Q1 2025 Tucows Inc Earnings Call - Pre-Recorded

[Company Representative] (Tucows): The company. A Tucows-generated transcript of these remarks with relevant links is also available on the company's website. We will begin with opening remarks from Elliott Noss, President and CEO of Tucows and Ting, followed by business remarks from David Woroch, CEO of Tucows Domains, Justin Reilly, CEO of Wavelo, Elliott Noss on Ting, and Ivan Ivanov, Tucows CFO, who will discuss our financial results in detail. We will finish with closing remarks from Elliott Noss. In lieu of a live question and answer period following these remarks, shareholders, analysts, and prospective investors are invited to submit questions to Tucows management. Please submit questions via email to ir@tucows.com until Thursday, 15 May. management will either address your questions directly or provide a recorded audio response and transcript that will be posted to the Tucows website on Tuesday, 27 May at approximately 5:00 PM Eastern Time.

Unscripted. These remarks with relevant links is also available on the Companys Web site. We will begin with opening remarks from Elliot Noss, President and CEO of 2010, followed by business remarks from Dave Ward C. O. Two custom means Justin Reilly CEO of wavelengths Elliot Noss on King Ivan Ivan off too.

Operator: A 2COWS generated transcript of these remarks, with relevant links, is also available on the company's website.

Operator: We will begin with opening remarks from Elliot Noss, President and CEO of 2COWS & Ting, followed by business remarks from Dave Warrick, CEO of 2COWS Domains, Justin Reilly, CEO of WaveLow, Elliot Noss on Ting, Ivan Ivanov, 2COWS CFO, who will discuss our financial results in detail, and we will finish with closing remarks from Elliot Noss.

Speaker Change: <unk> CFO, who will discuss our financial results in detail and we will finish with closing remarks from Elliot Noss and we'll have a live question and answer period. Following these remarks shareholders analysts and prospective investors are invited to submit questions to <unk> management.

Operator: In lieu of a live question and answer period following these remarks, shareholders, analysts, and prospective investors are invited to submit questions to 2COWS Management. Please submit questions via email to ir2cows.com until Thursday, May 15th. Management will either address your questions directly or provide a recorded audio response and transcript that will be posted to the 2COWS website on Tuesday, May 27th at approximately 5 p.m. Eastern Time.

Speaker Change: Please submit questions via E mail to IR at <unk> Dot Com until Thursday May 15 management will either address your questions directly or provide a recorded audio response and transcript that will be posted to the two cows website on Tuesday may 27 at approximately five P. M. Eastern time, we.

Speaker Change: Would also like to advise that the updated Tucows quarterly Kpis summary, which provides key metrics for all of our businesses for the last five quarters as well as for full years 2023 'twenty 'twenty four and 2025 year to date and also includes historical financial results is available in the investors section of the website.

Operator: We would also like to advise that the updated 2CAS Quarterly KPI Summary, which provides key metrics for all of our businesses for the last five quarters, as well as for full years 2023, 2024, and 2025 year-to-date, and also includes historical financial results, is available in the Investor section of the website. The updated Investor Presentation is also available. We have stopped producing the Ting Build Scorecard following our winding down of new market construction and direct investors to the Quarterly KPI Summary for relevant Ting data.

[Company Representative] (Tucows): We would also like to advise that the updated Tucows quarterly KPI summary, which provides key metrics for all of our businesses for the last 5 quarters, as well as for full years 2023, 2024, and 2025 year to date, and also includes historical financial results, is available in the investors section of the website. The updated investor presentation is also available. We have stopped producing the Ting Build Scorecard following our winding down of new market construction and direct investors to the quarterly KPI summary for relevant Ting data. Now for management's prepared remarks. On Thursday, 8 May, Tucows issued a news release reporting its financial results for the Q1 ended 31 March 2025. That news release and the company's financial statements are available on the company's website at tucows.com under the Investors section.

Speaker Change: The updated Investor presentation is also available we have stopped producing the ting build scorecard following our winding down of new market construction and direct investors to the quarterly Kpis summary for relevant King data.

Speaker Change: Now for managements prepared remarks on Thursday may 8th Tucows issued a news release reporting its financial results for the first quarter ended March 31 2025.

Operator: Now for management's prepared remarks.

Operator: On Thursday, May 8, 2CAS issued a news release reporting its financial results for the first quarter and in March 31, 2025. That news release and the company's financial statements are available on the company's website at 2cas.com under the Investor section.

Speaker Change: That news release and the company's financial statements are available on the Companys website at <unk> Dot com under the investors section. Please.

Speaker Change: Please note. The following discussion may include forward looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially. These risk factors are described in detail in the company's documents filed with the SEC specifically the most recent reports on the forms 10-K and 10-Q the company urges you to read it so.

Operator: Please note, the following discussion may include forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially. These risk factors are described in detail in the company's documents filed with the SEC, specifically the most recent reports on the Forms 10-K and 10-Q. The company urges you to read its security filings for a full description of the risk factors applicable to its business.

[Company Representative] (Tucows): Please note, the following discussion may include forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially. These risk factors are described in detail in the company's documents filed with the SEC, specifically the most recent reports on the forms 10-K and 10-Q. The company urges you to read its security filings for a full description of the risk factors applicable to its business. I would now like to turn the call over to Tucows President and Chief Executive Officer, Elliott Noss. Go ahead, Elliott.

Speaker Change: Charity filings for a full description of the risk factors applicable to its business I would now like to turn the call over to Tucows, President and Chief Executive Officer Elliot Noss go ahead Elliot.

Elliot Noss: I would now like to turn the call over to TuKau's President and Chief Executive Officer, Elliot Noss. Go ahead, Elliot. Following four consecutive years of consolidated revenue growth, we continue the momentum in Q1 with an 8% year-over-year increase in revenue. Gross profit grew 29% year-over-year and adjusted EBITDA more than doubled, driven by substantial operational efficiencies and early gains from the 2024 Ting Restructuring Initiative. We also continue deleveraging with a Q1 $2.5 million repayment on the balance of the syndicated bank loan.

Speaker Change: Following four consecutive years of consolidated revenue growth. We continue the momentum in Q1 with an 8% year over year increase in revenue gross profit grew 29% year over year and adjusted EBITDA more than doubled driven by substantial operational efficiencies and early games for the 'twenty 'twenty four.

Elliot Noss: Following 4 consecutive years of consolidated revenue growth, we continue the momentum in Q1 with an 8% year-over-year increase in revenue. Gross profit grew 29% year-over-year, and Adjusted EBITDA more than doubled, driven by substantial operational efficiencies and early gains from the 2024 Ting restructuring initiative. We also continue deleveraging with a Q1 $2.5 million repayment on the balance of the syndicated bank loan. We're in a rare time and place where the macroeconomic environment, in terms of both the global economy and the impact of AI, might be more impactful and important than any specific business context. This is a time for thoughtful execution and choices of direction. I'll now turn over to David Woroch, CEO of Tucows Domains.

Restructuring initiatives.

Speaker Change: We also continue deleveraging.

Speaker Change: With a Q1 $2.5 million repayments on the balance of the syndicated bank loan.

Speaker Change: We're in a rare time and place where the macroeconomic environment in terms of both the global economy and the impact of AI might be more impactful and important that any specific business context. This is the time for thoughtful execution and choices of direction I'll now turn it over to Dave.

Elliot Noss: We're in a rare time and place where the macroeconomic environment, in terms of both the global economy and the impact of AI, might be more impactful and important than any specific business context. This is a time for thoughtful execution and choices of direction.

Speaker Change: <unk> CEO of two cows domains.

Dave Warrick: I'll now turn over to Dave Warrick, CEO of 2Cows Domains. Thanks, Elliot. 2Cows Domains continued to grow revenue, gross margin, and adjusted EBITDA in the first quarter, building on our performance in 2024. Domain services saw strong year-over-year growth in Q1, with revenue rising 6% to $65.3 million from $61.9 million in Q1 of last year. Gross margin increased 9% to $20.2 million, outpacing revenue growth and reflecting continued margin expansion and solid underlying performance. adjusted EBITDA grew 15% to $11.5 million from $10 million in Q1 of last year.

Speaker Change: Failure to go off domains continued to grow revenue gross margin and adjusted EBITDA in the first quarter building on our performance in 2024 domain services saw strong year over year growth in Q1 with revenue rising 6% to $65 3 million from 61.9.

David Woroch: Thanks, Elliot. Tucows Domains continued to grow revenue, gross margin, and Adjusted EBITDA in Q1, building on our performance in 2024. Domain services saw strong year-over-year growth in Q1, with revenue rising 6% to $65.3 million from $61.9 million in Q1 of last year. Gross margin increased 9% to $20.2 million, outpacing revenue growth and reflecting continued margin expansion and solid underlying performance. Adjusted EBITDA grew 15% to $11.5 million from $10 million in Q1 of last year, highlighting improved operating efficiency. Domains under management declined 2% and total transactions fell 6% year-over-year, primarily due to one large customer transitioning their domain operations in-house, a regular occurrence in our business. Historically, we consistently offset this through new customer wins and growth within our base, we're seeing more of our resellers incorporate AI into their customer solutions, an exciting development.

Speaker Change: In Q1 of last year gross margin increased 9% to $22 million outpacing revenue growth and reflecting continued margin expansion and solid underlying performance.

Speaker Change: Adjusted EBITDA grew 15% to $11 5 million from $10 million in Q1 of last year, highlighting improved operating efficiency.

Dave Warrick: Highlighting improved operating Domains under management declined 2%, and total transactions fell 6% year-over-year, primarily due to one large customer transitioning their domain operations in-house, a regular occurrence in our business. Historically, we consistently offset this through new customer wins and growth within our base. And we're seeing more of our resellers incorporate AI into their customer solutions. An exciting development.

Speaker Change: Domains under management declined 2% and total transactions fell 6% year over year, primarily due to one large customer transitioning their domain operations in house, a regular occurrence in our business historically.

Speaker Change: Historically, we consistently offset this through new customer wins and growth within our base and we're seeing more of our resellers incorporate AI into their customer solutions and exciting development.

Speaker Change: None of that customer our core business remains solid with domains under management slightly increasing and transaction volumes holding steady compared to last year while.

Dave Warrick: None of that customer, our core business remains solid, with domains under management slightly increasing and transaction volumes holding steady compared to last year. while both revenue and gross margin continue to grow.

David Woroch: Net of that customer, our core business remains solid, with domains under management slightly increasing and transaction volumes holding steady compared to last year, while both revenue and gross margin continue to grow. Moving forward, our growing registry business will also add incrementally to the core business. Our wholesale channel delivered solid performance in Q1, with revenue rising 6% year-over-year to $55.9 million from $52.9 million for Q1 of last year. Gross margin increased 10% to $15 million from $13.7 million last year, reflecting our continued margin expansion. Within the wholesale channel, domain services delivered a stable and modestly higher gross margin of $9.6 million, while value-added services delivered a standout performance with a 30% year-over-year increase in gross margin to $5.4 million, driven primarily by strong, high-margin sales from our expiry stream. Our retail channel continued its steady growth in Q1, with revenue increasing 4% year-over-year to $9.3 million.

Speaker Change: While both revenue and gross margin continued to grow moves.

Speaker Change: Moving forward, our growing registry business will also add incrementally to the core business.

Dave Warrick: Moving forward, our growing registry business will also add incrementally to the core business. Our wholesale channel delivered solid performance in Q1, with revenue rising 6% year-over-year to $55.9 million from $52.9 million for Q1 of last year. Gross margin increased 10% to $15 million from $13.7 million last year, reflecting our continued margin expansion. Within the wholesale channel, domain services delivered a stable and modestly higher gross margin of $9.6 million, while value-added services delivered a standout performance with a 30% year-over-year increase in gross margin to $5.4 million, driven primarily by strong, high-margin sales from our expiry state.

Speaker Change: Our wholesale channel delivered solid performance in Q1 with revenue rising 6% year over year to $55 9 million from $52 9 million for Q1 of last year.

Speaker Change: Gross margin increased 10% to $15 million from $13 7 million last year, reflecting our continued margin expansion.

Speaker Change: Within the wholesale channel domain services delivered a stable and modestly higher gross margin of $9 6 million.

Speaker Change: Value added services delivered a standout performance with a 30% year over year increase in gross margin to $5 4 million driven primarily by strong high margin sales from our expiry stream.

Our retail channel continued its steady growth in Q1 with revenue, increasing 4% year over year to $9 3 million.

Dave Warrick: Our retail channel continued its steady growth in Q1. with revenue increasing 4% year over year to $9.3 million. Gross margin expanded 6% to $5.2 million, reflecting a healthy contribution and higher margins in the retail sector. The overall combined renewal rate for the 2COWS Domains brands is up to 76.5% for Q1 and remains above the industry average.

Speaker Change: Gross margin expanded 6% to $5 2 million, reflecting a healthy contribution and higher margins in the retail segment.

David Woroch: Gross margin expanded 6% to $5.2 million, reflecting a healthy contribution and higher margins in the retail segment. The overall combined renewal rate for the Tucows Domains brands is up to 76.5% for Q1 and remains above the industry average. Further to my comments earlier this year, I have just returned from India, where I spent time with NIXI, the registry operator for the .IN ccTLD, and our team there. Our office is operational, and we have onboarded the team that are dedicating to supporting our partnership with NIXI. We are making great progress and expect to have their TLD operational on our platform by the end of the month. We're also looking ahead to 2026, when ICANN's anticipated new round of gTLDs, the first in a decade, will open up new opportunities to grow our registry business. The application period runs from Q2 to Q3 in 2026.

Speaker Change: The overall combined renewal rate for the two cows domains brands is up to 76, 5% for Q1 and remains above the industry average.

Speaker Change: And further to my comments earlier this year I have just returned from India, where I spent time with nixie. The registry operator for the Dod I N C. C T L D and our team there.

Dave Warrick: And further to my comments earlier this year, I have just returned from India, where I spent time with Nixie, the registry operator for the .in ccTLD and our team there. Our office is operational, and we have onboarded the team that are dedicating to supporting our partnership with Nick. We are making great progress and expect to have their TLD operational on our platform by the end of the month.

Speaker Change: Our office is operational and we have on boarded the team that are dedicated to supporting our partnership with <unk>, We're making great progress and expect to have their TLD operational on our platform by the end of the month.

Speaker Change: We're also looking ahead to 2026 when icons anticipated new round of G. T. All these the first in a decade will open up new opportunities to grow our registry business.

Dave Warrick: We're also looking ahead to 2026, when ICANN's anticipated new round of GTLDs, the first in the decade, will open up new opportunities to grow our registry business. The application period runs from Q2 to Q3 in 2026.

Speaker Change: The application period runs from Q2 to Q3 in 2026.

Speaker Change: Our Q1 results reinforced the strength and resilience of our core operations and that momentum has carried into Q2.

Dave Warrick: Our Q1 results reinforce the strength and resilience of our core operations, and that momentum is carried into Q2. Five weeks into the quarter, performance remained solid and consistent with the steady growth we've delivered over the past year. While we anticipate adjusted EBITDA growth to normalize to single digits in the coming quarters, our focus remains on driving top-line growth. expanding margins, and maintaining disciplined cost management.

David Woroch: Our Q1 results reinforce the strength and resilience of our core operations, and that momentum is carried into Q2. Five weeks into the quarter, performance remains solid and consistent with the steady growth we've delivered over the past year. While we anticipate adjusted EBITDA growth to normalize to single digits in the coming quarters, our focus remains on driving top-line growth, expanding margins, and maintaining disciplined cost management. Now, over to Justin Reilly, CEO of Wavelo.

Speaker Change: Five weeks into the quarter performance remains solid and consistent with the steady growth we've delivered over the past year.

Speaker Change: While we anticipate adjusted EBITDA growth to normalize to single digits in the coming quarters, our focus remains on driving topline growth expanding margins and maintaining disciplined cost management.

Speaker Change: Now over to Justin Reilly CEO of wavelength. Thanks, Dave the first quarter of 2025 marks wavelets single best quarter since its inception further reminding us of how these businesses tend to perform when we align our success with our customer success wave Lowe's revenue was $11 4 million in Q1 <unk>.

Justin Reilly: Now, over to Justin Reilly, CEO of Wavelow. Thanks, Dave. The first quarter of 2025 marks Wavelow's single best quarter since its inception, further reminding us of how these businesses tend to perform when we align our success with our customers' success. Wavelow's revenue was $11.4 million in Q1, a 15.3% increase from last quarter and a 21.4% increase from Q1 2024. Gross margin was $11.3 million this quarter, a 20.2% increase from last quarter, and a 24.6% increase from Q1 2024. Adjusted EBITDA for Q1 was $4.4 million, an increase of 20.9% quarter-over-quarter, and a 59.6% increase from Q1 2024.

Justin Reilly: Thanks, David. The Q1 2025 marks Wavelo's single best quarter since its inception, further reminding us of how these businesses tend to perform when we align our success with our customers' success. Wavelo's revenue was $11.4 million in Q1, a 15.3% increase from last quarter and a 21.4% increase from Q1 2024. Gross margin was $11.3 million this quarter, a 20.2% increase from last quarter and a 24.6% increase from Q1 2024. Adjusted EBITDA for Q1 was $4.4 million, an increase of 20.9% quarter over quarter and a 59.6% increase from Q1 2024. The growth year over year and quarter over quarter is fueled by existing customer subscriber growth as well as the new rate card introduced as part of the EchoStar four-year renewal that we announced earlier in the year.

Speaker Change: 15, 3% increase from last quarter, and a 21, 4% increase from Q1 2024.

Speaker Change: Gross margin was 11 3 million this quarter, a 22% increase from last quarter and a 24, 6% increase from Q1 2024 adjusted.

Speaker Change: Adjusted EBITDA for Q1 was $4 4 million, an increase of 29% quarter over quarter and a 59, 6% increase from Q1 2024, the growth year over year and quarter over quarter is fueled by existing customer subscriber growth as well as the new rate card introduced as part of the Echostar for year renewals.

Justin Reilly: The growth year-over-year and quarter-over-quarter is fueled by existing customer subscriber growth, as well as the new rate card introduced as part of the Echostar four-year renewal that we announced earlier in the year. In the quarter, I'm pleased with our team's ability to balance growth and profitability in the face of shifting macro winds, a 2Cows tradition that WaveLobe proudly inherits. We are now in the second quarter of a competitive go-to-market team and are seeing early signs of that investment paying off in our pipeline. Our pursuit of higher total contract value opportunities is gaining momentum, and we have several promising deals in the last stage of our sales cycle.

Speaker Change: We announced earlier in the year.

Speaker Change: In the quarter I'm pleased with our team's ability to balance growth and profitability in the face of shifting macro wins are two cows tradition that we have low proudly inherits. We are now in the second quarter of a competitive go to market team and are seeing early signs of that investment paying off and our pipeline our pursuit of high.

Justin Reilly: In the quarter, I'm pleased with our team's ability to balance growth and profitability in the face of shifting macro winds, a Tucows tradition that Wavelo proudly inherits. We are now in the Q2 of a competitive go-to-market team and are seeing early signs of that investment paying off in our pipeline. Our pursuit of higher total contract value opportunities is gaining momentum, and we have several promising deals in the last stage of our sales cycle. For the first time in Wavelo's history, we have a handful of global tier 1 and tier 2 opportunities in regions like Latin America and Europe that are showing promise. While these deals take a while to work and mature, I'm encouraged by the activity and interest.

Speaker Change: Your total contract value opportunities is gaining momentum and we have several promising deals in the last stage of our sales cycle for the first time in <unk> history, we have a handful of global tier one and tier two opportunities in regions like Latin America, and Europe that are showing promise while these deals take a while to work and mature.

Justin Reilly: For the first time in Wavelo's history, we have a handful of global Tier 1 and Tier 2 opportunities in regions like Latin America and Europe that are showing promise. While these deals take a while to work and mature, I'm encouraged by the activity and interest. We continue to hear harrowing tales from large operators about their existing providers, and our R&D investments are specifically targeted at simplifying the mess and letting telecoms actually take advantage of the promise of AI. We are also seeing an increase in inbound interest from systems integration partners and adjacent technology providers who believe that Wavelo is a valuable co-sell partner and natural extension of their value proposition.

Speaker Change: I'm encouraged by the activity and interest we continue to hear harrowing tales from large operators about their existing providers and our R&D investments are specifically targeted at simplifying the mess and letting telecoms actually take advantage of the promise of AI. We are also seeing an increase in inbound.

Justin Reilly: We continue to hear harrowing tales from large operators about their existing providers. Our R&D investments are specifically targeted at simplifying the mess and letting telecoms actually take advantage of the promise of AI. We are also seeing an increase in inbound interest from systems integration partners and adjacent technology providers who believe that Wavelo is a valuable co-sell partner and natural extension of their value proposition. As these partnerships take shape, we expect them to provide an indirect pipeline of opportunities that nicely complement our direct sales efforts. Finally, we recently hired a new head of marketing, bringing our marketing department to a whopping two full-time employees. It will take a few quarters. As the team ramps, we expect to see a steady increase in leads from target account-based marketing efforts.

Speaker Change: Interest from systems integration partners and adjacent technology providers, who believed that wave LOE was a valuable co sell partner and natural extension of their value proposition as these partnerships take shape, we expect them to provide an indirect pipeline of opportunities that nicely complements our direct sales efforts and <unk>.

Justin Reilly: As these partnerships take shape, we expect them to provide an indirect pipeline of opportunities that nicely complements our direct sales efforts.

Speaker Change: Finally, we recently hired a new head of marketing, bringing our marketing department to a whopping two full time employees. It will take a few quarters, but as the team ramps, we expect to see a steady increase in leads from target account based marketing efforts overall I'm pleased with where the team is and I am encouraged by the sustained.

Justin Reilly: And finally, we recently hired a new head of marketing, bringing our marketing department to a whopping two full-time employees. It will take a few quarters, but as the team ramps, we expect to see a steady increase in leads from target account-based marketing efforts. Overall, I'm pleased with where the team is and am encouraged by the sustained progress in the early parts of this year.

Justin Reilly: Overall, I'm pleased with where the team is and am encouraged by the sustained progress in the early parts of this year. In 2025, I would be remiss if I didn't spend a few moments on artificial intelligence. A decade ago, working inside one of the world's largest telecoms, we were spending billions of dollars of capital on models, and today, all of you can access that same compute with a $20 subscription to ChatGPT or Claude. Every single week, I do something with a large language model that I've never done before, and this is compounding in truth for our teams at Wavelo. Our go-to-market teams are more efficient at responding to cumbersome RFPs. Engineering cognitive load is decreased as we offload tedious tasks to machines.

Speaker Change: Progress in the early parts of this year in 2025, I would be remiss, if I didn't spend a few moments on artificial intelligence a decade ago working inside one of the world's largest telecoms, we were spending billions of dollars of capital on models and today. All of you can access that same compute with a 20 dollar.

Justin Reilly: In 2025, I would be remiss if I didn't spend a few moments on artificial intelligence. A decade ago, working inside one of the world's largest telecoms, we were spending billions of dollars of capital on models. And today, all of you can access that same compute with a $20 subscription to ChatGPT or Claude. Every single week, I do something with a large language model that I've never done before. And this is compounding in truth for our teams at Wavelo. We are experimenting in every wing of our virtual headquarters. Our go-to-market teams are more efficient at responding to cumbersome RFPs.

Speaker Change: The chat GP to your Claude every single week, I do something with a large language model that I've never done before.

Speaker Change: And this is compounding in truth for our teams at wavelength, we are experimenting and every wing of our virtual headquarters. Our go to market teams are more efficient and responding to cumbersome Rfps engineering cognitive load has decreased as we offload tedious tasks to machines. The active serving our distributed workforce is now more home.

Justin Reilly: Engineering cognitive load is decreased as we offload tedious tasks to machines. The act of surveying our distributed workforce is now more human and more thorough, driving better engagement and performance. These moves are a shift from author to operator. This transition is one not without its challenges, not just for Wavelo, but for teams all around the world. In previous technology revolutions, the cohorts to retrain were blue-collar workers or customer service agents. Today's challenge is the fundamental retraining of software engineers. This is both a practical endeavor and an emotional one, as it challenges the very identity of much of the modern internet workforce.

Justin Reilly: The act of serving our distributed workforce is now more human and more thorough, driving better engagement and performance. These moves are a shift from author to operator. This transition is one not without its challenges, not just for Wavelo, but for teams all around the world. In previous technology revolutions, the cohorts to retrain were blue-collar workers or customer service agents. Today's challenge is the fundamental retraining of software engineers. This is both a practical endeavor and an emotional one, as it challenges the very identity of much of the modern Internet workforce. Fortunately for Wavelo, we not only have some of the best engineers in the industry, we also have some of the most curious. It is in this curiosity, within an industry rampant with apathy, that we win. Thanks for listening. Now over to Elliot.

Speaker Change: Men and more thorough driving better engagement and performance. These moves are a shift from author to operator. This transition is one not without its challenges not just for wave low but for teams all around the world in previous technology revolutions, the cohorts to retrain where blue.

Speaker Change: Collar workers or customer service stations. Today's challenge is the fundamental retraining of software engineers. This is both a practical endeavor and an emotional one as it challenges the very identity of much of the modern internet workforce.

Speaker Change: Fortunately for Weibo, we not only have some of the best engineers in the industry. We also have some of the most curious it is in this curiosity within an industry ramp it with apathy that we win.

Justin Reilly: Fortunately for WaveLow, we not only have some of the best engineers in the industry, we also have some of the most curious. It is in this curiosity, within an industry rampant with apathy, that we win. Thanks for listening.

Speaker Change: Thanks for listening and now over to Elliot. Thanks, Justin King continues to grow revenue and profitability, we had double digit revenue growth reporting $16 $3 million in Q1, a 16% increase year over year. The growth was driven by increased <unk> and a 12% year.

Elliot Noss: And now over to Elliot. Thanks, Justin. Ting continues to grow revenue and profitability. We had double digit revenue growth reporting $16.3 million in Q1, a 16% increase year over year. The growth was driven by increased ARPU and a 12% year over year increase in subscribers, which brought us to 51,700 subscribers from 46,100 in Q1 of last year. The first quarter ended with a total of 187,400 serviceable addresses, an increase of 19% from Q1 of 2024. This breaks down to the 133,400 Ting-owned addresses and 54,000 partner serviceable addresses, which increased 64% year-over-year. Given the scale of our Colorado Springs and Memphis partner markets that are just starting to accelerate their builds, and our pivot from building new markets to partner markets, we expect the growth to come primarily from partner markets going forward.

Elliot Noss: Thanks, Justin. Ting continues to grow revenue and profitability.

Elliot Noss: We had double-digit revenue growth, reporting $16.3 million in Q1, a 16% increase year over year. The growth was driven by increased ARPU and a 12% year over year increase in subscribers, which brought us to 51,700 subscribers from 46,100 in Q1 of last year. Q1 ended with a total of 187,400 serviceable addresses, an increase of 19% from Q1 of 2024. This breaks down to the 133,400 Ting-owned addresses and 54,000 partner serviceable addresses, which increased 64% year over year. Given the scale of our Colorado Springs and Memphis partner markets that are just starting to accelerate their builds and our pivot from building new markets to partner markets, we expect the growth to come primarily from partner markets going forward.

Speaker Change: Year over year increase in subscribers, which brought us to 51700 subscribers from 46100 in Q1 of last year.

Speaker Change: The first quarter ended with a total of 187400 serviceable addresses an increase of 19% from Q1 of 2024.

Speaker Change: This breaks down to the 133000 and 410 owned addresses and 54000 partners serviceable addresses which increased 64% year over year, given the scale of our Colorado Springs, and Memphis partner markets that are just starting to accelerate their bills and our pivot from building.

Speaker Change: New markets to partner markets, we expect the growth to come primarily from partner markets going forward.

Speaker Change: <unk> gross margin increased 20% year over year to 10 5 million in Q1, as we continue to gain efficiencies from no longer carrying excess construction capacity, which would have been charged to cogs.

Elliot Noss: Ting Gross Margin increased 20% year-over-year to $10.5 million in Q1, as we continue to gain efficiencies from no longer carrying excess construction capacity, which would have been charged to COGS. Ting's adjusted EBITDA also continues to trend in a positive direction, with a loss of only $0.9 million in Q1, down from a $9.5 million loss in Q1 of 2024.

Elliot Noss: Ting gross margin increased 20% year over year to $10.5 million in Q1 as we continue to gain efficiencies from no longer carrying excess construction capacity, which would have been charged to COGS. Ting's Adjusted EBITDA also continues to trend in a positive direction, with a loss of only $0.9 million in Q1, down from a $9.5 million loss in Q1 of 2024. There were some one-time costs in Q1 that brought that number down a bit, and our goal remains to finish 2025 for Ting as Adjusted EBITDA neutral. There are two items I will update on. First, we are seeing opportunities in the partner space as we commit to it in a more focused way.

Speaker Change: <unk> adjusted EBITDA also continues to trend in a positive direction with a loss of only zero point $9 million in Q1 down from a $9.5 million loss in Q1 of 2024.

Speaker Change: There were some onetime costs in Q1 that brought that number down a bit.

Elliot Noss: There were some one-time costs in Q1 that brought that number down a bit, and our goal remains to finish 2025 for Ting as adjusted EBITDA neutral.

Speaker Change: And our goal remains to finished 2025 for Ting as adjusted EBITDA neutral.

Speaker Change: There are two items I will update on <unk>.

Elliot Noss: There are two items I will update on. First, we are seeing opportunities in the partner space as we commit to it in a more focused way. Subsequent to the quarter, in fact just last week, we signed a deal to be the ISP and to oversee but not fund construction for one of the largest senior communities in the country. This is a roughly 12,000 home opportunity but will not start producing revenue or have an impact on cash flow until 2027. Such is the long-term nature of this business.

Speaker Change: First we are seeing opportunities in the partner space as we commit to it and a more focused way.

Speaker Change: Subsequent to the quarter in fact, just last week, we signed a deal to be the ISP and to oversee but not fund construction for one of the largest senior communities in the country.

Elliot Noss: Subsequent to the quarter, in fact, just last week, we signed a deal to be the ISP and to oversee, but not fund, construction for one of the largest senior communities in the country. This is a roughly 12,000-home opportunity, but will not start producing revenue or have an impact on cash flow until 2027, such is the long-term nature of this business. Second, the reinvention of our marketing and door-to-door functions is starting to bear fruit. While this won't be visible in the numbers for a bit, we are seeing the right signs of progress. In marketing, this manifests in the standing up of some core marketing infrastructure that needed refreshing. In door-to-door, cost per order and productivity per rep have both already improved by more than 60%, and there is still more to go.

Speaker Change: This is a roughly 12000 home opportunity, but we will not start producing revenue or have an impact on cash flow until 2027, such as the long term nature of this business.

Speaker Change: Second.

Speaker Change: The reinvention of our marketing and door to door functions is starting to bear fruit.

Elliot Noss: Second, the reinvention of our marketing and door-to-door functions is starting to bear fruit. While this won't be visible in the numbers for a bit, we are seeing the right signs of progress. In marketing, this manifests in the standing up of some core marketing infrastructure that needed refreshing. In door-to-door, cost per order and productivity per rep have both already improved by more than 60%, and there is still more to go. The trick with insourcing door-to-door relative to using a third party is scaling. But thankfully, this is an area where AI should be able to help.

Speaker Change: While this will be visible in the numbers for a bit we are seeing the right signs of progress.

Speaker Change: In marketing this manifests in the standing up of some core marketing infrastructure that needed refreshing indoor.

Speaker Change: In door to door.

Speaker Change: Cost per order and productivity per rep have both already improved by more than 60% and there is still more to go.

Speaker Change: The trick with in sourcing door to door relative to using a third party is scaling but thankfully. This is an area where AI should be able to help.

Elliot Noss: The trick with insourcing door to door relative to using a third party is scaling, but thankfully, this is an area where AI should be able to help. Finally, we're very much focused on ensuring our short-term cash needs are met, which includes going to the ABS market, disposing of non-strategic assets, and looking at structure and finance options to improve our cost of capital. As noted previously, we have closed and are in the process of closing a few of the small cleanup transactions that we have talked about. These not only provide capital, they also further clean up and simplify operations. Now we'll hear from our CFO, Ivan Ivanov, who will discuss our financial results in detail.

Speaker Change: Finally, we're very much focused on ensuring our short term cash needs are met which includes going to the ABS market disposing of non strategic assets and looking at structure and finance options to improve our cost of capital.

Elliot Noss: Finally, we're very much focused on ensuring our short-term cash needs are met, which includes going to the ABS market, disposing of non-strategic assets, and looking at structure and finance options to improve our cost of capital. And as noted previously, We have closed, and are in the process of closing, a few of the small cleanup transactions that we have talked about.

Speaker Change: And as noted previously.

Speaker Change: We have closed and are in the process of closing a few of the small cleanup transactions that we've talked about these not only provide capital. They also further cleanup and simplify operations.

Elliot Noss: These not only provide capital, they also further clean up and simplify operations.

Speaker Change: Now, we'll hear from our CFO, Ivan <unk>, who will discuss our financial results in detail.

Ivan Ivanov: Now we'll hear from our CFO, Ivan Ivanov, who will discuss our financial results in detail. Thank you, Elliot. And thank you, everyone, for joining us today. The first quarter of 25 marked a significant step in executing on our financial priorities. including driving sustainable, profitable growth and maintaining capital efficiency. The theme of QM is strong top-line growth, expanding margins, and disciplined execution across our business units. We delivered an 8.2% year-over-year increase in total consolidated revenue to $94.6 million, expanding our multi-year trend of top-line expansion. More notably, gross profit surged 28.5% to $23.5 million, driving a 393 basis points improvement in consolidated gross margin to 24.9%.

Speaker Change: Elliot and thank you everyone for joining us today.

Ivan Ivanov: Thank you, Elliot. Thank you everyone for joining us today. The Q1 2025 marked a significant step in executing on our financial priorities, including driving sustainable, profitable growth and maintaining capital efficiency. The theme of Q1 is strong top-line growth, expanding margins, and disciplined execution across our business units. We delivered an 8.2% year-over-year increase in total consolidated revenue to $94.6 million, extending a multi-year trend of top-line expansion. More notably, gross profit surged 28.5% to $23.5 million, driving a 393 basis points improvement in consolidated gross margin to 24.9%. This margin expansion translated directly into operating leverage, with Adjusted EBITDA rising 225% year-over-year to $13.7 million. At the bottom line level, we narrowed our net loss year-over-year by 43%.

The first quarter of 'twenty five.

Speaker Change: Mark a significant step in executing on our financial priorities.

Speaker Change: Including driving sustainable crop.

Speaker Change: <unk> growth.

Speaker Change: And maintaining capital efficiency.

This team of Q1 is strong topline growth expanding margins and disciplined execution across our business units.

Speaker Change: We delivered an eight 2% year over year increase in total consolidated revenue too.

Speaker Change: To $94 6 million.

Speaker Change: Pending a multiyear trend of top line expansion.

Martin: Martin ultimately gross profit surged 28, 5% from $22 5 million.

Martin: Driving a 390 basis points improvement.

Martin: Solid gross margin.

Martin: So 24, 9%.

Martin: This margin expansion translated directly into operating leverage.

Ivan Ivanov: This margin expansion translated directly into operating leverage with adjusted EBITDA rising 225% year-over-year to $13.7 million. At the bottom line level, we narrowed our net loss year-over-year by 43%. Our net loss for Q1 was $15.1 million, or a loss of $1.37 per share, compared to a net loss of $26.5 million, or a loss of $2.42 per share for the first quarter of 2024. are adjusted net loss and adjusted EPS in Q1'25 are $14.9 million and a loss of $1.35 per share compared to Q1'24 adjusted net loss of $23.4 million and adjusted EPS loss of $2.14 per share.

Martin: Adjusted EBITDA.

Martin: Rising 225% year over year to 13.

Martin: $13 7 million.

Martin: The bottom line level, we narrowed our net loss year over year by 43%.

Martin: Our net loss for Q1 was $15 1 million.

Ivan Ivanov: Our net loss for Q1 was $15.1 million or a loss of $1.37 per share, compared to a net loss of $26.5 million or a loss of $2.42 per share for Q1 2024. Our adjusted net loss and adjusted EPS in Q1 2025 are $14.9 million and a loss of $1.35 per share, compared to Q1 2024 adjusted net loss of $23.4 million and adjusted EPS loss of $2.14 per share. Let me now walk you through the performance of each business unit, starting with Tucows Domains. Domains continues to be a fundamental driver of our financial strength. Revenue grew 5.5% year over year to $65.3 million, driven by Expiry sales and continued resilience of the core business. Gross margin expanded 9.1% to $20.2 million in Q1 2025 from Q1 2024, holding steady at a 31% margin as a percent of revenues.

Martin: Or a loss of $1 37 per share.

Martin: Back to a net loss of $26 5 million.

Martin: Or a loss of $2 and 42 SaaS per share for the first quarter of 'twenty four.

Martin: Our adjusted net loss and adjusted EPS in Q1, 'twenty, five or $14 9 million.

Martin: And a loss of $1 35 per share compared to Q1 'twenty four adjusted net loss of $28 4 million.

Martin: And adjusted EPS loss of $2 14 per share.

Martin: Let me now walk you through the performance of each business unit, starting with two calls domains.

Ivan Ivanov: Let me now walk you through the performance of each business unit, starting with 2Cals Domains. Domains continues to be a fundamental driver of our financial strength. Revenue grew 5.5% year-over-year to $65.3 million, driven by expiry sales and continued resilience of the core business.

Martin: Demand continues to be a fundamental driver of our financial strength.

Martin: Revenue grew five 5% year over year to $65 3 million driven by export sales and continued resilience of the core business.

Martin: Gross margin expanded nine 1% to $20 2 million in Q1 25 from Q1 'twenty four.

Ivan Ivanov: A gross margin expanded 9.1% to $20.2 million in Q1'25 from Q1'24, holding steady at a 31% margin as a percent of revenues. Adjusted EBITDA for two-cows domains increased 15.3% year-over-year to $11.5 million for the quarter.

Martin: Holding steady at a 31% margin as a percent of revenues.

Martin: Adjusted EBITDA for two calls domains increased 15% year over year to $11 5 million for the quarter.

Ivan Ivanov: Adjusted EBITDA for Tucows Domains increased 15.3% year over year to $11.5 million for the quarter. Moving on to Ting. Ting continues to be a major focus for us, and we are seeing the results of our efforts to optimize capital efficiency while continuing to drive penetration and ARPU in our existing footprint as well as partner markets. Revenue grew 15.7% year over year to $16.3 million, while subscribers grew 12% year over year. Ting's gross margin climbed 20% year over year to $10.5 million, with a Q1 improvement in gross margin percentage from 62% last year to 64% this quarter. Finally, Adjusted EBITDA improved significantly, moving from a $9.5 million loss in Q1 2024 to a $0.9 million loss this quarter. The improvement in Adjusted EBITDA at Ting is a direct result of our disciplined approach to managing costs, streamlining operations, and driving incremental ARPU gains.

Martin: Moving onto <unk>.

Martin: <unk> continues to be a major focus for us and we are seeing the results of our efforts to optimize capital efficiency.

Ivan Ivanov: Moving on to Tink. Think continues to be a major focus for us, and we are seeing the results of our efforts to optimize capital efficiency while continuing to drive penetration and our pool in our existing footprint, as well as partner markets. Revenue grew 15.7% year-over-year to $16.3 million while subscribers grew 12% year-over-year. Dean's gross margin climbed 20% year-over-year to $10.5 million. with a Q1 improvement in gross margin percentage from 62% last year to 64% this quarter.

Martin: While continuing to drive penetration and our pool in our existing footprint as well as partner markets.

Martin: Revenue grew 15, 7% year over year to $16 3 million.

Martin: While subscribers grew 12% year over year.

Martin: <unk> gross margin climbed 20% year over year to $10 5 million.

Martin: Q1 improvement in gross margin percentage from 62% last year to 64% this quarter and.

Martin: And finally, adjusted EBITDA improved significantly moving from a $9 5 million loss in Q1 24.

Ivan Ivanov: And finally, adjusted EBITDA improved significantly, moving from a $9.5 million loss in Q1'24 to a 0.9 million loss this quarter. The improvement in adjusted EBITDA at TINC is a direct result of our disciplined approach to managing costs. streamlining operations, and driving incremental ARPU gains. These are structural improvements that set the stage for continued margin expansion.

Martin: Zero 9 million loss this quarter.

Martin: The improvement in adjusted EBITDA a king.

Martin: The direct result of our disciplined approach to managing cost.

Martin: Streamlining operations.

Martin: And driving incremental <unk> games.

Martin: These are structural improvements that center stage for continued margin expansion.

Ivan Ivanov: These are structural improvements that set the stage for continued margin expansion. Moving on to Wavelo. Wavelo continues to manage its operations tightly and deliver results as it focuses on building its growth funnel. This was the best quarter for Wavelo yet, with revenue increasing 21.4% year-over-year to $11.4 million. Gross margin was 99% and Adjusted EBITDA increased 59.6% to $4.4 million, underscoring a well-run capital efficient software operation. Corporate revenue reduced to $1.6 million and Adjusted EBITDA declined to -$1.5 million for the quarter, largely due to erosion in our legacy mobile base. On the cash flow, capital expenditures in PP&E for Q1 were comparably low at $5.4 million, highlighting our shift to partner markets in the fiber deployment strategy.

Wang: Moving onto Wang Hello.

Ivan Ivanov: Moving on to WaveLow, WaveLow continues to manage its operations tightly and deliver results as it focuses on building its growth funnel.

Wang: <unk> continues to manage its operations tightly.

Wang: And deliver results as it focuses on building integral to funnel.

Wang: This was the best quarter for labeling yet.

Ivan Ivanov: This was the best quarter for WaveLoy yet, with revenue increasing 21.4% year-over-year to $11.4 million. Gross margin was 99% and adjusted EBITDA increased 59.6% to $4.4 million, underscoring a well-run, capital-efficient software operation.

Wang: With revenue, increasing 21, 4% year over year to $11 4 million.

Wang: Gross margin was 99% and adjusted EBITDA increased 59, 6% to $4 4 million.

Wang: Underscoring our well run <unk>.

Wang: Capital efficient staff to our operation.

Wang: The revenue reduced to $1 6 million and adjusted EBIT declined to negative $1 5 million for the quarter.

Ivan Ivanov: Corporate revenue reduced to $1.6 million and adjusted EBITDA declined to negative $1.5 million for the quarter, largely due to erosion in our legacy mobile base. On the cash flow, capital expenditures in PP&E for Q1 were comparatively low at $5.4 million, highlighting our shift to partner markets in the Fibre Deployment Strategy. We ended the first quarter with cash and cash equivalents and restricted cash and restricted cash equivalents of 55 million while continuing to reduce our syndicated debt. The amount of our corporate net debt now stands at $192.1 million, bringing our leverage ratio down to 3.14 times while related interest expense declined 20% year-over-year.

Wang: Largely due to erosion in our legacy mobile base.

Wang: On the cash flow capital expenditures in PP&E for Q1 were comparatively low at $5 4 million highlighting our shift to park no markets.

Wang: In our fiber deployment strategy.

Wang: We ended the first quarter with cash and cash equivalents and the restricted cash and restricted cash equivalents.

Ivan Ivanov: We ended Q1 with cash and cash equivalents and restricted cash and restricted cash equivalents of $55 million, while continuing to reduce our syndicated debt. The amount of our corporate net debt now stands at $192.1 million, bringing our leverage ratio down to 3.14x, while related interest expense declined 20% year over year. Separately, as of quarter end, on a net basis, the Ting fiber business carried $288.6 million in asset-backed securitized notes and $122.2 million in redeemable preferred equity. These facilities remain structured within the Ting entity. Altogether, the quarter's strong results are a testament to the continued execution of our priorities: achieving top-line growth while also significantly improving margins and operating efficiency. This step-up in margin is a direct outcome of higher revenue, disciplined cost management, and maintaining a leaner cost structure.

Wang: Our $55 million.

Wang: While continuing to reduce our syndicated debt.

Wang: The amount of our corporate net debt now stands at $192 1 million.

Wang: Bringing our leverage ratio down to 214 times, while related interest expense declined 20% year over year.

Wang: Separately as.

Quarter end.

Ivan Ivanov: Separately, as of quarter end, on a net basis, the ThinkFibre business carried $288.6 million in asset-backed securitized notes and $122.2 million in redeemable preferred equity. These facilities remain structured within the TINC entity.

Wang: On a net basis, the pink fiber business.

Gary: Gary <unk> to $188 6 million in asset backed securitized notes.

Wang: And $122 2 million.

Wang: And redeemable preferred equity.

Wang: These facilities remains structured we deem Inc entity.

Wang: Altogether the quarter strong results are a testament to the continued execution of our priorities.

Ivan Ivanov: Altogether, the quarter's strong results are a testament to the continued execution of our priorities. achieving top-line growth while also significantly improving margins and operating efficiency. This step up in margin is a direct outcome of higher revenue, disciplined cost management, and maintaining a leaner cost structure. We remain committed to that level of execution throughout the year in order to achieve our annual guidance.

Wang: Achieving top line growth, while also significantly improving margins and operating efficiency.

This step up in margin.

Wang: Is a direct outcome of higher revenue.

Wang: Disciplined cost management.

Wang: And maintaining a leaner cost structure.

Wang: We remain committed to that level of execution throughout the year in order to achieve our annual guidance.

Ivan Ivanov: We remain committed to that level of execution throughout the year in order to achieve our annual guidance. With that, thank you, and I'll pass it back to Elliot Noss.

Elliot Noss: With that thank you and I'll pass it back to Elliot.

Elliot Noss: With that, thank you, and I'll pass it back to Elliot. Thanks, Ivan. The strong results from the first quarter drove us to achieve 30% of our consolidated annual guidance for 2025. This was primarily from wave lows and domain's strong first quarters, as well as a lower corporate loss, which is typical in Q1. We expect levels to potentially moderate in the coming quarters. Currently, the macroeconomic environment is characterized by an unusually high degree of uncertainty. I would say the greatest I have seen in my lifetime. The causes are, I think, fairly evident. Persistent inflation, despite tightening monetary policy, escalating geopolitical tensions, and mixed signals across global demand and employment data all contribute to a global environment that is difficult to read.

Elliot Noss: Thanks, David.

Speaker Change: Strong results from the first quarter drove us to achieve 30% of our consolidated annual guidance for 2025. This was primarily from wave lows and domains strong first quarters as well as the lower corporate loss, which is typical in Q1, we expect levels to potentially moderate in the coming quarters.

Elliot Noss: Thanks, Ivan. The strong results from the first quarter drove us to achieve 30% of our consolidated annual guidance for 2025. This was primarily from Wavelo's and Domains' strong first quarters, as well as a lower corporate loss, which is typical in Q1. We expect levels to potentially moderate in the coming quarters. Currently, the macroeconomic environment is characterized by an unusually high degree of uncertainty. I would say the greatest I have seen in my lifetime. The causes are, I think, fairly evident. Persistent inflation despite tightening monetary policy, escalating geopolitical tensions, and mixed signals across global demand and employment data all contribute to a global environment that is difficult to read. The impact of that uncertainty is beginning to show itself.

Speaker Change: The macroeconomic environment is characterized by the unusually high degree of uncertainty I would say the greatest I've seen in my lifetime.

Causes are I think.

Speaker Change: Early evidence for.

Speaker Change: Assistance inflation, despite tightening monetary policy.

Speaker Change: Escalating geopolitical tensions and mixed signals across global demand and employment data all contribute to a global environment that is difficult to read.

Speaker Change: The impact of that uncertainty is beginning to show itself.

Elliot Noss: The impact of that uncertainty is beginning to show itself. The cost of risk capital is increasing, while the cost of highly secure capital is declining. Perhaps the clearest window into this dynamic is in the pricing of asset-backed securities. In that market, spreads on the C-tranche, the riskiest, are widening, while spreads on the A-tranche, the investment-grade tranche, are compressing. and have excess demand. In short, risk is being penalized more heavily and security is being rewarded more heavily. We believe this divergence will only grow over time. Why? Because we haven't even completed a full quarter under this new climate of uncertainty.

Speaker Change: The cost of risk capital is increasing while the cost of highly secure capital is declining.

Elliot Noss: The cost of risk capital is increasing, while the cost of highly secure capital is declining. Perhaps the clearest window into this dynamic is in the pricing of asset-backed securities. In that market, spreads on the C tranche, the riskiest, are widening, while spreads on the A tranche, the investment-grade tranche, are compressing and have excess demand. In short, risk is being penalized more heavily, and security is being rewarded more heavily. We believe this divergence will only grow over time. Why? We haven't even completed a full quarter under this new climate of uncertainty. If we mark 2 April, Independence Day, as a symbolic beginning, it is also just the beginning of the Q2. The true effects of this shift will not even start to be visible until companies begin reporting Q2 results in late July or early August. Until then, uncertainty will continue.

Speaker Change: Perhaps the clearest window into this dynamic is in the pricing of asset backed securities.

Speaker Change: And that market spreads on the C tranche, the riskiest are widening while spreads on the a tranche the investment grade tranche are compressing.

Speaker Change: And have excess demand and short.

Speaker Change: Risk is being penalized more heavily in security is being rewarded more heavily.

Speaker Change: We believe this divergence will only grow over time.

Speaker Change: I.

Speaker Change: Because we haven't even completed a full quarter under this new climate of uncertainty.

Speaker Change: We marked April 2nd Independence day, as a symbolic beginning.

Elliot Noss: If we mark April 2nd, Independence Day, as a symbolic beginning, it is also just the beginning of the second quarter. The true effects of this shift will not even start to be visible until companies begin reporting second quarter results in late July or early August. Until then, uncertainty will continue. After that, it may abate or it may deepen, but we are confident that the new normal will involve a significantly higher baseline level of uncertainty than what we experienced prior to April 2nd.

Speaker Change: It is also just the beginning of the second quarter.

Speaker Change: The true effects of this shift will not even start to be visible until companies begin reporting second quarter results in late July early August.

Speaker Change: Until then uncertainty will continue.

Speaker Change: After that it may abate or it means EBIT.

Elliot Noss: After that, it may abate, or it may deepen. We are confident that the new normal will involve a significantly higher baseline level of uncertainty than what we experienced prior to April 2nd. One thing we know with absolute clarity, capital hates uncertainty. How does all of this impact our business? The effects will vary across our different segments. For Ting, this environment validates the strategy we are already executing, minimizing CapEx while focusing intensely on increasing revenue throughput. That means driving higher utilization across our existing organic footprint and ramping up the activation of partner addresses, which continue to come online at an accelerating pace. These efforts directly enhance our ABS capacity by improving the consistency and scale of our cash flows. Of course, we would like to lower our cost of capital. For Wavelo, the impact may be more muted but not insignificant.

Speaker Change: But we are confident that the new normal will involve a significantly higher baseline level of uncertainty than what we experienced prior to April 2nd.

Speaker Change: And one thing, we know with absolute clarity capital hate uncertainty.

Elliot Noss: And one thing we know with absolute clarity, Capital Hates Uncertainty. So how does all of this impact our business? The effects will vary across our different segments. For Ting, this environment validates the strategy we are already executing, minimizing CapEx while focusing intensely on increasing revenue throughput. That means driving higher utilization across our existing organic footprint and wrapping up the activation of partner addresses, which continue to come online at an accelerating pace. These efforts directly enhance our ABS capacity by improving the consistency and scale of our cash flows. And of course, we would like to lower our cost of CapEx.

Speaker Change: So how does all of this impact our business the effects will vary across our different segments for Ting. This environment validates the strategy, we are already executing minimizing capex, while focusing intensely on increasing revenue throughput.

Speaker Change: That means driving higher utilization across our existing organic footprint and wrapping up the activation of partner addresses which continue to come online at an accelerating pace. These.

Speaker Change: These efforts directly enhance our ABS capacity by improving the consistency and scale of our cash flows and of course, we would like to lower our cost of capital.

Speaker Change: For wave low the impact may be more muted, but not insignificant.

Elliot Noss: For Wavelo, the impact may be more muted, but not insignificant. Growth capital will become more expensive and harder to access. So whether we're considering increased sales and marketing investments, or exploring tuck-in acquisitions, we should expect the bar for capital allocation to be higher. That will require us to be more thoughtful, more creative, and more disciplined in how we pursue growth. The domains business is perhaps the most interesting in this context. If we return to our core premise, risky capital is getting more expensive while secure, predictable cash flows are becoming more valuable. Then 2Cows Domains stands out.

Speaker Change: Growth capital will become more expensive and harder to access so whether we're considering increased sales and marketing investments or exploring tuck in acquisitions, we should expect the bar for capital allocation to be higher.

Elliot Noss: Growth capital will become more expensive and harder to access. Whether we're considering increased sales and marketing investments or exploring tuck-in acquisitions, we should expect the bar for capital allocation to be higher. That will require us to be more thoughtful, more creative, and more disciplined in how we pursue growth. The domains business is perhaps the most interesting in this context. If we return to our core premise, risky capital is getting more expensive, while secure, predictable cash flows are becoming more valuable, Tucows Domains stands out. What defines this business is the reliability and consistency of its cash flows. I'll put forward a hypothesis that in a higher-uncertainty environment, the cash generated by Tucows Domains may become more valuable than it was before. Because risk, after all, is relative.

Speaker Change: That will require us to be more thoughtful more creative and more disciplined in how we pursue growth.

The domains business is perhaps the most interesting in this context.

Speaker Change: If we return to our core premise risky capital is getting more expensive well secure predictable cash flows are becoming more valuable than two cows domains that stands out.

Speaker Change: It defines this business as the reliability and consistency of its cash flows and so I'll put forward a hypothesis.

Elliot Noss: What defines this business is the reliability and consistency of its cash flows. And so I'll put forward a hypothesis. that in a higher uncertainty environment, the cash generated by two cows domains may become more valuable than it was before. Because risk, after all, is relative.

Speaker Change: But at a higher uncertainty environment, the cash generated by two cows domains may become more valuable than it was before.

Speaker Change: Because risk after all is relative.

Speaker Change: Being thoughtful and strategic about capital in a world full of geopolitical uncertainty and shifting demographics will separate.

Elliot Noss: Being thoughtful and strategic about capital in a world full of geopolitical uncertainty and shifting demographics will separate not winners from losers but living from dead.

Elliot Noss: Being thoughtful and strategic about capital in a world full of geopolitical uncertainty and shifting demographics will separate not winners from losers, but living from dead. With that, I look forward to your written questions and exploring areas that interest you in greater detail. Again, please send your questions to ir@tucows.com by 15 May and look for our recorded Q&A audio responses and transcript of this call to be posted to the Tucows website on Tuesday, 27 May at approximately 5:00 PM Eastern Time. Thank you.

Speaker Change: Winners from losers, but delivering from that.

Speaker Change: With that I look forward to your written questions and exploring areas that interest you in greater detail again. Please send your questions to IR at <unk> Dot com by May 15th and look for a recorded Q&A audio responses and transcript to this call to be posted to the <unk> website on Tuesday may 10.

Elliot Noss: And with that, I look forward to your written questions and exploring areas that interest you in greater detail. Again, please send your questions to ir2cows.com by May 15th and look for our recorded Q&A audio responses and transcript to this call to be posted to the 2Cows website on Tuesday, May 27th at approximately 5 p.m. Eastern Time. Thank you.

Speaker Change: Seven at approximately five PM eastern time, thank you.