Cogent Communications Conference Call Summary Company Overview - **Company**: Cogent Communications (NasdaqGS:CCOI) - **Date**: December 09, 2025 Key Points Dividend Reduction - Cogent reduced its dividend by 98% to $0.02 per share due to increased leverage from the Sprint acquisition and negative revenue growth from that business [2][3] - The company had grown its dividend for 52 consecutive quarters prior to this reduction [2] Financial Performance - EBITDA has grown for nine consecutive quarters post-Sprint acquisition, despite a 2.4% average decline in top-line revenue [3][4] - EBITDA margin improved from approximately 1% post-acquisition to 20%, with potential to reach 30% when including T-Mobile subsidy payments [4] - Capital expenditures (CapEx) decreased by $20 million sequentially, stabilizing around $100 million annually [4] Wavelength Revenue Growth - Wavelength revenue, which constitutes about 4% of total revenues, grew 93% year-over-year and 14% sequentially [4][5] - Investors expected a faster growth rate in wavelength revenue [5] Deleveraging Strategies - Cogent plans to improve its leverage profile through EBITDA growth and divesting surplus assets, including 24 identified data centers [6][9] - The company has a total of 186 data centers and aims to monetize excess fiber and IP address space [9][11] - Cogent owns approximately 38 million IPv4 addresses, with a leasing income projected to increase from $12 million in 2022 to over $70 million by the end of 2025 [12] Market Position and Sales Strategy - The company has seen a shift in its sales mix, with 79% of sales being 100 gig wavelengths, compared to the market average of 40% [22] - Cogent's average revenue per user (ARPU) for wavelengths is around $2,000, with potential increases as the mix shifts towards higher capacity waves [25] Legacy Business Performance - The legacy Cogent business accounts for 70% of revenue, with the Netcentric segment growing at about 8% year-over-year [26][27] - The acquired Sprint business is declining at approximately 24% year-over-year, primarily affecting off-net corporate segments [29][30] Investor Misunderstandings - Investors may misunderstand the complexity of accounting related to the Sprint acquisition and the distinction between revenue growth from acquired versus organically growing customer bases [31][32] - The wavelength business is new for Cogent, and growth may not be as rapid as anticipated due to the broader market dynamics [32] Additional Insights - The company has paused its buyback program to avoid signaling that all capital is being used for buybacks instead of dividends [3] - There is a significant surplus of dark fiber and IP addresses that Cogent plans to monetize, with ongoing negotiations for sales and leases [10][12] - The company is exploring wholesale agreements for IP addresses to accelerate revenue generation [14][18] This summary encapsulates the key discussions and insights from the Cogent Communications conference call, highlighting the company's financial strategies, market positioning, and growth opportunities.

We came across a bullish thesis on Cogent Communications Holdings, Inc. on Value Degen’s Substack’s Substack by Unemployed Value Degen. In this article, we will summarize the bulls’ thesis on CCOI. Cogent Communications Holdings, Inc.'s share was trading at $19.99 as of December 2nd. CCOI’s trailing and forward P/E were 94.04 and 5.00k respectively according to Yahoo Finance. Ondas Holdings (ONDS) Jumps 15% After Raising $200-Million Funds alphaspirit/Shutterstock.com Cogent Communications Holdings, Inc ...

Cogent Communications Holdings, Inc. (NASDAQ:CCOI) is one of the best dividend stocks to buy. As of December 5, the average price target for CCOI suggests an upside of 38%, however, the Street high indicates an upside of 180%. Previously, on November 12, Jonathan Atkin from RBC Capital assigned a Hold rating on Cogent Communications Holdings, Inc. (NASDAQ:CCOI) with a $23 price target. Wall Street Sees a 180% Upside to Cogent Communications (CCOI) Photo by Artem Beliaikin on Unsplash Separately, Cogent ...

PresentationAll right. I think we'll get started. Hello everyone. My name is Chris Schoell. I'm on the Communications and Media Research team here at UBS. And today, we're pleased to have Dave Schaeffer Chief Executive Officer of Cogent Communications here with us. So Dave, thank you for joining us. .Hey, Chris, thanks for hosting me. I'd like to thank UBS for a great venue, and I'd like to thank all the investors and the audience for taking some time to hear what we're up to.Christopher SchoellUBS Investme ...

Cogent Communications Conference Call Summary Company Overview - **Company**: Cogent Communications (NasdaqGS:CCOI) - **Industry**: Telecommunications, specifically focusing on WAVE network and internet services Key Developments - **WAVE Network Expansion**: Cogent has made significant progress in expanding its WAVE network, converting Sprint's former long-distance voice network into a monetizable optical transport network serving over 1,000 data centers [4][5] - **Data Center Conversion**: 125 former switch sites have been converted into data centers, with plans to divest 24 facilities that have 109 megawatts of inbound power [4][5] - **Core Business Growth**: The core business is reportedly growing slightly faster than prior to the Sprint acquisition, despite challenges in the acquired business [4][5] Financial Performance - **EBITDA Growth**: EBITDA margins improved from 1% post-acquisition to slightly above 20%, with expectations for continued growth [5][6] - **Leverage Increase**: Aggregate leverage increased to 6.6 times due to capital expenditures and operating losses, leading to a 98% reduction in dividends [6][29] - **Revenue Goals**: Aiming for a $500 million revenue run rate in the WAVE business by mid-2028, representing 25% market share of a $3.5 billion market [7][8] Market Position and Competitive Advantages - **Market Growth**: The North American WAVE market is growing, driven by increased demand from AI and other sectors [9][11] - **Competitive Edge**: Cogent's advantages include a larger number of data centers (1,000 vs. competitors' 300), faster provisioning times, unique routing capabilities, and aggressive pricing strategies [9][10][11] - **Customer Acceptance**: Improvement in customer acceptance of services is noted, with a growing sales funnel and faster installation rates [15][16] Corporate Business Challenges - **Declining Corporate Business**: The corporate segment has faced declines, particularly in off-net services, with a goal to eliminate non-core products [19][21] - **On-net vs. Off-net Services**: The mix of on-net services has improved from 47% to 61% since the acquisition, contributing to EBITDA growth despite overall revenue decline [22][23] Future Outlook - **Revenue Growth Projections**: Expected top-line revenue growth of 6%-8% and EBITDA margin expansion of about 200 basis points annually [29][30] - **Dividend Resumption**: Plans to resume dividend increases once leverage is reduced to four times [29][31] - **IPv4 Address Leasing**: Significant growth in the IPv4 leasing business, with a run rate increasing from $12 million to $65 million, indicating a strategic focus on leasing rather than selling [37][38] Additional Insights - **Data Center Monetization**: Cogent is negotiating letters of intent for surplus data centers, with a focus on maximizing value from these assets [35][36] - **CapEx Management**: Core CapEx is expected to remain stable at $100 million, with additional capital lease payments [39] This summary encapsulates the key points discussed during the conference call, highlighting Cogent Communications' strategic initiatives, financial performance, market positioning, and future outlook.

Question-and-Answer SessionAna GoshkoBofA Securities, Research Division So the first one is really the wavelength business and the ability to scale the business and when we should expect to see a ramp. So just as a little bit of background. So you've cited strong wavelength circuit connection demand still hasn't really showed up in the revenue. And you've also said that you have a key customer that even though you've been installing circuits, they haven't been ready to accept the circuits. So just to put it ...

Cogent Communications (NasdaqGS:CCOI) 2025 Conference December 02, 2025 09:30 AM ET Company ParticipantsJim Breen - SVP and Head of Investor RelationsDavid Schaeffer - CEOJohn Wiercinski - Svp,treasurer and Corporate DevelopmentConference Call ParticipantsAna Goshko - AnalystAna GoshkoThank you, everyone, for joining us, and welcome to the Bank of America 2025 Leveraged Finance Conference. I'm Ana Goshko. I cover high-yield telecom and technology, and we're thrilled to have Cogent with us this morning and D ...

Core Insights - Cogent Communications Holdings, Inc. (CCOI) is facing deteriorating conditions as a prominent facilities-based internet service provider in the B2B market [1] Group 1 - The company is experiencing worsening circumstances, indicating potential challenges in its operational performance [1]

Core Insights - Recurve Capital's third-quarter 2025 investor letter reported a composite return of +4% gross and +3% net, underperforming the S&P 500's +8% and Nasdaq's +11% returns [1] - The letter emphasized a thematic investment approach, particularly highlighting the momentum of AI stocks in late Q3 while noting that many cyclical sectors lagged [1] Company Analysis: Cogent Communications Holdings, Inc. (NASDAQ:CCOI) - Cogent Communications experienced a significant decline, with a one-month return of -52.75% and a 52-week loss of 76.99%, closing at $19.00 per share with a market capitalization of $934.471 million as of November 27, 2025 [2] - The investment management company expressed concerns regarding Cogent's performance, particularly noting a -59% drawdown in November alone, and emphasized the importance of transparency in assessing the situation [3] - Despite acknowledging Cogent's potential, the company indicated that certain AI stocks present greater upside potential and lower downside risk, suggesting a shift in focus towards AI investments [4]

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. ...