TUCOWS INC /PA/

Previous wording

This Quarterly Report on Form 10-Q contains, in addition to historical information, forward-looking statements by us with regard to our expectations as to financial results and other aspects of our business that involve risks and uncertainties and may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “should,” “anticipate,” “believe,” “plan,” “estimate,” “expect,” and “intend,” and other similar expressions are intended to identify forward-looking statements. The forward-looking statements contained in this report include statements regarding, among other things, the competition we expect to encounter as our business develops and competes in a broader range of Internet services, the Company's foreign currency requirements, specifically for the Canadian dollar and Euro; Wavelo, and Ting subscriber growth and retention rates; the number of new, renewed and transferred-in domain names we register as our business develops and competes; the effect of a potential generic top level domain (“gTLD”) expansion by the Internet Corporation for Assigned Names and Numbers (“ICANN”) on the number of domains we register and the impact it may have on related revenues; our belief regarding the underlying platform for our domain services; our expectation regarding the trend of sales of domain names; our belief that, by increasing the number of services we offer, we will be able to generate higher revenues; our expectation regarding litigation; the potential impact of current and pending claims on our business; our valuations of certain deferred tax assets; our expectation to collect our outstanding receivables, net of our credit losses; our expectation regarding fluctuations in certain expense and cost categories; our expectations regarding liquidity and capital requirements of the Ting Internet business, as well as the outcome of any process to access strategic alternatives for this business; our expectations regarding the evaluation of our strategic alternatives for Ting; our expectations regarding our unrecognized tax; our expectations regarding cash from operations to fund our business; the impact of cancellations of or amendments to market development fund programs under which we receive funds; our expectation regarding our ability to manage realized gains/losses from foreign currency contracts; our partnership with an affiliate of Generate (as defined below); and general business conditions and economic uncertainty. These statements are based on management’s current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Many factors affect our ability to achieve our objectives and to successfully develop and commercialize our services including:

Current wording

This Quarterly Report on Form 10-Q contains, in addition to historical information, forward-looking statements by us with regard to our expectations as to financial results and other aspects of our business that involve risks and uncertainties and may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “should,” “anticipate,” “believe,” “plan,” “estimate,” “expect,” and “intend,” and other similar expressions are intended to identify forward-looking statements. The forward-looking statements contained in this report include statements regarding, among other things, the competition we expect to encounter as our business develops and competes in a broader range of Internet services, the Company's foreign currency requirements, specifically for the Canadian dollar and Euro; Wavelo, and Ting subscriber growth and retention rates; the number of new, renewed and transferred-in domain names we register as our business develops and competes; the effect of a potential gTLD expansion by the ICANN on the number of domains we register and the impact it may have on related revenues; our belief regarding the underlying platform for our domain services; our expectation regarding the trend of sales of domain names; our belief that, by increasing the number of services we offer, we will be able to generate higher revenues; our expectation regarding litigation; the potential impact of current and pending claims on our business; our valuations of certain deferred tax assets; our expectation to collect our outstanding receivables, net of our credit losses; our expectation regarding fluctuations in certain expense and cost categories; our expectations regarding liquidity and capital requirements of the Ting Internet business, as well as the outcome of any process to access strategic alternatives for this business; our expectations regarding the evaluation of our strategic alternatives for Ting; our expectations regarding our unrecognized tax; our expectations regarding cash from operations to fund our business; the impact of cancellations of or amendments to market development fund programs under which we receive funds; our expectation regarding our ability to manage realized gains/losses from foreign currency contracts; and general business conditions and economic uncertainty. These statements are based on management’s current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Many factors affect our ability to achieve our objectives and to successfully develop and commercialize our services including:

Previous wording

•Our ability to service our debt commitments and preferred unit commitments;

Current wording

•Our ability to service our debt commitments;

Previous wording

We accomplish this by reducing the complexity of our customers’ experience as they access the Internet (at home or on the go) and while using Internet

Current wording

We accomplish this by reducing the complexity of our customers’ experience as they access the Internet (at home or on the go) and while using Internet services such as domain name registration, email and other Internet related services. We are organized into three operating and reporting segments - Ting, Wavelo, and Tucows Domains. Each segment is differentiated primarily by their services, the markets they serve and the regulatory environments in which they operate. The Ting segment contains the operating results of our retail high speed Internet access operations, including its wholly owned subsidiaries - Cedar and Simply Bits. The Wavelo segment includes our platform and professional services offerings, as well as the billing solutions to Internet services providers ("ISPs"). Tucows Domains includes wholesale and retail domain name registration services, as well as value added services derived through our OpenSRS, ENom, Ascio, EPAG and Hover brands.

Previous wording

Our Chief Executive Officer ("CEO"), who is also our chief operating decision maker, regularly reviews the operating results of Ting, Wavelo and Tucows

Current wording

Our CEO, who is also our chief operating decision maker, regularly reviews the operating results of Ting, Wavelo and Tucows Domains as three distinct segments in order to make key operating decisions as well as evaluate segment performance. Certain revenues and expenses disclosed under the Corporate category are excluded from Segment Adjusted EBITDA results as they are centrally managed and not monitored by or reported to our CEO by segment, including mobile retail services, eliminations of intercompany transactions, portions of finance and human resources that are centrally managed, legal and corporate Information Technology ("IT") shared services.

Previous wording

For the three months ended June 30, 2026 and June 30, 2025, we reported net revenue of $100.6 million and $98.5 million, respectively.

Current wording

For the three months ended September 30, 2026 and September 30, 2025, we reported net revenue of $100.0 million and $98.6 million, respectively.

Previous wording

For the six months ended June 30, 2026 and June 30, 2025, we reported net revenue of $197.2 million and $193.1 million, respectively.

Current wording

For the nine months ended September 30, 2026 and September 30, 2025, we reported net revenue of $297.2 million and $291.6 million, respectively.

Previous wording

As of June 30, 2026, Ting Internet had access to 126,000 owned infrastructure serviceable addresses, 137,000 partner infrastructure serviceable addresses and 60,500 active subscribers under its management; compared to having access to 132,000 owned infrastructure serviceable addresses, 66,000 partner infrastructure serviceable addresses and 52,000 active subscribers under its management as of June 30, 2025. These figures exclude any changes in serviceable addresses and accounts attributable to Simply Bits.

Current wording

As of September 30, 2026, Ting Internet had access to 126,000 owned infrastructure serviceable addresses, 161,400 partner infrastructure serviceable addresses and 64,000 active subscribers under its management; compared to having access to 126,000 owned infrastructure serviceable addresses, 88,000 partner infrastructure serviceable addresses and 52,000 active subscribers under its management as of September 30, 2025. These figures exclude any changes in serviceable addresses and accounts attributable to Simply Bits.

Previous wording

On July 27, 2026, the Company, Ting and certain of its affiliated entities, the “Ting Entities,” entered into a series of related, definitive agreements (collectively, the "Generate Exit Transaction") with Generate TF Holdings, LLC (“Generate”) and certain of its affiliated entities (the “Generate Entities”). See "Note 22. Subsequent Events” in the Notes to the Condensed Consolidated Financial Statements included in Part I, of this Quarterly Report for further information. The Generate Exit Transaction resolved the conditions disclosed with respect to Ting, including the accrued and unpaid preferred return and the Return Breach and corresponding Trigger Event asserted by Generate and described in the Company's Current Report on Form 8-K filed on December 5, 2025 and the items discussed above in “Note 19. Redeemable Preferred Units” of the Notes to the Condensed Consolidated Financial Statements included in Part I, of this Quarterly Report. As a result of the Generate Exit Transaction, Generate ceased to be a preferred member of Ting, waived and released all rights, powers and preferences associated with the Series A Preferred Units (including all redemption, mandatory-redemption, conversion and call rights), and withdrew all outstanding notices, including the notice asserting a Return Breach and Trigger Event. The parties also exchanged mutual releases.

Current wording

On July 27, 2026, the Company, Ting and certain of its affiliated entities, entered the Exit Agreement with Generate. Under the Exit Agreement, the Company acquired all of the Series A Preferred Units of Ting held by Generate for $3.0 million in cash, and the units were subsequently surrendered, cancelled and retired. The Exit Agreement also provides for certain contingent payments to Generate, which is included as the deferred gain on restructured debt as of September 30, 2026. The Exit Agreement resolved the conditions disclosed with respect to Trigger Event, including the accrued and unpaid preferred return and the Return Breach and corresponding Trigger Event asserted by Generate and described in the Company’s Current Report on Form 8-K filed on December 5, 2025 and the items discussed above in “Note 19. Redeemable Preferred Units” of the Notes to the Condensed Consolidated Financial Statements included in Part I of this Quarterly Report. As a result of the Exit Agreement, Generate ceased to be a preferred member of Ting, waived and released all rights, powers and preferences associated with the Series A Preferred Units (including all redemption, mandatory-redemption, conversion and call rights), and withdrew all outstanding notices, including the notice asserting a Return Breach and Trigger Event. The parties also exchanged mutual releases. The remaining carrying amount of the obligation of $146.1 million was deferred and is presented as “Deferred gain on restructured debt” in the Condensed Consolidated Balance Sheet, and will be recognized in earnings when the contingent payments are resolved or expire. See “Note 19. Redeemable Preferred Units” of the Notes to the Condensed Consolidated Financial Statements included in Part I of this Quarterly Report for further information.

Previous wording

Tucows Domains includes whole sale and retail domain name registration services, as well as value added services derived through our OpenSRS, ENom, Ascio, EPAG, and Hover brands. Tucows Domains generates revenues primarily from the registration fees charged to resellers in connection with new, renewed and transferred domain name registrations. In addition, we earn revenues from the sale of retail domain name registration and email services to individuals and small businesses. Tucows Domains revenues are attributed to the country in which the contract originates, which is primarily in Canada and the U.S for OpenSRS and ENom brands whereas it is primarily in European nations for Ascio and EPAG.

Current wording

Tucows Domains includes wholesale and retail domain name registration services, as well as value added services derived through our OpenSRS, ENom, Ascio, EPAG, and Hover brands. Tucows Domains generates revenues primarily from the registration fees charged to resellers in connection with new, renewed and transferred domain name registrations. In addition, we earn revenues from the sale of retail domain name registration and email services to individuals and small businesses. Tucows Domains revenues are attributed to the country in which the contract originates, which is primarily in Canada and the U.S for OpenSRS and ENom brands whereas it is primarily in European nations for Ascio and EPAG.

Previous wording

Our primary distribution channel is a global network of 32,000 resellers that operate in approximately 200 countries and who typically provide their customers, the end-users of Internet-based services, with solutions for establishing and maintaining an online presence. Our primary focus is serving the needs of this network of resellers by providing the broadest portfolio of gTLD and country code top-level domain options and related services, a white-label platform that facilitates the provisioning and management of domain names, a powerful Application Program Interface, easy-to-use interfaces, comprehensive management and reporting tools, and proactive and attentive customer service. Our services are integral to the solutions that our resellers deliver to their customers. We provide “second tier” support to our resellers by email, chat and phone in the event resellers experience issues or problems with our services. In addition, our Network Operating Center proactively monitors all services and network infrastructure to address deficiencies before customer services are impacted.

Current wording

Our primary distribution channel is a global network of approximately 32,000 resellers that operate in approximately 200 countries and who typically provide their customers, the end-users of Internet-based services, with solutions for establishing and maintaining an online presence. Our primary focus is serving the needs of this network of resellers by providing the broadest portfolio of gTLD and country code top-level domain options and related services, a white-label platform that facilitates the provisioning and management of domain names, a powerful Application Program Interface, easy-to-use interfaces, comprehensive management and reporting tools, and proactive and attentive customer service. Our services are integral to the solutions that our resellers deliver to their customers. We provide “second tier” support to our resellers by email, chat and phone in the event resellers experience issues or problems with our services. In addition, our Network Operating Center proactively monitors all services and network infrastructure to address deficiencies before customer services are impacted.

Previous wording

Wholesale, primarily branded as OpenSRS, ENom, EPAG and Ascio, derives revenue from its domain name registration service Together the OpenSRS, ENom, EPAG and Ascio Domain Services manage 21.3 million domain names under the Tucows, ENom, EPAG and Ascio ICANN registrar accreditations and for other registrars under their own accreditations. Domains under management have decreased by 2.7 million since June 30, 2025.

Current wording

Wholesale, primarily branded as OpenSRS, ENom, EPAG and Ascio, derives revenue from its domain name registration service Together the OpenSRS, ENom, EPAG and Ascio Domain Services manage 21.3 million domain names under the Tucows, ENom, EPAG and Ascio ICANN registrar accreditations and for other registrars under their own accreditations. Domains under management have decreased by 1.0 million since September 30, 2025.

Previous wording

Tucows reports all financial information in accordance with U.S. GAAP. Along with this information, to assist financial statement users in an assessment of our historical performance, we typically disclose and discuss a non-GAAP financial measure, Adjusted EBITDA, on investor conference calls and related events that excludes certain non-cash and other charges as we believe that the non-GAAP information enhances investors’ overall understanding of our financial performance, but should not be considered in isolation from or as a replacement for the most directly comparable GAAP financial measures. Please see discussion of Adjusted EBITDA as well as the Adjusted EBITDA reconciliation to net income in the Results of Operations section below.

Current wording

Tucows reports all financial information in accordance with U.S. GAAP. Along with this information, to assist financial statement users in an assessment of our historical performance, we typically disclose and discuss a non-GAAP financial measure, Adjusted EBITDA, on investor conference calls and related events that excludes certain non-cash and other charges as we believe that the non-GAAP information enhances investors’ overall understanding of our financial performance, but should not be considered in isolation from or as a replacement for the most directly comparable GAAP financial measures. Please see discussion of Adjusted EBITDA as well as the Adjusted EBITDA reconciliation to net loss in the Results of Operations section below.

Previous wording

During the year ended December 31, 2025, Ting initiated and currently continues a review process for the Ting business focused on evaluating strategic alternatives to optimize its capital structure and long-term operating model given the ongoing capital needs of Ting. This process has included the exploration of potential asset sales, partnership structures and other strategic transactions involving Ting’s fiber network assets.

Current wording

During the year ended December 31, 2025, Ting initiated and currently continues a review process for the Ting business focused on evaluating strategic alternatives to optimize its capital structure and long-term operating model given the ongoing capital needs of Ting. This process has included the exploration of potential asset sales, partnership structures and other strategic transactions involving Ting’s fiber network assets. During the third quarter, Ting replaced its Memphis network agreement with a revised wholesale agreement. On October 21, 2026, Ting agreed to assign its Colorado Springs network lease to Google Fiber Colorado, LLC, with closing expected on March 31, 2027, subject to customary conditions. At closing, Ting will pay Colorado Springs Utilities $4.0 million. Following closing and satisfaction of certain post-closing obligations to CSU, which are expected to occur by the end of April 2027, the Company's parent guaranty will be released. Ting will continue to operate the Colorado Springs network until customers are migrated, expected no later than June 30, 2027. These exits are expected to reduce Ting's operating costs and eliminate long-term lease obligations.

Previous wording

In addition, as previously disclosed in a Current Report on Form 8-K filed with the Securities and Exchange Commission (“SEC”) on December 5, 2025, on December 1, 2025, Ting received written notice from Generate, the holder of Ting’s Series A Preferred Units, asserting that under the Ting Fiber LLC Amended and Restated Limited Liability Company Agreement, dated as of August 11, 2022 (the “LLC Agreement”), a Return Breach and a Trigger Event has occurred as a result of Ting’s failure to pay the quarterly preferred return for two consecutive quarters. Generate has reserved its right to pursue remedies available under the LLC Agreement and applicable law, including the ability to make a request for redemption of all Series A Preferred Units (a “Redemption Request”). As of the date of this report, Generate has not submitted a request for the redemption of all Series A Preferred Units nor sought to exercise any of its remedies under the LLC Agreement. Refer to “Note 19. Redeemable Preferred Units” to the Consolidated Financial Statements for further details.

Current wording

As previously disclosed in a Current Report on Form 8-K filed with the SEC on December 5, 2025, on December 1, 2025, Ting received written notice from Generate, the holder of Ting’s Series A Preferred Units, asserting that under the LLC Agreement, a Return Breach and a Trigger Event had occurred as a result of Ting’s failure to pay the quarterly preferred return for two consecutive quarters. Generate had reserved its right to pursue remedies available under the LLC Agreement and applicable law, including the ability to make a request for redemption of all Series A Preferred Units. Had Generate submitted a Redemption Request, Ting would have been required to redeem all outstanding Series A Preferred Units at the applicable redemption price, which was estimated at $204.9 million, within 30 days of such request. As a result of this contractual provision, the Series A Preferred Units were classified as current liabilities in the Company’s Consolidated Balance Sheet as of December 31, 2025. Generate did not submit a Redemption Request prior to the Exit Agreement described below.

Previous wording

The Company does not believe that the Return Breach or Trigger Event has had a material adverse impact on Ting’s day-to-day operations, customer service or network performance.

Current wording

The Company does not believe that the Return Breach or Trigger Event had a material adverse impact on Ting’s day-to-day operations, customer service or network performance.

Previous wording

Additionally, as part of the EchoStar Purchase Agreement, the Company retained a small number of customer accounts associated with one MNO agreement that was not reassigned to EchoStar at time of sale. We were subject to the minimum revenue commitments previously agreed to with this excluded MNO agreement. The Company was able to continue adding customers under the excluded MNO network in order to meet the commitment. However, with no direct ability to change customer pricing and limited ability to renegotiate contract costs or significant terms, the Company was unable to meet the minimum commitments with this MNO partner and incurred significant penalties through the prior year; and continued to incur penalties until such a time that the term of the contract completed in January 2026. As of June 30, 2026, the Company did not accrue any further penalties associated with the minimum commitment shortfall in the current period, as the term of the contract was completed. Beyond the term of the contract, the agreement continues month-to-month thereafter, with no expected penalties in the month-to-month arrangement. However, if the Company seeks negotiation to renew the contract for an extended term in support of more favorable per-subscriber rates to improve the margin profile associated with the business, we may be bound by minimum commitments once again. These could be in excess of our customer-based usage, which could increase our cost of revenues and negatively impact our financial results.

Current wording

Additionally, as part of the EchoStar Purchase Agreement, the Company retained a small number of customer accounts associated with one MNO agreement that was not reassigned to EchoStar at time of sale. We were subject to the minimum revenue commitments previously agreed to with this excluded MNO agreement. The Company was able to continue adding customers under the excluded MNO network in order to meet the commitment. However, with no direct ability to change customer pricing and limited ability to renegotiate contract costs or significant terms, the Company was unable to meet the minimum commitments with this MNO partner and incurred significant penalties through the prior year; and generated significant losses until the contract was renewed under different terms in August 2026. The initial contract obligation was completed in January 2026. Beyond the term of the contract, the agreement continued month-to-month thereafter, until the contract was renewed in August 2026 with more favorable per-subscriber rates to improve the margin profile associated with the business. The renewal provided a rerate credit for overcharges resulting from invoices issued at the previous rates from May to September 2026. It also includes a lower, more achievable Minimum Revenue Requirement ("MRR") at our current subscriber count, defers payment on the historical penalty that arose from the prior contract, and includes an earnback condition allowing us to reduce that payable over time should we meet certain usage requirements. As of September 30, 2026, the Company has earned back $0.1 million from this earnback program.

Previous wording

RESULTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AS COMPARED TO THE THREE AND SIX MONTHS ENDED JUNE 30, 2025 NET REVENUES

Current wording

RESULTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2026 AS COMPARED TO THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 NET REVENUES

Previous wording

Our construction services generate revenue from the design, construction, and installation of a fiber optic network for a specific customer contract. Control of the network infrastructure transfers to the customer as it is constructed. Revenue from network construction is recognized over time, as Ting’s performance creates or enhances an asset that the customer controls as it is being constructed. Progress toward completion is measured using an output method, based primarily on network build milestones such as served addresses completed and accepted by the customer. Amounts billed in advance of revenue recognition are recorded as contract liabilities, while amounts recognized in excess of billings are recorded as contract assets. Where services require installation, revenue is not recognized until a customer's service is activated.

Current wording

Our construction services generate revenue from the design, construction, and installation of a fiber optic network for a specific customer contract. Control of the network infrastructure transfers to the customer as it is constructed. Revenue from network construction is recognized over time, as Ting’s performance creates or enhances an asset that the customer controls as it is being constructed. Progress toward completion is measured using an output method, based primarily on network build milestones such as served addresses completed and accepted by the customer. Amounts billed in advance of revenue recognition are recorded as contract liabilities, while amounts recognized in excess of billings are recorded as contract assets. Where services require installation, revenue is not recognized until a customer's service is billed.

Previous wording

The Company is an ICANN accredited registrar. The Company is the primary obligor with our reseller and retail registrant customers and is responsible for the fulfillment of our registrar services to those parties. As a result, the Company reports revenue in the amount of the fees we receive directly from our reseller and retail registrant customers. Our reseller customers maintain the primary obligor relationship with their retail customers, establish pricing and retain credit risk to those customers. Accordingly, the Company does not recognize any revenue related to transactions between our reseller customers and their ultimate retail customers.

Current wording

The Company is an Internet Corporation for Assigned Names and Numbers accredited registrar. The Company is the primary obligor with our reseller and retail registrant customers and is responsible for the fulfillment of our registrar services to those parties. As a result, the Company reports revenue in the amount of the fees we receive directly from our reseller and retail registrant customers. Our reseller customers maintain the primary obligor relationship with their retail customers, establish pricing and retain credit risk to those customers. Accordingly, the Company does not recognize any revenue related to transactions between our reseller customers and their ultimate retail customers.

Previous wording

Domain registration contracts, which can be purchased for terms of one to ten years, provide our resellers and retail registrant customers with the exclusive right to a personalized internet address from which to build an online presence. The Company enters into domain registration contracts in connection with each new, renewed and transferred-in domain registration. At the inception of the contract, the Company charges and collects the registration fee for the entire registration period. Though fees are collected upfront, revenue from domain registrations are recognized ratably over the registration period as domain registration contracts contain a ‘right to access’ license of IP, which is a distinct performance obligation measured over time. The registration period begins once the Company has confirmed that the requested domain name has been appropriately recorded in the registry under contractual performance standards.

Current wording

Domain registration contracts, which can be purchased for terms of one to ten years, provide our resellers and retail registrant customers with the exclusive right to a personalized internet address from which to build an online presence. The Company enters into domain registration contracts in connection with each new, renewed and transferred-in domain registration. At the inception of the contract, the Company charges and collects the registration fee for the entire registration period. Though fees are collected upfront, revenue from domain registrations is recognized ratably over the registration period as the Company provides the customer with a domain registration service, which represents a distinct performance obligation satisfied over time. The registration period begins once the Company has confirmed that the requested domain name has been appropriately recorded in the registry under contractual performance standards.

Previous wording

Tucows Registry Services (“TRS”) provides registry platform and related technical services to operators of generic top-level domains (“gTLDs”), branded top-level domains, and country code top-level domains. These services include processing domain name transactions and maintaining the related infrastructure and support systems required to operate the registry. Revenue is primarily transaction-based and is calculated as a fixed fee per financial transaction processed during the month. Because customers simultaneously receive and consume the benefits of the registry services as they are provided, revenue is recognized in the period in which the transactions occur. Service level credits are treated as variable consideration and are recorded as a reduction of revenue in the period in which they are incurred.

Current wording

Tucows Registry Services provides registry platform and related technical services to operators of generic top-level domains, branded top-level domains, and country code top-level domains. These services include processing domain name transactions and maintaining the related infrastructure and support systems required to operate the registry. Revenue is primarily transaction-based and is calculated as a fixed fee per financial transaction processed during the month. Because customers simultaneously receive and consume the benefits of the registry services as they are provided, revenue is recognized in the period in which the transactions occur. Service level credits are treated as variable consideration and are recorded as a reduction of revenue in the period in which they are incurred.

Previous wording

Domain related value-added services like digital certifications and hosted email provide our resellers and retail registrant customers with tools and additional functionality to be used in conjunction with domain registrations. All domain related value-added services are considered distinct performance obligations which transfer the promised service to the customer over the contracted term. Fees charged to customers for domain related value-added services are collected at the inception of the contract, and revenue is recognized on a straight-line basis over the contracted term, consistent with the satisfaction of the performance obligations.

Current wording

Domain related value-added services like digital certificates and hosted email provide our resellers and retail registrant customers with tools and additional functionality to be used in conjunction with domain registrations. All domain related value-added services are considered distinct performance obligations which transfer the promised service to the customer over the contracted term. Fees charged to customers for domain related value-added services are collected at the inception of the contract, and revenue is recognized on a straight-line basis over the contracted term, consistent with the satisfaction of the performance obligations.

Previous wording

*Corporate and all other includes revenues from Ting Mobile, corporate overhead functions, and other activities that do not meet the criteria for separate reportable segment disclosure under ASC 280. Ting Mobile is not managed as a separate reportable segment and is included within Corporate and all other for purposes

Current wording

*Corporate and other includes revenues from Ting Mobile, corporate overhead functions, and other activities that do not meet the criteria for separate reportable segment disclosure under ASC 280. Ting Mobile is not managed as a separate reportable segment and is included within Corporate and other for purposes

Previous wording

*Corporate and all other includes revenues from Ting Mobile, corporate overhead functions, and other activities that do not meet the criteria for separate reportable segment disclosure under ASC 280. Ting Mobile is not managed as a separate reportable segment and is included within Corporate and all other for purposes

Current wording

*Corporate and other includes revenues from Ting Mobile, corporate overhead functions, and other activities that do not meet the criteria for separate reportable segment disclosure under ASC 280. Ting Mobile is not managed as a separate reportable segment and is included within Corporate and other for purposes

Previous wording

Total net revenues for the six months ended June 30, 2026 increased by $4.1 million, or 2%, to $197.2 million when compared to the six months ended June 30, 2025. The increase in net revenue was driven by Ting and Mobile Services and eliminations; partially offset by a decline in revenues from Tucows Domains and Wavelo. The Ting segment increased $8.2 million in the current period as a result of new construction revenue in Laguna Woods Village, California, United States, as well as from subscriber growth on our Fiber network across the United States. Mobile Services and eliminations increased by $0.4 million attributable to subscriber growth. The Tucows Domains segment decreased $3.8 million primarily driven by a decline in domain names under management. The Wavelo segment decreased $0.7 million in the current period primarily driven by a less bundled professional services provided to customers in the current period.

Current wording

Total net revenues for the three months ended September 30, 2026 increased by $1.4 million, or 1%, to $100.0 million when compared to the three months ended September 30, 2025. The increase in net revenue was driven by Ting and Mobile Services and eliminations; partially offset by a decline in revenues from Tucows Domains and Wavelo. The Ting segment increased $5.3 million in the current period as a result of new construction revenue in Laguna Woods Village, California, United States, as well as from subscriber growth on our Fiber network across the United States. Mobile Services and eliminations increased by $0.2 million, also attributable to subscriber growth. The Tucows Domains segment decreased $3.9 million primarily driven by a decline in domain names under management, as well as expiry auction revenue. The Wavelo segment decreased $0.1 million in the current period primarily driven by a decrease in subscribers under management.

Previous wording

Total net revenues for the three months ended June 30, 2026 increased by $2.1 million, or 2%, to $100.6 million when compared to the three months ended June 30, 2025. The increase in net revenue was driven by Ting and Mobile Services and eliminations; partially offset by a decline in revenues from Tucows Domains and Wavelo. The Ting segment increased $5.2 million in the current period as a result of new construction revenue in Laguna Woods Village, California, United States, as well as from subscriber growth on our Fiber network across the United States. Mobile Services and eliminations increased by $0.4 million, also attributable to subscriber growth. The Tucows Domains segment decreased $2.6 million primarily driven by a decline in domain names under management. The Wavelo segment decreased $0.9 million in the current period primarily driven by less bundled professional services provided to customers in the current period.

Current wording

Total net revenues for the nine months ended September 30, 2026 increased by $5.6 million, or 2%, to $297.2 million when compared to the nine months ended September 30, 2025. The increase in net revenue was driven by Ting and Mobile Services and eliminations; partially offset by a decline in revenues from Tucows Domains and Wavelo. The Ting segment increased $13.6 million in the current period as a result of new construction revenue in Laguna Woods Village, California, United States, as well as from subscriber growth on our Fiber network across the United States. Mobile Services and eliminations increased by $0.5 million attributable to subscriber growth. The Tucows Domains segment decreased $7.7 million primarily driven by a decline in domain names under management, as well as expiry auction revenue. The Wavelo segment decreased $0.9 million in the current period primarily driven by fewer bundled professional services hours recognized in the current period.

Previous wording

Contract liabilities at June 30, 2026, increased by $2.5 million to $155.4 million from $152.9 million at December 31, 2025. This was primarily driven by Tucows Domains as a result of the increase in current period billings for domain name registrations and service renewals, characteristic of the seasonal renewal pattern we see. This was partially offset by a decrease in Ting driven by the drawdown of previously deferred revenue recognized based on construction progress for the Laguna Woods Village project.

Current wording

Contract liabilities at September 30, 2026, decreased by $2.0 million to $150.9 million from $152.9 million at December 31, 2025. This was primarily driven by Ting with the drawdown of previously deferred revenue recognized based on construction progress for the Laguna Woods Village project. This was partially offset by Tucows Domains due to the seasonal pattern of renewals being billed and deferred in the first half of the year, with the balance being drawn down and reaching its lowest balance towards the end of the year, resulting in a higher Tucows Domains contract liabilities balance at September 30, 2026 compared to December 31, 2025, despite the decline in domain names under management.

Previous wording

During both the three and six months ended June 30, 2026, a customer, EchoStar, within our Wavelo segment accounted for 11% of total net revenues. EchoStar accounted for 12% of total net revenues during both the three and six months ended June 30, 2025. EchoStar accounted for 42% of total accounts receivable at June 30, 2026 and 44% of total accounts receivable at December 31, 2025. Though a significant portion of the Company’s domain services revenues are prepaid by our customers, where the Company does collect receivables, management judgment is required at the time revenue is recorded to assess whether the collection of the resulting receivables is reasonably assured. On an ongoing basis, we assess the ability of our customers to make required payments. Our allowance for doubtful accounts was $1.3 million as of June 30, 2026 and $1.3 million as of December 31, 2025, respectively. Based on this assessment, we expect the carrying amount of our outstanding receivables, net of allowance for doubtful accounts, to be fully collected.

Current wording

Though a significant portion of the Company’s domain services revenues are prepaid by our customers, where the Company does collect receivables, management judgment is required at the time revenue is recorded to assess whether the collection of the resulting receivables is reasonably assured. On an ongoing basis, we assess the ability of our customers to make required payments. Our allowance for doubtful accounts was $0.9 million as of September 30, 2026 and $1.3 million as of December 31, 2025. Based on this assessment, we expect the carrying amount of our outstanding receivables, net of allowance for doubtful accounts, to be fully collected.

Previous wording

Ting generated $21.6 million in net revenue during the three months ended June 30, 2026, up $5.2 million, or 32%, compared to the three months ended June 30, 2025. This growth is driven primarily by new construction revenue and service revenue from Laguna Woods Village, California, United States, as well as from subscriber growth across our Fiber network and the continued growth of available serviceable addresses in Ting towns throughout the United States.

Current wording

Ting generated $22.3 million in net revenue during the three months ended September 30, 2026, up $5.3 million, or 31%, compared to the three months ended September 30, 2025. This growth is driven primarily by new construction revenue and service revenue from Laguna Woods Village, California, United States, as well as from subscriber growth across our Fiber network and the continued growth of available serviceable addresses in Ting towns throughout the United States.

Previous wording

Ting generated $41.0 million in net revenue during the six months ended June 30, 2026, up $8.2 million, or 25%, compared to the six months ended June 30, 2025. This growth is driven primarily by new construction revenue and service revenue from Laguna Woods Village, California, United States, as well as from subscriber growth across our Fiber network and the continued growth of available serviceable addresses in Ting towns throughout the United States.

Current wording

Ting generated $63.3 million in net revenue during the nine months ended September 30, 2026, up $13.6 million, or 27%, compared to the nine months ended September 30, 2025. This growth is driven primarily by new construction revenue and service revenue from Laguna Woods Village, California, United States, as well as from subscriber growth across our Fiber network and the continued growth of available serviceable addresses in Ting towns throughout the United States.

Previous wording

As of June 30, 2026, Ting Internet had access to 126,000 owned infrastructure serviceable addresses, 137,000 partner infrastructure serviceable addresses and 60,500 active subscribers under its management; compared to having access to 132,000 owned infrastructure serviceable addresses, 66,000 partner infrastructure serviceable addresses and 52,000 active subscribers under its management as of June 30, 2025. These figures exclude any changes in serviceable addresses and accounts attributable to the Simply Bits acquisition.

Current wording

As of September 30, 2026, Ting Internet had access to 126,000 owned infrastructure serviceable addresses, 161,400 partner infrastructure serviceable addresses and 64,000 active subscribers under its management; compared to having access to 126,000 owned infrastructure serviceable addresses, 88,000 partner infrastructure serviceable addresses and 52,000 active subscribers under its management as of September 30, 2025. These figures exclude any changes in serviceable addresses and accounts attributable to Simply Bits.

Previous wording

Net revenues from Wavelo Platform Services for the six months ended June 30, 2026, decreased by $0.7 million, or 3%, to $23.3 million as compared to the six months ended June 30, 2025. The decrease in net revenue is driven by less bundled professional services provided to customers in the six months ended June 30, 2025. This decrease was partially offset by incremental revenues from both existing and new customers. Wavelo revenues continue to benefit from our customer's own subscriber growth. Intersegment revenues earned for provision of services on the ISOS and SM platforms between Wavelo and Ting are included in Wavelo's segment revenues for purposes of segment analysis, but are ultimately eliminated upon consolidation. The elimination impact is presented below in Corporate and all other - Mobile Services and Eliminations.

Current wording

Net revenues from Wavelo Platform Services for the three months ended September 30, 2026, decreased by $0.1 million, or 1%, to $11.7 million as compared to the three months ended September 30, 2025. The decrease in net revenue is driven by a decrease in subscribers under management. Intersegment revenues earned for provision of services on the ISOS and SM platforms between Wavelo and Ting are included in Wavelo's segment revenues for purposes of segment analysis, but are ultimately eliminated upon consolidation. The elimination impact is presented below in Corporate and other - Mobile Services and Eliminations.

Previous wording

Net revenues from Wavelo Platform Services for the three months ended June 30, 2026, decreased by $0.9 million, or 7%, to $11.8 million as compared to the three months ended June 30, 2025. The decrease in net revenue is driven by less bundled professional services provided to customers in the current period. This decrease was partially offset by incremental revenues from both existing and new customers. Wavelo revenues continue to benefit from our customer's own subscriber growth. Intersegment revenues earned for provision of services on the ISOS and SM platforms between Wavelo and Ting are included in Wavelo's segment revenues for purposes of segment analysis, but are ultimately eliminated upon consolidation. The elimination impact is presented below in Corporate and all other - Mobile Services and Eliminations.

Current wording

Net revenues from Wavelo Platform Services for the nine months ended September 30, 2026, decreased by $0.9 million, or 2%, to $35.0 million as compared to the nine months ended September 30, 2025. The decrease in net revenue is driven by fewer bundled professional services hours recognized in the current period. This decrease was partially offset by a performance excellence bonus received from EchoStar. Intersegment revenues earned for provision of services on the ISOS and SM platforms between Wavelo and Ting are included in Wavelo's segment revenues for purposes of segment analysis, but are ultimately eliminated upon consolidation. The elimination impact is presented below in Corporate and other - Mobile Services and Eliminations.

Previous wording

Net revenues from Other Professional Services was NIL for both the three months ended June 30, 2026 and June 30, 2025, as well as the six months ended June 30, 2026 and the six months ended June 30, 2025. These revenues relate to the provision of standalone technology services development work for our CSP customers and are non-recurring and often one-time in nature, and expectedly can fluctuate period over period. These revenues depend on the volume (if any) and scope of standalone technology services development work our customers engage us to perform. In the current period, we performed no standalone professional services for our customers.

Current wording

Net revenues from Other Professional Services was nil for both the three months ended September 30, 2026 and September 30, 2025, as well as the nine months ended September 30, 2026 and the nine months ended September 30, 2025. These revenues relate to the provision of standalone technology services development work for our CSP customers and are non-recurring and often one-time in nature, and expectedly can fluctuate period over period. These revenues depend on the volume (if any) and scope of standalone technology services development work our customers engage us to perform. In the current period, we performed no standalone professional services for our customers.

Previous wording

During the three months ended June 30, 2026, Wholesale domain services net revenue decreased by $2.7 million, or 5%, to $48.8 million as compared to the three months ended June 30, 2025. Decreases from Wholesale domain services domain registrations were driven by lower billings due to a decline in domain names under management since June 30, 2025.

Current wording

During the three months ended September 30, 2026, Wholesale domain services net revenue decreased by $3.0 million, or 6%, to $48.9 million as compared to the three months ended September 30, 2025. Decreases from Wholesale domain services domain registrations were driven by lower billings due to a decline in domain names under management since September 30, 2025.

Previous wording

During the six months ended June 30, 2026, Wholesale domain services net revenue decreased by $3.9 million, or 4%, to $97.6 million as compared to the six months ended June 30, 2025. Decreases from Wholesale domain services domain registrations were driven by lower billings due to a decline in domain names under management since June 30, 2025.

Current wording

During the nine months ended September 30, 2026, Wholesale domain services net revenue decreased by $6.9 million, or 5%, to $146.5 million as compared to the nine months ended September 30, 2025. Decreases from Wholesale domain services domain registrations were driven by lower billings due to a decline in domain names under management since September 30, 2025.

Previous wording

As of June 30, 2026, together, the OpenSRS, ENom, EPAG, and Ascio Domain Services manage 21.3 million domain names under the Tucows, ENom, EPAG and Ascio ICANN registrar accreditations and for other registrars under their own accreditations. Domains under management have decreased by 2.7 million since June 30, 2025, driven by some resellers migrating management of their domains in-house.

Current wording

As of September 30, 2026, together, the OpenSRS, ENom, EPAG, and Ascio Domain Services manage 21.3 million domain names under the Tucows, ENom, EPAG and Ascio ICANN registrar accreditations and for other registrars under their own accreditations. Domains under management have decreased by 1.0 million since September 30, 2025, driven by some resellers migrating management of their domains in-house.

Previous wording

During the six months ended June 30, 2026, value-added services net revenue increased by $0.1 million, or 1%, to $11.8 million as compared to the six months ended June 30, 2025. The increase in value-added service revenue was driven by strong expiry auction sales in the current period, along with increased Email revenue, slightly offset by a small decrease in certificates sales and storefront revenue.

Current wording

During the three months ended September 30, 2026, value-added services net revenue decreased by $1.0 million, or 17%, to $5.1 million as compared to the three months ended September 30, 2025. The decrease in value-added service revenue was primarily driven by lower expiry auction revenue, which is historically inconsistent and difficult to predict, as well as storefront revenue reclassified from value-added services to wholesale, and a small decrease in certificate sales.

Previous wording

During the three months ended June 30, 2026, value-added services net revenue increased by $0.5 million, or 9%, to $6.3 million as compared to the three months ended June 30, 2025. The increase in value-added service revenue was driven by strong expiry auction sales in the current period, slightly offset by a small decrease in certificates sales and storefront revenue.

Current wording

During the nine months ended September 30, 2026, value-added services net revenue decreased by $0.9 million, or 5%, to $16.9 million as compared to the nine months ended September 30, 2025. The decrease in value-added service revenue was primarily driven by lower expiry auction revenue, which is historically inconsistent and difficult to predict, as well as a small decrease in certificate sales.

Previous wording

During the three months ended June 30, 2026, retail domain services net revenue decreased by $0.4 million, or 4%, to $9.9 million as compared to the three months ended June 30, 2025. This was driven by a decrease in portfolio sales, slightly offset by Exact hosting acquisition revenue.

Current wording

During the three months ended September 30, 2026, retail domain services net revenue increased by $0.1 million, or 1%, to $9.9 million as compared to the three months ended September 30, 2025. This was driven by an increase in portfolio sales and Exact hosting revenue, offset by a decrease in legacy ENom retail names revenue.