Core 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]

Financial Performance - Service revenue for Q2 2025 was $246.2 million, a decrease of 0.3% from Q1 2025 and a decrease of 5.5% from Q2 2024 [2] - EBITDA increased by 10.8% to $48.5 million for Q2 2025 from Q1 2025 and increased by 78.8% from $27.1 million for Q2 2024 [1][14] - GAAP gross profit decreased by 0.3% to $33.5 million for Q2 2025, but increased by 10.7% from Q2 2024 [8] - Non-GAAP gross profit decreased by 0.8% to $109.3 million for Q2 2025, while it increased by 4.4% from Q2 2024 [10] Revenue Breakdown - On-net revenue was $132.3 million for Q2 2025, an increase of 2.1% from Q1 2025 but a decrease of 6.0% from Q2 2024 [4] - Off-net revenue was $102.2 million for Q2 2025, a decrease of 4.8% from Q1 2025 and a decrease of 8.3% from Q2 2024 [5] - Wavelength revenue was $9.1 million for Q2 2025, an increase of 27.2% from Q1 2025 and an increase of 149.8% from Q2 2024 [6][15] - Revenue from leasing IPv4 addresses was $15.3 million for Q2 2025, an increase of 6.3% from Q1 2025 and an increase of 40.1% from Q2 2024 [15] Customer Metrics - Total customer connections decreased by 7.8% from June 30, 2024, to 118,730 as of June 30, 2025 [18] - On-net customer connections increased by 0.02% from June 30, 2024, to 87,407 as of June 30, 2025 [18] - Off-net customer connections decreased by 19.9% from June 30, 2024, to 26,239 as of June 30, 2025 [18] - Wavelength customer connections increased by 11.1% sequentially from Q1 2025 [18] Dividend and Stock Buyback - Cogent approved an increase of $0.005 per share to its regular quarterly dividend for a total of $1.015 per share for Q3 2025, marking the fifty-second consecutive quarterly dividend increase [21] - In Q2 2025, Cogent purchased 229,507 shares of its common stock for $11.5 million at an average price of $50.18 per share under its buyback program [23] - An additional 63,487 shares were purchased in July 2025 for $3.1 million at an average price of $48.13 per share [23] Strategic Developments - The acquisition of Sprint has allowed Cogent to construct a wavelength network, expanding its product offerings to include optical wavelength services [20] - As of June 30, 2025, Cogent was offering optical wavelength services in 938 data centers across the United States, Mexico, and Canada [20]