Cogent Communications

CCOI Q2 2025 Earnings

Reported Aug 7, 2025 at 7:29 AM ET · SEC Source

Q2 25 EPS

$-1.21

MISS 2.83%

Est. $-1.18

Q2 25 Revenue

$246.2M

MISS 0.58%

Est. $247.7M

vs S&P Since Q2 25

-76.3%

TRAILING MARKET

CCOI -60.3% vs S&P +16.0%

Market Reaction

Did CCOI Beat Earnings? Q2 2025 Results

Cogent Communications delivered a disappointing second quarter, missing on both top and bottom lines as the ongoing wind-down of its T-Mobile Commercial Agreement continued to weigh on results. The company posted revenue of $246.25 million, falling s… Read more Cogent Communications delivered a disappointing second quarter, missing on both top and bottom lines as the ongoing wind-down of its T-Mobile Commercial Agreement continued to weigh on results. The company posted revenue of $246.25 million, falling short of the $247.67 million consensus by 0.58% and declining 5.5% year-over-year, while a net loss of $1.21 per diluted share came in worse than the $1.18 estimate by 2.83%, pressured by $48.69 million in interest expense and a $5.61 million loss on debt extinguishment tied to the refinancing of its 2026 notes. Bright spots were harder to ignore entirely, with wavelength revenue surging 149.8% year-over-year to $9.06 million and IPv4 leasing revenue climbing 40.1% to $15.32 million, though neither was large enough to offset broader declines in legacy off-net business. Shares fell sharply following the announcement, reflecting investor concern over a net loss that widened 79% from a year ago, even as Cogent raised its quarterly dividend for the 52nd consecutive quarter to $1.01 per share.

Key Takeaways

  • Wavelength revenue grew 149.8% YoY and 27.2% sequentially with customer connections up 94.8% YoY
  • IPv4 address leasing revenue grew 40.1% YoY and 6.3% sequentially
  • EBITDA margin expanded to 19.7% from 10.4% a year ago
  • Non-GAAP gross margin improved to 44.4% from 40.2% YoY
  • On-net buildings grew by 143 YoY to 3,529
  • Wave-enabled data centers expanded to 938 locations
  • Sales rep productivity increased to 4.8 units per FTE per month from 3.8 in Q2 2024
24/7 Wall St

CCOI YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

24/7 Wall St

CCOI Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26