# Tucows Delivers Strong Results in Q3 And Reiterates Full-Year Financial Guidance
**TORONTO, November 6, 2025** – Tucows Inc. (NASDAQ:TCX, TSX:TC), a global internet services leader,
today reported its unaudited financial results for the third quarter ended September 30, 2025. All
figures are in U.S. dollars.
“We’re seeing the operating leverage we’ve been working toward,” said Ivan Ivanov, CFO of Tucows.
“Broad‑based topline growth, strong economics at Wavelo, continued margin expansion from Domains,
and a more capital‑efficient Ting combined to deliver a 53% increase in Adjusted EBITDA on 9%
gross‑profit growth. This puts our year-to-date consolidated Adjusted EBITDA of $39.5 million slightly
ahead of progress towards our 2025 guidance. The business is becoming simpler and healthier, and
we have a clear line of sight to further improvement with initiatives underway to deliver value for
Tucows’ shareholders.”
## Financial Results
Consolidated net revenue for the third quarter of 2025 increased 6.8% to $98.6 million from $92.3
million for the third quarter of 2024, driven by revenue gains from all three Tucows businesses.
Gross profit for the third quarter of 2025 increased 9% to $24.2 million from $22.2 million from the third
quarter of 2024. The increase in gross profit was driven by strong year-over-year margin gains from
Wavelo and Tucows Domains.
Net loss for the third quarter was $23.0 million ($2.08 per share), compared with a net loss of $22.3
million ($2.03 per share) in Q3 2024. Adjusted net loss¹ was $15.8 million (adjusted EPS¹ of $(1.42)) in
Q3 2025 versus $19.8 million (adjusted EPS¹ of $(1.81)) in Q3 2024.
Adjusted EBITDA¹ for the third quarter of 2025 grew 53% to $13.3 million from $8.7 million for the third
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 cost discipline and AI-driven efficiencies across the Company.
We ended the third quarter of 2025 with cash and cash equivalents, and restricted cash and restricted
cash equivalents of $70.8 million. This compares with $68.6 million at the end of the second quarter of
2025 and $91.1 million at the end of the third quarter of 2024.
---
**Summary Financial Results**
**(In Thousands of US Dollars, except Per Share data)**
| | 3 Months ended September 30 | | | 9 Months ended September 30 | | |
|---------------------------|------------------------------|----------|----------|------------------------------|----------|----------|
| | 2025(unaudited) | 2024(unaudited)| % Change(unaudited) | 2025(unaudited) | 2024(unaudited)| % Change(unaudited) |
| Net Revenues | 98,558 | 92,297 | 7% | 291,630 | 269,177 | 8% |
| Gross Profit | 24,181 | 22,188 | 9% | 69,822 | 61,314 | 14% |
| Income Earned on Sale of Transferred Assets, net | 3,020 | 3,853 | (22)% | 8,873 | 10,831 | (18)% |
| Net Income (Loss) | (23,019) | (22,297) | (3)% | (53,789) | (67,385) | 20% |
| Adjusted Net Income (Loss)¹ | (15,788) | (19,827) | 20% | (46,979) | (61,042) | 23% |
| Basic earnings (Loss) per common share | (2.08) | (2.03) | (2)% | (4.87) | (6.15) | 21% |
| Adjusted Basic earnings (Loss) per common share¹ | (1.42) | (1.81) | 21% | (4.25) | (5.57) | 24% |
| Adjusted EBITDA¹ | 13,269 | 8,688 | 53% | 39,517 | 22,068 | 79% |
| Net cash provided by (used in) operating activities | 1,534 | (4,564) | 134% | (3,151) | (14,950) | 79% |
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 Profit2 | | Adj. EBITDA1 | |
|---------------------------|-----------------------------|----------|---------------|----------|------------------|----------|
| | 3 Months ended September 30 | | 3 Months ended September 30 | | 3 Months ended September 30 | |
| | 2025(unaudited) | 2024(unaudited) | 2025(unaudited) | 2024(unaudited) | 2025(unaudited) | 2024(unaudited) |
| DOMAINS AND WAVELO SERVICES | | | | | | |
| Tucows Domain Services: | | | | | | |
| Wholesale | | | | | | |
| Domain Services | 51,888 | 49,871 | | | | |
| Value Added Services | 6,107 | 5,175 | | | | |
| Total Wholesale | 57,995 | 55,046 | | | | |
| Retail | 9,842 | 9,669 | | | | |
| Total Tucows Domain Services | 67,837 | 64,715 | 19,105 | 17,843 | 12,097 | 11,529 |
| Wavelo Services: | | | | | | |
| Platform Services | 11,856 | 10,075 | | | | |
| Other Professional Services | 0 | 7 | | | | |
| Total Wavelo Platform Services | 11,856 | 10,082 | 7,674 | 6,150 | 4,285 | 3,429 |
| Total Domains and Wavelo Services | 79,693 | 74,797 | 26,779 | 23,993 | 16,382 | 14,958 |
| TING INTERNET SERVICES | | | | | | |
| Fiber Internet Services | 16,976 | 15,310 | 339 | (578) | (882) | (5,070) |
| CORPORATE & OTHER | | | | | | |
| Mobile Services and Eliminations | 1,889 | 2,190 | (2,937) | (1,227) | (2,231) | (1,200) |
| Total | 98,558 | 92,297 | 24,181 | 22,188 | 13,269 | 8,688 |
1
Non-GAAP financial measures are described below and reconciled to GAAP measures in the accompanying tables.
2
Beginning in the third quarter of 2025, the Company revised its presentation of segment gross profit to reflect amounts net
of network expenses. This change provides a more consistent view of segment-level profitability and aligns with how
management evaluates operating performance. The revision did not impact gross profit, Adjusted EBITDA or revenue.
---
## 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 September 30 | | 9 Months ended September 30 | |
|---------------------------|------------------------------|----------|------------------------------|----------|
| | 2025(unaudited) | 2024(unaudited) | 2025(unaudited) | 2024(unaudited) |
| Net income(Loss) for the period | (23,019) | (22,297) | (53,789) | (67,385) |
| Less: | | | | |
| Provision(recovery)for income taxes | 2,456 | 3,074 | 6,887 | 6,068 |
| Depreciation of property and equipment | 10,405 | 9,526 | 31,404 | 29,686 |
| Impairment of property and equipment | 10,885 | 852 | 11,524 | 905 |
| Loss(gain) on disposition of property and equipment | (3,965)| - | (5,753) | - |
| Amortization of intangible assets | 1,072 | 1,209 | 3,393 | 4,089 |
| Interest expense, net | 13,901 | 13,095 | 41,135 | 37,527 |
| Stock-based compensation | 1,387 | 1,808 | 4,278 | 5,383 |
| Unrealized loss(gain) on foreign exchange revaluation of foreign denominated monetary assets and liabilities | (164)| (197) | (601) | 357 |
| Acquisition and transition costs* | 311 | 1,618 | 1,039 | 5,438 |
| Adjusted EBITDA | 13,269 | 8,688 | 39,517 | 22,068 |
* 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
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):
| | 3 Months ended September 30 | | 9 Months ended September 30 | |
|---------------------------|------------------------------|----------|------------------------------|----------|
| | 2025(unaudited) | 2024(unaudited) | 2025(unaudited) | 2024(unaudited) |
| Net Income (Loss) for the period | (23,019) | (22,297) | (53,789) | (67,385) |
| Less: | | | | |
| Acquisition and transition costs* | 311 | 1,618 | 1,039 | 5,438 |
| Impairment of property and equipment | 10,885 | 852 | 11,524 | 905 |
| Loss(gain) on disposition of property and equipment | (3,965)| 0 | (5,753) | 0 |
| Adjusted Net Income (Loss)1 for the period | (15,788) | (19,827) | (46,979) | (61,042) |
| Adjusted Basic Earnings(Loss) Per Common Share1 | (1.42) | (1.81) | (4.25) | (5.57) |
## Management Commentary
Concurrent with the dissemination of its quarterly financial results news release at 5:05 p.m. ET on
Thursday, November 6, 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
http://www.tucows.com/investors/financials.
Following management’s prepared commentary, for the subsequent seven days, until Thursday,
November 13, 2025, shareholders, analysts and prospective investors can submit questions to Tucows’
management at ir@tucows.com. Management will post responses to questions in an audio recording
and transcript to the Company’s website at http://www.tucows.com/investors/financials, on Tuesday,
November 25, 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.