#Canada #Toronto #Wavelo #Tucows #Ting

Tucows Reports Strong Q3 2025 Results

On November 6, 2025, Tucows Inc. (NASDAQ: TCX) (TSX: TC), a global leader in internet services, announced its unaudited financial results for the third quarter that ended on September 30, 2025. The report indicates a strong performance for the company, with significant growth in revenue and adjusted EBITDA, signaling a positive trend for stakeholders.

Financial Overview

Tucows reported a consolidated net revenue of $98.6 million, marking a 6.8% increase from the $92.3 million reported in Q3 2024. This growth is a result of improved performance across all three business segments of the company: Domains, Wavelo, and Ting.

Gross profit also saw a substantial rise, increasing by 9% to $24.2 million, compared to $22.2 million in the previous year. The uptick in gross profit was heavily influenced by the year-over-year margin improvements from both Wavelo and Tucows Domains.

Despite these positive developments, the company reported a net loss of $23 million for the quarter, equivalent to $2.08 per share, compared to a loss of $22.3 million or $2.03 per share in the same quarter last year. However, the adjusted net loss improved from $19.8 million to $15.8 million, highlighting the company’s ability to manage costs effectively amidst macroeconomic challenges.

Key Growth Metrics

The adjusted EBITDA made significant strides, growing by 53% to reach $13.3 million, surpassing last year’s $8.7 million for the same quarter. This growth trajectory can be attributed to the expanding revenues across all Tucows segments along with operational efficiencies and strategic cost management.

The cash reserves at the end of the third quarter stood at $70.8 million, a slight increase from $68.6 million at the end of the previous quarter, though down from $91.1 million at the close of Q3 2024.

Management Insights

Ivan Ivanov, the CFO of Tucows, emphasized the company's operational leverage, stating, "We’re seeing the operating leverage we’ve been working toward. Broad-based topline growth, strong economics at Wavelo, continued margin expansion from Domains, and a more capital-efficient Ting combined to deliver a 53% increase in Adjusted EBITDA on 9% gross-profit growth.”

This reflects a material achievement in the company's strategic initiatives aimed at simplifying operations and enhancing efficiency, which contributes positively to shareholder value.

Outlook for the Future

Looking ahead, Tucows management is optimistic about continuing this growth momentum. The initiatives in play are expected to bolster the company's health further, providing a clearer path for improvement. With positive projections for the remaining quarters, Tucows endorses potential for robust returns for shareholders in the coming year.

Moreover, management plans to address shareholder inquiries through an audio commentary that will be available following the earnings release, thus maintaining transparency with investors. Questions can also be submitted for further engagement with the company's leadership.

Conclusion

Tucows Inc. stands at a pivotal point in its trajectory, showcasing resilience and growth amid industry challenges. The strategic focus on improving core business operations and exploring new opportunities through innovative technologies is set to pave the way for sustained growth. As it continues to improve its operational metrics and shareholder value, Tucows exemplifies a strong player in the global internet services sector.

For more information on Tucows and its services, you can visit their corporate website at Tucows.