Tucows — Third Quarter 2026 Earnings Summary

Financial Performance

• Consolidated net revenue increased 1.4% year-over-year to $100.0 million (unaudited), driven by growth at Ting.
• Gross profit increased 20.5% year-over-year to $29.1 million and improved 13% sequentially, primarily due to a non-recurring mobile contract re-rate in the Corporate segment and Ting growth.
• Net loss narrowed to $10.3 million (EPS of $(0.92)) from $23.0 million (EPS of $(2.08)) in Q3 2025.
• Adjusted net loss improved to $5.8 million (adjusted EPS of $(0.52)) from $15.8 million (adjusted EPS of $(1.42)) in Q3 2025.
• Adjusted EBITDA rose 39.8% year-over-year to $18.6 million and improved 51% sequentially, driven by Ting performance and the Corporate segment mobile contract re-rate.
• Cash and cash equivalents, including restricted amounts, totaled $41.0 million at quarter-end, down from $60.2 million in Q2 2026 and $70.8 million in Q3 2025.
• Net cash used in operating activities was $4.6 million for the quarter, compared to $1.5 million provided in Q3 2025.

Guidance and Future Outlook

• Management confirmed the company remains on track for its 2026 guidance.

Business Segments and Product Lines

• Ting Internet Services: Revenue grew to $22.3 million (from $16.9 million in Q3 2025), with Fiber Internet Services at $18.0 million and Construction Services at $4.3 million. Ting reported strong Adjusted EBITDA performance both year-over-year and sequentially.
• Domains and Wavelo Services: Revenue was $75.6 million (down from $79.7 million in Q3 2025). Gross profit was $24.9 million (down from $26.8 million), and Adjusted EBITDA was $15.6 million (down from $16.4 million).
• Corporate & Other: Revenue was $2.0 million. Gross profit improved significantly to $1.5 million from a loss of $2.9 million in Q3 2025, driven by the mobile contract re-rate. Adjusted EBITDA was $1.4 million compared to a loss of $2.2 million in Q3 2025.

Market and Competitive Landscape

• No specific market share, competitor, or market trend data was provided in the press release.

Risks and Challenges

• The release includes standard forward-looking statement disclaimers regarding uncertainties and risks that could cause actual results to differ materially from expectations, referencing the Risk Factors section of SEC filings.
• No specific operational risks or challenges were detailed beyond the general forward-looking statement warnings.

Management Commentary and Tone

• David Woroch, President and CEO, stated that Adjusted EBITDA and gross profit grew year-over-year and the company is on track for 2026 guidance.
• Management highlighted progress on balance sheet obligations, noting the retirement of Ting preferred units valued at $149.3 million and the repayment of $6 million on the syndicated loan facility.
• Management noted the assignment of Ting's Colorado Springs lease after quarter-end, expected to release the parent guaranty in the spring, describing these steps as making the business "simpler and more flexible."

Other Key Points

• The company retired Ting preferred units valued at $149.3 million.
• The company repaid $6 million on its syndicated loan facility.
• Post-quarter end, Tucows agreed to assign Ting's Colorado Springs lease to release the parent guaranty.
• In Q3 2025, the company revised segment gross profit presentation to reflect amounts net of network expenses to align with management's evaluation of operating performance.
• Tucows manages over 21 million domain names through a global reseller network of 33,000 web hosts and ISPs.