Cogent(US:CCOI) Prnewswire·2025-11-06 11:59Core Insights - Cogent Communications reported service revenue of $241.9 million for Q3 2025, reflecting a decrease of 1.7% from Q2 2025 and a decrease of 5.9% from Q3 2024 [2] - The company entered a commercial agreement with T-Mobile for colocation and connectivity services, generating $0.4 million in revenue for Q3 2025 [2] - Foreign exchange rates positively impacted service revenue growth by $0.9 million from Q2 2025 to Q3 2025 and by $1.8 million year-over-year [3] Financial Performance - On-net revenue was $135.3 million for Q3 2025, an increase of 2.2% from Q2 2025 but a decrease of 0.9% from Q3 2024 [4] - Off-net revenue decreased to $95.1 million for Q3 2025, down 6.9% from Q2 2025 and 14.5% from Q3 2024 [5] - Wavelength revenue increased to $10.2 million for Q3 2025, up 12.4% sequentially and 92.5% year-over-year [6] - 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 [7] Profitability Metrics - GAAP gross profit increased by 48.9% to $49.8 million for Q3 2025 compared to Q2 2025, and increased by 406.8% from Q3 2024 [7] - GAAP gross margin improved to 20.6% for Q3 2025, compared to 13.6% for Q2 2025 and 3.8% for Q3 2024 [8] - Non-GAAP gross profit increased by 1.4% from Q2 2025 to Q3 2025 [9] - EBITDA for Q3 2025 was $48.8 million, a slight increase of 0.6% from Q2 2025 and a 36.0% increase from Q3 2024 [14] Cash Flow and Capital Expenditures - Net cash provided by operating activities was $3.1 million for Q3 2025, a significant improvement from net cash used of $44.0 million in Q2 2025 [11] - Capital expenditures decreased by 35.5% to $36.3 million for Q3 2025 compared to Q2 2025 [9] Strategic Developments - In October 2025, Cogent entered a letter of intent to sell two data centers for $144 million in cash [12] - The company has expanded its optical wavelength services to 996 data centers across the U.S., Mexico, and Canada [16] - A quarterly dividend of $0.02 per share was approved for Q4 2025 [17]