7Baggers

Tucows Inc
(NASDAQ:TCX) 

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Tucows Inc. provides network access, domain name registration, email, mobile telephony, and other Internet services in Canada, the United States, and Europe. It operates through two segments, Network Access Services and Domain Services. The Network Access Services segment offers mobile phones and re...

Founded: 1993
Full Time Employees: 633
Sector: Technology
Industry: Software-Infrastructure
TechnologyCanadian
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• Market Cap:
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At a glance:
Bull Thesis:
Bear Thesis:
Main Competitors:
Moat:
Income Statements:
Quarterly
Annual
    Unit: USD2025-12-31 2025-09-30 2025-06-30 2025-03-31 2024-12-31 
         
      net revenues
    		98,670,000 98,558,000 98,463,000 94,609,000  
      cost of revenues
    		     
      direct cost of revenues
    		58,533,000 57,830,000 59,069,000 55,161,000  
      network, other costs
    		5,544,000 5,855,000 6,458,000 5,175,000  
      network, depreciation and amortization
    		10,461,000 10,692,000 10,826,000 10,742,000  
      total cost of revenues
    		74,538,000 74,377,000 76,353,000 71,078,000  
      gross profit
    		24,132,000 24,181,000 22,110,000 23,531,000  
      yoy
    		     
      qoq
    		-0.20% 9.37% -6.04%   
      expenses:
    		     
      sales and marketing
    		13,563,000 11,882,000 11,945,000 10,991,000  
      technical operations and development
    		4,380,000 4,682,000 4,344,000 4,407,000  
      general and administrative
    		14,323,000 9,650,000 9,660,000 9,242,000  
      gain on disposition of property and equipment
    		-129,000 -3,965,000 -1,788,000   
      depreciation and amortization
    		989,000 785,000 828,000 924,000  
      impairment of property and equipment
    		 10,724,000    
      total expenses
    		33,126,000 33,758,000 24,989,000 25,564,000  
      income from operations
    		-8,994,000 -9,577,000 -2,879,000 -2,033,000  
      yoy
    		     
      qoq
    		-6.09% 232.65% 41.61%   
      other income
    		2,725,000 2,915,000 3,128,000 2,679,000  
      interest expense
    		-14,139,000 -13,901,000 -13,621,000 -13,613,000  
      total other income
    		-11,414,000 -10,986,000 -10,493,000 -10,934,000  
      income before provision for income taxes
    		-20,408,000 -20,563,000 -13,372,000 -12,967,000  
      provision (recovery) for income taxes
    		1,622,000 2,456,000 2,265,000 2,166,000  
      net loss for the period
    		-22,030,000 -23,019,000 -15,637,000 -15,133,000  
      other comprehensive income, net of tax
    		     
      unrealized income on hedging activities
    		150,000 -916,000 635,000 42,000  
      net amount reclassified to earnings
    		224,000 123,000 91,000 558,000  
      other comprehensive income 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.
    		133,250 -793,000    
      comprehensive loss, for the period
    		-21,656,000 -23,812,000 -14,911,000 -14,533,000  
      basic and diluted loss per common share
    		-1,980 -2,080 -1,410 -1,370  
      shares used in computing basic and diluted loss per common share
    		11,983,000 11,079,486,000 11,060,818,000 11,032,086,000  
      other comprehensive income 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.
    		  726,000   
      other comprehensive income net of tax (expense) recovery of (196) and 413 for the three months ended march 31, 2025 and march 31, 2024, respectively
    		   600,000  
    Balance Sheets:
    Quarterly
    Annual
      Unit: USD2025-12-31 2025-09-30 2025-06-30 2025-03-31 2024-12-31 
           
        assets
      		     
        current assets:
      		     
        cash and cash equivalents
      		46,759,000 54,078,000 52,020,000 38,076,000 56,903,000 
        restricted cash
      		5,315,000 4,618,000 4,640,000 5,116,000 4,628,000 
        accounts receivable
      		24,494,000 27,981,000 24,224,000 24,120,000 20,878,000 
        deferred costs of fulfillment, current portion
      		97,151,000 99,643,000 102,936,000 105,081,000 101,467,000 
        prepaid expenses and other
      		29,375,000 22,621,000 24,003,000 22,105,000  
        total current assets
      		203,094,000 208,941,000 211,707,000 194,498,000 205,382,000 
        deferred costs of fulfillment, long-term portion
      		15,883,000 16,677,000 16,025,000 15,911,000 15,508,000 
        secured notes reserve funds
      		12,171,000 12,060,000 11,942,000 11,824,000 11,707,000 
        property and equipment
      		281,955,000 287,960,000 305,331,000 322,396,000 331,049,000 
        right of use lease asset
      		63,315,000 54,413,000 40,951,000 39,193,000  
        intangible assets
      		19,703,000 20,978,000 21,887,000 23,550,000 24,755,000 
        goodwill
      		130,410,000 130,410,000 130,410,000 130,410,000 130,410,000 
        other assets
      		4,378,000 4,052,000 3,929,000 4,125,000  
        total assets
      		730,909,000 735,491,000 742,182,000 741,907,000 758,796,000 
        liabilities and stockholders' equity
      		     
        current liabilities:
      		     
        accounts payable and accrued liabilities
      		35,272,000 32,117,000 35,772,000 28,880,000  
        derivative instrument liability
      		75,000 568,000  479,000 1,270,000 
        operating lease liability, current portion
      		5,771,000 5,456,000 5,080,000 5,050,000 5,150,000 
        contract liabilities, current portion
      		131,581,000 137,152,000 141,243,000 140,689,000 135,649,000 
        redeemable preferred units - no par value, 33,333,333 units authorized; 15,243,600 units issued and outstanding as of december 31, 2025, current portion
      		136,963,000     
        other current liabilities
      		20,765,000 19,256,000 18,529,000 17,876,000  
        total current liabilities
      		330,427,000 194,549,000 200,624,000 192,974,000 199,851,000 
        contract liabilities, long-term portion
      		21,354,000 21,512,000 21,462,000 21,653,000 21,155,000 
        operating lease liability, long-term portion
      		57,823,000 48,701,000 34,762,000 29,675,000 25,899,000 
        syndicated revolver
      		189,531,000 189,420,000 192,206,000 192,078,000 194,426,000 
        notes payable
      		291,646,000 290,642,000 289,637,000 288,639,000 287,646,000 
        redeemable preferred units - no par value, 33,333,333 units authorized; 15,243,600 units issued and outstanding as of december 31, 2024, long-term portion
      		     
        other long-term liability
      		1,366,000     
        deferred tax liability
      		2,962,000 2,963,000 2,965,000 2,963,000 2,963,000 
        stockholders' deficit
      		     
        common stock - no par value, 250,000,000 shares authorized; 11,111,453 shares issued and outstanding as of december 31, 2025 and 11,014,655 shares issued and outstanding as of december 31, 2024
      		38,308,000     
        additional paid-in capital
      		23,526,000 22,412,000 21,451,000 20,364,000 19,241,000 
        accumulated deficit
      		-225,977,000 -203,947,000 -180,928,000 -165,291,000 -150,158,000 
        accumulated other comprehensive loss
      		-57,000 -431,000 362,000 -364,000  
        total stockholders' deficit
      		-164,200,000 -144,059,000 -121,686,000 -108,259,000  
        total liabilities and stockholders' deficit
      		730,909,000 735,491,000 742,182,000 741,907,000  
        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, 2024
      		 131,763,000    
        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, 2024
      		 37,907,000    
        derivative instrument asset
      		  478,000   
        assets held for sale
      		  3,406,000   
        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
      		  122,212,000   
        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
      		  37,429,000   
        redeemable preferred units - no par value, 33,333,333 units authorized; 15,243,600 units issued and outstanding as of march 31, 2025 and december 31, 2024
      		   122,184,000  
        common stock - no par value, 250,000,000 shares authorized; 11,034,947 shares issued and outstanding as of march 31, 2025 and 11,014,655 shares issued and outstanding as of december 31, 2024
      		   37,032,000  
        contract asset
      		     
        inventory
      		    3,975,000 
        prepaid expenses and deposits
      		    17,314,000 
        income taxes recoverable
      		    217,000 
        investments
      		    2,012,000 
        right of use assets
      		    35,640,000 
        contract costs
      		    2,333,000 
        accounts payable
      		    9,009,000 
        accrued liabilities
      		    31,227,000 
        customer deposits
      		    16,660,000 
        accreditation fees payable
      		    623,000 
        income taxes payable
      		    263,000 
        redeemable preferred units - no par value, 33,333,333 units authorized; 15,243,600 units issued and outstanding as of december 31, 2024 and december 31, 2023
      		    122,156,000 
        stockholders' equity
      		     
        common stock - no par value, 250,000,000 shares authorized; 11,014,655 shares issued and outstanding as of december 31, 2024 and 10,903,405 shares issued and outstanding as of december 31, 2023
      		    36,581,000 
        accumulated other comprehensive income
      		    -964,000 
        total stockholders' equity
      		    -95,300,000 
        total liabilities and stockholders' equity
      		    758,796,000 
      Cashflow Statements:
      Quarterly
      Annual
        Unit: USD2025-12-31 2025-09-30 2025-06-30 2025-03-31 
            
          cash from:
        		    
          operating activities:
        		    
          net loss for the period
        		-52,800,000 -7,382,000 -504,000 -15,133,000 
          adjustments to reconcile net income to net cash from operating activities:
        		    
          depreciation and amortization
        		34,770,000 -177,000 -12,000 11,666,000 
          amortization of debt discount and issuance costs
        		3,489,000 -1,000 7,000 1,167,000 
          gain on disposal of assets
        		    
          impairment of property and equipment
        		648,000    
          deferred income taxes
        		-541,000 483,000 -40,000 -191,000 
          accretion of redeemable preferred units
        		5,105,000    
          loss on debt extinguishment
        		    
          write off of debt discount and issuance cost
        		    
          loss on change in the fair value of forward contracts
        		    
          amortization of discontinued cash flow hedge
        		    
          stock-based compensation expense
        		5,752,000 1,000 -119,000 1,505,000 
          change in non-cash operating working capital
        		    
          accounts receivable
        		141,000 -3,653,000 3,138,000 -3,242,000 
          prepaid expenses and deposits
        		-8,913,000 4,951,000 -3,973,000 875,000 
          deferred costs of fulfillment
        		1,300,000 610,000 6,048,000 -4,017,000 
          accounts payable and accrued liabilities
        		    
          contract liabilities
        		172,000 -4,404,000 -5,175,000 5,538,000 
          other operating assets and liabilities
        		6,479,000 -1,274,000 1,059,000 1,203,000 
          net cash from operating activities
        		-7,292,000 -5,032,000 17,817,000 -11,251,000 
          capital expenditures
        		-13,263,000 -383,000 1,969,000 -5,437,000 
          free cash flows
        		-20,555,000 -5,415,000 19,786,000 -16,688,000 
          financing activities:
        		    
          proceeds received on exercise of stock options
        		    
          proceeds from issuance of notes payable
        		    
          redeemable preferred units redemption
        		    
          proceeds from redeemable preferred units
        		    
          deferred notes payable financing costs
        		    
          deferred preferred financing costs
        		    
          contingent payments for acquisitions
        		    
          proceeds received on syndicated revolver
        		    
          repayment of syndicated revolver
        		-2,500,000   -2,500,000 
          payment of syndicated revolver costs
        		0    
          net cash from financing activities
        		-2,469,000 -2,954,000 2,531,000 -2,500,000 
          investing activities:
        		    
          proceeds on disposal of property and equipment and intangible asset
        		12,090,000    
          additions to property and equipment
        		-13,263,000 -383,000 1,969,000 -5,437,000 
          acquisition of intangible assets
        		-213,000 220,000   
          net cash from investing activities
        		-1,386,000 -3,446,000 11,460,000 -4,471,000 
          increase in cash and cash equivalents, restricted cash, and restricted cash equivalents
        		-11,147,000 -11,432,000 31,808,000 -18,222,000 
          cash and cash equivalents, restricted cash, and restricted cash equivalents beginning of year
        		    
          cash and cash equivalents, restricted cash, and restricted cash equivalents end of year
        		    
          reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents within the consolidated balance sheets to the amounts shown in the consolidated statements of cash flows above:
        		    
          cash and cash equivalents
        		-7,319,000 2,058,000 13,944,000 38,076,000 
          restricted cash included in funds held by trustee
        		697,000 -22,000 -476,000 5,116,000 
          restricted cash included in secured notes reserve funds
        		111,000 118,000 118,000 11,824,000 
          total cash and cash equivalents, restricted cash, and restricted cash equivalents end of year
        		    
          supplemental cash flow information:
        		    
          interest paid
        		35,314,000 -11,000 -9,857,000 18,332,000 
          income taxes paid
        		4,511,000 -952,000 793,000 1,299,000 
          supplementary disclosure of non-cash investing and financing activities:
        		    
          property and equipment acquired during the period not yet paid for
        		359,000 255,000 175,000 1,435,000 
          loss on disposal of assets
        		    
          accounts payable & accrued liabilities
        		 -10,457,000 17,388,000 -10,622,000 
          cash and cash equivalents, restricted cash, and restricted cash equivalents beginning of period
        		 13,586,000 -18,222,000 73,238,000 
          cash and cash equivalents, restricted cash, and restricted cash equivalents end of period
        		 2,154,000 13,586,000 55,016,000 
          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:
        		    
          total cash and cash equivalents, restricted cash, and restricted cash equivalents end of period
        		 2,154,000 13,586,000 55,016,000 
          proceeds on disposal of property and equipment
        		  9,704,000 966,000 
          depreciation of property and equipment
        		    
          amortization of intangible assets
        		    
          net amortization of contract costs
        		    
          accretion of contingent consideration
        		    
          excess tax benefits on share-based compensation expense
        		    
          net right of use assets/operating lease liability
        		    
          disposal of domain names
        		    
          write-off of debt discount and issuance cost
        		    
          loss on disposal of property and equipment
        		    
          remeasurement of contingent consideration
        		    
          undistributed earnings of equity method investee
        		    
          change in non-cash operating working capital:
        		    
          contract assets
        		    
          inventory
        		    
          income taxes recoverable
        		    
          accounts payable
        		    
          accrued liabilities
        		    
          customer deposits
        		    
          accreditation fees payable
        		    
          contingent consideration for acquisitions
        		    
          acquisition of other intangible assets