Cogent Communications

CCOI Q4 2025 Earnings

Reported Feb 20, 2026 at 7:20 AM ET · SEC Source

Q4 25 EPS

$-0.64

BEAT +40.37%

Est. $-1.07

Q4 25 Revenue

$240.5M

MISS 1.33%

Est. $243.8M

vs S&P Since Q4 25

-31.4%

TRAILING MARKET

CCOI -25.1% vs S&P +6.4%

Full Year 2025 Results

FY 25 EPS

$-3.80

BEAT +11.21%

Est. $-4.28

FY 25 Revenue

$975.8M

MISS 0.33%

Est. $979.0M

Market Reaction

Did CCOI Beat Earnings? Q4 2025 Results

Cogent Communications delivered a mixed fourth quarter for fiscal 2025, narrowing its loss more than Wall Street expected while falling short on revenue. The company posted an EPS loss of $0.64, well ahead of the $1.00 consensus estimate by 36.00%, b… Read more Cogent Communications delivered a mixed fourth quarter for fiscal 2025, narrowing its loss more than Wall Street expected while falling short on revenue. The company posted an EPS loss of $0.64, well ahead of the $1.00 consensus estimate by 36.00%, but revenue of $240.52 million missed expectations of $262.96 million by 8.53% and slipped 4.7% year-over-year. The primary driver behind the bottom-line outperformance was a significant reduction in network operations expenses, alongside lower depreciation following Cogent's July 2024 decision to extend the estimated useful life of its owned fiber from 14 to 40 years, which meaningfully reduced per-period charges. Adjusted EBITDA rose 14.8% year-over-year to $76.74 million, with margin expanding to 31.9% from 26.5% a year ago, even as legacy off-net revenue continued to erode. Wavelength services offered a rare growth story, surging 73.7% year-over-year to $12.10 million. Still, the stock has faced considerable pressure, with UBS trimming its price target to $21 following the results, reflecting concern over the pace of the company's newer revenue ramp.

Key Takeaways

  • Wavelength revenue increased 73.7% YoY and 18.8% sequentially with customer connections up 84.6% YoY
  • IPv4 address leasing revenue increased 43.8% for full year 2025
  • EBITDA as adjusted margin expanded to 31.9% from 26.5% YoY
  • GAAP gross margin improved to 22.3% from 11.8% YoY, driven by lower network operations costs and reduced depreciation
  • IP network traffic increased 10% YoY and 4% sequentially
  • On-net revenue grew 4.3% YoY despite overall revenue decline
  • Off-net revenue declined 17.9% YoY as lower-margin connections were shed
24/7 Wall St

CCOI YoY Financials

Q4 2025 vs Q4 2024, source: SEC Filings

24/7 Wall St

CCOI Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26