Tucows Q1 2025: Unraveling Contradictions in Ting, Tucows Domains, and Wavelo's Performance

Ting's financial performance and growth, Tucows Domains growth and performance, Wavelo's revenue and growth trends, and Tucows revenue growth and EBITDA improvement are the key contradictions discussed in Tucows' latest 2025Q1 earnings call.



Revenue and Profit Growth:
- Tucows reported an 8% year-over-year increase in revenue and a 29% year-over-year increase in gross profit for Q1, with adjusted EBITDA more than doubling.
- This growth was driven by operational efficiencies and early gains from the 2024 Ting restructuring initiative.

Tucows Domains Performance:
- Tucows Domains saw 6% year-over-year growth in revenue to $65.3 million and a 15% increase in adjusted EBITDA to $11.5 million in Q1.
- The increase was attributed to continued margin expansion, solid underlying performance, and the growing registry business.

Wavelo's Strongest Quarter:
- Wavelo's revenue rose by 21.4% year-over-year to $11.4 million, and adjusted EBITDA increased by 59.6% to $4.4 million in Q1.
- Growth was fueled by existing customer subscriber growth, new rate cards, and opportunities in the partner space.

Ting's Revenue and Subscriber Growth:
- Ting's revenue grew by 16% year-over-year to $16.3 million, with a 12% increase in subscribers to 51,700 in Q1.
- The growth was driven by increased ARPU, a focus on partner markets, and operational efficiencies from insourcing marketing and door-to-door functions.

Macroeconomic Impact and Capital Efficiency:
- The company noted the macroeconomic environment's impact on risk capital costs and emphasized disciplined execution and cost management.
- Tucows' focus on lowering its cost of capital and improving cash flow consistency will help it navigate the uncertain environment.