#United States #Washington #Cogent Communications #financial results #Q3 2025

Cogent Communications Reports Third Quarter 2025 Results

Financial and Business Highlights

Cogent Communications Holdings, Inc. has released its financial results for the third quarter of 2025, demonstrating a mix of stability and challenges amidst varying revenue streams. The company's total service revenue reached $241.9 million, a slight decrease of 1.7% compared to the second quarter of 2025. The decline in revenue is a notable shift from earlier periods, as the company experienced a 5.9% decrease when compared year-over-year with Q3 of 2024.

Key Revenue Metrics

1. On-net Revenue: For Q3 2025, on-net revenue increased by 2.2% to $135.3 million, reflecting a slight stabilization in this sector despite the overall decline in total service revenue.
2. Off-net Revenue: In contrast, off-net revenues revealed a challenging landscape, dropping to $95.1 million, which marks a 6.9% decrease from the previous quarter and a significant 14.5% decline compared to the same quarter last year.
3. Wavelength Revenue Growth: A bright spot in the report was the growth in wavelength revenue, which surged by 12.4% sequentially, totaling $10.2 million in Q3 2025 and achieving a remarkable 92.5% increase from Q3 2024.
4. IPv4 Leasing Revenue: Similarly, revenues from leasing IPv4 addresses saw a healthy growth of 14.1% quarter-over-quarter, reaching $17.5 million.

Future Outlook

In October 2025, Cogent communicated its intention to sell two data centers that were acquired during the Sprint acquisition, with an expected transaction value of $144 million in cash. This strategic move aims to strengthen the company’s financial position amidst fluctuating revenues and includes ongoing efforts in capital expenditures.

The firm's EBITDA for Q3 2025 stood at $48.8 million, presenting an increase of 0.6% from Q2 2025 and a significant rise of 36.0% from the year-ago quarter. The EBITDA margin also saw some positive movement, improving to 20.2% compared to 19.7% in the previous quarter, and jumping from 13.9% year-over-year.

Stockholder Engagement

On November 5, the Board of Directors approved a quarterly dividend of $0.02 per share for Q4 2025. However, it’s essential to note that the stock buyback program has been temporarily paused, highlighting Cogent's current focus on managing its cash flow effectively amid these revenue challenges.

Conclusion

Cogent Communications is navigating through a complex financial landscape with varying revenue streams. While some areas exhibit growth,... Its commitment to restructuring and focus on strategic asset sales reflects a proactive approach to solidify its market position.

Investors and stakeholders can expect a thorough discussion of these results during Cogent's earnings call scheduled for 8:30 AM ET on November 6, 2025. The company encourages interested parties to access the live audio webcast and future transcripts on its website, as it looks to enhance transparency and shareholder engagement.