Q3 2025 Investor presentation 11.06.2025 Nasdaq (TCX) | TSX (TC) Safe harbor statement This presentation may contain forward-looking statements, relating to the Company's operations or to the environment in which it operates, which are based on Tucows Inc.'s operations, estimates, forecasts and projections. These statements are not guarantees of future performance and are subject to important risks, uncertainties and assumptions concerning future conditions that may ultimately prove to be inaccurate or diff ...

Core Insights - Tucows Inc. reported a 6.8% increase in consolidated net revenue for Q3 2025, reaching $98.6 million compared to $92.3 million in Q3 2024, driven by growth across all business segments [3][4] - Adjusted EBITDA saw a significant growth of 53%, amounting to $13.3 million, up from $8.7 million in the same quarter last year, attributed to revenue growth and margin expansion [5][7] - The company ended Q3 2025 with cash and cash equivalents totaling $70.8 million, a slight increase from $68.6 million at the end of Q2 2025 but a decrease from $91.1 million at the end of Q3 2024 [6] Financial Performance - Gross profit for Q3 2025 increased by 9% to $24.2 million from $22.2 million in Q3 2024, driven by strong margin gains from Wavelo and Tucows Domains [3][5] - The net loss for Q3 2025 was $23.0 million ($2.08 per share), compared to a net loss of $22.3 million ($2.03 per share) in Q3 2024, while adjusted net loss improved to $15.8 million (adjusted EPS of $(1.42)) from $19.8 million (adjusted EPS of $(1.81)) in the previous year [4][17] - Year-to-date consolidated Adjusted EBITDA reached $39.5 million, slightly ahead of the company's 2025 guidance [2][5] Segment Performance - Tucows Domains and Wavelo services contributed to the overall revenue growth, with total revenues from Domains and Wavelo services reaching $79.7 million in Q3 2025, up from $74.8 million in Q3 2024 [8] - Ting Internet services reported revenue of $16.976 million in Q3 2025, an increase from $15.310 million in Q3 2024, indicating growth in fiber internet services [8] Management Commentary - The CFO highlighted the operating leverage achieved through broad-based topline growth and margin expansion, indicating a healthier business model moving forward [2][5] - Management expressed confidence in ongoing initiatives aimed at delivering value for shareholders, emphasizing a clearer path to further improvements [2][5]

Revenue Performance - For the three months ended September 30, 2025, the company reported net revenue of $98.6 million, a 7.0% increase from $92.3 million in the same period of 2024[207]. - For the nine months ended September 30, 2025, net revenue reached $291.6 million, up 8.9% from $269.2 million in the prior year[207]. - Total net revenues for the three months ended September 30, 2025 increased by $6.3 million, or 7%, to $98.6 million compared to the same period in 2024, driven by growth in Tucows Domains, Wavelo, and Ting[254]. - For the nine months ended September 30, 2025, total net revenues increased by $22.4 million, or 8%, to $291.6 million compared to the same period in 2024, with significant contributions from Tucows Domains, Wavelo, and Ting[255]. - Ting generated $17.0 million in net revenue during the three months ended September 30, 2025, up $1.7 million, or 11%, driven by subscriber growth on the Fiber network[258]. - Wavelo Platform Services net revenues for the three months ended September 30, 2025 increased by $1.8 million, or 18%, to $11.9 million, supported by incremental revenues from existing and new customers[261]. - Wholesale domain services net revenue increased by $2.0 million, or 4%, to $51.9 million during the three months ended September 30, 2025, due to passthrough price increases and recognition of previously deferred revenue[265]. - Value-added services net revenue increased by $0.9 million, or 17%, to $6.1 million during the three months ended September 30, 2025, driven by strong expiry auction sales[268]. Subscriber and Infrastructure Metrics - As of September 30, 2025, Ting Internet had 52,000 active subscribers, an increase from 50,000 active subscribers as of September 30, 2024[209]. - Ting Internet had access to 126,000 owned infrastructure serviceable addresses as of September 30, 2025, down from 132,000 in the previous year[209]. - Contract liabilities increased by $1.9 million to $158.7 million as of September 30, 2025, primarily due to Ting construction mobilization in a new partner market[256]. - As of September 30, 2025, EchoStar accounted for 12% of total net revenues and represented 51% of total accounts receivable[257]. - Ting Internet had access to 126,000 owned infrastructure serviceable addresses and 52,000 active subscribers as of September 30, 2025, compared to 132,000 and 50,000 respectively in the prior year[260]. Cost and Expense Management - Total cost of revenues for the three months ended September 30, 2025, was $74.4 million, reflecting a $4.3 million increase from $70.1 million in the same period in 2024[285]. - Cost of revenues for Ting's Fiber Internet Services increased by $2.2 million, or 51%, to $6.5 million for the three months ended September 30, 2025, compared to the same period in 2024[288]. - Total cost of revenues for the nine months ended September 30, 2025, increased by $13.9 million, or 7%, to $221.8 million from $207.9 million in the same period in 2024[286]. - Costs for Wholesale domain services for the nine months ended September 30, 2025 increased by $5.6 million, or 5%, to $123.4 million compared to $117.8 million for the same period in 2024[295]. - Costs for retail domain services for the nine months ended September 30, 2025 increased by $0.6 million, or 5%, to $13.0 million compared to $12.4 million for the same period in 2024[299]. - Cost of revenues from Mobile Services and Eliminations for the nine months ended September 30, 2025 increased by $4.2 million or 48%, to $13.0 million compared to $8.8 million for the same period in 2024[302]. - Sales and marketing expenses for the nine months ended September 30, 2025 decreased by $13.7 million, or 28%, to $34.8 million compared to $48.5 million for the same period in 2024[307]. - General and administrative expenses for the nine months ended September 30, 2025 decreased by $1.9 million or 6%, to $28.6 million compared to $30.5 million for the same period in 2024[314]. - Technical operations and development expenses for the nine months ended September 30, 2025 decreased by $0.7 million, or 5%, to $13.4 million compared to $14.1 million for the same period in 2024[311]. - Network expenses for the nine months ended September 30, 2025 decreased by $2.4 million or 5%, to $49.7 million compared to $52.1 million for the same period in 2024[304]. Strategic Initiatives and Future Outlook - The company is reviewing strategic alternatives for the Ting business due to ongoing capital needs[214]. - The company continues to invest in fiber to the home (FTTH) deployments, reflecting ongoing efforts to build networks in areas with strong demand, despite the risks associated with upfront investments[230]. - Wavelo's software solutions are being utilized by EchoStar and Ting to enhance subscriber growth and operational efficiency[216]. - The company continues to evaluate the potential impact of the One Big Beautiful Bill Act on future periods and related disclosures[325]. - The Company plans to fund cash requirements for Tucows businesses excluding Ting solely through operating income for Fiscal 2025[352]. - The company has commenced a process to review strategic alternatives for the Ting business due to ongoing capital needs and potential inability to meet financial obligations[350]. Financial Position and Risks - As of September 30, 2025, cash and cash equivalents decreased by $2.8 million, primarily due to $3.2 million used in operating activities and $12.8 million for additions to property and equipment[332]. - As of September 30, 2025, Ting had $33.7 million in unrestricted cash and cash equivalents, down from $45.4 million as of December 31, 2024[349]. - The Company had $40.1 million in outstanding foreign exchange forward contracts to trade U.S. dollars for Canadian dollars[358]. - A sensitivity analysis indicated that a hypothetical 10% adverse movement in foreign currency exchange rates would decrease net income by approximately $4.0 million for the nine months ended September 30, 2025[360]. - The company evaluates credit risk concentrations primarily related to cash equivalents, marketable securities, foreign exchange contracts, and accounts receivable[361]. - Interest rate risk exposure is primarily related to the 2023 Credit Agreement[362]. - The company will continue to monitor foreign exchange exposure risks and may take additional actions to hedge or mitigate these risks in the future[360].

Core Points - Tucows Inc. will report its financial results for Q3 2025 on November 6, 2025, at 5:05 p.m. ET [1] - A pre-recorded audio commentary and transcript discussing the quarter and outlook will be available on the Tucows website concurrently with the financial results release [2] - Shareholders and analysts can submit questions to management for a week following the results announcement, with responses to be posted on November 25, 2025 [3] Company Overview - Tucows connects people to internet access through various services including communications technology, domain services, and fiber-optic infrastructure [4] - The company operates Ting, which provides fixed fiber internet access, and Wavelo, a telecommunications software suite for service providers [4] - Tucows Domains manages approximately 24 million domain names and offers services through a global reseller network of over 35,000 web hosts and ISPs [4]

Core Insights - Wavelo has launched "Free Your Data," a solution aimed at enabling Communications Service Providers (CSPs) to enhance their AI strategies by unlocking data trapped in legacy systems [1][2][3] Group 1: Product Offering - "Free Your Data" addresses the challenge of accessing customer and network data that is often stuck in outdated BSS/OSS systems, which hinders CSPs from leveraging AI effectively [2][4] - The solution captures latent data from legacy systems for real-time orchestration, transforming static APIs into real-time event streams, thus allowing immediate data value extraction [2][3] Group 2: Industry Context - The telecom industry faces significant challenges in AI transformation due to outdated infrastructure that prioritizes operational efficiency over data accessibility [4] - Wavelo's offering is timely as CSPs seek to scale their AI initiatives without incurring high costs or operational disruptions associated with system overhauls [4] Group 3: Competitive Advantage - Wavelo's system-agnostic, event-driven architecture allows operators to modernize their systems at their own pace, providing a competitive edge in customer experience and operational efficiency [3][5] - The ability to feed AI platforms with real-time data streams is crucial for CSPs aiming to enhance productivity and innovation [3][4] Group 4: Future Outlook - Wavelo's "Free Your Data" is positioned to set a new standard for AI-ready infrastructure in telecom, enabling operators to compete effectively in an AI-driven future [5] - The solution was showcased at industry events, demonstrating its capability to activate untapped data across complex ecosystems for AI-driven strategies [4][5]

Core Insights - Tucows Inc. (TCX) shares increased by 12.7% following the second-quarter 2025 results, outperforming the S&P 500 index's 0.7% growth, but experienced an 8.4% decline over the past month while the S&P 500 rose by 2.3% [1] Financial Performance - Net revenues for Q2 2025 rose by 10% to $98.5 million from $89.4 million in Q2 2024, with gross profit increasing by 6% to $22.1 million from $20.8 million, driven by margin expansion in Wavelo Platform and Tucows Domains segments [2] - The net loss narrowed to $15.6 million, or $1.41 per share, from $18.6 million, or $1.70 per share, a year earlier, while adjusted EPS improved to a loss of $1.47 from a loss of $1.63 [3] - Adjusted EBITDA surged by 37% to $12.6 million from $9.2 million, reflecting broad-based revenue growth and cost discipline [3] Segment Performance - Ting Internet Services saw revenues increase by 12% year over year to $16.4 million, with an 8% rise in subscribers to 52,100, and adjusted EBITDA loss narrowed to $0.6 million from $6.4 million [4] - Wavelo Platform Services achieved a 20.5% revenue increase year over year to $12.7 million, with adjusted EBITDA climbing 37% to $5.4 million [5] - Tucows Domains revenues rose by 8% year over year to $67.6 million, with adjusted EBITDA increasing by 12% to $12.5 million, despite a 2% decline in domains under management [6] Management Insights - CEO Elliot Noss noted progress towards the $47 million full-year adjusted EBITDA target, emphasizing operational transformation in Ting Internet and disciplined growth in Wavelo Platform [7] - The shift towards partner infrastructure in Ting Internet markets is seen as a strategic move to enhance capital efficiency while maintaining ISP relationships [7] Operational Factors - The quarter's performance benefited from strong revenue contributions across all segments, with notable margin expansion in Wavelo Platform and Tucows Domains, alongside cost discipline and AI-driven efficiency gains [8] - A one-time lease accounting adjustment at Ting Internet temporarily reduced its gross margin by $2.7 million [8] Future Guidance - Tucows reiterated confidence in achieving its 2025 adjusted EBITDA guidance of $47 million, supported by ongoing operational improvements and targeted marketing initiatives [9][10] Strategic Developments - In Q2, Ting Internet sold non-strategic fiber network assets for over $15 million, aligning with the strategy to transition to a pure-play ISP and reallocating capital towards higher-return opportunities [11]

Financial Data and Key Metrics Changes - Tucows reported a consolidated top line growth of 10% year over year in Q2 2025, with gross profit increasing by 6% and adjusted EBITDA rising by 37% to $12.6 million [6][32] - Corporate net debt decreased to $190.3 million, marking a fifth consecutive quarterly decline, with net leverage at 3.14 times and interest coverage at 3.99 times [6][36] - Year-to-date adjusted EBITDA reached $26.2 million, slightly ahead of the full year guidance of $47 million [6][36] Business Line Data and Key Metrics Changes - Tucows Domains experienced an 8% year-over-year revenue increase in Q2, with gross margin expanding by 14% and adjusted EBITDA growing by 12% [10][33] - WaveLow's revenue increased by 20.5% year over year to $12.7 million, with gross margin rising by 23.6% [16][34] - Ting's revenue grew by 12% year over year to $16.4 million, driven by an 8% increase in subscribers and small ARPU improvements [23][34] Market Data and Key Metrics Changes - The overall combined renewal rate for all TLDs across Tucows' brands was 75%, slightly declining but above the industry average [12] - The wholesale channel revenue rose by 8% year over year to $57.3 million, while retail channel revenue increased by 10% to $10.3 million [11] Company Strategy and Development Direction - Tucows is focusing on executing the Radix migration and developing hosting and billing initiatives, while pursuing new GTLD opportunities slated for 2026 [15] - The company is transitioning from building networks to a pure play ISP model, with a focus on selling non-strategic assets [26][40] - The strategy includes leveraging AI tools to improve customer acquisition costs and conversion rates [30][41] Management's Comments on Operating Environment and Future Outlook - The management noted mixed economic signals but remains prudent and conservative in their approach [38] - The US fiber market is transitioning towards execution, with increasing demand and a shift in capital strategies [41] - The company is actively evaluating strategic paths to unlock value and support long-term success [43] Other Important Information - Tucows signed a contract with Radix to provide technical services, with migration expected towards the end of the year [9][14] - The company successfully sold non-strategic assets for over $15 million in three transactions [26][36] Q&A Session Summary - No live Q&A session was held; instead, questions were invited via email, with responses to be posted on August 26 [2][3][44]

Core Insights - Tucows Inc. reported a 10.1% increase in consolidated net revenue for Q2 2025, reaching $98.5 million compared to $89.4 million in Q2 2024, driven by strong performance across all business segments [3][8] - The company achieved a 6.2% increase in gross profit, totaling $22.1 million, attributed to margin gains from Wavelo and Tucows Domains, despite a decrease in gross margin from Ting due to a one-time lease adjustment [4][8] - Adjusted EBITDA grew by 37% to $12.6 million, reflecting improved operational efficiency and revenue growth across all segments [6][8] Financial Performance - Net loss for Q2 2025 decreased to $15.6 million, or $1.41 per share, compared to a net loss of $18.6 million, or $1.70 per share, in Q2 2024, indicating improved operational efficiency [5][8] - Adjusted net loss for Q2 2025 was $16.3 million, or $1.47 per share, compared to an adjusted net loss of $17.8 million, or $1.63 per share, in Q2 2024 [5][8] - Cash and cash equivalents at the end of Q2 2025 were $68.6 million, up from $55.0 million at the end of Q1 2025 and $52.2 million at the end of Q2 2024 [7][8] Business Segment Performance - Ting Internet Services generated revenue of $16.4 million, up from $14.6 million in Q2 2024, with gross profit decreasing due to a one-time lease expense [9][10] - Wavelo Platform Services reported revenue of $12.7 million, an increase from $10.5 million in Q2 2024, with gross profit also rising [10] - Tucows Domain Services achieved revenue of $67.6 million, compared to $62.4 million in Q2 2024, with gross profit increasing to $21.6 million [10]

[PART I FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, and cash flows, along with detailed notes on accounting policies and key financial data Condensed Consolidated Statements of Operations Highlights | Indicator | Q2 2025 (in millions) | Q2 2024 (in millions) | H1 2025 (in millions) | H1 2024 (in millions) | | :--- | :--- | :--- | :--- | :--- | | **Net Revenues** | $98.5 | $89.4 | $193.1 | $176.9 | | **Gross Profit** | $22.1 | $20.8 | $45.6 | $39.1 | | **Loss from Operations** | $(2.9) | $(8.6) | $(4.9) | $(25.1) | | **Net Loss** | $(15.6) | $(18.6) | $(30.8) | $(45.1) | | **Basic and Diluted Loss per Share** | $(1.41) | $(1.70) | $(2.79) | $(4.12) | Condensed Consolidated Balance Sheet Highlights | Indicator | June 30, 2025 (in millions) | December 31, 2024 (in millions) | | :--- | :--- | :--- | | **Total Current Assets** | $211.7 | $205.4 | | **Total Assets** | $742.2 | $758.8 | | **Total Current Liabilities** | $200.6 | $199.9 | | **Total Liabilities** | $863.9 | $854.1 | | **Total Stockholders' Deficit** | $(121.7) | $(95.3) | Condensed Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30) | Indicator | 2025 (in millions) | 2024 (in millions) | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | $(4.7) | $(10.4) | | **Net cash provided by (used in) financing activities** | $(2.5) | $(12.0) | | **Net cash provided by (used in) investing activities** | $2.5 | $(30.4) | | **Increase (decrease) in cash and cash equivalents** | $(4.6) | $(52.8) | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes on the company's accounting policies, segment information, debt, revenue recognition, and other significant financial disclosures - The company operates through three main businesses: Ting (high-speed internet), Wavelo (platform services for Communication Service Providers), and Tucows Domains Services (domain name registration and related services)[17](index=17&type=chunk) - Effective Q1 2025, the company updated the format of its financial statements to condense certain line items for improved clarity, with no impact on previously reported financial results[20](index=20&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk) - As of June 30, 2025, the company held foreign exchange forward contracts with a notional amount of **$55.6 million** to hedge against fluctuations in the Canadian dollar[33](index=33&type=chunk) - Goodwill remained unchanged at **$130.4 million**, with **83%** allocated to Tucows Domains and **17%** to the Ting segment. No impairment was recognized[38](index=38&type=chunk)[39](index=39&type=chunk) - The company was in compliance with all financial covenants for its **$240 million** 2023 Credit Facility, which had an outstanding principal of **$192.9 million** as of June 30, 2025[44](index=44&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk) - Ting's securitized notes payable totaled **$289.6 million** as of June 30, 2025, secured by fiber-network assets and customer contracts[58](index=58&type=chunk) - For H1 2025, the company recorded an income tax expense of **$4.4 million** on a pre-tax loss of **$26.3 million**. The effective tax rate differs from the statutory rate primarily due to a valuation allowance on net operating losses and the impact of foreign earnings[64](index=64&type=chunk) - In H1 2025, one customer in the Wavelo segment accounted for **12%** of total revenue (**$23.1 million**) and represented **56%** of accounts receivable at period end[87](index=87&type=chunk)[88](index=88&type=chunk) - Ting's redeemable preferred units, classified as a liability, had a balance of **$122.2 million** as of June 30, 2025. Ting accrued the **$4.6 million** preferred return for Q2 2025 instead of paying in cash[156](index=156&type=chunk)[157](index=157&type=chunk)[159](index=159&type=chunk) - In Q2 2025, the company sold property and equipment for **$11.0 million**, recognizing a gain of **$2.1 million**[167](index=167&type=chunk) - Subsequent to the quarter end, on July 1, 2025, the company sold certain Ting assets for **$7.0 million** and expects to recognize a gain of **$3.6 million** in Q3 2025[183](index=183&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, segment results, and liquidity, highlighting revenue growth, Adjusted EBITDA improvement, and Ting's need for additional financing [Results of Operations](index=55&type=section&id=Results%20of%20Operations) This section analyzes the company's revenue, cost of revenues, and operating expenses across its business segments, detailing key drivers of financial performance Net Revenue by Segment (Six Months Ended June 30) | Segment | 2025 (in millions) | 2024 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Ting | $32.7 | $28.7 | +14% | | Wavelo | $24.1 | $19.9 | +21% | | Tucows Domains | $132.9 | $124.3 | +7% | | Corporate and other | $3.4 | $4.1 | -15% | | **Total Net Revenues** | **$193.1** | **$176.9** | **+9%** | - Total net revenues for H1 2025 increased by **$16.2 million** (**9%**) year-over-year, driven by growth across all segments, particularly Wavelo (up **21%**) and Ting (up **14%**)[240](index=240&type=chunk) - Total cost of revenues for H1 2025 increased by **$9.6 million** (**7%**) year-over-year, primarily due to a one-time **$3.0 million** lease accounting adjustment in the Ting segment and higher registry costs for Tucows Domains[272](index=272&type=chunk) - Sales and marketing expenses for H1 2025 decreased significantly by **$10.4 million** (**31%**) year-over-year, mainly due to reduced personnel costs and marketing spend in the Ting segment following the 2024 Capital Efficiency Plan[291](index=291&type=chunk) Reconciliation of Net Loss to Adjusted EBITDA (Six Months Ended June 30) | Line Item | 2025 (in millions) | 2024 (in millions) | | :--- | :--- | :--- | | **Net Loss for the period** | **$(30.8)** | **$(45.1)** | | Provision for income taxes | $4.4 | $3.0 | | Depreciation of property and equipment | $21.0 | $20.2 | | Amortization of intangible assets | $2.3 | $2.9 | | Interest expense, net | $27.2 | $24.4 | | Stock-based compensation | $2.9 | $3.6 | | Acquisition and other costs | $0.7 | $3.8 | | Other adjustments | $(1.6) | $0.6 | | **Adjusted EBITDA** | **$26.2** | **$13.4** | - Adjusted EBITDA for H1 2025 increased by **$12.9 million** (**96%**) to **$26.3 million** compared to H1 2024, largely driven by cost reductions and operational efficiencies in the Ting segment[314](index=314&type=chunk) [Liquidity and Capital Resources](index=76&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's cash position, funding sources, and ability to meet short-term and long-term financial obligations, particularly for the Ting segment - As of June 30, 2025, cash and cash equivalents decreased by **$4.9 million** since year-end 2024, primarily due to cash used in operations, debt repayment, and capital expenditures, offset by proceeds from asset sales[315](index=315&type=chunk) - The Ting segment may not be able to meet its financial obligations over the next twelve months without additional financing. It has historically relied on its redeemable preferred units and term notes to fund operations and expansion[334](index=334&type=chunk) - Ting has scheduled interest payments of **$35.0 million** in the twelve months following June 30, 2025, and its ability to obtain further financing is subject to market conditions and operating performance[333](index=333&type=chunk)[334](index=334&type=chunk) - Tucows businesses excluding Ting plan to fund their 2025 cash requirements through operating income while making discretionary repayments on the **$192.9 million** outstanding balance of the 2023 Credit Facility[335](index=335&type=chunk)[336](index=336&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks include foreign currency exchange fluctuations, interest rate changes on its credit facility, and credit risk from accounts receivable - A hypothetical **10%** adverse movement in foreign currency exchange rates would decrease net income for H1 2025 by approximately **$2.6 million**, before the effects of hedging[343](index=343&type=chunk) - The company is exposed to interest rate risk on its **$192.9 million** outstanding balance under the 2023 Credit Facility. A **1%** adverse change in interest rates would increase annual interest payments by approximately **$1.9 million**[346](index=346&type=chunk) [Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting - Management concluded that disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025[347](index=347&type=chunk) [PART II OTHER INFORMATION](index=52&type=section&id=PART%20II%20OTHER%20INFORMATION) [Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal claims arising from normal business operations, none of which are expected to have a material adverse effect [Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) This section updates key risk factors, including Ting's financing needs, operational risks from workforce reductions, and minimum purchase commitments with its MNO partner - A significant risk is that the Ting subsidiary may not be able to meet its financial obligations over the next 12 months without securing additional financing, as it has historically relied on external funding for operations and expansion[354](index=354&type=chunk) - The company faces ongoing risks from the Ting workforce reductions, including potential operational disruptions, negative impacts on employee morale and retention, and a slowdown in network expansion and revenue growth due to reduced capital expenditures[357](index=357&type=chunk)[359](index=359&type=chunk) - The company is subject to minimum purchase commitments with its MNO supplier, with **$13.9 million** in remaining payments through February 2026. Failure to grow the Ting Mobile subscriber base could lead to significant penalties and increase the company's net loss[360](index=360&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=53&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Board approved a **$40 million** stock buyback program, but no shares were repurchased during the three and six months ended June 30, 2025 [Other Information](index=53&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q2 2025

Core Insights - Tucows Inc. has been awarded a contract to provide back-end registry services to Radix, enhancing its position in the domain services industry [1][4] - The partnership will involve Tucows managing Radix's portfolio of 11 top-level domains (TLDs), which includes 10 new generic TLDs and one country-code TLD [2][6] - The migration of Radix domains is expected to add approximately 10 million domains under management (DUMs) to Tucows Registry, bringing the total to nearly 17 million globally [3] Company Overview - Tucows operates in the internet services sector, providing domain services and infrastructure, and manages around 24 million domain names through a global reseller network [7][8] - Tucows Registry has over 20 years of experience in internet infrastructure and is recognized for its scalable registry services [8] - Radix is the world's largest portfolio registry with over 10 million DUMs and operates 10 TLDs, including popular extensions like .online and .store [9][10] Strategic Implications - The partnership positions Tucows as a preferred platform for top-tier registry operators and sets the stage for future growth in the domain name ecosystem, especially with the upcoming new gTLDs expected in 2026 [3][6] - Radix's innovative and data-driven strategies have contributed to its strong market presence and renewal rates, which will complement Tucows' infrastructure capabilities [5][6]