Q1 25 EPS
$-1.09
BEAT +1.36%
Est. $-1.11
Q1 25 Revenue
$247.0M
MISS 1.76%
Est. $251.5M
vs S&P Since Q1 25
-100.4%
TRAILING MARKET
CCOI -70.6% vs S&P +29.8%
Market Reaction
Did CCOI Beat Earnings? Q1 2025 Results
Cogent Communications delivered a mixed first quarter for 2025, narrowly beating on the bottom line while falling short on revenue, as the ongoing wind-down of Sprint-related contracts continued to weigh on its top line. The company posted a loss of … Read more Cogent Communications delivered a mixed first quarter for 2025, narrowly beating on the bottom line while falling short on revenue, as the ongoing wind-down of Sprint-related contracts continued to weigh on its top line. The company posted a loss of $1.09 per share, edging past the consensus estimate of $1.10 by 1.36%, but service revenue of $247.05 million missed expectations of $251.48 million by 1.76% and fell 7.2% year-over-year, pressured by the steep decline in T-Mobile IP Transit Agreement payments, which dropped to $25.00 million from $87.50 million in Q1 2024 as the payment schedule stepped down. The headline revenue weakness masked meaningful underlying progress; EBITDA surged 137.2% year-over-year to $43.80 million, with margins expanding to 17.7% from 6.9%, driven by an 18.7% reduction in network operations costs as Cogent continues optimizing its acquired Sprint wireline infrastructure. Faster-growing segments offered additional encouragement, with IPv4 leasing revenue climbing 42.0% to $14.40 million and wavelength services revenue nearly doubling, up 114.0% to $7.10 million. Leverage, however, remains a concern, with gross debt rising to $2.02 billion and leverage reaching 6.69x trailing EBITDA.
Key Takeaways
- • IPv4 address leasing revenue grew 42.0% YoY and 14.8% sequentially
- • Wavelength revenue grew 114.0% YoY with customer connections up 90.8% YoY
- • Network operations expenses decreased 18.7% YoY due to Sprint integration efficiencies
- • Non-GAAP gross margin improved to 44.6% from 36.7% YoY
- • EBITDA increased 137.2% YoY to $43.8 million
- • Change in estimated useful life of owned fiber from 14 years to 40 years reduced depreciation
CCOI YoY Financials
Q1 2025 vs Q1 2024, source: SEC Filings
CCOI Revenue by Segment
With YoY comparisons, source: SEC Filings
CCOI Earnings Trends
CCOI vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
CCOI EPS Trend
Earnings per share: estimate vs actual
CCOI Revenue Trend
Quarterly revenue: estimate vs actual
CCOI Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 BEAT | $-0.98 | $-0.83 | +15.31% | $239.2M | -0.94% |
| Q4 25 BEAT FY | $-1.07 | $-0.64 | +40.37% | $240.5M | -1.33% |
| FY Full Year | $-4.28 | $-3.80 | +11.21% | $975.8M | -0.33% |
| Q3 25 BEAT | $-1.22 | $-0.87 | +28.69% | $241.9M | -1.70% |
| Q2 25 MISS | $-1.18 | $-1.21 | -2.83% | $246.2M | -0.58% |
| Q1 25 BEAT | $-1.11 | $-1.09 | +1.36% | $247.0M | -1.76% |