Tucows (TCX) AI Stock Analysis

• Market Cap: $213.15M
• Dividend Yield: N/A
• Average Volume (3M): 13.96K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• Revenue Growth: 8.03%
• EPS Growth: -5.09%
• Country: US
• Employees: 765
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -1.42
• Shares Outstanding: 11,078,410
• 10 Day Avg. Volume: 16,643
• 30 Day Avg. Volume: 13,965
• PEG Ratio: -0.13
• Price to Book (P/B): -1.97
• Price to Sales (P/S): 0.52
• P/FCF Ratio: -2.47
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: $20.00 ▲(9.35% Upside)

Tucows' overall stock score is driven by strong earnings call results, indicating strategic progress and growth in key segments. However, significant financial challenges and valuation concerns weigh heavily on the score.

Tucows Business Overview & Revenue Model

Company Description

Tucows Inc. (TCX) is a technology company that primarily operates in the internet services and telecommunications sectors. Founded in 1998, Tucows is best known for its domain name registration services, as well as providing a range of internet services including web hosting, email solutions, and digital certificates. The company also operates Ting, a mobile virtual network operator (MVNO) that offers wireless services to consumers in the United States and Canada. By focusing on delivering customer-centric solutions and leveraging its expertise in internet infrastructure, Tucows plays a significant role in the online ecosystem.

How the Company Makes Money

Tucows generates revenue through multiple streams, primarily from its domain name registration services, which include the sale and management of domain names for individuals and businesses. This sector is bolstered by the sale of additional services such as web hosting and email solutions, which provide recurring revenue through subscription models. Additionally, Tucows earns income from its Ting mobile service, where it charges customers for wireless plans and services. The company has partnerships with various registrars and resellers, expanding its reach in the domain registration market. Factors contributing to its earnings include the growing demand for online presence among businesses, customer retention through value-added services, and strategic marketing initiatives that enhance brand visibility.

Tucows Financial Statement Overview

Summary

Tucows faces significant financial challenges with negative profitability and cash flow metrics. High leverage and negative margins indicate potential risks, despite modest revenue growth.

Income Statement

Tucows has shown a modest revenue growth rate of 1.65% TTM, but profitability metrics are concerning with negative net profit and EBIT margins. The gross profit margin is relatively stable at 23.79% TTM, indicating some ability to cover costs, but the negative EBITDA margin highlights ongoing operational challenges.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio of 1.74 TTM, indicating significant reliance on debt financing. The return on equity is low at 3.04% TTM, reflecting limited profitability on shareholder investments. The equity ratio is not provided, but the high debt levels suggest potential financial instability.

Cash Flow

Cash flow analysis shows negative operating cash flow and free cash flow TTM, with a concerning free cash flow growth rate of -33.97%. The operating cash flow to net income ratio is negative, indicating cash flow issues relative to earnings. The free cash flow to net income ratio is high at 4.10, suggesting cash flow is not supporting net income effectively.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	384.73M	362.27M	339.34M	321.14M	304.34M	311.20M
Gross Profit	91.54M	83.03M	108.86M	78.25M	78.29M	85.48M
EBITDA	-10.39M	-1.82M	-12.19M	26.38M	39.88M	38.42M
Net Income	-96.26M	-109.86M	-96.20M	-27.57M	3.36M	5.78M
Balance Sheet
Total Assets	735.49M	758.80M	798.43M	664.75M	539.60M	451.90M
Cash, Cash Equivalents and Short-Term Investments	54.08M	56.90M	92.69M	23.50M	9.11M	8.31M
Total Debt	344.80M	513.12M	568.29M	256.01M	205.75M	132.67M
Total Liabilities	536.86M	854.10M	788.55M	568.09M	424.50M	347.20M
Stockholders Equity	198.64M	-95.30M	9.88M	96.66M	115.09M	104.70M
Cash Flow
Free Cash Flow	-32.58M	-76.20M	-97.35M	-117.62M	-44.31M	-8.43M
Operating Cash Flow	-7.95M	-19.75M	-4.77M	19.88M	29.64M	36.08M
Investing Cash Flow	-5.06M	-56.49M	-92.58M	-137.49M	-101.98M	-53.28M
Financing Cash Flow	-7.33M	44.50M	178.84M	132.01M	73.14M	5.12M

Tucows Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TCX, the sentiment is Positive. The current price of 18.29 is below the 20-day moving average (MA) of 18.69, below the 50-day MA of 18.49, and below the 200-day MA of 18.42, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 64.84 is Neutral, neither overbought nor oversold. The STOCH value of 72.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TCX.

Tucows Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDB	74 Outperform	$28.95B	―	-3.65%	―	21.90%	67.81%
ZS	71 Outperform	$50.33B	―	-2.70%	―	23.31%	31.04%
OKTA	63 Neutral	$15.14B	100.47	2.61%	―	12.68%	―
VRSN	62 Neutral	$22.21B	27.91	―	0.62%	5.47%	-0.03%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
GDDY	60 Neutral	$17.97B	22.75	369.45%	―	8.79%	-55.15%
TCX	52 Neutral	$213.15M	―	―	―	8.03%	-5.09%

Tucows Corporate Events

Tucows Reports Strong Q3 Performance with EBITDA Growth

Tucows Inc., a prominent player in the global internet services sector, is known for its diverse offerings including domain services, telecommunications software, and fiber-optic internet infrastructure. The company operates through its well-known brands such as Ting, Wavelo, and Tucows Domains, providing comprehensive internet solutions to a wide range of customers.

Tucows Extends Credit Agreement with Bank of Montreal

On September 8, 2025, Tucows Inc. and its subsidiaries entered into a one-year Extension Agreement with the Bank of Montreal, extending their existing Credit Agreement until September 22, 2027. The agreement maintains the revolving credit facility terms, including a $240 million commitment and the potential for a $60 million increase, while amending certain definitions related to financial covenants.

The most recent analyst rating on (TCX) stock is a Hold with a $18.50 price target. To see the full list of analyst forecasts on Tucows stock, see the TCX Stock Forecast page.

Tucows Earnings Call: Growth Amidst Challenges

Tucows’ recent earnings call painted a picture of robust growth tempered by certain challenges. The company showcased strong revenue growth across its business units, particularly in Domains and Wavelo, while effectively managing its debt. However, issues such as Ting’s profitability and declines in domain management, along with capital constraints, were highlighted as areas needing attention.

Tucows Reports Strong Q2 Growth in Revenue and Profitability

Tucows Inc. is a global leader in internet services, specializing in communications service technology, domain services, and fiber-optic internet infrastructure. The company operates through its brands, including Ting, Wavelo, and Tucows Domains, providing a range of services from fiber internet access to domain management.