Tucows (NASDAQ:TCX) Announces Earnings Results

Tucows (NASDAQ:TCX) (TSE:TC) announced its earnings results on Thursday. The information services provider reported ($1.84) EPS for the quarter, FiscalAI reports. The company had revenue of $100.56 million for the quarter.

Here are the key takeaways from Tucows’ conference call:

• Revenue and gross profit increased year over year to $100.6 million and $25.8 million, respectively, while adjusted EBITDA improved sequentially to $12.3 million. Operating cash flow was positive for the second consecutive quarter, reaching $5.5 million year to date.
• Ting delivered a major operating improvement, with revenue up 32% year over year, subscribers increasing by approximately 8,500, and adjusted EBITDA turning positive at $1.5 million. Growth was supported by subscriber additions, Laguna Woods construction activity, lower network expenses, and cost discipline.
• Tucows Domains continued to generate stable gross profit despite a 4% revenue decline and domains under management falling to 21.3 million after a large reseller moved lower-margin domains in-house. Management said the transition is mostly complete and expects domain volumes to remain stable.
• Wavelo profitability declined materially, with revenue down 7% and adjusted EBITDA falling to $2.8 million from $5.4 million a year earlier, reflecting lower professional-services revenue and continued sales and marketing investment. New customer conversions may remain uneven because of lengthy telecommunications-provider sales cycles.
• Management amended and extended the syndicated credit facility, retired Ting’s preferred equity obligation valued at approximately $150 million including cumulative dividends, and acquired the Ting-owned data center. These actions reduce financial overhang, extend financing flexibility, and support a simpler, more capital-light portfolio, although higher professional fees and legacy mobile losses remain near-term headwinds.

Tucows Trading Down 0.4%

NASDAQ TCX opened at $14.07 on Friday. The stock’s 50 day moving average is $12.37 and its two-hundred day moving average is $15.82. The company has a market capitalization of $156.87 million, a price-to-earnings ratio of -1.98 and a beta of 0.88. Tucows has a 1-year low of $8.46 and a 1-year high of $25.17.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings raised Tucows from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Wednesday. One analyst has rated the stock with a Sell rating, According to MarketBeat, Tucows currently has an average rating of “Sell”.

Institutional Investors Weigh In On Tucows

Hedge funds have recently made changes to their positions in the company. Wells Fargo & Company MN grew its stake in Tucows by 48.2% during the fourth quarter. Wells Fargo & Company MN now owns 8,149 shares of the information services provider’s stock worth $183,000 after buying an additional 2,651 shares during the last quarter. MetLife Investment Management LLC bought a new position in shares of Tucows in the fourth quarter valued at approximately $87,000. BNP Paribas Financial Markets boosted its holdings in shares of Tucows by 69.3% in 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. Russell Investments Group Ltd. boosted its holdings in shares of Tucows by 903.4% in 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. Finally, JPMorgan Chase & Co. grew its position in Tucows by 117.4% during the 3rd quarter. JPMorgan Chase & Co. now owns 6,923 shares of the information services provider’s stock worth $128,000 after acquiring an additional 3,739 shares during the last quarter. Institutional investors and hedge funds own 73.64% of the company’s stock.

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.