Tucows (NASDAQ:TCX) Announces Earnings Results

Tucows (NASDAQ:TCX) (TSE:TC) released its earnings results on Thursday. The information services provider reported ($1.84) EPS for the quarter, FiscalAI reports. The business had revenue of $100.56 million for the quarter.

Here are the key takeaways from Tucows’ conference call:

• Revenue and gross profit increased year over year to $100.6 million and $25.8 million, respectively, while adjusted EBITDA improved sequentially to $12.3 million. Operating cash flow was positive for the second consecutive quarter, reaching $5.5 million year to date.
• Ting delivered a major operating improvement, with revenue up 32% year over year, subscribers increasing by approximately 8,500, and adjusted EBITDA turning positive at $1.5 million. Growth was supported by subscriber additions, Laguna Woods construction activity, lower network expenses, and cost discipline.
• Tucows Domains continued to generate stable gross profit despite a 4% revenue decline and domains under management falling to 21.3 million after a large reseller moved lower-margin domains in-house. Management said the transition is mostly complete and expects domain volumes to remain stable.
• Wavelo profitability declined materially, with revenue down 7% and adjusted EBITDA falling to $2.8 million from $5.4 million a year earlier, reflecting lower professional-services revenue and continued sales and marketing investment. New customer conversions may remain uneven because of lengthy telecommunications-provider sales cycles.
• Management amended and extended the syndicated credit facility, retired Ting’s preferred equity obligation valued at approximately $150 million including cumulative dividends, and acquired the Ting-owned data center. These actions reduce financial overhang, extend financing flexibility, and support a simpler, more capital-light portfolio, although higher professional fees and legacy mobile losses remain near-term headwinds.

Tucows Price Performance

Tucows stock opened at $15.68 on Friday. The firm has a market capitalization of $174.83 million, a price-to-earnings ratio of -2.08 and a beta of 0.88. The company’s 50 day simple moving average is $12.38 and its 200 day simple moving average is $15.82. Tucows has a fifty-two week low of $8.46 and a fifty-two week high of $25.17.

Analysts Set New Price Targets

Separately, Weiss Ratings raised Tucows from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Wednesday. One analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, the stock presently has an average rating of “Sell”.

Hedge Funds Weigh In On Tucows

A number of hedge funds and other institutional investors have recently made changes to their positions in TCX. BNP Paribas Financial Markets raised its holdings in Tucows by 69.3% during the 3rd quarter. BNP Paribas Financial Markets now owns 1,346 shares of the information services provider’s stock worth $25,000 after buying an additional 551 shares during the period. Rhumbline Advisers lifted its stake in Tucows by 6.2% in the third quarter. Rhumbline Advisers now owns 10,078 shares of the information services provider’s stock valued at $187,000 after buying an additional 590 shares in the last quarter. Quantinno Capital Management LP boosted its holdings in shares of Tucows by 7.2% in the first quarter. Quantinno Capital Management LP now owns 19,867 shares of the information services provider’s stock valued at $341,000 after buying an additional 1,339 shares during the period. Tower Research Capital LLC TRC boosted its holdings in shares of Tucows by 234.8% in the second quarter. Tower Research Capital LLC TRC now owns 2,461 shares of the information services provider’s stock valued at $49,000 after buying an additional 1,726 shares during the period. Finally, Barclays PLC increased its position in shares of Tucows by 21.6% during the fourth quarter. Barclays PLC now owns 11,571 shares of the information services provider’s stock worth $259,000 after acquiring an additional 2,059 shares in the last quarter. 73.64% of the stock is owned by institutional investors.

Tucows Company Profile

Tucows Inc (NASDAQ: TCX) is a diversified internet services company primarily known for its domain name registration and management business. Through its Domain Services division, Tucows operates leading reseller platforms such as OpenSRS and Enom, offering domain registration, SSL certificates, email hosting and related value-added services to web professionals, small businesses and enterprise partners worldwide. The company’s platforms enable thousands of resellers to provide branded internet services to their customers, leveraging Tucows’ infrastructure and expertise in the domain name system.

In addition to domain services, Tucows has built a growing portfolio of consumer-facing internet access offerings under the Ting brand.