COGENT COMMUNICATIONS HOLDINGS (CCOI) Company Report

CCOI aims to reduce its net leverage from a peak of 6.6 times to four times, having already reduced its quarterly dividend from $1.00 to $0.02 until this target is met. The company has multiple options to repay its June 2027, $750 million unsecured debt.
The company targets business revenue growth inflection in 2028 and overall total revenue growth inflection in 2029. This growth is expected from "grow" segments like Waves, high-speed IP, security, and Cloud Voice, which are growing at mid to high single digits, while legacy "nurture" and "harvest" segments decline.
CCOI has signed $10 billion in hyperscale connectivity deals (PCF), with $9 billion in cash expected upfront between the end of 2024 and early 2028. These deals are projected to contribute a revenue run rate of $400 million-$500 million exiting 2028.
The acquired Sprint business, which represented 40% of the combined company's revenue, has declined at an annualized rate of 24.2% over the past nine quarters, primarily from the off-net corporate segment.

3 days ago

Transcript

Cogent Communications Holdings Inc. Updates on Wavelength Business, EBITDA Growth, and Deleveraging Strategy

CCOI

Guidance Update

Dividends

Debt Issuance

Cogent Communications Holdings Inc. (CCOI) is targeting $500 million in revenue from its wavelength business by mid-year 2028, building on a Q3 2025 run rate of $40 million and 93% year-over-year growth.
The company has significantly grown underlying EBITDA (excluding T-Mobile subsidies) from $3 million to $48 million over nine quarters, with margins recovering to 20% and an expected total top-line growth of 6% to 8%.
To prioritize deleveraging, CCOI reduced its quarterly dividend from $1.00 to $0.02 per share, aiming to reach four times net leverage from a peak of 6.6 times.
CCOI faces a $750 million unsecured note maturity in June 2027 and is considering various refinancing strategies, including secured offerings and ABS structures, without immediate plans for refinancing as of December 2025.

3 days ago

Transcript

BofA Securities Leveraged Finance Conference 2025 Highlights

CCOI

Guidance Update

Dividends

New Projects/Investments

Cogent Communications (CCOI) reported $10 million in quarterly wavelength revenue in Q3 2025, growing 93% year over year and aims for a $500 million run rate by mid-2028.
Cogent has reduced its dividend from $1 to $0.02 per share quarterly to prioritize deleveraging, targeting 4 times net leverage from a peak of 6.6 times.
Lumen Technologies expects its enterprise revenue inflection point in 2028, driven by its "grow" segment and $10 billion in dark fiber (PCF) deals, which are projected to reach a $400 million-$500 million run rate by the end of 2028.
Lumen plans to use cash from an asset divestiture, expected to close in Q1 2026, to pay down $4.8 billion of first-line debt.

3 days ago

Transcript

Cogent Discusses Capital Allocation, Wavelengths Business, and Asset Monetization Strategies

CCOI

Dividends

Share Buyback

New Projects/Investments

Cogent announced a 98% reduction in its dividend to $0.02 per share, aiming to save $200 million annually and accelerate deleveraging from 6.6 times to a target of 4.0 times net leverage. The company also reinstated its share buyback program with $105 million in authorization.
The new wavelengths business, currently 4% of revenues, is growing rapidly with a target of reaching a $500 million run rate by 2028. At the end of the quarter, over 300 waves were installed but not yet billing.
Cogent's IPv4 address leasing business has grown to an almost $70 million annual run rate, with 23 million unleased addresses remaining. The company is also actively pursuing the sale or lease of 24 non-core data center facilities acquired from Sprint, having an LOI for two of them.

Nov 19, 2025, 5:30 PM

Transcript

Cogent Communications Updates on Capital Allocation and Strategic Initiatives

CCOI

Dividends

Share Buyback

New Projects/Investments

Cogent Communications reduced its dividend by 98% to $0.02 per share, saving $200 million annually to accelerate deleveraging towards a 4.0x net leverage target from 6.6x. The company also reinstated its share buyback program.
The Waves business, currently representing about 4% of Cogent's revenues, is targeting a $500 million run rate by 2028. The company has a backlog of installed waves not yet billing, which was over 300 at the end of the last quarter, but this gap is compressing.
Cogent is monetizing its IPv4 addresses, with the leasing business reaching an almost $70 million annual run rate. Additionally, the company is selling 24 non-core data center facilities (out of 186 total), with an LOI for two facilities, noting their suitability for AI inferencing edge use cases.

Nov 19, 2025, 5:30 PM

Transcript

Cogent Communications Holdings Discusses Capital Allocation, Wavelength Strategy, and Asset Monetization

CCOI

Dividends

Share Buyback

New Projects/Investments

Cogent Communications Holdings (CCOI) has reduced its dividend by 98% to $0.02 per share, aiming to save $200 million annually to accelerate deleveraging from 6.6x net leverage to a target of 4.0x net leverage. The company also reinstated its $105 million share buyback authorization.
The company is focused on its new wavelength business, which currently represents about 4% of revenues and is growing rapidly, with a target of reaching a $500 million run rate by 2028. At the end of the quarter, Cogent had over 300 waves installed but not yet billing.
Cogent is actively monetizing other assets, with its IPv4 leasing business growing from a $10 million annual run rate five years ago to almost $70 million today, and 23 million unleased addresses remaining. Additionally, the company is selling 24 non-core data center facilities with 109 MW of existing power, having an LOI for two of these facilities.

Nov 19, 2025, 5:30 PM

Transcript

Cogent Communications Provides Update on Capital Allocation, Growth Strategy, and Asset Monetization

CCOI

Dividends

Share Buyback

New Projects/Investments

Cogent Communications has reduced its dividend and will not increase it until net leverage reaches 4 times, currently at 6.6 times. However, the board has authorized the potential resumption of share repurchases, with $105 million available under the program.
The company projects a combined 6-8% top-line growth rate, driven by its net-centric business, which is growing at 8%, and the wavelengths business, which is experiencing tailwinds from AI training demand.
Cogent is actively monetizing non-core assets, including repurposed Sprint data centers. An LOI has been signed to sell two facilities for $144 million, with closing anticipated in Q1 2026, and plans are in place to divest the remaining 22 facilities. Proceeds will be used for delevering and potential share buybacks.
EBITDA has recovered to $48.3 million last quarter (Q3 2025), with reported EBITDA of $73 million including T-Mobile payments. The company anticipates 200 basis points a year of margin expansion and aims to return to pre-acquisition EBITDA margins of approximately 40%.

Nov 18, 2025, 7:00 PM

Transcript

Cogent Communications Discusses Share Repurchases, Asset Monetization, and Financial Outlook

CCOI

Share Buyback

Dividends

New Projects/Investments

Cogent's board authorized the potential resumption of its share repurchase program, with $105 million available, while the dividend remains reduced and will not increase until net leverage reaches 4 times (currently 6.6 times).
The company is actively monetizing non-core assets, including a letter of intent to sell two data centers for $144 million (expected to close in Q1), and generates $65 million annually from IPv4 address leasing.
Cogent anticipates annual capital spending of approximately $140 million (including capital lease payments) and expects to achieve pre-acquisition EBITDA margins of roughly 40% through margin expansion and the roll-off of $25 million quarterly T-Mobile payments by Q1 2028.
The company is targeting a $500 million business in the North American wavelengths market, which is growing at 5-10% annually in revenue terms, significantly driven by AI training.

Nov 18, 2025, 7:00 PM

Transcript

Cogent Communications to Resume Stock Repurchase Program

CCOI

Share Buyback

Cogent Communications Holdings, Inc. (NASDAQ: CCOI) has determined to allow management to resume the company's stock repurchase program.
The company may purchase shares from time to time depending on market, economic, and other factors.
The stock repurchase program does not obligate the company to acquire any specific number of shares, and there is no guarantee as to the amount of shares that may be repurchased.

Nov 17, 2025, 10:20 PM

Press Release

Cogent Communications (CCOI) Announces Q3 2025 Results, Dividend Cut, and Data Center Sale

CCOI

Earnings

Dividends

M&A

Cogent Communications (CCOI) reduced its quarterly dividend to $0.02 per share and temporarily suspended its stock buyback program to accelerate delevering, targeting a net leverage of four times EBITDA.
For Q3 2025, CCOI reported revenue of $241.9 million and EBITDA as adjusted of $73.8 million, with the EBITDA as adjusted margin increasing sequentially by 70 basis points to 30.5%.
The company entered a non-binding letter of intent to sell two data centers for $144 million as part of its strategy to monetize all 24 data centers.
Wavelength services generated $10.2 million in revenue for the quarter, with the company aiming for a long-term annual run rate of $500 million from the long-haul market.

Nov 6, 2025, 1:30 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for COGENT COMMUNICATIONS HOLDINGS.

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