Cogent Q3 Loss Narrower Than Expected, Revenues Decline Y/Y

Cogent Communications Inc. CCOI reported mixed third-quarter 2025 results, with the bottom line beating the Zacks Consensus Estimate while the top line missing the same. This Washington, DC-based leading Internet service provider reported a top-line decline year over year, owing to weakness in enterprise and corporate business.

CCOI’s Net Income

The company reported a net loss of $41.5 million or a loss of $87 per share compared with a net loss of $63.1 million or a loss of $1.33 per share in the year-ago quarter. Despite a top-line decline, lower operating expenses led to a narrower loss year over year. The bottom line beat the Zacks Consensus Estimate by 28 cents.

CCOI’s Revenues

Service revenues decreased to $241.9 million from $257.2 million in the year-earlier quarter, owing to a decline in On-Net and Off-Net revenues. The top line fell short of the consensus estimate by $4 million.

On-Net revenues in the quarter were $135.3 million, down from $136.5 million in the year-ago quarter. The top line beat our estimate of $130.8 million. Customer connections of On-Net rose to 87,767 from 87,655.

Off-Net revenues were $95.11 million compared with $111.291 million in the year-earlier quarter. The segment's customer connections decreased to 25,518 from 32,420 in the year-ago quarter. However, Net sales missed our revenue estimate of $99.7 million.

Wavelength revenues were $10.2 million in the quarter, up from $5.3 million in the year-ago quarter. The segment's customer connections were 1,750, up from 1,041 in the prior-year quarter.

Non-core revenues were $1.4 million, down from $4.13 million in the year-ago quarter. The company’s net-centric customer connections increased to 63,875 from 62,273 a year ago. Enterprise customer connections decreased to 11,013 from 16,447 a year ago.

Other Details of CCOI

GAAP gross profit was $49.84 million, up from $9.83 million a year ago, with respective margins of 20.6% and 3.8%. Operating loss was $18.1 million compared with a loss of $57.9 million a year ago.

EBITDA totaled $48.8 million compared with $36.6 million in the year-ago quarter, with respective margins of 20.2% and 13.9%.

Cash Flow & Liquidity of CCOI

In the third quarter of 2025, Cogent generated $3.1 million in cash from operations against a cash utilization of $20.2 million in the year-ago quarter. As of Sept. 30, 2025, the company had $226.3 million in cash and cash equivalents with $576.9 million of finance lease obligations (net of current maturities).

Zacks Rank & Other Stocks to Consider

Cogent currently has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Keysight Technologies, Inc. KEYS is scheduled to release fourth-quarter fiscal 2025 earnings on Nov. 24. The Zacks Consensus Estimate for earnings is pegged at $1.83 per share, suggesting growth of 10.9% from the year-ago reported figure.

Keysight has a long-term earnings growth expectation of 11.5%. Keysight delivered an average earnings surprise of 4.7% in the last four reported quarters.

Workday, Inc. WDAY is set to release third-quarter 2025 earnings on Nov. 25. The Zacks Consensus Estimate for earnings is pegged at $2.12 per share, implying growth of 12.17% from the year-ago reported figure.

Workday has a long-term earnings growth expectation of 21.25%. The company delivered an average earnings surprise of 9.35% in the last four reported quarters.

AST SpaceMobile, Inc. ASTS is set to release third-quarter 2025 earnings on Nov. 10. The Zacks Consensus Estimate for earnings is pegged at a loss of 18 cents per share, implying a growth of 25% from the year-ago reported figure.

AST SpaceMobile has a long-term earnings growth expectation of 28.3%. The Zacks Consensus Estimate for revenues is pegged at $20.74 million, implying growth of 1,785.4% from the year-ago reported figure.

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