Cogent Communications ( (CCOI) ) has released its Q3 earnings. Here is a breakdown of the information Cogent Communications presented to its investors.
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Cogent Communications, a multinational Tier 1 facilities-based Internet Service Provider (ISP), specializes in offering high-speed Internet access, Ethernet transport, optical wavelength, optical transport, and colocation services through its all-optical IP network backbone across 302 global markets.
In the third quarter of 2025, Cogent Communications reported a service revenue of $241.9 million, marking a slight decrease from the previous quarter and the same period last year. The company highlighted a significant increase in wavelength revenue and a strategic move to sell two data centers for $144 million in cash.
Key financial metrics from the quarter include a 0.6% increase in EBITDA to $48.8 million and a 36% rise from the previous year. The EBITDA margin improved to 20.2%, while capital expenditures saw a notable reduction of 35.5% compared to the previous quarter. Additionally, Cogent’s on-net revenue grew by 2.2%, and the company approved a quarterly dividend of $0.02 per share for Q4 2025.
Despite a decrease in total customer connections, the company experienced a substantial increase in wavelength customer connections by 68.1% year-over-year. The acquisition of the Sprint network has enabled Cogent to expand its optical wavelength services, now offered in 996 data centers across North America.
Looking ahead, Cogent Communications remains focused on optimizing its network efficiency and expanding its service offerings, as reflected in its strategic decisions and financial adjustments. The company’s management continues to evaluate opportunities for growth and operational improvements in the competitive ISP market.