Tucows (NASDAQ:TCX) Announces Quarterly Earnings Results

Tucows (NASDAQ:TCX) (TSE:TC) announced its quarterly earnings data on Thursday. The information services provider reported ($1.51) EPS for the quarter, Zacks reports. The business had revenue of $96.66 million during the quarter.

Here are the key takeaways from Tucows’ conference call:

• Radix Registry migration completed; Domains delivered higher gross profit and adjusted EBITDA year‑over‑year despite a modest revenue dip, supported by a favorable high‑margin product mix and stronger retail performance.
• Ting revenue grew 19% with accelerating subscriber adds, gross profit turned meaningfully positive and adjusted EBITDA loss narrowed to -$0.4M, helped by construction revenue from a senior‑living contract.
• Wavelo showed slight revenue growth but lower gross profit and adjusted EBITDA as management deliberately increased sales and marketing spend to strengthen pipeline and support future bookings.
• Corporate segment headwinds from legacy mobile obligations and professional fees pressured results — GAAP net loss widened to $18.1M, corporate gross profit and adjusted EBITDA were negative, and EchoStar/MVNO exposure remains a risk.
• Cash flow and liquidity improved with a return to positive operating cash flow of $3.5M and covenant compliance, but sizable net debt (Ting ~ $417.8M; corporate ex‑Ting $162.2M) remains a material consideration.

Tucows Stock Down 5.0%

Shares of NASDAQ TCX traded down $0.80 during mid-day trading on Friday, reaching $15.27. 21,994 shares of the company were exchanged, compared to its average volume of 25,630. The stock has a market cap of $169.96 million, a price-to-earnings ratio of -2.15 and a beta of 0.90. Tucows has a 1 year low of $14.86 and a 1 year high of $25.17. The firm has a 50-day moving average of $16.75 and a 200 day moving average of $19.64.

Institutional Investors Weigh In On Tucows

A number of hedge funds have recently made changes to their positions in TCX. BNP Paribas Financial Markets lifted its stake in shares of Tucows by 69.3% during the 3rd quarter. BNP Paribas Financial Markets now owns 1,346 shares of the information services provider’s stock worth $25,000 after purchasing an additional 551 shares during the last quarter. Tower Research Capital LLC TRC raised its stake in Tucows by 234.8% in the second quarter. Tower Research Capital LLC TRC now owns 2,461 shares of the information services provider’s stock valued at $49,000 after buying an additional 1,726 shares during the last quarter. Russell Investments Group Ltd. raised its stake in Tucows by 903.4% in the third quarter. Russell Investments Group Ltd. now owns 3,873 shares of the information services provider’s stock valued at $72,000 after buying an additional 3,487 shares during the last quarter. MetLife Investment Management LLC purchased a new stake in Tucows in the fourth quarter valued at about $87,000. Finally, JPMorgan Chase & Co. raised its stake in Tucows by 117.4% in the third quarter. JPMorgan Chase & Co. now owns 6,923 shares of the information services provider’s stock valued at $128,000 after buying an additional 3,739 shares during the last quarter. 73.64% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Separately, Weiss Ratings reissued a “sell (d-)” rating on shares of Tucows in a research report on Tuesday, April 21st. One research analyst has rated the stock with a Sell rating, According to data from MarketBeat, the company has a consensus rating of “Sell”.

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.