Cogent (CCOI) Q2 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Mon, May 4, 2026 astatine 10:42 AM CDT 45 min read

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Date

Aug. 7, 2025 astatine 8:30 a.m. ET

Call participants

• Chief Executive Officer — David Schaeffer

• Chief Financial Officer — Thaddeus G. Weed

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Full Conference Call Transcript

David Schaeffer: Thank you, and bully morning, everyone. Welcome to our Second Quarter 2025 Earnings Conference Call. I'm Dave Schaeffer, Cogent's Chief Executive Officer and with maine connected this morning's telephone is Tad Weed, our Chief Financial Officer. I'd similar to instrumentality a infinitesimal to interaction connected immoderate of the cardinal milestones that we achieved successful the quarter. As of the extremity of the quarter, we were offering Wavelength services successful 938 information centers astatine 10 gig, 100 gig and 400 gig work models. Materially, we besides person reduced our provisioning intervals for astir 30 days. Our Wavelength revenues for the 4th were $9.1 million, a 150% summation connected a year-over-year ground and a sequential summation of that gross watercourse of 27%.

As of the extremity of the quarter, we person sold wavelengths successful 418 locations. We presently person a backlog and funnel of 4,687 wavelength opportunities. We bash mean to seizure 25% of the highly concentrated North American wavelength market. In the quarter, we completed 2 important indebtedness transactions that materially enhanced our liquidity. In April, we issued an further $174.4 cardinal of indebtedness against our IPv4 securitizations astatine a complaint of 6.646%, which was substantially beneath our archetypal securitization complaint of 7.924% for the archetypal $206 cardinal of asset-backed securitization IPv4 notes issued successful May of 2024. In June, we issued $600 cardinal of 6.5% secured notes that mature successful 2032.

This extended the maturity of our $500 cardinal secured notes which were coming owed successful May of 2026 and provided america an further $100 cardinal of liquidity. Our EBITDA accrued sequentially by 11% to $48.5 million, and our EBITDA borderline accrued sequentially by 200 ground points to 19.7%. Our EBITDA arsenic adjusted accrued sequentially by 7% to $73.5 million, and our EBITDA borderline arsenic adjusted accrued by 200 ground points sequentially to 29.8%. Our SG&A expenses declined sequentially by $5.6 cardinal and a diminution of 27% of our revenues to 25% of revenues. Our IPv4 leasing revenues for the 4th accrued sequentially by 6.3% to $15.3 cardinal and this represents a 40.1% summation connected a year-over-year basis.

Our mean gross per IPv4 code leased successful the 4th was $0.39, a 22% summation from the basal astatine the opening of past year. We person an inventory of a full of astir 38 cardinal IPv4 addresses. We person continued the reconfiguration of Sprint facilities and added them to our information halfway footprint. We presently person connected 1,675 third-party carrier-neutral information centers arsenic good arsenic our full fleet of 187 Cogent information centers. The Cogent information centers person an installed basal of 214 megawatts of disposable power. During the quarter, we purchased 230,000 shares of our banal for a terms of $11.5 cardinal astatine an mean terms of $50.18.