Tucows Inc. Stock

Welcome to the Tucows second quarter 2026 management commentary. We have pre-recorded remarks regarding the quarter and outlook for the company. A Tucows-generated transcript of these remarks with relevant links is also available on the company's website.

We will begin with opening remarks and business segment commentary from David Woroch, President and CEO of Tucows and Tucows Domains; followed by Ivan Ivanov, Tucows' CFO and Ting CEO, who will discuss our financial results in detail, and we will finish with closing remarks from David Woroch.

In lieu of a live question-and-answer period following these remarks, shareholders, analysts, and prospective investors are invited to submit questions to Tucows management. Please submit questions via email to [email protected] until Thursday, August 13.

Management will either address your questions directly or provide a recorded audio response and transcript that will be posted to the Tucows website on Wednesday, August 19 at approximately 5:00 P.M. Eastern Time. We would also like to advise that the updated investor presentation and the Tucows quarterly KPI summary, which provides key metrics for all of our businesses for the last 6 quarters, as well as for full years 2024, 2025, and 2026 year-to-date, and also includes historical financial results, is available in the investors section of the website.

Now for management's prepared remarks. On Thursday, August 6, Tucows issued a news release reporting its financial results for the second quarter ended June 30, 2026. That news release and the company's financial statements are available on the company's website at tucows.com under the investors section.

Please note, the following discussion may include forward-looking statements which are subject to risks and uncertainties that could cause actual results to differ materially. These risk factors are described in detail in the company's documents filed with the SEC, specifically the most recent reports on the forms 10-K and 10-Q. The company urges you to read its security filings for a full description of the risk factors applicable to its business.

Now I would like to turn the call over to Tucows President and Chief Executive Officer, David Woroch. Go ahead, Dave.

Thank you, Monica. We've made measurable progress in several of the areas we have identified as priorities for 2026. On improving our balance sheet and streamlining our capital structure, we recently announced an amendment and extension of our syndicated credit facility and the retirement of the preferred equity in Ting. This removes a significant financial overhang for Ting and maintains our credit flexibility. We also reported our second consecutive quarter of positive operating cash flow of $1.9 million for Q2, taking us to $5.5 million year-to-date. Ting had a significant operating improvement this quarter, helping to grow consolidated revenue and gross profit year-over-year and sequentially. Adjusted EBITDA improved from the first quarter but was down slightly year-over-year, primarily from headwinds in our legacy mobile business.

Across the organization, we remain focused on disciplined execution, improving cash generation, moving toward a capital-light business, and making decisions that support durable value creation. Tucows Domains' second quarter performance continued to demonstrate the resilience of our mature, cash-generative core business, supported by a growing contribution from higher-margin services. Gross margin remained essentially flat year-over-year, while revenue and adjusted EBITDA declined modestly as domains under management decreased to 21.3 million. We expect domain volumes to be stable going forward as the insourcing by the previously discussed customer has mostly wound down. Sequentially, revenue, gross margin, and adjusted EBITDA all improved, supported by continued strength in expiry sales and an increased contribution from our registry services business. Gross margin across wholesale and retail remained consistent. Operating expenses increased modestly year-over-year, with the underlying operating results of the business remaining healthy.

The durability of Tucows Domains continues to be supported by its broad global reseller and retail customer base, product coverage, and significant operating scale. For Wavelo, second quarter revenue was down from Q2 2025, which was an especially strong quarter by comparison, with a growing Boost subscriber base and higher recognition of bundled professional services fees. Gross profit and adjusted EBITDA also declined year-over-year this quarter, driven primarily by incremental personnel costs to provide those bundled professional services relative to the prior year and continued investment in sales and marketing. As we have discussed in prior quarters, Wavelo is investing selectively in go-to-market capacity to support new customer growth. The sales pipeline remains active across telecommunication providers in multiple markets, and we are mindful about supporting a lean but results-focused sales organization.

As we've discussed before, the timing of new customer conversion can be uneven, particularly with large telecommunications providers. That is a normal feature of this market, and we remain focused on progressing qualified opportunities while maintaining rigorous operational discipline. Ting delivered the strongest operating improvement of the quarter with substantial year-over-year gains in revenue, gross profit, and adjusted EBITDA. Internet subscribers under management increased meaningfully from a year ago. The revenue and margin from the larger subscriber base and contracted customer activity in a partner market helped generate positive adjusted EBITDA, which was Ting's first quarter of positive adjusted EBITDA since we began reporting results by business segment. The improvement also reflects continued discipline in managing operating costs. We continue to review individual markets based on their economics, capital requirements, and ability to contribute to long-term value, and we will make adjustments as needed.

With respect to Ting's broader strategic process, this continues to be an important priority for management and the board. Our focus remains on operating the business responsibly, improving its underlying economics, and advancing the path that we believe can create the best opportunity for the business and the most value for shareholders. We expected this process to move more quickly, but there are interdependencies for an efficient transaction that we are solving for, as investors will have seen in last week's 8-K filing.

Now we'll hear from our CFO, Ivan Ivanov, who will discuss our financial results in detail.

Thank you, Dave, and thank you all for joining us today. I will cover consolidated results, then each of the segments, and we'll close with cash flow and balance sheet. Consolidated net revenue for the second quarter of '26 increased 2% to $100.6 million from $98.5 million in the second quarter of '25, and improved 4% sequentially from $96.7 million in Q1. The year-over-year increase was primarily driven by Ting subscriber growth and construction services revenue from our HOA in Laguna Woods Village. Q2 gross profit was $25.8 million, up 17% year-over-year from $22.1 million and up 7% sequentially from $24.1 million in Q1. The year-over-year increase was primarily driven by significant improvement at Ting and lower consolidated network expenses, while domains continued to deliver stable gross profit. These gains were partially offset by lower gross profit at Wavelo.

Operating expenses increased year-over-year. I want to be specific about where. General and admin expenses rose $3.4 million, or 36%, to $13.1 million, driven by increased professional fees across the segments, including higher audit and other services in conjunction with strategic initiatives. Sales and marketing rose $0.6 million to $12.6 million, and tech ops and development rose $0.5 million to $4.9 million. Separately, the prior year quarter total expenses included a $1.7 million gain on disposition of Ting inventory held for capital projects with no comparable gain this quarter, which is further headwind to the year-over-year comparison. We delivered $12.3 million in adjusted EBITDA this quarter, down 2% from $12.6 million in Q2 of last year, but up 5% sequentially from $11.7 million in Q1.

Strong year-over-year performance and sequential improvement at Ting was offset by lower Wavelo profitability and continued pressure from the legacy mobile business, the resolution of which is a focus in the third quarter. On a GAAP basis, net loss for the quarter was $20.5 million, or a loss of $1.84 per share, compared with a net loss of $15.6 million or $1.41 per share in Q2 of last year. The year-over-year change primarily reflects higher professional fees, costs related to strategic initiatives work, and the impact of the legacy mobile business, which were partially offset by the improvement at Ting. On a non-GAAP adjusted basis, net loss was $17.5 million or a loss of $1.57 per share, compared with an adjusted net loss of $16.3 million or a loss of $1.47 per share in Q2 '25. Let me now walk through the segments.

As a reminder, our presentation of segment gross profit reflects amounts net of network expenses, aligning external reporting with how we evaluate the businesses. We continue to provide additional segment gross margin and network expense detail in our quarterly KPI summary. Q2 revenue for Tucows Domains declined 4% year-over-year to $65 million from $67.6 million, primarily reflecting the tail end impact of a large reseller transitioning lower margin domains in-house, which has mostly worked its way through a full year renewal cycle. This contributed to domains under management declining to 21.3 million from 24 million a year ago. Despite the lower revenue and domains volumes, gross profit after network expenses was essentially stable at $19.3 million. Strong expiry sales, a full quarter of Domains' new registry customer, and resilient unit economics across the reseller and retail businesses helped offset the volume decline.

Wholesale revenue declined 4% to $55.1 million, an impact of the reseller insourcing. Within wholesale, domain services revenue was $48.8 million, compared with $51.6 million in the prior quarter. While value-added services revenue increased 9% to $6.3 million, supported by continued strong expiry sales. Retail revenue was $9.9 million, compared with $10.3 million last year. Domains adjusted EBITDA was $11.9 million, compared with $12.5 million in Q2 of last year. The decrease was primarily due to higher general and administrative expenses, as discussed above. The key takeaway is that the transition of lower margin domain volume had a greater impact on revenue than on gross profit, and that overall, our domain business continues to produce stable recurring margin dollars and remains our largest and most predictable adjusted EBITDA contributor. Turning to Wavelo, Q2 revenue was $11.8 million, down 7% from $12.7 million in Q2 of last year.

The decline reflects less bundled professional services revenue recognized in the current period. Q2 gross profit after network expense was $6.6 million, compared with $8.6 million last year, and adjusted EBITDA was $2.8 million, compared with $5.4 million in Q2 '25. General and admin expenses rose $0.5 million to $1.2 million, and sales and marketing rose $0.3 million to $3.1 million as we continue to invest in the go-to-market capacity. Turning to Ting, Q2 revenue was $21.6 million, up 32% from $16.4 million in Q2 of last year. Fiber Internet services revenue was $17.5 million, supported by subscriber growth, and Ting recognized $4.1 million of construction services revenue associated with the Laguna Woods Village HOA. Internet subscribers under management ended the quarter at approximately 60,500, an increase of approximately 8,500 year-over-year.

Ting added approximately 3,700 subscribers during Q2, largely from Laguna Woods Village, compared with approximately 400 additions in Q2 of last year. Ting's Q2 gross profit after network expenses was $2.5 million, compared with negative $3.2 million in the prior quarter. The improvement was driven by subscriber growth, construction revenue, and lower network expenses. The prior period also included a $2.7 million non-cash lease accounting adjustment recorded in cost of goods sold. Ting adjusted EBITDA improved to positive $1.5 million, compared with a loss of $3.7 million in Q2 of last year and a loss of $0.4 million in Q1. The improvement reflects the contribution from a larger subscriber base and construction activity, supported by an operating cost base that was broadly stable year-over-year. At the corporate level, Q2 revenue was $2.2 million, compared with $1.8 million in Q2 of last year.

Corporate gross profit was negative $2.5 million, compared with negative $2.6 million in the prior year period. Corporate adjusted EBITDA was negative $3.9 million, compared with a negative $1.7 million last year. The year-over-year reduction in profitability was driven by higher professional fees and bigger mobile losses. Mobile profitability continued to be affected by unfavorable per-subscriber economics, the changing mix of customer plans and usage, and specific to Q2, approximately $1.3 million of incremental long-distance charges associated with an isolated instance of unauthorized traffic. Under a carrier agreement, Tucows was responsible for those charges, which were fully recognized in the quarter. The activity was contained, and we have implemented additional monitoring and usage controls to prevent recurrence. On cash flow and balance sheet, consolidated cash flow from operating activities was positive $1.9 million in Q2 '26, compared with positive $6.6 million in Q2 of last year.

For the first 6 months of '26, cash flow from operating activities was positive $5.5 million, compared with negative $4.7 million in the first half of '25. Breaking out Q2 operating cash flows, Domains, Wavelo, and corporate generated approximately $6.2 million, while Ting used approximately $4.3 million, primarily in interest on its securitization facilities and CapEx. We ended the quarter with cash and cash equivalents, restricted cash, and restricted cash equivalents of $60.2 million, compared with $61.9 million at the end of Q1 and $68.6 million at the end of Q2 of last year. Corporate debt under the syndicated facility was approximately $190.4 million at the quarter end. We remained in compliance with our financial covenants with a leverage ratio of 3.72x and interest coverage of 3.75x, both onside. Ting also remained in compliance with its securitization requirements.

In summary, Tucows delivered year-over-year growth in revenue and gross profit, sequential improvement in adjusted EBITDA, and a second consecutive quarter of operating positive cash flow. Domains continued to provide stable gross profit despite lower reported revenue. Ting delivered significant improvement across revenue, gross profit, and adjusted EBITDA, supported by subscriber growth and construction activity. Wavelo continued to invest selectively in future growth while managing through subscriber moderation. These gains were partially offset by higher professional fees and continued pressure from the legacy mobile business, which we're actively working to resolve in the next quarter.

With that, thank you, and I will pass it back to Dave for his closing remarks.

Thanks, Ivan. Q2 showed stable operating results and improvement in several key areas. Revenue and gross profit increased both year-over-year and sequentially. Adjusted EBITDA improved from the first quarter, and we generated positive operating cash flow for the second consecutive quarter. Ting delivered the most significant operating improvement. Subscriber growth, construction activity, and continued cost discipline drove substantial gains in revenue, gross profit, and adjusted EBITDA. For the first time since we began reporting the businesses as separate segments, Ting generated positive quarterly adjusted EBITDA. Domains continued to demonstrate the resilience of a cash-generative business and a scaled, highly efficient operation. Gross profit remained stable and performance improved sequentially, with strong expiry sales and an increased contribution from registry services, which is helping to reinforce the value of expanding higher-margin and complementary products around the core business. Wavelo's results reflected subscriber moderation and continued go-to-market investment.

We remain confident in the product and the market opportunity. The priority is converting a qualified pipeline into recurring revenue while maintaining the lean and disciplined operating model that has defined Wavelo from the start. However, further investment is contingent on demonstrated execution and measurable progress in pipeline conversion. On the corporate segment and its related guidance, I want to provide important context. Corporate results continue to reflect higher professional fees and challenging economics of the remaining mobile business. We have deferred making a commitment to a new mobile contract while the Ting strategic process has been underway in order to preserve maximum flexibility across possible outcomes. We expect the professional fees and ongoing mobile obligations to remain headwinds to the corporate results. However, we are now actively seeking a resolution to the mobile economics.

I said at the beginning of the year that 2026 would be a year of transition. We are resetting how we operate, how we allocate capital, and how we manage the portfolio. The transactions we completed last week are the first tangible steps in that larger transformation. We retired all outstanding Series A preferred units in Ting Fiber, removing an obligation with a value of approximately $150 million, including cumulative dividends. Their retirement removes a compounding obligation with defined consideration. We amended our syndicated credit facility, extending the maturity of all but one lender commitments from September 2027 to July 2029, with key pricing and financial covenants substantially unchanged. We also acquired the Ting-owned data center, used primarily by Domains and Wavelo, protecting critical infrastructure and placing the asset outside the potential outcomes of the Ting process.

These actions remove a significant financial overhang, extend our financing, and preserve strategic paths for the business. That gives management and the board greater flexibility to make decisions based on long-term value rather than near-term structural constraints. These are meaningful actions, they are not the completion of the work. Our objective is to build a simpler, more focused, and more capital-efficient Tucows. A portfolio of businesses with strong recurring revenue and scalable economics, lean operating models with clear accountability for margins, cash generation, and returns on investment capital, and a disciplined approach to capital allocation that balances investment, deleveraging, and long-term value creation. The next phase is execution. We need to convert operating performance into sustainable free cash flow, continue simplifying the portfolio, improve the economics of the businesses we retain and remain disciplined about where we invest.

That is how we intend to deliver value to shareholders, not through a single transaction, but through a series of deliberate actions that improve the quality, flexibility, and cash-generating capacity of Tucows over time. Simpler, more focused, and with more financial rigor. Thank you for your continued support, and we look forward to updating you on our progress.

If you have any questions about the quarter or today's commentary, please send them to [email protected] by August 13, and look for our recorded Q&A audio response and transcript to this call to be posted to the Tucows website on Wednesday, August 19 at approximately 5:00 P.M. Eastern Time.

Welcome to the Tucows First Quarter 2026 Management Commentary. We have prerecorded prepared remarks regarding the quarter and outlook for the company. A Tucows-generated transcript of these remarks with relevant links is also available on the company's website. We will begin with opening remarks and business segment commentary from David Woroch, President and CEO of Tucows and Tucows Domains; followed by Ivan Ivanov, Tucows CFO, who will discuss our financial results in detail, and we will finish with closing remarks from David Woroch.

In lieu of a live question-and-answer period following these remarks, shareholders, analysts and prospective investors are invited to submit questions to Tucows management. Please submit questions via e-mail to [email protected] until Thursday, May 14. Management will either address your questions directly or provide a recorded audio response and transcript that will be posted to the Tucows website on Wednesday, May 20, at approximately 5:00 p.m. Eastern Time.

We would also like to advise that the updated investor presentation and the Tucows quarterly KPI summary, which provides key metrics for all of our businesses for the last five quarters as well as for full years 2024, 2025 and 2026 year-to-date and also includes historical financial results is available in the Investors section of the website.

Now for management's prepared remarks. On Thursday, May 7, Tucows issued a news release reporting its financial results for the first quarter ended March 31, 2026. That news release and the company's financial statements are available on the company's website at tucows.com under the Investors section. Please note the following discussion may include forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially. These risk factors are described in detail in the company's documents filed with the SEC, specifically the most recent reports on the Forms 10-K and 10-Q. The company urges you to read its security filings for a full description of the risk factors applicable to its business.

Now I would like to turn the call over to Tucows' President and Chief Executive Officer, David Woroch. Go ahead, Dave.

Thank you, Monica. Tucows has always been a company built on durable recurring revenue, a long-term mindset and a practical approach to innovation, and that continued to show through in the quarter. Across the business, our teams remain focused on operating well and advancing the work in front of us. Overall, in Q1, we saw continued progress against the priorities in each of our business segments. I'll begin with some high-level comments on the quarter and developments across Domains, Wavelo and Ting, and then Ivan will take you through the segment and consolidated financial results in more detail.

With Tucows Domains, gross profit and adjusted EBITDA both increased year-over-year, reflecting the consistency of our business model, while revenue was modestly below the prior year period. Our reseller channel and customer base continues to support healthy margins and Q1 benefited from a favorable mix of higher-margin product sales, customer composition and prudent expense management. Domain Services remained the primary driver of profitability with a healthy, albeit lower contribution from value-added services. This lower contribution is against a particularly strong prior year comparison with more modest expiry stream sales in the current quarter.

Retail continued to perform well, and we are pleased to share that we completed the migration of the Radix Registry portfolio in mid-March with the full quarterly benefit expected in our Wholesale segment in Q2. More broadly, we remain focused on disciplined execution across the Domains business, including scaling complementary growth areas like registry, while continuing to manage the core business for profitability and cash generation.

For Wavelo, Q1 was a solid start to the year. Revenue was modestly ahead of the prior year period and subscriber levels remain broadly stable year-over-year. We continue to benefit from the operating foundation we built in 2025, including a disciplined approach to profitability, a more mature go-to-market program and a product and pipeline strategy that we believe positions us well for future bookings growth. That said, the year-over-year comparison reflects the fact that the prior year period benefited from both a rate card increase and customer subscriber growth, while subscriber levels have since moderated.

Consistent with what we said last quarter, Q1 also reflected continued investment in sales and marketing as we work to strengthen pipeline health and support future growth. Those investments weighed on gross profit and adjusted EBITDA year-over-year. Even so, we remain confident in the strategy. We are investing thoughtfully and selectively in go-to-market capacity while maintaining a lean operating model, and we believe that balance continues to position Wavelo well for long-term profitable growth.

Ting's Q1 results marked important progress with subscriber growth and revenue both accelerating. Adjusted EBITDA improved by 50% versus Q1 of last year, reflecting the benefits of a growing subscriber base, continued capital discipline and contributions from a senior living community contract. At the same time, Ting's partner footprint continues to expand, supporting a more capital-efficient path to growth. With respect to Ting's strategic process, our priorities remain unchanged. We continue to actively progress work to reach an outcome that best supports long-term value creation. While we are not in a position to provide a substantive update today, this remains a top priority for management and the Board.

Now we'll hear from our CFO, Ivan Ivanov, who will discuss our financial results in detail.

Thanks, Dave, and thank you all for joining us today. Consolidated net revenue for the first quarter of '26 increased 2% to $96.7 million from $94.6 million for the first quarter of '25, driven by strong revenue gains from Ting Fiber. I'll walk through each business following the consolidated results, but to break out the Q1 revenue contributions, Domains, Wavelo and Corporate combined drove $77.2 million and Ting contributed $19.4 million. Q1 gross profit was $24.1 million, up 2.5% year-over-year, supported by margin expansion from Domains and Ting, moderated network costs and partially offset by headwinds from the legacy mobile business, which are recognized in our Corporate segment.

Breaking out Q1 gross profit by business, $22.4 million came in from Domains, Wavelo and Corporate and $1.7 million from Ting. Operating expenses in Q1 were $28.4 million, up 11% year-over-year, primarily from higher sales and marketing spend in Ting and Wavelo. We delivered $11.7 million in adjusted EBITDA this quarter, down 15% year-over-year from $13.7 million, primarily due to gross margin decreases in our Corporate segment as well as investment in Wavelo's go-to-market efforts. Of Q1 adjusted EBITDA, $12.1 million came from Domains, Wavelo and Corporate combined and a negative $0.4 million for Ting.

On a GAAP basis, net loss for the quarter was $18.1 million or $1.63 loss per share, an increase from a net loss of $15.1 million or $1.37 per share for Q1 of last year. On a non-GAAP adjusted basis, net loss for Q1 '26 was $16.9 million or a loss of $1.51 per share compared to an adjusted net loss of $14.9 million or $1.35 loss per share in Q1 '25, with the year-over-year changes primarily attributable to professional fees and legacy mobile obligations.

Let me now walk through the segments. As a reminder, beginning in Q3 '25, we revised our presentation of gross profit in our press release to reflect amounts net of network expenses, aligning external reporting with how we manage the business. However, we continue to provide investors with gross margin and network expenses broken out by business in our KPI summary, and I will address factors in each business impacting gross margin.

Let me first start with Tucows Domains. Q1 revenue for Tucows Domains declined 2% year-over-year to $64.1 million from $65.3 million, while gross profit grew by 2% in Q1 to $18.6 million from $18.3 million in Q1 '25 after network expenses. Gross profit performance was supported by a favorable mix of high-margin product sales. Domains adjusted EBITDA was $11.6 million for the quarter, up modestly from the prior year on the back of margin expansion and prudent expense management.

Within Domains, Q1 '26 wholesale revenue declined 3% to $54.3 million from $55.9 million in Q1 '25, reflecting the tailwind of the impact from a large customer moving low-margin domains in-house. At the same time, wholesale gross margin, net of network expenses rose 1% in Q1 '26 over the last year due to a favorable mix of higher-margin product sales. Within the wholesale channel, Domain Services gross margin generated $10 million in Q1 '26 for a year-over-year gain of 4%. Value-added services was down 5% year-over-year to $5.1 million in Q1 '26 from moderated expiry sales. In Q1 '26, retail revenue increased 5% year-over-year to $9.8 million and retail gross margin increased 8% to $5.6 million in Q1 of this year.

Turning to Wavelo. Q1 revenue was $11.6 million with a slight increase year-over-year. Q1 gross profit was $7 million, down from $7.8 million in Q1 '25, and Wavelo's adjusted EBITDA was $3.6 million, down year-over-year from $4.4 million. Both the gross profit and adjusted EBITDA year-over-year reductions were primarily due to continued investment in Wavelo sales and marketing, which began in Q2 of last year. It is also worth noting the prior year comparison -- in 2025, Wavelo benefited from both a rate card increase and subscriber growth. The rate contribution has now leveled off, so we're comparing against a stronger base.

Turning to Ting Internet. Q1 '26 revenue was $19.4 million, up 19% year-over-year, driven primarily by construction revenue associated with Ting's contract with a senior living community as well as continued subscriber growth. As a reminder, construction services revenue is generated from the design, construction and installation of fiber optic network infrastructure under a specific customer agreement with revenue recognized over time as control of the infrastructure transfers to the customer.

For services requiring installation, revenue is recognized once the customer service is activated. Ting's Q1 gross profit was $1.7 million, up from a negligible amount in Q1 '25. Adjusted EBITDA improved to a loss of $0.4 million versus a loss of $0.8 million in the prior year period, continuing the momentum in Ting's path towards profitability.

At the corporate level, Q1 '26 revenue was flat year-over-year at $1.6 million. Q1 gross profit was negative $3.2 million compared to a negative $2.6 million in Q1 of last year. Corporate adjusted EBITDA for Q1 was negative $3.1 million from a negative $1.5 million in Q1 '25. The reduced profitability in the quarter was primarily impacted by mobile contract obligations and lower revenue on the legacy mobile business. As a reminder, profitability from our remaining legacy mobile arrangements continues to be challenged on both the revenue and cost side.

Under the EchoStar agreement, our long-term payment stream depends on the margin generated by the subscriber base transferred in 2020, so returns could be pressured if subscriber churn is higher than expected or if pricing and cost dynamics reduce underlying profitability. Separately, while penalties under our remaining MVNO agreement ended with the completion of the contract term in January of this year, we are now on a month-to-month contract basis with an option to renew.

Let me now move to cash flow and balance sheet. Consolidated cash flow from operating activities for Q1 '26 was $3.5 million compared with a negative $11.3 million in Q1 of last year, making a return to positive operating cash flow trajectory established in Q2 and Q3 of last year. If we break out cash flow from operations for Q1 '26, Domains, Wavelo and Corporate combined generated $7.2 million, and Ting generated a $3.7 million outflow mainly from the ABS interest paid.

On capital expenditures, we invested $3.6 million into Ting in Q1 '26 and $1.9 million in Domains and Wavelo combined. We ended Q1 with cash and restricted cash of $34.6 million for Ting and cash of $27.4 million, excluding Ting. We continue to prioritize discipline, capital allocation and maintaining liquidity across the organization. Corporate net debt, excluding Ting, was $162.2 million as of quarter end, net of deferred financing costs. And importantly, we remained in compliance with our covenants under the TCX syndicated facility. For Q1 '26, the leverage ratio was 3.29x and interest coverage was 4.12x, both on site. Ting's net debt stands at $417.8 million and consists of both ABS notes and preferred shares.

In summary, Tucows delivered a solid first quarter in 2026 with consolidated net revenue growing, margin expansion in both Domains and Ting and a return to positive operating cash flow. Domains continues to be the reliable cash-generating engine of the business, while Ting's trajectory is increasingly improving with adjusted EBITDA, reflecting the unit economics of a maturing fiber business moving steadily towards breakeven.

Wavelo is investing deliberately in go-to-market to position itself for the next phase of growth, and Tucows ended the quarter with improved cash position year-over-year while remaining in full covenant compliance. And we're working to address the headwinds from legacy mobile obligations as well as the ongoing strategic initiative work for Ting.

With that, thank you, and I'll pass it back to Dave for his closing remarks.

Thanks, Ivan. Let me close with this. Q1 was a solid start to 2026. We saw continued progress across the business. Revenue and gross profit grew, and we returned to positive operating cash flow, a meaningful swing from the same quarter last year and continued execution against the priorities we laid out at the start of the year. Domains continues to demonstrate what a well-run, durable platform business looks like disciplined expenses, healthy margins and consistent cash generation. The Radix registry migration is now complete, and we expect the full benefit to show in Q2. Ting's trajectory continues to improve. Subscriber growth accelerated, gross profit turned meaningfully positive and adjusted EBITDA losses were cut in half year-over-year. That reflects both the underlying unit economics of a maturing fiber network and the capital efficiency measures we've been deliberate about executing.

Wavelo is in an investment phase, and we're being intentional about it. The spend is in go-to-market. It's in support of future bookings, and we remain confident in the strategy. The year-over-year comparison will continue to reflect that investment, and you should expect that to normalize as we convert pipeline to growth. The Ting strategic process remains a top priority, and we understand investors are looking for greater clarity. While we are not in a position to say more today, I want to be clear. We are actively working toward an outcome that creates long-term value for shareholders. We are hopeful for a good outcome, and we'll share a more meaningful update as soon as it is appropriate to do so.

The area that weighed most on Q1, and I want to be direct about this, was the corporate segment, specifically mobile obligations and professional fees. Those headwinds were real, but represent costs that are not expected to recur indefinitely and that we're working to eliminate. What I can tell you is that the financial position we're in, positive operating cash flow, covenant compliance, improved year-over-year liquidity gives us the ability to navigate this period from a position of stability.

My priorities for the rest of 2026 have not changed, generate free cash flow, improve capital flexibility and continue to hold ourselves accountable to the principles I outlined last quarter: Simpler, more focused, more disciplined. That is the company we are building, and Q1 is a step in that direction.

Thank you all for your continued support, and we look forward to updating you on our progress.

If you have any questions about the quarter or today's commentary, please send them to [email protected] by May 14 and look for our recorded Q&A audio response and transcript to this call to be posted to the Tucows website on Wednesday, May 20, at approximately 5:00 p.m. Eastern Time.

Welcome to Tucows question-and-answer dialogue for Q1 2026. David Woroch, President and Chief Executive Officer of Tucows and Tucows Domains will be responding to your questions. For your convenience, this audio file is also available as a transcript in the Investors section of our website, along with our Q1 2026 financial results and updated reports. I would also like to remind investors that if you would like to receive our quarterly results and Q&A via e-mail, please make the request to [email protected].

Please note that the following discussion may include forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially. These risk factors are described in detail in the company's documents filed with the SEC, specifically the most recent reports on the Forms 10-Q and 10-K. The company urges you to read its security filings for a full description of the risk factors applicable to its business.

Today's commentary includes responses to questions submitted to us following the prerecorded management remarks regarding the quarter and outlook for the company. We are grouping similar questions into categories that we feel are addressing common queries. If your questions reach a certain threshold or volume, we may ask to schedule a call instead to ensure we can address the full scope of your questions. And if you feel that the recorded questions and/or any direct e-mail you may receive do not address the full body of your questions, please let us know. Go ahead, Dave.

Thank you, Monica, and welcome to our Q&A for our first quarter financial results. Our first question relates to our increased investment in Wavelo discussed in the Q1 management remarks.

We are looking at Wavelo through the same lens we are applying across all Tucows businesses, strategic fit, capital requirements, growth potential and contribution to shareholder value. As I talked about in Q4, our goal is to transition Tucows into a more focused capital-light company with a lean operating model built around businesses that have recurring revenue, strong retention, platform economics, business-critical workflows and clear opportunities to benefit from shared infrastructure and operational discipline. Wavelo has many of those attributes, which is why we make targeted investments, particularly in product and go-to-market, but those investments are not open-ended. They are being evaluated against clear expectation for bookings conversion and long-term value creation, and how those are both best achieved. More broadly, every business in the Tucows portfolio is being assessed for strategic fit, and how it can create the most value. Ting is in a process because we believe its best path is with an operator that has the capital and operating scale to bring it to profitability. The remaining mobile business is only strategic as part of a converged offering with Ting Internet, and we are working to solve for that in parallel with the Ting process. Tucows' Domains path to growth involves continuing to gain scale and expand margin where the primary gains will come from expanding the channel and new products. Accelerating that growth is contingent on improving liquidity, another key focus for our management team. Another investor asks where we are in the renewal process for our syndicated debt, which expires in September 2027. We are in active discussions on the Tucows renewal. I will remind investors that our syndicated debt peaked at $238.9 million in Q4 2022, and it's now at $189.6 million, plus Tucows $27.4 million in cash.

Thank you for listening to our Q&A. And a reminder that if you feel that the recorded answers or any direct e-mail you receive do not address your question, please follow up with us at [email protected].

Welcome to the Tucows First Quarter 2026 Management Commentary. We have prerecorded prepared remarks regarding the quarter and outlook for the company. A Tucows-generated transcript of these remarks with relevant links is also available on the company's website.

We will begin with opening remarks and business segment commentary from David Woroch, President and CEO of Tucows and Tucows Domains, followed by Ivan Ivanov, Tucows CFO, who will discuss our financial results in detail, and we will finish with closing remarks from David Woroch.

In lieu of a live question-and-answer period following these remarks, shareholders, analysts and prospective investors are invited to submit questions to Tucows management. Please submit questions via e-mail to [email protected] until Thursday, May 14. Management will either address your questions directly or provide a recorded audio response and transcript that will be posted to the Tucows' website on Wednesday, May 20, at approximately 5:00 p.m. Eastern Time.

We would also like to advise that the updated investor presentation and the Tucows quarterly KPI summary, which provides key metrics for all of our businesses for the last 5 quarters as well as for full years 2024, 2025 and 2026 year-to-date and also includes historical financial results, is available in the Investors section of the website.

Now for management's prepared remarks. On Thursday, May 7, Tucows issued a news release reporting its financial results for the first quarter ended March 31, 2026. That news release and the company's financial statements are available on the company's website at tucows.com under the Investors section. Please note the following discussion may include forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially. These risk factors are described in detail in the company's documents filed with the SEC, specifically the most recent reports on the Forms 10-K and 10-Q. The company urges you to read its security filings for a full description of the risk factors applicable to its business.

Now I would like to turn the call over to Tucows President and Chief Executive Officer, David Woroch.

Go ahead, Dave.

Thank you, Monica. Tucows has always been a company built on durable, recurring revenue, a long-term mindset, and a practical approach to innovation, and that continued to show through in the quarter. Across the business, our teams remained focused on operating well and advancing the work in front of us.

Overall, in Q1, we saw continued progress against the priorities in each of our business segments. I'll begin with some high-level comments on the quarter and developments across Domains, Wavelo, and Ting, and then Ivan will take you through the segment and consolidated financial results in more detail.

With Tucows Domains, gross profit and Adjusted EBITDA both increased year over year, reflecting the consistency of our business model, while revenue was modestly below the prior-year period. Our reseller channel and customer base continues to support healthy margins, and Q1 benefited from a favorable mix of higher-margin product sales, customer composition and prudent expense management.

Domain Services remained the primary driver of profitability, with a healthy, albeit lower, contribution from Value Added Services. This lower contribution is against a particularly strong prior-year comparison, with more modest expiry stream sales in the current quarter.

Retail continued to perform well, and we are pleased to share that we completed the migration of the Radix registry portfolio in mid-March, with the full quarterly benefit expected in our Wholesale segment in Q2. More broadly, we remain focused on disciplined execution across the Domains business, including scaling complementary growth areas like registry, while continuing to manage the core business for profitability and cash generation.

For Wavelo, Q1 was a solid start to the year. Revenue was modestly ahead of the prior-year period, and subscriber levels remained broadly stable year over year. We continue to benefit from the operating foundation we built in 2025, including a disciplined approach to profitability, a more mature go-to-market program, and a product and pipeline strategy that we believe positions us well for future bookings growth. That said, the year-over-year comparison reflects the fact that the prior-year period benefited from both a rate card increase and customer subscriber growth, while subscriber levels have since moderated.

Consistent with what we said last quarter, Q1 also reflected continued investment in sales and marketing as we work to strengthen pipeline health and support future growth. Those investments weighed on gross profit and adjusted EBITDA year over year. Even so, we remain confident in the strategy. We are investing thoughtfully and selectively in go-to-market capacity while maintaining a lean operating model, and we believe that balance continues to position Wavelo well for long-term, profitable growth.

Ting’s Q1 results marked important progress with subscriber growth and revenue both accelerating. Adjusted EBITDA improved by 50% versus Q1 of last year, reflecting the benefits of a growing subscriber base, continued capital discipline, and contributions from a senior living community contract. At the same time, Ting’s partner footprint continues to expand, supporting a more capital-efficient path to growth.

With respect to Ting’s strategic process, our priorities remain unchanged. We continue to actively progress work to reach an outcome that best supports long-term value creation. While we are not in a position to provide a substantive update today, this remains a top priority for management and the Board.

Now we'll hear from our CFO, Ivan Ivanov, who will discuss our financial results in detail.

Thanks, Dave, and thank you all for joining us today. Consolidated net revenue for the first quarter of '26 increased 2% to $96.7 million from $94.6 million for the first quarter of '25, driven by strong revenue gains from Ting Fiber. I'll walk through each business following the consolidated results, but to break out the Q1 revenue contributions; Domains, Wavelo and Corporate combined drove $77.2 million and Ting contributed $19.4 million. Q1 gross profit was $24.1 million, up 2.5% year over year, supported by margin expansion from Domains and Ting, moderated network costs, and partially offset by headwinds from the legacy mobile business, which are recognized in our Corporate segment.

Breaking out Q1 gross profit by business, $22.4 million came in from Domains, Wavelo and Corporate and $1.7 million from Ting. Operating expenses in Q1 were $28.4 million, up 11% year over year, primarily from higher sales and marketing spend in Ting and Wavelo.

We delivered $11.7 million in Adjusted EBITDA this quarter, down 15% year over year from $13.7 million, primarily due to gross margin decreases in our Corporate segment, as well as investment in Wavelo’s go-to-market efforts. Of Q1 Adjusted EBITDA, $12.1 million came from Domains, Wavelo and Corporate combined, and a negative $0.4 million for Ting. On a GAAP basis, net loss for the quarter was $18.1 million, or $1.63 loss per share, an increase from a net loss of $15.1 million, or $1.37 per share for Q1 of last year.

On a non-GAAP adjusted basis, net loss for Q1 '26 was $16.9 million or a loss of $1.51 per share compared to an adjusted net loss of $14.9 million or $1.35 loss per share in Q1 '25, with the year-over-year changes primarily attributable to professional fees and legacy mobile obligations.

Let me now walk through the segments. As a reminder, beginning in Q3 '25, we revised our presentation of gross profit in our press release to reflect amounts net of network expenses, aligning external reporting with how we manage the business. However, we continue to provide investors with gross margin and network expenses broken out by business in our KPI Summary, and I will address factors in each business impacting gross margin.

Let me first start with Tucows Domains. Q1 revenue for Tucows Domains declined 2% year over year to $64.1 million from $65.3 million, while gross profit grew by 2% in Q1 to $18.6 million from $18.3 million in Q1 '25 after network expenses. Gross profit performance was supported by a favorable mix of high-margin product sales. Domains adjusted EBITDA was $11.6 million for the quarter, up modestly from the prior year on the back of margin expansion and prudent expense management.

Within Domains, Q1 '26 Wholesale revenue declined 3% to $54.3 million from $55.9 million in Q1 '25, reflecting the tail end of the impact from a large customer moving low-margin domains in-house. At the same time, Wholesale gross margin, net of network expenses, rose 1% in Q1 '26 over the last year due to a favorable mix of higher-margin product sales.

Within the Wholesale channel, Domain Services' gross margin generated $10 million in Q1 '26, for a year-over-year gain of 4%. Value Added Services was down 5% year over year, to $5.1 million in Q1 '26, from moderated expiry sales. In Q1 '26, Retail revenue increased 5% year over year to $9.8 million and Retail gross margin increased 8% to $5.6 million in Q1 of this year.

Turning to Wavelo, Q1 revenue was $11.6 million, with a slight increase year over year. Q1 gross profit was $7 million, down from $7.8 million in Q1 '25, and Wavelo's adjusted EBITDA was $3.6 million, down year over year from $4.4 million. Both the gross profit and adjusted EBITDA year-over-year reductions were primarily due to continued investment in Wavelo's sales and marketing, which began in Q2 of last year.

It is also worth noting the prior-year comparison: in 2025, Wavelo benefited from both a rate card increase and subscriber growth. The rate contribution has now leveled off, so we're comparing against a stronger base.

Turning to Ting Internet, Q1 '26 revenue was $19.4 million, up 19% year over year, driven primarily by construction revenue associated with Ting's contract with a senior living community, as well as continued subscriber growth. As a reminder, construction services revenue is generated from the design, construction, and installation of fiber-optic network infrastructure under a specific customer agreement, with revenue recognized over time as control of the infrastructure transfers to the customer.

For services requiring installation, revenue is recognized once the customer's service is activated. Ting's Q1 gross profit was $1.7 million, up from a negligible amount in Q1 '25. Adjusted EBITDA improved to a loss of $0.4 million, versus a loss of $0.8 million in the prior-year period, continuing the momentum in Ting's path toward profitability. At the Corporate level, Q1 '26 revenue was flat year over year at $1.6 million. Q1 gross profit was negative $3.2 million, compared to negative $2.6 million in Q1 of last year.

Corporate adjusted EBITDA for Q1 was negative $3.1 million, from a negative $1.5 million in Q1 '25. The reduced profitability in the quarter was primarily impacted by mobile contract obligations and lower revenue on the legacy mobile business. As a reminder, profitability from our remaining legacy mobile arrangements continues to be challenged on both the revenue and cost side.

Under the EchoStar agreement, our long-term payment stream depends on the margin generated by the subscriber base transferred in 2020, so returns could be pressured if subscriber churn is higher than expected or if pricing and cost dynamics reduce underlying profitability.

Separately, while penalties under our remaining MVNO agreement ended with the completion of the contract term in January of this year, we are now on a month-to-month contract basis with an option to renew.

Let me now move to cash flow and balance sheet. Consolidated cash flow from operating activities for Q1 '26 was $3.5 million, compared with a negative $11.3 million in Q1 of last year, making a return to the positive operating cash flow trajectory established in Q2 and Q3 of last year. If we break out cash flow from operations for Q1 '26, Domains, Wavelo, and Corporate combined generated $7.2 million and Ting generated a $3.7 million outflow, mainly from the ABS interest paid.

On capital expenditures, we invested $3.6 million into Ting in Q1 '26 and $1.9 million in Domains and Wavelo combined. We ended Q1 with cash and restricted cash of $34.6 million for Ting and cash of $27.4 million excluding Ting. We continue to prioritize disciplined capital allocation and maintaining liquidity across the organization.

Corporate net debt, excluding Ting, was $162.2 million as of quarter end, net of deferred financing costs, and importantly, we remained in compliance with our covenants under the TCX syndicated facility. For Q1 '26, the leverage ratio was 3.29x and interest coverage was 4.12x, both onside.

Ting's net debt stands at $417.8 million and consists of both ABS notes and preferred shares. In summary, Tucows delivered a solid first quarter in 2026, with consolidated net revenue growing, margin expansion in both Domains and Ting, and a return to positive operating cash flow. Domains continues to be the reliable cash-generating engine of the business, while Ting's trajectory is increasingly improving, with adjusted EBITDA reflecting the unit economics of a maturing fiber business moving steadily toward breakeven.

Wavelo is investing deliberately in go-to-market to position itself for the next phase of growth, and Tucows ended the quarter with an improved cash position year over year, while remaining in full covenant compliance. And we're working to address the headwinds from legacy mobile obligations as well as the ongoing strategic initiative work for Ting.

With that, thank you and I will pass it back to Dave for his closing remarks.

Thanks, Ivan. Let me close with this. Q1 was a solid start to 2026. We saw continued progress across the business: revenue and gross profit grew, and we returned to positive operating cash flow, a meaningful swing from the same quarter last year, and continued execution against the priorities we laid out at the start of the year.

Domains continues to demonstrate what a well-run, durable platform business looks like: disciplined expenses, healthy margins, and consistent cash generation. The Radix registry migration is now complete, and we expect the full benefit to show in Q2. Ting's trajectory continues to improve. Subscriber growth accelerated; gross profit turned meaningfully positive, and adjusted EBITDA losses were cut in half year over year. That reflects both the underlying unit economics of a maturing fiber network and the capital efficiency measures we've been deliberate about executing.

Wavelo is in an investment phase, and we're being intentional about it. The spend is in go-to-market; it's in support of future bookings and we remain confident in the strategy. The year-over-year comparison will continue to reflect that investment, and you should expect that to normalize as we convert pipeline to growth. The Ting strategic process remains a top priority, and we understand investors are looking for greater clarity. While we are not in a position to say more today, I want to be clear: we are actively working toward an outcome that creates long-term value for shareholders. We are hopeful for a good outcome and will share a more meaningful update as soon as it is appropriate to do so.

The area that weighed most on Q1, and I want to be direct about this, was the Corporate segment, specifically mobile obligations and professional fees. Those headwinds were real, but represent costs that are not expected to recur indefinitely and that we're working to eliminate.

What I can tell you is that the financial position we are in: positive operating cash flow, covenant compliance, improved year-over-year liquidity, gives us the ability to navigate this period from a position of stability. My priorities for the rest of 2026 have not changed: generate free cash flow, improve capital flexibility, and continue to hold ourselves accountable to the principles I outlined last quarter: simpler, more focused, more disciplined, that is the company we are building, and Q1 is a step in that direction. Thank you all for your continued support, and we look forward to updating you on our progress.

If you have any questions about the quarter or today's commentary, please send them to [email protected] by May 14, and look for our recorded Q&A audio response and transcript to this call to be posted to the Tucows' website on Wednesday, May 20, at approximately 5 p.m. Eastern time.

Welcome to Tucows' question-and-answer dialogue for Q4 2025. David Woroch, President and Chief Executive Officer of Tucows and Tucows Domains, will be responding to your questions.

For your convenience, this audio file is also available as a transcript in the Investors section of our website, along with our Q4 2025 financial results and updated reports. I would also like to remind investors that if you would like to receive our quarterly results and Q&A via e-mail, please make the request to [email protected].

Please note that the following discussion may include forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially. These risk factors are described in detail in the company's documents filed with the SEC, specifically the most recent reports on the Forms 10-Q and 10-K. The company urges you to read its security filings for a full description of the risk factors applicable to its business.

Today's commentary includes responses to questions submitted to us following the prerecorded management remarks regarding the quarter and outlook for the company. We are grouping similar questions into categories that we feel are addressing common queries. If your questions reach a certain threshold or volume, we may ask to schedule a call instead to ensure we can address the full scope of your questions. And if you feel that the recorded questions and/or any direct e-mail you may receive do not address the full body of your questions, please let us know.

Go ahead, Dave.

Thank you, Monica, and welcome to our Q&A for our fourth quarter financial results. This quarter, we received 3 questions from investors, which we'll address here.

We recognize that many of you are taking a wait-and-see approach regarding the Ting process, and we understand that perspective. The first question is, is there any update you can provide on the sale of Ting assets? Has the process been delayed as the price of such assets begins to fall with the broad market sell-off?

The Ting process has not been delayed. It is ongoing, and we do not believe that external volatility has a direct impact on the time line. We continue to work closely with our financial advisers to determine the optimal path forward. Based on our experience with acquisitions and domains, transactions of this nature require a thorough diligence and coordination among multiple stakeholders, and time lines are driven by the specifics of the asset and the availability of information. We remain deeply engaged in the process and focused on achieving the best outcome.

The next question is, why is the adjusted EBITDA margin on Wavelo expected to be down year-over-year as per 2026 guidance?

As noted in the management remarks with our Q4 release, there are Ting Fiber and mobile customers on the Wavelo platform. Based on different potential outcomes for the Ting process, this could result in a reduction of fees for Wavelo. There is a range here, and we are conservatively forecasting that possibility in Wavelo's adjusted EBITDA guidance. Additionally, we layered in some investments midway through 2025 that are now fully annualized costs in 2026, and we're continuing to invest to grow Wavelo's top line while still remaining below the cost structure of our competitors.

And lastly, we had a question on the announced stock buyback program stating, "I know you always renew this. What is the company's access to liquidity? I also assume that the window is closed until the conclusion of the fiber divestiture."

As a reminder to investors, the annual buyback authorization provides flexibility, not a commitment to buy back stock, and any deployment will be evaluated against return thresholds and liquidity considerations. Liquidity and balance sheet strength remain priorities. As discussed in recent quarters, continued deleveraging of the Tucows' syndicated debt and completion of the Ting divestiture process are central to further strengthening our liquidity profile. The syndicated debt paydown is ongoing, and each dollar repaid increases available borrowing capacity up to the committed limit. A successful Ting divestiture would further enhance liquidity by improving our consolidated free cash flow and adjusted EBITDA profile, supporting greater borrowing capacity and overall financial flexibility.

Capital allocation remains conservative and deliberate. We are developing a formal framework to guide the appropriate balance between continued deleveraging, reinvestment in the business, potential acquisition opportunities and share repurchases. Currently, our liquidity, excluding Ting, consists of approximately $20.9 million of unrestricted cash. Liquidity remains sound, and our immediate focus is consistent free cash flow generation and further balance sheet strengthening.

Thank you for listening to our Q&A. And a reminder that if you feel that the recorded answers or any direct e-mail you receive do not address your question, please follow up with us at [email protected].

Welcome to the Tucows Fourth Quarter 2025 Management Commentary. We have prerecorded remarks regarding the quarter and outlook for the company. A Tucows generated transcript of these remarks with relevant links is also available on the company's website.

We will begin with opening remarks and business segment commentary from David Woroch, President and CEO of Tucows and Tucows Domains; followed by Ivan Ivanov, Tucows CFO, who will discuss our financial results in detail, and we will finish with closing remarks, including 2026 guidance from David Woroch.

In lieu of a live question-and-answer period following these remarks, shareholders, analysts and prospective investors are invited to submit questions to Tucows management. Please submit questions via e-mail to [email protected] until Thursday, February 19. Management will either address your questions directly or provide a recorded audio response and transcript that will be posted to the Tucows website on Wednesday, February 25, at approximately 5:00 p.m. Eastern Time.

We would also like to advise that the updated investor presentation and the Tucows Quarterly KPI Summary, which provides key metrics for all of our businesses for the last 8 quarters as well as for full years 2023, 2024 and 2025, and also includes historical financial results is available in the Investors section of the website. As a reminder, beginning last quarter, we revised our presentation of gross profit in our press release to reflect amounts net of network expenses, aligning external reporting with how we manage the business.

Now for management's prepared remarks. On Thursday, February 12, Tucows issued a news release reporting its financial results for the fourth quarter ended December 31, 2025. That news release and the company's financial statements are available on the company's website at tucows.com under the Investors section.

Please note the following discussion may include forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially. These risk factors are described in detail in the company's documents filed with the SEC, specifically the most recent reports on the Forms 10-K and 10-Q. The company urges you to read its security filings for a full description of the risk factors applicable to its business.

Now I would like to turn the call over to Tucows' President and Chief Executive Officer, David Woroch. Go ahead, Dave.

Thank you, Monica. I want to start by acknowledging the teams across Tucows, Domains, Wavelo, Ting and our corporate teams who have continued to execute through a period of real complexity. Tucows has always been a company that builds durable platforms, operates with a long-term mindset and embraces innovation as a practical tool. Our teams have continued that legacy, operating the business efficiently, innovating and navigating change when and where needed.

I'm also appreciative of our Board of Directors who are deeply engaged in the transformation of the business and Elliot, who has been a productive partner in the Ting process and leadership transition.

This quarter was a solid bookend to a strong year for Tucows. We finished 2025 with adjusted EBITDA of $50.6 million, $3.6 million above guidance. The gains were primarily driven by outperformance from Domains and Wavelo. I'll review high-level performance and developments for each business segment, and then our CFO will review the financial results for each segment and the consolidated business in detail.

Tucows Domains delivered another strong year in 2025 with growth across revenue, gross profit and adjusted EBITDA. We finished 2025 exceeding our adjusted EBITDA guidance by $4.7 million. The 2025 performance was driven by solid execution across our core segments, growth in our emerging registry services business, and continued momentum in sales from our Expiry Stream. We are particularly pleased with the progress in scaling registry as a complementary line of business, further diversifying revenue and strengthening our long-term growth profile.

Our domains under management and transactions are normalizing at a modestly lower level as they do from time to time, a result of the previously referenced customer taking their business in-house. But with the broad, diverse and global nature of our reseller base, margin remains healthy.

For Wavelo, I'm very pleased to report for the fourth year in a row, this was our best year yet. In fiscal 2025, Wavelo delivered double-digit growth across revenue, gross profit and adjusted EBITDA, beating 2025 guidance by $4.5 million. 2025 performance was driven by renewing Wavelo's inaugural customer, aligning incentives, creating profitability through discipline and a pipeline and product posture that positions us well for 2026.

Consistent with remarks last quarter, Q4 continued the theme of modest investment in sales and marketing as we look to further strengthen pipeline health in service of 2026 bookings conversion. As we look to 2026, we enter the year with a strong pipeline and a seasoned go-to-market team focused on new customer growth. That said, I want to remind investors that we are executing with an intentionally lean sales and marketing team that represents a meaningfully smaller spend as a percentage of revenue than our competitors. We're able to do so by judiciously integrating AI and having a targeted go-to-market strategy.

For Ting, 2025 couldn't be a more different story when compared to a year ago. Despite finishing the year below guidance, Ting had solid top line growth and a meaningful improvement in adjusted EBITDA. Gross profit was flat in 2025 compared to 2024 and fell short of expectations. A portion of the margin impact reflects the mix shift between partner and owned markets. While net subscriber growth saw its strongest quarter in Q4, the outcome of a refocused and targeted sales and marketing campaign during the year, the uptick came too late to have a more meaningful impact on 2025 results.

Looking forward, we continue to work through our strategic process for Ting. As soon as we have more definitive information and visibility into timing and outcomes, we will advise investors. I understand that's not what everyone wants to hear. We too want clarity on the path forward, and it remains our top priority. When we have something meaningful and disclosable, we will share it. In the meantime, our focus is to operate Ting responsibly, protect enterprise value and preserve optionality, all while we work toward an outcome that maximizes shareholder value.

Now we'll hear from our CFO, Ivan Ivanov, who will discuss our financial results in detail.

Thank you, Dave, and thank you all for joining us today. Consolidated revenue for Q4 '25 was $98.7 million, up 6% year-over-year. All 3 segments contributed. I'll walk through each one shortly, but at the top level, Domains, Wavelo and Corporate combined drove about $80 million of that, and Ting Fiber contributed $18.5 million.

Q4 gross profit was $24.1 million, up 14% year-over-year, with margin supported by favorable mix, particularly higher-margin Domains expiry revenue and lower Wavelo cost of revenues, partially offset by headwinds in TCX from legacy Mobile obligations. Breaking it out, $22.5 million came in from Domains, Wavelo and Corporate combined and $1.6 million from Ting.

Operating expenses in Q4 were $33.1 million, down 35% year-over-year, and that's largely a comparison matter. Last year, Q4 included large restructuring costs and impairment charges, so the year-over-year decline reflects that normalization. We delivered $11.1 million in adjusted EBITDA, down 14% year-over-year or $1.8 million. Of Q4 adjusted EBITDA, $11.9 million came from Domains, Wavelo and Corporate combined and negative $0.9 million from Ting.

Now stepping back for the full year fiscal '25, total consolidated adjusted EBITDA was $50.6 million, which came in $3.6 million above our annual guidance and represents a 45% increase from fiscal '24. If we view fiscal '25 adjusted EBITDA, excluding Ting, it is $56.8 million. On a GAAP basis, net loss for the quarter was $22 million or $1.98 per share, a significant improvement from a net loss of $42.5 million or $3.86 per share for Q4 of last year. On a non-GAAP adjusted basis, net loss for Q4 '25 was $19.4 million or $1.73 per share compared to an adjusted net loss of $15.8 million or $1.43 per share in Q4 '24 with year-over-year changes primarily attributable to professional fees and legacy mobile obligations.

Let me now walk through the segments, starting with Domains. Q4 revenue grew modestly year-over-year to $66.4 million from $65.7 million, accompanied by a 4% increase in gross profit to $19.2 million in Q4 '25 from $18.4 million last year after network expenses. Gross profit performance was supported by the high-margin Expiry Stream. Adjusted EBITDA was $12.5 million for the quarter, up 7% from the prior year on the back of expiry-driven margin strength and prudent expense management. Tucows Domains finished fiscal '25 above guidance at $48.7 million.

Within Domains, the wholesale business was slightly up year-over-year, supported by strong growth in value-added services. Q4 revenue for the wholesale channel rose 2% year-over-year to $57 million compared to $56.1 million for Q4 of last year. Wholesale gross margin increased 7% to $16 million from $15 million last year. I'll remind investors that gross margin is reported net of network expenses. Within the wholesale channel, Domain Services gross margin was flat year-over-year at $10.1 million in Q4. Value-added services had another exceptional quarter, generating $5.8 million in gross margin for a year-over-year gain of 17%, driven by strong sales from our Expiry Stream. In Q4, the Retail segment posted modest declines in revenue and gross margin year-over-year to $9.4 million and $5.2 million, respectively.

Turning to Wavelo. Q4 revenue was $11.7 million, a 19% increase from Q4 of last year. Q4 gross profit was $6.6 million, up 7% year-over-year, supported by EchoStar renewal and rate card dynamics, and improved COGS. Wavelo's adjusted EBITDA was $3.4 million, down year-over-year from $3.7 million, primarily due to higher operating investment, most notably in sales and marketing and investment in the platform. Wavelo finished fiscal '25 at adjusted EBITDA of $17.5 million, $4.5 million above guidance.

Now shifting to Ting Internet. Q4 revenue was $18.5 million, up 18% year-over-year, supported by subscriber growth. Q4 gross profit was $1.6 million, up from negative $1.2 million in Q4 '24. Gross margin percentage decreased as a result of the shift towards partner markets, which require significantly less CapEx but have a higher associated cost of revenue than organic markets. Ting reported an adjusted EBITDA loss of $0.9 million in Q4, an improvement from $1.5 million loss in Q4 of last year.

At a corporate level, Q4 revenue was $2 million, up from $1.8 million in Q4 of last year. Q4 gross profit was negative $3.2 million compared to negative $2.2 million a year ago. Corporate adjusted EBITDA for Q4 was negative $3.9 million from a negative $1 million in Q4 '24. The TCX profitability in the quarter was primarily impacted by elevated professional fees and the mobile business commitments.

Let me now move to cash flow and balance sheet. Consolidated cash flow from operating activities was negative $2.6 million. If we break that out, Domains, Wavelo and TCX generated $4.4 million, which is typically lower than other quarters due to seasonality. Ting generated a $7 million outflow, mainly from ABS interest and working capital requirements.

We ended the quarter with cash and restricted cash of $64.2 million, down from $73.2 million in Q4 of last year. We continue to prioritize disciplined capital allocation and maintaining liquidity across the organization. Corporate net debt, excluding Ting, was $189.5 million as of quarter end, and importantly, we remained in compliance with our covenants under the TCX syndicated facility. For the fourth quarter, the leverage ratio was 3.12x and the interest coverage was 4.17x, both comfortably on site. Ting's net debt stands at $438.8 million, including the ABS notes and the preferred shares.

In summary, Q4 delivered solid broad-based revenue growth with strength across Domains, Wavelo and Ting, and gross profit supported by favorable mix. Heading into '26, we are positioned to build on this momentum and expand profitability as we normalize cost items and continue to execute on operational and capital efficiency, supported by positive operating cash from Tucows Domains and Wavelo.

With that, thank you, and I'll pass it back to Dave for his closing remarks.

Thanks, Ivan. First, I'll provide our initial outlook for fiscal 2026 for Wavelo, Tucows Domains and Corporate. This excludes guidance for Ting until we have more definitive information on the Ting strategic process. The guidance assumes business as usual operations and is subject to macro conditions and other risks described in our filings.

For Tucows Domains, we expect an adjusted EBITDA range of $47 million to $49 million. This reflects the integration and maintenance of our registry contracts and the continued, but moderated contribution from higher-margin Expiry Stream sales, which benefited from an outsized performance in 2025.

For Wavelo, we expect an adjusted EBITDA range of $14.5 million to $15.5 million. This outlook assumes a continued investment and expansion of Wavelo's product features, a modest ramp in sales and marketing spend in service of 2026 bookings conversion and accounts for the range of outcomes for the Ting Internet and Mobile subscribers currently on the platform.

For corporate, we expect an adjusted EBITDA range of negative $6 million to negative $9 million. This is primarily driven by our legacy mobile contract obligations, and we have plans to reduce those costs. To a smaller degree, corporate overhead is also factored in here, where we expect to absorb some of the corporate costs related to Ting, but which will be streamlined over time. This provides total consolidated guidance for 2026, without Ting, of a range of $52.5 million to $58.5 million.

After 25 years at Tucows, I'm coming into this role with a very clear view. This is a period of significant change and 2026 will be a year of transition. We are in the process of resetting how we operate, how we allocate capital and how we hold ourselves accountable for returns. Our shareholders want a company that is simpler to understand, more consistently cash generative and more intentional about building value per share.

I'll start by outlining my vision for Tucows, what we're building, how we'll run it and how we'll deploy capital. My leadership approach has 4 principles. First, customer-centric execution. For Tucows Domains, that means earning the right to be the trusted platform behind our resellers and partners through reliability, economics and product velocity. For Wavelo, it means proving every quarter that we're helping operators modernize and operate better, not just selling software. Our ultimate measure of success is that our customers are spending money with us.

Second, move faster and with clarity. Focus creates speed. We'll simplify our action plans and prioritize results, making it easier for teams to execute.

Third, operational excellence. We'll be decisive about what's working, what isn't, and the best path forward to leverage our strengths. We'll run the company with performance metrics that tie to customer acquisition and retention, margin and cash generation.

Fourth, financial rigor in all decision-making. Our goal is consistent, compounding value creation, growth built on a quantitative basis that includes recurring revenue, strong unit economics and disciplined capital allocation. Here's our strategy once we get to the other side of the Ting process.

We intend to transition Tucows into a capital-light business with a lean operating model. We'll leverage our technical expertise, operational capabilities and competence in scaling platform businesses to build a company that develops, acquires and operates technology services that benefit from shared infrastructure and centralized capabilities. What kind of business fits that model? One with recurring revenue with strong customer retention and a competitive moat; platform economics with consistent gross profit and scalable operations; business-critical workflows where reliability matters; and clear pathways to operational improvements through synergies. This strategy builds on what Tucows already does well, run platforms, integrate customers, serve partners at scale and improve efficiency over time.

One of the biggest restrictions for Tucows over the past several years has been our constrained ability to deploy cash strategically. And I'm going to speak plainly here. Tucows' cash needs have constrained what we could do strategically and financially across Tucows for multiple years. I have a track record of building the Domains business prudently and generating cash that has been used over the years to fund acquisitions, technology upgrades, stock buybacks and support the expansion of Tucows' other businesses. As we work through the Ting process, we will position Tucows to regain flexibility and to use that flexibility in a disciplined way. And that discipline starts with a simple, measurable priority, consistently generating free cash flow.

As we improve our capital flexibility, particularly through a more capital-light approach, we intend to translate operating performance into cash by tightly managing CapEx, maintaining cost discipline and improving working capital so we can self-fund growth, continue to deleverage and create capacity for long-term value creation. Which brings me to capital allocation. How we deploy capital, including balancing deleveraging with investment will be fundamental to future growth. We are working on a framework that will guide those decisions to maximize outcomes for shareholders, and I look forward to sharing more in the coming quarters.

Tucows has always embraced innovation, and we're working to accelerate that with AI, specifically across internal operations. Using an example, it's become a core part of how we build and maintain our code base, and we've seen adoption expand from managers to engineers. I also want to be clear about our approach. We won't overstate uncertain future benefits and we'll adopt AI in a way that protects customers, partners and the integrity of our platforms. Our approach will be practical and measurable, improving support workflows and resolution times, automating repetitive operational tasks and accelerating product delivery where it improves customer outcomes.

Let me close with this. My job is to lead Tucows into its next chapter. A more focused, more disciplined, more capital-light company built around platforms, cash generation and consistent execution. You should expect clarity from us. You should expect us to prioritize shareholder value, and you should expect us to be direct, especially when conditions are uncertain.

Thank you for your time today, for your support and for holding us to a high standard. We look forward to updating you as we execute through 2026.

If you have any questions about the quarter or today's commentary, please send them to [email protected] by February 19, and look for our recorded Q&A audio response and transcript to this call to be posted to the Tucows website on Wednesday, February 25, at approximately 5:00 p.m. Eastern time.

Welcome to Tucows' Third Quarter 2025 Management Commentary. We have prerecorded prepared remarks regarding the quarter and outlook for the company. A Tucows-generated transcript of these remarks with relevant links is also available on the company's website.

We will begin with opening remarks from Elliot Noss, President and CEO of Tucows and Ting; followed by business remarks from David Woroch, CEO of Tucows Domains; Justin Reilly, CEO of Wavelo; Elliot Noss on Ting; Ivan Ivanov, Tucows' CFO, who will discuss our financial results in detail, and we will finish with closing remarks from Elliot Noss.

In lieu of a live question-and-answer period following these remarks, shareholders, analysts and prospective investors are invited to submit questions to Tucows' management. Please submit questions via e-mail to [email protected] until Thursday, November 13. Management will either address your questions directly or provide a recorded audio response and transcript that will be posted to the Tucows website on Tuesday, November 25, at approximately 5:00 p.m. Eastern Time.

We would also like to advise that the updated investor presentation and the Tucows quarterly KPI summary, providing key metrics for all of our businesses for the last 7 quarters as well as for full years 2023, 2024 and 2025 year-to-date, along with historical financial results are available in the Investors section of the website.

Now for management's prepared remarks. On Thursday, November 6, Tucows issued a news release reporting its financial results for the third quarter ended September 30, 2025. That news release and the company's financial statements are available on the company's website at tucows.com under the Investors section.

Please note, the following discussion may include forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially. These risk factors are described in detail in the company's documents filed with the SEC, specifically the most recent reports on the Forms 10-K and 10-Q. The company urges you to read its security filings for a full description of the risk factors applicable to its business.

Now I would like to turn the call over to Tucows President and Chief Executive Officer, Elliot Noss. Go ahead, Elliot.

Thank you, Monica. Tucows' top line growth momentum of the last 4 fiscal years and year-to-date continues in Q3 with 7% growth year-over-year. Gross profit expanded 9% year-over-year and adjusted EBITDA increased 53% to $13.3 million in Q3 and to $39.5 million year-to-date. This puts us well on track to meet our full year adjusted EBITDA guidance of $47 million. Outperformance in both Domains and Wavelo drove the upside, along with significantly improved adjusted EBITDA losses from Ting. We paid down a further $2.5 million on our syndicated bank loan. Corporate net debt now stands at $189.6 million, marking a sixth straight quarterly decline and bringing net leverage under 3x with interest coverage at 4.2x, comfortably within our covenants.

And with that, I'll turn it over to Dave Woroch, CEO of Tucows Domains.

Thanks, Elliot. Tucows Domains delivered another solid financial quarter in Q3, with revenue, gross margin and adjusted EBITDA each increasing year-over-year. The gains continue the year-to-date performance that is lifting our adjusted EBITDA slightly ahead of pace for our 2025 guidance.

Revenue for Q3 grew 5% year-over-year, accompanied by a 7% increase in gross margin. Adjusted EBITDA was $12.1 million for the quarter, up 5% from the prior year, bringing year-to-date adjusted EBITDA to $36.2 million.

Within our segments, our wholesale business continued its strong growth year-over-year, driven by consistent reseller demand and particularly by higher-margin Value Added Services. Q3 revenue for the wholesale channel rose 5% year-over-year to $58 million compared to $55 million for Q3 of last year. Wholesale gross margin increased 10% to $15.8 million from $14.4 million last year. Within the Wholesale channel, Domain Services delivered $10.1 million of gross margin, up 4% from $9.7 million in Q3 2024. Value Added Services had another exceptional quarter, generating $5.7 million in gross margin for a year-over-year gain of 21%, driven by strong sales from our expiry stream.

The Retail segment posted a modest revenue increase of 2% year-over-year to $9.8 million, and gross margin was flat at $5.5 million.

Total domains under management and transaction volumes declined 9% and 10% year-over-year, respectively, reflecting the impact of one wholesale customer migrating the bulk of its portfolio in-house. We've discussed this transaction over the past 2 quarters and expect its effects on domains under management to conclude in Q4 with the year-over-year impact on Domain transactions continuing through next year when the full annual renewal cycle completes.

Importantly, despite this transitional reduction in domains and transactions, which we have experienced from time to time in our 25-year history, our diversified reseller base continues to drive stable and growing gross margin for the business.

Net of some atypical registration activity, our renewal rate for Q3 was approximately 74% across all TLDs for the Tucows Domains' brands. And while in the lower end, it remains within our historical range and above the industry average. Also worth noting, a slightly lower renewal rate does translate into more names expiring, which feeds into our expiry stream auction and sales.

Turning to our registry services business. We have now been operating the registry platform for NIXI, the National Internet Exchange of India and registry operator of the .in country code TLD for 6 months. Our partnership is going well, and we have recently started to explore new and interesting initiatives to expand our collaboration with NIXI. Our engagement with Radix remains equally strong, and although the migration has been postponed to early 2026, our teams and systems are ready and fully prepared to onboard and migrate more than 10 million domains across the Radix TLDs when the process starts. As mentioned last quarter, these 2 partnerships together position the Tucows Registry segment to manage nearly 17 million domains.

Tucows Domains continues to deliver consistent revenue and margin expansion, highlighting our solid fundamentals and strength of our global platform. We're well positioned for Q4 and into 2026. Thanks for listening. And now over to Justin Reilly, CEO of Wavelo.

Thanks, Dave. Q3 was another strong quarter for Wavelo, delivering double-digit year-over-year growth in revenue, gross margin and adjusted EBITDA. Wavelo's revenue was $11.9 million in Q3, an almost 18% increase from Q3 2024 and a 6% decrease from last quarter. Gross margin was $11.8 million this quarter, a 17.5% increase from Q3 2024 and a 6% decrease from last quarter. Adjusted EBITDA for Q3 was $4.3 million, a 25% increase year-over-year and a decrease of 20% quarter-over-quarter. The year-over-year growth reflects continued subscriber growth within the existing customer base as well as the new EchoStar rate card introduced as part of the 4-year renewal at the start of 2025. As a reminder, we typically see higher revenue recognition in Q2 each year from the expiry of bundled professional services that are included annually as part of our platform services agreement with EchoStar.

This quarter, we experienced a seasonal slowdown as we delivered professional services against those bundled hours ahead of their annual expiry. Looking ahead, we expect to continue recognizing revenue from these services on a more regular basis, which should reduce the historical seasonality in our quarterly results.

As we navigate the back half of the year, we expect to continue to benefit from the tailwinds experienced year-to-date, but with a slight ramp in investment, particularly in sales and marketing as we invest to acquire customers, build pipeline health and drive bookings conversion.

Top-of-the-funnel activity increased meaningfully in Q3, driven in large part by our early network of Systems Integrator Partnerships, which are now beginning to deliver qualified Tier 1 and Tier 2 introductions. This reflects increasing market recognition of Wavelo's differentiated modular architecture and the appetite for credible alternatives to legacy BSS and OSS platforms. While operator sentiment remains cautious with procurement cycles lengthening and some operators punting modernization decisions out a few quarters, the volume of RFI and RFP activities continues to rise, particularly around legacy replacement programs with a clear AI focus. Telecoms are signaling fatigue with both the inflexibility of large incumbents and the instability of small niche vendors.

Wavelo's combination of simplicity, scalability and enterprise-grade platform positions us well in this gap. We have maintained discipline in qualifying out smaller, lower-value opportunities to concentrate resources on transformational accounts that align with our long-term vision. As our Systems Integrator channel matures, we expect to see the dual benefit of expanded distribution and more efficient delivery capacity, which is a key lever in our ability to balance growth and profitability in years to come.

Thanks for listening. And now over to Elliot.

Thanks, Justin. Ting delivered another quarter of strong year-over-year growth and a meaningful improvement in adjusted EBITDA. A key contributor this quarter was the beginning of revenue from a large senior living community we're expanding into.

Revenue hit $17 million in Q3, an 11% increase year-over-year. Third quarter gross margin declined to $10.5 million from $11 million in Q3 of last year. This is primarily from Ting revenues increasing in partner markets over owned markets as our partner markets builds accelerate and partner markets have costs associated with network leases that impact margin.

Ting's adjusted EBITDA also continues to trend in a positive direction with a small loss of $880,000 in Q3, down from $5.1 million in Q3 of 2024. In Q3 2025, our Enterprise and Other Ting segment, which includes enterprise, bulk, fixed wireless and the remaining Cedar footprint delivered $3.6 million in revenue, and $926,000 in contribution margin. Results were led by continued strength in enterprise and bulk where revenue grew 28% year-over-year. Year-to-date, the segment has generated $11.3 million in revenue and $3.2 million in contribution margin, highlighting the consistency and profitability of this part of the business.

We have continued to divest of nonstrategic assets, which this quarter includes the southern part of our Cedar footprint in Colorado. A reminder that these are markets where we no longer have the capital to build and network construction inventory we no longer intend to use. In Q3, we generated $8.5 million from these divestitures. Year-to-date in 2025, the company has generated gross proceeds of $20.8 million on these divestitures, and the net book value of assets at the time of the sales was $15 million, resulting in a gain of $5.8 million. The sale of these network footprints naturally brings down our reported subscriber and serviceable address numbers, and you'll see that reflected in the Q3 KPI summary.

Now we'll hear from our CFO, Ivan Ivanov, who will discuss our financial results in detail.

Thank you, Elliot, and thank you all for joining us today. The third quarter extended the year's trajectory of steady top line growth and expanding profitability. At the consolidated level, revenue was $98.6 million, up 7% year-over-year. Gross profit was $24.2 million, up 9%. And adjusted EBITDA increased 53% to $13.3 million. Year-to-date, adjusted EBITDA totaled $39.5 million, putting us well along the path towards our full year target.

On a GAAP basis, net loss for the quarter was $23 million and adjusted net loss was $15.8 million, reflecting both the step-up in operating performance and the impact of the noncash items I'll detail in a moment.

Beginning this quarter, we revised our presentation of segment gross profit in our press release to reflect amounts net of network expenses, aligning external reporting with how we manage the business. The change does not affect consolidated revenue, gross profit or adjusted EBITDA.

This quarter also includes a $10.9 million noncash impairment related to revalued inventory and warehouse lease right-of-use assets at Ting. This charge is excluded from adjusted EBITDA and has no impact on cash. It was part of our ongoing effort to streamline the asset base as Ting completes its pivot to a capital-light ISP model.

Also consistent with what we signaled last quarter, we continue to recycle nonstrategic assets and recognized approximately $4 million of gains on asset sales this quarter. Last quarter, we noted an additional transaction would be recognized in Q3, and it flowed through as expected.

Moving on to segment performance. Tucows Domains delivered another solid quarter of earnings with revenue of $67.8 million and segment adjusted EBITDA of $12.1 million. Wholesale and Retail both contributed with Value Added Services, including the expiry stream, remaining a notable margin driver.

Wavelo recorded another strong quarter with revenue of $11.9 million and adjusted EBITDA of $4.3 million, both up double digits year-over-year. Importantly, Wavelo continues to pair growth with operating discipline, producing gross margins at 99.3% of revenue this quarter.

Ting's top line momentum continued with revenue of $17 million, up 11% year-over-year. Ting reported gross profit of $10.5 million and adjusted EBITDA improved to a loss of $0.9 million, a year-over-year improvement of more than $4 million. As we called out in the release, a higher partner address mix weighed on near-term gross margin, consistent with our capital-light demand-led strategy.

On cash flow and balance sheet, cash and restricted cash ended the quarter at $70.8 million, up from $68.6 million in Q2. Net cash provided by operating activities was $1.5 million for the quarter, and net cash used by operating activities of $3.2 million year-to-date, reflecting normal working capital seasonality and the timing of certain cash expenses. We continue to be disciplined with capital allocation, including cash conservation. The partner mix shift at Ting reduces capital intensity, and we are recycling capital through the sale of nonstrategic assets, as noted earlier.

Further, as of September 30, '25, Ting elected to defer the preferred return to Generate for the past 2 quarters. In accordance with the terms of the agreement, the deferred amount plus interest has been treated as payment in kind, or PIK, of $9.5 million and added to the outstanding balance of the redeemable preferred units. With $39.5 million of adjusted EBITDA generated through Q3, we are well on track to achieve our full year adjusted EBITDA guidance of $47 million. Organizational-wide execution, cost discipline and adoption of AI are the key levers.

In summary, Q3 shows continued momentum of top line growth, expanding adjusted EBITDA and disciplined capital management. We will stay focused on execution and capital efficiency as we close out the year.

I will now hand it back to Elliot. But before I do, I would like to thank Elliot for his leadership, mentorship and friendship throughout my relatively short tenure at Tucows. We will continue to work together as we manage the Ting process, and I also look forward to working with Dave. Thank you.

Thank you, Ivan. First, I noted last quarter that we were evaluating strategic paths for Ting, and I will share that we are formally involved in a process for the Ting business. We believe that the sale of Ting will strengthen Tucows in the long term by enabling it to focus on its Domain and Wavelo businesses, even though Tucows does not expect to realize significant profit, if any, from the sale of Ting given its asset-based debt and preferred share obligations. We expect to have a clear sense of direction by the end of the year and we'll, of course, share information as appropriate.

With that shared, I will now turn to personal news. Over the last 5 to 10 years or so, my time has been spent more and more on Ting and less and less with the rest of the business. In Justin and Dave, we have 2 excellent CEOs. And now with Ivan, we are doing an even better job of providing the shared services that come out of TCX.

While I will remain with the Ting business through the end of the process and hopefully thereafter, I will be stepping back after nearly 30 years. And as of today, I will no longer be the CEO of Tucows. Dave Woroch will step into that role. And I know that with Dave, Justin and Ivan, I'm leaving things in great hands. I will remain on the Board, and I'm a large investor. I am blessed and proud.

We created the world's first edge network with the original software libraries. We created wholesale domain registration out of whole cloth, which fundamentally changed the way domain names were distributed. We led a wave of innovation in U.S. mobile, introducing innovations that T-Mobile repeatedly copied and called Un-carrier. We started and continue to be key players in the wave of partner, or as those who want to misname them say, open access networks in the U.S. And through it all, we did it in a way that treated all stakeholders, employees, partners, customers as well as investors like humans.

I've been blessed with thousands of proud moments. Looking back on nearly 30 years, the proudest ones are the little ones. The employee that I have never met making a point of telling me how much they enjoyed their job and how the work environment was unlike any they had experienced. It was the customer stopping me on a beach in the Caribbean while wearing a Ting shirt to tell me how fantastic their customer experience was. It was investors telling us how straightforward we were in our communications. It was the partner letting me know they chose us because of how we treated them.

At the end of the day, this is all culture, and culture is simply people manifesting relationships. I have always fundamentally believed that most people are simply hoping for the opportunity to do their best work, and my goal was always to create a culture that let them. That trust can be taken advantage of, but overwhelmingly, it is not. And I am confident that this culture will continue. As for me, I will remain on the Board and connected to both Domains and Wavelo.

In closing, I want to thank all of those investors and others who have supported Tucows and me over the years. With many of you, we have had long relationships with the common bond of TCX stock. For this group, in particular, I want to be clear that the work is not done. The management team and the Board look forward to doing that work.

And with that, please ask your questions of my successors.

And if you do have questions, please send them to [email protected] by November 13, and look for our recorded Q&A audio response and transcript to this call to be posted to the Tucows website on Tuesday, November 25, at approximately 5:00 p.m. Eastern Time. Thank you.