Momentum Continues in Q2 as Tucows Reports Growth in Revenue and Profitability

Executive Summary

• Tucows Inc. reported unaudited financial results for the second quarter ended June 30, 2025, showing revenue growth of 10.1% year-over-year to $98.5 million.
• The company reported a net loss of $15.6 million ($1.41 per share), an improvement from the $18.6 million net loss in Q2 2024, driven by improved operational efficiency and revenue momentum.
• Adjusted EBITDA surged 37% to $12.6 million, outperforming the prior year's $9.2 million, fueled by margin expansion in Wavelo and Tucows Domains, and Ting’s pivot to a capital-light model.

Key Details

• Consolidated Net Revenue: Increased 10.1% to $98.5 million (Q2 2025) from $89.4 million (Q2 2024).
• Gross Profit: Increased 6.2% to $22.1 million (Q2 2025) from $20.8 million (Q2 2024).
• Net Loss: Decreased to $15.6 million ($1.41 loss per share) from $18.6 million ($1.70 loss per share) in Q2 2024.
• Adjusted Net Income (Loss): $(16.3) million ($(1.47) per share) in Q2 2025, compared to $(17.8) million ($(1.63) per share) in Q2 2024.
• Adjusted EBITDA: Grew 37% to $12.6 million in Q2 2025 from $9.2 million in Q2 2024.
• Cash Position: Ended Q2 2025 with $68.6 million in cash and cash equivalents/restricted cash, up from $55.0 million at the end of Q1 2025 and $52.2 million at the end of Q2 2024.
• Segment Performance (Q2 2025 vs Q2 2024):
  • Ting Internet Services (Fiber): Revenue $16.4 million (up from $14.6 million); Gross Profit $7.7 million (down from $9.8 million); Adjusted EBITDA $(3.7) million (up from $(6.4) million). Note: Q2 2025 gross margin includes a one-time, immaterial, non-cash increase in lease expense of $2.7 million.
  • Wavelo Platform Services: Revenue $12.7 million (up from $10.5 million); Gross Profit $12.6 million (up from $10.2 million); Adjusted EBITDA $5.4 million (up from $3.9 million).
  • Tucows Domain Services: Revenue $67.6 million (up from $62.4 million); Gross Profit $21.6 million (up from $18.9 million); Adjusted EBITDA $12.5 million (up from $11.2 million).
  • Corporate: Revenue $1.8 million (down from $2.0 million); Gross Profit $(2.4) million (down from $(0.8) million); Adjusted EBITDA $(1.7) million (down from $0.5 million).
• One-Time Items: Q2 2025 Net Income 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.
• Six-Month Period (Jan-Jun 2025):
  • Net Revenues: $193.1 million (up 9% from $176.9 million).
  • Gross Profit: $45.6 million (up 17% from $39.1 million).
  • Net Loss: $(30.8) million (improved from $(45.1) million).
  • Adjusted EBITDA: $26.2 million (up 96% from $13.4 million).

Notable Quotes

• "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."