Tucows Posts Solid Results in Second Quarter 2026

Rhea-AI Summary

Tucows (NASDAQ: TCX) reported unaudited results for Q2 2026, with consolidated net revenue up 2.1% year over year to $100.6 million and gross profit up 16.6% to $25.8 million. Sequentially, revenue rose 4.0% and gross profit 7%.

Net loss widened to $20.5 million or $1.84 per share from $15.6 million or $1.41 per share in Q2 2025. Adjusted net loss was $17.5 million versus $16.3 million a year earlier. Adjusted EBITDA was $12.3 million, down 2% year over year but up 5.4% sequentially.

Ting Internet Services revenue increased to $21.6 million from $16.4 million, with gross profit improving to $2.5 million from a loss. Domains and Wavelo Services revenue declined to $76.7 million from $80.3 million. Operating cash flow for Q2 was positive at $1.9 million, and cash plus restricted cash ended the quarter at $60.2 million.

Positive

• Net revenue up 2% YoY to $100.6 million in Q2 2026
• Gross profit up 16.6% YoY to $25.8 million in Q2 2026
• Ting revenue up to $21.6 million from $16.4 million YoY
• Ting gross profit improved to $2.5 million from a loss YoY
• Operating cash flow positive $1.9 million in Q2 2026
• Six‑month adjusted net loss improved to $30.2 million from $31.2 million

Negative

• Net loss widened 31% YoY to $20.5 million in Q2 2026
• Adjusted net loss increased to $17.5 million from $16.3 million YoY in Q2
• Adjusted EBITDA down 2% YoY in Q2 and 9% for six months
• Operating cash flow down 71% YoY to $1.9 million in Q2
• Cash and restricted cash fell to $60.2 million from $68.6 million YoY
• Domains and Wavelo revenue declined to $76.7 million from $80.3 million YoY

Market Context

Current platform data classified short positioning as low, so this earnings report lacked a high-sho...

Analysis

Current platform data classified short positioning as low, so this earnings report lacked a high-short-positioning context. Revenue and gross-profit growth contrasted with larger losses and lower adjusted EBITDA; cash balance and operating cash flow remain relevant risk checks.

Key Figures

Net Revenue: $100.6 million Gross Profit: $25.8 million Net Loss: $20.5 million +5 more

8 metrics

Net Revenue $100.6 million Q2 2026; up 2.1% year over year and 4.0% sequentially

Gross Profit $25.8 million Q2 2026; up 16.6% year over year and 7% sequentially

Net Loss $20.5 million Q2 2026; compared with $15.6 million in Q2 2025

Loss Per Share $1.84 per share Q2 2026 net loss per share; compared with $1.41 in Q2 2025

Adjusted Net Loss $17.5 million Q2 2026; compared with $16.3 million in Q2 2025

Adjusted EPS ($1.57) Q2 2026; compared with $(1.47) in Q2 2025

Adjusted EBITDA $12.3 million Q2 2026; down 2.2% year over year and up 5.4% sequentially

Operating Cash Flow $1.936 million Q2 2026 net cash provided by operating activities

Historical Context

5 past events · Latest: Jul 23 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jul 23	Q2 results timing	Neutral	-3.6%	Scheduled Q2 results release and management commentary for August 6
Jun 04	Annual meeting results	Positive	-0.4%	Shareholders elected eight directors and approved executive compensation advisory vote
May 07	Q1 earnings report	Negative	-5.0%	Revenue and cash flow growth accompanied wider loss and lower adjusted EBITDA
Apr 23	Q1 results timing	Neutral	+3.2%	Scheduled Q1 results release and management commentary for May 7
Feb 12	Fiscal 2025 earnings	Positive	+5.6%	Revenue, gross profit, and adjusted EBITDA increased while guidance was exceeded

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Comparable earnings events produced mixed outcomes: fiscal 2025 aligned with a 5.61% gain, while Q1 2026 aligned with a 4.98% decline.

Key Terms

adjusted ebitda, non-gaap financial measures, gaap, adjusted eps

4 terms

adjusted ebitda financial

"Adjusted EBITDA1 for the first quarter of 2026 came down 2.2%"

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 measures financial

"Non-GAAP financial measures are described below"

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

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.

View in glossary

adjusted eps financial

"Adjusted net loss¹ was $17.5 million (adjusted EPS¹ of ($1.57))"

Adjusted earnings per share (adjusted eps) is a measure of a company's profit per share that has been modified to exclude certain one-time or unusual items, such as costs from restructuring or asset sales. It provides a clearer picture of the company’s core performance by removing events that may distort the usual earnings. Investors use adjusted eps to better understand a company's ongoing profitability and compare it more accurately over time.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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TORONTO, Aug. 6, 2026 /PRNewswire/ -- 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)

	3 Months ended June 30			6 Months ended June 30
	2026 (unaudited)	2025 (unaudited)	% Change (unaudited)	2026 (unaudited)	2025 (unaudited)	% Change (unaudited)
Net Revenues	100,556	98,463	2 %	197,213	193,072	2 %
Gross Profit	25,784	22,110	17 %	49,914	45,641	9 %
Income Earned on Sale of Transferred Assets, net	2,480	3,112	(20) %	4,995	5,853	(15) %
Net Income (Loss)	(20,471)	(15,637)	(31) %	(38,578)	(30,770)	(25) %
Adjusted Net Income (Loss)¹	(17,515)	(16,277)	(8) %	(30,158)	(31,191)	3 %
Basic earnings (Loss) per common share	(1.84)	(1.41)	(30) %	(3.46)	(2.79)	(24) %
Adjusted Basic earnings (Loss) per common share¹	(1.57)	(1.47)	(7) %	(2.71)	(2.82)	4 %
Adjusted EBITDA¹	12,297	12,577	(2) %	23,964	26,248	(9) %
Net cash provided by (used in) operating activities	1,936	6,566	(71) %	5,460	(4,685)	217 %

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 June 30		3 Months ended June 30		3 Months ended June 30
	2026 (unaudited)	2025 (unaudited)	2026 (unaudited)	2025 (unaudited)	2026 (unaudited)	2025 (unaudited)
DOMAINS AND WAVELO SERVICES
Tucows Domain Services:
Wholesale
Domain Services	48,836	51,557
Value Added Services	6,303	5,757
Total Wholesale	55,139	57,314
Retail	9,854	10,290
Total Tucows Domain Services	64,993	67,604	19,260	19,311	11,877	12,543
Wavelo Services:	11,755	12,656	6,562	8,552	2,828	5,360
Total Domains and Wavelo Services	76,748	80,260	25,822	27,863	14,705	17,903
TING INTERNET SERVICES
Fiber Internet Services	17,463	16,410
Construction Services	4,132	-
Total Ting	21,595	16,410	2,495	(3,151)	1,520	(3,651)
CORPORATE & OTHER
Mobile Services and Eliminations	2,213	1,793	(2,533)	(2,602)	(3,928)	(1,675)
Total	100,556	98,463	25,784	22,110	12,297	12,577

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 June 30		6 Months ended June 30
	2026 (unaudited)	2025 (unaudited)	2026 (unaudited)	2025 (unaudited)
Net income (Loss) for the period	(20,471)	(15,637)	(38,578)	(30,770)
Less:
Provision (recovery) for income taxes	3,130	2,265	5,522	4,431
Depreciation of property and equipment	10,341	10,539	20,212	20,999
Impairment of property and equipment	334	435	614	639
Loss (gain) on disposition of property and equipment	(48)	(1,788)	828	(1,788)
Amortization of intangible assets	698	1,115	1,801	2,321
Interest expense, net	14,450	13,621	28,315	27,234
Stock-based compensation	1,164	1,386	2,258	2,891
Unrealized loss (gain) on foreign exchange revaluation of foreign denominated monetary assets and liabilities	29	(72)	223	(437)
Acquisition, transaction and transition costs*	2,670	713	2,769	728
Adjusted EBITDA	12,297	12,577	23,964	26,248

* Acquisition, transaction 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 June 30		6 Months ended June 30
	2026 (unaudited)	2025 (unaudited)	2026 (unaudited)	2025 (unaudited)
Net Income (Loss) for the period	(20,471)	(15,637)	(38,578)	(30,770)
Less:
Acquisition and transition costs*	2,670	713	2,769	728
Impairment of property and equipment	334	435	11,533	639
Loss (gain) on disposition of property and equipment	(48)	(1,788)	(5,882)	(1,788)
Adjusted Net Income (Loss)¹ for the period	(17,515)	(16,277)	(30,158)	(31,191)
Adjusted Basic Earnings (Loss) Per Common Share¹	(1.57)	(1.47)	(2.71)	(2.82)

* 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, 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 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, 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

SOURCE Tucows Inc.

FAQ

How did Tucows (TCX) perform financially in Q2 2026?

Tucows reported Q2 2026 net revenue of $100.6 million, up 2% year over year. According to Tucows, gross profit rose 16.6% to $25.8 million, while net loss widened to $20.5 million and Adjusted EBITDA reached $12.3 million.

What drove Tucows Ting Internet results in the second quarter of 2026?

Ting Internet Services revenue increased to $21.6 million in Q2 2026 from $16.4 million a year earlier. According to Tucows, Ting gross profit improved to $2.5 million from a loss, helped by Fiber Internet and Construction Services, contributing to overall margin expansion.

How did Tucows Domains and Wavelo segments perform in Q2 2026?

Domains and Wavelo Services revenue declined to $76.7 million from $80.3 million in Q2 2025. According to Tucows, segment gross profit was $25.8 million, with Tucows Domains maintaining stable gross profit while Wavelo Services saw lower revenue, gross profit, and Adjusted EBITDA year over year.

What was Tucows’ net loss and EPS for Q2 2026 (NASDAQ: TCX)?

Tucows reported a Q2 2026 net loss of $20.5 million, compared with $15.6 million in Q2 2025. According to Tucows, basic loss per common share was $1.84, versus $1.41 a year earlier, while adjusted EPS loss was $1.57.

What was Tucows’ Adjusted EBITDA and operating cash flow in Q2 2026?

Adjusted EBITDA for Q2 2026 was $12.3 million, down 2% year over year but up 5.4% sequentially. According to Tucows, net cash provided by operating activities was $1.9 million, lower than $6.6 million in Q2 2025 but positive year to date.

How strong is Tucows’ cash position after the second quarter of 2026?

Tucows ended Q2 2026 with $60.2 million in cash, cash equivalents, restricted cash, and restricted cash equivalents. According to Tucows, this compares with $61.9 million at the end of Q1 2026 and $68.6 million at the end of Q2 2025.

Where can investors find Tucows’ Q2 2026 management commentary and Q&A?

Tucows posts pre‑recorded Q2 2026 management commentary and transcript on its investor website at tucows.com/investors/financials. According to Tucows, investors can submit questions by email for one week after release, with responses posted as an audio recording and transcript on August 19, 2026.