Management has effectively completed the integration of Sprint and Cogent networks, shifting focus from restructuring to organic growth and product optimization. Performance is being driven by a deliberate rotation toward high-margin on-net products, which now represent 61% of total revenue compared to 47% in 2023. The 64% decline in acquired Sprint wireline revenue since closing has masked the 27% growth in the legacy Cogent Classic business over the same period. Wavelength services are emerging as ...

Cogent Communications (NasdaqGS:CCOI) Q4 2025 Earnings call February 20, 2026 08:30 AM ET Company ParticipantsDave Schaeffer - Founder and CEOFrank G. Louthan - Managing DirectorMichael Funk - SVPNick Del Deo - Managing DirectorTad Weed - CFOConference Call ParticipantsAna Goshko - Managing Director and Research AnalystBrandon Nispel - Equity Research AnalystChristopher Schoell - Equity Research AnalystDavid Barden - Managing Director and Senior Equity AnalystMichael Rollins - Managing Director and Telecomm ...

Cogent Communications (NasdaqGS:CCOI) Q4 2025 Earnings call February 20, 2026 08:30 AM ET Company ParticipantsDave Schaeffer - Founder and CEOFrank G. Louthan - Managing DirectorMichael Funk - SVPNick Del Deo - Managing DirectorTad Weed - CFOConference Call ParticipantsAna Goshko - Managing Director and Research AnalystBrandon Nispel - Equity Research AnalystChristopher Schoell - Equity Research AnalystDavid Barden - Managing Director and Senior Equity AnalystMichael Rollins - Managing Director and Telecomm ...

Cogent Communications (NasdaqGS:CCOI) Q4 2025 Earnings call February 20, 2026 08:30 AM ET Speaker9Good morning, and welcome to the Cogent Communications Holdings fourth quarter and full year 2025 earnings conference call. As a reminder, this conference call is being recorded, and it will be available for replay at www.cogent.com. A transcript of this conference call will be posted on Cogent's website when it becomes available. Cogent's summary of financial and operational results attached to its press relea ...

LITTLE ROCK, Ark., Feb. 18, 2026 (GLOBE NEWSWIRE) -- Uniti Wholesale today announced accelerated progress on its 2026 expansion plan, including new data center on-ramps, key route upgrades, and the launch of FastWaves™—a pre-deployed optical capacity program designed to cut delivery intervals for 100G and 400G wavelength services to less than three weeks on select routes. These initiatives expand the company’s reach to critical U.S. data centers while pairing faster turn-ups with market-aligned pricing and ...

Financial Data and Key Metrics Changes - The company's revenue for the quarter was $241.9 million, with an adjusted EBITDA of $73.8 million, reflecting a sequential increase of $0.3 million and an adjusted EBITDA margin increase of 70 basis points to 30.5% [10][11] - Total gross debt was $2.3 billion, with a net debt of $1.9 billion after accounting for $224.2 million due from T-Mobile [16][17] - The net leverage ratio was reported at 6.65, slightly up from 6.61 in the previous quarter, while the adjusted gross debt to EBITDA ratio improved from 7.74 to 7.45 [4][16] Business Line Data and Key Metrics Changes - Wavelength services revenue increased to $10.2 million, a 93% year-over-year increase and a 12% sequential increase [6] - IPv4 leasing revenue rose by 14.1% sequentially to $17.5 million, with a year-over-year increase of 55.5% [7] - On-net revenues were $135.3 million, showing a slight year-over-year decrease of 0.9% but a sequential increase of 2.2% [13] Market Data and Key Metrics Changes - The company serves 1,686 carrier-neutral data centers and 186 Cogent data centers, with a total of 214 megawatts of installed and available power [8] - The average price per megabit for the installed base decreased by 10% sequentially to $0.16 and by 31% year-over-year [14] - The company anticipates long-term annual revenue growth rates between 6-8% [8] Company Strategy and Development Direction - The company has refined its capital allocation priorities to strengthen financial flexibility and accelerate its deleveraging strategy, including a reduction in the quarterly dividend to $0.02 per share [2][3] - The company is actively working to monetize its acquired Sprint assets, including data centers, to further accelerate capital delivery [21] - The goal is to capture 25% of the long-haul wavelength market in North America within three years, with a focus on enhancing service quality and provisioning speed [6][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth potential of the wavelength services business, citing a backlog of 5,221 opportunities [6][22] - The company expects to return to total revenue growth by mid-third quarter 2025, despite a revenue decline of $4.3 million or 1.7% for the quarter [8][9] - Management noted that the integration of the Sprint network has been completed, leading to reduced capital expenditures going forward [7][21] Other Important Information - The company has temporarily suspended its stock buyback program to focus on reducing leverage [4] - The average revenue per IPv4 leased was $0.31 per address, with a total of 14.6 million addresses leased at the end of the quarter [7][11] - The company has completed the grooming of low-margin Sprint-acquired contracts and is focused on selling higher-margin products [9][12] Q&A Session Summary Question: Dividend cut and future levels - Management indicated that the dividend cut was a strategic decision to reach a net leverage target of four times EBITDA before considering a return to previous dividend levels [23][24] Question: Data center sale valuation - Management confirmed that the recent data center sale was representative of the overall portfolio, but specific pricing details were withheld to avoid setting benchmarks for future negotiations [24][25] Question: Wavelength run rate expectations - Management clarified that the expected run rate of $20 million-$25 million by year-end is dependent on customer acceptance of installed wavelengths, with ongoing efforts to improve acceptance rates [26][30] Question: Competitive landscape and provisioning - Management acknowledged that while competitors are enhancing provisioning timelines, the company's unique route diversity and reliability remain significant competitive advantages [42][43] Question: IPv4 address leasing strategy - Management explained that the leasing strategy has accelerated revenue growth from IPv4 addresses, allowing for quicker depletion of inventory compared to outright sales [44][45]

Cogent Communications (CCOI) Conference Summary Industry Overview - The discussion revolves around the telecommunications industry, specifically focusing on the wavelength services market and data center monetization opportunities. Key Points and Arguments Wavelength Services - The ramp-up of the wavelength business has been slower than expected due to three main factors: 1. Integration of the former Sprint voice network with Cogent's metro network took about a year and a half, which was slightly ahead of schedule [3][56] 2. Building a demand funnel was challenging, with a total of 10,000 expressions of interest, but only 1,000 converted to orders, and 8,000 fell out over time [4][57] 3. A strong funnel of 4,700 orders was reported, including various stages of order fulfillment [5][58] - The market is highly concentrated, with two major players dominating and a few smaller regional players [4][57] - The company has pre-enabled 938 data centers for quick provisioning of wavelength services, which is a significant improvement over traditional market practices [8][62] - The wavelength market is valued at approximately $2 billion, and Cogent aims to capture market share through unique architectural advantages [10][64] Backlog and Revenue Recognition - The backlog consists of four categories: 1. Signed contracts that have been installed but not accepted (200-300 units) [11][66] 2. Signed orders still in provisioning (a few hundred) [13][69] 3. Signed orders not yet provisioned due to customer readiness [15][71] 4. Orders with agreed terms but not yet signed [19][72] - Revenue is only recognized when customers accept the service, leading to discrepancies between installed units and recognized revenue [12][67] Financial Performance and Projections - The company aims to achieve a quarterly revenue run rate of $20 million from wavelength services by the end of the year, up from $9.1 million [21][54] - Historical growth rates indicate that Cogent has grown revenues organically at 10.2% from 2005 to 2020, with a target of 6% to 8% growth moving forward [23][24] - The enterprise business, which represents about 13% of total revenues, is declining but is expected to stabilize [39][40] - The NetCentric business, including WAVES, is currently growing in the high single digits, while excluding WAVES and IPv4 leasing, growth is in the low single digits [46][48] Data Center Monetization - The company has interacted with over 160 counterparties regarding data center monetization, with six letters of intent received [30][31] - The facilities are primarily former central offices, and the company is looking for counterparties willing to invest risk capital [29][30] - There is a potential market for small COLO facilities and portfolio-wide deals, but challenges exist due to the lack of current revenue from these facilities [36][37] Additional Important Insights - The company has faced challenges in the past, particularly with the acquisition of the Sprint Global Markets business, which initially led to a decline in revenue and margins [24][25] - The management emphasizes the need for credibility and transparency in reporting metrics to investors, especially during the early stages of wavelength deployment [22][23] - The company has a history of overcoming financial headwinds and aims to improve EBITDA sequentially through cost-cutting initiatives and ramping high-margin sales [53][54]

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]

Market Overview - As of mid-May 2025, the S&P 500 has turned positive year-to-date for the first time in many weeks, indicating a broad recovery across multiple sectors from previous volatility [1][2] - Despite the market improvement, ongoing trade disputes and the Trump administration's tariff policies remain a concern [2] Cogent Communications - Cogent Communications is currently trading at $50.87, with a 12-month stock price forecast of $75.75, indicating a potential upside of 48.91% based on 8 analyst ratings [5][8] - The company has seen a significant drop in share price since February, nearing a one-year low, but has strong growth potential in wavelength services, which have more than doubled in revenue over two years [6][7] - Cogent expects to capture a quarter of the North American wavelength market in the next three years, with current revenue in this category at $7.1 million [7] Regeneron Pharmaceuticals - Regeneron Pharmaceuticals is trading at $571.36, with a 12-month stock price forecast of $890.60, suggesting a potential upside of 55.87% based on 26 analyst ratings [9][10] - The company has experienced a 20% decline year-to-date and a 42% drop over the last 12 months, reaching a multi-year low [10] - Regeneron benefits from a robust pipeline and recent sales growth, achieving $14 billion in sales in 2024, up from over $13 billion the previous year [11] - The company has a low debt-to-equity ratio of 0.09 and initiated dividend payments in February 2025, enhancing its appeal to investors [13] Atlas Energy Solutions - Atlas Energy Solutions is currently priced at $13.23, with a 12-month stock price forecast of $19.81, indicating a potential upside of 49.75% based on 12 analyst ratings [14][16] - The company has faced a 42% decline year-to-date amid broader energy sector turmoil but benefits from a specialized focus with little competition [14][15] - Atlas Energy's operations in the Permian Basin provide a geographic advantage, helping to reduce costs and streamline logistics [15]