Brief: Cogent Communications Q2 Basic EPS USD -1.21 Vs. IBES Estimate USD -0.93

Cogent Communications Holdings

07/08/2025 11:59

Overview

Cogent Q2 service revenue falls 0.3% sequentially, 5.5% yr/yr

Net loss per share of $1.21 misses analyst expectations

The multinational internet service provider increases quarterly dividend, expands stock buyback by $100 mln

Outlook

Cogent did not provide specific future revenue or EPS guidance

Company increased quarterly dividend to $1.015 per share for Q3 2025

Cogent expanded stock buyback program by $100 mln through 2026

Result Drivers

WAVELENGTH GROWTH - Wavelength revenue increased by 27.2% sequentially and 149.8% yr/yr, driven by expanded service offerings

IPV4 LEASING - Revenue from leasing IPv4 addresses rose by 6.3% sequentially and 40.1% yr/yr, contributing to overall revenue

OFF-NET DECLINE - Off-net revenue decreased by 4.8% sequentially and 8.3% yr/yr, impacting total service revenue

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Net Income
-$57.81 mln
Q2 Gross Margin
13.6%
Q2 Basic EPS
Miss
-$1.21
-$0.93 (11 Analysts)
Q2 EBIT
Miss
-$31.46 mln
-$27.40 mln (9 Analysts)
Q2 Adjusted Gross Margin
44.4%
Q2 Adjusted Gross Profit
$109.26 mln
Q2 EBITDA
$48.50 mln
Q2 Gross Profit
$33.46 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 3 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the integrated telecommunications services peer group is "buy"

Wall Street's median 12-month price target for Cogent Communications Holdings Inc is $74.50, about 41.1% above its August 6 closing price of $43.88

Press Release: ID:nPn406nd4a

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)