Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $240.5 million, with a full year total of $975.8 million, reflecting a sequential decline of $1.4 million or 0.6% [19] - EBITDA for Q4 2025 increased sequentially by $3 million to $51.7 million, with an EBITDA margin increase of 130 basis points to 21.5% [21] - Gross margin for Q4 2025 increased sequentially by $1.6 million to $112.5 million, with a gross margin percentage of 46.8% [20] Business Line Data and Key Metrics Changes - On-net revenues increased from 47% in Q3 2023 to 61% in Q4 2025, while off-net revenues decreased from 48% to 39% [4] - Wavelength revenue for Q4 2025 was $12.1 million, a 74% year-over-year increase, with a sequential growth of 19% [5] - Non-core revenues decreased to less than 1% of total revenues in Q4 2025 [4] Market Data and Key Metrics Changes - The company serves 1,715 carrier-neutral data centers and 187 Cogent data centers, with a total capacity of 213 megawatts [13] - The NetCentric business represented 43% of revenues in Q4 2025, with a year-over-year revenue increase of 10.4% [26] - The enterprise business accounted for 14.3% of revenues in Q4 2025, with a year-over-year decline of 24.7% [27] Company Strategy and Development Direction - The company aims for revenue growth in the 6%-8% range over the long term, with a focus on improving the on-net service mix [15][44] - Plans to refinance $750 million of unsecured notes with new secured notes are underway, aiming to enhance financial flexibility [39] - The company is actively working to monetize surplus data center facilities acquired from Sprint, which will aid in deleveraging [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to positive revenue growth, citing a 27% growth in Cogent revenues since the acquisition of Sprint [43] - The company anticipates continued margin expansion driven by a shift towards more profitable on-net services [44] - Management noted that the acquired Sprint Wireline revenue base has significantly declined, impacting overall revenue performance [23] Other Important Information - The company reported a significant reduction in IP transit payments from T-Mobile, which impacted EBITDA [8] - IPv4 leasing revenue increased by 44% year-over-year to $64.5 million for full year 2025 [11] - The company has improved its leverage ratios, with gross debt leverage at 7.35 and net debt ratio at 6.64 in Q4 2025 [10] Q&A Session Summary Question: Update on total company revenues and EBITDA for 2026 - Management indicated that they do not provide specific quarterly or annual guidance but expect to return to positive revenue growth and maintain a 6%-8% annual growth rate over the long term [43] Question: Progress on the Waves business and expected connections or revenues - Management noted that the wavelength business is gaining credibility and expects continued acceleration in revenue recognition and installations [44] Question: Status of data center transactions and tax implications - Management confirmed that negotiations for data center sales are ongoing and clarified that tax implications from the Sprint acquisition would not result in income taxes being paid due to existing NOLs [51][52] Question: Analysis of Sprint revenue versus Cogent Classic - Management explained the challenges in separating the two revenue streams post-acquisition and noted that the Sprint business is continuing to deteriorate [78]

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $240.5 million, with a full year total of $975.8 million, reflecting a sequential decline of $1.4 million or 0.6% [19] - Gross margin for Q4 increased by $1.6 million to $112.5 million, with a gross margin percentage of 46.8%, up 100 basis points sequentially [20] - EBITDA for Q4, excluding payments under the IP Transit Agreement, increased sequentially by $3 million to $51.7 million, with an EBITDA margin of 21.5% [21] - Full year EBITDA increased by $70 million to $192.8 million, with an EBITDA margin of 19.8%, up from 11.9% in 2024 [22] Business Line Data and Key Metrics Changes - On-Net revenues increased from 47% of total revenues in Q3 2023 to 61% in Q4 2025, while Off-Net revenues decreased from 48% to 39% [4] - Wavelength revenue for Q4 was $12.1 million, a 74% year-over-year increase, with a sequential growth of 19% [5] - Non-core revenues decreased to less than 1% of total revenues in Q4 2025, down from 5% in Q3 2023 [4] Market Data and Key Metrics Changes - The company serves On-Net customers in 3,579 buildings, with a total On-Net revenue of $146.4 million for Q4, reflecting a year-over-year increase of 7.8% [28] - Off-Net revenue for Q4 was $92.9 million, a year-over-year decrease of 17.9% [29] - The NetCentric business represented 43% of revenues in Q4, with a quarterly revenue increase of 10.4% year-over-year [26] Company Strategy and Development Direction - The company anticipates revenue growth in the 6%-8% range over the multi-year period, with a focus on improving the On-Net service mix [15][44] - The strategy includes monetizing surplus data center facilities acquired from Sprint, which will aid in deleveraging and returning capital to equity holders [39] - The company aims to refinance its $750 million unsecured notes with new secured notes, maintaining the same aggregate face value [14][65] Management's Comments on Operating Environment and Future Outlook - Management noted that the decline in Sprint-acquired revenues has been significant, with a 64% decrease since the acquisition, while Cogent's legacy revenues have grown by 27% [43][79] - The company expects to continue improving margins through a shift towards more profitable On-Net services, with 80% of Q4 sales being On-Net [44][82] - Management expressed optimism about the Wavelength business, highlighting its potential for growth and contribution to margin expansion [45] Other Important Information - The company has improved its leverage ratios, with a gross debt leverage ratio of 7.35, down from 7.45 in the previous quarter [10] - IPv4 leasing revenue increased by 44% year-over-year to $64.5 million for the full year 2025 [11] - The company is currently leasing 15.3 million IPv4 addresses, an increase of 17% year-over-year [12] Q&A Session Summary Question: Update on total company revenues and EBITDA for 2026 - Management indicated that they do not provide specific quarterly or annual guidance but expect to return to positive revenue growth and maintain a 6%-8% annual growth rate [43] Question: Expectations for the Wavelength business scaling in 2026 - Management noted that Wavelength products are significant contributors to margin expansion and expect growth to accelerate as credibility with customers increases [44][45] Question: Progress on data center transactions and tax implications - Management confirmed that negotiations are ongoing for multiple facilities and that tax losses from the Sprint acquisition will offset any taxable income from sales [51][52] Question: EBITDA contribution of the Sprint business - Management estimated the EBITDA contribution from the Sprint business to be close to zero but slightly positive, indicating ongoing efforts to improve margins [85]

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $240.5 million, with a full year total of $975.8 million, reflecting a sequential decline of $1.4 million or 0.6% [17] - Gross margin for Q4 increased by $1.6 million to $112.5 million, with a gross margin percentage of 46.8%, up 100 basis points sequentially [18] - EBITDA for Q4, excluding payments under the IP Transit Agreement, increased by $3 million to $51.7 million, with an EBITDA margin of 21.5% [19] - Full year EBITDA increased by $70 million to $192.8 million from $122.8 million in 2024, with an EBITDA margin increase from 11.9% to 19.8% [20] Business Line Data and Key Metrics Changes - On-net revenues increased from 47% in Q3 2023 to 61% in Q4 2025, while off-net revenues decreased from 48% to 39% [3] - Wavelength revenue for Q4 was $12.1 million, a 74% year-over-year increase, with a full year total of $38.5 million, doubling from 2024 [4][5] - Non-core revenues decreased to less than 1% of total revenues in Q4 2025, down from 5% in Q3 2023 [3] Market Data and Key Metrics Changes - The corporate business represented 42.7% of revenues in Q4, with a year-over-year decline of 9.1% [23] - NetCentric revenues increased by 10.4% year-over-year, representing 43% of total revenues in Q4 [25] - Enterprise revenues decreased by 24.7% year-over-year, now accounting for 14.3% of total revenues [26] Company Strategy and Development Direction - The company aims to capture 25% of the wavelength market in North America and anticipates revenue growth in the 6%-8% range over the multi-year period [5][14] - Focus on improving margins through cost reductions and a shift towards more profitable on-net services, with 80% of Q4 sales being on-net [37] - Plans to refinance $750 million of unsecured notes with new secured notes to enhance financial flexibility [13][37] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to positive revenue growth and sustaining EBITDA growth, despite the decline in Sprint-acquired revenues [42] - The company expects to continue improving its revenue trajectory and margins, driven by a focus on on-net services and wavelength products [37] - Management acknowledged the challenges posed by the declining Sprint revenue base but emphasized the growth potential in the legacy Cogent business [81] Other Important Information - The company is actively working to monetize surplus data center facilities acquired from Sprint, with ongoing discussions for potential sales [12][51] - IPv4 leasing revenue increased by 44% year-over-year, with 15.3 million addresses leased at year-end [10] - The company has improved its leverage ratios, with gross debt leverage at 7.35, down from 7.45 in the previous quarter [9] Q&A Session Summary Question: Update on total company revenues and EBITDA for 2026 - Management indicated that they do not provide specific quarterly or annual guidance but expect to return to positive revenue growth and maintain a 6%-8% annual growth rate [42] Question: Expectations for the Waves business scaling in 2026 - Management noted that the wavelength business is expected to grow, with a focus on on-net services contributing to margin expansion [43] Question: Progress on data center transactions - Management confirmed that negotiations are ongoing with multiple parties for the sale of data centers, following the termination of a previous LOI due to financing demands [51] Question: EBITDA contribution of the Sprint business - Management estimated the EBITDA contribution from the Sprint business to be close to zero but slightly positive, indicating ongoing efforts to improve margins [85]

Financial Data and Key Metrics Changes - The company's revenue for the quarter was $246.2 million, reflecting a sequential decline of $800,000 [12] - EBITDA as adjusted increased sequentially by 7% to $73.5 million, with an adjusted EBITDA margin increasing by 200 basis points to 29.8% [5][12] - The company completed two significant debt transactions, enhancing liquidity, including issuing $600 million of secured notes at a rate of 6.5% [4] Business Line Data and Key Metrics Changes - Wavelength revenues for the quarter were $9.1 million, a 150% increase year over year and a sequential increase of 27% [3] - IPv4 leasing revenues increased sequentially by 6.3% to $15.3 million, representing a 40.1% year-over-year increase [5] - Corporate business represented 44.3% of revenues, a decrease of 8.8% year over year, while the NetCentric business increased by 6.8% year over year [14][15] Market Data and Key Metrics Changes - The company served 3,529 on-net buildings, with on-net revenue of $132.3 million, a year-over-year decrease of 6% but a sequential increase of 2.1% [15] - Off-net revenue was $102.2 million, reflecting a year-over-year decrease of 8.3% and a sequential decrease of 4.8% [16] - Average price per megabit for the installed base decreased sequentially by 11% to $0.17 and decreased by 30% year over year [16] Company Strategy and Development Direction - The company aims to capture 25% of the highly concentrated North American wavelength market and is focused on selling high-margin on-net services [3][9] - The company is nearing the end of grooming unprofitable revenue acquired from Sprint, expecting to return to positive top-line growth in 2025 [9] - The company plans to continue improving sales force productivity and managing underperforming representatives [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to positive revenue growth each quarter, primarily driven by on-net services [44] - The company anticipates long-term average revenue growth between 6% and 8%, with EBITDA margins expected to expand by approximately 200 basis points annually [8] - Management noted that the leverage ratio is expected to decline sequentially, with a target to fall below five times over the next six quarters [56] Other Important Information - The company has a backlog of 4,687 wavelength opportunities and has connected 1,675 third-party carrier-neutral data centers [3][6] - The board authorized an additional $100 million buyback program, with a total of $106.4 million available under the buyback program [7] - The company’s capital expenditures for the quarter were $56.2 million, with expectations for a decline in capital spending in the second half of the year [20] Q&A Session Summary Question: What is the target for installed wavelengths by year-end? - Management confirmed the target of 400 to 500 circuits installed per month by year-end, emphasizing the need for quality and timely service delivery [28][30] Question: Can you provide an update on the return to top-line growth? - Management indicated that the rate of revenue decline has materially decelerated and expects to see positive revenue growth each quarter moving forward [42][44] Question: What are the sources of capital for funding dividends? - Management highlighted over $300 million in cash on the balance sheet and indicated that they do not anticipate needing material incremental borrowings to fund dividends or operations [50][56] Question: Where are most wavelength customers coming from? - Approximately 75% of wavelength customers are existing Cogent Transit customers, with 25% being new to Cogent [100] Question: What is the status of data center sales? - Management noted ongoing negotiations with multiple parties and expressed caution regarding the lack of firm deposits from bidders [78][80]

Financial Data and Key Metrics Changes - The company's revenue for the quarter was $246.2 million, reflecting a sequential decline of $800,000 [12] - EBITDA increased sequentially by 11% to $48.5 million, with an adjusted EBITDA of $73.5 million, up by $4.7 million [5][12] - The adjusted EBITDA margin increased by 200 basis points sequentially to 29.8% [6][12] - SG&A expenses declined sequentially by $5.6 million, representing 25% of revenues [6] - The company completed two significant debt transactions, enhancing liquidity with $600 million of secured notes issued at a rate of 6.5% [5] Business Line Data and Key Metrics Changes - Wavelength revenues for the quarter were $9.1 million, a 150% increase year-over-year and a 27% sequential increase [4] - IPv4 leasing revenues increased sequentially by 6.3% to $15.3 million, representing a 40.1% year-over-year increase [6] - The corporate business represented 44.3% of revenues, a decrease of 8.8% year-over-year [14] - The NetCentric business represented 39.5% of revenues, increasing by 6.8% year-over-year [15] - The enterprise business represented 16.2% of revenues, a decrease of 19.9% year-over-year [15] Market Data and Key Metrics Changes - The company serves 3,529 on-net buildings, with on-net revenue of $132.3 million, a year-over-year decrease of 6% [15] - Off-net revenue was $102.2 million, a year-over-year decrease of 8.3% [16] - Average price per megabit for the installed base decreased sequentially by 11% to $0.17 [16] - Average revenue per user (ARPU) for on-net was $5.00, off-net was $12.67, and wavelength ARPU was $2.16 [17] Company Strategy and Development Direction - The company aims to capture 25% of the North American wavelength market and is focused on selling high-margin on-net services [4][9] - The company anticipates long-term average revenue growth between 6% and 8% and expects EBITDA margins to expand by approximately 200 basis points annually [8] - The company is nearing the end of grooming unprofitable revenue acquired from Sprint, expecting to return to positive top-line growth in 2025 [9] Management's Comments on Operating Environment and Future Outlook - Management noted that the sequential revenue decline improved materially to $800,000 compared to $5.2 million in the previous quarter [9] - The company expects to see positive revenue growth each quarter moving forward, primarily driven by on-net services [45] - Management expressed confidence in achieving a quarterly run rate of $20 million for wavelengths by the fourth quarter [92] Other Important Information - The company has a backlog of 4,687 wavelength opportunities and has connected 1,675 third-party carrier-neutral data centers [7][26] - The board authorized an additional $100 million buyback program, with a total of $106.4 million available under the program [7] - The company reported a bad debt expense of less than 1% of revenues for the quarter [22] Q&A Session Summary Question: What is the target for installed wavelengths by year-end? - Management confirmed the target of 400 to 500 circuits installed per month by year-end, with a current backlog of wavelengths installed but not yet billed [30][33] Question: What is the status of data center sales? - Management reported six total letters of intent for data center sales but expressed caution regarding the lack of meaningful deposits from bidders [36][78] Question: When can the company expect to return to top-line growth? - Management indicated that the rate of revenue decline has materially decelerated and expects to see positive revenue growth each quarter moving forward [43][45] Question: How does the company plan to fund dividend growth? - Management stated that with over $300 million in cash and reduced capital expenditures, there is no anticipated need for material incremental borrowings to fund dividends [51][57] Question: What is the mix of wavelength customers? - Approximately 75% of wavelength customers are existing Cogent Transit customers, with 25% being new to Cogent [99]