Cogent Q1 Loss Wider Than Expected, Revenues Decline Y/Y

Core Viewpoint - Cogent Communications Inc. reported disappointing first-quarter 2025 results, with both revenue and net income falling short of expectations due to weakness in enterprise and corporate business [1]. Financial Performance - The company recorded a net loss of $52 million, or a loss of $1.09 per share, an improvement from a net loss of $65.3 million, or a loss of $1.38 per share, in the same quarter last year [2]. - Service revenues decreased to $247.1 million from $266.2 million year-over-year, missing the consensus estimate by $3 million [3]. - On-Net revenues fell to $129.6 million from $138.6 million, also missing estimates [3]. - Off-Net revenues decreased to $107.3 million from $118.2 million, with customer connections dropping significantly [4]. - Wavelength revenues increased to $7.1 million from $3.3 million, indicating growth in this segment [4]. - Non-core revenues declined to $3 million from $6 million year-over-year [4]. Customer Connections - Net-centric customer connections rose slightly to 61,795 from 61,599 a year ago, while enterprise customer connections decreased to 13,641 from 19,463 [5]. Profitability Metrics - GAAP gross profit increased to $33.57 million from $26.4 million, with margins improving to 13.6% from 9.9% [6]. - Operating loss narrowed to $40.3 million from $59.4 million year-over-year [6]. - EBITDA rose to $43.8 million from $18.5 million, with margins improving significantly [7]. Cash Flow and Liquidity - The company generated $36.4 million in cash from operations, up from $19.2 million in the previous year [8]. - As of March 31, 2025, Cogent had $153.8 million in cash and cash equivalents, alongside $543.9 million in finance lease obligations [8]. Dividend Information - Cogent raised its quarterly dividend by $0.005 to $1.01 per share, marking the 51st consecutive quarterly dividend increase [7].