$TCX

TUCOWS INC /PA/

CIK:0000909494|SEC Filings

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Net revenues	$ 100,556	$ 98,463	$ 197,213	$ 193,072
Cost of revenues:
Direct cost of revenues	58,272	59,069	115,156	114,230
Network, other costs	6,239	6,458	12,107	11,633
Network, depreciation and amortization	10,261	10,826	20,036	21,568
Total cost of revenues	74,772	76,353	147,299	147,431
Gross profit	25,784	22,110	49,914	45,641
Expenses:
Sales and marketing	12,553	11,945	24,656	22,936
Technical operations and development	4,860	4,344	9,291	8,751
General and administrative	13,097	9,660	22,925	18,902
(Gain) loss on disposition of property and equipment	(48)	(1,788)	828	(1,788)
Depreciation and amortization	778	828	1,977	1,752
Total expenses	31,240	24,989	59,677	50,553
Loss from operations	(5,456)	(2,879)	(9,763)	(4,912)
Other income (expenses):
Interest expense, net	(14,450)	(13,621)	(28,315)	(27,234)
Other income, net	2,565	3,128	5,022	5,807
Total other expenses, net	(11,885)	(10,493)	(23,293)	(21,427)
Loss before provision for income taxes	(17,341)	(13,372)	(33,056)	(26,339)
Provision for income taxes	3,130	2,265	5,522	4,431
Net loss for the period	(20,471)	(15,637)	(38,578)	(30,770)
Other comprehensive income (loss), net of tax
Unrealized income (loss) on hedging activities	(96)	635	(309)	677
Net amount reclassified to earnings	156	91	236	649
Other comprehensive income (loss) net of tax expense (recovery) of $20 and $231 for the three months ended June 30, 2026 and June 30, 2025, and $(19) and $427 for the six months ended June 30, 2026 and June 30, 2025.	60	726	(73)	1,326
Comprehensive loss, for the period	$ (20,411)	$ (14,911)	$ (38,651)	$ (29,444)
Basic loss per common share	$ (1.84)	$ (1.41)	$ (3.46)	$ (2.79)
Diluted loss per common share	$ (1.84)	$ (1.41)	$ (3.46)	$ (2.79)
Shares used in computing basic loss per common share (in shares)	11,148,826	11,060,818	11,136,776	11,046,531
Diluted weighted average number of common shares outstanding (in shares)	11,148,826	11,060,818	11,136,776	11,046,531

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Cash provided by operating activities
Net loss for the period	$ (20,471)	$ (15,637)	$ (38,578)	$ (30,770)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	11,039	11,654	22,013	23,320
Amortization of debt discount and issuance costs	1,159	1,174	2,312	2,341
(Gain) loss on disposition of property and equipment	(48)	(1,788)	828	(1,788)
Impairment of property and equipment	334	435	614	639
Deferred income taxes (recovery)	(20)	(231)	23	(422)
Accretion of redeemable preferred units	5,429	0	10,418	0
Stock-based compensation expense	1,164	1,386	2,258	2,890
Change in non-cash operating working capital
Accounts receivable	4,719	(104)	1,422	(3,346)
Prepaid expenses and deposits	(3,086)	(3,098)	3,677	(2,223)
Deferred costs of fulfillment	1,662	2,031	(3,080)	(1,986)
Accounts payable & accrued liabilities	3,254	6,766	1,654	(3,855)
Contract liabilities	(2,443)	363	2,416	5,901
Other operating assets and liabilities	(756)	3,615	(517)	4,614
Net cash provided by (used in) operating activities	1,936	6,566	5,460	(4,685)
Financing activities:
Proceeds received on exercise of stock options	0	31	0	31
Repayment of syndicated revolver	0	0	0	(2,500)
Net cash provided by (used in) financing activities	0	31	0	(2,469)
Investing activities:
Proceeds on disposal of property and equipment	1,358	10,670	1,936	11,636
Additions to property and equipment	(5,054)	(3,468)	(10,582)	(8,905)
Acquisition of intangible assets	25	(213)	(856)	(213)
Net cash provided by (used in) investing activities	(3,671)	6,989	(9,502)	2,518
Increase (decrease) in cash and cash equivalents, restricted cash, and restricted cash equivalents	(1,735)	13,586	(4,042)	(4,636)
Cash and cash equivalents, restricted cash, and restricted cash equivalents beginning of period	61,938	55,016	64,245	73,238
Cash and cash equivalents, restricted cash, and restricted cash equivalents end of period	60,203	68,602	60,203	68,602
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 equivalents	44,164	52,020	44,164	52,020
Restricted cash included in funds held by trustee	5,019	4,640	5,019	4,640
Restricted cash included in secured notes reserve funds	11,020	11,942	11,020	11,942
Total cash and cash equivalents, restricted cash, and restricted cash equivalents end of period	60,203	68,602	60,203	68,602
Supplemental cash flow information:
Interest paid	7,954	8,475	16,334	26,807
Income taxes paid, net	3,279	2,092	7,287	3,391
Supplementary disclosure of non-cash investing and financing activities:
Property and equipment acquired during the period not yet paid for	$ 711	$ 1,610	$ 711	$ 1,610

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 44,164	$ 46,759
Restricted cash	5,019	5,315
Accounts receivable, net of expected credit losses of 1313000 as of June 30, 2026 and 1259000 as of December 31, 2025	23,072	24,494
Deferred costs of fulfillment, current portion	99,725	97,151
Prepaid expenses and other	25,726	29,375
Total current assets	197,706	203,094
Deferred costs of fulfillment, long-term portion	16,389	15,883
Secured notes reserve funds	11,020	12,171
Property and equipment, net	268,383	281,955
Right of use lease asset	80,438	63,315
Intangible assets	18,755	19,703
Goodwill	130,410	130,410
Other assets	4,598	4,378
Total assets	727,699	730,909
Current liabilities:
Accounts payable and accrued liabilities	36,125	35,272
Derivative instrument liability	171	75
Operating lease liability, current portion	6,896	5,771
Contract liabilities, current portion	133,474	131,581
Other current liabilities	21,564	20,765
Total current liabilities	345,677	330,427
Contract liabilities, long-term portion	21,877	21,354
Operating lease liability, long-term portion	74,481	57,823
Syndicated revolver	189,778	189,531
Notes payable	293,637	291,646
Other long-term liabilities	59	1,366
Deferred tax liability	2,961	2,962
Stockholders' deficit
Common stock - no par value, 250,000,000 shares authorized; 11,134,174 and 11,111,453 shares issued and outstanding as of June 30, 2026 and December 31, 2025	39,205	38,308
Additional paid-in capital	24,709	23,526
Accumulated deficit	(264,555)	(225,977)
Accumulated other comprehensive loss	(130)	(57)
Total stockholders' deficit	(200,771)	(164,200)
Total liabilities and stockholders' deficit	727,699	730,909
Series A Preferred Units
Current liabilities:
Redeemable preferred units - no par value, 33,333,333 units authorized; 15,243,600 units issued and outstanding as of March 31, 2026 and December 31, 2025	$ 147,447	$ 136,963