Cogent(CCOI) - 2025 Q2 - Quarterly Results

Q2 2025 Earnings Release Overview Cogent Communications announced Q2 2025 financial results, showing improved EBITDA and continued capital allocation through dividends and share repurchases Financial and Business Highlights Cogent Communications reported Q2 2025 service revenue of $246.2 million, with strong Wavelength and IPv4 growth, and significant sequential and year-over-year increases in EBITDA and Adjusted EBITDA Service Revenue Performance | Metric | Q2 2025 ($ millions) | Q1 2025 ($ millions) | Q2 2024 ($ millions) | Sequential Change (%) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Service Revenue | $246.2 | $247.0 | $260.4 | -0.3% | -5.5% | | Wavelength Revenue | $9.1 | $7.1 | $3.6 | +27.2% | +149.8% | | IPv4 Revenue | $15.3 | $14.4 | $10.9 | +6.3% | +40.1% | EBITDA & Margin Performance | Metric | Q2 2025 ($ millions) | Q1 2025 ($ millions) | Q2 2024 ($ millions) | Sequential Change (pp) | YoY Change (pp) | | :--- | :--- | :--- | :--- | :--- | :--- | | EBITDA | $48.5 | $43.8 | $27.1 | +10.8% | +78.8% | | EBITDA Margin | 19.7% | 17.7% | 10.4% | +2.0 | +9.3 | | Adjusted EBITDA | $73.5 | $68.8 | $106.2 | +6.9% | -30.8% | | Adjusted EBITDA Margin | 29.8% | 27.8% | 40.8% | +2.0 | -11.0 | Capital Allocation Updates Cogent increased its regular quarterly dividend for the 52nd consecutive quarter and expanded its stock buyback program by $100 million - Quarterly Dividend: Increased by $0.005 per share to $1.015 per share for Q3 2025 (from $1.010 for Q2 2025), marking the fifty-second consecutive quarterly dividend increase[2] - Stock Buyback Program: Purchased 229,507 shares for $11.5 million in Q2 2025 and increased the program by $100.0 million, extending through December 31, 2026[2] Detailed Quarterly Financial Performance This section provides an in-depth analysis of Cogent's Q2 2025 service revenue, profitability metrics, and cash flow performance Service Revenue Analysis Cogent's total service revenue for Q2 2025 was $246.2 million, a slight sequential decrease. While on-net revenue increased, off-net and non-core revenues declined. Wavelength and IPv4 leasing revenues continued their strong growth trends - Total Service Revenue: $246.2 million for Q2 2025, a decrease of 0.3% sequentially and 5.5% from Q2 2024. On a constant currency basis, service revenue decreased by 1.3% sequentially and 6.0% year-over-year[3][4] Revenue by Service Type (Q2 2025) | Service Type | Revenue ($ millions) | Sequential Change (%) | YoY Change (%) | | :--- | :--- | :--- | :--- | | On-net revenue | $132.3 | +2.1% | -6.0% | | Off-net revenue | $102.2 | -4.8% | -8.3% | | Wavelength revenue | $9.1 | +27.2% | +149.8% | | Non-core revenue | $2.7 | -10.0% | -41.3% | | IPv4 leasing revenue | $15.3 | +6.3% | +40.1% | - Revenue under the Commercial Agreement (Sprint acquisition) was $1.1 million for Q2 2025, an increase from $0.7 million in Q1 2025 but a decrease from $5.9 million in Q2 2024[3] Gross Profit and Operating Cash Flow GAAP gross profit remained stable sequentially at $33.5 million, while Non-GAAP gross profit saw a slight decrease. Net cash used in operating activities significantly increased in Q2 2025 compared to Q1 2025 and Q2 2024 - GAAP Gross Profit: $33.5 million for Q2 2025, a 0.3% sequential decrease but a 10.7% increase from Q2 2024. GAAP gross margin was 13.6% for Q2 2025, stable sequentially and up from 11.6% in Q2 2024[10][11] - Non-GAAP Gross Profit: $109.3 million for Q2 2025, a 0.8% sequential decrease but a 4.4% increase from Q2 2024. Non-GAAP gross margin was 44.4% for Q2 2025, down slightly from 44.6% in Q1 2025 but up from 40.2% in Q2 2024[12][13] Net Cash from Operating Activities | Metric | Q2 2025 ($ millions) | Q1 2025 ($ millions) | Q2 2024 ($ millions) | | :--- | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(44.0) | $36.4 | $(22.2) | - Sprint acquisition costs were $0 in Q1 2025 and Q2 2025, compared to $12.4 million in Q2 2024[14] EBITDA and Net Loss EBITDA and Adjusted EBITDA both increased sequentially in Q2 2025, with corresponding margin improvements. However, the company reported an increased net loss per share EBITDA & Margin (Q2 2025) | Metric | Q2 2025 ($ millions) | Q1 2025 ($ millions) | Q2 2024 ($ millions) | Sequential Change (%) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | EBITDA | $48.5 | $43.8 | $27.2 | +10.8% | +78.3% | | EBITDA Margin | 19.7% | 17.7% | 10.4% | +2.0 pp | +9.3 pp | Adjusted EBITDA & Margin (Q2 2025) | Metric | Q2 2025 ($ millions) | Q1 2025 ($ millions) | Q2 2024 ($ millions) | Sequential Change (%) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Adjusted EBITDA | $73.5 | $68.8 | $106.2 | +6.9% | -30.8% | | Adjusted EBITDA Margin | 29.8% | 27.8% | 40.8% | +2.0 pp | -11.0 pp | Net Loss Per Share (Q2 2025) | Metric | Q2 2025 ($ per share) | Q1 2025 ($ per share) | Q2 2024 ($ per share) | | :--- | :--- | :--- | :--- | | Basic and Diluted Net Loss per Share | $(1.21) | $(1.09) | $(0.68) | - Cash payments under the IP Transit Services Agreement were $25.0 million for Q2 2025, consistent with Q1 2025, but down from $66.7 million in Q2 2024[16] Operational and Strategic Developments This section outlines Cogent's customer and network expansion, optical wave service developments, and ongoing shareholder return initiatives Customer and Network Growth Total customer connections decreased, primarily driven by off-net and non-core segments, while on-net and wavelength customer connections continued to grow. The number of on-net buildings also increased Customer Connections (as of June 30, 2025) | Metric | June 30, 2025 (number) | March 31, 2025 (number) | June 30, 2024 (number) | QoQ Change (%) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Total customer connections | 118,730 | 120,731 | 128,782 | -1.7% | -7.8% | | On-net customer connections | 87,407 | 86,781 | 87,387 | +0.7% | +0.02% | | Off-net customer connections | 26,239 | 27,508 | 32,758 | -4.6% | -19.9% | | Wavelength customer connections | 1,469 | 1,322 | 754 | +11.1% | +94.8% | | Non-core customer connections | 3,615 | 5,120 | 7,883 | -29.4% | -54.1% | - The number of on-net buildings increased by 29 from Q1 2025 to 3,529 as of June 30, 2025, and increased by 143 from Q2 2024[22] Optical Wave Network Expansion Leveraging the Sprint network acquisition, Cogent has expanded its optical wavelength services, now offered in 938 data centers across North America - Cogent expanded its product offerings to include optical wavelength services using predominantly owned fiber acquired from the Sprint network. As of June 30, 2025, these services are offered in 938 data centers in the United States, Mexico, and Canada[23] Dividend and Share Repurchase Program Cogent's Board approved its 52nd consecutive quarterly dividend increase and significantly boosted its stock buyback program, demonstrating a continued commitment to shareholder returns - Quarterly Dividend: The Board approved a regular quarterly dividend of $1.015 per share for Q3 2025, an increase of $0.005 (0.5%) from Q2 2025, and an annual increase of 3.0% from Q3 2024. This marks the fifty-second consecutive quarterly dividend increase[24] - Stock Buyback Program: In Q2 2025, Cogent purchased 229,507 shares for $11.5 million at an average price of $50.18 per share. In July 2025, an additional 63,487 shares were purchased for $3.1 million. The Board approved a $100.0 million increase to the buyback program, extending through December 31, 2026[27] Company Information Cogent Communications is a multinational, Tier 1 facilities-based ISP, providing high-speed Internet access, Ethernet transport, optical wavelength, optical transport, and colocation services globally - Cogent Communications is a multinational, Tier 1 facilities-based ISP specializing in high-speed Internet access, Ethernet transport, optical wavelength, optical transport, and colocation services[29] - The company's facilities-based, all-optical IP network backbone provides services in 302 markets globally[29] Summary of Financial and Operational Results (Tables) This section presents comprehensive quarterly tables detailing Cogent's revenue, profitability, cash flow, and key operational metrics Revenue and Profitability Trends This section provides a detailed quarterly breakdown of Cogent's revenue streams, including on-net, off-net, wavelength, and non-core, along with GAAP and Non-GAAP gross profit and margins, highlighting recent performance and trends Service Revenue Breakdown (Q1 2024 - Q2 2025, in thousands) | Metric | Q1 2024 ($ thousands) | Q2 2024 ($ thousands) | Q3 2024 ($ thousands) | Q4 2024 ($ thousands) | Q1 2025 ($ thousands) | Q2 2025 ($ thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | On-Net revenue | $138,624 | $140,757 | $136,485 | $128,760 | $129,628 | $132,331 | | Off-Net revenue | $118,178 | $111,451 | $111,291 | $113,190 | $107,274 | $102,177 | | Wavelength revenue | $3,327 | $3,625 | $5,287 | $6,966 | $7,119 | $9,057 | | Non-Core revenue | $6,039 | $4,610 | $4,139 | $3,375 | $3,027 | $2,682 | | Service revenue – total | $266,168 | $260,443 | $257,202 | $252,291 | $247,048 | $246,247 | | IPv4 Revenue | $10,151 | $10,938 | $11,236 | $12,560 | $14,413 | $15,320 | Gross Profit & Margin (Q1 2024 - Q2 2025, in thousands) | Metric | Q1 2024 ($ thousands) | Q2 2024 ($ thousands) | Q3 2024 ($ thousands) | Q4 2024 ($ thousands) | Q1 2025 ($ thousands) | Q2 2025 ($ thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | GAAP gross profit | $26,344 | $30,240 | $9,835 | $29,836 | $33,571 | $33,465 | | GAAP gross margin | 9.9% | 11.6% | 3.8% | 11.8% | 13.6% | 13.6% | | Non-GAAP gross profit | $97,620 | $104,626 | $96,119 | $97,585 | $110,099 | $109,261 | | Non-GAAP gross margin | 36.7% | 40.2% | 37.4% | 38.7% | 44.6% | 44.4% | EBITDA and Cash Flow Trends This section details the quarterly trends for EBITDA, Adjusted EBITDA, net cash from operating activities, and capital expenditures, providing insight into the company's operational efficiency and investment activities EBITDA & Adjusted EBITDA (Q1 2024 - Q2 2025, in thousands) | Metric | Q1 2024 ($ thousands) | Q2 2024 ($ thousands) | Q3 2024 ($ thousands) | Q4 2024 ($ thousands) | Q1 2025 ($ thousands) | Q2 2025 ($ thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | EBITDA | $18,452 | $27,126 | $35,861 | $41,853 | $43,759 | $48,495 | | EBITDA margin | 6.9% | 10.4% | 13.9% | 16.6% | 17.7% | 19.7% | | EBITDA, as adjusted | $114,989 | $106,163 | $60,861 | $66,853 | $68,759 | $73,495 | | Adjusted EBITDA margin | 43.2% | 40.8% | 23.7% | 26.5% | 27.8% | 29.8% | Net Cash from Operating Activities & Capital Expenditures (Q1 2024 - Q2 2025, in thousands) | Metric | Q1 2024 ($ thousands) | Q2 2024 ($ thousands) | Q3 2024 ($ thousands) | Q4 2024 ($ thousands) | Q1 2025 ($ thousands) | Q2 2025 ($ thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $19,219 | $(22,171) | $(20,226) | $14,532 | $36,351 | $(44,039) | | Capital expenditures | $40,883 | $48,767 | $59,244 | $46,104 | $58,088 | $56,200 | Customer and Network Metrics This section provides a detailed overview of customer connections by type, on-net building counts, and network infrastructure metrics, illustrating the company's operational scale and reach Customer Connections (Q1 2024 - Q2 2025, end of period) | Metric | Q1 2024 (number) | Q2 2024 (number) | Q3 2024 (number) | Q4 2024 (number) | Q1 2025 (number) | Q2 2025 (number) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | On-Net customer connections | 87,574 | 87,387 | 87,655 | 87,500 | 86,781 | 87,407 | | Off-Net customer connections | 34,579 | 32,758 | 32,420 | 28,963 | 27,508 | 26,239 | | Wavelength customer connections | 693 | 754 | 1,041 | 1,118 | 1,322 | 1,469 | | Non-Core customer connections | 10,037 | 7,883 | 5,217 | 5,802 | 5,120 | 3,615 | | Total customer connections | 132,883 | 128,782 | 126,333 | 123,383 | 120,731 | 118,730 | On-Net Buildings (Q1 2024 - Q2 2025, end of period) | Metric | Q1 2024 (number) | Q2 2024 (number) | Q3 2024 (number) | Q4 2024 (number) | Q1 2025 (number) | Q2 2025 (number) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Multi-Tenant office buildings | 1,861 | 1,864 | 1,870 | 1,871 | 1,867 | 1,871 | | Carrier neutral data center buildings | 1,376 | 1,393 | 1,410 | 1,423 | 1,453 | 1,471 | | Cogent data centers | 78 | 86 | 95 | 104 | 101 | 101 | | Cogent edge data centers | 6 | 43 | 49 | 55 | 79 | 86 | | Total on-net buildings | 3,321 | 3,386 | 3,424 | 3,453 | 3,500 | 3,529 | | Wave enabled data centers | 295 | 516 | 657 | 808 | 883 | 938 | Network Metrics (Q1 2024 - Q2 2025, end of period) | Metric | Q1 2024 (miles/AS's) | Q2 2024 (miles/AS's) | Q3 2024 (miles/AS's) | Q4 2024 (miles/AS's) | Q1 2025 (miles/AS's) | Q2 2025 (miles/AS's) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Intercity route miles – Leased | 76,211 | 75,965 | 77,561 | 79,621 | 79,867 | 73,075 | | Metro route miles – Leased | 25,977 | 27,373 | 28,510 | 29,802 | 30,788 | 31,297 | | Intercity route miles – Owned | 21,883 | 21,883 | 21,883 | 21,883 | 21,883 | 21,883 | | Metro route miles – Owned | 1,704 | 1,704 | 1,704 | 1,704 | 1,704 | 1,704 | | Connected networks – AS's | 8,098 | 8,135 | 8,212 | 8,250 | 8,240 | 8,085 | Non-GAAP Measures and Supplemental Information This section provides detailed explanations, reconciliations, and definitions for Cogent's non-GAAP financial measures and key leverage ratios Notes to Financial and Operational Results This section provides detailed explanations and definitions for various financial and operational metrics presented in the summary tables, including classifications related to the Sprint acquisition, gross profit calculations, and specific expense exclusions - Wavelength Services: Cogent began providing optical wavelength and transport services over its fiber network in connection with the Wireline Business acquisition[40] - Non-Core Revenue: Consists of legacy services from companies whose assets or businesses were acquired by Cogent, which are supported but not actively sold[41] - GAAP Gross Profit/Margin: Defined as total service revenue less network operations expense, depreciation and amortization, and equity-based compensation included in network operations expense[43] - Non-GAAP Gross Profit/Margin: Represents service revenue less network operations expense, excluding equity-based compensation and depreciation/amortization. Management uses this to measure network efficiency[44] - Sprint Acquisition Costs: $9.0 million in Q1 2024 and $12.4 million in Q2 2024, with no costs incurred in Q3 2024, Q4 2024, Q1 2025, or Q2 2025[14][45] - IP Transit Services Agreement: TMUSA will pay Cogent an aggregate of $700.0 million, with $25.0 million paid in Q1 2025 and Q2 2025[16][53] - Owned Fiber Useful Life Change: On July 1, 2024, Cogent changed the estimated useful life of its owned fiber from an average of 14 years to an average of 40 years[54] EBITDA Reconciliations This section defines EBITDA and Adjusted EBITDA, explaining their relevance as non-GAAP measures for evaluating the company's ability to service debt, fund capital expenditures, and expand its business, along with their reconciliation to net cash provided by operating activities - EBITDA is defined as net cash flows provided by operating activities plus changes in operating assets and liabilities, cash interest expense, and cash income tax expense[56] - EBITDA, as adjusted, includes Sprint acquisition costs and cash payments made to the Company under the IP Transit Services Agreement[56] EBITDA and Adjusted EBITDA Reconciliation (Q1 2024 - Q2 2025, in thousands) | Metric | Q1 2024 ($ thousands) | Q2 2024 ($ thousands) | Q3 2024 ($ thousands) | Q4 2024 ($ thousands) | Q1 2025 ($ thousands) | Q2 2025 ($ thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $19,219 | $(22,171) | $(20,226) | $14,532 | $36,351 | $(44,039) | | EBITDA | $18,452 | $27,126 | $35,861 | $41,853 | $43,759 | $48,495 | | PLUS: Sprint acquisition costs | $9,037 | $12,370 | $0 | $0 | $0 | $0 | | PLUS: Cash payments under IP Transit Services Agreement | $87,500 | $66,667 | $25,000 | $25,000 | $25,000 | $25,000 | | EBITDA, as adjusted | $114,989 | $106,163 | $60,861 | $66,853 | $68,759 | $73,495 | Constant Currency Revenue Reconciliations This section provides reconciliations of service revenue to constant currency figures, both sequentially and year-over-year, and further adjusts for excise tax impacts, offering a clearer view of underlying revenue growth trends unaffected by foreign exchange fluctuations or tax changes Constant Currency Revenue Growth (Sequential, Q1 2024 - Q2 2025, in thousands) | Metric | Q1 2024 ($ thousands) | Q2 2024 ($ thousands) | Q3 2024 ($ thousands) | Q4 2024 ($ thousands) | Q1 2025 ($ thousands) | Q2 2025 ($ thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Service revenue, as reported | $266,168 | $260,443 | $257,202 | $252,291 | $247,048 | $246,247 | | Constant currency revenue percent increase (decrease) | -2.3% | -2.0% | -1.5% | -1.5% | -1.9% | -1.3% | Constant Currency and Excise Tax Impact on Revenue Growth (Sequential, Q1 2024 - Q2 2025, in thousands) | Metric | Q1 2024 ($ thousands) | Q2 2024 ($ thousands) | Q3 2024 ($ thousands) | Q4 2024 ($ thousands) | Q1 2025 ($ thousands) | Q2 2025 ($ thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Service revenue, as reported | $266,168 | $260,443 | $257,202 | $252,291 | $247,048 | $246,247 | | Constant currency and excise tax revenue percent increase (decrease) | -2.3% | -1.5% | -1.7% | -2.0% | -1.6% | -1.2% | Non-GAAP Gross Profit Reconciliations This section reconciles GAAP gross profit to Non-GAAP gross profit, detailing the adjustments for equity-based compensation and depreciation/amortization, providing a clearer view of the company's network efficiency Non-GAAP Gross Profit Reconciliation (Q1 2024 - Q2 2025, in thousands) | Metric | Q1 2024 ($ thousands) | Q2 2024 ($ thousands) | Q3 2024 ($ thousands) | Q4 2024 ($ thousands) | Q1 2025 ($ thousands) | Q2 2025 ($ thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Service revenue total | $266,168 | $260,443 | $257,202 | $252,291 | $247,048 | $246,247 | | GAAP Gross Profit | $26,344 | $30,240 | $9,835 | $29,836 | $33,571 | $33,465 | | Plus - Equity-based compensation – network operations expense | $385 | $350 | $469 | $477 | $490 | $506 | | Plus – Depreciation and amortization expense | $70,891 | $74,036 | $85,815 | $67,272 | $76,038 | $75,290 | | Non-GAAP Gross Profit | $97,620 | $104,626 | $96,119 | $97,585 | $110,099 | $109,261 | | GAAP Gross Margin | 9.9% | 11.6% | 3.8% | 11.8% | 13.6% | 13.6% | | Non-GAAP Gross Margin | 36.7% | 40.2% | 37.4% | 38.7% | 44.6% | 44.4% | Leverage Ratios This section defines and presents various leverage ratios, including gross, net, and indenture-specific ratios, both unadjusted and adjusted for amounts due from T-Mobile, providing insights into the company's debt levels relative to its earnings and assets Leverage Ratios (as of Q2 2025, in thousands) | Metric | March 31, 2024 ($ thousands) | June 30, 2024 ($ thousands) | Sept 30, 2024 ($ thousands) | Dec 31, 2024 ($ thousands) | March 31, 2025 ($ thousands) | June 30, 2025 ($ thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total debt | $1,467,516 | $1,882,429 | $1,938,571 | $1,994,386 | $2,024,537 | $2,335,557 | | Total net debt | $1,304,242 | $1,456,188 | $1,622,479 | $1,766,470 | $1,840,567 | $2,028,832 | | Trailing 12 months EBITDA, as adjusted | $411,001 | $463,102 | $392,525 | $348,392 | $302,636 | $269,968 | | Gross leverage ratio | 3.57 | 4.06 | 4.94 | 5.72 | 6.69 | 8.65 | | Net leverage ratio | 3.17 | 3.14 | 4.13 | 5.07 | 6.08 | 7.52 | | Gross leverage ratio, adjusted for amounts Due from T-Mobile | 2.64 | 3.37 | 4.16 | 4.91 | 5.81 | 7.74 | | Net leverage ratio, adjusted for amounts Due from T-Mobile | 2.24 | 2.45 | 3.36 | 4.25 | 5.21 | 6.61 | Leverage Ratios under Company's Indentures (as of Q2 2025, in thousands) | Metric | March 31, 2024 ($ thousands) | June 30, 2024 ($ thousands) | Sept 30, 2024 ($ thousands) | Dec 31, 2024 ($ thousands) | March 31, 2025 ($ thousands) | June 30, 2025 ($ thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total debt | $1,342,896 | $1,676,552 | $1,732,697 | $1,788,507 | $1,818,661 | $1,955,287 | | Consolidated Leverage Ratio | 3.51 | 4.50 | 5.11 | 5.81 | 5.86 | 6.82 | | Secured Leverage Ratio | 2.33 | 2.49 | 2.90 | 3.38 | 2.58 | 4.20 | | Fixed Charge Coverage Ratio | 4.05 | 4.06 | 3.85 | 2.88 | 2.80 | 2.43 | - Consolidated Cash Flow under the Company's $600.0 million Secured 2032 Notes includes cash payments under the IP Transit Services Agreement with TMUSA, which totaled $100.0 million for the most recently completed four fiscal quarters[75] Condensed Consolidated Financial Statements This section presents Cogent's condensed consolidated balance sheets, statements of comprehensive loss, and statements of cash flows for the reported periods Condensed Consolidated Balance Sheets As of June 30, 2025, Cogent's total assets increased to $3.27 billion, driven by growth in property and equipment. Total liabilities also increased to $3.22 billion, primarily due to new debt issuances, while stockholders' equity decreased Key Balance Sheet Items (as of June 30, 2025 vs. Dec 31, 2024, in thousands) | Metric | June 30, 2025 ($ thousands) | Dec 31, 2024 ($ thousands) | Change ($ thousands) | | :--- | :--- | :--- | :--- | | Total current assets | $560,971 | $482,101 | +$78,870 | | Total property and equipment, net | $1,725,382 | $1,664,167 | +$61,215 | | Total assets | $3,270,531 | $3,173,102 | +$97,429 | | Total current liabilities | $243,286 | $253,336 | -$10,050 | | Total liabilities | $3,223,863 | $2,950,254 | +$273,609 | | Total stockholders' equity | $46,668 | $222,848 | -$176,180 | - Debt structure changes include the reduction of Senior Secured 2026 Notes to $0, a new issuance of Senior Secured 2032 Notes for $597.9 million, and an increase in Secured IPv4 Notes to $370.5 million[78] Condensed Consolidated Statements of Comprehensive Loss For Q2 2025, Cogent reported an increased net loss of $57.8 million, primarily due to higher interest expense and a loss on debt extinguishment, despite a decrease in total operating expenses. The six-month period also showed an increased net loss Three Months Ended June 30, 2025 vs. 2024 (in thousands) | Metric | June 30, 2025 ($ thousands) | June 30, 2024 ($ thousands) | Change ($ thousands) | | :--- | :--- | :--- | :--- | | Service revenue | $246,247 | $260,443 | -$14,196 | | Total operating expenses | $277,706 | $310,918 | -$33,212 | | Operating loss | $(31,459) | $(47,143) | +$15,684 | | Interest expense (incl. swap) | $(39,777) | $(29,541) | -$10,236 | | Loss on debt extinguishment | $(5,606) | $0 | -$5,606 | | Gain on bargain purchase – Sprint | $0 | $27,673 | -$27,673 | | Net loss | $(57,807) | $(32,338) | -$25,469 | | Basic/Diluted Net Loss per Share | $(1.21) | $(0.68) | -$0.53 | Six Months Ended June 30, 2025 vs. 2024 (in thousands) | Metric | June 30, 2025 ($ thousands) | June 30, 2024 ($ thousands) | Change ($ thousands) | | :--- | :--- | :--- | :--- | | Service revenue | $493,298 | $526,613 | -$33,315 | | Total operating expenses | $565,045 | $636,481 | -$71,436 | | Operating loss | $(71,747) | $(106,536) | +$34,789 | | Interest expense (incl. swap) | $(73,971) | $(58,703) | -$15,268 | | Net loss | $(109,849) | $(97,645) | -$12,204 | | Basic/Diluted Net Loss per Share | $(2.30) | $(2.06) | -$0.24 | Condensed Consolidated Statements of Cash Flows In Q2 2025, net cash used in operating activities increased significantly. Investing activities shifted to net cash used, primarily due to increased property and equipment purchases. Financing activities provided substantial cash, driven by new debt issuances and debt extinguishment Three Months Ended June 30, 2025 vs. 2024 (in thousands) | Metric | June 30, 2025 ($ thousands) | June 30, 2024 ($ thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | $(44,039) | $(22,171) | | Net cash (used in) provided by investing activities | $(31,200) | $25,889 | | Net cash provided by financing activities | $193,754 | $255,595 | | Purchases of property and equipment | $(56,200) | $(48,767) | | Dividends paid | $(49,560) | $(93,304) | | Net proceeds from issuance of senior secured 2032 notes | $597,842 | $0 | | Debt extinguishment and redemption – 2026 notes | $(505,000) | $0 | Six Months Ended June 30, 2025 vs. 2024 (in thousands) | Metric | June 30, 2025 ($ thousands) | June 30, 2024 ($ thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | $(7,687) | $(2,951) | | Net cash (used in) provided by investing activities | $(64,288) | $76,840 | | Net cash provided by financing activities | $136,739 | $232,046 | | Purchases of property and equipment | $(114,288) | $(89,650) | | Dividends paid | $(98,693) | $(93,782) | Forward-Looking Statements This section contains a standard disclaimer on forward-looking statements, highlighting potential risks and uncertainties that could affect actual results - Statements in the release are forward-looking, based on current beliefs and expectations, and subject to significant risks and uncertainties[85] - Risk factors include the impact of the Wireline Business acquisition (integration difficulties, transition costs), future economic instability (recession, bank failures), changing foreign exchange rates, legal and operational difficulties in new markets, potential Universal Service Fund contributions, changes in government policy/regulation (net neutrality, data protection), cyber-attacks, increasing competition, ability to attract/retain customers, peering arrangements, reliance on equipment vendors, dependence on third-party fiber, debt payment ability, and litigation outcomes[85] - Cogent undertakes no duty to update any forward-looking statement or any information contained in this press release or other public disclosures[85]