TUCOWS INC /PA/

For the period ended Jun 30, 2025. Filed Aug 7, 2025.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Jun 30, 2025 · Filed Aug 7, 2025

TCX$13.32-1.5%Stored close · as of Nov 10, 2026

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Contents

Item 1. Condensed Consolidated Financial Statements

Tucows Inc.

Condensed Consolidated Balance Sheets

(Dollar amounts in thousands of U.S. dollars)

	June 30,	December 31,
	2025	2024
Assets
Current assets:
Cash and cash equivalents	$52,020	$56,903
Restricted cash	4,640	4,628
Accounts receivable, net of expected credit losses of $1,128 as of June 30, 2025 and $923 as of December 31, 2024	24,224	20,878
Derivative instrument asset	478	-
Deferred costs of fulfillment, current portion	102,936	101,467
Assets held for sale	3,406	-
Prepaid expenses and other	24,003	21,506
Total current assets	211,707	205,382
Deferred costs of fulfillment, long-term portion	16,025	15,508
Secured notes reserve funds	11,942	11,707
Property and equipment, net	305,331	331,049
Right of use lease asset	40,951	35,640
Intangible assets	21,887	24,755
Goodwill	130,410	130,410
Other assets	3,929	4,345
Total assets	$742,182	$758,796
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued liabilities	$35,772	$40,236
Derivative instrument liability	-	1,270
Operating lease liability, current portion	5,080	5,150
Contract liabilities, current portion	141,243	135,649
Other current liabilities	18,529	17,546
Total current liabilities	200,624	199,851
Contract liabilities, long-term portion	21,462	21,155
Operating lease liability, long-term portion	34,762	25,899
Syndicated revolver	192,206	194,426
Notes payable	289,637	287,646
Redeemable preferred units - no par value, 33,333,333 units authorized; 15,243,600 units issued and outstanding as of June 30, 2025 and December 31, 2024	122,212	122,156
Deferred tax liability	2,965	2,963
Stockholders' deficit
Common stock - no par value, 250,000,000 shares authorized; 11,065,641 shares issued and outstanding as of June 30, 2025 and 11,014,655 shares issued and outstanding as of December 31, 2024	37,429	36,581
Additional paid-in capital	21,451	19,241
Accumulated deficit	(180,928)	(150,158)
Accumulated other comprehensive loss	362	(964)
Total stockholders' deficit	(121,686)	(95,300)
Total liabilities and stockholders' deficit	$742,182	$758,796

Tucows Inc.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(Dollar amounts in thousands of U.S. dollars, except per share amounts)

	For the Three Months Ended June 30,		For the Six Months Ended June 30,
	2025	2024	2025	2024
Net revenues	$98,463	$89,423	$193,072	$176,880
Cost of revenues
Direct cost of revenues	59,069	51,328	114,230	103,122
Network, other costs	6,458	6,862	11,633	13,979
Network, depreciation and amortization	10,826	10,423	21,568	20,653
Total cost of revenues	76,353	68,613	147,431	137,754
Gross profit	22,110	20,810	45,641	39,126
Expenses:
Sales and marketing	11,945	14,746	22,936	33,311
Technical operations and development	4,344	4,522	8,751	9,538
General and administrative	9,660	9,188	18,902	19,006
Gain on disposition of property and equipment	(1,788)	-	(1,788)	-
Depreciation and amortization	828	951	1,752	2,387
Total expenses	24,989	29,407	50,553	64,242
Loss from operations	(2,879)	(8,597)	(4,912)	(25,116)
Other income (expenses):
Interest expense, net	(13,621)	(12,553)	(27,234)	(24,432)
Other income, net	3,128	3,766	5,807	7,454
Total other income (expenses)	(10,493)	(8,787)	(21,427)	(16,978)
Loss before provision for income taxes	(13,372)	(17,384)	(26,339)	(42,094)
Provision (recovery) for income taxes	2,265	1,220	4,431	2,994
Net loss for the period	(15,637)	(18,604)	(30,770)	(45,088)
Other comprehensive income (loss), net of tax
Unrealized income (loss) on hedging activities	635	(304)	677	(1,430)
Net amount reclassified to earnings	91	-	649	(169)
Other comprehensive income (loss) net of tax expense (recovery) of $231 and ($97) for the three months ended June 30, 2025 and June 30, 2024, and $427 and ($510) for the six months ended June 30, 2025 and June 30, 2024.	726	(304)	1,326	(1,599)
Comprehensive loss, for the period	$(14,911)	$(18,908)	$(29,444)	$(46,687)
Basic and diluted loss per common share	$(1.41)	$(1.70)	$(2.79)	$(4.12)
Shares used in computing basic and diluted loss per common share	11,060,818	10,954,596	11,046,531	10,939,098

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