Business
Momentum Continues in Q2 as Tucows Reports Growth in Revenue and Profitability
TORONTO, Aug. 7, 2025 /PRNewswire/ - Tucows Inc. (NASDAQ: TCX) (TSX: TC), a global internet services leader, today reported its unaudited financial results
About this update from Tucows Inc.
[{"type":"text","content":"TORONTO, Aug. 7, 2025 /PRNewswire/ - Tucows Inc. (NASDAQ: TCX) (TSX: TC), a global internet services leader, today reported its unaudited financial results for the second quarter ended June 30, 2025. All figures are in U.S. dollars.\n\n \n \n \n \n \n \n\n \n\"Q2 showed good progress in all three businesses,\" said Elliot Noss, President & CEO of Tucows. \"Revenue grew 10% on the back of across-the-board topline gains, with Wavelo and Tucows Domains coming in ahead of plan. Gross profit rose 6%, and net of a one-off fiber-lease expense at Ting—each business continued the robust year-over-year margin expansion we saw in Q1. Most importantly, our ongoing work to improve capital and operational efficiency, including Ting's pivot to a capital-light model, helped drive a 37% jump in Adjusted EBITDA, highlighting our improved economics. This put our mid-year Adjusted EBITDA slightly ahead of progress towards our 2025 guidance.\"\nFinancial Results \nConsolidated net revenue for the second quarter of 2025 increased 10.1% to $98.5 million from $89.4 million for the second quarter of 2024, driven by strong year-over-year revenue gains from all three Tucows businesses.\nGross profit for the second quarter of 2025 increased 6.2% to $22.1 million from $20.8 million from the second quarter of 2024. The increase in gross profit was driven by strong year-over-year margin gains from Wavelo and Tucows Domains, but was offset by a decrease in gross margin from Ting, due to a one-time, non-cash lease adjustment resulting from a revision to lease payment recognition periods for certain contracts.\nNet loss for the second quarter of 2025 decreased to $15.6 million, or a loss of $1.41 per share, compared to a net loss of $18.6 million, or a loss of $1.70 per share, for the second quarter of 2024, reflecting improved operational efficiency and revenue momentum. Adjusted net income1 (loss) and Adjusted EPS1 in Q2 2025 are ($16.3 million) and ($1.47) per share compared to Q2 2024 Adjusted net income1 (loss) of ($17.8 million) and Adjusted EPS1 of ($1.63) per share.\nAdjusted EBITDA1 for the second quarter of 2025 grew 37% to $12.6 million from $9.2 million for the second quarter of 2024. The year-over-year improvement was fueled by revenue growth across all three segments: margin expansion from Wavelo and Tucows Domains, Ting's shift to a capital-light ...