Tucows (NasdaqCM:TCX) Q4 2025 Earnings call February 25, 2026 04:00 PM ET Company ParticipantsDavid Woroch - President and CEONone - Company RepresentativeNoneWelcome to Tucows question and answer dialogue for Q4 2025. David Woroch, President and Chief Executive Officer of Tucows and Tucows Domains, will be responding to your questions. For your convenience, this audio file is also available as a transcript in the investors section of our website, along with our Q4 2025 financial results and updated reports ...

Tucows (NasdaqCM:TCX) Q4 2025 Earnings call February 25, 2026 04:00 PM ET Company ParticipantsDavid Woroch - President and CEONone - Company RepresentativeNoneWelcome to Tucows question and answer dialogue for Q4 2025. David Woroch, President and Chief Executive Officer of Tucows and Tucows Domains, will be responding to your questions. For your convenience, this audio file is also available as a transcript in the investors section of our website, along with our Q4 2025 financial results and updated reports ...

Tucows (NasdaqCM:TCX) Q4 2025 Earnings call February 25, 2026 04:00 PM ET Speaker1Welcome to Tucows question and answer dialogue for Q4 2025. David Woroch, President and Chief Executive Officer of Tucows and Tucows Domains, will be responding to your questions. For your convenience, this audio file is also available as a transcript in the investors section of our website, along with our Q4 2025 financial results and updated reports. I would also like to remind investors that if you would like to receive our ...

Financial Data and Key Metrics Changes - Consolidated revenue for Q4 2025 was $98.7 million, up 6% year-over-year, with all three segments contributing [9] - Q4 gross profit was $24.1 million, up 14% year-over-year, supported by a favorable mix [9] - Adjusted EBITDA for Q4 was $11.1 million, down 14% year-over-year, while total consolidated adjusted EBITDA for fiscal 2025 was $50.6 million, which was $3.6 million above guidance and represented a 45% increase from fiscal 2024 [10][11] Business Segment Data and Key Metrics Changes - Tucows Domains reported Q4 revenue of $66.4 million, a modest increase from $65.7 million, with gross profit rising 4% to $19.2 million [12] - Wavelo achieved Q4 revenue of $11.7 million, a 19% increase year-over-year, with gross profit up 7% to $6.6 million [14] - Ting Internet's Q4 revenue was $18.5 million, up 18% year-over-year, with gross profit improving to $1.6 million from a loss of $1.2 million in Q4 2024 [14] Market Data and Key Metrics Changes - Domains under management and transactions are normalizing at a modestly lower level due to a customer taking their business in-house, but margins remain healthy due to a diverse reseller base [5] - Wavelo's performance was driven by renewing its inaugural customer and aligning incentives, indicating a strong market position [6] Company Strategy and Development Direction - The company aims to transition into a capital-light business with a lean operating model, focusing on recurring revenue and strong customer retention [22][24] - The strategy includes leveraging technical expertise and operational capabilities to build technology services that benefit from shared infrastructure [23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the complexity of the current operating environment but expressed confidence in the company's ability to execute and innovate [4] - The outlook for fiscal 2026 includes an Adjusted EBITDA range of $47 million-$49 million for Tucows Domains and $14.5 million-$15.5 million for Wavelo, with corporate expectations of -$6 million to -$9 million [18][19] Other Important Information - The company ended the quarter with cash and restricted cash of $64.2 million, down from $73.2 million in Q4 of the previous year [16] - Corporate net debt, excluding Ting, was $189.5 million, with compliance maintained under the TCX syndicated facility [16] Q&A Session Summary - There was no live Q&A session; however, shareholders and analysts were invited to submit questions via email, with responses to be posted on the company's website [2][27]

Financial Data and Key Metrics Changes - Consolidated revenue for Q4 2025 was $98.7 million, up 6% year-over-year, with all three segments contributing [9] - Q4 gross profit was $24.1 million, up 14% year-over-year, supported by a favorable mix [9] - Adjusted EBITDA for Q4 was $11.1 million, down 14% year-over-year, while total consolidated adjusted EBITDA for fiscal 2025 was $50.6 million, which was $3.6 million above guidance and represented a 45% increase from fiscal 2024 [10][11] Business Segment Data and Key Metrics Changes - Tucows Domains revenue grew to $66.4 million in Q4 2025 from $65.7 million in Q4 2024, with a 4% increase in gross profit to $19.2 million [12] - Wavelo's Q4 revenue was $11.7 million, a 19% increase year-over-year, with adjusted EBITDA of $3.4 million [14] - Ting Internet's Q4 revenue was $18.5 million, up 18% year-over-year, with an adjusted EBITDA loss of $0.9 million, an improvement from a $1.5 million loss in Q4 2024 [15] Market Data and Key Metrics Changes - Domains under management and transactions are normalizing at a modestly lower level due to a customer taking their business in-house, but margins remain healthy [5] - Wavelo's performance was driven by renewing its inaugural customer and aligning incentives, indicating a strong market position [6] Company Strategy and Development Direction - The company aims to transition into a capital-light business with a lean operating model, focusing on recurring revenue and strong customer retention [22][24] - The strategy includes leveraging technical expertise and operational capabilities to build technology services that benefit from shared infrastructure [23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the complexity of the current operating environment but expressed confidence in the company's ability to execute and innovate [4] - The outlook for fiscal 2026 includes an adjusted EBITDA range of $47 million-$49 million for Tucows Domains and $14.5 million-$15.5 million for Wavelo, with corporate adjusted EBITDA expected to be between -$6 million and -$9 million [18][19] Other Important Information - The company ended the quarter with cash and restricted cash of $64.2 million, down from $73.2 million in Q4 of the previous year [16] - Corporate net debt, excluding Ting, was $189.5 million, with compliance maintained under the TCX syndicated facility [16] Q&A Session Summary - There was no live Q&A session; however, shareholders and analysts were invited to submit questions via email, with responses to be posted on the company's website [2][27]

Financial Data and Key Metrics Changes - Consolidated revenue for Q4 2025 was $98.7 million, up 6% year-over-year, with all three segments contributing [10] - Q4 gross profit was $24.1 million, up 14% year-over-year, supported by a favorable mix [10] - Adjusted EBITDA for Q4 was $11.1 million, down 14% year-over-year, while total consolidated adjusted EBITDA for fiscal 2025 was $50.6 million, which was $3.6 million above guidance and represents a 45% increase from fiscal 2024 [11][12] Business Segment Data and Key Metrics Changes - Tucows Domains revenue grew to $66.4 million in Q4 2025 from $65.7 million, with a 4% increase in gross profit to $19.2 million [13] - Wavelo's Q4 revenue was $11.7 million, a 19% increase year-over-year, with adjusted EBITDA of $3.4 million [14][16] - Ting Internet reported Q4 revenue of $18.5 million, up 18% year-over-year, with an adjusted EBITDA loss of $0.9 million, an improvement from a $1.5 million loss in Q4 2024 [16] Market Data and Key Metrics Changes - Domains under management and transactions are normalizing at a modestly lower level due to a customer taking their business in-house [5] - The wholesale channel revenue rose 2% year-over-year to $57 million, supported by strong growth in value-added services [13] Company Strategy and Development Direction - The company aims to transition into a capital-light business with a lean operating model, focusing on recurring revenue and strong customer retention [24][25] - The leadership approach emphasizes customer-centric execution, operational excellence, and financial rigor in decision-making [22][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the complexity of the current operating environment and expressed confidence in the company's ability to navigate changes [4] - The outlook for fiscal 2026 includes an adjusted EBITDA range of $47 million-$49 million for Tucows Domains and $14.5 million-$15.5 million for Wavelo, with corporate adjusted EBITDA expected to be between -$6 million and -$9 million [20][21] Other Important Information - The company ended the quarter with cash and restricted cash of $64.2 million, down from $73.2 million in Q4 of last year [18] - Corporate net debt, excluding Ting, was $189.5 million, with compliance maintained under the TCX syndicated facility [18] Q&A Session Summary - There was no live Q&A session; however, shareholders and analysts were invited to submit questions via email, with responses to be posted on the company's website [2][28]

Core Insights - Tucows Inc. reported strong fiscal results for 2025, with a revenue increase of 8% compared to 2024, driven by contributions from all three business segments [1] - The company achieved a gross profit rise of 13%, attributed to improved economics at Wavelo, margin expansion in Domains, and reduced network expenses at Ting [1] - Adjusted EBITDA for the year reached $50.6 million, a 45% increase year-over-year, exceeding guidance by $3.6 million [1] Financial Results - Consolidated net revenue for Q4 2025 was $98.7 million, up 6% from $93.1 million in Q4 2024 [1] - Gross profit for Q4 2025 increased 14% to $24.1 million from $21.2 million in Q4 2024 [1] - The net loss for Q4 2025 was $22.0 million ($1.98 per share), significantly improved from a net loss of $42.5 million ($3.86 per share) in Q4 2024 [1] - Adjusted net loss for Q4 2025 was $19.2 million (adjusted EPS of ($1.73)), compared to $15.8 million (adjusted EPS of ($1.43)) in Q4 2024 [1] - Cash and cash equivalents at the end of Q4 2025 were $64.2 million, down from $70.8 million at the end of Q3 2025 [1] Segment Performance - Tucows Domain Services generated total revenue of $66.4 million in Q4 2025, with wholesale domain services contributing $50.7 million [1] - Wavelo Services reported revenue of $11.7 million in Q4 2025, reflecting a strong performance in telecommunications software [1] - Ting Internet Services generated $18.5 million in revenue for Q4 2025, showing growth in fiber internet services [1] Management Commentary - The CEO emphasized the focus on operational and capital efficiency initiatives to strengthen the business and build a resilient earnings profile [1] - The company is committed to enhancing long-term value through strategic processes, particularly with Ting [1]

Core Viewpoint - Tucows Inc. is set to report its financial results for the fourth quarter ended December 31, 2025, on February 12, 2026, at 5:05 p.m. ET [1] Financial Reporting - The financial results will be accompanied by a pre-recorded audio commentary and transcript discussing the quarter and the company's outlook, which will be available on the Tucows website [2] - Shareholders, analysts, and prospective investors can submit questions to management for seven days following the results announcement, with responses to be posted on February 25, 2026 [3] Company Overview - Tucows connects people to internet access through various services, including communications technology, domain services, and fiber-optic internet 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 over 22 million domain names and offers services through a global reseller network of over 33,000 web hosts and ISPs [4]

Financial Data and Key Metrics Changes - The company reported meaningful progress in Q3 2025, indicating a focus on business advancement and leadership transition [3] - Specific financial metrics and detailed results will be provided in the Q4 earnings update scheduled for early February 2026 [5] Business Line Data and Key Metrics Changes - The company is actively evaluating reinvestment opportunities in its core businesses, Domains and Wavelo, while managing the ongoing Ting process [4][5] - The outcome of the Ting process is expected to shape the company's flexibility to reinvest in its business segments [5] Market Data and Key Metrics Changes - The company anticipates that the resolution of the Ting process could take a couple of quarters, with full divestiture likely extending beyond that timeframe [4] - Increased interest in the core businesses has been noted as the company focuses on resolving the Ting situation [4] Company Strategy and Development Direction - Completing the Ting process is identified as the top priority for the company, which will guide the next phase of its growth strategy [5] - The board is engaged in transforming the company, with a focus on operational discipline, efficiency, and deleveraging [6][7] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the complexity of the Ting process and the need for ongoing communication with investors regarding material developments [4] - The new CEO emphasizes a clear focus on growth and strategic vision, with plans to share more details in upcoming quarters [5][7] Other Important Information - The new CEO's employment contract is a four-year fixed-term agreement, ensuring predictability and alignment with shareholder interests [5] - The company will disclose the full contract in its 10-K filing in March 2026 [5] Q&A Session Summary Question: What is the growth outlook for Domains and Wavelo during the Ting transition? - The company is looking at multiple paths to maximize shareholder value while focusing on resolving the Ting process [4] Question: When can investors expect guidance for 2026? - Guidance for each business segment will be provided in the Q4 earnings update in early February 2026 [5] Question: What is the strategic vision of the new CEO? - The CEO's focus is on completing the Ting process, which will influence future reinvestment opportunities [5]

Financial Data and Key Metrics Changes - The company reported meaningful progress in Q3 2025, indicating a focus on business advancement and leadership transition [3] - Specific financial metrics and detailed results will be provided in the Q4 earnings update scheduled for early February 2026 [5] Business Line Data and Key Metrics Changes - The ongoing process regarding Ting is a critical priority, with expectations that a resolution could take a couple of quarters, impacting the growth outlook for Domains and Wavelo [4][5] - The company is actively preparing for future reinvestment opportunities in Domains and Wavelo, aiming to maximize shareholder value [5][6] Market Data and Key Metrics Changes - The company is currently unable to comment on valuations related to the Ting process until it is complete [4] - The board is engaged in transforming the company, indicating a focus on operational efficiency and revenue growth [6][7] Company Strategy and Development Direction - Completing the Ting process is the top priority, which will shape the company's flexibility to reinvest in its core businesses [5] - The company is evaluating reinvestment opportunities to ensure readiness for future growth [6] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the complexity of the Ting process and its implications for future growth [4] - The new CEO emphasizes a disciplined approach to operations, focusing on efficiency and deleveraging [6] Other Important Information - The new CEO has a four-year fixed-term employment agreement, ensuring predictability and alignment with shareholder interests [5] - The company plans to disclose the full employment contract in the 10K filing in March 2026 [5] Q&A Session Summary Question: What is the growth outlook for Domains and Wavelo during the Ting transition? - The company is looking at multiple paths to maximize shareholder value while focusing on resolving the Ting process [4][5] Question: What is the strategic vision of the new CEO? - The CEO's focus is on completing the Ting process, which will guide the next phase of the company's growth strategy [5] Question: When can investors expect guidance for 2026? - Guidance for each business segment will be provided in the Q4 earnings update in early February 2026 [5]