Cogent Comms 40ADJ. EBITDA $76.7M, est. $74.3

Cogent Comms 40ADJ. EBITDA $76.7M, est. $74.3

Cogent Communications Reports Adjusted EBITDA of $73.8M in Q3 2025, Slightly Below Estimate

Cogent Communications Holdings Inc (NASDAQGS: CCOI) reported adjusted EBITDA of $73.8 million for Q3 2025, reflecting a 0.4% sequential increase from $73.8 million in Q2 2025 and a 21.2% year-over-year rise from $60.9 million in Q3 2024. This figure fell modestly short of the estimated $74.3 million previously projected.

Service revenue for the quarter totaled $241.9 million, with on-net revenue growing 2.2% sequentially to $135.3 million. Wavelength revenue surged 12.4% from Q2 2025 to $10.2 million, marking a 92.5% increase compared to Q3 2024. Similarly, revenue from IPv4 address leasing rose 14.1% sequentially to $17.5 million, up 55.5% year-over-year. These gains were driven by expanded customer connections, with wavelength customers rising 19.1% sequentially and 68.1% annually.

Adjusted EBITDA margins reached 30.5% in Q3 2025, up from 29.8% in Q2 2025 and 23.7% in Q3 2024. The company also reported a significant improvement in operating cash flow, with net cash provided by operations at $3.1 million, compared to $44.0 million used in Q2 2025.

Capital expenditures declined 35.5% sequentially to $36.3 million, reflecting a strategic shift toward optimizing infrastructure efficiency. Notably, Cogent entered a $144 million agreement to sell two data centers acquired through its Sprint acquisition in October 2025.

The company approved a $0.02-per-share dividend for Q4 2025, maintaining its commitment to shareholder returns. While adjusted EBITDA growth outpaced the broader market, the sequential revenue decline and modest miss on the earnings estimate highlight ongoing challenges in scaling operations. Investors will likely monitor the impact of the data center sale and capital discipline in upcoming reports.

Cogent Communications Investor Relations, Q3 2025 Financials: Cogent Communications Investor Relations, Q3 2025 Financials.