Tucows narrows adjusted per-share loss to $0.52 as Q3 revenue reaches $100.0 million
Key Facts
Tucows reported that consolidated revenue rose 1.4% year over year to $100.0 million in the third quarter of 2026, while its adjusted net loss narrowed to $5.8 million, or $0.52 per adjusted share. The company said in its earnings release that revenue growth was driven by higher Ting revenue. Compared with the third quarter of 2025, the adjusted loss fell from $15.8 million, or $1.42 per share. The company remained loss-making under generally accepted accounting principles, posting a net loss of $10.3 million, or $0.92 per share. GAAP net loss was $23.0 million, or $2.08 per share, in the year-earlier period.
Gross profit improved faster than revenue, rising 20.5% year over year to $29.1 million and increasing 13% from the previous quarter. Tucows attributed the expansion to a significant, non-recurring repricing of a mobile contract after it was renegotiated within the enterprise segment, as well as year-over-year growth at Ting. The company said both factors contributed to the annual and sequential increase in gross profit. This reflects the contribution of a non-recurring contractual factor alongside growth in Ting's business to the improvement in gross profit during the period. The company did not provide a separate figure for each factor's contribution in the release.
Adjusted EBITDA rose 39.8% year over year to $18.6 million in the third quarter and increased 51% from the previous quarter. The company linked the strong performance to the Ting segment and the effect of repricing the mobile contract in the enterprise segment. Growth in this adjusted metric coincided with higher gross profit, while GAAP net income remained negative. The quarterly comparison shows that the improvement in adjusted earnings accelerated from the previous quarter. Chief Executive David Woroch said gross profit and adjusted EBITDA grew year over year, and that the company "remains on track to achieve our 2026 guidance."
By business, Domains and Wavelo services revenue fell to $75.633 million from $79.693 million in the third quarter of 2025. By contrast, Ting revenue rose to $22.303 million from $16.976 million, consistent with the company's identification of Ting as a driver of consolidated revenue growth. Tucows describes its businesses as spanning domain services, communications technologies and fiber infrastructure. Tucows Domains manages more than 21 million domain names through a global network of 32,000 hosts and internet service providers. These figures underscore the scale of the domains business alongside Ting's growth, despite the decline in Domains and Wavelo revenue during the period.
Liquidity declined at quarter-end, with cash and restricted cash totaling $41.0 million, compared with $60.2 million at the end of the second quarter of 2026 and $70.8 million at the end of the third quarter of 2025. The company also used $4.615 million in cash in operating activities during the quarter, after generating positive operating cash flow of $1.534 million a year earlier. Woroch said Tucows retired $149.3 million of Ting preferred units and repaid $6 million of its syndicated credit facility during the quarter. These actions came alongside the reported decline in cash, as the company detailed liquidity and financial obligations in its release. The divergence remained between improving adjusted profit metrics and lower cash and operating cash flow compared with the year-earlier period.
TCX shares closed at $11.92 on Nov. 5, 2026, compared with a close of $12.55 in the previous session. The available price record did not include the stock's session high and low on Nov. 5. In a separate investor follow-up, Tucows invited questions to management through Nov. 12, 2026. The company said management would post responses on Nov. 18, 2026, at about 5 p.m. Eastern time. After the quarter ended, Ting agreed to transfer its lease for the dark fiber network in Colorado Springs, with the transfer expected to be completed on March 31, 2027, and the parent guarantee to be terminated by the end of April 2027 after post-closing obligations are met. Ting said it would continue serving its customers there during the transition, which is to be completed no later than June 30, 2027.