Tucows (TCX) investor relations material

Executive summary

• Portfolio includes domain services, platform software (Wavelo), and fiber internet (Ting), balancing cash generation with long-term growth investments.

• Revenue and gross profit increased year over year and sequentially, with Ting driving improvements through subscriber growth and construction activity.

• Adjusted EBITDA improved sequentially but declined year over year; net loss widened due to higher operating and interest expenses.

• The Generate Exit Transaction in July 2026 resolved Ting's preferred unit issues, removing $147.4M in current liabilities.

Financial highlights

• Q2 2026 net revenues rose 2% year-over-year to $100.6M; gross profit up 17% to $25.8M.

• Net loss widened to $(20.5)M from $(15.6)M year-over-year; adjusted net loss $(17.5)M.

• Adjusted EBITDA for Q2 was $12.3M, down 2% year-over-year but up 5.4% sequentially.

• Net cash from operating activities dropped 71% to $1.9M.

• Cash and equivalents at quarter-end were $60.2M, down from $68.6M year over year.

Outlook and guidance

• Strategic focus on scaling Domains and Wavelo, leveraging recurring revenue and margin strength.

• Management expects continued Ting subscriber and construction growth, but notes ongoing competitive and margin pressures in Domains.

• Wavelo's revenue concentration risk remains high due to reliance on a single major customer.

• Ting divestiture expected to enhance capital allocation for growth and deleveraging.

• The Generate Exit Transaction is expected to improve liquidity and reduce financial risk for the remainder of 2026.