Cogent Communications Reports Second Quarter Results, Increases its Regular Quarterly Dividend on its Common Stock and Increases its Stock Buyback Program by $100.0 Million
Cogent Communications (NASDAQ: CCOI) reported Q2 2025 financial results, showing mixed performance with some growth in key segments. Service revenue was $246.2 million, a slight decrease of 0.3% from Q1 2025. Notable highlights include wavelength revenue increasing 27.2% sequentially to $9.1 million and IPv4 leasing revenue growing 6.3% to $15.3 million.
The company demonstrated improved profitability with EBITDA increasing 10.8% to $48.5 million and EBITDA margin expanding to 19.7%. The Board approved its 52nd consecutive quarterly dividend increase to $1.015 per share and authorized a $100 million increase to its stock buyback program.
During Q2 2025, Cogent purchased 229,507 shares for $11.5 million at an average price of $50.18, followed by additional purchases in July of 63,487 shares for $3.1 million at $48.13 per share.
Cogent Communications (NASDAQ: CCOI) ha riportato i risultati finanziari del secondo trimestre 2025, mostrando una performance mista con una certa crescita in segmenti chiave. I ricavi da servizi sono stati di 246,2 milioni di dollari, con una lieve diminuzione dello 0,3% rispetto al primo trimestre 2025. Tra i punti salienti si segnala un aumento del 27,2% dei ricavi da wavelength rispetto al trimestre precedente, raggiungendo 9,1 milioni di dollari, e una crescita del 6,3% dei ricavi da leasing IPv4, arrivati a 15,3 milioni di dollari.
L鈥檃zienda ha mostrato un miglioramento della redditivit脿 con un EBITDA in crescita del 10,8%, pari a 48,5 milioni di dollari, e un margine EBITDA che si 猫 ampliato al 19,7%. Il Consiglio di Amministrazione ha approvato il 52掳 aumento consecutivo del dividendo trimestrale, portandolo a 1,015 dollari per azione, e ha autorizzato un incremento di 100 milioni di dollari al programma di riacquisto azionario.
Nel corso del secondo trimestre 2025, Cogent ha acquistato 229.507 azioni per 11,5 milioni di dollari a un prezzo medio di 50,18 dollari per azione, seguite da ulteriori acquisti a luglio di 63.487 azioni per 3,1 milioni di dollari a 48,13 dollari per azione.
Cogent Communications (NASDAQ: CCOI) present贸 los resultados financieros del segundo trimestre de 2025, mostrando un desempe帽o mixto con cierto crecimiento en segmentos clave. Los ingresos por servicios fueron de 246,2 millones de d贸lares, una ligera disminuci贸n del 0,3% respecto al primer trimestre de 2025. Destacan el aumento del 27,2% en los ingresos por wavelength de forma secuencial, alcanzando los 9,1 millones de d贸lares, y el crecimiento del 6,3% en los ingresos por arrendamiento de IPv4, que llegaron a 15,3 millones de d贸lares.
La compa帽铆a mostr贸 una mejora en la rentabilidad con un EBITDA que aument贸 un 10,8% hasta 48,5 millones de d贸lares y un margen EBITDA que se ampli贸 al 19,7%. La Junta aprob贸 su 52潞 aumento consecutivo del dividendo trimestral a 1,015 d贸lares por acci贸n y autoriz贸 un aumento de 100 millones de d贸lares en su programa de recompra de acciones.
Durante el segundo trimestre de 2025, Cogent compr贸 229.507 acciones por 11,5 millones de d贸lares a un precio promedio de 50,18 d贸lares por acci贸n, seguido de compras adicionales en julio de 63.487 acciones por 3,1 millones de d贸lares a 48,13 d贸lares por acci贸n.
Cogent Communications (NASDAQ: CCOI)電� 2025雲� 2攵勱赴 鞛 鞁れ爜鞚� 氚滍憸頃橂┌ 欤检殧 攵�氍胳棎靹� 鞚茧秬 靹膘灔瓿� 頃粯 順柬暕霅� 靹标臣毳� 氤挫榾鞀惦媹雼�. 靹滊箘鞀� 靾橃澋鞚� 2鞏� 4,620毵� 雼煬搿� 2025雲� 1攵勱赴 雽�牍� 0.3% 靻岉彮 臧愳唽頄堨姷雼堧嫟. 欤茧頃� 毵岉暅 鞝愳溂搿滊姅 鞗澊敫岆牆鞀� 靾橃澋鞚� 鞝勲秳旮� 雽�牍� 27.2% 歃濌皜頃橃棳 910毵� 雼煬毳� 旮半頄堦碃, IPv4 鞛勲寑 靾橃澋鞚� 6.3% 歃濌皜頃橃棳 1,530毵� 雼煬鞐� 雼枅鞀惦媹雼�.
须岇偓电� EBITDA臧� 10.8% 歃濌皜頃橃棳 4,850毵� 雼煬毳� 旮半頃橂┌ 靾橃澋靹膘澊 臧滌劆霅橃棃瓿�, EBITDA 毵堨鞚� 19.7%搿� 頇曤寑霅橃棃鞀惦媹雼�. 鞚挫偓須岆姅 52攵勱赴 鞐办啀 攵勱赴 氚半嫻旮� 鞚胳儊鞚� 鞀轨澑頃橃棳 欤茧嫻 1.015雼煬搿� 鞚胳儊頄堨溂氅�, 鞛愳偓欤� 毵れ瀰 頂勲攴鸽灗鞐� 1鞏� 雼煬 於旉皜 歃濎暋鞚� 鞀轨澑頄堨姷雼堧嫟.
2025雲� 2攵勱赴 霃欖晥 Cogent電� 韽夑窢 欤茧嫻 50.18雼煬鞐� 229,507欤茧ゼ 1,150毵� 雼煬鞐� 毵れ瀰頄堨溂氅�, 7鞗旍棎電� 於旉皜搿� 63,487欤茧ゼ 欤茧嫻 48.13雼煬鞐� 310毵� 雼煬鞐� 毵れ瀰頄堨姷雼堧嫟.
Cogent Communications (NASDAQ : CCOI) a publi茅 ses r茅sultats financiers du deuxi猫me trimestre 2025, montrant une performance mitig茅e avec une certaine croissance dans des segments cl茅s. Les revenus de services se sont 茅lev茅s 脿 246,2 millions de dollars, soit une l茅g猫re baisse de 0,3 % par rapport au premier trimestre 2025. Parmi les points marquants, on note une augmentation s茅quentielle de 27,2 % des revenus li茅s aux longueurs d鈥檕nde, atteignant 9,1 millions de dollars, ainsi qu鈥檜ne croissance de 6,3 % des revenus de location IPv4, 脿 15,3 millions de dollars.
L鈥檈ntreprise a am茅lior茅 sa rentabilit茅 avec un EBITDA en hausse de 10,8 % 脿 48,5 millions de dollars et une marge EBITDA port茅e 脿 19,7 %. Le conseil d鈥檃dministration a approuv茅 sa 52e augmentation cons茅cutive du dividende trimestriel 脿 1,015 dollar par action et a autoris茅 une augmentation de 100 millions de dollars de son programme de rachat d鈥檃ctions.
Au cours du deuxi猫me trimestre 2025, Cogent a achet茅 229 507 actions pour 11,5 millions de dollars 脿 un prix moyen de 50,18 dollars par action, suivies d鈥檃chats suppl茅mentaires en juillet de 63 487 actions pour 3,1 millions de dollars 脿 48,13 dollars par action.
Cogent Communications (NASDAQ: CCOI) ver枚ffentlichte die Finanzergebnisse f眉r das zweite Quartal 2025 und zeigte eine gemischte Entwicklung mit Wachstum in wichtigen Segmenten. Die Serviceerl枚se betrugen 246,2 Millionen US-Dollar, was einem leichten R眉ckgang von 0,3 % gegen眉ber dem ersten Quartal 2025 entspricht. Hervorzuheben ist ein Anstieg der Wellenl盲ngenerl枚se um 27,2 % auf 9,1 Millionen US-Dollar sowie ein Wachstum der IPv4-Leasing-Erl枚se um 6,3 % auf 15,3 Millionen US-Dollar.
Das Unternehmen verbesserte seine Profitabilit盲t mit einem EBITDA-Anstieg von 10,8 % auf 48,5 Millionen US-Dollar und einer Ausweitung der EBITDA-Marge auf 19,7 %. Der Vorstand genehmigte die 52. aufeinanderfolgende viertelj盲hrliche Dividendenerh枚hung auf 1,015 US-Dollar je Aktie und autorisierte eine Erh枚hung des Aktienr眉ckkaufprogramms um 100 Millionen US-Dollar.
Im zweiten Quartal 2025 kaufte Cogent 229.507 Aktien f眉r 11,5 Millionen US-Dollar zu einem Durchschnittspreis von 50,18 US-Dollar pro Aktie, gefolgt von weiteren K盲ufen im Juli von 63.487 Aktien f眉r 3,1 Millionen US-Dollar zu 48,13 US-Dollar pro Aktie.
- 52nd consecutive quarterly dividend increase to $1.015 per share
- Wavelength revenue surged 149.8% year-over-year and 27.2% sequentially
- EBITDA increased 10.8% sequentially to $48.5 million with margin expansion to 19.7%
- $100 million increase in stock buyback program authorization
- IPv4 leasing revenue grew 40.1% year-over-year to $15.3 million
- Overall service revenue declined 5.5% year-over-year to $246.2 million
- Net loss per share widened to $(1.21) from $(0.68) year-over-year
- Total customer connections decreased 7.8% year-over-year to 118,730
- Off-net revenue declined 8.3% year-over-year
- Net cash used in operating activities was $44.0 million compared to $36.4 million provided in Q1
Insights
Cogent shows mixed Q2 results with improving EBITDA margins but declining revenue, while increasing dividends and expanding its buyback program.
Cogent Communications delivered mixed results in Q2 2025, with total service revenue of
The most promising developments came from high-growth segments. Wavelength revenue surged by
The company showed significant margin improvement, with EBITDA increasing
However, Cogent continues to face customer attrition challenges, with total connections decreasing by
In a show of confidence, Cogent increased its quarterly dividend for the fifty-second consecutive quarter by
Financial and Business Highlights
- Service revenue was
$246.2 million $247.0 million - Wavelength revenue increased by
27.2% , sequentially, and increased by149.8% from Q2 2024.- Wavelength revenue was
$9.1 million $7.1 million $3.6 million - Wavelength customer connections increased by
11.1% , sequentially from Q1 2025 and increased by94.8% from Q2 2024.
- Wavelength revenue was
- Revenue from leasing IPv4 addresses increased by
6.3% , from Q1 2025 and increased by40.1% from Q2 2024.- Revenue from leasing IPv4 addresses was
$15.3 million $14.4 million $10.9 million
- Revenue from leasing IPv4 addresses was
- Wavelength revenue increased by
- EBITDA increased by
10.8% to$48.5 million 78.8% from$27.1 million - EBITDA margin was
19.7% for Q2 2025,17.7% for Q1 2025 and was10.4% for Q2 2024. - Net cash used in operating activities was
$44.0 million $22.2 million $36.4 million
- EBITDA margin was
- EBITDA, as adjusted, increased by
6.9% to$73.5 million - EBITDA, as adjusted, margin was
29.8% for Q2 2025 and was27.8% for Q1 2025.
- EBITDA, as adjusted, margin was
- Cogent approved an increase of
$0.00 5$1.01 5$1.01 0 - In Q2 2025, Cogent purchased 229,507 shares of its common stock for
$11.5 million $50.18 - In July 2025, Cogent purchased 63,487 shares of its common stock for
$3.1 million $48.13
- In July 2025, Cogent purchased 63,487 shares of its common stock for
Foreign exchange rates positively impacted service revenue growth from the three months ended March 31, 2025 to the three months ended June 30, 2025 by
On-net service is provided to customers located in buildings that are physically connected to Cogent's network by Cogent facilities. On-net revenue was
Off-net customers are located in buildings directly connected to Cogent's network using other carriers' facilities and services to provide the last mile portion of the link from the customers' premises to Cogent's network. Off-net revenue was
Wavelength revenue was
Non-core services are legacy services, which Cogent acquired and continues to support but does not actively sell.听 Non-core revenue was
GAAP gross profit is defined as total service revenue less network operations expense, depreciation and amortization and equity-based compensation included in network operations expense.听 GAAP gross margin is defined as GAAP gross profit divided by total service revenue. GAAP gross profit decreased by
GAAP gross margin was
Non-GAAP gross profit represents service revenue less network operations expense, excluding equity-based compensation and amounts shown separately (depreciation and amortization expense). Non-GAAP gross margin is defined as Non-GAAP gross profit divided by total service revenue.听 Non-GAAP gross profit decreased by
Non-GAAP gross margin was
Net cash used in operating activities was
Sprint acquisition costs were
IP Transit Services Agreement
On May 1, 2023, the closing date of the Sprint acquisition, Cogent and T-Mobile USA, Inc. ("TMUSA"), a
Earnings before interest, taxes, depreciation and amortization (EBITDA), was
EBITDA margin, was
Earnings before interest, taxes, depreciation and amortization (EBITDA), as adjusted, for Sprint听acquisition costs and cash paid under the IP Transit Services Agreement, was
EBITDA margin, as adjusted for Sprint听acquisition costs and cash paid under the IP Transit Services Agreement, was
Basic and diluted net loss per share was
Total customer connections decreased by
The number of on-net buildings increased by 143 from June 30, 2024 to 3,529 as of June 30, 2025 and increased by 29 from March 31, 2025.
Optical Wave Network听
Acquiring the Sprint network has also allowed Cogent to construct a wavelength network using predominantly owned fiber. This enabled Cogent to expand its product offerings to include optical wavelength services.听 As of June 30, 2025, Cogent was offering optical wavelength services in 938 data centers in
Quarterly Dividend Increase Approved
On August 6, 2025, Cogent's Board approved a regular quarterly dividend of
The payment of any future dividends and any other returns of capital will be at the discretion of the Board and may be reduced, eliminated or increased and will be dependent upon Cogent's financial position, results of operations, available cash, cash flow, capital requirements, limitations under Cogent's debt indentures and other factors deemed relevant by the Board.
Stock Buyback Program
In Q2 2025, Cogent purchased 229,507 shares of its common stock for
Conference Call and Website Information
Cogent will host a conference call with financial analysts at 8:30 a.m. (ET) on August 7, 2025 to discuss Cogent's operating results for the second quarter of 2025.听 Investors and other interested parties may access a live audio webcast of the earnings call in the "Events" section of Cogent's website at . A replay of the webcast, together with the press release, will be available on the website following the earnings call.听 A downloadable file of Cogent's "Summary of Financial and Operational Results" and a transcript of its conference call will also be available on Cogent's website following the conference call.听
About Cogent Communications
Cogent Communications (NASDAQ: CCOI) is a multinational, Tier 1 facilities-based ISP.听 Cogent specializes in providing businesses with high-speed Internet access, Ethernet transport, optical wavelength, optical transport and colocation services. Cogent's facilities-based, all-optical IP network backbone provides services in 302 markets globally.
Cogent Communications is headquartered at 2450 N Street, NW,
听
COGENT COMMUNICATIONS HOLDINGS,听INC., AND SUBSIDIARIES Summary of Financial and Operational Results | ||||||
Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | |
Metric ($ in 000's, except share, per share, | ||||||
On-Net revenue (15) (17) | ||||||
听% Change from previous Qtr. | 0.4听% | 1.5听% | -3.0听% | -5.7听% | 0.7听% | 2.1听% |
Off-Net revenue | ||||||
听% Change from previous Qtr. | -4.4听% | -5.7听% | -0.1听% | 1.7听% | -5.2听% | -4.8听% |
Wavelength revenue (1) | ||||||
听% Change from previous Qtr. | 7.0听% | 9.0听% | 45.8听% | 31.8听% | 2.2听% | 27.2听% |
Non-Core revenue (2) | ||||||
听% Change from previous Qtr. | -16.8听% | -23.7听% | -10.2听% | -18.5听% | -10.3听% | -11.4听% |
Service revenue 鈥� total (15) (17) | ||||||
听% Change from previous Qtr. | -2.2听% | -2.2听% | -1.2听% | -1.9听% | -2.1听% | -0.3听% |
Constant currency total revenue quarterly growth | -2.3听% | -2.0听% | -1.5听% | -1.5听% | -1.9听% | -1.3听% |
Constant currency total revenue quarterly growth | 73.1听% | 8.8听% | -6.7听% | -7.1听% | -6.7听% | -6.0听% |
Constant currency and excise tax impact on total | -2.3听% | -1.5听% | -1.7听% | -2.0听% | -1.6听% | -1.2听% |
Constant currency and excise tax impact on total | 62.4听% | 5.4听% | -8.6听% | -7.3听% | -6.6听% | -6.3听% |
Excise Taxes included in service revenue (4) | ||||||
听% Change from previous Qtr. | 0.6听% | -6.7听% | 3.0听% | 6.1听% | -3.6听% | -1.0听% |
IPv4 Revenue, included in On-Net revenue (19) | ||||||
听% Change from previous Qtr. | 2.8听% | 7.8听% | 2.7听% | 11.8听% | 14.8听% | 6.3听% |
IPv4 Addresses Billed | 12,213,414 | 12,813,955 | 12,943,590 | 13,033,248 | 12,879,749 | 13,187,109 |
听% Change from previous Qtr. | 6.8听% | 4.9听% | 1.0听% | 0.7听% | -1.2听% | 2.4听% |
Corporate revenue (5) | ||||||
听% Change from previous Qtr. | -1.4听% | -4.3听% | -2.8听% | -2.7听% | -2.1听% | -1.5听% |
Net-centric revenue (5) (15) | ||||||
听 % Change from previous Qtr. | -1.3听% | -0.9听% | 0.8听% | 1.9听% | -1.1听% | 5.1听% |
Enterprise revenue (5) (17) | ||||||
听 % Change from previous Qtr. | -5.7听% | 0.9听% | -1.4听% | -7.1听% | -4.1听% | -8.8听% |
Network operations expenses (4) | ||||||
听% Change from previous Qtr. | -3.2听% | -7.6听% | 3.4听% | -4.0听% | -11.5听% | 0.0听% |
GAAP gross profit (6) | ||||||
听% Change from previous Qtr. | -11.4听% | 14.8听% | -67.5听% | 203.4听% | 12.5听% | -0.3听% |
GAAP gross margin (6) | 9.9听% | 11.6听% | 3.8听% | 11.8听% | 13.6听% | 13.6听% |
Non-GAAP gross profit (3) (7) | ||||||
听% Change from previous Qtr. | -0.3听% | 7.2听% | -8.1听% | 1.5听% | 12.8听% | -0.8听% |
Non-GAAP gross margin (3) (7) | 36.7听% | 40.2听% | 37.4听% | 38.7听% | 44.6听% | 44.4听% |
Selling, general and administrative expenses (8) | ||||||
听% Change from previous Qtr. | -6.4听% | -7.1听% | -7.5听% | -7.5听% | 19.0听% | -8.4听% |
Depreciation and amortization expense (18) | ||||||
听% Change from previous Qtr. | 4.6听% | 4.4听% | 15.9听% | -21.6听% | 13.0听% | -1.0听% |
Equity-based compensation expense | ||||||
听% Change from previous Qtr. | 4.0听% | -48.7听% | 120.9听% | -6.7听% | 9.1听% | -41.8听% |
Operating income (loss) | ||||||
听% Change from previous Qtr. | -13.3听% | -20.6听% | 22.7听% | -43.3听% | 23.0听% | -21.9听% |
Interest expense (9) | ||||||
听% Change from previous Qtr. | -34.1听% | 68.8听% | -16.4听% | 39.7听% | -25.0听% | 43.1听% |
Non-cash change in valuation 鈥� Swap Agreement | ||||||
Gain (reduction) - 听gain on bargain purchase (10) | $- | $- | $- | $- | ||
Net loss | ||||||
Basic net loss per common share | ||||||
Diluted net loss per common share | ||||||
Weighted average common shares 鈥� basic | 47,416,268 | 47,511,613 | 47,426,131 | 47,540,833 | 47,676,735 | 47,592,836 |
听% Change from previous Qtr. | 0.1听% | 0.2听% | -0.2听% | 0.2听% | 0.3听% | -0.2听% |
Weighted average common shares 鈥� diluted | 47,416,268 | 47,511,613 | 47,426,131 | 47,540,833 | 47,676,735 | 47,592,836 |
听% Change from previous Qtr. | -1.3听% | 0.2听% | -0.2听% | 0.2听% | 0.3听% | -0.2听% |
EBITDA (3) | ||||||
听% Change from previous Qtr. | 207.0听% | 47.0听% | 32.2听% | 16.7听% | 4.6听% | 10.8听% |
EBITDA margin (3) | 6.9听% | 10.4听% | 13.9听% | 16.6听% | 17.7听% | 19.7听% |
Sprint acquisition costs (14) | $- | $- | $- | $- | ||
Cash payments under IP Transit Services | ||||||
EBITDA, as adjusted for Sprint acquisition costs | ||||||
听% Change from previous Qtr. | 4.1听% | -7.7听% | -42.7听% | 9.8听% | 2.9听% | 6.9听% |
EBITDA, as adjusted for Sprint acquisition costs | 43.2听% | 40.8听% | 23.7听% | 26.5听% | 27.8听% | 29.8听% |
Net cash provided by (used in) operating activities | ||||||
听 % Change from previous Qtr. | 139.5听% | -215.4听% | 8.8听% | 171.8听% | 150.1听% | -221.1听% |
Capital expenditures | ||||||
听% Change from previous Qtr. | -6.3听% | 19.3听% | 21.5听% | -22.2听% | 26.0听% | -3.3听% |
Principal payments of capital (finance) lease | ||||||
听% Change from previous Qtr. | 23.5听% | 474.4听% | -96.6听% | 519.6听% | -71.4听% | 6.5听% |
Dividends paid (16) | ||||||
Gross Leverage Ratio (3) (11) | 3.57 | 4.06 | 4.94 | 5.72 | 6.69 | 8.65 |
Net Leverage Ratio (3) (11) | 3.17 | 3.14 | 4.13 | 5.07 | 6.08 | 7.52 |
Gross Leverage Ratio, adjusted for amounts Due | 2.64 | 3.37 | 4.16 | 4.91 | 5.81 | 7.74 |
Net Leverage Ratio, adjusted for amounts Due | 2.24 | 2.45 | 3.36 | 4.25 | 5.21 | 6.61 |
Gross Leverage Ratio under the Company's | 3.51 | 4.50 | 5.11 | 5.81 | 5.86 | 6.82 |
Net Leverage Ratio under the Company's | 3.14 | 3.50 | 4.33 | 5.15 | 5.33 | 6.14 |
Secured Leverage Ratio under the Company's | 2.33 | 2.49 | 2.90 | 3.38 | 3.44 | 4.20 |
Interest Coverage Ratio under the Company's | 4.05 | 4.06 | 3.85 | 2.88 | 2.80 | 2.43 |
Customer Connections 鈥� end of period (15) | ||||||
On-Net customer connections | 87,574 | 87,387 | 87,655 | 87,500 | 86,781 | 87,407 |
听% Change from previous Qtr. | -0.8听% | -0.2听% | 0.3听% | -0.2听% | -0.8听% | 0.7听% |
Off-Net customer connections | 34,579 | 32,758 | 32,420 | 28,963 | 27,508 | 26,239 |
听% Change from previous Qtr. | -5.7听% | -5.3听% | -1.0听% | -10.7听% | -5.0听% | -4.6听% |
Wavelength customer connections (1) | 693 | 754 | 1,041 | 1,118 | 1,322 | 1,469 |
听% Change from previous Qtr. | 4.8听% | 8.8听% | 38.1听% | 7.4听% | 18.2听% | 11.1听% |
Non-Core customer connections (2) | 10,037 | 7,883 | 5,217 | 5,802 | 5,120 | 3,615 |
听% Change from previous Qtr. | -16.2听% | -21.5听% | -33.8听% | 11.2听% | -11.8听% | -29.4听% |
Total customer connections (15) | 132,883 | 128,782 | 126,333 | 123,383 | 120,731 | 118,730 |
听% Change from previous Qtr. | -3.4听% | -3.1听% | -1.9听% | -2.3听% | -2.1听% | -1.7听% |
Corporate customer connections (5) | 51,821 | 48,690 | 47,613 | 46,371 | 45,295 | 44,307 |
听 % Change from previous Qtr. | -4.9听% | -6.0听% | -2.2听% | -2.6听% | -2.3听% | -2.2听% |
Net-centric customer connections (5) (15) | 61,599 | 61,736 | 62,273 | 62,236 | 61,795 | 62,659 |
听% Change from previous Qtr. | -1.2听% | 0.2听% | 0.9听% | -0.1听% | -0.7听% | 1.4听% |
Enterprise customer connections (5) (17) | 19,463 | 18,356 | 16,447 | 14,776 | 13,641 | 11,764 |
听% Change from previous Qtr. | -6.2听% | -5.7听% | -10.4听% | -10.2听% | -7.7听% | -13.8听% |
On-Net Buildings 鈥� end of period | ||||||
Multi-Tenant office buildings | 1,861 | 1,864 | 1,870 | 1,871 | 1,867 | 1,871 |
Carrier neutral data center buildings | 1,376 | 1,393 | 1,410 | 1,423 | 1,453 | 1,471 |
Cogent data centers | 78 | 86 | 95 | 104 | 101 | 101 |
Cogent edge data centers | 6 | 43 | 49 | 55 | 79 | 86 |
Total on-net buildings | 3,321 | 3,386 | 3,424 | 3,453 | 3,500 | 3,529 |
Total carrier neutral data center nodes | 1,586 | 1,602 | 1,627 | 1,646 | 1,668 | 1,675 |
Wave enabled data centers | 295 | 516 | 657 | 808 | 883 | 938 |
Square feet 鈥� multi-tenant office buildings 鈥� on-net | 1,009,702,653 | 1,011,171,523 | 1,015,544,543 | 1,015,861,483 | 1,015,459,520 | 1,017,918,826 |
Total听Technical Buildings Owned (12) | 482 | 482 | 482 | 482 | 482 | 482 |
Square feet 鈥� Technical Buildings Owned (12) | 1,603,569 | 1,603,569 | 1,603,569 | 1,603,569 | 1,603,569 | 1,603,569 |
Network 鈥� end of period | ||||||
Intercity route miles 鈥� Leased | 76,211 | 75,965 | 77,561 | 79,621 | 79,867 | 73,075 |
Metro route miles 鈥� Leased | 25,977 | 27,373 | 28,510 | 29,802 | 30,788 | 31,297 |
Metro fiber miles 鈥� Leased | 79,138 | 80,042 | 84,476 | 87,678 | 90,696 | 92,631 |
Intercity route miles 鈥� Owned | 21,883 | 21,883 | 21,883 | 21,883 | 21,883 | 21,883 |
Metro route miles 鈥� Owned | 1,704 | 1,704 | 1,704 | 1,704 | 1,704 | 1,704 |
Connected networks 鈥� AS's | 8,098 | 8,135 | 8,212 | 8,250 | 8,240 | 8,085 |
Headcount 鈥� end of period (13) | ||||||
Sales force 鈥� quota bearing (13) | 677 | 656 | 655 | 650 | 629 | 628 |
Sales force 鈥� total (13) | 871 | 851 | 847 | 843 | 820 | 820 |
Total employees (13) | 1,955 | 1,901 | 1,908 | 1,916 | 1,899 | 1,889 |
Sales rep productivity 鈥� units per full time | 4.0 | 3.8 | 4.0 | 3.5 | 3.8 | 4.8 |
FTE 鈥� sales reps | 627 | 632 | 620 | 622 | 605 | 588 |
(1) In connection with the acquisition听of the Wireline Business, Cogent began to provide optical wavelength services and optical transport services over its fiber network.听
(2) Consists of legacy services of companies whose assets or businesses were acquired by Cogent.
(3) See Schedules of Non-GAAP measures below for definitions and reconciliations to GAAP measures.
(4) Network operations expense excludes equity-based compensation expense of
(5) In connection with the acquisition听of the Wireline Business, Cogent classified revenue and customer connections as follows:
$12.9 million $6.5 million $20.1 million - Conversely, Cogent reclassified
$0.3 million
(6) GAAP gross profit is defined as total service revenue less network operations expense, depreciation and amortization and equity-based compensation included in network operations expense.听 GAAP gross margin is defined as GAAP gross profit divided by total service revenue.
(7) Non-GAAP gross profit represents service revenue less network operations expense, excluding equity-based compensation and amounts shown separately (depreciation and amortization expense). Non-GAAP gross margin is defined as non-GAAP gross profit divided by total service revenue.听 Management believes that non-GAAP gross profit and non-GAAP gross margin are relevant measures to provide investors. Management uses them to measure the margin available to the company after network service costs, in essence a measure of the efficiency of the Company's network.
(8) Excludes equity-based compensation expense of
(9) As of June 30, 2025, Cogent was party to an interest rate swap agreement (the "Swap Agreement") that has the economic effect of modifying the fixed interest rate obligation associated with its Senior Secured 2026 Notes to a variable interest rate obligation based on the Secured Overnight Financing Rate ("SOFR") so that the interest payable on the 2026 Notes effectively became variable based on overnight SOFR. Interest expense includes payments of
(10) The gain on bargain purchase from the Sprint acquisition was
(In thousands) Gain on bargain purchase | |||
Fair value of net assets acquired | |||
Total net consideration to be received from Seller, net of discounts | 602,581 | ||
Gain on bargain purchase |
(11) Includes cash payments under the IP Transit Services Agreement, as discussed above, of
$87.5 million $66.7 million $25.0 million $25.0 million $25.0 million $25.0 million
(12) In connection with the acquisition of the Wireline Business, Cogent acquired 482 technical buildings.听 Cogent converted 52 of those buildings to Cogent Data Centers and 79 into Cogent Edge Data Centers.
(13) In connection with the acquisition of the Wireline Business, Cogent hired 942 total employees, including 75 quota bearing sales employees and 114 sales employees.
- As of March 31, 2024, there were 718 employees remaining from the original Wireline Business employees.
- As of June 30, 2024, there were 655 employees remaining from the original Wireline Business employees.
- As of September 30, 2024, there were 635 employees remaining from the original Wireline Business employees.
- As of December 31, 2024, there were 624 employees remaining from the original Wireline Business employees.
- As of March 31, 2025, there were 618 employees remaining from the original Wireline Business employees.
- As of June 30, 2025, there were 603 employees remaining from the original Wireline Business employees.
(14) In connection with the acquisition of the Wireline Business the Company incurred the following Sprint acquisition costs:
$9.0 million $12.4 million
Included in Sprint acquisition costs were the following reimbursable severance costs:
$4.3 million $8.0 million
(15) Net-centric revenue under the CSA (predominantly on-net revenue) was
$3.2 million $5.9 million $4.1 million $1.5 million $0.7 million $1.1 million
Net-centric customer connections under the CSA were:
- 2,658 as of March 31, 2024,
- 2,117 as of June 30, 2024,
- 2,053 as of September 30, 2024,
- 1,776 as of December 31, 2024,
- 1,478 as of March 31, 2025, and
- 1,595 as of June 30, 2025.
(16) The first quarter 2024 dividend totaling
(17) Included in on-net revenue and enterprise revenue from May 2023 to July 2024 was
(18) On July 1, 2024, Cogent changed its estimated useful life of its owned fiber from an average of 14 years to an average of 40 years.
(19) Amounts previously reported and adjusted in our Q4 2024 earnings release were
(20) Amounts Due from T-Mobile include 1) Due from T-Mobile, IP Transit Services Agreement, current portion, 1) Due from T-Mobile, IP Transit Services Agreement, long-term portion and 3) Due from T-Mobile, Purchase Agreement, all amounts net of their applicable discounts. These amounts totaled
NM听 Not meaningful
Schedules of Non-GAAP Measures听
EBITDA, EBITDA, as adjusted for Sprint acquisition costs and cash payments made to the Company under the IP Transit Services Agreement, EBITDA margin and EBITDA, as adjusted for Sprint acquisition costs and cash payments made to the Company under the IP Transit Services Agreement, margin
EBITDA represents net cash flows provided by operating activities plus changes in operating assets and liabilities, cash interest expense and cash income tax expense.听 Management believes the most directly comparable measure to EBITDA calculated in accordance with generally accepted accounting principles in
The Company believes that EBITDA, EBITDA, as adjusted for Sprint acquisition costs and cash payments made to the Company under the IP Transit Services Agreement, EBITDA margin and EBITDA as adjusted for Sprint acquisition costs and cash payments made to the Company under the IP Transit Services Agreement margin are useful measures of its ability to service debt, fund capital expenditures, pay dividends and expand its business.听 The company believes its EBITDA, as adjusted for Sprint acquisition costs and cash payments made to the Company under the IP Transit Services Agreement, is a useful measure because it includes recurring cash flows stemming from the IP Transit Services Agreement that are of the same type as contracted payments under commercial contracts.听 The measurements are an integral part of the internal reporting and planning system used by management as a supplement to GAAP financial information. EBITDA, EBITDA, as adjusted for Sprint acquisition costs and cash payments made to the Company under the IP Transit Agreement, EBITDA margin and EBITDA as adjusted for Sprint acquisition costs and cash payments made to the Company under the IP Transit Agreement margin are not recognized terms under GAAP and accordingly, should not be viewed in isolation or as a substitute for the analysis of results as reported under GAAP, but rather as a supplemental measure to GAAP. For example, these measures are not intended to reflect the Company's free cash flow, as they do not consider certain current or future cash requirements, such as capital expenditures, contractual commitments, and changes in working capital needs, interest expenses and debt service requirements. The Company's calculations of these measures may also differ from the calculations performed by its competitors and other companies and as such, their utility as a comparative measure is limited.
EBITDA, and EBITDA, as adjusted for Sprint acquisition costs and cash payments made to the Company under the IP Transit Services Agreement, are reconciled to net cash provided by operating activities in the table below.
Q1听 | Q2听 | Q3听 | Q4听 | Q1听 | Q2 | |
($ in 000's) 鈥� unaudited | ||||||
Net cash provided by (used in) operating activities | ||||||
Changes in operating assets and liabilities | ||||||
Cash interest expense and income tax expense | 33,873 | 38,220 | 33,219 | (571) | 34,022 | 50,290 |
EBITDA | ||||||
PLUS: Sprint acquisition costs | $- | $- | $- | $- | ||
PLUS: Cash payments made to the Company under IP Transit Services Agreement | 87,500 | 66,667 | 25,000 | 25,000 | 25,000 | 25,000 |
EBITDA, as adjusted for Sprint acquisition costs and cash payments made to the Company | ||||||
EBITDA margin | 6.9听% | 10.4听% | 13.9听% | 16.6听% | 17.7听% | 19.7听% |
EBITDA, as adjusted for Sprint acquisition costs and cash payments made to the Company | 43.2听% | 40.8听% | 23.7听% | 26.5听% | 27.8听% | 29.8听% |
Constant currency revenue is reconciled to service revenue as reported in the tables below.
Constant currency impact on revenue changes 鈥� sequential periods
($ in 000's) 鈥� unaudited | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 |
Service revenue, as reported 鈥� current period | ||||||
Impact of foreign currencies on service revenue | (304) | 323 | (620) | 1,022 | 542 | (2,419) |
Service revenue - as adjusted for currency impact (1) | ||||||
Service revenue, as reported 鈥� prior sequential period | ||||||
Constant currency revenue increase (decrease) | ||||||
Constant currency revenue percent increase (decrease) | -2.3听% | -2.0听% | -1.5听% | -1.5听% | -1.9听% | -1.3听% |
(1) | Service revenue, as adjusted for currency impact, is determined by translating the service revenue for the current period at the average foreign currency exchange rates for the prior sequential period. The Company believes that disclosing quarterly sequential revenue growth without the impact of foreign currencies on service revenue is a useful measure of sequential revenue growth. Service revenue, as adjusted for currency impact, is an integral part of the internal reporting and planning system used by management as a supplement to GAAP financial information. |
Constant currency impact on revenue changes 鈥� prior year periods
($ in 000's) 鈥� unaudited | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 |
Service revenue, as reported 鈥� current period | ||||||
Impact of foreign currencies on service revenue | (362) | 420 | (213) | 405 | 1,258 | (1,507) |
Service revenue - as adjusted for currency impact (2) | ||||||
Service revenue, as reported 鈥� prior year period | ||||||
Constant currency revenue increase | ||||||
Constant currency percent revenue increase | 73.1听% | 8.8听% | -6.7听% | -7.1听% | -6.7听% | -6.0听% |
(2) | Service revenue, as adjusted for currency impact, is determined by translating the service revenue for the current period at the average foreign currency exchange rates for the comparable prior year period. The Company believes that disclosing year over year revenue growth without the impact of foreign currencies on service revenue is a useful measure of revenue growth. Service revenue, as adjusted for currency impact, is an integral part of the internal reporting and planning system used by management as a supplement to GAAP financial information. |
Revenue on a constant currency basis and adjusted for the impact of excise taxes is reconciled to service revenue as reported in the tables below.
Constant currency and excise tax impact on revenue changes 鈥� sequential periods
($ in 000's) 鈥� unaudited | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 |
Service revenue, as reported 鈥� current period | ||||||
Impact of foreign currencies on service revenue | (304) | 323 | (620) | 1,022 | 542 | (2,419) |
Impact of excise taxes on service revenue | (121) | 1,367 | (570) | (1,208) | 760 | 202 |
Service revenue - as adjusted for currency and excise taxes impact (3) | ||||||
Service revenue, as reported 鈥� prior sequential period | ||||||
Constant currency and excise taxes revenue increase (decrease) | ||||||
Constant currency and excise tax revenue percent increase (decrease) | -2.3听% | -1.5听% | -1.7听% | -2.0听% | -1.6听% | -1.2听% |
(3) | Service revenue, as adjusted for currency impact and the impact of excise taxes, is determined by translating the service revenue for the current period at the average foreign currency exchange rates for the prior sequential period and adjusting for the changes in excise taxes recorded as revenue between the periods presented. The Company believes that disclosing quarterly sequential revenue growth without the impact of foreign currencies and excise taxes on service revenue is a useful measure of sequential revenue growth. Service revenue, as adjusted for the impact of foreign currency and excise taxes, is an integral part of the internal reporting and planning system used by management as a supplement to GAAP financial information. |
Constant currency and excise tax impact on revenue changes 鈥� prior year periods
($ in 000's) 鈥� unaudited | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 |
Service revenue, as reported 鈥� current period | ||||||
Impact of foreign currencies on service revenue | (362) | 420 | (213) | 405 | 1,258 | (1,507) |
Impact of excise taxes on service revenue | (16,356) | (8,142) | (5,195) | (532) | 349 | (816) |
Service revenue - as adjusted for currency and excise taxes impact (4) | ||||||
Service revenue, as reported 鈥� prior year period | ||||||
Constant currency and excise taxes revenue increase | ||||||
Constant currency and excise tax percent revenue increase | 62.4听% | 5.4听% | -8.6听% | -7.3听% | -6.6听% | -6.3听% |
(4) | Service revenue, as adjusted for currency impact and the impact of excise taxes, is determined by translating the service revenue for the current period at the average foreign currency exchange rates for the prior year period and adjusting for the changes in excise taxes recorded as revenue between the periods presented. The Company believes that disclosing quarterly sequential revenue growth without the impact of foreign currencies and excise taxes on service revenue is a useful measure of sequential revenue growth. Service revenue, as adjusted for the impact of foreign currency and excise taxes, is an integral part of the internal reporting and planning system used by management as a supplement to GAAP financial information. |
Non-GAAP gross profit and non-GAAP gross margin
Non-GAAP gross profit and non-GAAP gross margin are reconciled to GAAP gross profit and GAAP gross margin in the table below.
Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | |
($ in 000's) 鈥� unaudited | ||||||
Service revenue total | ||||||
Minus - Network operations expense including equity-based compensation and | 239,824 | 230,203 | 247,367 | 222,455 | 213,477 | 212,782 |
GAAP Gross Profit (5) | ||||||
Plus - Equity-based compensation 鈥� network operations expense | 385 | 350 | 469 | 477 | 490 | 506 |
Plus 鈥� Depreciation and amortization expense | ||||||
Non-GAAP Gross Profit (6) | ||||||
GAAP Gross Margin (5) | 9.9听% | 11.6听% | 3.8听% | 11.8听% | 13.6听% | 13.6听% |
Non-GAAP Gross Margin (6) | 36.7听% | 40.2听% | 37.4听% | 38.7听% | 44.6听% | 44.4听% |
(5) | GAAP gross profit is defined as total service revenue less network operations expense, depreciation and amortization and equity-based compensation included in network operations expense.听 GAAP gross margin is defined as GAAP gross profit divided by total service revenue. |
(6) | Non-GAAP gross profit represents service revenue less network operations expense, excluding equity-based compensation and amounts shown separately (depreciation and amortization expense). Non-GAAP gross margin is defined as non-GAAP gross profit divided by total service revenue.听 Management believes that non-GAAP gross profit and non-GAAP gross margin are relevant measures for investors, as they are measures that management uses to measure the margin and amount available to the Company after network service costs, in essence, these are measures of the efficiency of the Company's network. |
Gross and Net Leverage Ratios
Gross leverage ratio is defined as total debt divided by the trailing 12 months EBITDA, as adjusted for Sprint acquisition costs and cash payments under the IP Transit Services Agreement.听 Net leverage ratio is defined as total net debt (total debt minus cash and cash equivalents) divided by the last 12 months EBITDA, as adjusted for Sprint acquisition costs and cash payments under the IP Transit Services Agreement.听 Gross leverage, adjusted for amounts Due from T-Mobile, is defined as total debt minus amounts due from T-Mobile divided by the last 12 months EBITDA, as adjusted for Sprint acquisition costs and cash payments under the IP Transit Services Agreement.听 Net leverage, adjusted for amounts Due from T-Mobile, is defined as total net debt (total debt minus cash and cash equivalents) minus amounts due from T-Mobile divided by the last 12 months EBITDA, as adjusted for Sprint acquisition costs and cash payments under the IP Transit Services Agreement.听
Cogent's gross leverage ratios and net leverage ratios are shown below.
($ in 000's) 鈥� unaudited | As of | As of | As of | As of | As of | As of |
Cash and cash equivalents & restricted cash | ||||||
Debt | ||||||
Capital (finance) leases 鈥� current portion | 64,043 | 21,253 | 21,939 | 21,225 | 24,685 | 26,523 |
Capital (finance) leases 鈥� long term | 453,473 | 405,176 | 460,632 | 517,161 | 543,852 | 578,634 |
Senior Secured 2032 Notes | 600,000 | |||||
Senior Secured 2026 Notes | 500,000 | 500,000 | 500,000 | 500,000 | 500,000 | |
Secured IPv4 Notes | 206,000 | 206,000 | 206,000 | 206,000 | 380,400 | |
Senior Unsecured 2027 Notes | 450,000 | 750,000 | 750,000 | 750,000 | 750,000 | 750,000 |
Total debt | 1,467,516 | 1,882,429 | 1,938,571 | 1,994,386 | 2,024,537 | 2,335,557 |
Total net debt | 1,304,242 | 1,456,188 | 1,622,479 | 1,766,470 | 1,840,567 | 2,028,832 |
Trailing 12 months EBITDA, as adjusted for Sprint | 411,001 | 463,102 | 392,525 | 348,392 | 302,636 | 269,968 |
Gross leverage ratio | 3.57 | 4.06 | 4.94 | 5.72 | 6.69 | 8.65 |
Net leverage ratio | 3.17 | 3.14 | 4.13 | 5.07 | 6.08 | 7.52 |
Total amounts Due from T-Mobile | ||||||
Total debt, adjusted for amounts Due from T-Mobile | 1,083,535 | 1,558,779 | 1,634,074 | 1,709,407 | 1,759,447 | 2,090,736 |
Total net debt, adjusted for amounts Due from T-Mobile | 920,261 | 1,132,538 | 1,317,982 | 1,481,491 | 1,575,447 | 1,784,011 |
Gross leverage ratio, adjusted for amounts Due from T- | 2.64 | 3.37 | 4.16 | 4.91 | 5.81 | 7.74 |
Net leverage ratio, adjusted for amounts Due from T-Mobile | 2.24 | 2.45 | 3.36 | 4.25 | 5.21 | 6.61 |
Ratios under the Company's indentures
Consolidated Leverage Ratio is defined in the Company's Indentures as total debt divided by Consolidated Cash Flow (as defined in the Company's Indentures) for the most recently completed period of four consecutive fiscal quarters of the Company (the "Reference Period"), subject to certain adjustments provided for in the Company's Indentures. Secured Leverage Ratio is defined in the Company's Indentures as total secured debt divided by Consolidated Cash Flow for the Reference Period, subject to certain adjustments provided for in the Company's Indentures. Net leverage ratio is presented as total net debt (total debt minus cash and cash equivalents) divided by the last 12 months Consolidated Cash Flow. Net leverage ratio is not a defined term in the Company's Indentures.听 Fixed Charge Coverage Ratio is defined in the Company's Indentures as Consolidated Cash Flow for the Reference Period divided by Fixed Charges (as defined in the Company's Indentures) for the Reference Period, which largely consist of interest expense, subject to certain adjustments provided for in the Company's Indentures. Cogent's ratios are shown in the table below.
($ in 000's) 鈥� unaudited | As of | As of | As of | As of | As of | As of |
Cash and cash equivalents & restricted cash | 139,342 | 372,123 | 266,822 | 205,464 | ||
Debt | ||||||
Capital (finance) leases 鈥� current portion | 21,657 | 21,253 | 21,939 | 21,225 | 24,685 | 26,523 |
Capital (finance) leases 鈥� long term | 371,116 | 405,176 | 460,632 | 517,161 | 543,852 | 578,634 |
Letters of credit | 123 | 123 | 126 | 121 | 124 | 130 |
Senior Secured 2026 Notes | 500,000 | 500,000 | 500,000 | 500,000 | 500,000 | |
Senior Secured 2032 Notes | 600,000 | |||||
Senior Unsecured 2027 Notes | 450,000 | 750,000 | 750,000 | 750,000 | 750,000 | 750,000 |
Total debt | 1,342,896 | 1,676,552 | 1,732,697 | 1,788,507 | 1,818,661 | 1,955,287 |
Total net debt | 1,203,554 | 1,304,429 | 1,465,875 | 1,583,043 | 1,652,985 | 1,760,122 |
Total secured debt | 892,896 | 926,552 | 982,697 | 1,038,507 | 1,068,661 | 1,205,287 |
Consolidated 听Cash Flow (2) | 382,850 | 372,621 | 338,892 | 307,655 | 310,345 | 286,881 |
Consolidated 听Leverage Ratio for the | 3.51 | 4.50 | 5.11 | 5.81 | 5.86 | 6.82 |
Net leverage ratio (1) | 3.14 | 3.50 | 4.33 | 5.15 | 5.33 | 6.14 |
Secured Leverage Ratio for the Reference | 2.33 | 2.49 | 2.90 | 3.38 | 2.58 | 4.20 |
Fixed Charges for the Reference Period (2) | 94,614 | 91,723 | 88,057 | 106,877 | 110,704 | 118,290 |
Fixed Charge Coverage Ratio for the | 4.05 | 4.06 | 3.85 | 2.88 | 2.80 | 2.43 |
(1) | Net leverage ratio is not a defined term under the Company's Indentures. |
(2) | Consolidated Cash Flow as defined in the Company's |
听
Ratios under the Company's | |
Q2-2025 | |
Consolidated Cash Flow under the Indentures | 286,881 |
PLUS: Cash Payments under IP Transit Services Agreement with TMUSA | 100,000 |
Consolidated Cash Flow - | 386,881 |
Consolidated Leverage Ratio for the Reference Period - | 5.05 |
Net leverage ratio - | 4.55 |
Secured Leverage Ratio for the Reference Period - | 3.12 |
Fixed Charges for the Reference Period | 118,290 |
Fixed Charge Coverage Ratio for the Reference Period - | 3.27 |
Cogent's SEC filings are available online via the Investor Relations section of or on the Securities and Exchange Commission's website at .
听
COGENT COMMUNICATIONS HOLDINGS,听INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2025 AND DECEMBER 31, 2024 (IN THOUSANDS, EXCEPT SHARE DATA) | ||||||
June 30, 2025 | December听31, 2024 | |||||
(Unaudited) | ||||||
Assets | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 213,651 | $ | 198,486 | ||
Restricted cash | 93,074 | 29,430 | ||||
Accounts receivable, net of allowance for credit losses of | 95,127 | 96,934 | ||||
Due from T-Mobile, IP Transit Services Agreement, current portion, net of discount of | 86,280 | 83,085 | ||||
Due from T-Mobile, Transition Services Agreement | 119 | 62 | ||||
Prepaid expenses and other current assets | 72,720 | 74,104 | ||||
Total current assets | 560,971 | 482,101 | ||||
Property and equipment: | ||||||
Property and equipment | 3,546,033 | 3,319,731 | ||||
Accumulated depreciation and amortization | (1,820,651) | (1,655,564) | ||||
Total property and equipment, net | 1,725,382 | 1,664,167 | ||||
Right-of-use leased assets | 325,681 | 324,315 | ||||
IPv4 intangible asset | 458,000 | 458,000 | ||||
Other intangible assets, net | 12,147 | 13,029 | ||||
Deposits and other assets | 29,809 | 29,596 | ||||
Due from T-Mobile, IP Transit Services Agreement, net of discount of | 135,323 | 179,534 | ||||
Due from T-Mobile, Purchase Agreement, net of discount of | 23,218 | 22,360 | ||||
Total assets | $ | 3,270,531 | $ | 3,173,102 | ||
Liabilities and stockholders' equity | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 49,169 | $ | 39,805 | ||
Accrued and other current liabilities | 116,653 | 134,609 | ||||
Due to T-Mobile 鈥� Transition Services Agreement | 9 | 525 | ||||
Current maturities, operating lease liabilities | 50,932 | 57,172 | ||||
Finance lease obligations, current maturities | 26,523 | 21,225 | ||||
Total current liabilities | 243,286 | 253,336 | ||||
Senior secured 2026 notes, net of unamortized debt costs of | 鈥� | 499,126 | ||||
Senior unsecured 2027 notes, net of unamortized debt costs of | 742,644 | 740,934 | ||||
Secured IPv4 notes, net of unamortized debt costs of | 370,520 | 199,298 | ||||
Senior secured 2032 notes, net of unamortized debt costs of | 597,857 | 鈥� | ||||
Operating lease liabilities, net of current maturities | 298,515 | 302,004 | ||||
Finance lease obligations, net of current maturities | 578,634 | 517,161 | ||||
Deferred income tax liabilities | 362,464 | 398,266 | ||||
Other long-term liabilities | 29,943 | 40,129 | ||||
Total liabilities | 3,223,863 | 2,950,254 | ||||
Commitments and contingencies: | ||||||
Stockholders' equity: | ||||||
Common stock, | 49 | 49 | ||||
Additional paid-in capital | 632,702 | 629,829 | ||||
Accumulated other comprehensive loss | (1,196) | (30,685) | ||||
Accumulated deficit | (584,887) | (376,345) | ||||
Total stockholders' equity | 46,668 | 222,848 | ||||
Total liabilities and stockholders' equity | $ | 3,270,531 | $ | 3,173,102 | ||
听
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS FOR THE THREE MONTHS ENDED JUNE 30, 2025 AND JUNE 30, 2024 (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) | ||||||
Three听Months听Ended June 30, 2025 | Three听Months听Ended June 30, 2024 | |||||
(Unaudited) | (Unaudited) | |||||
Service revenue | $ | 246,247 | $ | 260,443 | ||
Operating expenses: | ||||||
Network operations (including | 137,492 | 156,167 | ||||
Selling, general, and administrative (including | 64,924 | 68,345 | ||||
Acquisition costs 鈥� Sprint | 鈥� | 12,370 | ||||
Depreciation and amortization | 75,290 | 74,036 | ||||
Total operating expenses | 277,706 | 310,918 | ||||
Gain on lease termination | 鈥� | 3,332 | ||||
Operating loss | (31,459) | (47,143) | ||||
Interest expense, including change in valuation interest rate swap agreement | (39,777) | (29,541) | ||||
Loss on debt extinguishment and redemption 鈥� 2026 notes | (5,606) | 鈥� | ||||
Gain on bargain purchase 鈥� Sprint | 鈥� | 27,673 | ||||
Interest income 鈥� IP Transit Services Agreement | 4,299 | 5,934 | ||||
Interest income 鈥� Purchase Agreement | 433 | 402 | ||||
Interest income and other, net | (2,415) | 2,484 | ||||
Loss before income taxes | (74,525) | (40,191) | ||||
Income tax benefit | 16,718 | 7,853 | ||||
Net loss | $ | (57,807) | $ | (32,338) | ||
Comprehensive loss: | ||||||
Net loss | $ | (57,807) | $ | (32,338) | ||
Foreign currency translation adjustment | 17,737 | (1,722) | ||||
Comprehensive loss | $ | (40,070) | $ | (34,060) | ||
Net loss per common share: | ||||||
Basic net loss per common share | $ | (1.21) | $ | (0.68) | ||
Diluted net loss per common share | $ | (1.21) | $ | (0.68) | ||
Dividends declared per common share | $ | 1.010 | $ | 0.975 | ||
Weighted-average common shares - basic | 47,592,836 | 47,511,613 | ||||
Weighted-average common shares - diluted | 47,592,836 | 47,511,613 | ||||
听
COGENT COMMUNICATIONS HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND JUNE 30, 2024 (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) | ||||||
Six听Months听Ended June 30,听2025 | Six听Months听Ended June 30,听2024 | |||||
(Unaudited) | (Unaudited) | |||||
Service revenue | $ | 493,298 | $ | 526,613 | ||
Operating expenses: | ||||||
Network operations (including | 274,930 | 324,752 | ||||
Selling, general, and administrative (including | 138,787 | 145,392 | ||||
Acquisition costs 鈥� Sprint | 鈥� | 21,407 | ||||
Depreciation and amortization | 151,328 | 144,930 | ||||
Total operating expenses | 565,045 | 636,481 | ||||
Gain on lease termination | 鈥� | 3,332 | ||||
Operating loss | (71,747) | (106,536) | ||||
Interest expense, including change in valuation interest rate swap agreement | (73,971) | (58,703) | ||||
Loss on debt extinguishment and redemption 鈥� 2026 notes | (5,606) | 鈥� | ||||
Gain on bargain purchase 鈥� Sprint | 鈥� | 22,202 | ||||
Interest income 鈥� IP Transit Services Agreement | 8,984 | 13,264 | ||||
Interest income (loss) 鈥� Purchase Agreement | 858 | (78) | ||||
Interest income and other, net | (3,306) | 5,226 | ||||
Loss before income taxes | (144,788) | (124,625) | ||||
Income tax benefit | 34,939 | 26,980 | ||||
Net loss | $ | (109,849) | $ | (97,645) | ||
Comprehensive loss: | ||||||
Net loss | $ | (109,849) | $ | (97,645) | ||
Foreign currency translation adjustment | 29,489 | (6,756) | ||||
Comprehensive loss | $ | (80,360) | $ | (104,401) | ||
Net loss per common share: | ||||||
Basic net loss per common share | $ | (2.30) | $ | (2.06) | ||
Diluted net loss per common share | $ | (2.30) | $ | (2.06) | ||
Dividends declared per common share | $ | 2.015 | $ | 1.940 | ||
Weighted-average common shares - basic | 47,804,421 | 47,408,786 | ||||
Weighted-average common shares - diluted | 47,804,421 | 47,408,786 | ||||
听
COGENT COMMUNICATIONS HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED JUNE 30, 2025 AND JUNE 30, 2024 (IN THOUSANDS) | ||||||
Three听Months Ended June 30, 2025 | Three听Months Ended June 30, 2024 | |||||
(Unaudited) | (Unaudited) | |||||
Cash flows from operating activities: | ||||||
Net loss | $ | (57,807) | $ | (32,338) | ||
听Adjustments to reconcile net loss to net cash used in operating activities: | ||||||
Depreciation and amortization | 75,290 | 74,039 | ||||
Amortization of debt costs and discounts | 1,342 | 764 | ||||
Amortization of discounts, due from T-Mobile, IP Transit Services & Purchase Agreements | (4,731) | (6,336) | ||||
Equity-based compensation expense (net of amounts capitalized) | 4,664 | 3,566 | ||||
听 听Loss on debt extinguishment and redemption 鈥� 2026 notes | 5,606 | 鈥� | ||||
Gain on bargain purchase 鈥� Sprint Business | 鈥� | (27,673) | ||||
Gain on finance lease termination | 鈥� | (3,332) | ||||
听Deferred income taxes | (17,248) | (10,485) | ||||
听 听Changes in operating assets and liabilities: | ||||||
Accounts receivable | (7,172) | (4,507) | ||||
Prepaid expenses and other current assets | (8,483) | 12,010 | ||||
听 听Due to T-Mobile 鈥� Transition Services Agreement | (209) | (3,530) | ||||
听 听Due from T-Mobile 鈥� Transition Services Agreement | (119) | (8,619) | ||||
Accounts payable, accrued liabilities and other long-term liabilities | (35,933) | (16,400) | ||||
Deposits and other assets | 761 | 670 | ||||
Net cash used in operating activities | (44,039) | (22,171) | ||||
Cash flows from investing activities: | ||||||
Cash receipts - IP Transit Services Agreement 鈥� T-Mobile | 25,000 | 66,667 | ||||
Acquisition of Sprint Business 鈥� severance reimbursement | 鈥� | 7,989 | ||||
Purchases of property and equipment | (56,200) | (48,767) | ||||
Net cash (used in) provided by investing activities | (31,200) | 25,889 | ||||
Cash flows from financing activities: | ||||||
Dividends paid | (49,560) | (93,304) | ||||
Purchases of common stock | (11,517) | (7,968) | ||||
Net proceeds from issuance of senior unsecured 2027 notes - net of discount of | 鈥� | 291,879 | ||||
Net proceeds from issuance of secured IPv4 notes 鈥� net of debt costs of | 170,479 | 198,420 | ||||
Net proceeds from issuance of senior secured 2032 notes - net of debt costs of | 597,842 | 鈥� | ||||
Debt extinguishment and redemption 鈥� 2026 notes | (505,000) | 鈥� | ||||
Proceeds from exercises of stock options | 30 | 40 | ||||
Settlement of finance lease 鈥� at a discount | 鈥� | (114,576) | ||||
Principal payments of finance lease obligations | (8,520) | (18,896) | ||||
Net cash provided by financing activities | 193,754 | 255,595 | ||||
Effect of exchange rates changes on cash | 4,240 | 3,654 | ||||
Net increase in cash, cash equivalents and restricted cash | 122,755 | 262,967 | ||||
Cash, cash equivalents and restricted cash, beginning of period | 183,970 | 163,274 | ||||
Cash, cash equivalents and restricted cash, end of period | $ | 306,725 | $ | 426,241 | ||
听
COGENT COMMUNICATIONS HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND JUNE 30, 2024 (IN THOUSANDS) | ||||||
Six听Months Ended June 30, 2025 | Six听Months Ended June 30, 2024 | |||||
(Unaudited) | (Unaudited) | |||||
Cash flows from operating activities: | ||||||
Net loss | $ | (109,849) | $ | (97,645) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||
Depreciation and amortization | 151,328 | 144,930 | ||||
Amortization of debt costs and discounts | 2,534 | 1,106 | ||||
Amortization of discounts, due from T-Mobile, IP Transit Services & Purchase Agreements | (9,842) | (13,186) | ||||
Equity-based compensation expense (net of amounts capitalized) | 12,677 | 10,516 | ||||
Loss on debt extinguishment and redemption 鈥� 2026 notes | 5,606 | 鈥� | ||||
Gain on bargain purchase 鈥� Sprint | 鈥� | (22,202) | ||||
Gain on finance lease termination | 鈥� | (3,332) | ||||
Deferred income taxes | (35,802) | (43,554) | ||||
Changes in operating assets and liabilities: | ||||||
Accounts receivable | 1,807 | 23,799 | ||||
Prepaid expenses and other current assets | (6,222) | 12,900 | ||||
Due to T-Mobile 鈥� Transition Services Agreement | (516) | (64,622) | ||||
Due from T-Mobile 鈥� Transition Services Agreement | (57) | (11,671) | ||||
Accounts payable, accrued liabilities and other long-term liabilities | (17,784) | 62,698 | ||||
Deposits and other assets | (1,567) | (2,688) | ||||
Net cash used in operating activities | (7,687) | (2,951) | ||||
Cash flows from investing activities: | ||||||
Cash receipts - IP Transit Services Agreement 鈥� T-Mobile | 50,000 | 154,167 | ||||
Acquisition of Sprint 鈥� severance reimbursement | 鈥� | 12,323 | ||||
Purchases of property and equipment | (114,288) | (89,650) | ||||
Net cash (used in) provided by investing activities | (64,288) | 76,840 | ||||
Cash flows from financing activities: | ||||||
Dividends paid | (98,693) | (93,782) | ||||
Purchases of common stock | (11,517) | (7,968) | ||||
Net proceeds from issuance of senior unsecured 2027 notes - net of discount of | 鈥� | 291,879 | ||||
Net proceeds from issuance of secured IPv4 notes 鈥� net of debt costs of | 170,479 | 198,420 | ||||
Net proceeds from issuance of senior secured 2032 notes - net of debt costs of | 597,842 | 鈥� | ||||
Debt extinguishment and redemption 鈥� 2026 notes | (505,000) | 鈥� | ||||
Proceeds from exercises of stock options | 151 | 204 | ||||
Settlement of finance lease 鈥� at a discount | 鈥� | (114,576) | ||||
Principal payments of finance lease obligations | (16,523) | (42,131) | ||||
Net cash provided by financing activities | 136,739 | 232,046 | ||||
Effect of exchange rates changes on cash | 14,045 | 6,525 | ||||
Net increase in cash, cash equivalents and restricted cash | 78,809 | 312,460 | ||||
Cash, cash equivalents and restricted cash, beginning of period | 227,916 | 113,781 | ||||
Cash, cash equivalents and restricted cash, end of period | $ | 306,725 | $ | 426,241 | ||
Except for historical information and discussion contained herein, statements contained in this release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.听Such statements include, but are not limited to statements identified by words such as "believes," "expects," "anticipates," "estimates," "intends," "plans," "targets," "projects" and similar expressions.听 The statements in this release are based upon the current beliefs and expectations of Cogent's management and are subject to significant risks and uncertainties. 听Actual results may differ from those set forth in the forward-looking statements. 听Numerous factors could cause or contribute to such differences, including the impact of our acquisition of the Wireline Business, including our difficulties integrating our business with the acquired Wireline Business, which may result in the combined company not operating as effectively or efficiently as expected; transition services required to support the acquired Wireline Business and the related costs continuing for a longer period than expected; transition related costs associated with the acquisition; the COVID-19 pandemic and the related government policies; future economic instability in the global economy, including the risk of economic recession, recent bank failures and liquidity concerns at certain other banks or a contraction of the capital markets, which could affect spending on Internet services and our ability to engage in financing activities; the impact of changing foreign exchange rates (in particular the Euro to USD and Canadian dollar to USD exchange rates) on the translation of our non-USD denominated revenues, expenses, assets and liabilities; legal and operational difficulties in new markets; the imposition of a requirement that we contribute to the US Universal Service Fund on the basis of our Internet revenue; changes in government policy and/or regulation, including net neutrality rules听 by the United States Federal Communications Commission and in the area of data protection; cyber-attacks or security breaches of our network; increasing competition leading to lower prices for our services; our ability to attract new customers and to increase and maintain the volume of traffic on our network; the ability to maintain our Internet peering arrangements and right-of-way agreements on favorable terms; our reliance on a few equipment vendors, and the potential for hardware or software problems associated with such equipment; the dependence of our network on the quality and dependability of third-party fiber and right-of-way providers; our ability to retain certain customers that comprise a significant portion of our revenue base; the management of network failures and/or disruptions; our ability to make payments on our indebtedness as they become due and outcomes in litigation, risks associated with variable interest rates under our interest rate swap agreement, and outcomes in litigation as well as other risks discussed from time to time in our filings with the Securities and Exchange Commission, including, without limitation, our Annual Report on Form 10-K for the year December 31, 2024 and our Form 10-Q for the quarterly periods ended June 30, 2024, September 30, 2024, March 31, 2025 and June 30, 2025.听 Cogent undertakes no duty to update any forward-looking statement or any information contained in this press release or in other public disclosures at any time.
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