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Sep 30
Cogent Q2 2025 Earnings Report
Cogent reported lower revenue and a wider net loss in Q3 2025, but improved gross margins and strong growth in wavelength services offset some of the decline.
Key Takeaways
Cogent's Q3 2025 results reflected a drop in revenue and continued net losses, primarily due to ongoing integration costs and weaker demand in off-net services. However, the company saw strong growth in wavelength revenue and maintained high non-GAAP gross margins.
Total revenue was $241.9 million, down 5.9% YoY
Net loss narrowed to $41.5 million compared to $63.1 million YoY
Wavelength revenue grew 92.5% YoY to $10.2 million
Non-GAAP gross margin rose to 45.8% from 37.4% in Q3 2024
Cogent
Cogent
Cogent Revenue by Segment
Revenue by Segment
On-Net Revenue
CapyFin.comOff-Net Revenue
CapyFin.comWavelength Revenue
CapyFin.comNon-Core Revenue
CapyFin.com Forward Guidance
Cogent did not provide formal forward revenue or EPS guidance, but continued focus on margin improvement, IPv4 leasing, and a planned data center sale indicates strategic moves to strengthen financial flexibility.
Positive Outlook
- Strong YoY growth in wavelength revenue (92.5%)
- Improvement in non-GAAP gross margin to 45.8%
- EBITDA increased to $48.8 million, up 36% YoY
- Positive cash flow from operating activities ($3.1 million)
- Ongoing payments from IP Transit Services Agreement provide cash flow support
Challenges Ahead
- Total revenue declined 5.9% YoY
- Net loss remains significant at $41.5 million
- Off-net revenue declined 14.5% YoY
- Customer connections continue to decline
- Capital expenditures remain high at $36.3 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income