Q3 25 EPS
$-0.87
BEAT +28.69%
Est. $-1.22
Q3 25 Revenue
$241.9M
MISS 1.70%
Est. $246.1M
vs S&P Since Q3 25
-53.5%
TRAILING MARKET
CCOI -44.8% vs S&P +8.6%
Market Reaction
Did CCOI Beat Earnings? Q3 2025 Results
Cogent Communications delivered a profitability surprise in Q3 2025, posting a net loss of $0.87 per diluted share against a consensus estimate of $1.22, a beat of 28.69%, even as revenue of $241.95 million fell short of the $246.13 million analysts … Read more Cogent Communications delivered a profitability surprise in Q3 2025, posting a net loss of $0.87 per diluted share against a consensus estimate of $1.22, a beat of 28.69%, even as revenue of $241.95 million fell short of the $246.13 million analysts had expected and declined 5.9% year-over-year. The headline driver of the bottom-line improvement was a July 2024 change in the estimated useful life of owned fiber, extended from 14 to 40 years, which sharply reduced depreciation and helped narrow the operating loss to $18.13 million from $57.83 million a year ago. EBITDA climbed 36.0% year-over-year to $48.78 million, with margin expanding to 20.2%, while operating cash flow turned positive at $3.10 million after a deeply negative prior quarter. Brighter spots included wavelength revenue surging 92.5% year-over-year to $10.18 million and IPv4 leasing revenue rising 55.5% to $17.48 million. Looking ahead, Cogent signed a non-binding letter of intent in October 2025 to sell two data centers for $144 million, a move that could provide meaningful relief against a gross leverage ratio of 8.24x, though the stock has lost significant ground this year amid investor concern over the company's financial trajectory.
Key Takeaways
- • On-net revenue increased 2.2% sequentially driven by IPv4 leasing and wavelength services growth
- • Wavelength revenue grew 92.5% year-over-year and 12.4% sequentially
- • IPv4 address leasing revenue increased 55.5% year-over-year and 14.1% sequentially
- • GAAP gross margin improved to 20.6% from 3.8% year-over-year due to change in fiber useful life estimate
- • Non-GAAP gross margin expanded to 45.8% from 37.4% year-over-year
- • Capital expenditures decreased 35.5% sequentially and 38.8% year-over-year
- • Off-net revenue declined 14.5% year-over-year and 6.9% sequentially
- • T-Mobile Commercial Agreement revenue declined to $0.4 million from $4.1 million year-over-year
- • Foreign exchange positively impacted revenue by $1.8 million year-over-year
CCOI YoY Financials
Q3 2025 vs Q3 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% |