TCX has been quietly outperforming the market over the past six months, up 2.2% while the S&P 500 grabbed 6.1%. What caught my attention though is how the company's core businesses are actually firing on all cylinders despite broader market headwinds.

Tucows just wrapped Q4 2025 with $98.7 million in revenues, a solid 6% year-over-year bump. But the real story is in the margins. Gross profit jumped 14% to $24.1 million, and that's coming from their Domains and Wavelo segments which generated $78.1 million combined in the quarter. The Domains business alone is managing over 21 million domain names across 33,000 reseller partners globally, pulling in $66.4 million in quarterly revenue with $12.5 million in adjusted EBITDA.

Wavelo, their cloud-based telecom software platform, is where things get interesting. Revenues climbed to $11.7 million from $9.9 million year-over-year, and the platform hit double-digit growth across the board for 2025, actually beating their own guidance. In the past couple months heading into Q2, this kind of momentum in a software-as-a-service business is exactly what investors should be watching.

Then there's Ting Internet, the fiber broadband segment. They're actively exploring strategic alternatives here, potentially including a sale. Management's being pretty candid that this capital-intensive business might not be their long-term play. Ting did post $18.5 million in quarterly revenue, up from $15.7 million, and they're finally turning the corner on profitability. But the real opportunity is that the company is shifting toward a capital-light model centered on their platform businesses.

Looking ahead to 2026, management is guiding Domains adjusted EBITDA to $47-49 million while Wavelo should hit $14.5-15.5 million. The thesis here is pretty clean: focus on recurring revenue, strong margins, and scalable platforms rather than capital-heavy infrastructure plays. With 5G expansion and fiber proliferation reshaping telecom infrastructure, Wavelo's positioned to capture demand from service providers needing modern billing and provisioning systems.

For investors tracking this, the portfolio optimization play — potentially divesting Ting while doubling down on high-margin platforms — could unlock real value. It's the kind of strategic repositioning that usually flies under the radar until it actually moves the needle.