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Tucows Inc. Q4 2025 Investor Update NASDAQ TCX | TSX TC Q4 2025 Investor Presentation
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Tucows Inc. Q4 2025 Investor Update NASDAQ TCX | TSX TC |Tucows Inc. Q4 2025 Investor Update NASDAQ TCX | TSX TC | Safe harbor statement 2 This presentation may contain forward-looking statements, relating to the Companyʼs operations or to the environment in which it operates, which are based on Tucows Inc.ʼs operations, estimates, forecasts and projections. These statements are not guarantees of future performance and are subject to important risks, uncertainties and assumptions concerning future conditions that may ultimately prove to be inaccurate or differ materially from actual future events or results. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. Consequently, investors should not place undue reliance on these forward-looking statements, which are based on Tucows Inc.ʼs current expectations, estimates, projections, beliefs and assumptions. These forward-looking statements speak only as of the date of this presentation and are based upon the information available to Tucows Inc. at this time. Tucows Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Tucows Inc. Q4 2025 Investor UpdateTucows Inc. Q4 2025 Investor Update
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Tucows Inc. Q4 2025 Investor Update NASDAQ TCX | TSX TC |Tucows Inc. Q4 2025 Investor Update NASDAQ TCX | TSX TC | Table of contents Section Subject Slide Reference 01 Tucows Business 4 02 Tucows Domains 10 03 Wavelo 14 04 Ting 18 05 Quarterly Performance 21 06 Tucows as an Investment 25 07 Investor Resources 27 3
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Tucows Inc. Q4 2025 Investor Update NASDAQ TCX | TSX TC | Portfolio of tech businesses Balancing cash generation with long-term growth 4
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Corporate parent allocating capital and providing shared services to three operating segments The leading global provider of wholesale domain registration and related services Providing event-driven, cloud-based software thatʼs replacing outdated systems behind global telecommunications Delivering subscribed services over owned and leased fiber-to-the-premise networks PLATFORM SERVICES FIBER INTERNET SERVICES Tucows | Business structure and function 5Tucows Inc. Q4 2025 Investor Update NASDAQ TCX | TSX TC | DOMAIN SERVICES
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Portfolio of tech businesses generating consistent revenue and margin from high-volume subscription services, while carefully investing in growth Reliable cash flow + dominant position in wholesale domains market A high margin, scalable growth business within the Tucows portfolio. Long-term growth potential from next generation telecom services Tucows | Investment proposition 6Tucows Inc. Q4 2025 Investor Update NASDAQ TCX | TSX TC | PLATFORM SERVICES FIBER INTERNET SERVICESDOMAIN SERVICES
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Tucows Inc. Q4 2025 Investor Update NASDAQ TCX | TSX TC | 1. Adjusted EBITDA excludes depreciation, amortization of intangible assets, income tax provision, interest expense, accretion of contingent consideration, stock-based compensation, asset impairment, gains and losses from unrealized foreign currency transactions and costs that are not indicative of ongoing performance (profitability), including acquisition and transition costs. Prior to 2013 Adjusted EBITDA included net deferred revenue and did not included foreign currency transactions or acquisition and transition costs) 2. Adjusted EBITDA for 2017 reflects the impact of the purchase price accounting adjustment related to the fair value write down of deferred revenue from the Enom acquisition, which lowered Adjusted EBITDA by $7.8 million. Adjusted EBITDA for 2019 reflects the impact of the purchase price accounting adjustment related to the fair value write down of deferred revenue from the Ascio acquisition, which lowered Adjusted EBITDA by $2.5 million. Revenue US$ millions) Adj. EBITDA1,2 US$ millions) NOTE Revenue for 2020 and 2021 reflects the impact of change in Mobile business model to Wavelo in Q3 2020. Tucows | Fiscal year historical financial performance 7
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Tucows Inc. Q4 2025 Investor Update NASDAQ TCX | TSX TC | 1. Adjusted EBITDA excludes depreciation, amortization of intangible assets, income tax provision, interest expense, accretion of contingent consideration, stock-based compensation, asset impairment, gains and losses from unrealized foreign currency transactions and costs that are not indicative of ongoing performance (profitability), including acquisition and transition costs. Prior to 2013 Adjusted EBITDA included net deferred revenue and did not included foreign currency transactions or acquisition and transition costs) 2. Adjusted EBITDA for 2017 reflects the impact of the purchase price accounting adjustment related to the fair value write down of deferred revenue from the Enom acquisition, which lowered Adjusted EBITDA by $7.8 million. Adjusted EBITDA for 2019 reflects the impact of the purchase price accounting adjustment related to the fair value write down of deferred revenue from the Ascio acquisition, which lowered Adjusted EBITDA by $2.5 million. Tucows | Historical Adjusted EBITDA and Unlevered Free Cash Flow -102.4 -41.4 -6.4 -0.7 Unlevered FCF (US $ millions) 8
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Tucows Inc. Q4 2025 Investor Update NASDAQ TCX | TSX TC | NASDAQTCX US$18.61 | TSXTC CA$25.66Share Price1 Shares out1 11.1m | Market cap1 US$206.6m 4 Facilities sit inside ring-fenced, special-purpose structures that are non-recourse to Tucows Inc. Tucows | Market & financial data US$410.8m Debt Canadian Bank Syndicate Loan: US$189.6m Maturity: Sept 2027 Unrestricted Cash US$20.9m Debt4 Preferred Shares: US$137 .0m Maturity: Aug 2028 ABS Notes: US$238.5m Maturity: Apr 2053 US$63.0m Maturity: Aug 2054 Unrestricted Cash US$23.1m Restricted Cash3 US$17 .5m Ting2Tucows Excluding Ting2 1 At February 11/2026 2 At December 31/2025 3 Restricted cash, secured notes and reserve funds 9
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Tucows Inc. Q4 2025 Investor Update NASDAQ TCX | TSX TC | Reliable cash flow + capital light with dominant position in wholesale domains market 10
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Tucows Inc. Q4 2025 Investor Update NASDAQ TCX | TSX TC | Leading global provider of wholesale and retail domain registration and related services Highly efficient operation Reliable cash flow Global network of resellers Renewal rates above industry average Worldʼs largest wholesale domain registrar Worldʼs second-largest domain registrar 11
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Tucows Inc. Q4 2025 Investor Update NASDAQ TCX | TSX TC | 21.5 million Domains under management 1.5 million Domain transactions every month Tucows Domains | business data 33,000 reseller customers 195 countries Global footprint in Global network of Services offered today domain registration registry administration SSL certificates email Services being introduced hosting billing & provisioning Web3 and identity 12
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Tucows Inc. Q4 2025 Investor Update NASDAQ TCX | TSX TC | Tucows Domains | strategic priorities Margin growth Delivering a comprehensive and efficient platform for the full domains ecosystem Launching new Value Added Services to sell via reseller channel Expanding Registry services through global partnerships 13
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Tucows Inc. Q4 2025 Investor Update NASDAQ TCX | TSX TC | A high margin, scalable growth business within the Tucows portfolio 14
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Tucows Inc. Q4 2025 Investor Update NASDAQ TCX | TSX TC | Offering event-driven, modular, cloud-based software thatʼs replacing the outdated systems behind global telecommunications Operating in a large and underserved space at a critical time for the global telecommunications industry – where customers are aggressively seeking better value. Leveraging: Global race to 5G Fiber proliferation Fixed and mobile convergence Competition for customers 15
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Tucows Inc. Q4 2025 Investor Update NASDAQ TCX | TSX TC | The human alternative to outdated telecom billing and provisioning systems Wavelo | the premise Flexible, cloud-based, event-driven software simplifies management of mobile and internet network access, enabling providers to: Better utilize all owned and leased access Focus on customer experience Scale businesses faster Customizable and a la carte services for providers: Subscription and billing management Network orchestration and provisioning Individual developer tools and more 16
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Tucows Inc. Q4 2025 Investor Update NASDAQ TCX | TSX TC | Anchor mobile customer A neglected space with a large and growing need for a solution Future opportunities in the global transition to fiber / wireless converged services Anchor internet customer Global telecom services revenue by 20281 $2.5T Telecom managed services spending by 20282 $550B Global OSS/BSS spending by 20283 $130B 1. Grand View Research 2. Grand View Research 3. Global Market Insights Macro trends Wavelo | the opportunity 17
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Tucows Inc. Q4 2025 Investor Update NASDAQ TCX | TSX TC | Long-term growth potential from next generation telecom services 18
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Tucows Inc. Q4 2025 Investor Update NASDAQ TCX | TSX TC | “A billion fiber optic connections to the Internet are coming online in just a few years. A large majority of them will be in Asia, primarily led by China. These connections have already proven to be future-proof, capable of reaching not just gigabit speeds, but multi-gigabit speeds. Fiber is not only faster; itʼs also cheaper long-term. No other connection even comes close by comparison. The future of the Internet is going to be fiber. ˮ - Electronic Frontier Foundation, Dec 2020 Capitalizing on the U.S. coax-to-fiber transition by delivering subscribed services over owned and leased fiber-to-the-premise networks 19
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Tucows Inc. Q4 2025 Investor Update NASDAQ TCX | TSX TC | US telecom infrastructure is making a generational transition from copper and coax to fiber Ting | the opportunity Over 40% of US households do not have access to fiber. Fiber is the only medium purpose-built for transmitting massive amounts of data securely. Ting has established US footprints and is a partner ISP for other US builders Ting has a highly-ranked brand and low churn 20
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Tucows Inc. Q4 2025 Investor Update NASDAQ TCX | TSX TC | Quarterly Performance 21
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Tucows Inc. Q4 2025 Investor Update NASDAQ TCX | TSX TC |Tucows Inc. Q4 2025 Investor Update NASDAQ TCX | TSX TC | Tucows | Quarterly business highlights 1 Non-GAAP financial measures are described and reconciled to GAAP measures in the companyʼs quarterly earnings press release. Summary Financial Results In thousands of U.S. Dollars, except per share data) 3 Months ended December 31 12 Months ended December 31 2025 (unaudited) 2024 (unaudited) % Change (unaudited) 2025 (unaudited) 2024 (unaudited) % Change (unaudited) Net Revenues 98,670 93,098 6% 390,300 362,275 8% Gross Profit 24,132 22,223 14% 93,954 83,029 13% Income Earned on Sale of Transferred Assets, net 2,771 3,244 (15)% 11,643 13,978 (17)% Net Income (Loss) (22,030) (42,475) 48% (75,819) (109,860) 31% Adjusted Net Income (Loss)¹ (19,201) (15,775) (22)% (66,180) (76,817) 14% Basic earnings (Loss) per common share (1.98) (3.86) 49% (6.85) (10.02) 32% Adjusted Basic earnings (Loss) per common share¹ (1.73) (1.43) (21)% (5.98) (7.00) 15% Adjusted EBITDA¹ 11,081 12,849 (14)% 50,598 34,917 45% Net cash provided by (used in) operating activities (2,607) (4,795) 46% (5,758) (19,745) 71% 22
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Tucows Inc. Q4 2025 Investor Update NASDAQ TCX | TSX TC | Tucows | Quarterly business highlights 3 Months ended December 31 12 Months ended December 31 2025 (unaudited) 2024 (unaudited) 2025 (unaudited) 2024 (unaudited) Net Income Loss for the period 22,030 42,475 75,819 109,860 Less: Acquisition and transition costs* 2,949 8,438 3,989 13,876 Impairment of property and equipment 9 18,262 11,533 19,167 Loss (gain) on disposition of property and equipment 129 0 5,882 0 Adjusted Net Income Loss¹ for the period 19,201 15,775 66,179 76,817 Adjusted Basic Earnings Loss Per Common Share 1.73 1.43 5.98 7.00 Adjustments for impacts on Net Income Loss and EPS Loss Amounts in thousands, except per share numbers) 1 Non-GAAP financial measures are described and reconciled to GAAP measures in the quarterly press release. * Acquisition and transition costs represent transaction-related expenses and transitional expenses. Expenses include severance or transitional costs associated with department, operational or overall company restructuring efforts, including geographic alignments. 23
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Tucows Inc. Q4 2025 Investor Update NASDAQ TCX | TSX TC | REVENUE GROSS PROFIT ADJUSTED EBITDA¹ 3 Months ended December 31 3 Months ended December 31 3 Months ended December 31 2025 (unaudited) 2024 (unaudited) 2025 (unaudited) 2024 (unaudited) 2025 (unaudited) 2024 (unaudited) DOMAINS AND WAVELO SERVICES Tucows Domain Services: Wholesale Domain Services 50,705 50,586 Value Added Services 6,279 5,480 Total Wholesale 56,984 56,066 Retail 9,419 9,608 Total Tucows Domain Services 66,403 65,674 19,186 18,432 12,495 11,633 Wavelo Services 11,715 9,888 6,555 6,141 3,391 3,679 Total Domains and Wavelo Services 78,118 75,562 25,741 24,573 15,886 15,312 TING INTERNET SERVICES Fiber Internet Services 18,521 15,749 1,600 1,160 861 1,468 CORPORATE & OTHER Mobile Services and Eliminations 2,031 1,787 3,209 2,190 3,944 995 Total 98,670 93,098 24,132 21,223 11,081 12,849 Operating Statistics (Amounts in thousands) Tucows | Quarterly Business Highlights Notes: 1 Non-GAAP financial measures are described and reconciled to GAAP measures in the quarterly press release. 2 Beginning in the third quarter of 2025, the Company revised its presentation of segment gross profit to reflect amounts net of network expenses. This change provides a more consistent view of segment-level profitability and aligns with how management evaluates operating performance. The revision did not impact gross profit, Adjusted EBITDA or revenue. 24
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Tucows Inc. Q4 2025 Investor Update NASDAQ TCX | TSX TC | Why Tucows as an Investment 25
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Tucows Inc. Q4 2025 Investor Update NASDAQ TCX | TSX TC | ● Strategic process to divest of Ting underway as Tucows is not the best long-term owner for this business ● Regained flexibility will enable capital allocation for self-funded growth, deleveraging and capacity for long-term value creation Continued KPI strength ● 2025 was third consecutive fiscal year of growing consolidated revenue, gross profit and adjusted EBITDA. Adjusted EBITDA 45% FY over FY ● Core businesses – Domains and Wavelo – have strong recurring revenue and margin profiles New leadership with renewed focus on a simpler, more accountable, value-per-share model ● Capital-light operating model ● Performance metrics tied to speed of execution: acquisition/retention, margin, and cash generation ● Financial rigor in decision making for reliable cash generation, strong unit economics and disciplined capital allocation Tucows | Why own this stock: Core businesses healthy and ready to scale 26 ● Domains and Wavelo operating profitably and ready to scale ● Focus on building, integrating and operating platform businesses with recurring revenue, moat, scalable gross profit, and operational synergies Ting divestiture a catalyst for improved flexibility
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Tucows Inc. Q4 2025 Investor Update NASDAQ TCX | TSX TC Investor Resources tucows.com/investors ir@tucows.com