#Canada #Toronto #Q2 Earnings #Tucows #Adjusted EBITDA

Tucows Inc. Reports Impressive Q2 Growth

In its financial release dated August 7, 2025, Tucows Inc. (NASDAQ: TCX, TSX: TC) reported strong performance for the second quarter ending June 30, 2025. The company revealed that consolidated net revenue surged to $98.5 million, marking a 10.1% increase compared to the same period in 2024, when revenues were $89.4 million. This impressive growth was driven by robust performance across all three business segments: Ting, Wavelo, and Tucows Domains.

Elliot Noss, the President and CEO, highlighted that the company is on a steady growth trajectory. He noted, "Q2 showed good progress in all three businesses, with topline gains across the board, particularly from Wavelo and Tucows Domains, which exceeded expectations."

Financial Highlights:

1. Gross Profit: The gross profit for Q2 increased by 6.2% to reach $22.1 million, up from $20.8 million in the previous year. This growth is attributed primarily to higher margins from the Wavelo and Tucows Domains sectors.
2. Net Loss and Adjusted Metrics: The company reported a narrowed net loss of $15.6 million, translating to a loss of $1.41 per share, a significant improvement from the $18.6 million loss, or $1.70 per share a year earlier. Adjusted metrics also reflect a positive turn, with adjusted net income loss amounting to $16.3 million versus $17.8 million in 2024.
3. Adjusted EBITDA: Notably, the adjusted EBITDA rose by an impressive 37%, reaching $12.6 million compared to $9.2 million in Q2 2024. This significant boost showcases the company’s improved operational efficiency and strategic cost management practices.

Furthermore, despite facing a one-time expense related to fiber lease adjustments at Ting, Tucows managed to continue its margin expansion trends seen in the first quarter.

Segment Performance Breakdown:

• - Ting Internet Services: Revenue from Ting rose, despite challenges encountered with fiber internet services. Ting recorded approximately $16.4 million in revenue.
• - Wavelo Platform Services: This segment's revenue also saw an increase, with the platform services generating $12.7 million, an increase from the previous year.
• - Tucows Domain Services: This segment significantly contributed to the overall growth, with total revenues reaching $67.6 million, up from $62.4 million a year earlier.

Final Thoughts

As of the end of Q2 2025, Tucows reported cash and cash equivalents of $68.6 million, a solid increase from $55 million at the end of the previous quarter. Noss stated, "Our ongoing efforts to streamline operations and enhance investment strategies are paving the way towards achieving our 2025 guidance."

Investors and analysts will be keenly watching Tucows as it leverages its advancements in capital-light models and operational efficiencies. The company’s commitment to growth through innovation continues to set a promising outlook within the telecommunications and internet services landscape. For further input regarding the upcoming quarters, management's commentary can be accessed on the Tucows investor relations website.

In conclusion, Tucows is making substantial strides in enhancing profitability and operational effectiveness, cementing its position as a key player in the internet services industry. Stakeholders eagerly anticipate how the company will navigate the evolving landscape in the coming quarters and years.