Cogent Communications Holdings, Inc. reported fourth‑quarter 2025 service revenue of $240.5 million, a 0.6% decline from the $241.9 million earned in the third quarter and a 4.7% drop from the $252.3 million reported for Q4 2024. The company posted a net loss of $0.64 per share for the quarter, narrowing from a $0.87 loss in Q3 2025 and a $0.91 loss in Q4 2024, and beating the consensus estimate of a $1.09 loss. Full‑year 2025 service revenue was $975.8 million, down 4.6% from $1.036 billion in 2024.
The decline in top line was driven largely by foreign‑exchange headwinds and competitive pricing pressure in legacy off‑net services. On‑net revenue, which is higher‑margin, stood at $134.3 million, while off‑net revenue fell 2.3% to $92.9 million. The wavelength segment, a high‑margin growth area, grew 18.8% year‑over‑year to $12.1 million, reflecting increased demand for AI‑driven data‑center connectivity. IPv4 leasing revenue for the quarter was $17.5 million; the 55.5% increase cited in the original article refers to Q3 2025, not Q4 2025, and the full‑year 2025 IPv4 leasing revenue rose 43.8% to $64.5 million.
The EPS beat was largely attributable to disciplined cost management and the ongoing integration of Sprint’s wireline network, which has delivered savings and shifted the revenue mix toward higher‑margin on‑net services. Management highlighted that the wavelength business is “virtually all on‑net” and is a key driver of margin expansion, with a 100% year‑over‑year increase in full‑year wavelength revenue to $38.5 million and an 85% rise in wavelength customers.
CEO Dave Schaeffer emphasized that Cogent’s wavelength services are accelerating and that the company is “probably at a 20‑30% discount” to market on pricing, underscoring confidence in capturing a larger share of the concentrated North American wavelength market. CFO Tad Weed noted the company’s deleveraging priorities and refinancing plans for upcoming debt maturities, while also discussing the monetization of acquired data‑center assets.
Analysts reacted with mixed sentiment: the EPS beat was welcomed as evidence of effective cost control, but the revenue miss and valuation concerns tempered enthusiasm. Investors are watching whether the company can sustain revenue growth in its high‑margin segments while maintaining the cost savings achieved through the Sprint integration.
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