TCX

This article first appeared on GuruFocus. Consolidated Net Revenue: $100.6 million in Q2 2026, up 2% year-over-year from $98.5 million and up 4% sequentially from $96.7 million. Consolidated Gross Profit: $25.8 million, up 17% year-over-year from $22.1 million and up 7% sequentially from $24.1 million. Adjusted EBITDA: $12.3 million, down 2% from $12.6 million in Q2 2025 but up 5% sequentially from $11.7 million in Q1. GAAP Net Loss: $20.5 million, or a loss of $1.84 per share, compared with a net loss of $15.6 million or $1.41 per share in Q2 2025. Non-GAAP Adjusted Net Loss: $17.5 million, or a loss of $1.57 per share, compared with an adjusted net loss of $16.3 million or $1.47 per share in Q2 2025. Operating Cash Flow: Positive $1.9 million in Q2 2026, compared with positive $6.6 million in Q2 2025; $5.5 million positive for the first half of 2026. Domains Revenue: $65 million, down 4% year-over-year from $67.6 million. Domains Gross Profit: $19.3 million, essentially stable year-over-year. Domains Adjusted EBITDA: $11.9 million, compared with $12.5 million in Q2 2025. Domains Under Management: 21.3 million, down from 24 million a year ago. Wavelo Revenue: $11.8 million, down 7% from $12.7 million in Q2 2025. Wavelo Gross Profit: $6.6 million, compared with $8.6 million in Q2 2025. Wavelo Adjusted EBITDA: $2.8 million, compared with $5.4 million in Q2 2025. Ting Revenue: $21.6 million, up 32% from $16.4 million in Q2 2025. Ting Gross Profit: $2.5 million, compared with negative $3.2 million in the prior quarter. Ting Adjusted EBITDA: Positive $1.5 million, compared with a loss of $3.7 million in Q2 2025 and a loss of $0.4 million in Q1. Internet Subscribers Under Management: Approximately 60,500 at quarter end, an increase of approximately 8,500 year-over-year. Corporate Revenue: $2.2 million, compared with $1.8 million in Q2 2025. Corporate Adjusted EBITDA: Negative $3.9 million, compared with negative $1.7 million in Q2 2025. Warning! GuruFocus has detected 4 Warning Signs with TCX. Is TCX fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Tucows Inc (NASDAQ:TCX) reported its second consecutive quarter of positive operating cash flow, totaling $5.5 million year-to-date. Ting achieved its first quarter of positive adjusted EBITDA since segment reporting began, with substantial year-over-year gains in revenue, gross profit, and adjusted EBITDA. The company retired all outstanding preferred equity in Ting, removing a significant financial overhang valued at approximately $150 million. Tucows Inc (NASDAQ:TCX) amended and extended its syndicated credit facility, pushing maturity to July 2029 with key terms substantially unchanged. Domains segment demonstrated resilience with stable gross profit despite lower revenue, supported by strong expiry sales and increased registry services contribution. Consolidated adjusted EBITDA declined 2% year-over-year, primarily due to headwinds in the legacy mobile business and higher professional fees. Wavelo's revenue, gross profit, and adjusted EBITDA all declined year-over-year, impacted by lower bundled professional services revenue and increased personnel costs. The legacy mobile business faced continued unfavorable per-subscriber economics, including $1.3 million in incremental long-distance charges from unauthorized traffic. Corporate adjusted EBITDA turned more negative year-over-year, driven by higher professional fees and larger mobile losses. Domains under management decreased to 21.3 million from 24 million a year ago, reflecting the tail end impact of a large reseller insourcing. Q: What were the key strategic actions taken to improve Tucows' balance sheet and capital structure?A: David Woroch, President and CEO, highlighted the amendment and extension of the syndicated credit facility, extending maturity to July 2029, and the retirement of all outstanding Series A preferred units in Ting Fiber, removing a financial overhang valued at approximately $150 million. Additionally, Tucows acquired the Ting-owned data center to protect critical infrastructure. These actions are intended to provide greater flexibility for long-term value creation. Q: How did Ting perform in Q2 2026, and what drove its significant improvement?A: Ivan Ivanov, CFO and CEO of Ting, reported that Ting delivered its first quarter of positive adjusted EBITDA ($1.5 million) since segment reporting began. Revenue increased 32% year-over-year to $21.6 million, driven by subscriber growth and $4.1 million in construction services revenue from the Laguna Woods Village HOA. Internet subscribers under management grew by approximately 8,500 year-over-year to 60.5 thousand, with 3,700 net additions in the quarter. Q: What is the status of the Ting strategic process, and what are the main challenges?A: David Woroch stated that the strategic process remains a top priority for management and the board. While they expected it to move faster, there are interdependencies for an efficient transaction that they are solving for, as noted in a recent 8-K filing. The focus is on operating the business responsibly and improving its economics to create the best opportunity for value creation. Q: Can you provide more detail on the performance of the Domains business?A: David Woroch noted that Domains revenue declined 4% year-over-year to $65 million, primarily due to a large reseller insourcing domains, but gross profit remained stable at $19.3 million. This resilience was supported by strong expiry sales, a full quarter of a new registry customer, and consistent unit economics. Domains under management decreased to 21.3 million, but volumes are expected to stabilize as the insourcing impact winds down. Q: What were the main drivers of the year-over-year decline in Wavelo's results?A: Ivan Ivanov explained that Wavelo's Q2 revenue declined 7% to $11.8 million, and adjusted EBITDA fell to $2.8 million from $5.4 million. This was due to less bundled professional services revenue recognized compared to an especially strong Q2 2025, incremental personnel costs for those services, and continued investment in sales and marketing. The sales pipeline remains active, but customer conversion timing can be uneven. Q: What is causing the continued pressure in the corporate segment and legacy mobile business?A: Ivan Ivanov cited higher professional fees related to strategic initiatives and continued unfavorable economics in the legacy mobile business. Specifically, Q2 included approximately $1.3 million in incremental long-distance charges from an isolated instance of unauthorized traffic. Management is actively seeking a resolution to the mobile economics and has implemented additional monitoring controls to prevent recurrence. Q: How did the company's cash flow and balance sheet look at the end of Q2?A: Ivan Ivanov reported a second consecutive quarter of positive operating cash flow at $1.9 million, bringing the year-to-date total to $5.5 million. The company ended the quarter with $60.2 million in cash. Corporate debt under the syndicated facility was approximately $190.4 million, with a leverage ratio of 3.72 times and interest coverage of 3.75 times, both in compliance with covenants. Q: What is the outlook for the remainder of 2026, and what are the key priorities?A: David Woroch stated that 2026 is a year of transition. The next phase is execution, focusing on converting operating performance into sustainable free cash flow, simplifying the portfolio, improving the economics of retained businesses, and maintaining disciplined capital allocation. The goal is to build a simpler, more focused, and more capital-efficient Tucows through a series of deliberate actions. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Tucows Inc.? Here are five stocks we like better. Q2 revenue rose 2% to $100.6 million and gross profit increased 17% to $25.8 million, while adjusted EBITDA slipped 2% to $12.3 million. The company reported a wider GAAP net loss of $20.5 million, driven by higher professional fees, strategic costs and mobile-business losses. Ting achieved positive adjusted EBITDA for the first time at $1.5 million, as revenue grew 32% to $21.6 million and subscribers increased to about 60,500. The company continues to evaluate strategic options for the fiber business. Domains revenue declined 4% amid lower domain volumes, but gross profit held steady due to expiry sales and resilient unit economics. Wavelo profitability fell sharply, while Tucows extended its credit facility, retired Ting preferred units and continued addressing losses in its legacy mobile operations. Tucows (NASDAQ:TCX) reported higher second-quarter revenue and gross profit, supported by a sharp improvement at its Ting fiber business, while adjusted EBITDA declined modestly from a year earlier amid higher professional fees, weaker Wavelo profitability and continued pressure from its legacy mobile operations. Consolidated revenue for the quarter ended June 30 rose 2% year over year to $100.6 million and increased 4% sequentially. Gross profit increased 17% from the prior-year period to $25.8 million. Adjusted EBITDA was $12.3 million, down 2% from $12.6 million a year earlier but up 5% from the first quarter. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth On a GAAP basis, Tucows recorded a net loss of $20.5 million, or $1.84 per share, compared with a loss of $15.6 million, or $1.41 per share, in the second quarter of 2025. CFO Ivan Ivanov said the wider loss primarily reflected higher professional fees, costs tied to strategic initiatives and the legacy mobile business, partly offset by Ting's improvement. The company generated $1.9 million of cash flow from operating activities during the quarter, its second consecutive quarter of positive operating cash flow. Operating cash flow totaled $5.5 million for the first half of 2026, compared with an outflow of $4.7 million in the first half of 2025. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Ting delivered the largest operational improvement among Tucows' segments. Revenue increased 32% year over year to $21.6 million, including $17.5 million in fiber internet services revenue and $4.1 million in construction services revenue associated with the Laguna Woods Village homeowners association. Internet subscribers under management ended the quarter at approximately 60,500, up about 8,500 from a year earlier. Ting added roughly 3,700 subscribers in the quarter, largely from Laguna Woods Village, compared with approximately 400 additions in the prior-year quarter. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Ting generated gross profit after network expenses of $2.5 million, compared with a loss of $3.2 million in the first quarter. The first-quarter result included a $2.7 million non-cash lease accounting adjustment in cost of goods sold. Ting's adjusted EBITDA improved to positive $1.5 million, from a loss of $3.7 million a year ago and a loss of $0.4 million in the first quarter. President and CEO David Woroch said this marked Ting's first quarter of positive adjusted EBITDA since Tucows began reporting results by segment. He attributed the improvement to subscriber growth, construction activity and operating-cost discipline. Woroch said the company continues to assess Ting markets based on economics, capital requirements and their potential to contribute to long-term value. The company's strategic process for Ting remains a priority, although he said it has taken longer than expected because of interdependencies needed for an efficient transaction. Tucows Domains revenue declined 4% year over year to $65 million, as a large reseller's transition of lower-margin domains in-house continued to affect results. Domains under management fell to 21.3 million from 24 million a year earlier. Despite lower revenue and volume, gross profit after network expenses was essentially unchanged at $19.3 million. Ivanov said strong expiry sales, a full quarter of revenue from a new registry customer and resilient reseller and retail unit economics helped offset the volume decline. Wholesale revenue decreased 4% to $55.1 million, while retail revenue was $9.9 million, down from $10.3 million a year earlier. Value-added services revenue rose 9% to $6.3 million, supported by expiry sales. Domains adjusted EBITDA was $11.9 million, compared with $12.5 million in the prior-year period, mainly due to higher general and administrative expenses. Woroch said the reseller insourcing activity has “mostly wound down” and that domain volumes are expected to be stable going forward. He also cited registry services and higher-margin complementary products as contributors to the segment's performance. Wavelo revenue fell 7% year over year to $11.8 million, reflecting less bundled professional-services revenue recognized during the period. Gross profit after network expenses declined to $6.6 million from $8.6 million, while adjusted EBITDA fell to $2.8 million from $5.4 million. The company said results also reflected incremental personnel costs associated with bundled professional services and continued sales-and-marketing investment. Wavelo's sales pipeline remains active among telecommunications providers in multiple markets, though Woroch noted that conversion timing can be uneven with large telecom customers. He said further investment in Wavelo will depend on demonstrated execution and measurable progress in converting its pipeline into recurring revenue. During the period, Tucows amended and extended its syndicated credit facility and retired all outstanding Series A preferred units in Ting Fiber. Woroch said the preferred-unit retirement removed an obligation valued at approximately $150 million, including cumulative dividends. The credit facility extension moved the maturity of all but one lender commitment from September 2027 to July 2029, while key pricing and financial covenants remained substantially unchanged. Tucows also acquired a Ting-owned data center primarily used by its Domains and Wavelo businesses. Woroch said the move protects critical infrastructure and places the asset outside potential outcomes of the Ting strategic process. At quarter-end, the company held $60.2 million in cash, cash equivalents and restricted cash, while corporate debt under the syndicated facility stood at approximately $190.4 million. Tucows reported compliance with its financial covenants, including a leverage ratio of 3.72 times and interest coverage of 3.75 times. Corporate results continued to be affected by professional fees and losses in the remaining mobile business. Ivanov said mobile profitability was hurt by unfavorable per-subscriber economics, changes in customer-plan and usage mix, and about $1.3 million of long-distance charges tied to an isolated instance of unauthorized traffic. Tucows was responsible for the charges under a carrier agreement, though the company said the activity was contained and additional monitoring and usage controls have been implemented. Woroch said Tucows is actively seeking a resolution to the mobile business's economics while working to build a simpler, more focused and capital-efficient company. Tucows Inc (NASDAQ: TCX) is a diversified internet services company primarily known for its domain name registration and management business. Through its Domain Services division, Tucows operates leading reseller platforms such as OpenSRS and Enom, offering domain registration, SSL certificates, email hosting and related value-added services to web professionals, small businesses and enterprise partners worldwide. The company's platforms enable thousands of resellers to provide branded internet services to their customers, leveraging Tucows' infrastructure and expertise in the domain name system. In addition to domain services, Tucows has built a growing portfolio of consumer-facing internet access offerings under the Ting brand. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Tucows Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

TORONTO, Aug. 6, 2026 /CNW/ -- Tucows Inc. (NASDAQ: TCX) (TSX: TC), a global internet services leader, today reported its unaudited financial results for the second quarter ended June 30, 2026. All figures are in U.S. dollars. "We made measurable financial progress in the second quarter, with revenue and gross profit increasing both year over year and sequentially, Adjusted EBITDA improving from the first quarter, and the business generating positive operating cash flow," said David Woroch, Chief Executive Officer of Tucows. "Ting was the principal driver of the improvements, supported by subscriber growth and construction activity, while Tucows Domains continued to deliver stable gross profit." Financial Results Consolidated net revenue increased 2.1% year over year to $100.6 million in the second quarter of 2026 and improved 4.0% sequentially, driven by strong revenue growth at Ting. Gross profit for the second quarter of 2026 increased 16.6% to $25.8 million from the second quarter of 2025, and improved 7% sequentially. Year-over-year gross profit expansion was largely driven by margin gains from Ting, as well as a decrease in network expenses. The sequential increase came from margin improvement in Ting and Tucows Domains. Net loss for the second quarter was $20.5 million ($1.84 per share), compared with a net loss of $15.6 million ($1.41 per share) in Q2 2025. Adjusted net loss¹ was $17.5 million (adjusted EPS¹ of ($1.57)) in Q2 2026 versus $16.3 million (adjusted EPS¹ of $(1.47)) in Q2 2025. Adjusted EBITDA1 for the first quarter of 2026 came down 2.2% to $12.3 million from the second quarter of 2025, and improved 5.4% sequentially. The Ting segment had strong Adjusted EBITDA performance both year over year and sequentially, which was offset by obligations associated with our legacy mobile business and investment in Wavelo's sales and marketing. We ended the second quarter of 2026 with cash and cash equivalents, and restricted cash and restricted cash equivalents of $60.2 million. This compares with $61.9 million at the end of the first quarter of 2026 and $68.6 million at the end of the second quarter of 2025. Summary Financial Results(In Thousands of US Dollars, except Per Share data) Summary of Revenues, Gross Profit and Adjusted EBITDA (In Thousands of US Dollars) 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): 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 best 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): Management Commentary Concurrent with the dissemination of its quarterly financial results news release at 5:05 p.m. ET on Thursday, August 6, 2026, 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, August 13, 2026, shareholders, analysts and prospective investors can submit questions to Tucows' management at [email protected]. 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 Wednesday, August 19, 2026, at approximately 5 p.m. ET. All questions will receive a response, however, questions of a more specific nature may be responded to directly. About Tucows Tucows helps connect more people to the benefit of internet access through domain services, communications service technology, and fiber-optic infrastructure. Tucows Domains (https://tucowsdomains.com) manages over 21 million domain names and millions of value-added services through a global reseller network of 32,000 web hosts and ISPs. Hover (https://hover.com) makes it easy for individuals and small businesses to manage their domain names and email addresses. Wavelo (https://wavelo.com) is a telecommunications software suite for service providers that simplifies the management of mobile and internet network access; provisioning, billing and subscription; developer tools; and more. Ting (https://ting.com) delivers fixed fiber Internet access with outstanding customer support. More information can be found on Tucows' corporate website (https://tucows.com). Tucows, Hover, Wavelo, and Ting are registered trademarks of Tucows Inc. or its subsidiaries. This release includes forward-looking statements as that term is defined in the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding our expectations regarding our future financial results. These statements are based on management's current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Information about other potential factors that could affect Tucows' business, results of operations and financial condition is included in the Risk Factors sections of Tucows' filings with the Securities and Exchange Commission. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. All forward-looking statements are based on information available to Tucows as of the date they are made. Tucows assumes no obligation to update any forward-looking statements, except as may be required by law. View original content to download multimedia:https://www.prnewswire.com/news-releases/tucows-posts-solid-results-in-second-quarter-2026-302845442.html

This article first appeared on GuruFocus. Release Date: May 20, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Tucows Inc (NASDAQ:TCX) is transitioning into a more focused, capital-light company with a lean operating model. The company is making targeted investments in Wavelo, which has attributes like recurring revenue and strong retention. Tucows Domains is focusing on growth by expanding its channel and introducing new products. The company is actively working on improving liquidity, which is a key focus for the management team. Tucows Inc (NASDAQ:TCX) has reduced its syndicated debt from a peak of $238.9 million in Q4 2022 to $189.6 million. Investments in Wavelo are not open-ended and are subject to strict evaluation criteria. Ting's path to profitability requires finding an operator with the necessary capital and scale. The remaining mobile business is only strategic as part of a converged offering with Ting Internet. The company's growth acceleration is contingent on improving liquidity, indicating current limitations. The renewal process for Tucows' syndicated debt, which expires in September 2027, is still ongoing. Warning! GuruFocus has detected 4 Warning Signs with TCX. Is TCX fairly valued? Test your thesis with our free DCF calculator. Q: Can you elaborate on Tucows' increased investment in Wavelo and its strategic importance? A: David Woroch, CEO of Tucows Domains Services, explained that Wavelo is being evaluated for its strategic fit, capital requirements, growth potential, and contribution to shareholder value. The goal is to transition Tucows into a more focused, capital-light company with recurring revenue and strong retention. Wavelo's attributes align with these goals, prompting targeted investments in product and go-to-market strategies, evaluated against clear expectations for bookings conversion and long-term value creation. Q: What is the current status of the Ting business and its strategic direction? A: David Woroch stated that Ting is undergoing a process to find an operator with the capital and scale to bring it to profitability. The remaining mobile business is strategic only as part of a converged offering with Ting Internet. Tucows is working on this in parallel with the Ting process. Q: How does Tucows plan to grow its Domains business? A: The growth strategy for Tucows Domains involves gaining scale and expanding margins by expanding the channel and introducing new products. Accelerating growth is contingent on improving liquidity, which is a key focus for the management team. Q: What is the status of Tucows' syndicated debt renewal process? A: Tucows is in active discussions regarding the renewal of its syndicated debt, which expires in September 2027. The debt peaked at $238.9 million in Q4 2022 and is now at $189.6 million, with Tucows holding $27.4 million in cash. Q: How is Tucows assessing its business portfolio for strategic fit and value creation? A: Every business in Tucows' portfolio is being assessed for strategic fit and its ability to create value. This involves evaluating each business's potential for recurring revenue, retention, platform economics, and opportunities to benefit from shared infrastructure and operational discipline. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Tucows Inc.? Here are five stocks we like better. Tucows’ Q1 revenue and gross profit rose, with consolidated net revenue up 2% to $96.7 million and gross profit up 2.5% to $24.1 million. However, losses widened as adjusted EBITDA fell 15% and GAAP net loss increased to $18.1 million. Domains remained the main profit engine, as higher-margin mix and expense control helped offset a 2% revenue decline. Retail growth and the completed Radix Registry migration are expected to support results in the next quarter. Ting Internet showed stronger momentum, with revenue up 19% and the adjusted EBITDA loss narrowing to $0.4 million. Cash flow also turned positive companywide, though corporate results were still pressured by legacy mobile obligations. Tucows (NASDAQ:TCX) reported higher first-quarter 2026 revenue and gross profit, but its losses widened as increased sales and marketing spending and legacy mobile obligations weighed on results, according to management commentary accompanying the company’s quarterly report. Chief Executive Officer David Woroch said the quarter showed “continued progress against the priorities in each of our business segments,” highlighting steady performance in the Domains business, growth at Ting Internet and ongoing investment at Wavelo. → Insider Sales: Top AST SpaceMobile Insider Cuts Postion Over 30% Consolidated net revenue rose 2% to $96.7 million from $94.6 million in the first quarter of 2025, Chief Financial Officer Ivan Ivanov said. Gross profit increased 2.5% to $24.1 million, supported by margin expansion in Domains and Ting and moderated network costs, partially offset by headwinds from the company’s legacy mobile business. Adjusted EBITDA declined 15% to $11.7 million from $13.7 million a year earlier. Tucows reported a GAAP net loss of $18.1 million, or $1.63 per share, compared with a net loss of $15.1 million, or $1.37 per share, in the prior-year quarter. On a non-GAAP adjusted basis, the company posted a net loss of $16.9 million, or $1.51 per share, compared with an adjusted net loss of $14.9 million, or $1.35 per share, a year earlier. → Light Speed Returns: Corning Cashes In on NVIDIA Growth Tucows Domains revenue declined 2% year over year to $64.1 million from $65.3 million, while gross profit after network expenses increased 2% to $18.6 million from $18.3 million. Adjusted EBITDA for the segment was $11.6 million, up modestly from the prior year. Woroch said Domains benefited from a favorable mix of higher-margin product sales, customer composition and “prudent expense management.” He said domain services remained the primary driver of profitability, while value-added services contributed less than in the prior-year period because of more modest expiry stream sales. → Years in the Making, AMD’s Upside Movement Has Just Begun Within Domains, wholesale revenue fell 3% to $54.3 million from $55.9 million. Ivanov said the decline reflected “the tail end of the impact from a large customer moving low margin domains in-house.” Wholesale gross margin net of network expenses rose 1%, supported by the higher-margin sales mix. Domain services gross margin increased 4% to $10 million, while value-added services declined 5% to $5.1 million. Retail revenue increased 5% to $9.8 million, and retail gross margin rose 8% to $5.6 million. Woroch also said the company completed the migration of the Radix Registry portfolio in mid-March, with the full quarterly benefit expected in the wholesale segment in the second quarter. Wavelo revenue was $11.6 million in the first quarter, representing a slight increase from the year-earlier period. Gross profit declined to $7 million from $7.8 million, and adjusted EBITDA decreased to $3.6 million from $4.4 million. Management attributed the lower gross profit and adjusted EBITDA primarily to continued investment in Wavelo’s sales and marketing efforts, which began in the second quarter of 2025. Woroch said the company is investing “thoughtfully and selectively in go-to-market capacity while maintaining a lean operating model.” Ivanov noted that the year-over-year comparison was affected by Wavelo’s strong prior-year period, when the business benefited from both a rate card increase and subscriber growth. He said the rate contribution has now leveled off, creating a tougher comparison. Ting Internet revenue increased 19% year over year to $19.4 million. Ivanov said the gain was driven primarily by construction revenue related to Ting’s contract with a senior living community, as well as continued subscriber growth. Ting’s gross profit improved to $1.7 million from a negligible amount in the first quarter of 2025. Adjusted EBITDA improved to a loss of $0.4 million from a loss of $0.8 million a year earlier. Woroch said Ting’s results marked “important progress,” with subscriber growth and revenue both accelerating and adjusted EBITDA improving by 50% from the prior-year quarter. Woroch said Ting’s partner footprint continues to expand, supporting what he described as a more capital-efficient path to growth. He also said the company continues to work on Ting’s strategic process, calling it a top priority for management and the board, though he said Tucows was not in a position to provide a substantive update. Corporate revenue was flat year over year at $1.6 million, while gross profit was negative $3.2 million compared with negative $2.6 million a year earlier. Corporate adjusted EBITDA was negative $3.1 million, compared with negative $1.5 million in the first quarter of 2025. Ivanov said reduced profitability in the Corporate segment was primarily impacted by mobile contract obligations and lower revenue from the legacy mobile business. He said profitability from remaining legacy mobile arrangements continues to be challenged on both the revenue and cost sides. Woroch said the Corporate segment, specifically mobile obligations and professional fees, was the area that weighed most on the quarter. “Those headwinds were real but represent costs that are not expected to recur indefinitely and that we're working to eliminate,” he said. Consolidated cash flow from operating activities was $3.5 million in the first quarter, compared with negative $11.3 million in the prior-year period. Ivanov said Domains, Wavelo and Corporate generated $7.2 million in operating cash flow combined, while Ting had a $3.7 million outflow, mainly from ABS interest paid. Tucows invested $3.6 million in Ting capital expenditures during the quarter and $1.9 million in Domains and Wavelo combined. The company ended the quarter 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, net of deferred financing costs. Ivanov said Tucows remained in compliance with its covenants under the TCX syndicated facility, with a leverage ratio of 3.29 times and interest coverage of 4.12 times. Ting’s net debt was $417.8 million, consisting of ABS notes and preferred shares. Woroch said his priorities for the rest of 2026 remain to generate free cash flow, improve capital flexibility and make the company “simpler, more focused, more disciplined.” Tucows Inc (NASDAQ: TCX) is a diversified internet services company primarily known for its domain name registration and management business. Through its Domain Services division, Tucows operates leading reseller platforms such as OpenSRS and Enom, offering domain registration, SSL certificates, email hosting and related value-added services to web professionals, small businesses and enterprise partners worldwide. The company's platforms enable thousands of resellers to provide branded internet services to their customers, leveraging Tucows' infrastructure and expertise in the domain name system. In addition to domain services, Tucows has built a growing portfolio of consumer-facing internet access offerings under the Ting brand. The article "Tucows Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

This article first appeared on GuruFocus. Release Date: May 07, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. WaveLo completed a significant migration of nearly 7 million Boost subscribers for DISH, showcasing strong operational capabilities. Ting Internet's network construction and activation numbers were robust, with a 28% year-over-year increase in total serviceable addresses. WaveLo's revenue increased by 20% year-over-year, demonstrating strong growth in the platform's adoption. Ting's revenue grew by 21% year-over-year, indicating successful expansion in the fiber business. The company successfully issued asset-backed securities for the Ting business, securing $238.5 million with a blended coupon rate of 6.88%. Domain Services revenue decreased slightly from the previous year, with a 7% decline in gross margin due to weaker aftermarket sales. Adjusted EBITDA for the second quarter was down 54% from the previous year, reflecting financial challenges. The company reported a net loss of $31 million for the second quarter, significantly higher than the $3 million loss in the previous year. Operating expenses increased by 17.5% year-over-year, driven by higher workforce costs and increased investments in business expansion. Cash from operations was negative $1.6 million, a decline from positive $12.6 million in the previous year, due to larger operating investments. Warning! GuruFocus has detected 4 Warning Signs with TCX. Is TCX fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide an update on the performance of Tucows Domains in Q2 2023? A: Dave Warwick, CEO of Tucows Domains, reported that the second quarter continued the trend of stabilization in transactions and domains under management. Revenue for Domain Services was $60 million, slightly down from $61 million the previous year, with a gross margin of $17.9 million, down 7% year-over-year. The decline was attributed to a weaker aftermarket for domain sales and deferred revenue impacts. However, the core domain business remains healthy with consistent billed gross margin year-over-year. Q: How did Wavelo perform in Q2 2023, and what were the key milestones? A: Justin Riley, CEO of Wavelo, highlighted that Q2 was the strongest quarter since inception, with over 8 million subscribers on the platform, nearly doubling from Q1. Revenue increased by 20% to $10.8 million, and gross margin rose by 27% to $10 million. The decrease in adjusted EBITDA was due to the unwinding of a contract asset, but EBITDA grew $5.9 million year-over-year when adjusted for this. Wavelo also completed the migration of Ting Internet's systems to its platform. Q: What progress has Ting made in its network construction and subscriber growth? A: Elliot Noss, CEO of Tucows, reported that Ting saw robust network construction and activation, with total serviceable addresses reaching 130,400, a 28% year-over-year increase. Ting added 1,900 net subscribers in Q2, with total subscribers growing over 27% year-over-year. Revenue grew 21% to $12.4 million, and gross margin increased by 22% to $7.1 million. Ting's fiber network expansion continues to progress well. Q: How did Tucows' overall financial performance fare in Q2 2023? A: Dave Singh, CFO of Tucows, stated that total revenue increased by 2.3% to $85 million. Gross profit before network costs rose by 1.2% to $34.2 million. However, the company reported a net loss of $31 million, primarily due to the acceleration of Ting's fiber network construction and associated costs. Adjusted EBITDA was $5.4 million, down 54% from the previous year, reflecting weaker domain aftermarket sales and contract asset impacts. Q: What are the strategic priorities for Tucows moving forward? A: Elliot Noss emphasized the focus on execution and leveraging market opportunities. Tucows aims to maintain its strategy while exploring market opportunities that align with its strengths. The company is focused on cash generation from its domains business, cash flow positivity for Wavelo, and self-funding for Ting. Tucows is also navigating a unique macro environment with significant opportunities and risks, aiming to capitalize on technological changes and market dislocations. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

TORONTO, May 7, 2026 /CNW/ - Tucows Inc. (NASDAQ: TCX) (TSX: TC), a global internet services leader, today reported its unaudited financial results for the first quarter ended March 31, 2026. All figures are in U.S. dollars. "Our first quarter results reflect steady execution across the business, with consolidated revenue and gross profit increasing year over year, driven by strong growth at Ting and continued margin gains in Tucows Domains," said David Woroch, CEO of Tucows. "We delivered positive cash flow this quarter, even with Adjusted EBITDA that was impacted by legacy mobile obligations and continued investment in Wavelo's go-to-market efforts. Overall, we remain focused on disciplined execution, strengthening the profitability of our core businesses, and continuing to move Ting's strategic process forward." Financial Results Consolidated net revenue for the first quarter of 2026 increased 2.0% to $96.7 million from $94.6 million for the first quarter of 2025, driven by strong revenue gains from Ting. Gross profit for the first quarter of 2026 increased 2.5% to $24.1 million from $23.5 million from the first quarter of 2025. The increase in gross profit was driven by year-over-year margin gains from Tucows Domains, as well as a decrease in network expenses. Net loss for the first quarter was $18.1 million ($1.63 per share), compared with a net loss of $15.1 million ($1.37 per share) in Q1 2025. Adjusted net lossﾹ was $16.9 million (adjusted EPSﾹ of ($1.51)) in Q1 2026 versus $14.9 million (adjusted EPSﾹ of $(1.35)) in Q1 2025. Adjusted EBITDA1 for the first quarter of 2026 came down 15% to $11.7 million from $13.7 million for the first quarter of 2025. The year-over-year difference was driven primarily by obligations associated with our legacy mobile business, and investment in Wavelo's sales and marketing. We ended the first quarter of 2026 with cash and cash equivalents, and restricted cash and restricted cash equivalents of $61.9 million. This compares with $64.2 million at the end of the fourth quarter of 2025 and $55.0 million at the end of the first quarter of 2025. Summary Financial Results (In Thousands of US Dollars, except Per Share data) Summary of Revenues, Gross Profit and Adjusted EBITDA (In Thousands of US Dollars) 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): 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 best 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): Management Commentary Concurrent with the dissemination of its quarterly financial results news release at 5:05 p.m. ET on Thursday, May 7, 2026, 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, May 14, 2026, shareholders, analysts and prospective investors can submit questions to Tucows' management at [email protected]. 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 Wednesday, May 20, 2026, at approximately 5 p.m. ET. All questions will receive a response, however, questions of a more specific nature may be responded to directly. About Tucows Tucows helps connect more people to the benefit of internet access through communications service technology, domain services, and fiber-optic internet infrastructure. Ting (https://ting.com) delivers fixed fiber Internet access with outstanding customer support. Wavelo (https://wavelo.com) is a telecommunications software suite for service providers that simplifies the management of mobile and internet network access; provisioning, billing and subscription; developer tools; and more. Tucows Domains (https://tucowsdomains.com) manages over 21 million domain names and millions of value-added services through a global reseller network of over 32,000 web hosts and ISPs. Hover (https://hover.com) makes it easy for individuals and small businesses to manage their domain names and email addresses. More information can be found on Tucows' corporate website (https://tucows.com). Tucows, Ting, Wavelo, and Hover are registered trademarks of Tucows Inc. or its subsidiaries. This release includes forward-looking statements as that term is defined in the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding our expectations regarding our future financial results. These statements are based on management's current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Information about other potential factors that could affect Tucows' business, results of operations and financial condition is included in the Risk Factors sections of Tucows' filings with the Securities and Exchange Commission. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. All forward-looking statements are based on information available to Tucows as of the date they are made. Tucows assumes no obligation to update any forward-looking statements, except as may be required by law. View original content to download multimedia:https://www.prnewswire.com/news-releases/tucows-posts-first-quarter-2026-revenue-and-gross-profit-growth-and-positive-operating-cash-flow-302766021.html