Cogent Communications Q3 service revenue falls 1.7% sequentially

Cogent Communications Holdings

06/11/2025 12:09

Overview

Cogent Q3 service revenue falls 1.7% sequentially, 5.9% yr/yr

Cogent enters LOI to sell two data centers for $144 mln

Outlook

Cogent did not provide specific future revenue or EPS guidance

Result Drivers

ON-NET REVENUE - On-net revenue increased by 2.2% from Q2 2025 to Q3 2025, despite a decrease in total service revenue

WAVELENGTH GROWTH - Wavelength revenue rose 12.4% sequentially and 92.5% yr/yr, driven by increased customer connections

IPv4 LEASING - Revenue from leasing IPv4 addresses increased by 14.1% sequentially and 55.5% yr/yr

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Net Income
-$41.54 mln
Q3 Gross Margin
20.60%
Q3 Basic EPS
Beat
-$0.87
-$1.02 (12 Analysts)
Q3 EBIT
Beat
-$18.13 mln
-$27.90 mln (10 Analysts)
Q3 Adjusted Gross Margin
45.80%
Q3 Adjusted Gross Profit
$110.84 mln
Q3 EBITDA
$48.78 mln
Q3 Gross Profit
$49.84 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 5 "hold" and 1 "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 $47.50, about 19.4% above its November 5 closing price of $38.30

Press Release: ID:nPn2nTWNya

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(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.)