduced network expenses at Ting.
• The company generated $50.6 million in Adjusted EBITDA for the full year, a 45% increase year-over-year, exceeding guidance by $3.6 million.

Key Details

• Full Year 2025 Financials:
  • Net Revenues: $390.3 million (up 8% from $362.3 million in 2024).
  • Gross Profit: $93.9 million (up 13% from $83.0 million in 2024).
  • Net Loss: $(75.8) million (improved from $(109.9) million in 2024).
  • Adjusted Net Loss: $(66.2) million (improved from $(76.8) million in 2024).
  • Adjusted Basic EPS: $(5.98) (improved from $(7.00) in 2024).
  • Adjusted EBITDA: $50.6 million (up 45% from $34.9 million in 2024).
  • Net Cash Used in Operating Activities: $(5.8) million (improved from $(19.7) million in 2024).
• Fourth Quarter 2025 Financials:
  • Net Revenues: $98.7 million (up 6.0% from $93.1 million in Q4 2024).
  • Gross Profit: $24.1 million (up 14% from $21.2 million in Q4 2024).
  • Net Loss: $(22.0) million or $(1.98) per share (improved from $(42.5) million or $(3.86) per share in Q4 2024).
  • Adjusted Net Loss: $(19.2) million or $(1.73) per share (vs $(15.8) million or $(1.43) per share in Q4 2024).
  • Adjusted EBITDA: $11.1 million (down 14% from $12.8 million in Q4 2024, primarily due to legacy mobile business obligations).
• Segment Performance (Q4 2025):
  • Domains and Wavelo Services: Revenue of $78.1 million (up from $75.6 million); Gross Profit of $25.7 million (up from $24.6 million); Adjusted EBITDA of $15.9 million (up from $15.3 million).
    • Tucows Domain Services Revenue: $66.4 million; Gross Profit: $19.2 million; Adjusted EBITDA: $12.5 million.
    • Wavelo Services Revenue: $11.7 million; Gross Profit: $6.6 million; Adjusted EBITDA: $3.4 million.
  • Ting Internet Services: Revenue of $18.5 million (up from $15.7 million); Gross Profit of $1.6 million (vs $(1.2) million in Q4 2024); Adjusted EBITDA of $(0.9) million (vs $(1.5) million in Q4 2024).
  • Corporate & Other: Revenue of $2.0 million; Gross Loss of $(3.2) million; Adjusted EBITDA loss of $(3.9) million.
• Balance Sheet:
  • Cash and cash equivalents, and restricted cash: $64.2 million at end of Q4 2025 (down from $70.8 million at end of Q3 2025 and $73.2 million at end of Q4 2024).
• Operational Updates:
  • CEO David Woroch cited "strong execution" and "improved profitability across the company."
  • Revenue growth supported by contributions from all three businesses.
  • Gross profit growth driven by improved economics at Wavelo, continued margin expansion in Domains, and reduced network expenses at Ting.
  • Company remains focused on operational and capital efficiency initiatives and the ongoing Ting strategic process.
• Non-GAAP Reconciliations:
  • Adjusted EBITDA excludes depreciation, impairment, amortization, interest, stock-based compensation, and acquisition/transition costs.
  • Adjusted Net Income excludes acquisition/transition costs, impairment of property/expenses, and loss on debt extinguishment.