Tucows Posts First Quarter 2026 Revenue and Gross Profit Growth and Positive Operating Cash Flow

Rhea-AI Summary

Tucows (NASDAQ: TCX) reported Q1 2026 results for the period ended March 31, 2026. Consolidated net revenue rose 2.0% to $96.7M and gross profit increased to $24.1M. Net loss widened to $18.1M (−$1.63/share). Adjusted EBITDA declined 15% to $11.7M. Operating cash flow was positive at $3.5M, and cash and restricted cash totaled $61.9M. Management cited Ting revenue growth and domains margin gains, plus investments in Wavelo and legacy mobile obligations as drivers of results.

Positive

• Ting revenue increased by 18.7% to $19.4M in Q1 2026 versus $16.3M
• Net cash from operating activities was $3.5M in Q1 2026 versus $(11.3M) a year ago
• Cash and restricted cash balance of $61.9M at March 31, 2026

Negative

• Adjusted EBITDA declined 15% to $11.7M in Q1 2026
• Net loss widened 20% to $18.1M in Q1 2026 (basic loss per share $1.63)
• Adjusted net loss increased to $16.9M (adjusted EPS $(1.51))

Key Figures

Q1 2026 Net Revenue: $96.7M Q1 2026 Gross Profit: $24.1M Q1 2026 Net Loss: $18.1M +5 more

8 metrics

Q1 2026 Net Revenue $96.7M Q1 2026, up 2.0% from $94.6M in Q1 2025

Q1 2026 Gross Profit $24.1M Q1 2026, up from $23.5M in Q1 2025

Q1 2026 Net Loss $18.1M Q1 2026 vs $15.1M net loss in Q1 2025

Q1 2026 Adjusted EBITDA $11.7M Down 15% from $13.7M in Q1 2025

Operating Cash Flow $3.5M Net cash provided by operating activities in Q1 2026 vs -$11.3M in Q1 2025

Cash & Restricted Cash $61.9M End of Q1 2026 vs $55.0M at end of Q1 2025

Ting Revenue $19.4M Q1 2026 Ting Internet revenue vs $16.3M in Q1 2025

Domains & Wavelo Adj. EBITDA $15.2M Q1 2026 Adjusted EBITDA for Domains and Wavelo combined

Market Reality Check

Price: $15.06 Vol: Volume 23,350 is slightly...

normal vol

$15.06 Last Close

Volume Volume 23,350 is slightly below the 20-day average of 26,580. normal

Technical Price 15.92 is trading below the 200-day MA at 19.27, reflecting a longer-term downtrend.

Peers on Argus

TCX fell 2.14% with relatively light volume while momentum peers SANG and HPAI w...

2 Down

TCX fell 2.14% with relatively light volume while momentum peers SANG and HPAI were also down (about -2.58% and -5.13%), consistent with the scanner’s median move of -3.9% and indicating broader sector pressure.

Historical Context

4 past events · Latest: Apr 23 (Neutral)

Pattern 4 events

Date	Event	Sentiment	Move	Catalyst
Apr 23	Earnings timing update	Neutral	+3.2%	Announcement of Q1 2026 results release date and Q&A process.
Feb 12	Full-year 2025 results	Positive	+5.6%	Reported revenue, gross profit and Adjusted EBITDA growth, beating 2025 guidance.
Feb 12	Stock buyback program	Positive	+5.6%	New $40M open‑market repurchase program with year-long authorization window.
Feb 05	Earnings timing update	Neutral	-2.6%	Scheduled Q4 2025 results release and subsequent investor Q&A timeline.

Pattern Detected

Shares have historically reacted positively to strong fundamental updates and capital return announcements, especially full-year results and buyback news.

Recent Company History

Over the past several months, Tucows has highlighted improving fundamentals and active capital management. In February 2026, strong fiscal 2025 results with higher revenue, gross profit, and Adjusted EBITDA were followed by a $40M buyback authorization, and the stock moved higher after these updates. Earlier and later releases announcing timing for quarterly results drew more muted, mixed reactions. Today’s quarterly update fits into this sequence of incremental performance disclosures following a stronger 2025 base.

Market Pulse Summary

This announcement reported modest Q1 2026 revenue and gross profit growth alongside a larger net los...

Analysis

This announcement reported modest Q1 2026 revenue and gross profit growth alongside a larger net loss but improved operating cash flow of $3.5M. Ting and Domains/Wavelo delivered higher revenue, though Adjusted EBITDA declined due to legacy mobile obligations and Wavelo investment. In light of prior strong 2025 results and the existing buyback authorization, investors may watch how margins, interest expense, and segment‑level profitability evolve across 2026 to gauge progress toward sustainable earnings.

Key Terms

adjusted EBITDA, non-GAAP, stock-based compensation, acquisition and transition costs, +1 more

5 terms

adjusted EBITDA financial

"We delivered positive cash flow this quarter, even with Adjusted EBITDA that was impacted..."

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

non-GAAP financial

"Non-GAAP financial measures are described below and reconciled to GAAP measures..."

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

stock-based compensation financial

"Stock-based compensation | 1,094 | 1,505"

Stock-based compensation is when a company pays employees, directors or consultants with shares or the right to buy shares instead of or in addition to cash. It matters to investors because issuing stock or options spreads ownership thinner (like cutting a pie into more slices), which can reduce each existing share’s claim on profits and can also change reported earnings; investors watch it to assess true cost of running the business and how management is incentivized.

acquisition and transition costs financial

"* Acquisition and transition costs represent transaction-related expenses and transitional expenses."

Expenses incurred when a company buys another business and moves to combine operations, systems, teams and customers—think of paying for a house purchase plus the renovations and moving costs to make it livable. These charges can include legal and advisory fees, severance, IT integration, rebranding, and facility changes. Investors watch them because they reduce short-term profits and cash but can be one-time investments intended to produce future savings or revenue growth.

GAAP financial

"Tucows reports all financial information required in conformity with United States generally accepted accounting principles (GAAP)."

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

AI-generated analysis. Not financial advice.

TORONTO, May 7, 2026 /PRNewswire/ - 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 loss¹ was $16.9 million (adjusted EPS¹ of ($1.51)) in Q1 2026 versus $14.9 million (adjusted EPS¹ 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)

	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 %

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 Profit		Adj. 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
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

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 March 31
	2026 (unaudited)	2025 (unaudited)
Net income (Loss) for the period	(18,107)	(15,133)
Less:
Provision (recovery) for income taxes	2,392	2,166
Depreciation of property and equipment	9,871	10,460
Impairment of property and equipment	280	204
Loss (gain) on disposition of property and equipment	876	-
Amortization of intangible assets	1,103	1,205
Interest expense, net	13,865	13,613
Stock-based compensation	1,094	1,505
Unrealized loss (gain) on foreign exchange revaluation of foreign denominated monetary assets and liabilities	194	(364)
Acquisition and transition costs*	99	15
Adjusted EBITDA	11,667	13,671

* 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 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 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)¹ for the period	(16,852)	(14,914)
Adjusted Basic Earnings (Loss) Per Common Share¹	(1.51)	(1.35)

* 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.

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 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 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.

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SOURCE Tucows Inc.

FAQ

What were Tucows (TCX) Q1 2026 revenue and gross profit figures?

Revenue for Q1 2026 was $96.7M and gross profit was $24.1M. According to the company, revenue rose 2.0% year over year and gross profit increased 3% versus Q1 2025.

Why did Tucows (TCX) report a lower Adjusted EBITDA in Q1 2026?

Adjusted EBITDA fell to $11.7M, down 15%. According to the company, this was mainly due to legacy mobile obligations and increased investment in Wavelo sales and marketing.

How did Ting contribute to Tucows (TCX) Q1 2026 results?

Ting revenue grew to $19.4M in Q1 2026, an increase of about 18.7%. According to the company, Ting's growth was a primary driver of consolidated revenue gains.

What was Tucows (TCX) cash position and operating cash flow at March 31, 2026?

Tucows held $61.9M in cash and restricted cash and reported $3.5M net cash provided by operating activities. According to the company, operating cash flow improved versus Q1 2025.

What adjusted loss per share did Tucows (TCX) report for Q1 2026?

Adjusted basic loss per share for Q1 2026 was $(1.51). According to the company, adjusted net loss was $16.9M after excluding certain acquisition, impairment and transition items.