Tucows (TCX) Q4 2025 (Q&A) earnings summary

Executive summary

• Addressed investor questions on Ting asset sale, Wavelo EBITDA margin outlook, and stock buyback program.

• Achieved third consecutive year of growth in consolidated revenue, gross profit, and adjusted EBITDA for FY 2025, with adjusted EBITDA up 45% year-over-year.

• Fiscal 2025 saw revenue rise 8% year-over-year, with all business units contributing to growth.

• Core businesses, Domains and Wavelo, demonstrated strong recurring revenue and margin profiles.

• Strategic process to divest Ting is underway to improve capital flexibility and focus on core segments.

Financial highlights

• Q4 2025 net revenues were $98.7M, up 6% year-over-year; full-year revenues reached $390.3M, up 8%.

• Q4 gross profit was $24.1M, up 14% year-over-year; full-year gross profit was $94.0M, up 13%.

• Q4 net loss improved to $(22.0)M from $(42.5)M; full-year net loss improved to $(75.8)M from $(109.9)M.

• Adjusted EBITDA for Q4 was $11.1M, down 14% year-over-year; full-year adjusted EBITDA was $50.6M, up 45%.

• Net cash used in operating activities for the year was $5.8M, a 71% improvement year-over-year.

Outlook and guidance

• Wavelo's adjusted EBITDA margin is expected to decline year-over-year in 2026 due to potential fee reductions from Ting process outcomes and fully annualized investments.

• Conservative forecasting for Wavelo reflects a range of possible Ting divestiture outcomes.

• Management remains focused on operational and capital efficiency, with ongoing strategic processes in Ting to build a more resilient earnings profile.

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

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