Tucows (NASDAQ:TCX) Posts Earnings Results

Tucows (NASDAQ:TCX) (TSE:TC) released its earnings results on Thursday. The information services provider reported ($1.73) earnings per share (EPS) for the quarter, Zacks reports.

Here are the key takeaways from Tucows’ conference call:

• Adjusted EBITDA of $50.6 million for FY2025 came in $3.6 million above guidance, driven by outperformance in Domains and Wavelo.
• Wavelo delivered double‑digit growth across revenue, gross profit, and adjusted EBITDA, beating 2025 guidance by $4.5 million and entering 2026 with a strong pipeline and targeted sales investment plans.
• Tucows Domains posted growth in revenue, gross profit, and adjusted EBITDA supported by a scaled registry business and a high‑margin expiry stream, with 2026 Domains adjusted EBITDA guidance of $47M–$49M.
• Ting remains a drag and is under strategic review; it finished below guidance in 2025, delivered only modest margin improvement, and carries significant net debt (~$438.8M), creating timing and cash‑flow uncertainty.
• 2026 consolidated adjusted EBITDA guidance excluding Ting of $52.5M–$58.5M and a stated shift toward a capital‑light model focused on free cash flow, AI‑driven efficiency, and disciplined capital allocation signal management’s emphasis on cash generation and deleveraging.

Tucows Stock Down 4.6%

Shares of TCX opened at $17.75 on Friday. The company has a market capitalization of $197.03 million, a price-to-earnings ratio of -1.98 and a beta of 1.00. Tucows has a 52 week low of $13.27 and a 52 week high of $25.17. The stock’s 50-day moving average price is $22.38 and its 200-day moving average price is $20.26.

Institutional Investors Weigh In On Tucows

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. MetLife Investment Management LLC purchased a new position in shares of Tucows during the 4th quarter valued at approximately $87,000. Goldman Sachs Group Inc. purchased a new position in Tucows in the fourth quarter valued at $506,000. Two Sigma Investments LP raised its position in shares of Tucows by 79.8% in the third quarter. Two Sigma Investments LP now owns 19,635 shares of the information services provider’s stock worth $364,000 after acquiring an additional 8,717 shares during the period. BNP Paribas Financial Markets boosted its stake in shares of Tucows by 69.3% during the 3rd quarter. BNP Paribas Financial Markets now owns 1,346 shares of the information services provider’s stock worth $25,000 after acquiring an additional 551 shares in the last quarter. Finally, Russell Investments Group Ltd. boosted its stake in shares of Tucows by 903.4% during the 3rd quarter. Russell Investments Group Ltd. now owns 3,873 shares of the information services provider’s stock worth $72,000 after acquiring an additional 3,487 shares in the last quarter. Institutional investors and hedge funds own 73.64% of the company’s stock.

Wall Street Analyst Weigh In

Separately, Weiss Ratings restated a “sell (d-)” rating on shares of Tucows in a research note on Thursday, January 22nd. One analyst has rated the stock with a Sell rating, According to MarketBeat, the company currently has an average rating of “Sell”.

About Tucows

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.