Tucows (TCX) Q4 2025 Prepared Remarks earnings summary

Executive summary

• Q4 2025 consolidated revenue reached $98.7 million, up 6% year-over-year, with all segments contributing to growth.

• Adjusted EBITDA for 2025 was $50.6 million, up 45% year-over-year and $3.6 million above guidance, driven by strong performance in Domains and Wavelo.

• Net loss for Q4 2025 was $22 million (GAAP), a significant improvement from $42.5 million loss in Q4 2024; full-year net loss narrowed to $75.8 million from $109.9 million.

• The company is transitioning to a capital-light model, focusing on recurring revenue, cash generation, and strategic divestiture of Ting.

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

Financial highlights

• Q4 gross profit was $24.1 million, up 14% year-over-year; full-year gross profit reached $94 million, up 13% year-over-year.

• Q4 net revenue grew 6% year-over-year to $98.7 million; full-year revenue was $390.3 million, up 8%.

• Adjusted EBITDA for Q4 was $11.1 million, down 14% year-over-year due to legacy mobile obligations.

• Cash and restricted cash at year-end was $64.2 million, down from $73.2 million a year ago.

• Net cash used in operating activities improved to $(2.6) million in Q4 and $(5.8) million for the year.

Outlook and guidance

• 2026 adjusted EBITDA guidance (excluding Ting): Domains $47–$49 million, Wavelo $14.5–$15.5 million, Corporate -$6 to -$9 million.

• Total consolidated 2026 guidance (excluding Ting): $52.5–$58.5 million adjusted EBITDA.

• Divestiture of Ting expected to enhance capital allocation flexibility and support self-funded growth and deleveraging.

• Guidance for Ting will be provided once the strategic process concludes.

• Management remains focused on operational and capital efficiency initiatives.