Cogent(US:CCOI)2025-05-08 11:18Revenue Performance - Service revenue for Q1 2025 was $247.0 million, a decrease of 2.1% from Q4 2024 and a decrease of 7.2% from Q1 2024[3]. - Revenue from leasing IPv4 addresses increased by 14.8% sequentially and by 42.0% year-over-year, totaling $14.4 million for Q1 2025[2]. - On-net revenue was $129.6 million for Q1 2025, a slight increase of 0.7% from Q4 2024 but a decrease of 6.5% from Q1 2024[5]. - Off-net revenue was $107.3 million for Q1 2025, down 5.2% from Q4 2024 and down 9.2% from Q1 2024[6]. - Total service revenue for Q1 2025 is $247,048, down 2.1% from the previous quarter[33]. - Corporate revenue for Q1 2025 is $110,686, down 2.1% from Q4 2024[33]. - Service revenue for Q1 2024 was reported at $266,168, with a decrease to $247,048 by Q1 2025, indicating a decline of 7.2%[56]. EBITDA and Profitability - EBITDA for Q1 2025 was $43.8 million, up 4.6% from Q4 2024 and up 137.2% from $18.5 million in Q1 2024, with an EBITDA margin of 17.7%[2][18]. - Non-GAAP gross margin was 44.6% for Q1 2025, compared to 38.7% for Q4 2024 and 36.7% for Q1 2024[13]. - GAAP gross profit for Q1 2025 is $33,571, representing a 12.5% increase from Q4 2024[34]. - Non-GAAP gross profit for Q1 2025 is $110,099, up 12.8% from the previous quarter[34]. - EBITDA margin for the quarter was 6.9%, a decrease from 10.4% in the previous quarter[35]. - Adjusted EBITDA for the quarter was $114.9 million, down from $106.2 million in the previous quarter, reflecting a change of 4.1%[35]. - EBITDA for the three months ended March 31, 2024, was reported at $87.5 million[51]. - EBITDA for Q1 2024 was $18,452, increasing to $43,759 by Q1 2025, reflecting a growth of 137%[55]. - EBITDA margin improved from 6.9% in Q1 2024 to 17.7% in Q1 2025[55]. Customer Metrics - Total customer connections decreased by 9.1% year-over-year to 120,731 as of March 31, 2025[22]. - Total customer connections increased to 132,883, reflecting a decrease of 3.4% from the previous quarter[36]. - Corporate customer connections rose to 51,821, with a decline of 4.9% from the previous quarter[36]. - Non-Core customer connections decreased to 10,037, showing a significant drop of 16.2% from the previous quarter[36]. - Monthly recurring revenue from the Wireline Business was $12.9 million, contributing to 17,823 customer connections[46]. Financial Position and Debt - Total debt increased from $1,467,516,000 in March 2024 to $2,024,537,000 by March 2025, representing a growth of 37.9%[67]. - Cash and cash equivalents decreased from $426,241,000 in June 2024 to $183,970,000 by March 2025, a decline of 56.8%[67]. - The gross leverage ratio rose from 3.57 in March 2024 to 6.69 by March 2025, indicating increased financial leverage[67]. - The net leverage ratio increased from 3.17 in March 2024 to 6.08 in March 2025, suggesting a higher reliance on debt[67]. - Total current assets decreased from $482,101,000 in December 2024 to $422,681,000 by March 2025, a decline of 12.3%[72]. - Total liabilities increased from $2,950,254,000 in December 2024 to $2,977,878,000 by March 2025, reflecting a rise of 0.9%[72]. - Stockholders' equity decreased from $222,848,000 in December 2024 to $142,844,000 by March 2025, a decline of 36%[72]. Operational Efficiency - Total operating expenses decreased to $287,340 in Q1 2025 from $325,557 in Q1 2024, representing a reduction of 11.7%[73]. - The operating loss improved to $(40,292) in Q1 2025 from $(59,389) in Q1 2024, a decrease in loss of 32.2%[73]. - Net loss for Q1 2025 was $(52,042), down from $(65,307) in Q1 2024, reflecting a 20.3% improvement[73]. - The company reported a comprehensive loss of $(40,290) in Q1 2025, compared to $(70,341) in Q1 2024, indicating a 42.8% improvement[73]. - The company experienced a change in cash provided by operating activities of $19.2 million, reflecting a 39.5% increase from the previous quarter[35]. Dividends and Shareholder Returns - Cogent approved a regular quarterly dividend of $1.01 per share for Q2 2025, an increase of 0.5% from Q1 2025[25]. - Dividends declared per common share increased to $1.005 in Q1 2025 from $0.965 in Q1 2024, a rise of 4.1%[73]. Future Outlook - The company anticipates continued growth in EBITDA and margins as it expands its business operations[55]. - The company anticipates challenges related to the integration of the acquired Wireline Business and potential impacts from economic instability and competition in the market[75].