Business
Tucows Delivers Strong Q1 with Gains in Revenue, Gross Profit and Adjusted EBITDA
TORONTO, May 8, 2025 /PRNewswire/ - Tucows Inc. (NASDAQ: TCX) (TSX: TC), a global internet services leader, today reported its unaudited financial results for
About this update from Tucows Inc.
[{"type":"text","content":"TORONTO, May 8, 2025 /PRNewswire/ - Tucows Inc. (NASDAQ: TCX) (TSX: TC), a global internet services leader, today reported its unaudited financial results for the first quarter ended March 31, 2025. All figures are in U.S. dollars.\n\n\"On the heels of four years of strong revenue growth, we are very pleased with our first quarter results,\" said Elliot Noss, President and CEO of Tucows. \"All three of our businesses delivered year-over-year gains, with an 8% increase in consolidated revenue, a 29% increase in gross profit, and a more than threefold improvement in Adjusted EBITDA compared to Q1 last year. Importantly, we achieved a substantial year-over-year reduction in net loss through strong revenue growth and cost optimization initiatives. We also continued to deleverage the business with payments on our syndicated debt. The progress we are making across the organization positions us well for continued improvement in 2025 and beyond.\"\nFinancial Results \nConsolidated net revenue for the first quarter of 2025 increased 8.2% to $94.6 million from $87.5 million for the first quarter of 2024, driven by strong year-over-year revenue gains from all three Tucows businesses.\nGross profit for the first quarter of 2025 increased 28.5% to $23.5 million from $18.3 million from the first quarter of 2024. The increase in gross profit was driven by strong year-over-year gains from all three Tucows businesses.\nNet loss for the first quarter of 2025 narrowed significantly to $15.1 million, or a loss of $1.37 per share, compared to a net loss of $26.5 million, or a loss of $2.42 per share, for the first quarter of 2024, reflecting improved operational efficiency and revenue momentum. Adjusted net income1 (loss) and Adjusted EPS1 in Q1 2025 are ($14.9 million) and ($1.35) per share compared to Q1 2024 Adjusted net income1 (loss) of ($23.4 million) and Adjusted EPS1 of ($2.14) per share.\nAdjusted EBITDA1 for the first quarter of 2025 climbed 225% to $13.7 million from $4.2 million for the first quarter of 2024, highlighting the strength of our operating leverage. The year-over-year increase was driven by growth of revenues from all three businesses, margin gains, and company-wide cost-reduction efforts, including the 2024 Ting capital efficiency plan.\nWe ended the first quarter of 2025 with cash and cash equivalents, and restricted cash a...