Tucows plans strategy post-Ting
Once Ting is sold, Tucows plans to use cash to build and buy platform businesses.
Tucows (NASDAQ: TCX) noted fourth-quarter and full-year 2025 earnings the prior week and set out its strategy going forward.
It was the first earnings note under fresh CEO David Woroch.
As for earnings, the firm noted a 7% year-over-year revenue increase in Q4 and an 8% increase for the full year.
Its domain name business increased revenue by 4.8% year over year in Q4 and by 5.9% for the year. It again credited elevated revenue from expired domain sales for its strong quarter, but also noted that domains under management dropped precipitously due to a sizable client moving from Tucows’ reseller platform to its own accreditations.
Perhaps the bigger news is the firm’s plans for the future. It is still trying to get rid of the albatross around its neck: the Ting fiber business. The asset-heavy business has been a struggle for the firm, especially under higher interest rates.
Tucows plans to sell the business, but hasn’t disclosed a transaction yet.
On a pre-recorded investor conference call, Woroch stated the firm will transition to a capital-light business with a lean operating model. It plans to develop and acquire technology services that build on its existing competence in scaling platform businesses.
Woroch stated it will focus on businesses that have:
- Recurring revenue with strong client retention and a competitive moat
- Platform economics with consistent gross profit and scalable operations
- Business-critical workflows where reliability matters
- Clear pathways to operational improvement through synergies
It by now has a leading position in the domain name reseller business, and it will be interesting to see if it pursues acquisitions in the space.
