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Tucows Inc.

TCX

Tucows Inc. • NASDAQ
$21.67 ▲ 0.42% (+0.09)
Market Cap $240.62 M
52w High $23.38
52w Low $13.27
Dividend Yield 0%
P/E -2.48
Volume 14.51K
Outstanding Shares 11.10M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $98.558M ▲ $44.45M ▲ $-23.019M ▼ -23.356% ▼ $-2.08 ▼ $4.66M ▼
Q2-2025 $98.463M ▲ $24.989M ▼ $-15.637M ▼ -15.881% ▲ $-1.41 ▼ $12.363M ▼
Q1-2025 $94.609M ▲ $25.564M ▼ $-15.133M ▲ -15.995% ▲ $-1.37 ▲ $12.827M ▲
Q4-2024 $93.098M ▲ $51.565M ▲ $-42.475M ▼ -45.624% ▼ $-3.87 ▼ $-11.806M ▼
Q3-2024 $92.297M $32.235M $-22.297M -24.158% $-2.03 $4.607M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $54.078M ▲ $735.491M ▼ $879.55M ▲ $-144.059M ▼
Q2-2025 $52.02M ▲ $742.182M ▲ $863.868M ▲ $-121.686M ▼
Q1-2025 $38.076M ▼ $741.907M ▼ $850.166M ▼ $-108.259M ▼
Q4-2024 $56.903M ▼ $758.796M ▼ $854.096M ▲ $-95.3M ▼
Q3-2024 $75.209M $799.027M $852.101M $-53.074M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $-23.019M ▼ $1.534M ▼ $3.543M ▼ $-2.923M ▼ $2.154M ▼ $-2.317M ▼
Q2-2025 $-15.637M ▼ $6.566M ▲ $6.989M ▲ $31K ▲ $13.586M ▲ $2.885M ▲
Q1-2025 $-15.133M ▲ $-11.251M ▼ $-4.471M ▲ $-2.5M ▼ $-18.222M ▼ $-16.688M ▼
Q4-2024 $-42.475M ▼ $-4.795M ▼ $-11.124M ▲ $-1.934M ▼ $-17.853M ▼ $-16.461M ▲
Q3-2024 $-22.297M $-4.564M $-14.994M $58.451M $38.893M $-19.08M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Network Expenses
Network Expenses
 $30.00M ▲$20.00M ▼$0 ▼$0 ▲

Five-Year Company Overview

Income Statement

Income Statement Revenue has been growing steadily but only gradually over the last five years. The challenge is that costs have grown faster than revenue, so profits have moved from slightly positive to clearly negative. Operating losses have widened, and net results have been firmly in the red for several years, with the most recent year showing the weakest bottom line of the period. This pattern fits a company investing heavily for future growth: margins have been pressured by spending on new businesses like fiber and software, while the mature domains segment is unlikely to grow fast enough on its own to offset that. The key income statement question is whether these investments eventually translate into higher-margin growth that can pull the company back to sustainable profitability.

Balance Sheet

Balance Sheet The balance sheet shows a business that has been adding assets and scaling up, but doing so with a significant increase in debt. Total assets have grown meaningfully over the period, reflecting network build-out and software development, but cash remains relatively low. Debt has climbed substantially, and in the most recent year shareholder equity has slipped into negative territory. Negative equity and higher leverage typically signal that accumulated losses and/or write-downs have eroded the cushion on the balance sheet. This does not automatically mean distress, but it does raise the importance of careful capital management and future earnings improvement to rebuild that cushion over time.

Cash Flow

Cash Flow Operating cash flow has hovered around break-even and recently dipped slightly negative, which suggests the core businesses are not yet consistently throwing off cash after all operating costs. Free cash flow has been clearly negative for the entire period because of heavy investment spending, mainly on capital projects like fiber infrastructure. The good news is that capital spending appears to be easing from its peak, moving toward a more moderate level. The tension is that the company is still funding an investment-heavy strategy while operating cash inflows are modest. That increases reliance on external financing and puts pressure on management to achieve better cash generation from Ting, Wavelo, and the domains platform over the next few years.

Competitive Edge

Competitive Edge Tucows has a strong and differentiated position in its core domains business. Its long-standing wholesale platform (OpenSRS) and very large reseller base create high switching costs, making it difficult and inconvenient for customers to move to competitors. This results in sticky, recurring revenue and a durable moat in a mature part of the internet infrastructure. At the same time, the company competes in tougher, more capital-intensive arenas with Ting Internet, where large incumbents dominate, and in a fast-moving telecom software market with Wavelo. The combined portfolio is strategically interesting and diversified, but also more complex to execute. The competitive edge today is clearest in domains; in fiber and SaaS, the company is still proving its long-term scale and profitability.

Innovation and R&D

Innovation and R&D Innovation has been a defining strength. Tucows pioneered wholesale domain registration, then extended its capabilities into fiber broadband with Ting and into cloud-native telecom software with Wavelo. Turning internal tools into a standalone SaaS platform is a notable example of monetizing in-house innovation. The company is also trying to shift Ting toward a more capital-light, partnership-driven model and is using software and AI to streamline operations and improve efficiency. These choices all point to a management team focused on evolving the business model, not just maintaining legacy assets. The open question is execution: how quickly Wavelo can scale, how effectively Ting can grow without heavy new capital, and whether these initiatives can reshape the financial profile from loss-making to cash-generative.

Summary

Overall, Tucows combines a high-quality, defensible domains franchise with newer, higher-growth but more demanding businesses in fiber internet and telecom software. Strategically, the story is about using that stable core to fund a transition toward modern connectivity and SaaS offerings. Financially, the picture is more strained: revenues are rising but profits have turned decidedly negative, debt has grown, equity has slipped below zero, and free cash flow has been consistently negative due to substantial investment. The company appears to be in a late-stage investment phase, now emphasizing more capital-efficient growth and operational discipline. Key things to watch going forward include: evidence of improving margins and shrinking losses, clearer cash generation from Ting and Wavelo, successful adoption of the Wavelo platform by external customers, and a gradual strengthening of the balance sheet. The long-term potential is tied to whether these innovative platforms can grow fast and profitably enough to justify the period of financial pressure the company is currently experiencing.

NEWS

November 6, 2025 · 5:07 PM UTC

Tucows Announces Leadership Succession Following Strong Q3 Results

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November 6, 2025 · 5:05 PM UTC

Tucows Delivers Strong Results in Q3 And Reiterates Full-Year Financial Guidance

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October 23, 2025 · 7:30 AM UTC

Tucows Announces Timing for Q3 2025 Financial Results News Release and Management Commentary

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September 8, 2025 · 5:05 PM UTC

Wavelo Launches "Free Your Data" to Unlock Data in Legacy Systems and Accelerate AI in Telecom

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