Tucows Reports 7% Revenue Growth to $98.6 Million in Q3 2025, Net Loss Increases

Tucows Inc. reported a net revenue of $98.6 million for the third quarter of 2025, marking a 7% increase from $92.3 million in the same period last year. For the nine months ending September 30, 2025, total revenue reached $291.6 million, up 8% from $269.2 million in 2024. The growth was driven by increases across all segments, particularly in Tucows Domains, Wavelo, and Ting, although revenues from mobile services saw a decline. The company recorded a net loss of $23.0 million for the quarter, slightly higher than the $22.3 million loss reported in Q3 2024, with a basic and diluted loss per share of $2.08.

In terms of operational metrics, Ting reported a total of 52,000 active subscribers as of September 30, 2025, an increase from 50,000 a year earlier. The segment also had access to 126,000 owned infrastructure serviceable addresses, down from 132,000 in the previous year. Wavelo's platform services generated $11.9 million in revenue for the quarter, an 18% increase year-over-year, while Tucows Domains saw a revenue increase to $67.8 million, up 5% from the previous year. The company’s total customer base for domain services decreased to 22.3 million domain names under management, down from 24.6 million in 2024.

Tucows experienced significant changes in its financial structure, including a $10.9 million impairment charge related to property and equipment, which was part of a broader restructuring effort. The company also reported a decrease in sales and marketing expenses, which fell by 22% to $11.9 million, attributed to reduced personnel costs and a strategic shift in marketing focus. General and administrative expenses decreased by 16% to $9.7 million, reflecting lower professional service fees and personnel costs.

Looking ahead, Tucows is focused on expanding its Ting Internet service while managing its operational costs through ongoing restructuring initiatives. The company has initiated a review of strategic alternatives for the Ting business, given its ongoing capital needs and the recent missed preferred return payments amounting to $9.5 million. The company’s liquidity position remains a concern, with cash and cash equivalents totaling $70.8 million as of September 30, 2025, down from $73.2 million at the beginning of the year. The company is also in compliance with its financial covenants under the 2023 Credit Facility, which has a remaining balance of $190.4 million.