2026-Q1-TCX-results-management-remarks-transcript

Tucows Q1 2026 Management Remarks Transcript

Introduction [Monica Webb, Vice President, Investor Relations]

Welcome to the Tucows’ first quarter 2026 management commentary. We have prerecorded remarks regarding the quarter and outlook for the Company. A Tucows-generated transcript of these remarks, with relevant links, is also available on the Company’s website. We will begin with opening remarks and business segment commentary from David Woroch, President and CEO of Tucows and Tucows Domains, followed by Ivan Ivanov, Tucows' CFO, who will discuss our financial results in detail, and we will finish with closing remarks from David Woroch.

Now for management’s prepared remarks:

On Thursday, May 7, Tucows issued a news release reporting its financial results for the first quarter ended March 31, 2026. That news release and the Company’s financial statements are available on the Company’s website at tucows.com under the Investors section.

Now I would like to turn the call over to Tucows President and Chief Executive Officer, David Woroch.

Tucows has always been a company built on durable, recurring revenue, a long-term mindset, and a practical approach to innovation, and that continued to show through in the quarter. Across the business, our teams remained focused on operating well and advancing the work in front of us. Overall in Q1, we saw continued progress against the priorities in each of our business segments.

Tucows Domains

With Tucows Domains, gross profit and Adjusted EBITDA both increased year over year, reflecting the consistency of our business model, while revenue was modestly below the prior-year period. Our reseller channel and customer base continues to support healthy margins, and Q1 benefited from a favorable mix of higher-margin product sales, customer composition and prudent expense management.

Domain Services remained the primary driver of profitability, with a healthy, albeit lower, contribution from Value Added Services. Retail continued to perform well, and we are pleased to share that we completed the migration of the Radix registry portfolio in mid March, with the full quarterly benefit expected in our Wholesale segment in Q2.

Wavelo

For Wavelo, Q1 was a solid start to the year. Revenue was modestly ahead of the prior-year period, and subscriber levels remained broadly stable year over year. We continue to benefit from the operating foundation we built in 2025, including a disciplined approach to profitability, a more mature go-to-market program, and a product and pipeline strategy that we believe positions us well for future bookings growth.

Ting’s Q1 results marked important progress with subscriber growth and revenue both accelerating. Adjusted EBITDA improved by 50% versus Q1 of last year, reflecting the benefits of a growing subscriber base, continued capital discipline, and contributions from a senior living community contract.

Financial Results [Ivan Ivanov, Chief Financial Officer]

Thanks Dave, and thank you all for joining us today.

Q1 consolidated results

Consolidated net revenue for the first quarter of ‘26 increased 2% to $96.7 million from $94.6 million for the first quarter of ‘25, driven by strong revenue gains from Ting Fiber. Q1 gross profit was $24.1 million, up 2.5% year over year, supported by margin expansion from Domains and Ting.

We delivered $11.7 million in Adjusted EBITDA this quarter, down 15% year over year from $13.7 million, primarily due to gross margin decreases in our Corporate segment. On a GAAP basis, net loss for the quarter was $18.1 million, or ($1.63) loss per share.

Cash flow and Balance Sheet

Consolidated cash flow from operating activities for Q1 ‘26 was $3.5 million, compared with a negative $11.3 million in Q1 of last year. We ended Q1 with cash and restricted cash of $34.6 million for Ting and cash of $27.4 million excluding Ting. Corporate net debt, excluding Ting, was $162.2 million as of quarter end.

Closing Remarks [David Woroch, President and Chief Executive Officer]

Thanks Ivan. Q1 was a solid start to 2026. We saw continued progress across the business: revenue and gross profit grew, and we returned to positive operating cash flow. Domains continues to demonstrate what a well-run, durable platform business looks like. The Radix registry migration is now complete, and we expect the full benefit to show in Q2.

The Ting strategic process remains a top priority, and while we are not in a position to say more today, I want to be clear: we are actively working toward an outcome that creates long-term value for shareholders.

What I can tell you is that the financial position we are in: positive operating cash flow, covenant compliance, improved year-over-year liquidity, gives us the ability to navigate this period from a position of stability. Q1 is a step in that direction.