CCOI
Cogent Communications Holdings, Inc.23.05
+0.21+0.92%
Dec 16, 4:00:00 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Q&A unmasks Cogent growth, Sprint plunge
Q&A clarified Sprint wireline revenues cratered 64% since 2023 close—faster than expected due to customer exits and margin discipline—unmasking Cogent Classic's 27% quarterly growth to $197M, fueling on-net mix to 61% and 80% of Q4 sales. Data center LOI collapsed over buyer financing push, yet power confirmed and broader deals advance imminently, sans tax hit via NOLs. Waves funnel expands with stable install backlog; infrastructure burns -$140M EBITDA, IPv4 offsets half. Analysts grilled growth, refi—management direct, no hedges. Sprint base eroded fast. Outlook: sequential revenue uptick, delever to 4x net before returns.
Key Stats
Market Cap
1.13BP/E (TTM)
-Basic EPS (TTM)
-4.06Dividend Yield
0.18%Recent Filings
10-K
FY2025 results
Cogent delivered FY2025 service revenue of $976M, down 5.8% y/y amid deliberate pruning of low-margin Cogent Fiber customers, yet net-centric revenue accelerated 6.8% y/y to $394M on traffic growth and wavelength doubling to $38M. Corporate revenue fell 9.7% y/y to $428M from acquired churn, while enterprise dropped 20.3% y/y to $154M; on-net connections held steady, off-net declined 12.5% y/y. Q4 momentum showed wavelength connections up 84.6% y/y to 2,064, but overall revenue contracted amid integration costs. Debt stands at $2.4B with $205M cash (partly restricted); $100M buyback remains. Elevated office vacancies risk corporate momentum.
8-K
Q4 revenue dips, wavelength soars
Cogent reported Q4 2025 service revenue of $240.5M, down 0.6% sequentially yet wavelength revenue surged 18.8% to $12.1M with connections up 17.9% to 2,064. Adjusted EBITDA climbed 4.0% to $76.7M at 31.9% margin, while full-year revenue fell to $975.8M. Board approved $0.02/share Q1 2026 dividend. Wavelength drives growth.
8-K
CEO contract extended to 2028
Cogent extended CEO David Schaeffer's employment through December 31, 2028, with $1M salary and $1.25M max annual cash bonus tied to positive EBITDA growth. Board granted him 229,657 time-vesting and 321,520 performance shares for 2026 ($5M/$7M value), plus 100,000-share retention awards to CFO, CLO, and CRO vesting January 1, 2029. Incentives lock in leadership.
8-K
Resumes stock buyback program
10-Q
Q3 FY2025 results
Cogent's Q3 revenue fell 6% y/y to $242M, yet slashed network costs 19% to $132M and depreciation 30% to $60M, trimming operating loss to $18M from $58M while net loss narrowed to $42M from $63M (diluted EPS $(0.87) vs $(1.33), confirmed vs 47.6M shares). Cost cuts from ditching low-margin Cogent Fiber acquisitions drove gains, with wavelength revenue up 93% y/y to $10M. Cash dipped to $147M amid $148M capex, but $600M 6.5% 2032 notes refinanced 2026 debt; FCF not disclosed in 10-Q. Debt covenants met. Competition pressures pricing.
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