Tucows (NASDAQ:TCX) reported fourth-quarter 2025 results that management said capped a “strong year,” with outperformance in its Domains and Wavelo segments helping the company finish above its full-year adjusted EBITDA guidance. In pre-recorded management commentary, President and CEO David Woroch highlighted continued execution across the company’s businesses amid what he described as a “period of real complexity,” while CFO Ivan Ivanov detailed segment-level performance, cash flow, and leverage metrics.
Fourth-quarter results: revenue growth and mix-driven gross profit
For the fourth quarter ended Dec. 31, 2025, Tucows posted consolidated revenue of $98.7 million, up 6% year over year, with contributions from all three segments. Domains, Wavelo, and Corporate combined contributed about $80 million, while Ting Fiber contributed $18.5 million, Ivanov said.
Operating expenses totaled $33.1 million, down 35% from the prior-year period. Ivanov said the year-over-year decline largely reflected the absence of large restructuring costs and impairment charges recorded in the year-ago quarter.
Adjusted EBITDA for Q4 was $11.1 million, down 14% year over year, with $11.9 million from Domains, Wavelo, and Corporate combined and an adjusted EBITDA loss of $0.9 million from Ting.
On a GAAP basis, net loss for the quarter was $22.0 million, or $1.98 per share, improving from a net loss of $42.5 million, or $3.86 per share, in Q4 2024. On a non-GAAP adjusted basis, net loss was $19.4 million, or $1.73 per share, compared with an adjusted net loss of $15.8 million, or $1.43 per share, a year earlier. Ivanov said the year-over-year changes were primarily attributable to professional fees and legacy mobile obligations.
Full-year 2025: adjusted EBITDA tops guidance, led by Domains and Wavelo
Management said the company finished 2025 with consolidated adjusted EBITDA of $50.6 million, $3.6 million above guidance and up 45% from fiscal 2024. Woroch said the gains were “primarily driven by outperformance from Domains and Wavelo.” Excluding Ting, adjusted EBITDA for fiscal 2025 was $56.8 million, Ivanov added.
Segment performance: Domains and Wavelo outperformance; Ting improves but misses expectations
Domains. Tucows Domains delivered what Woroch described as “another strong year” in 2025, exceeding adjusted EBITDA guidance by $4.7 million and growing across revenue, gross profit, and adjusted EBITDA. He cited execution across core segments, growth in the emerging registry services business, and continued sales momentum from the expiry stream.
Ivanov reported Q4 Domains revenue of $66.4 million, up modestly from $65.7 million a year earlier. Gross profit increased 4% to $19.2 million (net of network expenses), supported by the high-margin expiry stream, and adjusted EBITDA rose 7% to $12.5 million on “expiry-driven margin strength and prudent expense management.” For the full year, Domains adjusted EBITDA finished at $48.7 million, above guidance.
Within Domains, the wholesale channel posted Q4 revenue of $57.0 million, up 2% year over year, with wholesale gross margin rising 7% to $16.0 million. Domain Services gross margin was flat at $10.1 million, while value-added services generated $5.8 million in gross margin, up 17% year over year, driven by expiry-stream sales. The retail segment recorded modest declines to $9.4 million in revenue and $5.2 million in gross margin.
Woroch also noted that domains under management and transactions were “normalizing at a modestly lower level” due to a previously referenced customer taking business in-house, but said margin remained healthy given the diversity of the reseller base.
Wavelo. Woroch said 2025 marked Wavelo’s “best year yet” for the fourth consecutive year, with double-digit growth across revenue, gross profit, and adjusted EBITDA, beating full-year guidance by $4.5 million. He cited the renewal of Wavelo’s inaugural customer, alignment of incentives, disciplined profitability, and a pipeline and product posture positioned for 2026. He also reiterated that Wavelo is investing modestly in sales and marketing to strengthen pipeline health, while operating with what he described as a lean sales and marketing team aided by targeted go-to-market execution and AI integration.
In Q4, Wavelo revenue rose 19% year over year to $11.7 million. Gross profit increased 7% to $6.6 million, which Ivanov attributed to the EchoStar renewal, rate card dynamics, and improved costs. Adjusted EBITDA declined to $3.4 million from $3.7 million, driven primarily by higher operating investment, including sales and marketing and platform investment. For the full year, Wavelo adjusted EBITDA was $17.5 million.
Ting Internet. Management contrasted Ting’s 2025 performance with the prior year, with Woroch saying results improved meaningfully but finished below guidance. He said Ting delivered solid top-line growth and improved adjusted EBITDA, though gross profit was flat year over year and fell short of expectations. He attributed part of the margin impact to a mix shift between partner and owned markets. Woroch said net subscriber growth saw its strongest quarter in Q4 following a more targeted sales and marketing approach, but the improvement came too late to meaningfully affect full-year results.
Ivanov reported Q4 Ting revenue of $18.5 million, up 18% year over year, supported by subscriber growth. Gross profit improved to $1.6 million from negative $1.2 million in Q4 2024, while gross margin percentage declined due to a shift toward partner markets, which require less capital expenditure but carry higher cost of revenue than organic markets. Ting’s adjusted EBITDA loss narrowed to $0.9 million from $1.5 million.
Woroch said the company continues to work through a strategic process for Ting and will update investors when it has “more definitive information and visibility into timing and outcomes.” He said the near-term focus is to operate Ting responsibly, protect enterprise value, and preserve optionality while pursuing an outcome management believes maximizes shareholder value.
Balance sheet and liquidity: debt levels and covenant compliance
Consolidated cash flow from operating activities was negative $2.6 million in Q4. Domains, Wavelo, and corporate generated $4.4 million, which Ivanov said is typically seasonally lower in the quarter, while Ting generated a $7.0 million outflow mainly related to ABS interest and working capital requirements.
Tucows ended the quarter with $64.2 million in cash and restricted cash, down from $73.2 million a year earlier. Corporate net debt, excluding Ting, was $189.5 million, and Ivanov said the company remained in compliance with covenants under the TCX syndicated facility, reporting a leverage ratio of 3.12 and interest coverage of 4.17 for the quarter. Ting’s net debt was $438.8 million, including ABS notes and preferred shares.
2026 outlook: guidance provided for Domains, Wavelo, and Corporate, excluding Ting
Tucows issued initial 2026 adjusted EBITDA guidance for Domains, Wavelo, and Corporate, explicitly excluding Ting while the strategic process continues. Management said the guidance assumes business-as-usual operations and is subject to macro conditions and other risks described in filings.
- Tucows Domains: adjusted EBITDA of $47 million to $49 million, reflecting integration and maintenance of registry contracts and a moderated contribution from the higher-margin expiry stream following “outsized” 2025 performance.
- Wavelo: adjusted EBITDA of $14.5 million to $15.5 million, assuming continued investment in product features and a modest ramp in sales and marketing to support bookings conversion, and accounting for the range of outcomes for Ting Internet and mobile subscribers currently on the platform.
- Corporate: adjusted EBITDA of negative $6 million to negative $9 million, driven primarily by legacy mobile contract obligations, with plans to reduce those costs; corporate overhead also reflects absorbing some Ting-related corporate costs that are expected to be streamlined over time.
Based on those components, management provided total consolidated 2026 adjusted EBITDA guidance (excluding Ting) of $52.5 million to $58.5 million.
In closing remarks, Woroch described 2026 as a “year of transition,” saying the company is resetting how it operates, allocates capital, and measures returns, with an emphasis on simplifying the business and increasing consistent cash generation. He said Tucows intends to move toward a more capital-light model after the Ting process concludes, focusing on platform businesses with recurring revenue, strong retention, scalable economics, and opportunities for operational improvements through shared infrastructure. He also said the company is working to accelerate practical AI adoption across internal operations while emphasizing measurable benefits and customer protection.
About Tucows (NASDAQ:TCX)
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.
