On February 12, 2026, Tucows Inc. (NASDAQ: TCX, TSX: TC), a leader in global internet services, announced its unaudited financial results for the fourth quarter and full year ended December 31, 2025. The company showcased a solid performance, exceeding its 2025 guidance by $3.6 million, a testament to the resilience and operational efficiency of its business segments.

2. Strong Year of Execution

David Woroch, CEO of Tucows, emphasized the company's robust execution throughout 2025. He noted a significant increase in revenue, which rose by 8% compared to 2024, reaching $390.3 million. Gross profit also experienced a notable increase of 13%, attributed to enhanced profitability across Tucows' three business segments: Domains, Wavelo, and Ting. The company generated an impressive $50.6 million in Adjusted EBITDA, a remarkable 45% year-over-year increase.

Woroch's optimism was evident as he stated, "We remain focused on strengthening the business through operational and capital efficiency initiatives... [which] we believe we are building a more resilient earnings profile and a stronger foundation for long-term value."

3. Financial Highlights

Fourth Quarter Performance

In the fourth quarter of 2025, Tucows reported:

Net Revenue: Increased by 6% to $98.7 million from $93.1 million in Q4 2024.

Gross Profit: Rose by 14% to $24.1 million from $21.2 million in Q4 2024, driven by improved margins from Wavelo and Domains, alongside reduced network expenses at Ting.

Net Loss: Narrowed to $22.0 million ($1.98 per share), a significant improvement from a net loss of $42.5 million ($3.86 per share) in Q4 2024.

Adjusted Net Loss: Stood at $19.2 million (adjusted EPS of $(1.73)), compared to an adjusted net loss of $15.8 million (adjusted EPS of $(1.43)) in the same period last year.

Adjusted EBITDA: Decreased by 14% to $11.1 million from $12.8 million in Q4 2024, primarily due to obligations related to the legacy mobile business.

Annual Financial Results

For the full year 2025, Tucows reported:

Net Revenue: Increased by 8% to $390.3 million from $362.3 million in 2024.

Gross Profit: Increased by 13% to $93.9 million from $83.0 million in 2024.

Net Loss: Improved to $75.8 million from a loss of $109.9 million in 2024.

Adjusted Net Loss: Decreased to $66.2 million from $76.8 million in 2024.

Adjusted EBITDA: Rose to $50.6 million, up from $34.9 million in 2024.

Cash Position

At the end of Q4 2025, Tucows reported cash and cash equivalents of $64.2 million, a slight decline from $70.8 million at the end of Q3 2025 and $73.2 million at the end of Q4 2024.

4. Business Segment Performance

Domains and Wavelo Services

Total Revenue: From Domains and Wavelo services reached $78.1 million, an increase from $75.6 million in Q4 2024.

Gross Profit: For this segment, gross profit was $25.7 million, compared to $24.6 million in the previous year.

Ting Internet Services

Revenue: Ting Internet services generated $18.5 million, up from $15.7 million in Q4 2024.

Gross Profit: This segment reported a gross profit of $1.6 million, a significant recovery from a loss of $1.2 million in Q4 2024.

5. Management Commentary and Future Outlook

Management's pre-recorded audio commentary regarding the quarterly results will be available for shareholders and analysts, reflecting the company's commitment to transparency and engagement with its stakeholders. Questions can be submitted for management's response, further enhancing investor communication.

6. Conclusion

Tucows Inc.'s fiscal 2025 results reflect a year of solid growth and strategic improvements across its core businesses. With a clear focus on operational efficiency and a resilient earnings profile, Tucows is poised to continue its trajectory of growth in the evolving landscape of internet services. The company's commitment to enhancing shareholder value remains evident as it navigates forward in 2026 and beyond.

Original press release