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Midas Edge

TUCOWS INC /PA/

For the period ended Sep 30, 2025. Filed Nov 6, 2025.

View on SEC.gov

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.

Sep 30, 2025 · Filed Nov 6, 2025

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

Extracted filing text, with the paragraph anchors used by the comparison.

See the whole filing, with its images and exhibits
Contents

Item 1. Condensed Consolidated Financial Statements

Condensed Consolidated Balance Sheets

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

September 30,December 31,
20252024
Assets
Current assets:
Cash and cash equivalents$54,078$56,903
Restricted cash4,6184,628
Accounts receivable, net of expected credit losses of $1,045 as of September 30, 2025 and $923 as of December 31, 202427,98120,878
Deferred costs of fulfillment, current portion99,643101,467
Prepaid expenses and other22,62121,506
Total current assets208,941205,382
Deferred costs of fulfillment, long-term portion16,67715,508
Secured notes reserve funds12,06011,707
Property and equipment, net287,960331,049
Right of use lease asset54,41335,640
Intangible assets20,97824,755
Goodwill130,410130,410
Other assets4,0524,345
Total assets$735,491$758,796
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued liabilities$32,117$40,236
Derivative instrument liability5681,270
Operating lease liability, current portion5,4565,150
Contract liabilities, current portion137,152135,649
Other current liabilities19,25617,546
Total current liabilities194,549199,851
Contract liabilities, long-term portion21,51221,155
Operating lease liability, long-term portion48,70125,899
Syndicated revolver189,420194,426
Notes payable290,642287,646
Redeemable preferred units - no par value, 33,333,333 units authorized; 15,243,600 units issued and outstanding as of September 30, 2025 and December 31, 2024131,763122,156
Deferred tax liability2,9632,963
Stockholders' deficit
Common stock - no par value, 250,000,000 shares authorized; 11,089,663 shares issued and outstanding as of September 30, 2025 and 11,014,655 shares issued and outstanding as of December 31, 202437,90736,581
Additional paid-in capital22,41219,241
Accumulated deficit(203,947)(150,158)
Accumulated other comprehensive loss(431)(964)
Total stockholders' deficit(144,059)(95,300)
Total liabilities and stockholders' deficit$735,491$758,796

See accompanying notes to condensed consolidated financial statements

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 September 30,For the Nine Months Ended September 30,
2025202420252024
Net revenues$98,558$92,297$291,630$269,177
Cost of revenues
Direct cost of revenues57,83052,613172,060155,735
Network, other costs5,8557,71617,48821,695
Network, depreciation and amortization10,6929,78032,26030,433
Total cost of revenues74,37770,109221,808207,863
Gross profit24,18122,18869,82261,314
Expenses:
Sales and marketing11,88215,18034,81848,491
Technical operations and development4,6824,61513,43314,153
General and administrative9,65011,48528,55230,491
Gain on disposition of property and equipment(3,965)-(5,753)-
Depreciation and amortization7859552,5373,342
Impairment of property and equipment10,724-10,724-
Total expenses33,75832,23584,31196,477
Loss from operations(9,577)(10,047)(14,489)(35,163)
Other income (expenses):
Interest expense, net(13,901)(13,095)(41,135)(37,527)
Other income, net2,9153,9198,72211,373
Total other income (expenses)(10,986)(9,176)(32,413)(26,154)
Loss before provision for income taxes(20,563)(19,223)(46,902)(61,317)
Provision (recovery) for income taxes2,4563,0746,8876,068
Net loss for the period(23,019)(22,297)(53,789)(67,385)
Other comprehensive income (loss), net of tax
Unrealized income (loss) on hedging activities(916)415(239)(1,015)
Net amount reclassified to earnings123(7)772(176)
Other comprehensive income (loss) net of tax expense (recovery) of ($253) and $134 for the three months ended September 30, 2025 and September 30, 2024, and $174 and ($376) for the nine months ended September 30, 2025 and September 30, 2024.(793)408533(1,191)
Comprehensive loss, for the period$(23,812)$(21,889)$(53,256)$(68,576)
Basic and diluted loss per common share$(2.08)$(2.03)$(4.87)$(6.15)
Shares used in computing basic and diluted loss per common share11,079,48610,982,82011,053,72510,953,778

See accompanying notes to the condensed consolidated financial statements

Condensed Consolidated Statements of Cash Flows

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

For the Three Months Ended September 30,For the Nine Months Ended September 30,
2025202420252024
Cash provided by:
Operating activities:
Net loss for the period$(23,019)$(22,297)$(53,789)$(67,385)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization11,47710,73534,79733,775
Amortization of debt discount and issuance costs1,1731,1593,5143,301
Loss (gain) on disposal of assets(3,965)-(5,753)-
Impairment of property and equipment10,88585211,524905
Deferred income taxes (recovery)252(129)(170)350
Accretion of redeemable preferred units9,3511,8639,3519,758
Stock-based compensation expense1,3871,8084,2785,383
Change in non-cash operating working capital
Accounts receivable(3,757)(927)(7,103)3,314
Prepaid expenses and deposits1,8534,693(370)1,312
Deferred costs of fulfillment2,641(212)655(5,161)
Accounts payable & accrued liabilities(3,691)(3,373)(7,547)(9,744)
Contract liabilities(4,041)4551,8607,946
Other operating assets and liabilities9888095,6021,296
Net cash provided by (used in) operating activities1,534(4,564)(3,151)(14,950)
Financing activities:
Proceeds received on exercise of stock options--31-
Proceeds from issuance of notes payable-62,991-62,991
Deferred notes payable financing costs-(2,011)-(2,011)
Repayment of syndicated revolver(2,500)(2,500)(5,000)(14,500)
Payment of syndicated revolver costs(423)(29)(423)(48)
Net cash provided by (used in) financing activities(2,923)58,451(5,392)46,432
Investing activities:
Proceeds on disposal of property and equipment and intangible asset7,387-19,023-
Additions to property and equipment(3,851)(14,516)(12,756)(44,793)
Acquisition of intangible assets7(478)(206)(576)
Net cash provided by (used in) investing activities3,543(14,994)6,061(45,369)
Increase (decrease) in cash and cash equivalents, restricted cash, and restricted cash equivalents2,15438,893(2,482)(13,887)
Cash and cash equivalents, restricted cash, and restricted cash equivalents beginning of period68,60252,19873,238104,978
Cash and cash equivalents, restricted cash, and restricted cash equivalents end of period$70,756$91,091$70,756$91,091
Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents within the interim consolidated balance sheets to the amounts shown in the interim consolidated statements of cash flows above:
Cash and cash equivalents54,07875,20954,07875,209
Restricted cash included in funds held by trustee4,6184,3034,6184,303
Restricted cash included in secured notes reserve funds12,06011,57912,06011,579
Total cash and cash equivalents, restricted cash, and restricted cash equivalents end of period$70,756$91,091$70,756$91,091
Supplemental cash flow information:
Interest paid$8,464$11,352$35,271$28,856
Income taxes paid, net$1,140$2,451$4,531$5,278
Supplementary disclosure of non-cash investing and financing activities:
Property and equipment acquired during the period not yet paid for$1,865$5,907$1,865$5,907

See accompanying notes to the condensed consolidated financial statements

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