0001437749-26-008009
SEC filingTucows Inc. reported FY 2025 net revenues of $390.3 million, an 8% increase from $362.3 million in FY 2024. The company recorded a net loss of $75.8 million, an improvement from a net loss of $109.9 million in the prior year. Gross profit was $94.0 million, representing a gross margin of 24.1%. The company generated negative operating cash flow of $5.8 million and ended the year with total assets of $730.9 million and total equity of negative $164.2 million. Revenue growth was driven by increases across the Tucows Domains, Ting, and Wavelo segments, partially offset by a decline in Mobile Services. The company's Ting segment initiated a strategic review process to address ongoing liquidity requirements.
Tucows Inc. reported FY 2025 financial results with net revenues of $390.3 million, representing an 8% increase from $362.3 million in FY 2024. The company improved its net loss position to $75.8 million from $109.9 million in the prior year. Gross profit was $94.0 million with a gross margin of 24.1%. The company reported a loss from operations of $23.5 million and comprehensive loss of $74.9 million. Basic and diluted loss per common share was $7.00. The Ting segment initiated a strategic review process to address ongoing liquidity requirements following a Return Breach and Trigger Event asserted by Generate in December 2025 related to unpaid quarterly preferred returns.
Revenue growth was driven by increases across all major segments. The Tucows Domains segment increased $12.5 million (4.9%) to $267.1 million, primarily driven by passthrough pricing increases and strong expiry auction revenue performance. The Ting segment increased $8.5 million (14.2%) to $68.2 million, resulting from subscriber growth on the Fiber network across the United States and new construction in Laguna Woods Village, California. The Wavelo segment increased $7.8 million (19.5%) to $47.6 million, primarily driven by rate increases and subscriber growth. Mobile Services and eliminations decreased by $0.7 million (8.5%) to $7.4 million. A customer, EchoStar, within the Wavelo segment accounted for 11.7% of total net revenue.
Gross profit was $94.0 million on net revenues of $390.3 million, representing a gross margin of 24.1%. Total cost of revenues increased 6% to $296.3 million from $279.2 million in FY 2024. The increase was driven by Ting ($9.6 million increase), Tucows Domains ($5.9 million increase), and Mobile Services and eliminations ($5.5 million increase), partially offset by decreases in Network Expenses ($3.7 million decrease) and Wavelo ($0.2 million decrease). Operating expenses totaled $117.4 million, including sales and marketing ($48.4 million), technical operations and development ($17.8 million), general and administrative ($42.9 million), impairment of property and equipment ($10.7 million), and gain on disposition of property and equipment ($5.9 million).
Net cash used in operating activities was $5.8 million, an improvement from $19.7 million in the prior year. Net cash used in financing activities was $5.4 million, primarily from repayment of syndicated revolver. Net cash provided by investing activities was $2.2 million, primarily from proceeds on disposal of property and equipment. Total assets were $730.9 million, including current assets of $203.1 million, property and equipment net of $282.0 million, and goodwill of $130.4 million. Total liabilities were $895.1 million, including current liabilities of $330.4 million, syndicated revolver of $189.5 million, and notes payable of $291.6 million. Total equity was negative $164.2 million.
The company's Ting segment is undergoing a strategic review process to address ongoing liquidity requirements. Ting may not be able to meet its financial obligations over the twelve months following the issuance of this Annual Report without additional financing. The company expects sales and marketing, technical operations and development, and general and administrative expenses for the Tucows businesses excluding Ting to increase in absolute dollars in FY 2026, as the company adjusts programs to facilitate continued expansion of operations. The company plans to fund the cash requirements of Tucows businesses excluding Ting solely through operating income while making discretionary loan repayments to create greater operating flexibility.