2026-Q1-TCX-results-investor-deck
Q1 2026 Investor Presentation
This presentation may contain forward-looking statements, relating to the Companyʼs operations or to the environment in which it operates, which are based on Tucows Inc.ʼs operations, estimates, forecasts and projections. These statements are not guarantees of future performance and are subject to important risks, uncertainties and assumptions concerning future conditions that may ultimately prove to be inaccurate or differ materially from actual future events or results. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. Consequently, investors should not place undue reliance on these forward-looking statements, which are based on Tucows Inc.ʼs current expectations, estimates, projections, beliefs and assumptions. These forward-looking statements speak only as of the date of this presentation and are based upon the information available to Tucows Inc. at this time. Tucows Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
| Section | Subject | Slide Reference |
|---|---|---|
| 01 | Tucows Business | 4 |
| 02 | Tucows Domains | 10 |
| 03 | Wavelo | 14 |
| 04 | Ting | 18 |
| 05 | Quarterly Performance | 21 |
| 06 | Tucows as an Investment | 25 |
| 07 | Investor Resources | 27 |
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Portfolio of tech businesses Balancing cash generation with long-term growth
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Corporate parent allocating capital and providing shared services to three operating segments
DOMAIN SERVICES
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The leading global provider of wholesale domain registration and related services
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PLATFORM SERVICES
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Providing event-driven, cloud-based software thatʼs replacing outdated systems behind global telecommunications
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FIBER INTERNET SERVICES
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Delivering subscribed services over owned and leased fiber-to-the-premise networks
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Portfolio of tech businesses generating consistent revenue and margin from high-volume subscription services, while carefully investing in growth
DOMAIN SERVICES
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Reliable cash flow + dominant position in wholesale domains market
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PLATFORM SERVICES
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A high margin, scalable growth business within the Tucows portfolio.
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FIBER INTERNET SERVICES
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Long-term growth potential from next generation telecom services
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Adj. EBITDA 1,2 (US$ millions)
Revenue (US$ millions)
1,2 Adj. EBITDA (US$ millions)
NOTE: Revenue for 2020 and 2021 reflects the impact of change in Mobile business model to Wavelo in Q3 2020.
Adjusted EBITDA excludes depreciation, amortization of intangible assets, income tax provision, interest expense, accretion of contingent consideration, stock-based compensation, asset impairment, gains and losses from unrealized foreign currency transactions and costs that are not indicative of ongoing performance (profitability), including acquisition and transition costs.
Adjusted EBITDA for 2017 reflects the impact of the purchase price accounting adjustment related to the fair value write down of deferred revenue from the Enom acquisition, which lowered Adjusted EBITDA by $7.8 million. Adjusted EBITDA for 2019 reflects the impact of the purchase price accounting adjustment related to the fair value write down of deferred revenue from the Ascio acquisition, which lowered Adjusted EBITDA by $2.5 million.
Tucows | Historical Adjusted EBITDA and Unlevered Free Cash Flow
Unlevered FCF (US $ millions)
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- Share Price NASDAQ: TCX US$15.06 | TSX: TC CA$20.55
Shares out: 11.1m |
Market cap: US$167.7m
Shares out: 11.1m
Market cap: US$167.7m
Tucows Excluding Ting
US$410.8m Debt
Debt Canadian Bank Syndicate Loan: US$189.6m Maturity: Sept 2027
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$$ \mathsf{T i n g^{2}} $$
Unrestricted Cash: US$27.4m
US$410.8m Preferred Shares: US$137.0m Maturity: Aug 2028
ABS Notes: US$238.5m Maturity: Apr 2053
US$63.0m Maturity: Aug 2054
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Unrestricted Cash $16.9m
Restricted Cash US$17.7m
At May 6/2026
At March 31/2026
Restricted cash, secured notes and reserve funds
Facilities sit inside ring-fenced, special-purpose structures that are non-recourse to Tucows Inc.
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Reliable cash flow + capital light with dominant position in wholesale domains market
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Leading global provider of wholesale and retail domain registration and related services
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Highly efficient operation
Reliable cash flow
Global network of resellers
Renewal rates above industry average
World’s largest wholesale domain registrar
World’s second-largest domain registrar
21.5 million Domains under management
1.6 million Domain transactions every month
Global footprint in 195 countries
Global network of 32,000 reseller customers
Services offered today
domain registration registry administration SSL certificates email
Services being introduced
hosting
Domain Registration
Hosting
billing & provisioning Web3 and identity
Margin growth
Delivering a comprehensive and efficient platform for the
full domains ecosystem
Launching new Value Added Services into reseller channel
Expanding Registry services through global partnerships
A high margin, scalable growth business within the Tucows portfolio
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Offering event-driven, modular, cloud-based software that’s replacing the outdated systems behind global telecommunications
Operating in a large and underserved space at a critical time for the global telecommunications industry – where customers are aggressively seeking better value.
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Leveraging:
Global race to 5G
Fiber proliferation
Fixed and mobile convergence
Competition for customers
The human alternative to outdated telecom billing and provisioning systems
Flexible, cloud-based, event-driven software simplifies management of mobile and internet network access, enabling providers to:
Better utilize all owned and leased access
Focus on customer experience
Scale businesses faster
Customizable and a la carte services for providers:
Subscription and billing management
Network orchestration and provisioning
Individual developer tools and more
Wavelo | the opportunity
Macro trends
$2.5T $550B $130B
Global telecom services Telecom managed services Global OSS/BSS spending revenue by 2028
Tucows Inc. Q1 2026 Investor Update
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Long-term growth potential from next generation telecom services
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Capitalizing on the U.S. coax-to-fiber transition by delivering subscribed services over owned and leased fiber-to-the-premise networks
“A billion fiber optic connections to the Internet are coming online in just a few years. A large majority of them will be in Asia, primarily led by China. These connections have already proven to be future-proof, capable of reaching not just gigabit speeds, but multi-gigabit speeds.
Fiber is not only faster; it’s also cheaper long-term. No other connection even comes close by comparison. The future of the Internet is going to be fiber.”
-Electronic Frontier Foundation, Dec 2020
US telecom infrastructure is making a generational transition from copper and coax to fiber
Over 40% of US households do not have access to fiber.
Fiber is the only medium purpose-built for transmitting massive amounts of data securely.
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Ting has established US footprints and is a partner ISP for other US builders
Ting has a highly-ranked brand and low churn
Quarterly Performance
Summary Financial Results
(In thousands of U.S. Dollars, except per share data)
| 3 Months ended March 31 | |||
|---|---|---|---|
| 2026(unaudited) | 2025(unaudited) | % Change(unaudited) | |
| Net Revenues | 96,657 | 94,609 | 2% |
| Gross Profit | 24,130 | 23,531 | 3% |
| Income Earned on Sale of Transferred Assets, net | 2,516 | 2,741 | (8)% |
| Net Income(Loss) | (18,107) | (15,133) | (20)% |
| Adjusted Net Income(Loss)1 | (16,852) | (14,914) | (13)% |
| Basic earnings(Loss)per common share | (1.63) | (1.37) | (19)% |
| Adjusted Basic earnings(Loss)per common share1 | (1.51) | (1.35) | (12)% |
| Adjusted EBITDA1 | 11,667 | 13,671 | (15)% |
| Net cash provided by(used in)operating activities | 3,524 | (11,251) | 131% |
- Non-GAAP financial measures are described and reconciled to GAAP measures in the company’s quarterly earnings press release.
Adjustments for impacts on Net Income (Loss) and EPS (Loss)
(Amounts in thousands, except per share numbers)
| 3 Months ended March 31 | ||
|---|---|---|
| 2026(unaudited) | 2025(unaudited) | |
| Net Income(Loss) for the period | (18,107) | (15,133) |
| Less: | ||
| Acquisition and transition costs* | 99 | 15 |
| Impairment of property and equipment | 280 | 204 |
| Loss(gain) on disposition of property and equipment | 876 | 0 |
| Adjusted Net Income(Loss)¹for the period | (16,852) | (14,914) |
| Adjusted Basic Earnings(Loss)Per Common Share | (1.51) | (1.35) |
- Non-GAAP financial measures are described and reconciled to GAAP measures in the quarterly press release.
- 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.
Tucows | Quarterly Business Highlights
Operating Statistics (Amounts in thousands)
| REVENUE | GROSS PROFIT2 | ADJUSTED EBITDA1 | ||||
|---|---|---|---|---|---|---|
| 3 Months ended March 31 | 3 Months ended March 31 | 3 Months ended March 31 | ||||
| 2026(unaudited) | 2025(unaudited) | 2026(unaudited) | 2025(unaudited) | 2026(unaudited) | 2025(unaudited) | |
| DOMAINS AND WAVELO SERVICES | ||||||
| Tucows Domain Services: | ||||||
| Wholesale | ||||||
| Domain Services | 48,805 | 50,004 | ||||
| Value Added Services | 5,460 | 5,903 | ||||
| Total Wholesale | 54,265 | 55,907 | ||||
| Retail | 9,835 | 9,348 | ||||
| Total Tucows Domain Services | 64,100 | 65,255 | 18,634 | 18,320 | 11,627 | 11,540 |
| Wavelo Services | 11,561 | 11,396 | 7,015 | 7,752 | 3,616 | 4,449 |
| Total Domains and Wavelo Services | 75,661 | 76,651 | 25,649 | 26,072 | 15,243 | 15,989 |
| TING INTERNET SERVICES | ||||||
| Fiber Internet Services | 17,128 | 16,315 | 1,600 | (1,160) | (861) | (1,468) |
| Construction Services | 2,246 | - | ||||
| Total Ting | 19,374 | 16,315 | 1,720 | 33 | (430) | (854) |
| CORPORATE & OTHER | ||||||
| Mobile Services and Eliminations | 1,622 | 1,643 | (3,239) | (2,574) | (3,146) | (1,464) |
| Total | 96,657 | 94,609 | 24,130 | 23,531 | 11,667 | 13,671 |
Tucows Inc. Q1 2026 Investor Update
Notes:
Non-GAAP financial measures are described and reconciled to GAAP measures in the quarterly press release.
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.
Why Tucows as an Investment
Continued KPI strength
● 2025 was third consecutive fiscal year of growing consolidated revenue, gross profit and adjusted EBITDA.
● Core businesses – Domains and Wavelo – have strong recurring revenue and margin profiles
Ting divestiture a catalyst for improved flexibility
● Strategic process to divest of Ting underway as Tucows is not the best long-term owner for this business
● Regained flexibility will enable capital allocation for self-funded growth, deleveraging and capacity for long-term value creation
New leadership with renewed focus on a simpler, more accountable, value-per-share model
● Capital-light operating model
● Performance metrics tied to speed of execution: acquisition/retention, margin, and cash generation
● Financial rigor in decision making for reliable cash generation, strong unit economics and disciplined capital allocation
Core businesses healthy and ready to scale
● Domains and Wavelo operating profitably and ready to scale
● Focus on building, integrating and operating platform businesses with recurring revenue, moat, scalable gross profit, and operational synergies
● Utilization of AI to accelerate software development, improve operating leverage and enhance products