Financial Data and Key Metrics Changes - The company reported a 7% year-over-year growth in top-line revenue, reaching $98.6 million in Q3 2025 [4][17] - Gross profit increased by 9% year-over-year to $24.2 million, while adjusted EBITDA surged 53% to $13.3 million for the quarter [4][17] - Year-to-date adjusted EBITDA totaled $39.5 million, positioning the company well to meet its full-year guidance of $47 million [4][20] Business Line Data and Key Metrics Changes - Tucows Domains achieved a revenue growth of 5% year-over-year, with adjusted EBITDA at $12.1 million, also up 5% from the previous year [5][19] - WaveLow's revenue increased by nearly 18% year-over-year to $11.9 million, with adjusted EBITDA rising 25% to $4.3 million [10][19] - Ting's revenue reached $17 million, an 11% increase year-over-year, with adjusted EBITDA losses improving to $880,000 from $5.1 million in Q3 2024 [14][19] Market Data and Key Metrics Changes - The wholesale channel in Tucows Domains saw a revenue increase of 5% year-over-year, driven by strong reseller demand and higher-margin value-added services [5][6] - The retail segment experienced a modest revenue increase of 2% year-over-year, reflecting a stable performance despite a decline in total domains under management [7][8] Company Strategy and Development Direction - The company is formally involved in a process to sell the Ting business, aiming to strengthen its focus on the Domains and WaveLow segments [22] - The strategy includes divesting non-strategic assets, generating $8.5 million from such sales in Q3 2025 [15][18] - The management emphasizes disciplined capital allocation and the adoption of AI as key levers for future growth [21] Management's Comments on Operating Environment and Future Outlook - Management noted that operator sentiment remains cautious, with procurement cycles lengthening, but there is an increase in RFI and RFP activities, particularly around legacy replacement programs [12] - The company expects to continue benefiting from year-to-date tailwinds while ramping up investments in sales and marketing to drive customer acquisition [10][12] Other Important Information - The company revised its presentation of segment gross profit to align external reporting with internal management practices, which does not affect consolidated financials [17] - A non-cash impairment of $10.9 million related to Ting's inventory and lease assets was recorded, which is excluded from adjusted EBITDA [18] Q&A Session Summary - Questions were invited via email for a recorded response to be posted on the company's website [2][27] - The management team expressed gratitude for the support received over the years and emphasized the ongoing work ahead [25][26]

Financial Data and Key Metrics Changes - Tucows reported a 7% year-over-year growth in top-line revenue for Q3 2025, reaching $98.6 million [4][17] - Gross profit increased by 9% year-over-year to $24.2 million, while adjusted EBITDA surged 53% to $13.3 million for the quarter [4][17] - Year-to-date adjusted EBITDA totaled $39.5 million, positioning the company well to meet its full-year guidance of $47 million [4][20] Business Line Data and Key Metrics Changes - Tucows Domains experienced a 5% revenue growth year-over-year, with adjusted EBITDA at $12.1 million, also up 5% from the previous year [5][19] - WaveLow's revenue grew by nearly 18% year-over-year to $11.9 million, with adjusted EBITDA increasing by 25% to $4.3 million [10][19] - Ting's revenue reached $17 million, an 11% increase year-over-year, with adjusted EBITDA losses improving to $880,000 from $5.1 million in Q3 2024 [13][19] Market Data and Key Metrics Changes - The wholesale channel within Tucows Domains saw a 5% revenue increase to $58 million, driven by strong reseller demand and higher-margin value-added services [5][19] - The retail segment posted a modest revenue increase of 2% year-over-year to $9.8 million, with gross margin remaining flat [6][19] - WaveLow noted a seasonal slowdown in Q3 due to the delivery of professional services, but anticipates a reduction in historical seasonality moving forward [10][12] Company Strategy and Development Direction - The company is formally evaluating strategic paths for the Ting business, with plans to potentially sell it to focus on its domain and WaveLow businesses [22] - Tucows aims to streamline its asset base and pivot to a capital-light ISP model, particularly for Ting [18][22] - The management emphasizes disciplined capital allocation and the adoption of AI as key levers for future growth [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued top-line growth and expanding adjusted EBITDA, despite challenges in the operating environment [21] - There is cautious sentiment in the telecom sector, with procurement cycles lengthening, but an increase in RFI and RFP activities is noted [12] - The company expects to maintain momentum in its core businesses while navigating the transition in Ting [22] Other Important Information - The company paid down an additional $2.5 million on its syndicated bank loan, bringing corporate net debt to $189.6 million [4] - A non-cash impairment of $10.9 million related to Ting's inventory and lease assets was recorded, which does not impact cash flow [18] - The company generated $8.5 million from divestitures in Q3, contributing to a total of $20.8 million year-to-date [15][20] Summary of Q&A Session Questions and Answers - Questions were invited via email to ir@tucows.com until November 13, with a recorded audio response and transcript to be posted on November 25 [1][27]

Leadership Transition - Tucows Inc. has appointed David Woroch as the new President and CEO, succeeding Elliot Noss after his 25-year tenure [1][2][4] - Elliot Noss will continue to serve on the Board of Directors and as a consultant for the Ting Internet business [2][7] Company Transformation - Under Elliot Noss's leadership, Tucows evolved from a software download platform to a diversified technology company, including Tucows Domains, Wavelo, and Ting Internet [3] - The company became publicly listed on both Nasdaq and Toronto Stock Exchange and was an inaugural member of the TSX 30 [3] David Woroch's Background - David Woroch has been with Tucows for 25 years and has led Tucows Domains, which is now the world's largest wholesale domain registrar [4][6] - He has a strong background in technology and economics, focusing on improving scalability, differentiation, and margins [5] Strategic Focus - The Board is confident in David Woroch's ability to maintain Tucows' culture of innovation and efficiency while driving long-term value for shareholders [6] - Tucows is exploring strategic options for its Ting Internet business and has engaged a financial advisor for this process [7] Financial Performance - Tucows announced its Q3 2025 earnings, indicating strong results and reiterating full-year financial guidance [11]

Q3 2025 Investor presentation 11.06.2025 Nasdaq (TCX) | TSX (TC) Safe harbor statement This presentation may contain forward-looking statements, relating to the Company's operations or to the environment in which it operates, which are based on Tucows Inc.'s operations, estimates, forecasts and projections. These statements are not guarantees of future performance and are subject to important risks, uncertainties and assumptions concerning future conditions that may ultimately prove to be inaccurate or diff ...

Core Insights - Tucows Inc. reported a 6.8% increase in consolidated net revenue for Q3 2025, reaching $98.6 million compared to $92.3 million in Q3 2024, driven by growth across all business segments [3][4] - Adjusted EBITDA saw a significant growth of 53%, amounting to $13.3 million, up from $8.7 million in the same quarter last year, attributed to revenue growth and margin expansion [5][7] - The company ended Q3 2025 with cash and cash equivalents totaling $70.8 million, a slight increase from $68.6 million at the end of Q2 2025 but a decrease from $91.1 million at the end of Q3 2024 [6] Financial Performance - Gross profit for Q3 2025 increased by 9% to $24.2 million from $22.2 million in Q3 2024, driven by strong margin gains from Wavelo and Tucows Domains [3][5] - The net loss for Q3 2025 was $23.0 million ($2.08 per share), compared to a net loss of $22.3 million ($2.03 per share) in Q3 2024, while adjusted net loss improved to $15.8 million (adjusted EPS of $(1.42)) from $19.8 million (adjusted EPS of $(1.81)) in the previous year [4][17] - Year-to-date consolidated Adjusted EBITDA reached $39.5 million, slightly ahead of the company's 2025 guidance [2][5] Segment Performance - Tucows Domains and Wavelo services contributed to the overall revenue growth, with total revenues from Domains and Wavelo services reaching $79.7 million in Q3 2025, up from $74.8 million in Q3 2024 [8] - Ting Internet services reported revenue of $16.976 million in Q3 2025, an increase from $15.310 million in Q3 2024, indicating growth in fiber internet services [8] Management Commentary - The CFO highlighted the operating leverage achieved through broad-based topline growth and margin expansion, indicating a healthier business model moving forward [2][5] - Management expressed confidence in ongoing initiatives aimed at delivering value for shareholders, emphasizing a clearer path to further improvements [2][5]

Revenue Performance - For the three months ended September 30, 2025, the company reported net revenue of $98.6 million, a 7.0% increase from $92.3 million in the same period of 2024[207]. - For the nine months ended September 30, 2025, net revenue reached $291.6 million, up 8.9% from $269.2 million in the prior year[207]. - Total net revenues for the three months ended September 30, 2025 increased by $6.3 million, or 7%, to $98.6 million compared to the same period in 2024, driven by growth in Tucows Domains, Wavelo, and Ting[254]. - For the nine months ended September 30, 2025, total net revenues increased by $22.4 million, or 8%, to $291.6 million compared to the same period in 2024, with significant contributions from Tucows Domains, Wavelo, and Ting[255]. - Ting generated $17.0 million in net revenue during the three months ended September 30, 2025, up $1.7 million, or 11%, driven by subscriber growth on the Fiber network[258]. - Wavelo Platform Services net revenues for the three months ended September 30, 2025 increased by $1.8 million, or 18%, to $11.9 million, supported by incremental revenues from existing and new customers[261]. - Wholesale domain services net revenue increased by $2.0 million, or 4%, to $51.9 million during the three months ended September 30, 2025, due to passthrough price increases and recognition of previously deferred revenue[265]. - Value-added services net revenue increased by $0.9 million, or 17%, to $6.1 million during the three months ended September 30, 2025, driven by strong expiry auction sales[268]. Subscriber and Infrastructure Metrics - As of September 30, 2025, Ting Internet had 52,000 active subscribers, an increase from 50,000 active subscribers as of September 30, 2024[209]. - Ting Internet had access to 126,000 owned infrastructure serviceable addresses as of September 30, 2025, down from 132,000 in the previous year[209]. - Contract liabilities increased by $1.9 million to $158.7 million as of September 30, 2025, primarily due to Ting construction mobilization in a new partner market[256]. - As of September 30, 2025, EchoStar accounted for 12% of total net revenues and represented 51% of total accounts receivable[257]. - Ting Internet had access to 126,000 owned infrastructure serviceable addresses and 52,000 active subscribers as of September 30, 2025, compared to 132,000 and 50,000 respectively in the prior year[260]. Cost and Expense Management - Total cost of revenues for the three months ended September 30, 2025, was $74.4 million, reflecting a $4.3 million increase from $70.1 million in the same period in 2024[285]. - Cost of revenues for Ting's Fiber Internet Services increased by $2.2 million, or 51%, to $6.5 million for the three months ended September 30, 2025, compared to the same period in 2024[288]. - Total cost of revenues for the nine months ended September 30, 2025, increased by $13.9 million, or 7%, to $221.8 million from $207.9 million in the same period in 2024[286]. - Costs for Wholesale domain services for the nine months ended September 30, 2025 increased by $5.6 million, or 5%, to $123.4 million compared to $117.8 million for the same period in 2024[295]. - Costs for retail domain services for the nine months ended September 30, 2025 increased by $0.6 million, or 5%, to $13.0 million compared to $12.4 million for the same period in 2024[299]. - Cost of revenues from Mobile Services and Eliminations for the nine months ended September 30, 2025 increased by $4.2 million or 48%, to $13.0 million compared to $8.8 million for the same period in 2024[302]. - Sales and marketing expenses for the nine months ended September 30, 2025 decreased by $13.7 million, or 28%, to $34.8 million compared to $48.5 million for the same period in 2024[307]. - General and administrative expenses for the nine months ended September 30, 2025 decreased by $1.9 million or 6%, to $28.6 million compared to $30.5 million for the same period in 2024[314]. - Technical operations and development expenses for the nine months ended September 30, 2025 decreased by $0.7 million, or 5%, to $13.4 million compared to $14.1 million for the same period in 2024[311]. - Network expenses for the nine months ended September 30, 2025 decreased by $2.4 million or 5%, to $49.7 million compared to $52.1 million for the same period in 2024[304]. Strategic Initiatives and Future Outlook - The company is reviewing strategic alternatives for the Ting business due to ongoing capital needs[214]. - The company continues to invest in fiber to the home (FTTH) deployments, reflecting ongoing efforts to build networks in areas with strong demand, despite the risks associated with upfront investments[230]. - Wavelo's software solutions are being utilized by EchoStar and Ting to enhance subscriber growth and operational efficiency[216]. - The company continues to evaluate the potential impact of the One Big Beautiful Bill Act on future periods and related disclosures[325]. - The Company plans to fund cash requirements for Tucows businesses excluding Ting solely through operating income for Fiscal 2025[352]. - The company has commenced a process to review strategic alternatives for the Ting business due to ongoing capital needs and potential inability to meet financial obligations[350]. Financial Position and Risks - As of September 30, 2025, cash and cash equivalents decreased by $2.8 million, primarily due to $3.2 million used in operating activities and $12.8 million for additions to property and equipment[332]. - As of September 30, 2025, Ting had $33.7 million in unrestricted cash and cash equivalents, down from $45.4 million as of December 31, 2024[349]. - The Company had $40.1 million in outstanding foreign exchange forward contracts to trade U.S. dollars for Canadian dollars[358]. - A sensitivity analysis indicated that a hypothetical 10% adverse movement in foreign currency exchange rates would decrease net income by approximately $4.0 million for the nine months ended September 30, 2025[360]. - The company evaluates credit risk concentrations primarily related to cash equivalents, marketable securities, foreign exchange contracts, and accounts receivable[361]. - Interest rate risk exposure is primarily related to the 2023 Credit Agreement[362]. - The company will continue to monitor foreign exchange exposure risks and may take additional actions to hedge or mitigate these risks in the future[360].

Core Points - Tucows Inc. will report its financial results for Q3 2025 on November 6, 2025, at 5:05 p.m. ET [1] - A pre-recorded audio commentary and transcript discussing the quarter and outlook will be available on the Tucows website concurrently with the financial results release [2] - Shareholders and analysts can submit questions to management for a week following the results announcement, with responses to be posted on November 25, 2025 [3] Company Overview - Tucows connects people to internet access through various services including communications technology, domain services, and fiber-optic 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 approximately 24 million domain names and offers services through a global reseller network of over 35,000 web hosts and ISPs [4]

Core Insights - Wavelo has launched "Free Your Data," a solution aimed at enabling Communications Service Providers (CSPs) to enhance their AI strategies by unlocking data trapped in legacy systems [1][2][3] Group 1: Product Offering - "Free Your Data" addresses the challenge of accessing customer and network data that is often stuck in outdated BSS/OSS systems, which hinders CSPs from leveraging AI effectively [2][4] - The solution captures latent data from legacy systems for real-time orchestration, transforming static APIs into real-time event streams, thus allowing immediate data value extraction [2][3] Group 2: Industry Context - The telecom industry faces significant challenges in AI transformation due to outdated infrastructure that prioritizes operational efficiency over data accessibility [4] - Wavelo's offering is timely as CSPs seek to scale their AI initiatives without incurring high costs or operational disruptions associated with system overhauls [4] Group 3: Competitive Advantage - Wavelo's system-agnostic, event-driven architecture allows operators to modernize their systems at their own pace, providing a competitive edge in customer experience and operational efficiency [3][5] - The ability to feed AI platforms with real-time data streams is crucial for CSPs aiming to enhance productivity and innovation [3][4] Group 4: Future Outlook - Wavelo's "Free Your Data" is positioned to set a new standard for AI-ready infrastructure in telecom, enabling operators to compete effectively in an AI-driven future [5] - The solution was showcased at industry events, demonstrating its capability to activate untapped data across complex ecosystems for AI-driven strategies [4][5]

Core Insights - Tucows Inc. (TCX) shares increased by 12.7% following the second-quarter 2025 results, outperforming the S&P 500 index's 0.7% growth, but experienced an 8.4% decline over the past month while the S&P 500 rose by 2.3% [1] Financial Performance - Net revenues for Q2 2025 rose by 10% to $98.5 million from $89.4 million in Q2 2024, with gross profit increasing by 6% to $22.1 million from $20.8 million, driven by margin expansion in Wavelo Platform and Tucows Domains segments [2] - The net loss narrowed to $15.6 million, or $1.41 per share, from $18.6 million, or $1.70 per share, a year earlier, while adjusted EPS improved to a loss of $1.47 from a loss of $1.63 [3] - Adjusted EBITDA surged by 37% to $12.6 million from $9.2 million, reflecting broad-based revenue growth and cost discipline [3] Segment Performance - Ting Internet Services saw revenues increase by 12% year over year to $16.4 million, with an 8% rise in subscribers to 52,100, and adjusted EBITDA loss narrowed to $0.6 million from $6.4 million [4] - Wavelo Platform Services achieved a 20.5% revenue increase year over year to $12.7 million, with adjusted EBITDA climbing 37% to $5.4 million [5] - Tucows Domains revenues rose by 8% year over year to $67.6 million, with adjusted EBITDA increasing by 12% to $12.5 million, despite a 2% decline in domains under management [6] Management Insights - CEO Elliot Noss noted progress towards the $47 million full-year adjusted EBITDA target, emphasizing operational transformation in Ting Internet and disciplined growth in Wavelo Platform [7] - The shift towards partner infrastructure in Ting Internet markets is seen as a strategic move to enhance capital efficiency while maintaining ISP relationships [7] Operational Factors - The quarter's performance benefited from strong revenue contributions across all segments, with notable margin expansion in Wavelo Platform and Tucows Domains, alongside cost discipline and AI-driven efficiency gains [8] - A one-time lease accounting adjustment at Ting Internet temporarily reduced its gross margin by $2.7 million [8] Future Guidance - Tucows reiterated confidence in achieving its 2025 adjusted EBITDA guidance of $47 million, supported by ongoing operational improvements and targeted marketing initiatives [9][10] Strategic Developments - In Q2, Ting Internet sold non-strategic fiber network assets for over $15 million, aligning with the strategy to transition to a pure-play ISP and reallocating capital towards higher-return opportunities [11]

Financial Data and Key Metrics Changes - Tucows reported a consolidated top line growth of 10% year over year in Q2 2025, with gross profit increasing by 6% and adjusted EBITDA rising by 37% to $12.6 million [6][32] - Corporate net debt decreased to $190.3 million, marking a fifth consecutive quarterly decline, with net leverage at 3.14 times and interest coverage at 3.99 times [6][36] - Year-to-date adjusted EBITDA reached $26.2 million, slightly ahead of the full year guidance of $47 million [6][36] Business Line Data and Key Metrics Changes - Tucows Domains experienced an 8% year-over-year revenue increase in Q2, with gross margin expanding by 14% and adjusted EBITDA growing by 12% [10][33] - WaveLow's revenue increased by 20.5% year over year to $12.7 million, with gross margin rising by 23.6% [16][34] - Ting's revenue grew by 12% year over year to $16.4 million, driven by an 8% increase in subscribers and small ARPU improvements [23][34] Market Data and Key Metrics Changes - The overall combined renewal rate for all TLDs across Tucows' brands was 75%, slightly declining but above the industry average [12] - The wholesale channel revenue rose by 8% year over year to $57.3 million, while retail channel revenue increased by 10% to $10.3 million [11] Company Strategy and Development Direction - Tucows is focusing on executing the Radix migration and developing hosting and billing initiatives, while pursuing new GTLD opportunities slated for 2026 [15] - The company is transitioning from building networks to a pure play ISP model, with a focus on selling non-strategic assets [26][40] - The strategy includes leveraging AI tools to improve customer acquisition costs and conversion rates [30][41] Management's Comments on Operating Environment and Future Outlook - The management noted mixed economic signals but remains prudent and conservative in their approach [38] - The US fiber market is transitioning towards execution, with increasing demand and a shift in capital strategies [41] - The company is actively evaluating strategic paths to unlock value and support long-term success [43] Other Important Information - Tucows signed a contract with Radix to provide technical services, with migration expected towards the end of the year [9][14] - The company successfully sold non-strategic assets for over $15 million in three transactions [26][36] Q&A Session Summary - No live Q&A session was held; instead, questions were invited via email, with responses to be posted on August 26 [2][3][44]