Momentum Continues in Q2 as Tucows Reports Growth in Revenue and Profitability
Tucows (NASDAQ: TCX) reported strong Q2 2025 financial results, with revenue growing 10.1% to $98.5 million compared to Q2 2024. The company demonstrated growth across all three business segments - Ting Internet Services, Wavelo Platform Services, and Tucows Domain Services.
Key highlights include a 37% increase in Adjusted EBITDA to $12.6 million, a 6.2% rise in gross profit to $22.1 million, and improved net loss position of $15.6 million ($1.41 per share) compared to $18.6 million loss in Q2 2024. The company's cash position strengthened to $68.6 million, up from $52.2 million year-over-year.
The company's strategic shift to a capital-light model at Ting, combined with margin expansion in Wavelo and Tucows Domains, contributed to improved operational efficiency despite a one-time lease adjustment impact.
Tucows (NASDAQ: TCX) ha riportato risultati finanziari solidi nel secondo trimestre del 2025, con un fatturato in crescita del 10,1% a 98,5 milioni di dollari rispetto al secondo trimestre del 2024. L'azienda ha registrato una crescita in tutti e tre i segmenti di business: Ting Internet Services, Wavelo Platform Services e Tucows Domain Services.
I punti salienti includono un aumento del 37% dell'EBITDA rettificato a 12,6 milioni di dollari, un incremento del 6,2% del margine lordo a 22,1 milioni di dollari e un miglioramento della perdita netta, pari a 15,6 milioni di dollari (1,41 dollari per azione) rispetto a una perdita di 18,6 milioni nel secondo trimestre del 2024. La posizione di cassa dell'azienda si è rafforzata a 68,6 milioni di dollari, in aumento rispetto ai 52,2 milioni dell'anno precedente.
Il passaggio strategico dell'azienda a un modello capital-light con Ting, unito all'espansione dei margini in Wavelo e Tucows Domains, ha contribuito a migliorare l'efficienza operativa nonostante l'impatto di una rettifica una tantum sui contratti di locazione.
Tucows (NASDAQ: TCX) reportó sólidos resultados financieros en el segundo trimestre de 2025, con un crecimiento de ingresos del 10.1% hasta 98.5 millones de dólares en comparación con el segundo trimestre de 2024. La compañía mostró crecimiento en sus tres segmentos de negocio: Ting Internet Services, Wavelo Platform Services y Tucows Domain Services.
Los aspectos destacados incluyen un aumento del 37% en el EBITDA ajustado a 12.6 millones de dólares, un incremento del 6.2% en la ganancia bruta a 22.1 millones de dólares, y una mejora en la pérdida neta, que se situó en 15.6 millones de dólares (1.41 dólares por acción) en comparación con una pérdida de 18.6 millones en el segundo trimestre de 2024. La posición de efectivo de la empresa se fortaleció a 68.6 millones de dólares, desde 52.2 millones año tras año.
El cambio estratégico de la empresa hacia un modelo capital-light en Ting, combinado con la expansión de márgenes en Wavelo y Tucows Domains, contribuyó a una mayor eficiencia operativa a pesar del impacto de un ajuste único en arrendamientos.
Tucows (NASDAQ: TCX)는 2025년 2분기에 강력한 재무 실적을 보고했으며, 2024년 2분기 대비 매출이 10.1% 증가한 9,850만 달러를 기록했습니다. 회사는 Ting 인터넷 서비스, Wavelo 플랫폼 서비스, Tucows 도메인 서비스 등 세 가지 사업 부문 모두에서 성장세를 보였습니다.
주요 내용으로는 조정 EBITDA가 37% 증가한 1,260만 달러, 총이익이 6.2% 상승한 2,210만 달러, 그리고 2024년 2분기 1,860만 달러 적자 대비 개선된 1,560만 달러(주당 1.41달러) 순손실이 있습니다. 회사의 현금 보유액은 전년 대비 5,220만 달러에서 6,860만 달러로 증가했습니다.
Ting에서 자본 집약적 모델에서 자본 경량화 모델로의 전략적 전환과 Wavelo 및 Tucows 도메인에서의 마진 확대가 일회성 임대 조정 영향에도 불구하고 운영 효율성 향상에 기여했습니다.
Tucows (NASDAQ : TCX) a annoncé de solides résultats financiers pour le deuxième trimestre 2025, avec une croissance du chiffre d'affaires de 10,1 % à 98,5 millions de dollars par rapport au deuxième trimestre 2024. L'entreprise a affiché une croissance dans ses trois segments d'activité : Ting Internet Services, Wavelo Platform Services et Tucows Domain Services.
Les points clés incluent une augmentation de 37 % de l'EBITDA ajusté à 12,6 millions de dollars, une hausse de 6,2 % du bénéfice brut à 22,1 millions de dollars, et une amélioration de la perte nette, qui s'établit à 15,6 millions de dollars (1,41 dollar par action) contre une perte de 18,6 millions au deuxième trimestre 2024. La trésorerie de l'entreprise s'est renforcée pour atteindre 68,6 millions de dollars, contre 52,2 millions un an plus tôt.
Le virage stratégique de l'entreprise vers un modèle capital-light chez Ting, combiné à l'expansion des marges chez Wavelo et Tucows Domains, a contribué à une meilleure efficacité opérationnelle malgré l'impact d'un ajustement unique lié aux baux.
Tucows (NASDAQ: TCX) meldete starke Finanzergebnisse für das zweite Quartal 2025 mit einem Umsatzwachstum von 10,1 % auf 98,5 Millionen US-Dollar im Vergleich zum zweiten Quartal 2024. Das Unternehmen verzeichnete Wachstum in allen drei Geschäftsbereichen – Ting Internet Services, Wavelo Platform Services und Tucows Domain Services.
Wichtige Highlights sind ein 37 % Anstieg des bereinigten EBITDA auf 12,6 Millionen US-Dollar, ein 6,2 % Anstieg des Bruttogewinns auf 22,1 Millionen US-Dollar sowie eine verbesserte Nettoverlustsituation von 15,6 Millionen US-Dollar (1,41 US-Dollar pro Aktie) im Vergleich zu einem Verlust von 18,6 Millionen im zweiten Quartal 2024. Die Liquiditätsposition des Unternehmens verbesserte sich auf 68,6 Millionen US-Dollar, gegenüber 52,2 Millionen im Vorjahreszeitraum.
Die strategische Umstellung des Unternehmens auf ein kapitalleichtes Modell bei Ting, kombiniert mit Margenausweitungen bei Wavelo und Tucows Domains, trug trotz eines einmaligen Leasinganpassungseffekts zu einer verbesserten operativen Effizienz bei.
- Revenue growth of 10.1% year-over-year to $98.5 million
- Adjusted EBITDA increased 37% to $12.6 million
- Cash position improved to $68.6 million from $52.2 million YoY
- Net loss decreased by 16% year-over-year
- Strong performance across all three business segments
- Successful implementation of capital-light model at Ting
- Net loss of $15.6 million despite revenue growth
- One-time lease adjustment negatively impacted Ting's gross margin
- Income earned on sale of transferred assets declined 7%
- Interest expense increased to $13.6 million from $12.5 million YoY
Insights
Tucows reports 10% revenue growth and 37% EBITDA increase while continuing to reduce net losses despite ongoing fiber investments.
Tucows delivered solid Q2 2025 results with revenue growing 10.1% year-over-year to
Despite a one-time lease adjustment affecting Ting's gross margins, overall gross profit increased 6.2% to
The net loss decreased to
Tucows' cash position significantly strengthened to
The company's strategic pivot to a capital-light model for Ting is enhancing margins and operational efficiency. Wavelo Platform Services and Tucows Domain Services both exceeded plan with revenue increases of
Management's commentary about implementing AI-driven efficiencies and rigorous cost discipline across the organization suggests continued margin expansion potential. The company appears to be successfully balancing growth investments with financial discipline, resulting in steadily improving economics despite the capital-intensive nature of the fiber internet business.
"Q2 showed good progress in all three businesses," said Elliot Noss, President & CEO of Tucows. "Revenue grew
Financial Results
Consolidated net revenue for the second quarter of 2025 increased
Gross profit for the second quarter of 2025 increased
Net loss for the second quarter of 2025 decreased to
Adjusted EBITDA1 for the second quarter of 2025 grew
We ended the second quarter of 2025 with cash and cash equivalents, and restricted cash and restricted cash equivalents of
Summary Financial Results
(In Thousands of US Dollars, except Per Share data)
3 Months ended June 30 | 6 Months ended June 30 | |||||
2025 | 2024 | % Change | 2025 | 2024 | % Change | |
Net Revenues | 98,463 | 89,423 | 10 % | 193,072 | 176,880 | 9 % |
Gross Profit2 | 22,110 | 20,810 | 6 % | 45,641 | 39,126 | 17 % |
Income Earned on Sale of Transferred Assets, net | 3,112 | 3,357 | (7) % | 5,853 | 6,978 | (16) % |
Net Income (Loss)2 | (15,637) | (18,604) | 16 % | (30,770) | (45,088) | 32 % |
Adjusted Net Income (Loss)¹ | (16,277) | (17,835) | 9 % | (31,187) | (41,215) | 24 % |
Basic earnings (Loss) per common share | (1.41) | (1.70) | 17 % | (2.79) | (4.12) | 32 % |
Adjusted Basic earnings (Loss) per common share¹ | (1.47) | (1.63) | 10 % | (2.82) | (3.77) | 25 % |
Adjusted EBITDA¹ | 12,577 | 9,178 | 37 % | 26,248 | 13,380 | 96 % |
Net cash provided by (used in) operating activities | 6,566 | (4,707) | 239 % | (4,685) | (10,386) | 55 % |
1 Non-GAAP financial measures are described below and reconciled to GAAP measures in the accompanying tables. |
2 Gross profit and Net Income (Loss) for Q2 2025 includes a one-time, immaterial, non-cash increase in lease expense of |
Summary of Revenues, Gross Profit and Adjusted EBITDA
(In Thousands of US Dollars)
Revenue | Gross Profit | Adj. EBITDA¹ | ||||
3 Months ended June 30 | 3 Months ended June 30 | 3 Months ended June 30 | ||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |
Ting Internet Services: | ||||||
Fiber Internet Services | 16,410 | 14,571 | 7,7042 | 9,818 | (3,651)2 | (6,442) |
Wavelo Platform Services: | ||||||
Platform Services | 12,656 | 10,495 | 12,561 | 10,163 | ||
Other Professional Services | 0 | 6 | 0 | (1) | ||
Total Wavelo Platform Services | 12,656 | 10,501 | 12,561 | 10,162 | 5,360 | 3,911 |
Tucows Domain Services: | ||||||
Wholesale | ||||||
Domain Services | 51,557 | 48,504 | 10,365 | 9,583 | ||
Value Added Services | 5,757 | 4,524 | 5,300 | 4,004 | ||
Total Wholesale | 57,314 | 53,028 | 15,665 | 13,587 | ||
Retail | 10,290 | 9,340 | 5,895 | 5,282 | ||
Total Tucows Domain Services | 67,604 | 62,368 | 21,560 | 18,869 | 12,543 | 11,217 |
Corporate: | ||||||
Mobile Services and Eliminations | 1,793 | 1,983 | (2,431) | (754) | (1,675) | 492 |
Network Expenses: | ||||||
Network, other costs | n/a | n/a | (6,023) | (6,862) | n/a | n/a |
Network, depreciation of property and equipment | n/a | n/a | (10,460) | (10,057) | n/a | n/a |
Network, amortization of intangible assets | n/a | n/a | (366) | (366) | n/a | n/a |
Network, impairment | n/a | n/a | (435) | 0 | n/a | n/a |
Total Network Expenses | n/a | n/a | (17,284) | (17,285) | n/a | n/a |
Total | 98,463 | 89,423 | 22,1102 | 20,810 | 12,5772 | 9,178 |
1 Non-GAAP financial measures are described below and reconciled to GAAP measures in the accompanying tables. |
2Ting's gross margin for Q2 2025 includes a one-time, immaterial, non-cash increase in lease expense of |
Notes:
1. Tucows reports all financial information required in conformity with
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
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-
The following table reconciles net income (loss) to Adjusted EBITDA (in thousands of US dollars):
3 Months ended June 30 | 6 Months ended June 30 | |||
2025 | 2024 | 2025 | 2024 | |
Net income (Loss) for the period** | (15,637) | (18,604) | (30,770) | (45,088) |
Less: | ||||
Provision (recovery) for income taxes | 2,265 | 1,220 | 4,431 | 2,994 |
Depreciation of property and equipment | 10,539 | 10,173 | 20,999 | 20,160 |
Impairment of property and equipment | 435 | - | 639 | 53 |
Loss (gain) on disposition of property and equipment | (1,788) | - | (1,788) | - |
Amortization of intangible assets | 1,115 | 1,201 | 2,321 | 2,880 |
Interest expense, net | 13,621 | 12,553 | 27,234 | 24,432 |
Stock-based compensation | 1,386 | 1,702 | 2,891 | 3,575 |
Unrealized loss (gain) on foreign exchange revaluation of foreign denominated monetary assets and liabilities | (72) | 164 | (441) | 554 |
Acquisition and transition costs* | 713 | 769 | 732 | 3,820 |
Adjusted EBITDA | 12,577 | 9,178 | 26,248 | 13,380 |
* 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. |
** Net Income (Loss) for Q2 2025 includes a one-time, immaterial, non-cash increase in lease expense of |
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):
3 Months ended June 30 | 6 Months ended June 30 | |||
2025 | 2024 | 2025 | 2024 | |
Net Income (Loss) for the period** | (15,637) | (18,604) | (30,770) | (45,088) |
Less: | ||||
Acquisition and transition costs* | 713 | 769 | 732 | 3,820 |
Impairment of property and equipment | 435 | 0 | 639 | 53 |
Loss (gain) on disposition of property and equipment | (1,788) | 0 | (1,788) | 0 |
Adjusted Net Income (Loss)¹ for the period | (16,277) | (17,835) | (31,187) | (41,215) |
Adjusted Basic Earnings (Loss) Per Common Share¹ | (1.47) | (1.63) | (2.82) | (3.77) |
* 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. |
** Net Income (Loss) for Q2 2025 includes a one-time, immaterial, non-cash increase in lease expense of |
Management Commentary
Concurrent with the dissemination of its quarterly financial results news release at 5:05 p.m. ET on Thursday, August 7, 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, August 14, 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, August 26, 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.
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 approximately 24 million domain names and millions of value-added services through a global reseller network of over 35,000 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
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SOURCE Tucows Inc.
FAQ
What were Tucows (TCX) key financial results for Q2 2025?
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What is Tucows (TCX) current cash position as of Q2 2025?
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What caused the decrease in Ting's gross margin for Tucows (TCX) in Q2 2025?
