Cogent(US:CCOI)2025-11-17 22:30Revenue Performance - Service revenue for Q3 2025 was $241.9 million, a decrease of 1.7% from Q2 2025 and a decrease of 5.9% from Q3 2024[4] - On-net revenue increased by 2.2% sequentially to $135.3 million in Q3 2025, but decreased by 0.9% year-over-year[6] - Wavelength revenue rose by 12.4% sequentially to $10.2 million and increased by 92.5% from Q3 2024[8] - Non-core revenue was $1.4 million for Q3 2025, down from $2.7 million in Q2 2025 and $4.1 million in Q3 2024[9] - Total service revenue for Q1 2024 was $266,168, representing a 2.2% decline from the previous quarter[33] - Service revenue for Q1 2024 was reported at $266,168, which was 62.4% higher than the same period in the prior year[66] - Service revenue for Q1 2025 was reported at $247,048, showing a sequential decrease of 1.6% compared to Q4 2024[65] - Service revenue adjusted for currency and excise taxes for Q1 2025 was $248,350, reflecting a decrease of 1.6% from the prior period[65] Financial Metrics - EBITDA for Q3 2025 was $48.8 million, up 0.6% from Q2 2025 and up 36.0% from Q3 2024, with an EBITDA margin of 20.2%[3] - Operating loss was reported at $18,128, which is a 42.4% decrease compared to the previous quarter's loss of $31,459[35] - EBITDA for the latest quarter reached $48,781, showing a 0.6% increase from $48,495 in the prior quarter[36] - Adjusted EBITDA for the latest quarter was $114,989 million, reflecting a 4.1% increase from the previous quarter[37] - The Gross Leverage Ratio decreased to 3.57 from 4.06 in the previous quarter[37] - The trailing 12 months EBITDA, adjusted for Sprint acquisition costs, was $302,636 as of March 31, 2025[72] Cash Flow and Capital Expenditures - Net cash provided by operating activities was $3.1 million for Q3 2025, compared to a net cash used of $44.0 million in Q2 2025[14] - Capital expenditures decreased by 35.5% to $36.3 million in Q3 2025 from Q2 2025[3] - Cash provided by operating activities for Q3 2025 was $3,100,000, compared to cash used of $20,226,000 in Q3 2024[82] - Capital expenditures totaled $40,883 million, representing a 6.3% decrease from the previous quarter[37] Customer Metrics - Total customer connections decreased by 6.4% year-over-year to 118,279 as of September 30, 2025[22] - Total customer connections reached 132,883, a decline of 3.4% from the previous quarter[38] - On-Net customer connections were 87,574, showing a slight decrease of 0.8% from the previous quarter[38] - Off-Net customer connections decreased by 5.7% to 34,579[38] - Non-Core customer connections decreased by 16.2% to 10,037[38] Dividends and Shareholder Returns - The company approved a quarterly dividend of $0.02 per share for Q4 2025[25] - Dividends declared per common share increased to $1.015 in Q3 2025 from $0.985 in Q3 2024[80] Acquisitions and Investments - Cogent entered into a letter of intent to sell two data centers for $144 million in cash[3] - The company acquired 482 technical buildings, converting 52 into Cogent Data Centers and 86 into Cogent Edge Data Centers[51] - The gain on bargain purchase from the Sprint acquisition amounted to $1.4 billion[50] Risks and Challenges - Risks include economic instability, potential recession, and liquidity concerns affecting spending on Internet services[84] - The company faces increasing competition, which could lead to lower service prices and affect customer acquisition[84] - Legal and operational challenges in new markets may pose risks to growth[84] - The management emphasizes the importance of maintaining favorable terms for Internet peering arrangements and right-of-way agreements[84] - Cogent highlights the potential impact of cyber-attacks and security breaches on its network operations[84]