Tucows Inc. Reports 10% Revenue Growth to $98.5 Million, Net Loss Decreases

Tucows Inc. reported a net revenue of $98.5 million for the three months ended June 30, 2025, marking a 10% increase from $89.4 million in the same period last year. For the six months ended June 30, 2025, revenue rose to $193.1 million, up from $176.9 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 $15.6 million for the quarter, compared to a loss of $18.6 million in the prior year, and a loss of $30.8 million for the six months, down from $45.1 million.

In terms of operational metrics, Ting reported a 13% increase in revenue to $16.4 million for the second quarter, attributed to subscriber growth and expansion of its fiber network. As of June 30, 2025, Ting had 52,000 active subscribers and access to 132,000 owned infrastructure serviceable addresses. Wavelo's revenue increased by 21% to $12.7 million, driven by existing and new customer growth, while Tucows Domains saw a revenue increase of 6% to $51.6 million, primarily due to price increases and strong performance in expiry auction sales.

The company also experienced a significant change in its cost structure, with total cost of revenues rising to $76.4 million for the quarter, an 11% increase from the previous year. This rise was largely due to a one-time lease accounting adjustment of $3.0 million in the Ting segment and increased costs associated with subscriber growth. General and administrative expenses increased slightly, while sales and marketing expenses decreased by 19% to $11.9 million, reflecting cost-cutting measures from the 2024 Capital Efficiency Plan.

Tucows continues to focus on strategic developments, including the ongoing expansion of its Ting Internet service and the integration of Wavelo's platform services. The company has also implemented workforce reductions aimed at streamlining operations and reducing costs. As of June 30, 2025, the company had cash and cash equivalents totaling $68.6 million, with a significant portion allocated to Ting. The outlook remains cautious, with management emphasizing the need for additional financing to support ongoing operations and expansion efforts, particularly in light of the company's substantial debt obligations.