Cogent (CCOI) Q4 2025 Earnings Call Transcript

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Friday, February 20, 2026 astatine 8:30 a.m. ET

• Chief Executive Officer — Dave Schaeffer

• Chief Financial Officer — Thaddeus G. Weed

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Dave Schaeffer: I americium Dave Schaeffer, Cogent’s CEO. And with maine connected today’s telephone is Thaddeus G. Weed, our Chief Financial Officer. I would similar to item a fewer cardinal events and important matters successful the quarter. I would similar to beryllium capable to spell done these metrics to assistance you recognize amended our business. We are continuing to summation our margins. Our summation successful gross borderline and EBITDA margins person been driven by outgo reductions and a rotation to much profitable on-net products. In 2023, the archetypal afloat 4th Cogent was combined with Sprint wireline revenues oregon combined revenues by transportation benignant for the 3rd 4th versus this 4th person changed materially.

Our on-net revenues were 47% of our revenues successful 2023. Our full on-net revenues arsenic a percent of revenues has accrued from 47% of revenues successful 2023 to 61% of revenues this quarter. Our off-net revenues were 48% of our full revenues successful 2023 instantly aft the operation of Sprint and Cogent. Our off-net revenues arsenic a percent of our full revenues person decreased from 48% of revenues down to 39% of full revenues this quarter. And our non-core revenues were 5% of full revenues successful 2023, our non-core revenues arsenic a percent of our full revenues person decreased to little than 1% of our revenues this quarter.

I would similar to instrumentality a infinitesimal and outline our advancement successful our Wavelength sales. At twelvemonth end, we are offering wavelength services successful 1,068 locations, each susceptible of 10 gigabit, 100 gigabit, and 400 gigabit services with provisioning intervals of astir 30 days. As of today, we person really accrued our work footprint to 1,096 locations. Our Wavelength gross for the 4th was $12,100,000, a 74% year-over-year summation compared to the comparable 4th successful 2024. Our sequential Wavelength gross maturation accelerated and accrued by 19%. That is amended than the 12% sequential summation successful Q3 implicit Q2. Our wavelength customers accrued by 18% sequentially to 2,064 connections astatine the extremity of the quarter.

Our Wavelength gross for the afloat twelvemonth 2025, which was the archetypal afloat twelvemonth we were selling Wavelength services crossed our footprint, was $38,500,000, an summation of 100% from the 2024 number. Our wavelength customers during that play accrued by 85%. As of the extremity of the quarter, we had sold wavelengths successful 518 locations compared to 454 locations astatine the ’3. We proceed to expect capturing 25% of the highly concentrated wavelength marketplace successful North America. Now for a fewer comments connected margins. Our EBITDA arsenic adjusted for the 4th accrued by $3,000,000 to $76,700,000. Our EBITDA arsenic adjusted margins for the 4th accrued sequentially by 140 ground points to 31.9%.