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Tucows Inc. Reports Third Quarter Results

Tucows Inc., a leading global internet services provider, recently released its unaudited financial outcomes for the third quarter that ended on September 30, 2026. The report demonstrates a notable year-over-year growth as well as substantial progress on balance sheet obligations. All amounts are listed in U.S. dollars.

Financial Highlights

During the third quarter of 2026, Tucows reported a consolidated net revenue of $100 million, reflecting a year-over-year increase of 1.4%. Noteworthy contributions to this growth stemmed from the revenue produced within their Ting segment, which specializes in internet services. Gross profit for the same period climbed to $29.1 million, marking a robust 20.5% increase from the previous year.

CEO David Woroch emphasized, "Adjusted EBITDA and gross profit grew year over year, and we remain on track for our 2026 guidance." He also noted the successful retirement of Ting preferred units valued at $149.3 million and the repayment of $6 million on a syndicated loan facility. These actions, according to Woroch, not only reduce complexities within the business but also enhance its flexibility, positioning Tucows for future growth.

Significant Financial Achievements

• - Gross Profit Increase: The gross profit not only improved year-over-year but also demonstrated a 13% sequential enhancement.
• - Reduction in Net Loss: Tucows recorded a net loss of $10.3 million for Q3 2026, showing improvement compared to a net loss of $23 million in Q3 2025. This translates to an improved earnings per share (EPS) of $(0.92) compared to $(2.08) a year earlier.
• - Improvement in Adjusted Net Loss: The adjusted net loss for the quarter was reported at $5.8 million, significantly enhancing from an adjusted net loss of $15.8 million in the previous year.
• - Adjusted EBITDA Surge: Adjusted EBITDA soared by 39.8% to $18.6 million from the prior year, along with a sequential increase of 51%.

At the close of Q3 2026, the company's cash and cash equivalents stood at $41 million, a decline from $60.2 million at the end of Q2 2026, yet a decrease largely attributed to operational expenses rather than a lack of liquidity.

Future Outlook

Tucows is optimistic about ongoing organizational improvements and intends to simplify operations further. In line with this strategy, they have agreed to assign the lease of Ting's Colorado Springs location, which is anticipated to release their parent guaranty soon after the quarter's end. Such moves not only streamline operations but pave the way for increasing profitability.

The management underscored that the financial successes achieved in this quarter were significantly aided by the renegotiations of their mobile contract, which were critical in driving growth within their corporate segment.

Conclusion

Overall, Tucows Inc. continues to make meaningful strides towards their financial objectives while maintaining a robust operational base. The upcoming quarters will reflect these improvements, and stakeholders are encouraged to stay informed through management's audio commentary and future financial releases.

By leveraging their core internet services and adapting to market dynamics, Tucows is set on a trajectory of sustained growth and innovation in the sector. For more detailed insights and updates, stakeholders are invited to check Tucows' investor relations portal.

For further information about Tucows' services, including domain management and internet service solutions, please visit Tucows.