v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
Reportable operating segments
The Company is organized and managed based on three operating segments which are differentiated primarily by their services, the markets they serve and the regulatory environments in which they operate. No operating segments have been aggregated to determine the Company's reportable segments.
The Company's reportable operating segments and their principal activities consist of the following:
1.Ting - This segment derives revenue from providing retail high speed Internet access services to individuals and small businesses. Revenues are generated in the United States.
2.Wavelo – This segment derives revenue from platform and other professional services related to communication service providers, including Mobile Network Operators and Internet Service Providers, and are primarily generated in the United States.
3.Tucows Domains – This segment includes wholesale and retail domain name registration services, value added services and portfolio services. The Company primarily earns revenues from the registration fees charged to resellers in connection with new, renewed and transferred domain name registrations; the sale of retail Internet domain name registration and email services to individuals and small businesses. Domain Services revenues are attributed to the country in which the contract originates, primarily Canada and the United States.
The Company's segmented results include shared services allocations, including a profit margin, for Finance, Human Resources and other technical services, to the operating units. In addition, Wavelo charges Ting a subscriber based monthly charge for services rendered. Financial impacts from these allocations and cross segment charges are eliminated as part of the consolidation.
Key measure of segment performance
The CEO, as the chief operating decision maker ("CODM"), regularly reviews the operations and performance by segment. The CEO reviews Segment Adjusted EBITDA (as defined below) as (i) key measures of performance for each segment and (ii) to make decisions about the allocation of resources. Depreciation of property and equipment, amortization of intangible assets, impairment of indefinite life intangible assets, gain on currency forward contracts and other expenses, net are organized along functional lines and are not included in the measurement of segment profitability. Total assets and total liabilities are centrally managed and are not reviewed at the segment level by the CEO.
The Company's key measure of segment performance is Segment Adjusted EBITDA.
The Company calculates this as segment revenue together with recurring income earned on sale of transferred assets, less cost of revenue, network expenses and certain operating expenses attributable to each segment, such as sales and marketing, technical operations and development, general and administration expenses. Segment Adjusted EBITDA excludes unrealized gains (losses) on foreign exchange, stock-based compensation and transactions that are not indicative of on-going performance, including acquisition, transaction and transition costs. Certain revenues and expenses are excluded from segment Adjusted EBITDA results as they are centrally managed and not monitored by or reported to the CEO by segment, including mobile retail services, eliminations of intercompany transactions, portions of Finance and Human Resources that are centrally managed, Legal and Corporate IT.
The Company believes that Adjusted EBITDA is an important indicator of the operational strength and performance of its segments, by identifying those items that are not directly a reflection of each segment’s performance or indicative of ongoing operational and profitability trends.
The CODM uses Adjusted EBITDA to evaluate the overall recurring profitability of each operating segment after accounting for overhead costs. Adjusted EBITDA is evaluated by the CODM by comparing current period to historical and forecasted results and is used to inform strategic decisions over segment profitability, operational efficiency, pricing strategies, cost optimization, customer churn, competitor benchmarking and cash flow.
Information by reportable segments (with the exception of disaggregated revenue, which is discussed in “Note 11. Revenue”), which is regularly reported to the chief operating decision maker, and the reconciliations thereof to the Company's income before taxes, are set out in the following tables (Dollar amounts in thousands of U.S. dollars):
TingWaveloTucows DomainsConsolidated Totals
For the Three Months Ended June 30, 2026
Revenue from external customers$21,595 $11,271 $64,993 $97,859 
Intersegment revenues (1)
- 484 - 484 
Total net revenues21,595 11,755 64,993 98,343 
Less:
Cost of revenues9,645 392 43,416 53,453 
Network, other costs (2)
1,093 2,341 2,089 5,523 
Sales and marketing (2)
5,063 3,062 3,745 11,870 
Technical operations and development (2)
396 2,151 2,032 4,579 
General and administrative (2) (3)
4,906 1,195 3,174 9,275 
Other segment items (4)
(1,028)(214)(1,340)(2,582)
Segment Adjusted EBITDA$1,520 $2,828 $11,877 $16,225 
TingWaveloTucows DomainsConsolidated Totals
For the Three Months Ended June 30, 2025
Revenue from external customers$16,410 $12,228 $67,604 $96,242 
Intersegment revenues (1)
- 428 - 428 
Total net revenues16,410 12,656 67,604 96,670 
Less:
Cost of revenues8,706 95 46,044 54,845 
Network, other costs (2)
1,464 2,355 2,005 5,824 
Sales and marketing (2)
4,801 2,726 3,829 11,356 
Technical operations and development (2)
513 1,752 1,907 4,172 
General and administrative (2) (3)
4,682 705 1,420 6,807 
Other segment items (4)
(105)(337)(144)(586)
Segment Adjusted EBITDA$(3,651)$5,360 $12,543 $14,252 
TingWaveloTucows DomainsConsolidated Totals
For the Six Months Ended June 30, 2026
Revenue from external customers$40,968 $22,355 $129,093 $192,416 
Intersegment revenues (1)
- 961 - 961 
Total net revenues40,968 23,316 129,093 193,377 
Less:
Cost of revenues18,272 718 86,769 105,759 
Network, other costs (2)
2,250 4,642 3,966 10,858 
Sales and marketing (2)
10,430 5,505 7,495 23,430 
Technical operations and development (2)
845 3,994 3,922 8,761 
General and administrative (2) (3)
9,132 2,222 4,790 16,144 
Other segment items (4)
(1,051)(209)(1,353)(2,613)
Segment Adjusted EBITDA$1,090 $6,444 $23,504 $31,038 
TingWaveloTucows DomainsConsolidated Totals
For the Six Months Ended June 30, 2025
Revenue from external customers$32,725 $23,180 $132,859 $188,764 
Intersegment revenues (1)
- 872 - 872 
Total net revenues32,725 24,052 132,859 189,636 
Less:
Cost of revenues14,543 232 91,084 105,859 
Network, other costs (2)
2,454 4,578 3,659 10,691 
Sales and marketing (2)
9,380 4,978 7,392 21,750 
Technical operations and development (2)
973 3,370 4,061 8,404 
General and administrative (2) (3)
9,886 1,509 2,686 14,081 
Other segment items (4)
(6)(424)(106)(536)
Segment Adjusted EBITDA$(4,505)$9,809 $24,083 $29,387 
(1)Intercompany revenues earned for provision of services on the ISOS and Subscriber Management ("SM") platforms between Wavelo and Ting are included in Wavelo's segment revenues for purposes of segment analysis, but are ultimately eliminated upon consolidation.
(2)Effective beginning in 2026, Network, other costs, Sales and marketing, Technical operations and development and General and administrative costs presented in segment reporting to the CODM are shown excluding stock‑based compensation expenses for all business units. This presentation reflects a change from prior periods, in which stock‑based compensation expenses was included within each expense category and subsequently adjusted in “Other segment” line items. To ensure comparability, the 2025 segment expense figures have been recast to conform to the 2026 presentation.
(3)Effective beginning in 2026, General and administrative costs presented in segment reporting to the CODM are shown excluding Gains and losses from unrealized foreign currency. This presentation reflects a change from prior periods, in which gains and losses from unrealized foreign currency was included within each expense category and subsequently adjusted in “Other segment” line items. To ensure comparability, the 2025 segment expense figures have been recast to conform to the 2026 presentation.
(4)Other segment items for each reportable segment includes other income, as well as adjustments to add back (deduct) acquisition and transition costs, which are included in other line items but are excluded from our definition of Segment Adjusted EBITDA.
The following table reconciles Segment Adjusted EBITDA for the period to Net loss before tax for the three and six months ended June 30, 2026 and June 30, 2025:
Reconciliation of Segment Adjusted EBITDA to Net loss before taxThree Months Ended June 30,Six Months Ended June 30,
(In Thousands of U.S. Dollars)2026202520262025
Segment Adjusted EBITDA$16,225 $14,252 $31,038 $29,387 
Reconciling items:
Corporate and other (1)
(3,928)(1,675)(7,074)(3,140)
Depreciation of property and equipment(10,341)(10,539)(20,212)(20,999)
Impairment and loss (gain) on disposition of property and equipment(286)1,353 (1,442)1,149 
Amortization of intangible assets(698)(1,115)(1,801)(2,321)
Interest expense, net(14,450)(13,621)(28,315)(27,234)
Stock-based compensation(1,164)(1,386)(2,258)(2,890)
Unrealized loss (gain) on foreign exchange revaluation of foreign denominated monetary assets and liabilities(29)72 (223)437 
Acquisition and other costs (2)
(2,670)(713)(2,769)(728)
Net loss before tax$(17,341)$(13,372)$(33,056)$(26,339)
(1)Items that are centrally managed and not monitored by or reported to the CEO by segment, including retail mobile services, eliminations of intercompany transactions, portions of Finance and Human Resources that are centrally managed, Legal and Corporate IT.
(2)Acquisition and other 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.
Revenue from sources outside of Canada and the United States of America comprises less than 10% of the Company's total operating revenue.
(b) The following is a summary of the Company’s property and equipment by geographic region (Dollar amounts in thousands of U.S. dollars):
June 30, 2026December 31, 2025
Canada$808 $797 
United States267,575 281,158 
$268,383 $281,955 
(c) The following is a summary of the Company’s amortizable intangible assets by geographic region (Dollar amounts in thousands of U.S. dollars):
June 30, 2026December 31, 2025
Canada$419 $695 
United States6,056 6,745 
$6,475 $7,440 
Under ASC 326, "Financial Instruments - Credit Losses", the Company assesses the adequacy of its allowance for expected credit losses based on historical loss experience, current economic conditions and reasonable forecasts. The Company's evaluation considers the short-term nature of receivables and the high credit quality of the Company's customer base, which mitigates significant credit risk exposure.
(d) The following table summarizes the Company's expected credit losses ("ECL") (Dollar amounts in thousands of U.S. dollars):
Expected credit lossesBalance at beginning of periodIncrease in ECL provisionWrite-offs during periodBalance at end of the period
Six months ended June 30, 2026$1,259 $289 $(236)$1,312 
Twelve months ended December 31, 2025$923 $370 $(34)$1,259