Cogent Communications (NASDAQ:CCOI) Issues Earnings Results

Cogent Communications (NASDAQ:CCOI) issued its quarterly earnings data on Friday. The technology company reported ($0.64) earnings per share for the quarter, topping analysts’ consensus estimates of ($1.09) by $0.45, reports. Cogent Communications had a negative net margin of 19.72% and a negative return on equity of 208.70%. The business had revenue of $240.52 million during the quarter, compared to the consensus estimate of $243.82 million. During the same quarter in the prior year, the firm posted ($0.91) earnings per share. The company’s revenue was down 4.7% compared to the same quarter last year.

Here are the key takeaways from Cogent Communications’ conference call:

• Cogent’s wavelength business accelerated, with Q4 wavelength revenue of $12.1 million (up 74% YoY), a full‑year 2025 total of $38.5 million (100% YoY), and an expanded service footprint to 1,096 enabled locations and 2,064 connections.
• Margins and EBITDA improved materially as management cut costs and shifted mix to higher‑margin on‑net products; EBITDA Classic rose to $192.8 million (vs. $122.8M in 2024) and adjusted EBITDA margin expanded sequentially to 31.9% for the quarter.
• The Sprint‑acquired wireline business has sharply run off, falling from a $118M/quarter run rate at close to $43M this quarter (a 64% decline), which has been the main drag on consolidated revenue despite growth in legacy Cogent.
• Management is pursuing deleveraging — planning a dollar‑for‑dollar refinance of the $750M 2027 unsecured notes with new secured notes, targeting net leverage ~4x before resuming material shareholder returns — and is actively marketing ~24 surplus data centers after an LOI fell through due to buyer financing demands.
• IPv4 leasing is a growing cash contributor, with full‑year 2025 IPv4 leasing revenue up 44% to $64.5 million and 15.3 million addresses leased (title to 37.8 million addresses), supporting near‑term cash generation.

Cogent Communications Price Performance

CCOI traded down $8.02 during trading on Friday, reaching $18.30. The company’s stock had a trading volume of 3,239,035 shares, compared to its average volume of 998,323. The company has a market cap of $898.67 million, a price-to-earnings ratio of -4.47 and a beta of 0.81. The firm has a fifty day simple moving average of $23.53 and a two-hundred day simple moving average of $30.36. Cogent Communications has a 1 year low of $15.96 and a 1 year high of $82.00. The company has a quick ratio of 2.02, a current ratio of 2.02 and a debt-to-equity ratio of 49.06.

Analyst Ratings Changes

A number of equities analysts recently weighed in on CCOI shares. Wells Fargo & Company reaffirmed an “equal weight” rating and issued a $27.00 price target (down previously from $45.00) on shares of Cogent Communications in a report on Friday, November 7th. KeyCorp reiterated an “overweight” rating on shares of Cogent Communications in a research report on Wednesday, December 10th. JPMorgan Chase & Co. dropped their price target on shares of Cogent Communications from $37.00 to $23.00 and set a “neutral” rating on the stock in a research note on Thursday, November 13th. Citigroup reduced their price objective on shares of Cogent Communications from $33.00 to $25.00 and set a “neutral” rating for the company in a research report on Tuesday, November 11th. Finally, Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Cogent Communications in a report on Monday, December 22nd. One analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Cogent Communications currently has a consensus rating of “Hold” and a consensus target price of $25.71.

Insider Activity at Cogent Communications

In other Cogent Communications news, Director Lewis H. Ferguson sold 4,000 shares of the business’s stock in a transaction on Tuesday, December 2nd. The stock was sold at an average price of $20.34, for a total transaction of $81,360.00. Following the transaction, the director owned 19,267 shares of the company’s stock, valued at approximately $391,890.78. The trade was a 17.19% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Corporate insiders own 11.40% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the company. AQR Capital Management LLC purchased a new stake in shares of Cogent Communications in the first quarter valued at about $202,000. Goldman Sachs Group Inc. boosted its holdings in Cogent Communications by 26.9% in the 1st quarter. Goldman Sachs Group Inc. now owns 476,513 shares of the technology company’s stock valued at $29,215,000 after purchasing an additional 100,969 shares during the last quarter. Empowered Funds LLC grew its stake in shares of Cogent Communications by 10.3% in the 1st quarter. Empowered Funds LLC now owns 5,466 shares of the technology company’s stock valued at $335,000 after buying an additional 510 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in shares of Cogent Communications by 23.4% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 161,791 shares of the technology company’s stock worth $9,919,000 after buying an additional 30,630 shares during the last quarter. Finally, Strs Ohio purchased a new stake in shares of Cogent Communications during the 1st quarter valued at approximately $104,000. Institutional investors and hedge funds own 92.45% of the company’s stock.

Key Stories Impacting Cogent Communications

Here are the key news stories impacting Cogent Communications this week:

• Positive Sentiment: Q4 EPS beat estimates: Cogent reported a loss of ($0.64) vs. consensus ($1.09), an improvement from ($0.91) a year ago — the smaller-than-expected loss helped limit downside. MarketBeat Earnings
• Positive Sentiment: Unusual bullish options activity: Traders bought ~66,622 call options (a massive spike vs. normal daily volume), indicating short-term bullish positioning or speculation that could support the stock if momentum continues. DefenseWorld Options
• Neutral Sentiment: Company release & investor materials: Cogent posted its full Q4 and FY2025 results and supporting figures (service revenue and year-over-year comparisons); investors can review the press release and call for details. PR Newswire Release
• Neutral Sentiment: Short-interest data appears anomalous in recent reports (zero/NaN entries); treat short-interest signals with caution until corrected reporting is available.
• Negative Sentiment: Revenue miss and declines: Q4 service revenue was $240.5M vs. analyst expectations near $243.8M and service revenue declined year-over-year; full-year service revenue also fell from $1,036M to $975.8M — a clear headwind for growth expectations. Zacks Revenue Miss
• Negative Sentiment: Weak profitability metrics: Cogent reported a negative net margin (~-19.7%) and very negative return on equity (~-208.7%), reinforcing concerns about operating leverage and returns even as EPS improved versus expectations. Zacks Metrics
• Negative Sentiment: Market reaction and technicals: Heavy intraday volume and a sharp share decline suggest the market is focused on the revenue/margin story despite the EPS beat; the stock is trading nearer its one‑year low and below key moving averages, increasing downside risk for short-term holders.

About Cogent Communications

Cogent Communications (NASDAQ:CCOI) is a multinational Internet service provider specializing in high-speed Internet access and data transport services. The company operates one of the largest Tier 1 IP networks in the world, offering wholesale and enterprise customers reliable, low-latency connectivity. Cogent’s core services include dedicated Internet access, Ethernet transport, wavelength services, and MPLS-based IP Virtual Private Networks, all delivered over its privately owned, fiber-optic backbone.

In addition to network connectivity, Cogent provides data center colocation and managed services designed to support businesses with demanding bandwidth and redundancy requirements.