Cogent Q3 Loss Narrower Than Expected, Revenues Decline Y/Y

Core Insights - Cogent Communications Inc. (CCOI) reported mixed results for Q3 2025, with net income exceeding estimates while revenue fell short due to weakness in enterprise and corporate segments [1][9] Financial Performance - The company experienced a net loss of $41.5 million, or $0.87 per share, an improvement from a net loss of $63.1 million, or $1.33 per share, in the same quarter last year [2][9] - Service revenues decreased to $241.9 million from $257.2 million year-over-year, missing the consensus estimate by $4 million [3][9] - Gross profit increased significantly to $49.84 million from $9.83 million, with operating loss narrowing to $18.1 million compared to a loss of $57.9 million a year ago [6][9] Revenue Breakdown - On-Net revenues were $135.3 million, slightly down from $136.5 million year-over-year, but exceeded the estimate of $130.8 million [3] - Off-Net revenues fell to $95.11 million from $111.291 million, with customer connections decreasing to 25,518 from 32,420 [4] - Wavelength revenues rose to $10.2 million from $5.3 million, with customer connections increasing to 1,750 from 1,041 [4] Customer Connections - Net-centric customer connections grew to 63,875 from 62,273 year-over-year, while enterprise customer connections declined to 11,013 from 16,447 [5] Cash Flow and Liquidity - Cogent generated $3.1 million in cash from operations, a significant improvement from a cash utilization of $20.2 million in the previous year [7] - As of September 30, 2025, the company held $226.3 million in cash and cash equivalents, alongside $576.9 million in finance lease obligations [7]