Tucows Inc. Reports $94.6 Million Revenue in Q1 2025, Net Loss Decreases to $15.1 Million

Tucows Inc. reported a net revenue of $94.6 million for the first quarter of 2025, marking an increase of 8% from $87.5 million in the same period last year. The growth was driven by strong performances across its segments, particularly in Tucows Domains, which saw a revenue increase of $3.4 million due to pricing adjustments and robust expiry auction sales. The Ting segment also contributed positively, with revenues rising by $2.2 million, attributed to subscriber growth in its fiber internet services. Wavelo's revenues increased by $2 million, reflecting gains from both existing and new customers.

The company's gross profit for the quarter was $23.5 million, up from $18.3 million a year earlier, while total expenses decreased significantly from $34.8 million to $25.6 million. This reduction in expenses was primarily due to lower sales and marketing costs, which fell by 41% to $11 million, as well as decreased technical operations and development expenses. Despite these improvements, Tucows reported a net loss of $15.1 million, a decrease from a loss of $26.5 million in the prior year, with a basic and diluted loss per share of $1.37 compared to $2.42.

Operationally, Tucows saw an increase in its customer base, with Ting Internet managing 52,000 active subscribers as of March 31, 2025, up from 46,000 a year prior. The company also expanded its serviceable addresses to 133,000 owned and 54,000 partner infrastructure addresses. The filing noted that the company is focusing on expanding its fiber internet footprint while managing costs through initiatives like the 2024 Capital Efficiency Plan, which has already led to significant personnel reductions.

In terms of financial health, Tucows reported total assets of $741.9 million and a stockholders' deficit of $108.3 million as of March 31, 2025. The company’s cash and cash equivalents decreased to $38.1 million from $56.9 million at the end of 2024, primarily due to cash used in operating activities and capital expenditures. The company has also entered into a $240 million revolving credit facility, which it plans to utilize for ongoing operations and potential expansions. Looking ahead, Tucows remains focused on leveraging its existing platforms and expanding its market presence while navigating the challenges posed by competitive pressures and operational costs.