Tucows Q3 2026 gross profit rises 20.5% to $29.1M
At quarter-end, cash and restricted cash totaled $41.0 million, while an agreed Ting lease assignment is expected to release the parent guaranty in spring.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Tucows Inc. (TCX) reported third-quarter 2026 revenue of $100.0 million, up 1.4% year over year. Gross profit was $29.1 million, up 20.5% year over year and 13% sequentially, while Adjusted EBITDA reached $18.6 million, up 39.8% year over year and 51% sequentially. The company attributed gross-profit expansion mainly to a large, non-recurring mobile-contract re-rate within the Corporate segment, alongside year-over-year Ting growth; the re-rate was also the main Adjusted EBITDA driver.
GAAP net loss was $10.3 million, versus $23.0 million in Q3 2025; adjusted net loss was $5.8 million versus $15.8 million. Operating activities used $4.615 million of cash, compared with $1.534 million provided a year earlier. Cash, cash equivalents, restricted cash and restricted cash equivalents totaled $41.0 million at quarter-end, versus $60.2 million at Q2-end. Tucows retired Ting preferred units valued at $149.3 million and repaid $6 million on its syndicated loan. After quarter-end, Tucows agreed to assign Ting’s Colorado Springs lease, an assignment expected to release the parent guaranty in spring.
3 points · 0 major0 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointGross profit increased 20.5% year over year to $29.1 million.
- Moderate pointAdjusted EBITDA rose 39.8% year over year to $18.6 million.
- Moderate pointNet loss narrowed to $10.3 million from $23.0 million in Q3 2025.
Negative
- Moderate pointOperating cash flow was $4.615 million used, versus $1.534 million provided.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Revenue: $100.0 million
Gross profit: $29.1 million
Net loss: $10.3 million
+5 more
8 metrics
Revenue
$100.0 million
Third quarter 2026; up 1.4% year over year
Gross profit
$29.1 million
Third quarter 2026; up 20.5% year over year and 13% sequentially
Net loss
$10.3 million
Third quarter 2026; compared with a $23.0 million net loss in Q3 2025
Adjusted EBITDA
$18.6 million
Third quarter 2026; up 39.8% year over year and 51% sequentially
Adjusted net loss
$5.8 million
Third quarter 2026; compared with $15.8 million in Q3 2025
Net cash used in operating activities
$4.615 million used
Third quarter 2026; compared with $1.534 million provided in Q3 2025
Cash, cash equivalents, restricted cash and restricted cash equivalents
$41.0 million
At the end of Q3 2026; compared with $60.2 million at the end of Q2 2026
Ting preferred units retired
$149.3 million
Retired during the third quarter of 2026
Key Terms
Adjusted EBITDA, non-GAAP financial measures, syndicated loan facility, parent guaranty
4 terms
Adjusted EBITDA financial
"Adjusted EBITDA for the third quarter of 2026 rose 39.8%"
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
"discloses non-GAAP financial measures in press releases"
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.
syndicated loan facility financial
"repaid $6 million on our syndicated loan facility"
A syndicated loan facility is a single large loan arranged and administered by one or more lead lenders but funded by a group of banks or institutional lenders, each taking a share of the credit under one common agreement. It matters to investors because it supplies significant, often long-term funding for a borrower, affecting that company’s cash flow, credit risk profile and overall capital structure—like several lenders pooling to finance a big mortgage.
parent guaranty financial
"expected to release Tucows’ parent guaranty in the spring"
A parent guaranty is a written contractual promise by a parent company to pay or perform obligations if its subsidiary fails to do so. It creates explicit legal liability for the parent for specified debts or performance obligations (for example loans, leases, or contractual duties) and can be unconditional or subject to conditions and limits set in the guaranty document; its enforceability and priority in insolvency depend on the guaranty’s wording and applicable law.
Earnings Snapshot
Revenue: $100.0 million · Guidance included
Third quarter ended September 30, 2026
Revenue
$100.0 million
Up 1.4% year over year
Gross profit
$29.1 million
Up 20.5% year over year and 13% sequentially
Net loss
$10.3 million
Compared with a net loss of $23.0 million in Q3 2025
Adjusted net loss
$5.8 million
Compared with $15.8 million in Q3 2025
Adjusted EBITDA
$18.6 million
Up 39.8% year over year and 51% sequentially
Net cash provided by (used in) operating activities
$4.615 million used
Compared with $1.534 million provided in Q3 2025
Guidance
Management said Tucows remained on track for its 2026 guidance.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How did TCX perform in Q3 2026?
Tucows reported $100.0 million in revenue, $29.1 million in gross profit and $18.6 million in Adjusted EBITDA for Q3 2026. Revenue rose 1.4% year over year; gross profit rose 20.5% and Adjusted EBITDA rose 39.8%.
What obligations did TCX retire or repay?
Tucows retired Ting preferred units valued at $149.3 million and repaid $6 million on its syndicated loan facility.
What drove TCX's gross profit and Adjusted EBITDA growth?
Tucows attributed gross-profit expansion primarily to a large, non-recurring re-rate from renegotiating its mobile contract within the Corporate segment, as well as year-over-year Ting growth. The company said the Corporate-segment re-rate was the main Adjusted EBITDA driver.
What is expected from TCX's Colorado Springs lease assignment?
After quarter-end, Tucows agreed to assign Ting’s Colorado Springs lease. The assignment is expected to release Tucows’ parent guaranty in the spring.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
___________________________________________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): November 5, 2026
(Exact Name of Registrant Specified in Charter)
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
| (Address of Principal Executive Offices) | (Zip Code) | |||||||
Registrant’s telephone number, including area code: (416 ) 535-0123
Not Applicable
___________________________________
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Securities registered pursuant to Section 12(b) of the Exchange Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Item 2.02. Results of Operations and Financial Condition.
On November 5, 2026 Tucows Inc., a Pennsylvania corporation (the “Company”), issued a press release reporting its financial results for the third quarter ended September 30, 2026. A copy of such press release is filed herewith as Exhibit 99.1.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | |||||||
| 99.1 | Press Release of Tucows Inc. dated November 5, 2026, reporting financial results for the third quarter ended September 30, 2026. | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
- 2 -
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| TUCOWS INC. | ||||||||
| By: | /s/ Ivan Ivanov | |||||||
| Ivan Ivanov | ||||||||
| Chief Financial Officer | ||||||||
Dated: November 5, 2026
Tucows Reports Third Quarter Results In Line with Expectations
with Progress on Balance Sheet Obligations
TORONTO, November 5, 2026 – Tucows Inc. (NASDAQ:TCX, TSX:TC), a global internet services leader, today reported its unaudited financial results for the third quarter ended September 30, 2026. All figures are in U.S. dollars.
“Adjusted EBITDA and gross profit grew year over year, and we remain on track for our 2026 guidance,” said David Woroch, President and Chief Executive Officer of Tucows. “We also retired the Ting preferred units valued at $149.3 million, and repaid $6 million on our syndicated loan facility. After quarter end, we agreed to assign Ting’s Colorado Springs lease, which is expected to release Tucows’ parent guaranty in the spring. Each of these steps makes the business simpler and more flexible than it was a quarter ago.”
Financial Results
Consolidated net revenue increased 1.4% year over year to $100.0 million in the third quarter of 2026, driven by revenue growth at Ting.
Gross profit for the third quarter of 2026 increased 20.5% to $29.1 million from the third quarter of 2025, and improved 13% sequentially. Both the year-over-year and sequential expansion was driven primarily by a large, non-recurring re-rate from the renegotiation of our mobile contract within the Corporate segment, as well as year-over-year growth from Ting.
Net Loss for the third quarter was $10.3 million (EPS of $(0.92), compared with a net loss of $23.0 million (EPS of $(2.08)), in Q3 2025. Adjusted net loss¹ was $5.8 million (adjusted EPS¹ of $(0.52)) in Q3 2026 versus an Adjusted net loss¹ of $15.8 million (adjusted EPS¹ of $(1.42)) in Q3 2025.
Adjusted EBITDA¹ for the third quarter of 2026 rose 39.8% to $18.6 million from the third quarter of 2025, and improved 51% sequentially. The Ting segment had strong Adjusted EBITDA performance both year over year and sequentially, but the main driver was the impact in our Corporate segment from our mobile contract re-rate.
We ended the third quarter of 2026 with cash and cash equivalents, and restricted cash and restricted cash equivalents of $41.0 million. This compares with $60.2 million at the end of the second quarter of 2026 and $70.8 million at the end of the third quarter of 2025.
Summary Financial Results
(In Thousands of US Dollars, except Per Share data)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
| 2026 (unaudited) | 2025 (unaudited) | % Change (unaudited) | 2026 (unaudited) | 2025 (unaudited) | % Change (unaudited) | |||||||||||||||
Net Revenues | 99,975 | 98,558 | 1% | 297,188 | 291,630 | 2% | ||||||||||||||
Gross Profit | 29,127 | 24,181 | 20% | 79,041 | 69,822 | 13% | ||||||||||||||
Income Earned on Sale of Transferred Assets, net | 2,381 | 3,020 | (21)% | 7,375 | 8,873 | (17)% | ||||||||||||||
Net Income (Loss) | (10,273) | (23,019) | 55% | (48,851) | (53,789) | 9% | ||||||||||||||
Adjusted Net Income (Loss)¹ | (5,804) | (15,788) | 63% | (40,170) | (46,979) | 14% | ||||||||||||||
Basic earnings (Loss) per common share | (0.92) | (2.08) | 56% | (4.38) | (4.87) | 10% | ||||||||||||||
Adjusted Basic earnings (Loss) per common share¹ | (0.52) | (1.42) | 64% | (3.60) | (4.25) | 15% | ||||||||||||||
Adjusted EBITDA¹ | 18,554 | 13,269 | 40% | 42,518 | 39,517 | 8% | ||||||||||||||
Net cash provided by (used in) operating activities | (4,615) | 1,534 | (401)% | 845 | (3,151) | 127% | ||||||||||||||
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 September 30 | 3 Months Ended September 30 | 3 Months Ended September 30 | ||||||||||||||||||
| 2026 (unaudited) | 2025 (unaudited) | 2026 (unaudited) | 2025 (unaudited) | 2026 (unaudited) | 2025 (unaudited) | |||||||||||||||
| DOMAINS AND WAVELO SERVICES | ||||||||||||||||||||
| Tucows Domain Services: | ||||||||||||||||||||
| Wholesale | ||||||||||||||||||||
| Domain Services | 48,875 | 51,888 | ||||||||||||||||||
| Value Added Services | 5,088 | 6,107 | ||||||||||||||||||
| Total Wholesale | 53,963 | 57,995 | ||||||||||||||||||
| Retail | 9,945 | 9,842 | ||||||||||||||||||
| Total Tucows Domain Services | 63,908 | 67,837 | 17,832 | 19,105 | 11,064 | 12,097 | ||||||||||||||
| Wavelo Services: | 11,725 | 11,856 | 7,070 | 7,674 | 4,569 | 4,285 | ||||||||||||||
| Total Domains and Wavelo Services | 75,633 | 79,693 | 24,902 | 26,779 | 15,633 | 16,382 | ||||||||||||||
| TING INTERNET SERVICES | ||||||||||||||||||||
| Fiber Internet Services | 18,021 | 16,976 | ||||||||||||||||||
| Construction Services | 4,282 | — | ||||||||||||||||||
| Total Ting | 22,303 | 16,976 | 2,700 | 339 | 1,506 | (882) | ||||||||||||||
| CORPORATE & OTHER | ||||||||||||||||||||
| Mobile Services and Eliminations | 2,039 | 1,889 | 1,525 | (2,937) | 1,415 | (2,231) | ||||||||||||||
| Total | 99,975 | 98,558 | 29,127 | 24,181 | 18,554 | 13,269 | ||||||||||||||
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 loss to Adjusted EBITDA (in thousands of US dollars):
| 3 Months Ended September 30 | 9 Months Ended September 30 | |||||||||||||
| 2026 (unaudited) | 2025 (unaudited) | 2026 (unaudited) | 2025 (unaudited) | |||||||||||
| Net income (Loss) for the period | (10,273) | (23,019) | (48,851) | (53,789) | ||||||||||
| Less: | ||||||||||||||
| Provision (recovery) for income taxes | 1,988 | 2,456 | 7,510 | 6,887 | ||||||||||
| Depreciation of property and equipment | 10,212 | 10,405 | 30,425 | 31,404 | ||||||||||
| Impairment of property and equipment | — | 10,885 | 614 | 11,524 | ||||||||||
| Loss (gain) on disposition of property and equipment | (1) | (3,965) | 827 | (5,753) | ||||||||||
| Amortization of intangible assets | 696 | 1,072 | 2,497 | 3,393 | ||||||||||
| Interest expense, net | 10,689 | 13,901 | 39,004 | 41,135 | ||||||||||
| Stock-based compensation | 962 | 1,387 | 3,220 | 4,278 | ||||||||||
| Unrealized loss (gain) on foreign exchange revaluation of foreign denominated monetary assets and liabilities | (189) | (164) | 32 | (601) | ||||||||||
| Acquisition, transaction and transition costs* | 4,470 | 311 | 7,240 | 1,039 | ||||||||||
| Adjusted EBITDA | 18,554 | 13,269 | 42,518 | 39,517 | ||||||||||
* 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, 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 September 30 | 9 Months Ended September 30 | |||||||||||||
| 2026 (unaudited) | 2025 (unaudited) | 2026 (unaudited) | 2025 (unaudited) | |||||||||||
| Net Income (Loss) for the period | (10,273) | (23,019) | (48,851) | (53,789) | ||||||||||
| Less: | ||||||||||||||
| Acquisition and transition costs* | 4,470 | 311 | 7,240 | 1,039 | ||||||||||
| Impairment of property and equipment | — | 10,885 | 614 | 11,524 | ||||||||||
| Loss (gain) on disposition of property and equipment | (1) | (3,965) | 827 | (5,753) | ||||||||||
| Adjusted Net Income (Loss)¹ for the period | (5,804) | (15,788) | (40,170) | (46,979) | ||||||||||
| Adjusted Basic Earnings (Loss) Per Common Share¹ | (0.52) | (1.42) | (3.60) | (4.25) | ||||||||||
* 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, November 5, 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, November 12, 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, November 18, 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 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. 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.
Contact:
Monica Webb
Vice President, Investor Relations
647.898.9924
mwebb@tucows.com