Tucows (NASDAQ:TCX) Announces Quarterly Earnings Results

Tucows (NASDAQ:TCX) (TSE:TC) released its quarterly earnings results on Thursday. The information services provider reported ($1.51) earnings per share for the quarter, Zacks reports.

Here are the key takeaways from Tucows’ conference call:

• Radix Registry migration completed; Domains delivered higher gross profit and adjusted EBITDA year‑over‑year despite a modest revenue dip, supported by a favorable high‑margin product mix and stronger retail performance.
• Ting revenue grew 19% with accelerating subscriber adds, gross profit turned meaningfully positive and adjusted EBITDA loss narrowed to -$0.4M, helped by construction revenue from a senior‑living contract.
• Wavelo showed slight revenue growth but lower gross profit and adjusted EBITDA as management deliberately increased sales and marketing spend to strengthen pipeline and support future bookings.
• Corporate segment headwinds from legacy mobile obligations and professional fees pressured results — GAAP net loss widened to $18.1M, corporate gross profit and adjusted EBITDA were negative, and EchoStar/MVNO exposure remains a risk.
• Cash flow and liquidity improved with a return to positive operating cash flow of $3.5M and covenant compliance, but sizable net debt (Ting ~ $417.8M; corporate ex‑Ting $162.2M) remains a material consideration.

Tucows Stock Up 6.5%

Shares of TCX traded up $0.98 during mid-day trading on Thursday, hitting $16.04. 23,451 shares of the company’s stock were exchanged, compared to its average volume of 27,871. Tucows has a 52 week low of $14.97 and a 52 week high of $25.17. The stock’s 50-day simple moving average is $16.80 and its 200-day simple moving average is $19.65. The firm has a market cap of $178.54 million, a price-to-earnings ratio of -2.34 and a beta of 0.90.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the business. BNP Paribas Financial Markets increased its holdings in shares of Tucows by 69.3% during the third quarter. BNP Paribas Financial Markets now owns 1,346 shares of the information services provider’s stock worth $25,000 after purchasing an additional 551 shares during the period. Rhumbline Advisers increased its holdings in shares of Tucows by 6.2% during the third quarter. Rhumbline Advisers now owns 10,078 shares of the information services provider’s stock worth $187,000 after purchasing an additional 590 shares during the period. Tower Research Capital LLC TRC increased its holdings in shares of Tucows by 234.8% during the second quarter. Tower Research Capital LLC TRC now owns 2,461 shares of the information services provider’s stock worth $49,000 after purchasing an additional 1,726 shares during the period. Barclays PLC increased its holdings in shares of Tucows by 21.6% during the fourth quarter. Barclays PLC now owns 11,571 shares of the information services provider’s stock worth $259,000 after purchasing an additional 2,059 shares during the period. Finally, Wells Fargo & Company MN boosted its position in shares of Tucows by 48.2% during the 4th quarter. Wells Fargo & Company MN now owns 8,149 shares of the information services provider’s stock worth $183,000 after acquiring an additional 2,651 shares in the last quarter. 73.64% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings reissued a “sell (d-)” rating on shares of Tucows in a report on Tuesday, April 21st. One investment analyst has rated the stock with a Sell rating, According to data from MarketBeat.com, the company currently has an average rating of “Sell”.

Tucows Company Profile

Tucows Inc (NASDAQ: TCX) is a diversified internet services company primarily known for its domain name registration and management business. Through its Domain Services division, Tucows operates leading reseller platforms such as OpenSRS and Enom, offering domain registration, SSL certificates, email hosting and related value-added services to web professionals, small businesses and enterprise partners worldwide. The company’s platforms enable thousands of resellers to provide branded internet services to their customers, leveraging Tucows’ infrastructure and expertise in the domain name system.

In addition to domain services, Tucows has built a growing portfolio of consumer-facing internet access offerings under the Ting brand.