Cogent Communications (CCOI) Q4 2025 earnings summary

Executive summary

• Achieved sequential revenue growth in Q4 2025, reversing prior declines, with a focus on high-margin On-Net and Wavelength services, while cost reductions drove margin expansion.

• Integration of Sprint Wireline (T-Mobile Wireline) is complete, with Sprint-acquired revenues now a smaller portion of the total, and legacy business showing steady growth.

• Operates a global IP network with 25% of internet traffic, serving corporate, netcentric, and enterprise customers across 57 countries and 305 markets.

• Wavelength and IPv4 leasing businesses delivered strong year-over-year growth, contributing significantly to revenue and margin improvements.

• Monetization of surplus data centers and refinancing of 2027 unsecured notes are key priorities to accelerate deleveraging and enhance shareholder returns.

Financial highlights

• Q4 2025 revenue: $240.5M; full year 2025 revenue: $975.8M, down from $1,036.1M in 2024.

• Q4 gross margin: $112.5M (46.8%, up 1.5% sequentially and 11.8% YoY); full year gross margin: $442.7M (45.4%, up 720 bps YoY).

• Q4 EBITDA (excluding IP Transit payments): $51.7M (21.5% margin, up 6.1% sequentially and 57.0% YoY); full year EBITDA: $192.8M (19.8% margin, up 790 bps YoY).

• Adjusted EBITDA for Q4 2025 was $76.7M, up 4.0% sequentially and 14.8% YoY; full year adjusted EBITDA was $292.8M.

• Wavelength revenue Q4: $12.1M (up 74% YoY, 19% sequentially); full year: $38.5M (up 100% YoY).

• IPv4 leasing revenue: $64.5M for 2025, up 44% YoY.

Outlook and guidance

• Multi-year revenue growth expected in the 6%-8% range, with EBITDA margin expansion moderating to ~200 bps per year.

• Management expects continued growth in high-speed IP and wavelength services, leveraging network scale and cost advantages.

• Further cost reductions and mix shift to On-Net and Wavelength services to drive future margin gains.

• No specific quarterly or annual guidance provided, but sequential revenue growth is expected to continue.

• Future dividends and capital returns will depend on financial position, cash flow, and board discretion.