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Tucows
(NASDAQ:TCX)
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Rating:45Neutral
Price Target:
$9.00
▼(-0.11% Downside)
Action:Reiterated
Date:08/18/26
The score is held down primarily by weak financial quality—ongoing losses, negative/fragile equity and very high leverage, plus still-negative free cash flow despite improvement. Technicals also point to a sustained downtrend with limited momentum support. The latest earnings call adds some support due to improved operating cash flow and operational progress (Radix migration), but near-term profitability pressure and Ting/legacy obligations remain meaningful risks. Valuation is only modestly supportive given the negative P/E and no dividend data.
Positive Factors
Ting Fiber Growth
Ting's accelerating revenue and improving EBITDA loss indicate stronger subscriber and construction activity. If growth continues in established fiber markets, the installed base can support recurring revenue and better operating leverage.
Negative Factors
Excessive Leverage
The very small equity cushion leaves Tucows highly sensitive to operating setbacks, interest costs and asset-value changes. High leverage can constrain investment, limit strategic options and make future losses harder to absorb.
Read all positive and negative factors
Positive Factors
Negative Factors
Ting Fiber Growth
Ting's accelerating revenue and improving EBITDA loss indicate stronger subscriber and construction activity. If growth continues in established fiber markets, the installed base can support recurring revenue and better operating leverage.
Read all positive factors
Tucows Key Performance Indicators (KPIs)
Any
Gross Profit by Segment
Shows the profit left after direct costs for each business line, revealing which parts of Tucows are truly profitable and which require heavy subsidies or scale to improve margins.
Shows the profit left after direct costs for each business line, revealing which parts of Tucows are truly profitable and which require heavy subsidies or scale to improve margins.
Data provided by:
The Fly
The FlyTucows (TCX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$111.49M
Dividend YieldN/A
Average Volume (3M)24.53K
Price to Earnings (P/E)―
Beta (1Y)1.14
Revenue Growth4.22%
EPS Growth13.24%
CountryUS
Employees759
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-7.53
Shares Outstanding11,182,112
10 Day Avg. Volume37,560
30 Day Avg. Volume24,532
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)-1.51
Price to Sales (P/S)0.64
P/FCF Ratio-10.85
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)$495.00M
Tucows Business Overview & Revenue Model
Company Description
Tucows Inc. is an international technology company that delivers a broad spectrum of internet-related services, including network connectivity, domain name registration, email solutions, and mobile communication, serving customers across Canada, t...
How the Company Makes Money
Tucows makes money mainly through recurring subscription and usage-based revenue across telecom and software operations. (1) Ting (Fiber Internet): Ting generates revenue from monthly broadband subscriptions paid by residential and business custom...
Tucows Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call presents a generally positive operational and financial trajectory: consolidated revenue and gross profit grew, the company returned to positive operating cash flow, Domains remained a reliable cash generator, Ting showed accelerating revenue and notable improvement in margins and adjusted EBITDA, and the Radix registry migration was completed. Offsetting these positives are meaningful near-term profitability pressures including a 15% decline in consolidated adjusted EBITDA, wider net losses driven by professional fees and legacy mobile obligations, increased operating expenses (11%), Wavelo margin declines due to deliberate go-to-market investment, and significant Ting net debt and a Q1 cash outflow related to ABS interest. Management emphasizes disciplined capital allocation, covenant compliance, and active strategic work on Ting as mitigants. Overall, the positives around cash flow, core Domains performance, and Ting momentum outweigh the near-term headwinds, but material risks remain from legacy mobile liabilities and Ting leverage.Positive Updates
Consolidated Revenue Growth
Consolidated net revenue increased 2% year-over-year to $96.7 million in Q1 2026 (from $94.6 million), driven by strong revenue gains from Ting Fiber.
Negative Updates
Adjusted EBITDA Decline
Consolidated adjusted EBITDA decreased 15% year-over-year to $11.7 million in Q1 2026 from $13.7 million, primarily due to gross margin decreases in the Corporate segment and investments in Wavelo's go-to-market efforts.
Read all updates
Q1-2026 Updates
Positive
Negative
Consolidated Revenue Growth
Consolidated net revenue increased 2% year-over-year to $96.7 million in Q1 2026 (from $94.6 million), driven by strong revenue gains from Ting Fiber.
Read all positive updates
Company Guidance
Management's guidance was cautious but constructive: they expect the Radix registry migration to deliver its full quarterly benefit in Q2, will continue to prioritize generating free cash flow and improving capital flexibility, are actively progressing Ting’s strategic process (no substantive update yet), and plan to normalize Wavelo go‑to‑market investments as pipeline converts to bookings; they also noted corporate mobile obligations and professional fees weighed on Q1 but are not expected to be indefinite. Key Q1 metrics called out included consolidated revenue $96.7M (+2%), consolidated gross profit $24.1M (+2.5%), adjusted EBITDA $11.7M (‑15%), GAAP net loss $18.1M or $1.63/sh and adjusted net loss $16.9M or $1.51/sh; segment results: Domains revenue $64.1M (‑2%), Domains gross profit $18.6M (+2%) and adjusted EBITDA $11.6M (wholesale $54.3M, ‑3%; Domain Services gross profit $10.0M, +4%; value‑added services $5.1M, ‑5%; retail revenue $9.8M, +5%; retail gross margin $5.6M, +8%); Wavelo revenue $11.6M, gross profit $7.0M (from $7.8M) and adjusted EBITDA $3.6M (from $4.4M) reflecting investment; Ting revenue $19.4M (+19%), gross profit $1.7M and adjusted EBITDA loss of $0.4M (improved from $0.8M loss); cash from operations $3.5M (vs ‑$11.3M prior), cash: Ting $34.6M and non‑Ting cash $27.4M, capex Ting $3.6M and Domains/Wavelo $1.9M, corporate net debt excl. Ting $162.2M, Ting net debt $417.8M, syndicated debt $189.6M (expires Sept 2027), with covenant leverage 3.29x and interest coverage 4.12x.Tucows Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
22
Negative
Cash Flow
30
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 394.44M | 390.30M | 362.27M | 339.34M | 321.14M | 304.34M |
| Gross Profit | 98.23M | 90.19M | 83.03M | 108.86M | 78.25M | 78.29M |
| EBITDA | 46.62M | 230.34M | -1.82M | -12.19M | 26.38M | 39.88M |
| Net Income | -83.63M | -75.82M | -109.86M | -96.20M | -27.57M | 3.36M |
Balance Sheet | ||||||
| Total Assets | 727.70M | 730.91M | 758.80M | 798.43M | 664.75M | 539.60M |
| Cash, Cash Equivalents and Short-Term Investments | 44.16M | 46.76M | 56.90M | 92.69M | 23.50M | 9.11M |
| Total Debt | 712.24M | 544.77M | 513.12M | 456.90M | 256.01M | 205.75M |
| Total Liabilities | 716.76M | 895.11M | 854.10M | 788.55M | 568.09M | 424.50M |
| Stockholders Equity | -200.77M | -164.20M | -95.30M | 9.88M | 96.66M | 115.09M |
Cash Flow | ||||||
| Free Cash Flow | -14.40M | -22.87M | -76.20M | -97.35M | -117.62M | -44.31M |
| Operating Cash Flow | 4.39M | -5.76M | -19.75M | -4.77M | 19.88M | 29.64M |
| Investing Cash Flow | -9.86M | 2.16M | -56.49M | -92.58M | -137.49M | -101.98M |
| Financing Cash Flow | -2.92M | -5.39M | 44.50M | 178.84M | 132.01M | 73.14M |
Tucows Technical Analysis
Negative
9.01
Price Trends
11.56
Negative
13.44
Negative
16.87
Negative
Market Momentum
-0.70
Positive
43.57
Neutral
19.90
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TCX, the sentiment is Negative. The current price of 9.01 is below the 20-day moving average (MA) of 11.83, below the 50-day MA of 11.56, and below the 200-day MA of 16.87, indicating a bearish trend. The MACD of -0.70 indicates Positive momentum. The RSI at 43.57 is Neutral, neither overbought nor oversold. The STOCH value of 19.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TCX.
Tucows Risk Analysis
Tucows disclosed 22 risk factors in its most recent earnings report. Tucows reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Tucows Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $30.23B | 98.36 | 4.26% | ― | 11.22% | 74.46% | |
77 Outperform | $12.28B | 14.37 | 660.95% | ― | 7.50% | 18.20% | |
75 Outperform | $26.61B | 31.63 | -39.21% | 0.94% | 6.86% | 10.11% | |
73 Outperform | $35.44B | -1,242.34 | -0.99% | ― | 23.64% | 68.36% | |
71 Outperform | $30.29B | -383.81 | -3.71% | ― | 24.61% | -91.58% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
45 Neutral | $111.49M | -1.34 | 48.45% | ― | 4.22% | 13.24% |
* Technology Sector Average
TCX
Tucows
10.12
-8.16
-44.64%
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GDDY
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OKTA
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MDB
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446.62
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41.51%
ZS
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184.23
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Tucows Corporate Events
Business Operations and StrategyLegal ProceedingsM&A TransactionsPrivate Placements and Financing
Tucows amends credit facility, resolves Ting Fiber disputes
Positive
Jul 30, 2026
On July 27, 2026, Tucows and its subsidiaries executed a third amendment to their syndicated credit agreement led by Bank of Montreal, extending most lender commitments from September 22, 2027 to July 27, 2029 and maintaining key pricing and finan...
Executive/Board ChangesShareholder Meetings
Tucows Shareholders Reelect Board and Back Executive Pay
Positive
Jun 4, 2026
At Tucows Inc.’s Annual Meeting of Shareholders held on June 2, 2026, investors elected all nominated directors to one-year terms expiring at the 2027 meeting, reaffirming the current board’s oversight of the company. Shareholders also...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.