Cogent Communications Reports 5.9% Revenue Decline and $41.5 Million Net Loss in Q3 2025

Cogent Communications Holdings, Inc. reported a decline in financial performance for the third quarter of 2025, with service revenue totaling $241.9 million, a decrease of 5.9% compared to $257.2 million in the same period last year. The company experienced a net loss of $41.5 million, or $(0.87) per share, an improvement from a net loss of $63.1 million, or $(1.33) per share, in the prior year. For the nine months ending September 30, 2025, total service revenue was $735.2 million, down 6.2% from $783.8 million in 2024. The decrease in revenue was attributed to the cancellation of low-margin customers acquired through the acquisition of the Cogent Fiber Business and a reduction in revenue from the IP Transit Services Agreement with T-Mobile.

Operationally, Cogent's network operations expenses decreased by 18.5% to $131.7 million, primarily due to cost-cutting measures following the acquisition. Selling, general, and administrative expenses rose slightly by 4.1% to $70.4 million. The company reported a significant reduction in depreciation and amortization expenses, which fell by 29.6% to $60.4 million, reflecting the completion of depreciation on certain assets acquired from the Cogent Fiber Business. Interest expense increased by 61.4% to $43.4 million, largely due to new debt issued in connection with the acquisition.

As of September 30, 2025, Cogent's total assets were valued at $3.15 billion, with total liabilities amounting to $3.19 billion, resulting in a stockholders' deficit of $39.2 million. The company reported cash and cash equivalents of $147.1 million, down from $198.5 million at the end of 2024. The decline in cash was influenced by significant capital expenditures, including $150.5 million for property and equipment, as the company continues to expand its network infrastructure.

In terms of customer metrics, Cogent reported a total of 87,767 on-net customer connections, a slight increase from 87,655 in the previous year. However, the number of corporate customer connections decreased by 8.9% to 43,391, while net-centric connections increased by 2.6% to 63,875. The company also expanded its wavelength services, which saw a revenue increase of 92.5% year-over-year, indicating a growing adoption of this service among customers.

Looking ahead, Cogent Communications remains focused on integrating the Cogent Fiber Business and optimizing its operations to improve profitability. The company has entered into a non-binding letter of intent for the potential sale of two data center facilities for $144 million, which could enhance its liquidity position. Management anticipates that ongoing efforts to reduce operating costs and expand its service offerings will contribute to revenue growth in the coming quarters.