Q2 2025 Tucows Inc Earnings Call - Pre-Recorded

With relevant links is also available on the Companys website, we will begin with opening remarks from Elliot Noss, President and CEO of 2010, followed by business remarks from David work C. O have to couch domains, Justin Reilly CEO of wavelength Elliot Noss on Ting Ivan.

[Company Representative] (Tucows): 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 Elliot Noss, President and CEO of Tucows Inc., followed by business remarks from David Woroch, CEO of Tucows Domains, Justin Reilly, CEO of Wavelo, Elliot Noss on Ting, Ivan Ivanov, Tucows CFO, who will discuss our financial results in detail, and we will finish with closing remarks from Elliot 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 send the questions via email to ir@tucows.com until Thursday, 14 August. 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, 26 August at approximately 5:00 PM Eastern Time.

Evanov, Tucows CFO, who will discuss our financial results in detail and we will finish with closing remarks from Elliot Noss in lieu of a live question and answer period. Following these remarks shareholders analysts and prospective investors are invited to submit questions to two cows management.

Please submit questions by E mail to IR at <unk> Dot Com until Thursday August 14th 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 August 26 at approximately five P M Eastern time.

We would also like to advise that the updated investor presentation, and the Tucows quarterly Kpis summary, which provides key metrics for all of our businesses for the last six quarters as well as for full years 2023 'twenty 'twenty four and 'twenty 25 year to date and also includes historical financial results is available in the <unk>.

[Company Representative] (Tucows): We would also like to advise that the updated investor presentation and the Tucows quarterly KPI summary, which provides key metrics for all of our businesses for the last 6 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. You'll notice that we are no longer adding new owned serviceable addresses, and instead, partner serviceable addresses are seeing large additions. As we monetize owned fiber network assets in certain markets, you will see some of our owned serviceable address numbers move to partner serviceable address totals, where we have sold our network assets but will remain the ISP. That was the case this quarter as addresses from certain owned markets were sold and became partner serviceable addresses. Now for management's prepared remarks.

<unk> section of the website.

You'll notice that we are no longer adding new owned serviceable addresses and instead partner serviceable addresses are seeing large additions as we monetize owned fiber network assets in certain markets you will see some of our own serviceable address numbers moved to partner serviceable address totals were we have sold or <unk>.

Work assets, but will remain the ISP.

That was the case this quarter as addresses from certain owned markets were sold and became partner serviceable addresses.

Now for managements prepared remarks on Thursday August 7th two cows issued a news release reporting its financial results for the second quarter ended June 30th 2025 that news release and the company's financial statements are available on the company's website at <unk> Dot com under the investors section.

[Company Representative] (Tucows): On Thursday, 7 August, Tucows issued a news release reporting its financial results for the Q2 ended 30 June 2025. That news release and the company's financial statements are available on the company's website at tucows.com under the Investors section. 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. Now I would like to turn the call over to Tucows President and Chief Executive Officer, Elliot Noss. Go ahead, Elliot.

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 now.

Now I would like to turn the call over to <unk>, President and Chief Executive Officer Elliot Noss.

Go ahead Elliot.

Midway through 2025.

Elliot Noss: Midway through 2025, Tucows' consolidated top-line growth is continuing the trend of the last four fiscal years and first quarter, with a 10% year-over-year increase in Q2. Gross profit grew 6% year over year, and adjusted EBITDA increased 37% to $12.6 million in Q2 and to $26.2 million year to date. Our year-to-date results put us slightly ahead of pace to achieve our full-year adjusted EBITDA guidance of $47 million. Outperformance in both Domains and Wavelo drove the upside, more than offsetting the corporate level expenses we expect to recognize in H2. Corporate net debt now stands at $190.3 million, marking a fifth straight quarterly decline and bringing net leverage to 3.14 times, with interest coverage at 3.99 times, comfortably within our covenants. Although we chose not to pay down the syndicated loan this quarter, that was a decision to preserve flexibility.

<unk> consolidated topline growth is continuing the trend of the last four fiscal years and first quarter with a 10% year over year increase in Q2 gross profit grew 6% year over year and adjusted EBITDA increased 37% to $12 6 million in Q2 and to 'twenty six.

Point 2 million year to date.

Our year to date results put us slightly ahead of pace to achieve our full year adjusted EBITDA guidance of $47 million outperformance in both domains and wave low drove the upside more than offsetting the corporate level expenses, we expect to recognize in the second half corporate debt now stands at 190.

$3 million, marking the fifth straight quarterly decline and bringing net leverage to 3.14 times with interest coverage at 3.99 times comfortably within our covenant, although we chose not to pay down the syndicated loan this quarter that was a decision to preserve flexibility are.

Long standing record of steadily reducing the facility remains intact and capital allocation, whether we pay down debt or hold on to our cash for other purposes is a choice we make on a quarterly basis, we continue to navigate the path of thoughtful execution and choices of direction and with that I'll turn it over to Dave.

Elliot Noss: Our longstanding record of steadily reducing the facility remains intact, and capital allocation, whether we pay down debt or hold on to our cash for other purposes, is a choice we make on a quarterly basis. We continue to navigate the path of thoughtful execution and choices of direction. With that, I'll turn it over to David Woroch, CEO of Tucows Domains.

Org CEO of two cows debates. Thanks, Elliot 2000 domains delivered another solid quarter in Q2 with.

David Woroch: Thanks, Elliot. Tucows Domains delivered another solid quarter in Q2, with each of revenue, gross margin, and adjusted EBITDA growing year-over-year. These gains build on the year-over-year growth and momentum in Q1 and highlight the steady, predictable, and reliable nature of our business. In addition, we continue to build our registry services business and are pleased to share that we recently signed a contract with Radix, a registry operator, to be their technical services provider. Planning is underway with the migration to our platform expected towards the end of this year. I will talk further about this exciting news in a moment. Revenue rose 8% year-over-year in Q2. Gross margin expanded 14%, and adjusted EBITDA grew 12%. Through H1, adjusted EBITDA was $24 million and up 13% year-over-year, reflecting the operating leverage within the business.

With each of revenue gross margin and adjusted EBITDA growing year over year.

These gains build on the year over year growth and momentum in Q1, and highlight the steady predictable and reliable nature of our business.

In addition, we continued to build our registry services business and are pleased to share that we recently signed a contract with robotics, a registry operator to be their technical services provider.

Planning is underway with the migration to our platform expected towards the end of this year.

I will talk further about this exciting news in a moment revenue rose 8% year over year in Q2 gross margin expanded 14% and adjusted EBIT grew 12%.

Through the first half of the year, adjusted EBITDA was $24 million and up 13% year over year, reflecting the operating leverage within the business.

Within domain services, both wholesale and retail performed well.

David Woroch: Within domain services, both Wholesale and Retail performed well. Wholesale revenue and margin benefited from healthy reseller demand and higher margin value-added services, while Retail posted steady increases in both top line and gross margin. Q2 revenue for the Wholesale channel rose 8% year-over-year to $57.3 million, compared to $53 million for Q2 of last year. Gross margin increased 15% to $15.7 million from $13.6 million last year. Within the Wholesale channel, domain services delivered gross margin of $10.4 million, up 8% from $9.6 million in Q2 2024. Value-added services had another exceptional year-over-year gain in gross margin of 32%, delivering $5.3 million this quarter, driven by strong sales from our expiry stream. Our Retail channel saw strong growth in Q2, with revenue increasing 10% year-over-year to $10.3 million. Gross margin expanded 11% to $5.9 million, reflecting higher margins in the Retail segment.

Wholesale revenue and margin benefited from healthy reseller demand and higher margin value added services, while retail posted steady increases in both topline and gross margin.

Q2 revenue for the wholesale channel rose, 8% year over year to $57 3 million compared to 53 million for Q2 of last year.

Gross margin increased 15%.

To $15 7 million from $13 6 million last year.

Within the wholesale channel domain services delivered gross margin of $10 4 million up 8% from $9 6 million in Q2 2024.

Value added services had another exceptional year over year gain in gross margin of 32% delivering $5 3 million this quarter driven by strong sales from our expiry stream.

Our retail channel saw strong growth in Q2 with revenue, increasing 10% year over year to $10 3 million.

Gross margin expanded 11% to $5 9 million, reflecting higher margins in the retail segment.

As anticipated total domains under management and transaction volumes declined modestly down, 2% and 3% respectively, reflecting the continued impact of one reseller that has moved a portion of its portfolio in house.

David Woroch: As anticipated, total domains under management and transaction volumes declined modestly, down 2% and 3% respectively, reflecting the continued impact of one reseller that has moved a portion of its portfolio in-house. The overall combined renewal rate for all TLDs across all the Tucows Domains brands was 75%, a slight decline from previous quarters, but within our normal historical range and above the industry average. Turning to our growth initiatives and returning specifically to our registry services business, we continue to build this business and add new clients, both small and large. In previous quarters, I've talked about being selected by NIXI, the National Internet Exchange of India and the registry operator of the .in country code TLD. We completed the migration of NIXI's 4 million domains to our platform at the end of May as planned and scheduled. Our engagement with Radix is equally exciting.

The overall combined renewal rate for all T. All these across all of the two cows domains brands with 75%.

A slight decline from previous quarters, but within our normal historical range and above the industry average turning to our growth initiatives and returning specifically to our registry services business. We continue to build this business and add new clients, both small and large.

In previous quarters, I've talked about being selected by nixie, the national Internet exchange of India, and the registry operator of the Dod I N country code TLD.

We completed the migration of <unk> 4 million domains to our platform at the end of May as planned and scheduled.

Our engagement with robotics is equally exciting.

<unk> is an industry leader there.

David Woroch: Radix is an industry leader. They are the registry operator for a portfolio of 11 TLDs, including marquee extensions like .online, .store, .tech, .site, .space, and .fun. Radix is widely recognized for pairing great and meaningful TLDs with world-class marketing that drives broad adoption. Our teams have been collaborating and planning this project for some time now. In total, we will be migrating just over 10 million domains across the 11 Radix TLDs onto our platform towards the end of this year. Radix has the largest market share in the new gTLD segment at 20%. As I've said before, we're focused on the profitability of our business, and while we do not focus on domains under management as a key measurement, it is worth noting that this will lift the Tucows registry segment to managing close to 17 million domains.

They are the registry operator for a portfolio of 11, tld's, including marquee extensions like online Dot store Dot Tech does site dot space and not fun.

<unk> is widely recognized for pairing great and meaningful Tld's with world class marketing that drives broad adoption.

Our teams have been collaborating and planning this project for some time now.

In total we will be migrating just over 10 million domains across the 11, Roddick steel DS onto our platform towards the end of this year.

<unk> is the largest market share in the new G. T. L D segment at 20%.

As I've said before we're focused on the profitability of our business.

And while we do not focus on domains under management is a key measurement. It is worth noting that this will lift the two girls registry segments to managing close to 17 million domains.

This contract makes two cows the infrastructure provider of choice for two of the largest registries globally and positions us as a strong contender for back end registry services in the next wave of New G. T. L. D's with applications starting in 2026 in summary, two gals domains continues.

David Woroch: This contract makes Tucows the infrastructure provider of choice for two of the largest registries globally and positions us as a strong contender for back-end registry services in the next wave of new gTLDs, with applications starting in 2026. In summary, Tucows Domains continues to demonstrate the strength of its core franchise, delivering consistent revenue, margin, and EBITDA gains while securing transformative contracts that help drive our long-term growth trajectory. Looking ahead, we will focus on the execution of the Radix migration, the continued development of our hosting and billing initiatives, a disciplined pursuit of the new gTLD opportunities slated for 2026, and the ongoing operational excellence we are known for. Thanks for listening. Now over to Justin Reilly, CEO of Wavelo.

To demonstrate the strength of its core franchise, delivering consistent revenue margin and the EBIT gains while securing transformative contracts that helped drive our long term growth trajectory.

Looking ahead, we will focus on the execution of the Roddick migration to.

The continued development of our hosting and billing initiatives.

Disciplined pursuit of the new G TLD opportunities slated for 2026 and the ongoing operational excellence, we are known for.

For listening and now over to Justin Reilly CEO of Weibo.

Thanks, Dave.

The second quarter of 2025, now marks our best quarters since inception, surpassing the record we set just last quarter wavelengths revenue was $12 7 million in Q2, and 11, 1% increase from last quarter and a 25% increase from Q2 2024 gross margin was $12 6 million.

Justin Reilly: Thanks, Dave. The Q2 2025 now marks our best quarter since inception, surpassing the record we set just last quarter. Wavelo's revenue was $12.7 million in Q2, an 11.1% increase from last quarter and a 20.5% increase from Q2 2024. Gross margin was $12.6 million this quarter, an 11.6% increase from last quarter and a 23.6% increase from Q2 2024. Adjusted EBITDA for Q2 was $5.4 million, an increase of 20.5% quarter-over-quarter and a 37% increase from Q2 2024. The growth year-over-year and quarter-over-quarter is fueled by existing customer subscriber growth, as well as the new EchoStar rate card introduced as part of the 4-year renewal at the start of 2025. As a reminder, we experience outsized revenue recognition annually in Q2 related to bundled professional services included as part of the platform services provided to EchoStar.

This quarter and 11, 6% increase from last quarter and a 23, 6% increase from Q2 2024 adjusted EBITDA for Q2 was $5 4 million, an increase of 25% quarter over quarter and a 37% increase from Q2 2024 the growth year over year.

And quarter over quarter is fueled by existing customer subscriber growth as well as the new Echostar rate card introduced as part of a four year renewal at the start of 2025 as a reminder, we experienced outsized revenue recognition annually in Q2 related to bundled professional services included as part of the platform services provided.

Echostar adjusting for this revenues grew 0.9% compared to last quarter as we saw additional subscribers come onto the platform. Our Q2 results are a testament to our team's discipline and agility that we've continued to drive growth and profitability amid a dynamic macro environment on organic growth. We are seeing continued.

Justin Reilly: Adjusting for this, revenues grew 0.9% compared to last quarter, as we saw additional subscribers come onto the platform. Our Q2 results are a testament to our team's discipline and agility that we've continued to drive growth and profitability amid a dynamic macro environment. On organic growth, we are seeing continued momentum across tier 1 and tier 2 opportunities, with several advancing steadily through our pipeline. We've made the conscious decision to deprioritize smaller MVNO and ISP opportunities where pricing pressure dominates and our enterprise-grade platform is underutilized. This both frees up our small but mighty sales team's time to work larger deals and rightly focuses our R&D capacity with efforts consistent with our long-term growth strategy. The pipeline now consists of two distinct customer profiles, large greenfield MVNOs and ISPs, and separately established tier 1 and tier 2 fixed and mobile operators that are constrained by chronic vendor lock-in.

Momentum across tier one and tier two opportunities with several advancing steadily through our pipeline. We've made the conscious decision to de prioritize smaller immuno and ISP opportunities where pricing pressure dominates in our enterprise grade platform is underutilized. This both frees up our small but mighty sales teams time to work larger.

Deals and rightly focuses our R&D capacity with efforts consistent with our long term growth strategy. The pipeline now consist of two distinct customer profiles large greenfield in via <unk>, and Isps and separately established tier one and tier two fixed and mobile operators that are constrain.

<unk> by chronic vendor lock in the latter cohort is one that will most benefit from an AI first future, but is unable to access its most valuable data and is underserved by today's AI solutions, which are mostly built for a general purpose audience Weibo's event stream and tier one grade platform are perfectly positioned.

Justin Reilly: The latter cohort is one that will most benefit from an AI-first future, but is unable to access its most valuable data and is underserved by today's AI solutions, which are mostly built for a general purpose audience. Wavelo's event stream and tier 1 grade platform are perfectly positioned to help unlock this future for large operators. On inorganic growth, many of our competitors were founded in the '80s and '90s. Their business models, much like their technology, were built for an era in which large human workforces custom-tailored software for not only each operator but for each line of business. If SaaS has started to disrupt this model, then AI will put it to bed. In the last 12 months, I've seen more businesses consider moving into a process than in the previous 3 years, largely due to aging business models and aging founders.

<unk> to help unlock this future for large operators on inorganic growth. Many of our competitors were founded in the eighties and nineties their business models much like their technology were built for an era in which large human workforces custom tailored software for not only each operator, but for each line of business is SaaS has started to dip.

Through this model then AI will put it to bed in the last 12 months I've seen more businesses consider moving into a process than in the previous three years largely due to aging business models and aging founders I expect the next few years will be full of M&A as the cost to re factor old software stacks with AI races.

Justin Reilly: I expect that the next few years will be full of M&A as the cost to refactor old software stacks with AI races to zero. Last quarter, I talked about the important task of retraining the modern Internet workforce software engineers. I also shared that Wavelo benefits from a culture of curiosity, which acts as a tailwind in the face of generational change. For our most curious engineers, this means that more than 40% of their code is written by AI today. As we roll out more powerful tools that are trained on Wavelo's code base rather than the aggregate code of the Internet, we expect adoption to increase. This is important as we've solved event-driven problems in our software that no one else has been able to solve.

Two zero last quarter I talked about the important task of retraining, the modern Internet workforce software engineers.

I also shared that <unk> benefits from a culture of curiosity, which acts as a tailwind in the face of generational change.

For our most curious engineers this means that more than 40% of their code is written by AI today as we rollout more powerful tools that are trained on wave Lowe's code base, rather than the aggregate code of the Internet. We expect adoption to increase this is important as we solve the vent driven problems in our Saul.

<unk> that no one else has been able to solve democratizing, our expert knowledge across our engineering teams widens the aperture for efficiency and further lays the groundwork for wave Lowe's AI first future. Thanks.

Justin Reilly: Democratizing our expert knowledge across our engineering teams widens the aperture for efficiency and further lays the groundwork for Wavelo's AI-first future. Thanks for listening. Now over to Elliot.

Thanks for listening and now over to Elliot Thanks, Justin.

Year over year things top line growth and large improvement in adjusted EBITDA continued in Q2 revenue at $16 4 million in Q2.

Elliot Noss: Thanks, Justin. Year over year, Ting's top-line growth and large improvement in adjusted EBITDA continued in Q2. Revenue hit $16.4 million in Q2, a 12% increase year over year. Growth was driven by small ARPU improvements, growth in enterprise revenue, and most impactfully, an 8% increase in subscribers, taking us to 52,100 total subscribers. Ting gross margin grew from $9.8 million to $10.4 million, excluding a one-time $2.7 million non-cash lease accounting adjustment. Ting's adjusted EBITDA also continues to trend in a positive direction with a small loss of $600,000 in Q2, down from $6.4 million in Q2 of 2024. As above, that loss is before the non-cash adjustment I mentioned. I will also start to regularly, but likely not each quarter, share information on the part of the Ting business that is outside of the residential fiber ISP. This includes enterprise as well as fixed wireless.

<unk> percent increase year over year growth was driven by small <unk> improvements growth in enterprise revenue and most impactful <unk>, an 8% increase in subscribers, taking us to 52100 total subscribers teen gross margin grew from $9 8 million to $10 4 million excluding.

A one time $2 7 million non cash lease accounting adjustment things. Adjusted EBITDA also continues to trend in a positive direction with a small loss of $600000 in Q2 down from $6 4 million in Q2 of 2024 as above that losses before.

A noncash adjustment I mentioned.

Also start to regularly but likely not each quarter share information on the part of the Ting business that is outside of the residential fiber ISP. This.

This includes enterprise as well as fixed wireless fixed wireless is primarily through our simply bits and Cedar acquisitions. I think this is useful for investors as it identifies a small but profitable elements of the Ting business that is generally overlooked.

Elliot Noss: Fixed wireless is primarily through our Simplybits and Cedar acquisitions. I think this is useful for investors as it identifies a small but profitable element of the Ting business that is generally overlooked. I will refer to this as enterprise and other. In Q2 2025, this segment generated $3.9 million in revenue and $1.3 million in contribution margin, a $720,000 improvement year-over-year, driven by a significant reduction in people costs and continued growth in enterprise and bulk customers. We also signed a landmark contract with the third-largest US senior living operator that once fully online in 2027, will add 12,700 bulk units and over $6 million in annual revenue. As we flagged last quarter, we've been pursuing the sale of non-strategic assets. These are assets that we had previously acquired or developed where we no longer have the capital to build.

Refer to this as enterprise and other.

In Q2 2025.

This segment generated $3 $9 million of revenue and $1 $3 million and contribution margin of $720000 improvement year over year, driven by a significant reduction in people costs and continued growth in enterprise and bulk customers.

Also signed a landmark contract with a third largest U S senior living operator that once fully online in 2027 will add 12700 bulk units and over $6 million in annual revenue as we flagged last quarter, we've been pursuing the sale of non strategic assets.

These are assets that we had previously acquired or developed where we no longer have the capital to build to this point, we have successfully sold non strategic assets for a total value in excess of $15 million in three separate transactions. These transactions covered non core.

Elliot Noss: To this point, we have successfully sold non-strategic assets for a total value in excess of $15 million in three separate transactions. These transactions covered non-core assets in Arizona and in our Cedar footprint in Southwest Colorado and northern New Mexico. We placed them in the hands of those who will build fiber in those footprints as appropriate. Our transformation from building networks to a pure-play ISP is increasingly visible this quarter, particularly in reduced expenses, year-over-year improvements in adjusted EBITDA, and serviceable address totals. In our partner markets of Memphis and Colorado Springs, our partners are now delivering addresses consistently at the expected cadence, and we are heads down working on improved marketing in those two footprints. Last year, I spoke about pausing marketing to analyze which customer acquisition tactics delivered returns and which did not.

Core assets in Arizona, and in our Cedar footprint in southwest, Colorado, and Northern New Mexico.

We placed them in the hands of those who will build fiber in those footprints as appropriate our transformation from building networks to a pure play ISP is increasingly visible this quarter, particularly in reduced expenses year over year improvements in adjusted EBITDA and serviceable address totals and our partner markets of Memphis in Colorado.

Springs, our partners are now delivering addresses consistently at the expected cadence and we are heads down working on improved marketing and those two footprints last year I spoke about pausing marketing to analyze which customer acquisition tactics delivered returns and which did not that review is.

Complete and by late Q2 much of the structural work is also complete and we are now operating where we are not only again driving brand value, but also driving net adds it is time to start building on winning tactics early Q3 metrics show subscriber momentum returning.

Elliot Noss: That review is complete, and by late Q2, much of the structural work is also complete, and we are now operating where we are not only again driving brand value, but also driving net adds. It is time to start building on winning tactics. Early Q3 metrics show subscriber momentum returning, and we view Q2 as the trough for net adds. Our marketing team is now fully staffed and executing at pace, and we expect the biggest near-term efficiency gains to come from applying AI tools that lower acquisition costs and improve conversion. Comparing June of this year to January of 2024, the last full month before we started to effect change, we see dramatic improvements in key KPIs in both direct marketing and door-to-door.

And we view Q2 as the trough for net adds our marketing team is now fully staffed and executing at pace and we expect the biggest near term efficiency gains to come from applying AI tools that lower acquisition costs and improve conversion comparing June of this year to January of 2002.

24, the last full month before we started to affect change we see dramatic improvements in key kpis in both direct marketing and door to door, we see CAC per order improving by nearly 40% with people costs in marketing being asked by over 75%.

Elliot Noss: We see CAC per order improving by nearly 40%, with people costs in marketing being cut by over 75%. We increased conversion from the top of the funnel significantly, and marketing content is both better and produced more efficiently. We brought door-to-door in-house and have seen orders per rep increase by 20% and cost per order reduced by nearly 40%. Door-to-door is the most important tactic in fiber to the home sales, and we are limited here only by our ability to recruit. Finally, we continue to see the longer-term trend towards partnership models in infrastructure markets with KKR, BlackRock, Brookfield, EQT, and many other major players all leaning into separating infrastructure construction from provision of services. We see this as a validation of our pivot and a tailwind for pure-play ISP models like Ting. Now we'll hear from our CFO, Ivan Ivanov, who will discuss our financial results in detail.

We increased conversion from the top of the funnel significantly in marketing content is both better and produced more efficiently. We brought door to door in house and have seen orders per rep increased by 20% and cost per order reduced by nearly 40% door to door is the most important tactic and fiber to.

Home sales and we're limited here only by our ability to recruit.

Finally, we continue to see the longer term trend towards partnership models and infrastructure markets with KKR, Blackrock Brookfield EQT and many other major players all leaning into separating infrastructure construction for provision of services. We see this as a validation of our pivot.

The tailwind for pure play ISP models like tick.

Now, we'll hear from our CFO, Ivan Ivan off who will discuss our financial results in detail. Thank you Elliot and thank you everyone for joining us today.

Ivan Ivanov: Thank you, Elliot, and thank you everyone for joining us today. I am pleased to report another strong quarter that demonstrates the strength and resilience of our diversified business model. The Q2 kept us firmly on the path we laid out at the start of the year of continued top-line momentum, growing adjusted EBITDA, and disciplined capital allocation. At the consolidated level, revenue reached $98.5 million, a 10% year-over-year increase, marking our fourth consecutive quarter of double-digit top-line growth, driven by strong contributions from each business unit. Gross profit rose to $22.1 million, up 6% year-over-year, despite absorbing a one-time $2.7 million non-cash lease expense adjustment at Ting. Adjusted EBITDA expanded 37% to $12.6 million, lifting year-to-date adjusted EBITDA to $26.2 million. That leaves us slightly ahead of the run rate required to meet our full-year guidance of $47 million. Moving to each business unit's performance highlights.

I am pleased to report another strong quarter that demonstrates the strength and resilience of our diversified business model.

The second quarter kept us firmly on the path we laid out at the start of the year of continued top line momentum growing adjusted EBITDA and disciplined capital allocation.

At the consolidated level revenue reached $98 5 million at 10% year over year increase marking our fourth consecutive quarter of double digit top line growth.

Driven by strong contributions from each business unit.

Gross profit rose to $22 1 million up 6% year over year, despite absorbing a onetime $2 7 million noncash lease expense adjustments at <unk>.

Adjusted EBITDA expanded 37% to $12 6 million lifting year to date, adjusted EBITDA to $26 2 million.

That leaves US slightly ahead of their run rates required to meet our full year guidance of $47 million.

Moving to each business units performance highlights.

The domains business continued to drive earnings with topline revenue of 67 6 million, an increase of 8% year over year.

Ivan Ivanov: The Domains business continued to drive earnings with top-line revenue of $67.6 million, an increase of 8% year-over-year. Gross margin grew 14%, driven by continued strong wholesale performance, as well as increased contribution from both our retail channel and value-added services, which also include our expiry auction stream. As a result, Domains adjusted EBITDA improved 12% year-over-year to $12.5 million. Wavelo recorded its best quarter to date. Revenue increased 21% to $12.7 million. Gross margin increased 24% to $12.6 million, and adjusted EBITDA rose 37%, reflecting the upgraded rate card with Dish, subscriber growth, and reduced churn, along with a careful cost control across the business. Moving on to Ting. Ting generated 13% revenue growth to $16.4 million on an 8% subscriber lift and higher ARPU.

Gross margin grew 14% driven by continued strong wholesale performance as well as increased contribution from both our retail channel and value added services, which also include our X three option stream as a result domains adjusted EBITDA improved 12%.

Year over year to $12 5 million.

Way below recorded its best quarter to date.

Revenue increased 21% to $12 7 million gross margin increased 24% to $12 6 million.

<unk> adjusted EBITDA Rose 37%.

Collecting the upgrade at the Red part with dish subscriber growth and reduced churn along with our careful cost control across the business.

Moving on to <unk>.

<unk> generated 13% revenue growth to $16 4 million on an 8% subscriber lift and higher ARPA.

Gross margin was reduced this quarter to $7 7 million from $9 8 million in Q2 of 24 by the onetime lease expense adjustment I mentioned earlier.

Ivan Ivanov: Gross margin was reduced this quarter to $7.7 million from $9.8 million in Q2 2024 by the one-time lease expense adjustment I mentioned earlier. Excluding that item, margin would have risen both sequentially as well as year-over-year. Ting reported adjusted EBITDA loss of $3.7 million for the quarter. Excluding the impact of the non-cash lease adjustment, Ting's adjusted EBITDA improved by $5.5 million year-over-year. We remain hyper-focused on bringing Ting to profitability. Finally, the corporate segment reported revenues of $1.8 million, down slightly from $2 million a year ago with an adjusted EBITDA loss of $1.7 million. Moving on to cash and balance sheet. During Q2, we generated $6.6 million in cash from operating activities and ended June with $52 million in cash and equivalents, as well as an additional $16.6 million in restricted cash and secured notes reserve funds.

Excluding that item margin would have reason both sequentially as well as year over year.

<unk> reported adjusted EBITDA loss of $3 7 million for the quarter.

Excluding the impact of the noncash lease adjustment <unk> adjusted EBITDA improved by $5 5 million year over year.

We remain hyper focused on bringing thing to profitability.

And finally, the corporate segment reported revenues of $1 8 million down slightly from $2 million a year ago with an adjusted EBITDA loss of $1 7 million.

Moving on to cash and balance sheet.

During the second quarter, we generated $6 6 million in cash from operating activities.

And ended June with $52 million in cash and equivalents.

As well as an additional $16 6 million in the restricted cash and secured notes reserve funds.

Capital expenditures remained low at $3 5 million for the quarter consistent with our shift to partner markets in fiber.

Ivan Ivanov: Capital expenditures remained low at $3.5 million for the quarter, consistent with our shift to partner markets in fiber, and we continued to recycle capital by selling non-strategic assets. In fact, during Q2, we sold property and equipment along with inventory for total proceeds of $11 million. The sale resulted in a gain of $2.1 million. In addition, subsequent to Q2, we completed an additional sale of certain property and equipment and intangible assets for $7 million, generating a gain of $3.6 million, which will be reflected in Q3's results.

And we continue to recycle capital by selling non strategic assets.

In fact during the second quarter, we sold property and equipment, along with inventory for total proceeds of $11 million.

This sale resulted in a gain of $2 1 million.

In addition, subsequent to the second quarter, we completed an additional sale of certain property and equipment and intangible assets were 7 million generating a gain of $3 6 million, which will be reflected in the third quarter's results our corporate net debt as the.

Find under our covenants sales to $193 million down for the eighth consecutive quarter, giving us net leverage of 314 times EBITDA and improved interest coverage of trade up 99 times, and leaving us well inside our covenants.

Ivan Ivanov: Our corporate net debt, as defined under our covenants, fell to $190.3 million, down for the fifth consecutive quarter, giving us net leverage of 3.14x EBITDA and improved interest coverage of 3.99x, and leaving us well inside our covenants. Separately, as of quarter end, on a net basis, the Ting Fiber business carried $289.6 million in asset-backed securitized notes and $122.2 million in redeemable preferred equity. Looking ahead, we have clear catalysts that give us line of sight to continued margin expansion. These include the 10 million domain Radix migration to Tucows Domains starting in November, Wavelo's continued momentum of growth, and Ting's pivot to a capitalized demand-driven model. These factors combined position us well to achieve our $47 million adjusted EBITDA goal while continuing to improve our corporate leverage. With that, thank you, and now I'll turn it back over to Elliot.

Separately as of quarter end on a net basis, the ink fiber business carry $299 6 million in asset backed securitized notes and $122 2 million in the redeemable preferred equity.

Looking ahead, we have clear catalyst that gave us line of sight to continued margin expansion.

These include the 10 million domain Iridex migration to two cows domains starting in November.

<unk> continued momentum of growth.

And thanks to a capital light demand driven model. These factors combined position us well to achieve our $47 million adjusted EBITDA goal, while continuing to improve our corporate leverage.

With that thank you and now I'll turn it back over to Elliot. Thank you Ivan.

We finished the first half of 2025 with the company performing in line with expectations domains and wave low are ahead of plan. While team continues its significant transformation through the first half of the year. The economy is sending mixed signals with the shape of the yield curve and the stock market, telling very different stories.

Elliot Noss: Thank you, Ivan. We finished H1 2025 with the company performing in line with expectations. Domains and Wavelo are ahead of plan, while Ting continues its significant transformation. Through H1, the economy is sending mixed signals with the shape of the yield curve and the stock market telling very different stories. I could list multiple economic indicators on each side of the ledger, we continue to view the world as one where we should be prudent and conservative. We know our balance sheet does not reflect that yet. Our focus is on improving it. Ting's H1 was defined by change. We reduced operating expenses by approximately 60% year over year. We further streamlined operations through the sale of smaller non-core footprints and simplified the business. Customer service has become more efficient while retaining industry-leading churn and high ARPU.

I could list multiple economic indicators on each side of the ledger, but we continue to view the world as one where we should be prudent and conservative we know our balance sheet does not reflect that yet our focus is on improving.

<unk> first half was defined by change.

We reduced operating expenses by approximately 60% year over year, we further streamlined operations through the sale of smaller noncore footprints and simplified the business customer service has become more efficient, while retaining industry, leading churn and high ARPA we.

We also completed a full reset of our marketing function.

Elliot Noss: We also completed a full reset of our marketing function. After extensive testing, we're now ready to ramp spend again with a focused, efficient, data-driven approach aimed at reaching the right customers at the right times. This marks a fundamentally different posture from a year ago. Ting's team remains one of its greatest strengths. As AI reshapes how work is done, from producing marketing content, to better customer experience, to improving door-to-door recruitment, we believe our smart, committed workforce gives us an edge relative to both incumbents and smaller players like ourselves. More broadly, the US fiber market is transitioning from hype to hard execution. With roughly half the country still to be built, capital is consolidating, strategies are shifting, and spreadsheet assumptions are being rethought. At the same time, demand continues to grow.

After extensive testing, we're now ready to ramp spend again with a focused efficient data driven approach aimed at reaching the right customers at the right times. This marks a fundamentally different cost share from a year ago things team remains one of its greatest strengths is AI reshape.

Dips how work is done for producing marketing content to better customer experience to improving door to door recruitment. We believe our smart committed workforce gives us an edge relative to both incumbents and smaller players like ourselves more broadly the U S fiber market is transitioning from Hite.

It's a hard execution with roughly half the country still to be built.

Capital is consolidated strategies are shifting and spreadsheet assumptions are being rethought at the same time demand continues to grow.

Cable is losing ground to both fiber on the Hyatt and fixed wireless on the low end of the market, while mobile convergent strategies remain prominent with only thing actually offering a converged customer experience and seeing customers with mobile churn, 30% to 40% less team stands.

Elliot Noss: Cable is losing ground to both fiber on the high end and fixed wireless on the low end of the market. While mobile convergence strategies remain prominent, with only Ting actually offering a converged customer experience, and Ting customers with mobile churn 30% to 40% less. Ting stands out in this environment. Our churn is well below industry norms. Our penetration in many markets exceeds what others target long term. Our converged fiber mobile product uses mobile to drive fiber, not the other way around. Our constraint is capital. Ting is lean, differentiated, and resonating with customers. Our ability to scale is limited by our balance sheet. We are actively evaluating strategic paths to unlock the value we've built and support long-term success. With that, I look forward to your written questions and exploring areas that interest you in greater detail.

In this environment, our churn is well below industry norms, our penetration in many markets exceeds what others target long term and our converged fiber mobile product uses mobile to drive fiber not the other way around our constraint is capital.

Ting is leeann differentiated and resonating with customers, but our ability to scale is limited by our balance sheet. We are actively evaluating strategic path to unlock the value, we built and support long term success and with that I look forward to your written questions and exploring areas that interest you with greater detail.

Again, please send your questions to IR at <unk> Dot Com by August 14th and look for a recorded Q&A audio response and transcript to this call to be posted to the <unk> website on Tuesday August 26 at approximately five PM Eastern time. Thank you.

Elliot Noss: Again, please send your questions to ir@tucows.com by 14 August. Look for our recorded Q&A audio response and transcript to this call to be posted to the Tucows website on Tuesday, 26 August at approximately 5:00 PM Eastern Time. Thank you.