Cogent Communications' Q2 2025: Unpacking Contradictions in Wavelength Capacity, Revenue Growth, and Financial Reporting

Wavelength installation capacity, revenue growth expectations, wavelength ARPU trend, wavelength provisioning timeline and growth expectations, IPv4 revenue reporting and restatement are the key contradictions discussed in Cogent Communications' latest 2025Q2 earnings call.



Revenue and EBITDA Improvement:
- Cogent Communications reported revenue of $246.2 million for Q2 2025, with a $800,000 sequential decline, but sequentially improved from a previous decline of $5.2 million.
- EBITDA increased to $48.5 million, a 11% sequential increase, and EBITDA margin increased by 200 basis points to 19.7%.
- The improvement was driven by enhanced liquidity from debt transactions and margin expansion through SG&A expense reduction.

Wavelength Revenue Growth:
- Cogent's wavelength revenues increased by 150% year-over-year and 27% sequentially in Q2 2025, reaching $9.1 million.
- The growth was supported by an increase in wavelength opportunities, effective debt transactions, and high market concentration in North America.

IPV4 Leasing Revenue Performance:
- IPV4 leasing revenues increased sequentially by 6.3% to $15.3 million in Q2 2025, representing a 40.1% increase year-over-year.
- This growth was driven by higher average revenue per IPV4 address and reconfiguration of Sprint facilities.

Sales Force Productivity Enhancements:
- Cogent's sales force productivity improved, with sales reps now installing 4.8 orders per month, up from 3.8 previously.
- The increase in productivity was attributed to reduced turnover rates and a strategic focus on high-margin on-net services.