COGENT COMMUNICATIONS HOLDINGS (CCOI) Company Report

Robbins Geller Rudman & Dowd LLP has launched an investigation into Cogent Communications Holdings, Inc. for potential violations of U.S. federal securities laws, focusing on whether the company made false or misleading statements or failed to disclose material information to investors.
The investigation follows Cogent Communications' November 6, 2025, report of third quarter 2025 financial results, which revealed a nearly 6% year-over-year decrease in service revenue.
Cogent also disclosed a 98% dividend cut, reducing it from $1.015 per share in the prior quarter to $0.02 per share, which resulted in a nearly 35% fall in the company's share price.

4 days ago

Press Release

Cogent Discusses Dividend Reduction, Deleveraging, and Growth Initiatives

CCOI

Dividends

Share Buyback

Guidance Update

Cogent reduced its dividend by 98% to $0.02 per share and temporarily paused its buyback program to address increased leverage (6.6 times LTM), with a goal to reach four times net leverage.
The company has achieved nine consecutive quarters of EBITDA growth post-Sprint acquisition, with EBITDA margins improving from 1% to 20% (or 30% including T-Mobile subsidy).
Wavelength revenue grew 93% year-over-year and 14% sequentially, and Cogent aims for an annual run rate of $500 million by mid-2028.
Cogent plans to monetize surplus assets, including 24 data centers, excess dark fiber, and 22 million surplus IPv4 addresses, with IPv4 leasing income projected to exceed $70 million exiting 2025.
The NetCentric business is growing at approximately 8% year-over-year, and the corporate on-net business is growing at 3-4% year-over-year, while the acquired Sprint base is still declining at about 2.5% annually.

Dec 9, 2025, 7:20 PM

Transcript

Cogent Addresses Dividend Cut, Deleveraging Strategies, and Wavelength Growth

CCOI

Dividends

Share Buyback

Guidance Update

Revenue Acceleration/Inflection

Cogent reduced its dividend by 98% to $0.02 per share and temporarily paused its share buyback program due to increased leverage (6.6 times LTM) following the Sprint wireline acquisition, with a goal to reach four times net leverage.
Despite an average revenue decline of 2.4% over nine quarters post-acquisition, Cogent has achieved nine consecutive quarters of EBITDA growth by reducing costs, improving EBITDA margins from 1% to 20% (or 30% with T-Mobile subsidy).
The company is actively pursuing deleveraging through asset monetization, including the sale of 24 surplus data centers (targeting $1 billion from 109 megawatts at $10 million/megawatt) and monetizing over 22 million surplus IPv4 addresses, with leasing income projected to exceed $70 million annually by late 2025.
Cogent's wavelength business, which represents about 4% of total revenues, grew 93% year-over-year and 14% sequentially, with a target annual run rate of $500 million by mid-year 2028.
The legacy Netcentric business is growing at approximately 8% year-over-year, and the legacy Cogent corporate business is growing at 3-4% year-over-year.

Dec 9, 2025, 7:20 PM

Transcript

Cogent Discusses Dividend Reduction, Deleveraging, and Growth Strategies

CCOI

Dividends

Share Buyback

Guidance Update

Cogent reduced its dividend by 98% to $0.02 per share and temporarily paused its buyback program due to increased leverage (6.6 times levered) following the Sprint wireline acquisition. The company aims to reach four times net leverage before reinstating the previous dividend level.
The company has grown EBITDA for nine consecutive quarters post-Sprint acquisition, with EBITDA margins improving from 1% to 20% (or 30% with T-Mobile subsidy). Capital expenditures have also fallen, returning to a stabilized rate of about $100 million annually.
Cogent is pursuing deleveraging through the divestiture of surplus assets, including 24 data centers (targeting $10 million per megawatt for 109 megawatts of power) and over 22 million surplus IPv4 addresses. IPv4 leasing income is projected to reach a run rate of over $70 million by exiting 2025, up from $12 million in 2022.
Wavelength revenue, representing about 4% of total revenues, grew 93% year-over-year and 14% sequentially. Cogent reiterates its target of an annual run rate of $500 million by mid-2028 for the wavelength business.
The Netcentric business revenue is growing at about 8% year-over-year, while the legacy Cogent corporate business is growing at 3% to 4% year-over-year. The acquired Sprint corporate business is still declining but is expected to moderate.

Dec 9, 2025, 7:20 PM

Transcript

Cogent Communications Discusses Strategic Initiatives and Financial Outlook at UBS Conference

CCOI

Guidance Update

Dividends

Revenue Acceleration/Inflection

Cogent Communications' acquired Sprint business experienced an accelerated decline of 24.2% year over year post-acquisition, but the company has successfully improved combined EBITDA margins from 1% to slightly above 20%.
The company aims for a $500 million revenue run rate in its WAVE business by mid-year 2028, targeting 25% market share in the intercity segment, significantly up from its current run rate of approximately $40 million.
Aggregate leverage increased to 6.6 times, resulting in a 98% reduction in the dividend; the company plans to resume dividend increases once leverage reaches four times.
Cogent expects to grow top-line revenues 6%-8% and expand EBITDA margins by approximately 200 basis points annually, with total revenue growth anticipated in Q4.
The IPv4 leasing business has seen substantial growth, from a $12 million annual run rate in 2022 to about a $65 million run rate as of last quarter, contributing to deleveraging efforts.

Dec 8, 2025, 8:00 PM

Transcript

Cogent Communications Outlines Strategic Progress, Margin Recovery, and Deleveraging Plan

CCOI

Guidance Update

Dividends

New Projects/Investments

Cogent Communications has expanded its WAVE network, which now serves over 1,000 data centers and aims for a $500 million revenue run rate by mid-2028, targeting 25% market share in the intercity North American WAVE business.
The company intentionally accelerated the decline of the acquired Sprint corporate business to improve margins, resulting in EBITDA margins (excluding T-Mobile subsidy payments) recovering from 1% to slightly above 20%.
Due to increased aggregate leverage of 6.6 times, Cogent reduced its dividend by 98% and plans to maintain it at this level until leverage reaches four times.
Cogent expects 6%-8% top-line revenue growth and 200 basis points a year of EBITDA margin expansion, with EBITDA projected to grow mid-double digits.
The company is actively monetizing surplus data centers, with 24 facilities totaling 109 megawatts earmarked for sale, and has a non-binding Letter of Intent for two of these. Its IPv4 leasing business has significantly grown from a $12 million annual run rate in 2022 to approximately $65 million as of last quarter.

Dec 8, 2025, 8:00 PM

Transcript

CCOI Outlines Deleveraging Plan and Future Growth Drivers

CCOI

Debt Issuance

Dividends

Revenue Acceleration/Inflection

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.

Dec 2, 2025, 2:30 PM

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.

Dec 2, 2025, 2:30 PM

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.

Dec 2, 2025, 2:30 PM

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

Earnings Transcripts

Quarterly earnings call transcripts for COGENT COMMUNICATIONS HOLDINGS.

Q3 2025

Nov 6, 2025

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Q2 2025

Aug 7, 2025

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Q1 2025

May 8, 2025

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