Tucows Reports Strong Fiscal 2025 Results; Beats Guidance

Rhea-AI Summary

Tucows (NASDAQ: TCX) reported strong fiscal 2025 results with consolidated net revenue of $390.3M (up 8% vs. 2024) and gross profit of $93.95M (up 13%). Adjusted EBITDA rose to $50.6M (up 45%) and beat 2025 guidance by $3.6M. Cash and restricted cash totaled $64.2M at year-end. Management cited margin gains at Domains and Wavelo and reduced Ting network costs as drivers of improved profitability.

Positive

• Revenue +8% to $390.3M for 2025
• Gross profit +13% to $93.95M for 2025
• Adjusted EBITDA +45% to $50.6M and beat guidance by $3.6M
• Margin expansion in Domains and improved Wavelo economics

Negative

• Q4 Adjusted EBITDA down 14% year-over-year to $11.1M
• Adjusted net loss for Q4 widened 21% to $(1.73) per share
• Cash and restricted cash fell ~12% to $64.2M year-end

Key Figures

FY 2025 net revenue: 390,300 (thousands of US$) FY 2025 gross profit: 93,954 (thousands of US$) FY 2025 Adjusted EBITDA: 50,598 (thousands of US$) +5 more

8 metrics

FY 2025 net revenue 390,300 (thousands of US$) 12 months ended December 31, 2025; up 8% vs 2024

FY 2025 gross profit 93,954 (thousands of US$) 12 months ended December 31, 2025; up 13% vs 2024

FY 2025 Adjusted EBITDA 50,598 (thousands of US$) 12 months ended December 31, 2025; up 45% vs 2024 and beat guidance by $3.6M

Q4 2025 net revenue 98,670 (thousands of US$) Quarter ended December 31, 2025; up 6.0% vs Q4 2024

Q4 2025 gross profit 24,132 (thousands of US$) Quarter ended December 31, 2025; up 14% vs Q4 2024

Q4 2025 net loss 22,030 (thousands of US$) Quarter ended December 31, 2025; improved from 42,475 (thousands) loss in Q4 2024

Q4 2025 Adjusted EBITDA 11,081 (thousands of US$) Quarter ended December 31, 2025; down 14% vs Q4 2024

Cash & equivalents $64.2 million Cash, cash equivalents and restricted as of Q4 2025 end

Market Reality Check

Price: $17.75 Vol: Volume 22,311 is in line ...

normal vol

$17.75 Last Close

Volume Volume 22,311 is in line with the 20-day average of 22,469 (relative volume 0.99). normal

Technical Shares at 17.745 are trading below the 200-day MA of 19.99, and about 29.5% under the 52-week high of 25.17.

Peers on Argus

TCX was down 5.34% while several peers in Software/Infrastructure also traded lo...

1 Up

TCX was down 5.34% while several peers in Software/Infrastructure also traded lower: SANG -6.57%, BKKT -3.27%, PAYS -3.49%, VERI -3.41%, ZENA -1.07%. Momentum scanner only flagged REKR, which was up.

Historical Context

5 past events · Latest: Feb 05 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 05	Earnings timing notice	Neutral	-2.6%	Announced schedule and Q&A process for Q4 2025 results and commentary.
Nov 06	Leadership succession	Neutral	-0.8%	Named new CEO and outlined Ting strategic review alongside Q3 2025 results.
Nov 06	Q3 2025 earnings	Positive	-0.8%	Reported Q3 revenue and gross profit growth with higher Adjusted EBITDA and YTD gains.
Oct 23	Earnings timing notice	Neutral	+0.2%	Set date and process for Q3 2025 results and investor Q&A submissions.
Sep 08	AI product launch	Positive	+1.7%	Launched Wavelo "Free Your Data" to enable real-time data for AI in telecom.

Pattern Detected

Recent news (earnings timing, leadership change, Q3 results, AI product launch) often saw modest to negative next-day moves, even on operationally positive updates.

Recent Company History

Over the past six months, TCX news has focused on financial reporting cadence, leadership transition, and operating performance. Q3 2025 results on Nov 6, 2025 showed revenue and gross profit growth with improved adjusted metrics, yet the stock slipped modestly. Announcements around earnings dates on Oct 23, 2025 and Feb 5, 2026 also saw small negative or flat reactions. A Wavelo AI-related product launch on Sep 8, 2025 produced a limited positive move. Against this backdrop, the current full‑year 2025 beat on Adjusted EBITDA continues a theme of operational progress not consistently reflected in price.

Market Pulse Summary

This announcement highlights solid 2025 execution for TCX, with revenue up 8%, gross profit up 13%, ...

Analysis

This announcement highlights solid 2025 execution for TCX, with revenue up 8%, gross profit up 13%, and Adjusted EBITDA of 50,598 (thousands of US$), beating guidance by $3.6M. At the same time, GAAP net loss for the year remained sizable at $75.8M, and Q4 2025 Adjusted EBITDA fell 14% year over year. Investors may track progress on Ting’s strategic review, margin trends in Domains and Wavelo, cash levels around $64.2M, and how non‑GAAP improvements translate into eventual GAAP profitability.

Key Terms

adjusted ebitda, gaap, non-gaap financial measures, stock-based compensation, +1 more

5 terms

adjusted ebitda financial

"We generated $50.6 million in Adjusted EBITDA—up 45% year over year..."

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.

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.

non-gaap financial measures financial

"the Company discloses non-GAAP financial measures in press releases and on investor conference calls..."

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.

stock-based compensation financial

"Stock-based compensation | 2,861 | 1,638 | 7,139 | 7,021"

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.

foreign currency transactions financial

"Gains and losses from unrealized foreign currency transactions removes the unrealized effect..."

Foreign currency transactions are business deals—sales, purchases, loans or investments—priced in a currency different from the company’s reporting currency. Because exchange rates move, the value of those transactions when converted to the company’s books can rise or fall, creating accounting gains or losses; like buying something abroad where changing exchange rates change how much you actually paid. Investors watch these effects because they can materially change reported revenue, expenses, cash flow and debt levels, altering profitability and risk.

AI-generated analysis. Not financial advice.

TORONTO, Feb. 12, 2026 /PRNewswire/ - Tucows Inc. (NASDAQ: TCX) (TSX: TC), a global internet services leader, today reported its unaudited financial results for the fourth quarter and full year ended December 31, 2025. All figures are in U.S. dollars.

"2025 was a strong execution year for Tucows with improved profitability across the company," said David Woroch, CEO of Tucows. "For the full year, revenue increased 8% versus 2024, supported by contributions from all three businesses, and gross profit rose 13%, driven by improved economics at Wavelo, continued margin expansion in Domains, and reduced network expenses at Ting. We generated $50.6 million in Adjusted EBITDA—up 45% year over year—and exceeded our 2025 guidance by $3.6 million, led by outperformance in Domains and Wavelo. We remain focused on strengthening the business through operational and capital efficiency initiatives, and with the ongoing Ting strategic process, we believe we are building a more resilient earnings profile and a stronger foundation for long-term value."

Financial Results

Consolidated net revenue for the fourth quarter of 2025 increased 6.0% to $98.7 million from $93.1 million for the fourth quarter of 2024, driven by revenue gains from all three Tucows businesses.

Gross profit for the fourth quarter of 2025 increased 14% to $24.1 million from $21.2 million from the fourth quarter of 2024. The increase in gross profit was driven by strong year-over-year margin gains from Wavelo and Tucows Domains, as well as a decrease in network expenses at Ting.

Net loss for the fourth quarter was $22.0 million ($1.98 per share), compared with a net loss of $42.5 million ($3.86 per share) in Q4 2024. Adjusted net loss¹ was $19.2 million (adjusted EPS¹ of ($1.73)) in Q4 2025 versus $15.8 million (adjusted EPS¹ of $(1.43)) in Q4 2024.

Adjusted EBITDA¹ for the fourth quarter of 2025 came down 14% to $11.1 million from $12.8 million for the fourth quarter of 2024. The year-over-year difference was driven primarily by obligations associated with our legacy mobile business.  

We ended the fourth quarter of 2025 with cash and cash equivalents, and restricted cash and restricted cash equivalents of $64.2 million. This compares with $70.8 million at the end of the third quarter of 2025 and $73.2 million at the end of the fourth quarter of 2024.

Summary Financial Results
(In Thousands of US Dollars, except Per Share data)

	3 Months ended December 31			12 Months ended December 31
	2025 (unaudited)	2024 (unaudited)	% Change (unaudited)	2025 (unaudited)	2024 (unaudited)	% Change (unaudited)
Net Revenues	98,670	93,098	6 %	390,300	362,275	8 %
Gross Profit	24,132	21,223	14 %	93,954	83,029	13 %
Income Earned on Sale of Transferred Assets, net	2,771	3,244	(15) %	11,643	13,978	(17) %
Net Income (Loss)	(22,030)	(42,475)	48 %	(75,819)	(109,860)	31 %
Adjusted Net Income (Loss)¹	(19,201)	(15,775)	(22) %	(66,180)	(76,817)	14 %
Basic earnings (Loss) per common share	(1.98)	(3.86)	49 %	(6.85)	(10.02)	32 %
Adjusted Basic earnings (Loss) per common share¹	(1.73)	(1.43)	(21) %	(5.98)	(7.00)	15 %
Adjusted EBITDA¹	11,081	12,849	(14) %	50,598	34,917	45 %
Net cash provided by (used in) operating activities	(2,607)	(4,795)	46 %	(5,758)	(19,745)	71 %

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 December 31		3 Months ended December 31		3 Months ended December 31
	2025 (unaudited)	2024 (unaudited)	2025 (unaudited)	2024 (unaudited)	2025 (unaudited)	2024 (unaudited)
DOMAINS AND WAVELO SERVICES
Tucows Domain Services:
Wholesale
Domain Services	50,705	50,586
Value Added Services	6,279	5,480
Total Wholesale	56,984	56,066
Retail	9,419	9,608
Total Tucows Domain Services	66,403	65,674	19,186	18,432	12,495	11,633
Wavelo Services:	11,715	9,888	6,555	6,141	3,391	3,679
Total Domains and Wavelo Services	78,118	75,562	25,741	24,573	15,886	15,312
TING INTERNET SERVICES
Fiber Internet Services	18,521	15,749	1,600	(1,160)	(861)	(1,468)
CORPORATE & OTHER
Mobile Services and Eliminations	2,031	1,787	(3,209)	(2,190)	(3,944)	(995)
Total	98,670	93,098	24,132	21,223	11,081	12,849

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 December 31		12 Months ended December 31
	2025 (unaudited)	2024 (unaudited)	2025 (unaudited)	2024 (unaudited)
Net income (Loss) for the period	(22,030)	(42,475)	(75,819)	(109,860)
Less:
Provision (recovery) for income taxes	1,622	1,918	8,509	7,986
Depreciation of property and equipment	10,176	10,637	41,580	40,323
Impairment of property and equipment	9	18,262	11,533	19,167
Loss (gain) on disposition of property and equipment	(129)	-	(5,882)	-
Amortization of intangible assets	1,274	1,208	4,667	5,297
Interest expense, net	14,139	13,748	55,274	51,275
Stock-based compensation	2,861	1,638	7,139	7,021
Unrealized loss (gain) on foreign exchange revaluation of foreign denominated monetary assets and liabilities	210	(525)	(391)	(168)
Acquisition and transition costs*	2,949	8,438	3,988	13,876
Adjusted EBITDA	11,081	12,849	50,598	34,917

* 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 December 31		12 Months ended December 31
	2025 (unaudited)	2024 (unaudited)	2025 (unaudited)	2024  (unaudited)
Net Income (Loss) for the period	(22,030)	(42,475)	(75,819)	(109,860)
Less:
Acquisition and transition costs*	2,949	8,438	3,988	13,876
Impairment of property and equipment	9	18,262	11,533	19,167
Loss (gain) on disposition of property and equipment	(129)	0	(5,882)	0
Adjusted Net Income (Loss)¹ for the period	(19,201)	(15,775)	(66,180)	(76,817)
Adjusted Basic Earnings (Loss) Per Common Share¹	(1.73)	(1.43)	(5.98)	(7.00)

* 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, February 12, 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, February 19, 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, February 25, 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 33,000 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 and, including, without limitation, our expectations regarding our ability to realize synergies from the Enom acquisition and our expectation for growth of Ting Internet. 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) full-year 2025 revenue and gross profit figures?

Tucows reported full-year 2025 revenue of $390.3M and gross profit of $93.95M. According to the company, revenue rose 8% and gross profit rose 13% versus 2024, driven by Domains, Wavelo contributions and lower Ting network expenses.

How did Tucows (TCX) perform on Adjusted EBITDA in 2025 versus 2024?

Adjusted EBITDA for 2025 was $50.6M, up 45% year-over-year. According to the company, this outperformance exceeded guidance by $3.6M, led by Domains and Wavelo margin improvements.

What was Tucows (TCX) cash position at the end of Q4 2025 and how did it change?

Tucows held $64.2M in cash and restricted cash at December 31, 2025. According to the company, this declined from $73.2M a year earlier and $70.8M at Q3 2025.

Why did Tucows (TCX) report a weaker Adjusted EBITDA in Q4 2025?

Q4 2025 Adjusted EBITDA fell to $11.1M, down 14% year-over-year. According to the company, the decline was primarily due to obligations tied to the legacy mobile business.

How did Tucows (TCX) net loss and adjusted EPS change in Q4 and full-year 2025?

GAAP net loss improved for the year, while adjusted EPS showed mixed results: Q4 adjusted EPS was $(1.73). According to the company, full-year GAAP loss narrowed and adjusted loss per share improved versus 2024.

What operational drivers did Tucows (TCX) cite for 2025 profitability improvements?

Management pointed to margin gains in Domains, improved Wavelo economics and reduced Ting network expenses. According to the company, these factors contributed to higher gross profit and adjusted EBITDA growth.