Financial and Business Highlights
- Service revenue was $240.5 million for Q4 2025 and was $241.9 million for Q3 2025.
- Service revenue was $975.8 million for full year 2025 and was $1,036 million for full year 2024.
- Wavelength revenue increased by 18.8% sequentially from Q3 2025 to $12.1 million for Q4 2025 and increased by 73.7% from Q4 2024.
- Wavelength revenue increased by 100.3% from full year 2024 to $38.5 million for full year 2025
- Wavelength customer connections increased by 17.9%, sequentially from Q3 2025 to 2,064 connections for Q4 2025 and increased by 84.6% from Q4 2024.
- Revenue from leasing IPv4 addresses increased by 43.8% from full year 2024 to $64.5 million for full year 2025
- EBITDA, as adjusted, increased by 4.0% to $76.7 million for Q4 2025 from Q3 2025 and increased by 14.8% from $66.9 million for Q4 2024.
- EBITDA, as adjusted, margin was 31.9% for Q4 2025, 30.5% for Q3 2025 and was 26.5% for Q4 2024.
- Net cash provided by (used in) operating activities was $(6.0) million for Q4 2025, $3.1 million for Q3 2025 and $14.5 million for Q4 2024.
- Net cash provided by (used in) operating activities was $(10.6) million for full year 2025 and $(8.6) million for full year 2024.
- IP Network traffic for Q4 2025 increased by 4% from Q3 2025, increased by 10% from Q4 2024 and increased by 9% for full year 2025 from full year 2024.
- Cogent approved a quarterly dividend of $0.02 per share for Q1 2026.
- Cogent paid four quarterly dividends in 2025 totaling $150.1 million, or $3.05 per share.
- The tax treatment of these full year 2025 dividends is generally that 100.0% are treated as a return of capital.
WASHINGTON, Feb. 20, 2026 /PRNewswire/ -- Cogent Communications Holdings, Inc. (NASDAQ: CCOI) ("Cogent") today announced service revenue of $240.5 million for the three months ended December 31, 2025, a decrease of 0.6% from the three months ended September 30, 2025 and a decrease of 4.7% from the three months ended December 31, 2024. Service revenue was $1,036.1 million for the year ended December 31, 2024 and $975.8 million for the year ended December 31, 2025.
On the closing date of the Sprint acquisition, Cogent and T-Mobile entered into a commercial agreement (the "Commercial Agreement"), for colocation and connectivity services. Revenue under the Commercial Agreement, primarily classified as on-net revenue and net-centric revenue, was $0.4 million for the three months ended December 31, 2025, $0.4 million for the three months ended September 30, 2025, $1.5 million for the three months ended December 31, 2024, $14.7 million for the year ended December 31, 2024 and $2.6 million for the year ended December 31, 2025.
Foreign exchange rates negatively impacted service revenue growth from the three months ended September 30, 2025 to the three months ended December 31, 2025 by $0.2 million, positively impacted service revenue growth from the three months ended December 31, 2024 to the three months ended December 31, 2025 by $2.7 million and positively impacted service revenue growth from the year ended December 31, 2024 to the year ended December 31, 2025 by $4.6 million. On a constant currency basis, service revenue decreased by 0.5% from the three months ended September 30, 2025 to the three months ended December 31, 2025, decreased by 5.7% from the three months ended December 31, 2024 to the three months ended December 31, 2025, and decreased by 6.3% for the year ended December 31, 2024 to the year ended December 31, 2025.
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 $134.3 million for the three months ended December 31, 2025, a decrease of 0.7% from the three months ended September 30, 2025 and an increase of 4.3% from the three months ended December 31, 2024. On-net revenue was $531.5 million for the year ended December 31, 2025; a decrease of 2.4% over the year ended December 31, 2024.
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 $92.9 million for the three months ended December 31, 2025, a decrease of 2.3% from the three months ended September 30, 2025 and a decrease of 17.9% from the three months ended December 31, 2024. Off-net revenue was $397.5 million for the year ended December 31, 2025; a decrease of 12.5% over the year ended December 31, 2024.
Wavelength revenue was $12.1 million for the three months ended December 31, 2025, an increase of 18.8% from the three months ended September 30, 2025 and an increase of 73.7% from the three months ended December 31, 2024. Wavelength revenue was $38.5 million for the year ended December 31, 2025; an increase of 100.3% over the year ended December 31, 2024.
Non-core services are legacy services, which Cogent acquired and continues to support but does not actively sell. Non-core revenue was $1.2 million for the three months ended December 31, 2025, $1.4 million for the three months ended September 30, 2025, $3.4 million for the three months ended December 31, 2024. Non-core revenue was $8.3 million for the year ended December 31, 2025; a decrease of 54.1% from $18.2 million for the year ended December 31, 2024.
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. GAAP gross margin is defined as GAAP gross profit divided by total service revenue. GAAP gross profit increased by 7.8% from the three months ended September 30, 2025 to $53.7 million for the three months ended December 31, 2025 and increased by 80.1% from the three months ended December 31, 2024. GAAP gross profit increased by 77.3% from the year ended December 31, 2024 to $170.6 million for the year ended December 31, 2025.
GAAP gross margin was 22.3% for the three months ended December 31, 2025, 20.6% for the three months ended September 30, 2025, 11.8% for the three months ended December 31, 2024, 9.3% for the year ended December 31, 2024 and 17.5% for the year ended December 31, 2025.
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. Non-GAAP gross profit increased by 1.5% from the three months ended September 30, 2025 to $112.5 million for the three months ended December 31, 2025 and increased by 15.3% from the three months ended December 31, 2024. Non-GAAP gross profit increased by 11.8% from the year ended December 31, 2024 to $442.7 million for the year ended December 31, 2025.
Non-GAAP gross margin was 46.8% for the three months ended December 31, 2025, 45.8% for the three months ended September 30, 2025, 38.7% for the three months ended December 31, 2024, 38.2% for the year ended December 31, 2024 and 45.4% for the year ended December 31, 2025.
Net cash provided by (used in) operating activities was $(6.0) million for the three months ended December 31, 2025, $3.1 million for the three months ended September 30, 2025 and $14.5 million for the three months ended December 31, 2024. Net cash provided by (used in) operating activities was $(8.6) million for the year ended December 31, 2024 and was $(10.6) million for the year ended December 31, 2025.
IP Transit Services Agreement
On May 1, 2023, the closing date of the Sprint acquisition, Cogent and T-Mobile USA, Inc. ("TMUSA"), a Delaware corporation and direct subsidiary of T-Mobile US, Inc., a Delaware corporation ("T-Mobile"), entered into an agreement for IP transit services (the "IP Transit Services Agreement"), pursuant to which TMUSA will pay Cogent an aggregate of $700.0 million, consisting of (i) $350.0 million paid in equal monthly installments during the first year after the closing date of the Sprint acquisition and (ii) $350.0 million paid in equal monthly installments over the subsequent 42 months. Amounts paid under the IP Transit Services Agreement were $25.0 million, $25.0 million and $25.0 million in the three months ended December 31, 2024, September 30, 2025 and December 31, 2025, respectively. Amounts paid under the IP Transit Services Agreement were $204.2 million in the year ended December 31, 2024 and $100.0 million in the year ended December 31, 2025.
Earnings before interest, taxes, depreciation and amortization (EBITDA), was $51.7 million for the three months ended December 31, 2025, $48.8 million for the three months ended September 30, 2025 and $41.9 million for the three months ended December 31, 2024. EBITDA was $122.8 million for the year ended December 31, 2024 and $192.8 million for the year ended December 31, 2025.
EBITDA margin, was 21.5% for the three months ended December 31, 2025, 20.2% for the three months ended September 30, 2025 and 16.6% for the three months ended December 31, 2024. EBITDA margin was 11.9% for the year ended December 31, 2024 and 19.8% for the year ended December 31, 2025.
Earnings before interest, taxes, depreciation and amortization (EBITDA), as adjusted, for Sprint acquisition costs and cash paid under the IP Transit Services Agreement, was $76.7 million for the three months ended December 31, 2025, $73.8 million for the three months ended September 30, 2025 and $66.9 million for the three months ended December 31, 2024. EBITDA, as adjusted, for Sprint acquisition costs and cash paid under the IP Transit Services Agreement was $348.4 million for the year ended December 31, 2024 and $292.8 million for the year ended December 31, 2025. Cash paid under the IP Transit Services Agreement was $204.2 million for the year ended December 31, 2024 and $100.0 million for the year ended December 31, 2025, a decrease of $104.2 million from the year ended December 31, 2024 to the year ended December 31, 2025,
EBITDA margin, as adjusted for Sprint acquisition costs and cash paid under the IP Transit Services Agreement, was 31.9% for the three months ended December 31, 2025, 30.5% for the three months ended September 30, 2025 and 26.5% for the three months ended December 31, 2024. EBITDA, as adjusted, for Sprint acquisition costs and cash paid under the IP Transit Services Agreement margin was 33.6% for the year ended December 31, 2024 and 30.0% for the year ended December 31, 2025.
Basic and diluted net (loss) per share was $(0.64) for the three months ended December 31, 2025, $(0.87) for the three months ended September 30, 2025 and was $(0.91) for the three months ended December 31, 2024. Basic and diluted net (loss) per share was $(3.80) for the year ended December 31, 2025 and was $(4.28) for the year ended December 31, 2024.
Total customer connections decreased by 4.7% from December 31, 2024 to 117,643 as of December 31, 2025 and decreased by 0.5% from September 30, 2025. On-net customer connections increased by 0.5% from December 31, 2024 to 87,944 as of December 31, 2025 and increased by 0.2% from September 30, 2025. Off-net customer connections decreased by 14.9% from December 31, 2024 to 24,656 as of December 31, 2025 and decreased by 3.4% from September 30, 2025. Wavelength customer connections increased by 84.6% from December 31, 2024 to 2,064 as of December 31, 2025 and increased by 17.9% from September 30, 2025. Non-core customer connections were 2,979 as of December 31, 2025, 3,244 as of September 30, 2025 and 5,802 as of December 31, 2024.
The number of on-net buildings increased by 126 on-net buildings from December 31, 2024 to 3,579 as of December 31, 2025 and increased by 42 on-net buildings from September 30, 2025.
Optical Wave Network
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. As of December 31, 2025, Cogent was offering optical wavelength services in 1,068 locations in the United States, Mexico and Canada.
Quarterly Dividend Approved
On February 18, 2026, Cogent's Board approved a regular quarterly dividend of $0.02 per share payable on March 20, 2026 to shareholders of record on March 6, 2026.
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.
Tax Treatment of 2025 Dividends
Cogent paid four quarterly dividends in 2025 totaling $150.1 million, or $3.05 per share. The expected tax treatment of these dividends is generally that 100.0% are treated as a return of capital and 0.0% are generally treated as dividends for United States federal income tax purposes. While the above information includes general statements about the tax classification of dividends paid on Cogent common stock, these statements do not constitute tax advice. The taxation of corporate distributions can be complex, and stockholders are encouraged to consult their tax advisers to determine what impact the above information may have on their specific tax situation.
Conference Call and Website Information
Cogent will host a conference call with financial analysts at 8:30 a.m. (ET) on February 20, 2026 to discuss Cogent's operating results for the fourth quarter of 2025 and full year 2025. Investors and other interested parties may access a live audio webcast of the earnings call in the "Events" section of Cogent's website at www.cogentco.com/events. A replay of the webcast, together with the press release, will be available on the website following the earnings call. 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.
About Cogent Communications
Cogent Communications (NASDAQ: CCOI) is a multinational, Tier 1 facilities-based ISP. 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 305 markets globally.
Cogent Communications is headquartered at 2450 N Street, NW, Washington, D.C. 20037. For more information, visit www.cogentco.com. Cogent Communications can be reached in the United States at (202) 295-4200 or via email at info@cogentco.com.
COGENT COMMUNICATIONS HOLDINGS, INC., AND SUBSIDIARIES
---
Summary of Financial and Operational Results
Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025
---
Metric ($ in
000's, except
share, per
share,
customer
connections
and network
related data) -
unaudited
---
On-Net $138,624 $140,757 $136,485 $128,760 $129,628 $132,331 $135,267 $134,281
revenue (15)
(17)
% Change 0.4 % 1.5 % -3.0 % -5.7 % 0.7 % 2.1 % 2.2 % -0.7 %
from previous
Qtr.
Off-Net $118,178 $111,451 $111,291 $113,190 $107,274 $102,177 $95,111 $92,909
revenue
% Change -4.4 % -5.7 % -0.1 % 1.7 % -5.2 % -4.8 % -6.9 % -2.3 %
from previous
Qtr.
Wavelength $3,327 $3,625 $5,287 $6,966 $7,119 $9,057 $10,179 $12,097
revenue (1)
% Change 7.0 % 9.0 % 45.8 % 31.8 % 2.2 % 27.2 % 12.4 % 18.8 %
from previous
Qtr.
Non-Core $6,039 $4,610 $4,139 $3,375 $3,027 $2,682 $1,392 $1,231
revenue (2)
% Change -16.8 % -23.7 % -10.2 % -18.5 % -10.3 % -11.4 % -48.1 % -11.6 %
from previous
Qtr.
Service $266,168 $260,443 $257,202 $252,291 $247,048 $246,247 $241,949 $240,518
revenue -
total (15) (17)
% Change -2.2 % -2.2 % -1.2 % -1.9 % -2.1 % -0.3 % -1.7 % -0.6 %
from previous
Qtr.
Constant -2.3 % -2.0 % -1.5 % -1.5 % -1.9 % -1.3 % -2.1 % -0.5 %
currency total
revenue
quarterly
growth rate -
sequential
quarters (3)
(15) (17)
Constant 73.1 % 8.8 % -6.7 % -7.1 % -6.7 % -6.0 % -6.6 % -5.7 %
currency total
revenue
quarterly
growth rate -
year over year
quarters (3)
(15) (17)
Constant -2.3 % -1.5 % -1.7 % -2.0 % -1.6 % -1.2 % -1.8 % -0.8 %
currency and
excise tax
impact on
total revenue
quarterly
growth rate -
sequential
quarters (3)
(15) (17)
Constant 62.4 % 5.4 % -8.6 % -7.3 % -6.6 % -6.3 % -6.4 % -5.3 %
currency and
excise tax
impact on
total revenue
quarterly
growth rate -
year over year
quarters (3)
(15) (17)
Excise Taxes $20,549 $19,182 $19,752 $20,960 $20,200 $19,998 $19,188 $19,786
included in
service
revenue (4)
% Change 0.6 % -6.7 % 3.0 % 6.1 % -3.6 % -1.0 % -4.1 % 3.1 %
from previous
Qtr.
IPv4 Revenue, $10,151 $10,938 $11,236 $12,560 $14,413 $15,320 $17,475 $17,323
included in
On-Net
revenue (19)
% Change 2.8 % 7.8 % 2.7 % 11.8 % 14.8 % 6.3 % 14.1 % -0.9 %
from previous
Qtr.
IPv4 12,213,414 12,813,955 12,943,590 13,033,248 12,879,749 13,187,109 14,600,974 15,274,488
Addresses
Billed
% Change 6.8 % 4.9 % 1.0 % 0.7 % -1.2 % 2.4 % 10.7 % 4.6 %
from previous
Qtr.
Corporate $124,864 $119,557 $116,244 $113,070 $110,686 $109,047 $105,201 $102,817
revenue (5)
% Change -1.4 % -4.3 % -2.8 % -2.7 % -2.1 % -1.5 % -3.5 % -2.3 %
from previous
Qtr.
Net-centric $91,979 $91,107 $91,873 $93,625 $92,615 $97,309 $100,288 $103,353
revenue (5)
(15)
% Change -1.3 % -0.9 % 0.8 % 1.9 % -1.1 % 5.1 % 3.1 % 3.1 %
from previous
Qtr.
Enterprise $49,325 $49,781 $49,085 $45,596 $43,747 $39,891 $36,460 $34,348
revenue (5)
(17)
% Change -5.7 % 0.9 % -1.4 % -7.1 % -4.1 % -8.8 % -8.6 % -5.8 %
from previous
Qtr.
Network $168,548 $155,817 $161,083 $154,706 $136,949 $136,986 $131,107 $128,035
operations
expenses (4)
% Change -3.2 % -7.6 % 3.4 % -4.0 % -11.5 % 0.0 % -4.3 % -2.3 %
from previous
Qtr.
GAAP gross $26,344 $30,240 $9,835 $29,836 $33,571 $33,465 $49,843 $53,742
profit (6)
% Change -11.4 % 14.8 % -67.5 % 203.4 % 12.5 % -0.3 % 48.9 % 7.8 %
from previous
Qtr.
GAAP gross 9.9 % 11.6 % 3.8 % 11.8 % 13.6 % 13.6 % 20.6 % 22.3 %
margin (6)
Non-GAAP $97,620 $104,626 $96,119 $97,585 $110,099 $109,261 $110,842 $112,483
gross profit
(3) (7)
% Change -0.3 % 7.2 % -8.1 % 1.5 % 12.8 % -0.8 % 1.4 % 1.5 %
from previous
Qtr.
Non-GAAP 36.7 % 40.2 % 37.4 % 38.7 % 44.6 % 44.4 % 45.8 % 46.8 %
gross margin
(3) (7)
Selling, $70,131 $65,130 $60,258 $55,732 $66,340 $60,766 $62,061 $60,740
general and
administrative
expenses (8)
% Change -6.4 % -7.1 % -7.5 % -7.5 % 19.0 % -8.4 % 2.1 % -2.1 %
from previous
Qtr.
Depreciation $70,891 $74,036 $85,815 $67,272 $76,038 $75,290 $60,429 $58,422
and
amortization
expense (18)
% Change 4.6 % 4.4 % 15.9 % -21.6 % 13.0 % -1.0 % -19.7 % -3.3 %
from previous
Qtr.
Equity-based $6,950 $3,565 $7,875 $7,348 $8,013 $4,664 $8,932 $4,808
compensation
expense
% Change 4.0 % -48.7 % 120.9 % -6.7 % 9.1 % -41.8 % 91.5 % -46.2 %
from previous
Qtr.
Operating $(59,389) $(47,143) $(57,829) $(32,767) $(40,292) $(31,459) $(18,128) $(11,329)
income (loss)
% Change -13.3 % -20.6 % 22.7 % -43.3 % 23.0 % -21.9 % -42.4 % -37.5 %
from previous
Qtr.
Interest $23,010 $38,840 $32,474 $45,371 $34,015 $48,688 $43,146 $54,135
expense (9)
% Change -34.1 % 68.8 % -16.4 % 39.7 % -25.0 % 43.1 % -11.4 % 25.5 %
from previous
Qtr.
Non-cash $6,152 $(9,299) $(5,597) $(7,632) $201 $(8,911) $223 $(9,758)
change in
valuation -
Swap
Agreement (9)
Gain $(5,470) $27,673
$-
$-
$-
$-
$-
$-
(reduction) -
gain on
bargain
purchase (10)
Net loss $(65,307) $(32,338) $(63,112) $(43,317) $(52,042) $(57,807) $(41,544) $(43,317)
Basic net loss $(1.38) $(0.68) $(1.33) $(0.91) $(1.09) $(1.21) $(0.87) $(0.64)
per common
share
Diluted net $(1.38) $(0.68) $(1.33) $(0.91) $(1.09) $(1.21) $(0.87) $(0.64)
loss per
common
share
Weighted 47,416,268 47,511,613 47,426,131 47,540,833 47,676,735 47,592,836 47,603,287 47,724,101
average
common
shares -
basic
% Change 0.1 % 0.2 % -0.2 % 0.2 % 0.3 % -0.2 % 0.0 % 0.3 %
from previous
Qtr.
Weighted 47,416,268 47,511,613 47,426,131 47,540,833 47,676,735 47,592,836 47,603,287 47,724,101
average
common
shares -
diluted
% Change -1.3 % 0.2 % -0.2 % 0.2 % 0.3 % -0.2 % 0.0 % 0.3 %
from previous
Qtr.
EBITDA (3) $18,452 $27,126 $35,861 $41,853 $43,759 $48,495 $48,781 $51,743
% Change 207.0 % 47.0 % 32.2 % 16.7 % 4.6 % 10.8 % 0.6 % 6.1 %
from previous
Qtr.
EBITDA 6.9 % 10.4 % 13.9 % 16.6 % 17.7 % 19.7 % 20.2 % 21.5 %
margin (3)
Sprint $9,037 $12,370
$-
$-
$-
$-
$-
$-
acquisition
costs (14)
Cash $87,500 $66,667 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000
payments
under IP
Transit
Services
Agreement
(11)
EBITDA, as $114,989 $106,163 $60,861 $66,853 $68,759 $73,495 $73,781 $76,743
adjusted for
Sprint
acquisition
costs and
cash
payments
under IP
Transit
Services
Agreement (3)
(11) (14)
% Change 4.1 % -7.7 % -42.7 % 9.8 % 2.9 % 6.9 % 0.4 % 4.0 %
from previous
Qtr.
EBITDA, as 43.2 % 40.8 % 23.7 % 26.5 % 27.8 % 29.8 % 30.5 % 31.9 %
adjusted for
Sprint
acquisition
costs and
cash
payments
under IP
Transit
Services
Agreement,
margin (3)
(11) (14)
Net cash $19,219 $(22,171) $(20,226) $14,532 $36,351 $(44,039) $3,100 $(5,992)
provided by
(used in)
operating
activities
% Change 139.5 % -215.4 % 8.8 % 171.8 % 150.1 % -221.1 % 107.0 % -293.3 %
from previous
Qtr.
Capital $40,883 $48,767 $59,244 $46,104 $58,088 $56,200 $36,250 $37,031
expenditures
% Change -6.3 % 19.3 % 21.5 % -22.2 % 26.0 % -3.3 % -35.5 % 2.2 %
from previous
Qtr.
Principal $23,235 $133,472 $4,516 $27,979 $8,003 $8,520 $8,791 $8,528
payments of
capital
(finance)
lease
obligations
% Change 23.5 % 474.4 % -96.6 % 519.6 % -71.4 % 6.5 % 3.2 % -3.0 %
from previous
Qtr.
Dividends $478 $93,304 $47,210 $48,416 $49,133 $49,560 $49,066 $2,304
paid (16)
Gross 3.57 4.06 4.94 5.72 6.69 8.65 8.24 8.04
Leverage
Ratio (3) (11)
Net Leverage 3.17 3.14 4.13 5.07 6.08 7.52 7.44 7.34
Ratio (3) (11)
Gross 2.64 3.37 4.16 4.91 5.81 7.74 7.45 7.35
Leverage
Ratio,
adjusted for
amounts Due
from T-Mobile
(3) (20)
Net Leverage 2.24 2.45 3.36 4.25 5.21 6.61 6.65 6.64
Ratio,
adjusted for
amounts Due
from T-Mobile
(3) (20)
Gross 3.51 4.50 5.11 5.81 5.86 6.82 5.66 6.13
Leverage
Ratio under
the
Company's
Indentures (3)
Secured 2.33 2.49 2.90 3.38 3.44 4.20 3.49 3.80
Leverage
Ratio under
the
Company's
Indentures (3)
Interest 4.05 4.06 3.85 2.88 2.80 2.43 2.62 2.38
Coverage
Ratio under
the
Company's
Indentures (3)
Customer
Connections
- end of
period (15)
---
On-Net 87,574 87,387 87,655 87,500 86,781 87,407 87,767 87,944
customer
connections
% Change -0.8 % -0.2 % 0.3 % -0.2 % -0.8 % 0.7 % 0.4 % 0.2 %
from previous
Qtr.
Off-Net 34,579 32,758 32,420 28,963 27,508 26,239 25,518 24,656
customer
connections
% Change -5.7 % -5.3 % -1.0 % -10.7 % -5.0 % -4.6 % -2.7 % -3.4 %
from previous
Qtr.
Wavelength 693 754 1,041 1,118 1,322 1,469 1,750 2,064
customer
connections
(1)
% Change 4.8 % 8.8 % 38.1 % 7.4 % 18.2 % 11.1 % 19.1 % 17.9 %
from previous
Qtr.
Non-Core 10,037 7,883 5,217 5,802 5,120 3,615 3,244 2,979
customer
connections
(2)
% Change -16.2 % -21.5 % -33.8 % 11.2 % -11.8 % -29.4 % -10.3 % -8.2 %
from previous
Qtr.
Total 132,883 128,782 126,333 123,383 120,731 118,730 118,279 117,643
customer
connections
(15)
% Change -3.4 % -3.1 % -1.9 % -2.3 % -2.1 % -1.7 % -0.4 % -0.5 %
from previous
Qtr.
Corporate 51,821 48,690 47,613 46,371 45,295 44,307 43,391 42,579
customer
connections
(5)
% Change -4.9 % -6.0 % -2.2 % -2.6 % -2.3 % -2.2 % -2.1 % -1.9 %
from previous
Qtr.
Net-centric 61,599 61,736 62,273 62,236 61,795 62,659 63,875 64,551
customer
connections
(5) (15)
% Change -1.2 % 0.2 % 0.9 % -0.1 % -0.7 % 1.4 % 1.9 % 1.1 %
from previous
Qtr.
Enterprise 19,463 18,356 16,447 14,776 13,641 11,764 11,013 10,513
customer
connections
(5) (17)
% Change -6.2 % -5.7 % -10.4 % -10.2 % -7.7 % -13.8 % -6.4 % -4.5 %
from previous
Qtr.
On-Net
Buildings -
end of period
---
Multi-Tenant 1,861 1,864 1,870 1,871 1,867 1,871 1,869 1,881
office
buildings
Carrier 1,376 1,393 1,410 1,423 1,453 1,471 1,482 1,511
neutral data
center
buildings
Cogent data 78 86 95 104 101 101 100 100
centers
Cogent edge 6 43 49 55 79 86 86 87
data centers
Total on-net 3,321 3,386 3,424 3,453 3,500 3,529 3,537 3,579
buildings
Total carrier 1,586 1,602 1,627 1,646 1,668 1,675 1,686 1,715
neutral data
center nodes
Wave enabled 295 516 657 808 883 938 996 1,068
locations
Square feet - 1,009,702,653 1,011,171,523 1,015,544,543 1,015,861,483 1,015,459,520 1,017,918,826 1,017,433,216 1,025,139,485
multi-tenant
office
buildings -
on-net
Total 482 482 482 482 482 482 482 482
Technical
Buildings
Owned (12)
Square feet - 1,603,569 1,603,569 1,603,569 1,603,569 1,603,569 1,603,569 1,603,569 1,603,569
Technical
Buildings
Owned (12)
Network - end
of period
---
Intercity route 76,211 75,965 77,561 79,621 79,867 73,075 72,955 73,218
miles -
Leased
Metro route 25,977 27,373 28,510 29,802 30,788 31,297 31,388 32,634
miles -
Leased
Metro fiber 79,138 80,042 84,476 87,678 90,696 92,631 93,338 96,663
miles -
Leased
Intercity route 21,883 21,883 21,883 21,883 21,883 21,883 21,883 21,883
miles -
Owned
Metro route 1,704 1,704 1,704 1,704 1,704 1,704 1,704 1,704
miles -
Owned
Connected 8,098 8,135 8,212 8,250 8,240 8,085 8,043 7,659
networks -
AS's
Headcount -
end of period
(13)
---
Sales force - 677 656 655 650 629 628 617 590
quota bearing
(13)
Sales force - 871 851 847 843 820 820 802 777
total (13)
Total 1,955 1,901 1,908 1,916 1,899 1,889 1,882 1,833
employees
(13)
Sales rep 4.0 3.8 4.0 3.5 3.8 4.8 4.6 4.1
productivity -
units per full
time
equivalent
sales rep
("FTE") per
month
FTE - sales 627 632 620 622 605 588 592 585
reps
(1) In connection with the acquisition of the Wireline Business, Cogent began to provide optical wavelength services and optical transport services over its fiber network.
(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 $385, $350, $469, $477, $490, $506, $570 and $319 in the three-month periods ended March 31, 2024 through December 31, 2025 respectively. Network operations expense includes excise taxes, including Universal Service Fund fees, of $20,549, $19,182, $19,752, $20,960, $20,200, $19,998, $19,188 and $19,786 in the three-month periods ended March 31, 2024 through December 31, 2025, respectively.
(5) In connection with the acquisition of the Wireline Business, Cogent classified revenue and customer connections as follows:
- $12.9 million of the Wireline Business monthly recurring revenue and 17,823 customer connections as corporate revenue and corporate customer connections, respectively,
- $6.5 million of monthly recurring revenue and 5,711 customer connections as net-centric revenue and net-centric customer connections, respectively, and
- $20.1 million of monthly recurring revenue and 23,209 customer connections as enterprise revenue and enterprise customer connections, respectively.
- Conversely, Cogent reclassified $0.3 million of monthly recurring revenue and 387 customer connections of legacy Cogent monthly recurring revenue to enterprise revenue and enterprise customer connections, respectively.
(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. 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. 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 $6,565, $3,215, $7,406, $6,871, $7,523, $4,158, $8,362 and $4,489 in the three-month periods ended March 31, 2024 through December 31, 2025, respectively and excludes $9,037 and $12,370 of Sprint acquisition costs for the three-month periods ended March 31, 2024 and June 30, 2024, respectively. There were no Sprint acquisition costs for the three months ended September 30, 2024, December 31, 2024, March 31, 2025, June 30, 2025, September 30, 2025 or December 31, 2025.
(9) As of December 31, 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 $12,122, $12,081, $9,769 and $9,880 for the three-month periods ended June 30, 2024, December 31, 2024, June 30, 2025 and December 31, 2025, respectively, related to the Swap Agreement. Under GAAP, changes in the valuation of the Swap Agreement are classified with interest expense in the condensed consolidated statements of comprehensive (loss) income.
(10) The gain on bargain purchase from the Sprint acquisition was $1.4 billion as shown below.
(In thousands)
Gain on bargain purchase
---
Fair value of net assets acquired $826,067
Total net consideration to be received from Seller, net of discounts 602,581
Gain on bargain purchase $1,428,648
(11) Includes cash payments under the IP Transit Services Agreement, as discussed above, of
- $87.5 million for the three months ended March 31, 2024,
- $66.7 million for the three months ended June 30, 2024,
- $25.0 million for the three months ended September 30, 2024,
- $25.0 million for the three months ended December 31, 2024,
- $25.0 million for the three months ended March 31, 2025, and
- $25.0 million for the three months ended June 30, 2025,
- $25.0 million for the three months ended September 30, 2025, and
- $25.0 million for the three months ended December 31, 2025.
(12) In connection with the acquisition of the Wireline Business, Cogent acquired 482 technical buildings. Cogent converted 52 of those buildings to Cogent Data Centers and 87 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.
- As of September 30, 2025, there were 588 employees remaining from the original Wireline Business employees.
- As of December 31, 2025, there were 569 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 in the three months ended March 31, 2024, and
- $12.4 million in the three months ended June 30, 2024.
Included in Sprint acquisition costs were the following reimbursable severance costs:
- $4.3 million of reimbursable severance costs in the three months ended March 31, 2024, and
- $8.0 million of reimbursable severance costs in the three months ended June 30, 2024.
(15) Net-centric revenue under the CSA (predominantly on-net revenue) was
- $3.2 million for the three months ended March 31, 2024,
- $5.9 million for the three months ended June 30, 2024,
- $4.1 million for the three months ended September 30, 2024,
- $1.5 million for the three months ended December 31, 2024,
- $0.7 million for the three months ended March 31, 2025,
- $1.1 million for the three months ended June 30, 2025,
- $0.4 million for the three months ended September 30, 2025, and
- $0.4 million for the three months ended December 31, 2025.
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,
- 1,595 as of June 30, 2025,
- 1,666 as of September 30, 2025, and
- 1,666 as of December 31, 2025.
(16) The first quarter 2024 dividend totaling $45.8 million was declared on February 28, 2024, and paid on April 9, 2024.
(17) Included in on-net revenue and enterprise revenue from May 2023 to July 2024 was $1.9 million of monthly revenue from an uneconomic resale customer acquired in connection with the Wireline Business. The service was cancelled on July 31, 2024.
(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 $10,201, $11,469 and $12,822 for the three-month periods March 31, 2024, June 30, 2024 and September 30, 2024, respectively.
(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 $383,981, $323,650, $304,497, $284,979, $265,090, $244,821, $224,167 and $203,120 as of March 31, 2024 to December 31, 2025, respectively.
NM Not meaningful
Schedules of Non-GAAP Measures
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. Management believes the most directly comparable measure to EBITDA calculated in accordance with generally accepted accounting principles in the United States, or GAAP, is net cash provided by operating activities. The Company also believes that EBITDA is a measure frequently used by securities analysts, investors, and other interested parties in their evaluation of issuers. EBITDA, as adjusted for Sprint acquisition costs and cash payments under the IP Transit Services Agreement with T-Mobile, represents EBITDA plus costs related to the Company's acquisition of the Wireline Business and cash payments made to the Company under the IP Transit Agreement. EBITDA margin is defined as EBITDA divided by total service revenue. EBITDA, as adjusted for Sprint acquisition costs and cash payments made to the Company under the IP Transit Agreement margin is defined as EBITDA, as adjusted for Sprint acquisition costs and cash payments made to the Company under the IP Transit Agreement, divided by total service revenue.
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. 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. 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 Q2 Q3 Q4 Q1 Q2 Q3 Q4 YEAR YEAR
2024 2024 2024 2024 2025 2025 2025 2025 2024 2025
($ in 000's) - unaudited
Net cash provided by (used $19,219 $(22,171) $(20,226) $14,532 $36,351 $(44,039) $3,100 $(5,992) $(8,645) $(10,579)
in) operating activities
Changes in operating assets $(34,640) $11,077 $22,868 $27,892 $(26,614) $42,244 $8,941 $7,795 30,343 32,237
and liabilities
Cash interest expense and 33,873 38,220 33,219 (571) 34,022 50,290 36,740 49,940 101,120 171,127
income tax expense
EBITDA $18,452 $27,126 $35,861 $41,853 $43,759 $48,495 $48,781 $51,743 $122,818 $192,785
PLUS: Sprint acquisition costs $9,037 $12,370
$-
$-
$-
$-
$-
$- $21,407
$-
PLUS: Cash payments made 87,500 66,667 25,000 25,000 25,000 25,000 25,000 25,000 204,167 100,000
to the Company under IP
Transit Services Agreement
EBITDA, as adjusted for $114,989 $106,163 $60,861 $66,853 $68,759 $73,495 $73,781 $76,743 $348,392 $292,785
Sprint acquisition costs and
cash payments made to the
Company under IP Transit
Services Agreement
EBITDA margin 6.9 % 10.4 % 13.9 % 16.6 % 17.7 % 19.7 % 20.2 % 21.5 % 11.9 % 19.8 %
EBITDA, as adjusted for 43.2 % 40.8 % 23.7 % 26.5 % 27.8 % 29.8 % 30.5 % 31.9 % 33.6 % 30.0 %
Sprint acquisition costs and
cash payments made to the
Company under IP Transit
Services Agreement, margin
Constant currency revenue is reconciled to service revenue as reported in the tables below.
Constant currency impact on revenue changes - sequential periods
($ in 000's) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 YEAR YEAR
- unaudited
2024 2024 2024 2024 2025 2025 2025 2025 2024 2025
Service $266,168 $260,443 $257,202 $252,291 $247,048 $246,247 $241,949 $240,518 $1,036,104 $975,766
revenue, as
reported -
current
period
Impact of (304) 323 (620) 1,022 542 (2,419) (938) 191 261 (4,570)
foreign
currencies
on service
revenue
Service $265,864 $260,766 $256,582 $253,313 $247,590 $243,828 $241,011 $240,709 $1,036,365 $971,196
revenue - as
adjusted for
currency
impact (1)
Service $272,099 $266,168 $260,443 $257,202 $252,291 $247,048 $246,247 $241,949 $940,922 $1,036,104
revenue, as
reported -
prior
sequential
period
Constant $(6,235) $(5,402) $(3,861) $(3,889) $(4,701) $(3,220) $(5,236) $(1,240) $95,443 $(64,908)
currency
revenue
increase
(decrease)
Constant -2.3 % -2.0 % -1.5 % -1.5 % -1.9 % -1.3 % -2.1 % -0.5 % 10.1 % -6.3 %
currency
revenue
percent
increase
(decrease)
(1) Service revenue, as adjusted for currency impact, is determined by translating the service
revenue for the current period at the average foreign currency exchange rates for the prior
sequential period. The Company believes that disclosing quarterly sequential revenue growth
without the impact of foreign currencies on service revenue is a useful measure of
sequential revenue growth. Service revenue, as adjusted for currency impact, is an integral
part of the internal reporting and planning system used by management as a supplement to
GAAP financial information.
Constant currency impact on revenue changes - prior year periods
($ in 000's) - unaudited Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 YEAR YEAR
2024 2024 2024 2024 2025 2025 2025 2025 2024 2025
Service revenue, as reported - $266,168 $260,443 $257,202 $252,291 $247,048 $246,247 $241,949 $240,518 $1,036,104 $975,766
current period
Impact of foreign currencies on (362) 420 (213) 405 1,258 (1,507) (1,806) (2,659) 261 (4,570)
service revenue
Service revenue - as adjusted for $265,806 $260,863 $256,989 $252,696 $248,306 $244,740 $240,143 $237,859 $1,036,365 $971,196
currency impact (2)
Service revenue, as reported - prior $153,588 $239,806 $275,429 $272,099 $266,168 $260,443 $257,202 $252,291 $940,922 $1,036,104
year period
Constant currency revenue increase $112,218 $21,057 $(18,440) $(19,403) $(17,862) $(15,703) $(17,059) $(14,432) $95,443 $(64,908)
Constant currency percent revenue 73.1 % 8.8 % -6.7 % -7.1 % -6.7 % -6.0 % -6.6 % -5.7 % 10.1 % -6.3 %
increase
(2) Service revenue, as adjusted for currency impact, is determined by translating the service
revenue for the current period at the average foreign currency exchange rates for the
comparable prior year period. The Company believes that disclosing year over year revenue
growth without the impact of foreign currencies on service revenue is a useful measure of
revenue growth. Service revenue, as adjusted for currency impact, is an integral part of the
internal reporting and planning system used by management as a supplement to GAAP financial
information.
Revenue on a constant currency basis and adjusted for the impact of excise taxes is reconciled to service revenue as reported in the tables below.
Constant currency and excise tax impact on revenue changes - sequential periods
($ in 000's) - unaudited Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 YEAR YEAR
2024 2024 2024 2024 2025 2025 2025 2025 2024 2025
Service revenue, as reported - current $266,168 $260,443 $257,202 $252,291 $247,048 $246,247 $241,949 $240,518 $1,036,104 $975,766
period
Impact of foreign currencies on service (304) 323 (620) 1,022 542 (2,419) (938) 191 261 (4,570)
revenue
Impact of excise taxes on service (121) 1,367 (570) (1,208) 760 202 832 (598) (30,224) 1,269
revenue
Service revenue - as adjusted for $265,743 $262,133 $256,012 $252,105 $248,350 $244,030 $241,843 $240,111 $1,006,141 $972,465
currency and excise taxes impact (3)
Service revenue, as reported - prior $272,099 $266,168 $260,443 $257,202 $252,291 $247,048 $246,247 $241,949 $940,922 $1,036,104
sequential period
Constant currency and excise taxes $(6,356) $(4,035) $(4,431) $(5,097) $(3,941) $(3,018) $(4,404) $(1,838) $65,219 $(63,639)
revenue increase (decrease)
Constant currency and excise tax -2.3 % -1.5 % -1.7 % -2.0 % -1.6 % -1.2 % -1.8 % -0.8 % 6.9 % -6.1 %
revenue percent increase (decrease)
(3) Service revenue, as adjusted for currency impact and the impact of excise taxes, is
determined by translating the service revenue for the current period at the average foreign
currency exchange rates for the prior sequential period and adjusting for the changes in
excise taxes recorded as revenue between the periods presented. The Company believes that
disclosing quarterly sequential revenue growth without the impact of foreign currencies and
excise taxes on service revenue is a useful measure of sequential revenue growth. Service
revenue, as adjusted for the impact of foreign currency and excise taxes, is an integral
part of the internal reporting and planning system used by management as a supplement to
GAAP financial information.
Constant currency and excise tax impact on revenue changes - prior year periods
($ in 000's) - unaudited Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 YEAR YEAR
2024 2024 2024 2024 2025 2025 2025 2025 2024 2025
Service revenue, as reported - current $266,168 $260,443 $257,202 $252,291 $247,048 $246,247 $241,949 $240,518 $1,036,104 $975,766
period
Impact of foreign currencies on service (362) 420 (213) 405 1,258 (1,507) (1,806) (2,659) 261 (4,570)
revenue
Impact of excise taxes on service (16,356) (8,142) (5,195) (532) 349 (816) 586 1,174 (30,224) 1,269
revenue
Service revenue - as adjusted for $249,450 $252,721 $251,794 $252,164 $248,655 $243,924 $240,729 $239,033 $1,006,141 $972,465
currency and excise taxes impact (4)
Service revenue, as reported - prior $153,588 $239,806 $275,429 $272,099 $266,168 $260,443 $257,202 $252,291 $940,922 $1,036,104
year period
Constant currency and excise taxes $95,862 $12,915 $(23,635) $(19,935) $(17,513) $(16,519) $(16,473) $(13,258) $65,219 $(63,639)
revenue increase
Constant currency and excise tax 62.4 % 5.4 % -8.6 % -7.3 % -6.6 % -6.3 % -6.4 % -5.3 % 6.9 % -6.1 %
percent revenue increase
(4) Service revenue, as adjusted for currency impact and the impact of excise taxes, is
determined by translating the service revenue for the current period at the average foreign
currency exchange rates for the prior year period and adjusting for the changes in excise
taxes recorded as revenue between the periods presented. The Company believes that
disclosing quarterly sequential revenue growth without the impact of foreign currencies and
excise taxes on service revenue is a useful measure of sequential revenue growth. Service
revenue, as adjusted for the impact of foreign currency and excise taxes, is an integral
part of the internal reporting and planning system used by management as a supplement to
GAAP financial information.
Non-GAAP gross profit and non-GAAP gross margin
Non-GAAP gross profit and non-GAAP gross margin are reconciled to GAAP gross profit and GAAP gross margin in the table below.
Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 YEAR YEAR
2024 2025
($ in 000's) - unaudited
Service revenue total $266,168 $260,443 $257,202 $252,291 $247,048 $246,247 $241,949 $240,518 $1,036,104 $975,766
Minus - Network operations expense 239,824 230,203 247,367 222,455 213,477 212,782 192,106 186,776 939,849 805,141
including equity-based compensation
and depreciation and amortization
expense
GAAP Gross Profit (5) $26,344 $30,240 $9,835 $29,836 $33,571 $33,465 $49,843 $53,742 $96,255 $170,625
Plus - Equity-based compensation - 385 350 469 477 490 506 570 319 1,681 1,885
network operations expense
Plus - Depreciation and amortization $70,891 $74,036 $85,815 $67,272 $76,038 $75,290 $60,429 $58,422 $298,014 $270,179
expense
Non-GAAP Gross Profit (6) $97,620 $104,626 $96,119 $97,585 $110,099 $109,261 $110,842 $112,483 $395,950 $442,689
GAAP Gross Margin (5) 9.9 % 11.6 % 3.8 % 11.8 % 13.6 % 13.6 % 20.6 % 22.3 % 9.3 % 17.5 %
Non-GAAP Gross Margin (6) 36.7 % 40.2 % 37.4 % 38.7 % 44.6 % 44.4 % 45.8 % 46.8 % 38.2 % 45.4 %
(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. 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. Management believes that non-GAAP gross profit and non-GAAP gross margin
are relevant measures for investors, as they are metrics 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. 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. 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. 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.
Cogent's gross leverage ratios and net leverage ratios are shown below.
($ in 000's) - unaudited As of As of As of As of As of As of As of As of
March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31,
2024 2024 2024 2024 2025 2025 2025 2025
Cash and cash equivalents & $163,274 $426,241 $316,092 $227,916 $183,970 $306,725 $226,294 $205,112
restricted cash
Debt
---
Capital (finance) leases - 64,043 21,253 21,939 21,225 24,685 26,523 24,990 26,112
current portion
Capital (finance) leases - long 453,473 405,176 460,632 517,161 543,852 578,634 576,851 597,239
term
Senior Secured 2032 Notes 600,000 600,000 600,000
Senior Secured 2026 Notes 500,000 500,000 500,000 500,000 500,000
Secured IPv4 Notes 206,000 206,000 206,000 206,000 380,400 380,400 380,400
Senior Unsecured 2027 Notes 450,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000
Total debt 1,467,516 1,882,429 1,938,571 1,994,386 2,024,537 2,335,557 2,332,241 2,353,751
Total net debt 1,304,242 1,456,188 1,622,479 1,766,470 1,840,567 2,028,832 2,105,947 2,148,639
Trailing 12 months EBITDA, as 411,001 463,102 392,525 348,392 302,636 269,968 282,888 292,785
adjusted for Sprint acquisition
costs and cash payments from
the IP Transit Services
Agreement
Gross leverage ratio 3.57 4.06 4.94 5.72 6.69 8.65 8.24 8.04
Net leverage ratio 3.17 3.14 4.13 5.07 6.08 7.52 7.44 7.34
Total amounts Due from T- $383,981 $323,650 $304,497 $284,979 $265,090 $244,821 $224,167 $203,120
Mobile
Total debt, adjusted for 1,083,535 1,558,779 1,634,074 1,709,407 1,759,447 2,090,736 2,108,074 2,150,631
amounts Due from T-Mobile
Total net debt, adjusted for 920,261 1,132,538 1,317,982 1,481,491 1,575,447 1,784,011 1,881,780 1,945,519
amounts Due from T-Mobile
Gross leverage ratio, adjusted 2.64 3.37 4.16 4.91 5.81 7.74 7.45 7.35
for amounts Due from T-Mobile
Net leverage ratio, adjusted for 2.24 2.45 3.36 4.25 5.21 6.61 6.65 6.64
amounts Due from T-Mobile
Ratios under the Company's indentures
Consolidated Leverage Ratio is defined in the Company's Indentures as total debt divided by Consolidated Cash Flow (as defined in the Company's Indentures) for the most recently completed period of four consecutive fiscal quarters of the Company (the "Reference Period"), subject to certain adjustments provided for in the Company's Indentures. Secured Leverage Ratio is defined in the Company's Indentures as total secured debt divided by Consolidated Cash Flow for the Reference Period, subject to certain adjustments provided for in the Company's Indentures. Net leverage ratio is presented as total net debt (total debt minus cash and cash equivalents) divided by the last 12 months Consolidated Cash Flow. Net leverage ratio is not a defined term in the Company's Indentures. Fixed Charge Coverage Ratio is defined in the Company's Indentures as Consolidated Cash Flow for the Reference Period divided by Fixed Charges (as defined in the Company's Indentures) for the Reference Period, which largely consist of interest expense, subject to certain adjustments provided for in the Company's Indentures. Cogent's ratios are shown in the table below.
($ in 000's) - unaudited As of As of As of As of As of As of As of As of
March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31,
2024 2024 2024 2024 2025 2025 (2) 2025 2025
(2) (2)
Cash and cash equivalents & 139,342 372,123 266,822 205,464 $165,676 $195,165 $136,513 $135,410
restricted cash
Debt
---
Capital (finance) leases - 21,657 21,253 21,939 21,225 24,685 26,523 24,990 26,112
current portion
Capital (finance) leases - long 371,116 405,176 460,632 517,161 543,852 578,634 576,851 597,239
term
Letters of credit 123 123 126 121 124 130 130 130
Senior Secured 2026 Notes 500,000 500,000 500,000 500,000 500,000
Senior Secured 2032 Notes 600,000 600,000 600,000
Senior Unsecured 2027 Notes 450,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000
Total debt 1,342,896 1,676,552 1,732,697 1,788,507 1,818,661 1,955,287 1,951,971 1,973,481
Total net debt 1,203,554 1,304,429 1,465,875 1,583,043 1,652,985 1,760,122 1,815,458 1,838,071
Total secured debt 892,896 926,552 982,697 1,038,507 1,068,661 1,205,287 1,201,971 1,223,481
Consolidated Cash Flow (2) 382,850 372,621 338,892 307,655 310,345 286,881 344,739 322,154
Consolidated Leverage Ratio 3.51 4.50 5.11 5.81 5.86 6.82 5.66 6.13
for the Reference Period
Net leverage ratio (1) 3.14 3.50 4.33 5.15 5.33 6.14 5.27 5.71
Secured Leverage Ratio for 2.33 2.49 2.90 3.38 2.58 4.20 3.49 3.80
the Reference Period (2)
Fixed Charges for the 94,614 91,723 88,057 106,877 110,704 118,290 131,688 135,228
Reference Period (2)
Fixed Charge Coverage Ratio 4.05 4.06 3.85 2.88 2.80 2.43 2.62 2.38
for the Reference Period (2)
(1)
Net leverage ratio is not a defined term under the Company's Indentures.
(2) Consolidated Cash Flow as defined in the Company's $600.0 million Secured 2032 Notes issued
in June 2025, includes cash payments under the IP Transit Services Agreement with TMUSA.
Cash payments under the IP Transit Services Agreement with TMUSA for the for the most
recently completed period of four consecutive fiscal quarters of the Company were $100.0
million.
Ratios under the Company's $600 million 2032 Secured Notes
---
Q2 2025 Q3 2025 Q4 2025
Consolidated Cash Flow under the Indentures 286,881 344,739 322,154
PLUS: Cash Payments under IP Transit Services Agreement with TMUSA 100,000 100,000 100,000
Consolidated Cash Flow - $600.0 million Secured 2032 Notes 386,881 444,739 422,154
Consolidated Leverage Ratio for the Reference Period - $600.0 million Secured 2032 Notes 5.05 4.39 4.67
Net leverage ratio - $600.0 million Secured 2032 Notes (1) 4.55 4.08 4.35
Secured Leverage Ratio for the Reference Period - $600.0 million 2032 Notes 3.12 2.70 2.90
Fixed Charges for the Reference Period 118,290 131,688 135,228
Fixed Charge Coverage Ratio for the Reference Period - $600.0 million 2032 Notes 3.27 3.38 3.12
Cogent's SEC filings are available online via the Investor Relations section of www.cogentco.com or on the Securities and Exchange Commission's website at www.sec.gov.
COGENT COMMUNICATIONS HOLDINGS, INC., AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2025 AND 2024
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
2025 2024
Assets
Current assets:
Cash and cash equivalents $
148,515 $
198,486
Restricted cash 56,597 29,430
Accounts receivable, net of allowance for credit losses of $4,610 and $9,762, respectively 88,050 96,934
Due from T-Mobile, IP Transit Services Agreement, current portion, net of discount of $10,401 and $16,915, 89,599 83,085
respectively
Due from T-Mobile, Transition Services Agreement 119 62
Prepaid expenses and other current assets 67,701 74,104
Total current assets 450,581 482,101
Property and equipment:
Property and equipment 3,642,906 3,319,731
Accumulated depreciation and amortization (1,921,832) (1,655,564)
Total property and equipment, net 1,721,074 1,664,167
Right-of-use leased assets 310,523 324,315
IPv4 intangible asset 458,000 458,000
Other intangible assets, net 11,251 13,029
Due from T-Mobile, IP Transit Services Agreement, net of discount of $2,255 and $12,122, respectively 89,412 179,534
Due from T-Mobile, Purchase Agreement, net of discount of $4,006 and $5,755, respectively 24,109 22,360
Deposits and other assets 34,834 29,596
Total assets $
3,099,784 $
3,173,102
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $
30,571 $
39,805
Accrued and other current liabilities 109,582 134,609
Due to T-Mobile - Transition Services Agreement 525
Current maturities, operating lease liabilities 54,576 57,172
Finance lease obligations, current maturities 26,112 21,225
Total current liabilities 220,841 253,336
Senior secured 2032 notes, net of unamortized debt costs of $2,020 597,980
Senior secured 2026 notes, net of unamortized debt costs of $375 and discount of $499 499,126
Senior unsecured 2027 notes, net of unamortized debt costs of $1,236 and $2,013, respectively, and 744,420 740,934
discounts of $4,344 and $7,053, respectively
Secured IPv4 notes, net of debt costs of $8,863 and $6,702, respectively 371,537 199,298
Operating lease liabilities, net of current maturities 269,753 302,004
Finance lease obligations, net of current maturities 597,239 517,161
Deferred income tax liabilities 333,294 398,266
Other long-term liabilities 28,568 40,129
Total liabilities 3,163,632 2,950,254
Commitments and contingencies
Stockholders' (deficit) equity:
Common stock, $0.001 par value; 75,000,000 shares authorized; 50,062,158 and 49,034,925 shares issued and 50 49
outstanding, respectively
Additional paid-in capital 643,256 629,829
Accumulated other comprehensive income (loss) 1,428 (30,685)
Accumulated deficit (708,582) (376,345)
Total stockholders' (deficit) equity (63,848) 222,848
Total liabilities and stockholders' (deficit) equity $
3,099,784 $
3,173,102
COGENT COMMUNICATIONS HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2025 AND DECEMBER 31, 2024
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
Three Months Ended Three Months Ended
December 31, 2025 December 31, 2024
(Unaudited) (Unaudited)
Service revenue $
240,518 $
252,291
Operating expenses:
Network operations (including $319 and $477 of equity-based compensation expense, respectively), 128,354 155,183
exclusive of amounts shown separately
Selling, general, and administrative (including $4,489 and $6,871 of equity-based compensation 65,229 62,603
expense, respectively)
Depreciation and amortization 58,422 67,272
Total operating expenses 252,005 285,058
Gains on lease terminations and other 158
Operating loss (11,329) (32,767)
Interest expense, including change in valuation - interest rate swap (44,377) (37,739)
Interest income - IP Transit Services Agreement 3,502 5,065
Interest income - Purchase Agreement 450 417
Interest income and other 4,172 10,014
Loss before income taxes (47,582) (55,010)
Income tax benefit 16,801 11,693
Net loss $
(30,781) $
(43,317)
Comprehensive loss:
Net loss $
(30,781) $
(43,317)
Foreign currency translation adjustment 2,860 (18,391)
Comprehensive loss $
(27,921) $
(61,708)
Basic net loss per common share $
(0.64) $
(0.91)
Diluted net loss per common share $
(0.64) $
(0.91)
Dividends declared per common share $
0.020 $
0.995
Weighted-average common shares-basic 47,724,101 47,540,833
Weighted-average common shares -diluted 47,724,101 47,540,833
COGENT COMMUNICATIONS HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
FOR EACH OF THE THREE YEARS ENDED DECEMBER 31, 2025
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
2025 2024 2023
Service revenue $
975,766 $
1,036,104 $
940,922
Operating expenses:
Network operations (including $1,885, $1,681 and $1,069 of equity-based 534,962 641,836 544,232
compensation expense, respectively), exclusive of amounts shown separately
Selling, general, and administrative (including $24,532, $24,057 and $25,855 of 274,436 275,781 275,318
equity-based compensation expense, respectively)
Acquisition costs - Cogent Fiber Business 21,407 18,492
Depreciation and amortization 270,181 298,018 232,209
Total operating expenses 1,079,579 1,237,042 1,070,251
Gains on lease terminations and other 2,740 3,332
Operating loss (101,073) (197,606) (129,329)
Interest expense, including change in valuation - interest rate swap (161,362) (123,317) (93,344)
Loss on debt extinguishment and redemption - 2026 Notes (5,606)
Gain on bargain purchase - Cogent Fiber Business 22,202 1,406,435
Interest income - IP Transit Services Agreement 16,391 23,767 26,796
Interest income - Purchase Agreement 1,749 748 1,889
Interest income and other 4,936 14,557 7,030
(Loss) income before income taxes (244,965) (259,649) 1,219,477
Income tax benefit 62,791 55,575 53,964
Net (loss) income $
(182,174) $
(204,074) $
1,273,441
Comprehensive (loss) income:
Net (loss) income $
(182,174) $
(204,074) $
1,273,441
Foreign currency translation adjustment 32,113 (16,300) 4,771
Comprehensive (loss) income $
(150,061) $
(220,374) $
1,278,212
Basic net (loss) income per common share $
(3.80) $
(4.28) $
26.88
Diluted net (loss) income per common share $
(3.80) $
(4.28) $
26.62
Dividends declared per common share $
3.05 $
3.92 $
3.76
Weighted-average common shares-basic 47,928,826 47,627,873 47,373,361
Weighted-average common shares -diluted 47,928,826 47,627,873 47,837,512
COGENT COMMUNICATIONS HOLDINGS, INC., AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2025 AND DECEMBER 31, 2024
(IN THOUSANDS)
Three Months Ended Three Months Ended
December 31, 2025 December 31, 2024
(Unaudited) (Unaudited)
Cash flows from operating activities:
Net loss $
(30,781) $
(43,317)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization 58,422 67,272
Amortization of debt discounts and premium 1,472 1,324
Amortization of discounts, due from T-Mobile, IP Transit Services & Purchase Agreements (3,952) (5,482)
Equity-based compensation expense (net of amounts capitalized) 4,808 7,348
Gains - lease terminations and other (158)
Deferred income taxes (18,250) 15,279
Changes in operating assets and liabilities:
Accounts receivable 7,803 2,631
Prepaid expenses and other current assets 1,766 (1,890)
Due to T-Mobile - Transition Services Agreement (18) (1,045)
Due from T-Mobile - Transition Services Agreement 112 (62)
Deposits and other assets (3,845) 2,409
Accounts payable, accrued liabilities and other long-term liabilities (23,371) (29,935)
Net cash (used in) provided by operating activities (5,992) 14,532
Cash flows from investing activities:
Cash receipts - IP Transit Services Agreement - T-Mobile 25,000 25,000
Purchases of property and equipment (37,031) (46,104)
Net cash used in investing activities (12,031) (21,104)
Cash flows from financing activities:
Dividends paid (2,304) (48,416)
Principal payments of finance lease obligations (8,528) (27,979)
Proceeds from exercises of common stock options 1,252
Net cash used in financing activities (10,832) (75,143)
Effect of exchange rate changes on cash 7,673 (6,461)
Net decrease in cash and cash equivalents & restricted cash (21,182) (88,176)
Cash and cash equivalents & restricted cash, beginning of period 226,294 316,092
Cash and cash equivalents & restricted cash, end of period $
205,112 $
227,916
COGENT COMMUNICATIONS HOLDINGS, INC., AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR EACH OF THE THREE YEARS ENDED DECEMBER 31, 2025
(IN THOUSANDS)
2025 2024 2023
Cash flows from operating activities:
Net (loss) income $
(182,174) $
(204,074) $
1,273,441
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization 270,181 298,018 232,209
Amortization of debt discounts and premium 5,724 3,688 1,323
Amortization of discounts, due from T-Mobile, IP Transit Services & Purchase Agreements (18,140) (24,515) (28,685)
Equity-based compensation expense (net of amounts capitalized) 26,417 25,738 26,924
Gain on bargain purchase - Cogent Fiber Business (22,202) (1,406,435)
Loss on extinguishment & redemption of 2026 notes 5,606
Gains - lease terminations and other (2,740) (3,332) 212
Deferred income taxes (64,972) (51,623) (69,582)
Changes in operating assets and liabilities:
Accounts receivable 8,884 38,541 (51,002)
Prepaid expenses and other current assets (1,449) (5,839) (11,001)
Due to T-Mobile - Transition Services Agreement (525) (66,383) 66,908
Due from T-Mobile - Transition Services Agreement (57) 4,452 (4,514)
Deposits and other assets (6,921) (3,966) (1,548)
Accounts payable, accrued liabilities and other long-term liabilities (50,413) 2,852 (10,905)
Net cash (used in) provided by operating activities (10,579) (8,645) 17,345
Cash flows from investing activities:
Cash receipts - IP Transit Services Agreement - T-Mobile 100,000 204,167 204,167
Acquisition of Cogent Fiber Business, net of $47.1 million of cash acquired in 2023 12,323 2,191
Purchases of property and equipment (187,569) (194,998) (129,632)
Net cash (used in) provided by investing activities (87,569) 21,492 76,726
Cash flows from financing activities:
Net proceeds from issuance of senior secured 2032 notes - net of debt costs of $2.2 million 597,842
Net proceeds from issuance of senior unsecured 2027 notes, net of debt costs of $1.6 million and a 291,879
discount of $6.8 million
Net proceeds from issuance of secured IPv4 notes - net of debt costs of $4.0 million and $7.6 million, 170,479 198,426
respectively
Redemption and extinguishment of secured 2026 notes (505,000)
Dividends paid (150,063) (189,408) (181,716)
Purchases and retirement of common stock (16,686) (7,968)
Principal payments of finance lease obligations (33,843) (74,632) (77,362)
Settlement of a finance lease - at a discount (114,576)
Proceeds from exercises of common stock options 175 2,204 1,227
Net cash provided by (used in) financing activities 62,904 105,925 (257,851)
Effect of exchange rate changes on cash 12,440 (4,637) 1,649
Net (decrease) increase in cash and cash equivalents & restricted cash (22,804) 114,135 (162,131)
Cash and cash equivalents & restricted cash, beginning of year 227,916 113,781 275,912
Cash and cash equivalents & restricted cash, end of year $
205,112 $
227,916 $
113,781
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.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. 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. Actual results may differ from those set forth in the forward-looking statements. 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 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, 2025 and our Form 10-Q for the quarterly periods ended March 31, 2024, June 30, 2024, September 30, 2024, March 31, 2025, June 30, 2025 and September 30, 2025. 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.
View original content to download multimedia:https://www.prnewswire.com/news-releases/cogent-communications-reports-fourth-quarter-2025-and-full-year-2025-results-302692775.html
SOURCE Cogent Communications Holdings, Inc.
For Public Relations: Jocelyn Johnson, + 1 (202) 295-4299, jajohnson@cogentco.com, For Investor Relations: John Chang, + 1 (202) 295-4212, investor.relations@cogentco.com