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Cogent Communications Reports Third Quarter 2025 Results

1. CCOI's Q3 2025 service revenue was $241.9 million, down 1.7% from Q2 2025. 2. Wavelength revenue increased by 12.4% sequentially, reflecting strong customer growth. 3. Operating loss improved significantly to $(18.1) million from $(57.8) million YoY. 4. Cogent approved a $0.02 quarterly dividend for Q4 2025, signaling financial stability. 5. Expected data center sale could provide $144 million, improving liquidity.

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FAQ

Why Bullish?

Despite a decrease in overall service revenue, significant improvements in EBITDA margin and wavelength revenue indicate positive operational adjustments. The potential sale of data centers bolsters liquidity, reminiscent of other companies that benefited from divestitures to enhance their cash positions.

How important is it?

The article presents substantial data affecting Cogent's financial outlook, especially with the focus on increasing margins and strategic asset sales. These factors enhance investor confidence, though the decline in service revenue tempers overall enthusiasm.

Why Short Term?

Immediate effects from improved cash flow due to potential sale of assets and the approved dividend likely influence market sentiment and stock performance in the near term, similar to situations where firms use asset sales to strengthen balance sheets.

Related Companies

T-Mobile US Inc. (TMUS)Sprint Corporation (S)Cogent Communications Holdings, Inc. (CCOI)
Financial and Business Highlights Service revenue was $241.9 million for Q3 2025 and was $246.2 million for Q2 2025. On-net revenue increased by 2.2% from Q2 2025 to Q3 2025. On-net revenue was $135.3 million for Q3 2025 and $132.3 million for Q2 2025. Wavelength revenue increased by 12.4%, sequentially, and increased by 92.5% from Q3 2024. Wavelength revenue was $10.2 million for Q3 2025, $9.1 million for Q2 2025 and $5.3 million for Q3 2024. Wavelength customer connections increased by 19.1%, sequentially from Q2 2025 and increased by 68.1% from Q3 2024. Revenue from leasing IPv4 addresses increased by 14.1%, from Q2 2025 and increased by 55.5% from Q3 2024. Revenue from leasing IPv4 addresses was $17.5 million for Q3 2025, $15.3 million for Q2 2025 and $11.2 million for Q3 2024. In October 2025, Cogent entered into a letter of intent to sell two data centers Cogent acquired and repurposed in connection with its Sprint acquisition for $144 million in cash. EBITDA increased by 0.6% to $48.8 million for Q3 2025 from Q2 2025 and increased by 36.0% from $35.9 million for Q3 2024. EBITDA margin was 20.2% for Q3 2025,19.7% for Q2 2025 and was 13.9% for Q3 2024. Net cash provided by operating activities was $3.1 million for Q3 2025. Net cash used in operating activities was $44.0 million for Q2 2025 and was $20.2 million for Q3 2024. EBITDA, as adjusted, increased by 0.4% to $73.8 million for Q3 2025 from Q2 2025 and increased by 21.2% from $60.9 million for Q3 2024. EBITDA, as adjusted, margin was 30.5% for Q3 2025, 29.8% for Q2 2025 and was 23.7% for Q3 2024. Capital expenditures decreased by 35.5% to $36.3 million for Q3 2025 from Q2 2025 and decreased by 38.8% from $59.2 million for Q3 2024. Cogent approved a quarterly dividend of $0.02 per share for Q4 2025. , /PRNewswire/ -- Cogent Communications Holdings, Inc. (NASDAQ: CCOI) ("Cogent") today announced service revenue of $241.9 million for the three months ended September 30, 2025, a decrease of 1.7% from the three months ended June 30, 2025 and a decrease of 5.9% from the three months ended September 30, 2024. On the closing date of the Sprint acquisition, Cogent and T-Mobile entered into a commercial agreement (the "Commercial Agreement"), for colocation and connectivity services.  Revenue under the Commercial Agreement, primarily classified as on-net revenue and net-centric revenue, was $0.4 million for the three months ended September 30, 2025, $1.1 million for the three months ended June 30, 2025 and $4.1 million for the three months ended September 30, 2024. Foreign exchange rates positively impacted service revenue growth from the three months ended June 30, 2025 to the three months ended September 30, 2025 by $0.9 million and positively impacted service revenue growth from the three months ended September 30, 2024 to the three months ended September 30, 2025 by $1.8 million.  On a constant currency basis, service revenue decreased by 2.1% from the three months ended June 30, 2025 to the three months ended September 30, 2025 and decreased by 6.6% from the three months ended September 30, 2024 to the three months ended September 30, 2025. On-net service is provided to customers located in buildings that are physically connected to Cogent's network by Cogent facilities. On-net revenue was $135.3 million for the three months ended September 30, 2025, an increase of 2.2% from the three months ended June 30, 2025 and a decrease of 0.9% from the three months ended September 30, 2024. Off-net customers are located in buildings directly connected to Cogent's network using other carriers' facilities and services to provide the last mile portion of the link from the customers' premises to Cogent's network. Off-net revenue was $95.1 million for the three months ended September 30, 2025, a decrease of 6.9% from the three months ended June 30, 2025 and a decrease of 14.5% from the three months ended September 30, 2024. Wavelength revenue was $10.2 million for the three months ended September 30, 2025, an increase of 12.4% from the three months ended June 30, 2025 and an increase of 92.5% from the three months ended September 30, 2024. Non-core services are legacy services, which Cogent acquired and continues to support but does not actively sell.  Non-core revenue was $1.4 million for the three months ended September 30, 2025, $2.7 million for the three months ended June 30, 2025 and was $4.1 million for the three months ended September 30, 2024.  GAAP gross profit is defined as total service revenue less network operations expense, depreciation and amortization and equity-based compensation included in network operations expense.  GAAP gross margin is defined as GAAP gross profit divided by total service revenue. GAAP gross profit increased by 48.9% from the three months ended June 30, 2025 to $49.8 million for the three months ended September 30, 2025 and increased by 406.8% from the three months ended September 30, 2024. GAAP gross margin was 20.6% for the three months ended September 30, 2025, 13.6% for the three months ended June 30, 2025 and 3.8% for the three months ended September 30, 2024. Non-GAAP gross profit represents service revenue less network operations expense, excluding equity-based compensation and amounts shown separately (depreciation and amortization expense). Non-GAAP gross margin is defined as Non-GAAP gross profit divided by total service revenue.  Non-GAAP gross profit increased by 1.4% from the three months ended June 30, 2025 to $110.8 million for the three months ended September 30, 2025 and increased by 15.3% from the three months ended September 30, 2024. Non-GAAP gross margin was 45.8% for the three months ended September 30, 2025, 44.4% for the three months ended June 30, 2025 and 37.4% for the three months ended September 30, 2024. Net cash provided by operating activities was $3.1 million for the three months ended September 30, 2025. Net cash used in operating activities was $44.0 million for the three months ended June 30, 2025 and was $20.2 million for the three months ended September 30, 2024. Potential Sale of Acquired Data Centers In October 2025, Cogent entered into a non-binding letter of intent "(LOI") for the sale of two data center facilities (the "Facilities") and the associated land for $144.0 million in cash.  The LOI includes certain contingencies, including the completion of further due diligence by the prospective buyer and negotiation and execution of a definitive purchase and sale agreement. The Facilities are owned real estate acquired and repurposed by Cogent in the Sprint acquisition. IP Transit Services Agreement On May 1, 2023, the closing date of the Sprint acquisition, Cogent and T-Mobile USA, Inc. ("TMUSA"), a Delaware corporation and direct subsidiary of T-Mobile US, Inc., a Delaware corporation ("T-Mobile"), entered into an agreement for IP transit services (the "IP Transit Services Agreement"), pursuant to which TMUSA will pay Cogent an aggregate of $700.0 million, consisting of (i) $350.0 million paid in equal monthly installments during the first year after the closing date of the Sprint acquisition and (ii) $350.0 million paid in equal monthly installments over the subsequent 42 months. Amounts paid under the IP Transit Services Agreement were $25.0 million, $25.0 million and $25.0 million in the three months ended September 30, 2024, June 30, 2025 and September 30, 2025, respectively. Earnings before interest, taxes, depreciation and amortization (EBITDA), was $48.8 million for the three months ended September 30, 2025, $48.5 million for the three months ended June 30, 2025 and $35.9 million for the three months ended September 30, 2024. EBITDA margin, was 20.2% for the three months ended September 30, 2025, 19.7% for the three months ended June 30, 2025 and 13.9% for the three months ended September 30, 2024.  Earnings before interest, taxes, depreciation and amortization (EBITDA), as adjusted, for Sprint acquisition costs and cash paid under the IP Transit Services Agreement, was $73.8 million for the three months ended September 30, 2025, $73.5 million for the three months ended June 30, 2025 and $60.9 million for the three months ended September 30, 2024. EBITDA margin, as adjusted for Sprint acquisition costs and cash paid under the IP Transit Services Agreement, was 30.5% for the three months ended September 30, 2025, 29.8% for the three months ended June 30, 2025 and 23.7% for the three months ended September 30, 2024.  Basic and diluted net loss per share was $(0.87) for the three months ended September 30, 2025, $(1.21) for the three months ended June 30, 2025 and was $(1.33) for the three months ended September 30, 2024.  Total customer connections decreased by 6.4% from September 30, 2024 to 118,279 as of September 30, 2025 and decreased by 0.4% from June 30, 2025.  On-net customer connections increased by 0.1% from September 30, 2024 to 87,767 as of September 30, 2025 and increased by 0.4% from June 30, 2025. Off-net customer connections decreased by 21.3% from September 30, 2024 to 25,518 as of September 30, 2025 and decreased by 2.7% from June 30, 2025. Wavelength customer connections increased by 68.1% from September 30, 2024 to 1,750 as of September 30, 2025 and increased by 19.1% from June 30, 2025. Non-core customer connections were 3,244 as of September 30, 2025, 3,615 as of June 30, 2025 and 5,217 as of September 30, 2024.  The number of on-net buildings increased by 113 from September 30, 2024 to 3,537 as of September 30, 2025 and increased by 8 from June 30, 2025. Optical Wave Network  Acquiring the Sprint network has also allowed Cogent to construct a wavelength network using predominantly owned fiber. This enabled Cogent to expand its product offerings to include optical wavelength services.  As of September 30, 2025, Cogent was offering optical wavelength services in 996 data centers in the United States, Mexico and Canada. Quarterly Dividend Approved On November 5, 2025, Cogent's Board approved a regular quarterly dividend of $0.02 per share payable on December 8, 2025 to shareholders of record on November 21, 2025.  The payment of any future dividends and any other returns of capital will be at the discretion of the Board and may be reduced, eliminated or increased and will be dependent upon Cogent's financial position, results of operations, available cash, cash flow, capital requirements, limitations under Cogent's debt indentures and other factors deemed relevant by the Board. Stock Buyback Program Cogent will be temporarily pausing its stock buyback program. Conference Call and Website Information Cogent will host a conference call with financial analysts at 8:30 a.m. (ET) on November 6, 2025 to discuss Cogent's operating results for the third quarter of 2025.  Investors and other interested parties may access a live audio webcast of the earnings call in the "Events" section of Cogent's website at www.cogentco.com/events. A replay of the webcast, together with the press release, will be available on the website following the earnings call.  A downloadable file of Cogent's "Summary of Financial and Operational Results" and a transcript of its conference call will also be available on Cogent's website following the conference call.  About Cogent Communications Cogent Communications (NASDAQ: CCOI) is a multinational, Tier 1 facilities-based ISP.  Cogent specializes in providing businesses with high-speed Internet access, Ethernet transport, optical wavelength, optical transport and colocation services. Cogent's facilities-based, all-optical IP network backbone provides services in 302 markets globally. Cogent Communications is headquartered at 2450 N Street, NW, Washington, D.C. 20037. For more information, visit www.cogentco.com. Cogent Communications can be reached in the United States at (202) 295-4200 or via email at [email protected]. COGENT COMMUNICATIONS HOLDINGS, INC., AND SUBSIDIARIESSummary of Financial and Operational Results Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Metric ($ in 000's, except share, per share, customer connections and network related data) – unaudited On-Net revenue (15) (17) $138,624 $140,757 $136,485 $128,760 $129,628 $132,331 $135,267  % Change from previous Qtr. 0.4 % 1.5 % -3.0 % -5.7 % 0.7 % 2.1 % 2.2 % Off-Net revenue $118,178 $111,451 $111,291 $113,190 $107,274 $102,177 $95,111  % Change from previous Qtr. -4.4 % -5.7 % -0.1 % 1.7 % -5.2 % -4.8 % -6.9 % Wavelength revenue (1) $3,327 $3,625 $5,287 $6,966 $7,119 $9,057 $10,179  % Change from previous Qtr. 7.0 % 9.0 % 45.8 % 31.8 % 2.2 % 27.2 % 12.4 % Non-Core revenue (2) $6,039 $4,610 $4,139 $3,375 $3,027 $2,682 $1,392  % Change from previous Qtr. -16.8 % -23.7 % -10.2 % -18.5 % -10.3 % -11.4 % -48.1 % Service revenue – total (15) (17) $266,168 $260,443 $257,202 $252,291 $247,048 $246,247 $241,949  % Change from previous Qtr. -2.2 % -2.2 % -1.2 % -1.9 % -2.1 % -0.3 % -1.7 % Constant currency total revenue quarterly growth rate – sequential quarters (3) (15) (17) -2.3 % -2.0 % -1.5 % -1.5 % -1.9 % -1.3 % -2.1 % Constant currency total revenue quarterly growth rate – year over year quarters (3) (15) (17) 73.1 % 8.8 % -6.7 % -7.1 % -6.7 % -6.0 % -6.6 % Constant currency and excise tax impact on total revenue quarterly growth rate – sequential quarters (3) (15) (17) -2.3 % -1.5 % -1.7 % -2.0 % -1.6 % -1.2 % -1.8 % Constant currency and excise tax impact on total revenue quarterly growth rate – year over year quarters (3) )15) (17) 62.4 % 5.4 % -8.6 % -7.3 % -6.6 % -6.3 % -6.4 % Excise Taxes included in service revenue (4) $20,549 $19,182 $19,752 $20,960 $20,200 $19,998 $19,166  % Change from previous Qtr. 0.6 % -6.7 % 3.0 % 6.1 % -3.6 % -1.0 % -4.2 % IPv4 Revenue, included in On-Net revenue (19) $10,151 $10,938 $11,236 $12,560 $14,413 $15,320 $17,475  % Change from previous Qtr. 2.8 % 7.8 % 2.7 % 11.8 % 14.8 % 6.3 % 14.1 % IPv4 Addresses Billed 12,213,414 12,813,955 12,943,590 13,033,248 12,879,749 13,187,109 14,600,974  % Change from previous Qtr. 6.8 % 4.9 % 1.0 % 0.7 % -1.2 % 2.4 % 10.7 % Corporate revenue (5) $124,864 $119,557 $116,244 $113,070 $110,686 $109,047 $105,201  % Change from previous Qtr. -1.4 % -4.3 % -2.8 % -2.7 % -2.1 % -1.5 % -3.5 % Net-centric revenue (5) (15) $91,979 $91,107 $91,873 $93,625 $92,615 $97,309 $100,288   % Change from previous Qtr. -1.3 % -0.9 % 0.8 % 1.9 % -1.1 % 5.1 % 3.1 % Enterprise revenue (5) (17) $49,325 $49,781 $49,085 $45,596 $43,747 $39,891 $36,460   % Change from previous Qtr. -5.7 % 0.9 % -1.4 % -7.1 % -4.1 % -8.8 % -8.6 % Network operations expenses (4) $168,548 $155,817 $161,083 $154,706 $136,949 $136,986 $131,107  % Change from previous Qtr. -3.2 % -7.6 % 3.4 % -4.0 % -11.5 % 0.0 % -4.3 % GAAP gross profit (6) $26,344 $30,240 $9,835 $29,836 $33,571 $33,465 $49,843  % Change from previous Qtr. -11.4 % 14.8 % -67.5 % 203.4 % 12.5 % -0.3 % 48.9 % GAAP gross margin (6) 9.9 % 11.6 % 3.8 % 11.8 % 13.6 % 13.6 % 20.6 % Non-GAAP gross profit (3) (7) $97,620 $104,626 $96,119 $97,585 $110,099 $109,261 $110,842  % Change from previous Qtr. -0.3 % 7.2 % -8.1 % 1.5 % 12.8 % -0.8 % 1.4 % Non-GAAP gross margin (3) (7) 36.7 % 40.2 % 37.4 % 38.7 % 44.6 % 44.4 % 45.8 % Selling, general and administrative expenses (8) $70,131 $65,130 $60,258 $55,732 $66,340 $60,766 $62,061  % Change from previous Qtr. -6.4 % -7.1 % -7.5 % -7.5 % 19.0 % -8.4 % 2.1 % Depreciation and amortization expense (18) $70,891 $74,036 $85,815 $67,272 $76,038 $75,290 $60,429  % Change from previous Qtr. 4.6 % 4.4 % 15.9 % -21.6 % 13.0 % -1.0 % -19.7 % Equity-based compensation expense $6,950 $3,565 $7,875 $7,348 $8,013 $4,664 $8,932  % Change from previous Qtr. 4.0 % -48.7 % 120.9 % -6.7 % 9.1 % -41.8 % 91.5 % Operating income (loss) $(59,389) $(47,143) $(57,829) $(32,767) $(40,292) $(31,459) $(18,128)  % Change from previous Qtr. -13.3 % -20.6 % 22.7 % -43.3 % 23.0 % -21.9 % -42.4 % Interest expense (9) $23,010 $38,840 $32,474 $45,371 $34,015 $48,688 $43,146  % Change from previous Qtr. -34.1 % 68.8 % -16.4 % 39.7 % -25.0 % 43.1 % -11.4 % Non-cash change in valuation – Swap Agreement (9) $6,152 $(9,299) $(5,597) $(7,632) $201 $(8,911) $223 Gain (reduction) -  gain on bargain purchase (10) $(5,470) $27,673 $- $- $- $- $- Net loss $(65,307) $(32,338) $(63,112) $(43,317) $(52,042) $(57,807) $(41,544) Basic net loss per common share $(1.38) $(0.68) $(1.33) $(0.91) $(1.09) $(1.21) $(0.87) Diluted net loss per common share $(1.38) $(0.68) $(1.33) $(0.91) $(1.09) $(1.21) $(0.87) Weighted average common shares – basic 47,416,268 47,511,613 47,426,131 47,540,833 47,676,735 47,592,836 47,603,287  % Change from previous Qtr. 0.1 % 0.2 % -0.2 % 0.2 % 0.3 % -0.2 % 0.0 % Weighted average common shares – diluted 47,416,268 47,511,613 47,426,131 47,540,833 47,676,735 47,592,836 47,603,287  % Change from previous Qtr. -1.3 % 0.2 % -0.2 % 0.2 % 0.3 % -0.2 % 0.0 % EBITDA (3) $18,452 $27,126 $35,861 $41,853 $43,759 $48,495 $48,781  % Change from previous Qtr. 207.0 % 47.0 % 32.2 % 16.7 % 4.6 % 10.8 % 0.6 % EBITDA margin (3) 6.9 % 10.4 % 13.9 % 16.6 % 17.7 % 19.7 % 20.2 % Sprint acquisition costs (14) $9,037 $12,370 $- $- $- $- $- Cash payments under IP Transit ServicesAgreement (11) $87,500 $66,667 $25,000 $25,000 $25,000 $25,000 $25,000 EBITDA, as adjusted for Sprint acquisition costs and cash payments under IP Transit Services Agreement (3) (11) (14) $114,989 $106,163 $60,861 $66,853 $68,759 $73,495 $73,781  % Change from previous Qtr. 4.1 % -7.7 % -42.7 % 9.8 % 2.9 % 6.9 % 0.4 % EBITDA, as adjusted for Sprint acquisition costs and cash payments under IP Transit Services Agreement, margin (3) (11) (14) 43.2 % 40.8 % 23.7 % 26.5 % 27.8 % 29.8 % 30.5 % Net cash provided by (used in) operating activities $19,219 $(22,171) $(20,226) $14,532 $36,351 $(44,039) $3,100   % Change from previous Qtr. 139.5 % -215.4 % 8.8 % 171.8 % 150.1 % -221.1 % 107.0 % Capital expenditures $40,883 $48,767 $59,244 $46,104 $58,088 $56,200 $36,250  % Change from previous Qtr. -6.3 % 19.3 % 21.5 % -22.2 % 26.0 % -3.3 % -35.5 % Principal payments of capital (finance) lease obligations $23,235 $133,472 $4,516 $27,979 $8,003 $8,520 $8,791  % Change from previous Qtr. 23.5 % 474.4 % -96.6 % 519.6 % -71.4 % 6.5 % 3.2 % Dividends paid (16) $478 $93,304 $47,210 $48,416 $49,133 $49,560 $49,066 Gross Leverage Ratio (3) (11) 3.57 4.06 4.94 5.72 6.69 8.65 8.24 Net Leverage Ratio (3) (11) 3.17 3.14 4.13 5.07 6.08 7.52 7.44 Gross Leverage Ratio, adjusted for amounts Due from T-Mobile (3) (20) 2.64 3.37 4.16 4.91 5.81 7.74 7.45 Net Leverage Ratio, adjusted for amounts Due fromT-Mobile (3) (20) 2.24 2.45 3.36 4.25 5.21 6.61 6.65 Gross Leverage Ratio under the Company's Indentures (3) 3.51 4.50 5.11 5.81 5.86 6.82 5.66 Secured Leverage Ratio under the Company's Indentures (3) 2.33 2.49 2.90 3.38 3.44 4.20 3.49 Interest Coverage Ratio under the Company's Indentures (3) 4.05 4.06 3.85 2.88 2.80 2.43 2.62 Customer Connections – end of period (15) On-Net customer connections 87,574 87,387 87,655 87,500 86,781 87,407 87,767  % Change from previous Qtr. -0.8 % -0.2 % 0.3 % -0.2 % -0.8 % 0.7 % 0.4 % Off-Net customer connections 34,579 32,758 32,420 28,963 27,508 26,239 25,518  % Change from previous Qtr. -5.7 % -5.3 % -1.0 % -10.7 % -5.0 % -4.6 % -2.7 % Wavelength customer connections (1) 693 754 1,041 1,118 1,322 1,469 1,750  % Change from previous Qtr. 4.8 % 8.8 % 38.1 % 7.4 % 18.2 % 11.1 % 19.1 % Non-Core customer connections (2) 10,037 7,883 5,217 5,802 5,120 3,615 3,244  % Change from previous Qtr. -16.2 % -21.5 % -33.8 % 11.2 % -11.8 % -29.4 % -10.3 % Total customer connections (15) 132,883 128,782 126,333 123,383 120,731 118,730 118,279  % Change from previous Qtr. -3.4 % -3.1 % -1.9 % -2.3 % -2.1 % -1.7 % -0.4 % Corporate customer connections (5) 51,821 48,690 47,613 46,371 45,295 44,307 43,391   % Change from previous Qtr. -4.9 % -6.0 % -2.2 % -2.6 % -2.3 % -2.2 % -2.1 % Net-centric customer connections (5) (15) 61,599 61,736 62,273 62,236 61,795 62,659 63,875  % Change from previous Qtr. -1.2 % 0.2 % 0.9 % -0.1 % -0.7 % 1.4 % 1.9 % Enterprise customer connections (5) (17) 19,463 18,356 16,447 14,776 13,641 11,764 11,013  % Change from previous Qtr. -6.2 % -5.7 % -10.4 % -10.2 % -7.7 % -13.8 % -6.4 % On-Net Buildings – end of period Multi-Tenant office buildings 1,861 1,864 1,870 1,871 1,867 1,871 1,869 Carrier neutral data center buildings 1,376 1,393 1,410 1,423 1,453 1,471 1,482 Cogent data centers 78 86 95 104 101 101 100 Cogent edge data centers 6 43 49 55 79 86 86 Total on-net buildings 3,321 3,386 3,424 3,453 3,500 3,529 3,537 Total carrier neutral data center nodes 1,586 1,602 1,627 1,646 1,668 1,675 1,686 Wave enabled data centers 295 516 657 808 883 938 996 Square feet – multi-tenant office buildings – on-net 1,009,702,653 1,011,171,523 1,015,544,543 1,015,861,483 1,015,459,520 1,017,918,826 1,017,433,216 Total Technical Buildings Owned (12) 482 482 482 482 482 482 482 Square feet – Technical Buildings Owned (12) 1,603,569 1,603,569 1,603,569 1,603,569 1,603,569 1,603,569 1,603,569 Network – end of period Intercity route miles – Leased 76,211 75,965 77,561 79,621 79,867 73,075 72,955 Metro route miles – Leased 25,977 27,373 28,510 29,802 30,788 31,297 31,388 Metro fiber miles – Leased 79,138 80,042 84,476 87,678 90,696 92,631 93,338 Intercity route miles – Owned 21,883 21,883 21,883 21,883 21,883 21,883 21,883 Metro route miles – Owned 1,704 1,704 1,704 1,704 1,704 1,704 1,704 Connected networks – AS's 8,098 8,135 8,212 8,250 8,240 8,085 8,043 Headcount – end of period (13) Sales force – quota bearing (13) 677 656 655 650 629 628 617 Sales force – total (13) 871 851 847 843 820 820 802 Total employees (13) 1,955 1,901 1,908 1,916 1,899 1,889 1,882 Sales rep productivity – units per full time equivalent sales rep ("FTE") per month 4.0 3.8 4.0 3.5 3.8 4.8 4.6 FTE – sales reps 627 632 620 622 605 588 592 (1) In connection with the acquisition of the Wireline Business, Cogent began to provide optical wavelength services and optical transport services over its fiber network.  (2) Consists of legacy services of companies whose assets or businesses were acquired by Cogent. (3) See Schedules of Non-GAAP measures below for definitions and reconciliations to GAAP measures. (4) Network operations expense excludes equity-based compensation expense of $385, $350, $469, $477, $490, $506 and $570 in the three-month periods ended March 31, 2024 through September 30, 2025 respectively.  Network operations expense includes excise taxes, including Universal Service Fund fees, of $20,549, $19,182, $19,752, $20,960, $20,200, $19,998 and $19,166 in the three-month periods ended March 31, 2024 through September 30, 2025, respectively.  (5) In connection with the acquisition of the Wireline Business, Cogent classified revenue and customer connections as follows: $12.9 million of the Wireline Business monthly recurring revenue and 17,823 customer connections as corporate revenue and corporate customer connections, respectively, $6.5 million of monthly recurring revenue and 5,711 customer connections as net-centric revenue and net-centric customer connections, respectively, and $20.1 million of monthly recurring revenue and 23,209 customer connections as enterprise revenue and enterprise customer connections, respectively. Conversely, Cogent reclassified $0.3 million of monthly recurring revenue and 387 customer connections of legacy Cogent monthly recurring revenue to enterprise revenue and enterprise customer connections, respectively. (6) GAAP gross profit is defined as total service revenue less network operations expense, depreciation and amortization and equity-based compensation included in network operations expense.  GAAP gross margin is defined as GAAP gross profit divided by total service revenue. (7) Non-GAAP gross profit represents service revenue less network operations expense, excluding equity-based compensation and amounts shown separately (depreciation and amortization expense). Non-GAAP gross margin is defined as non-GAAP gross profit divided by total service revenue.  Management believes that non-GAAP gross profit and non-GAAP gross margin are relevant measures to provide investors. Management uses them to measure the margin available to the company after network service costs, in essence a measure of the efficiency of the Company's network. (8) Excludes equity-based compensation expense of $6,565, $3,215, $7,406, $6,871, $7,523, $4,158 and $8,362 in the three-month periods ended March 31, 2024 through September 30, 2025, respectively and excludes $9,037 and $12,370 of Sprint acquisition costs for the three-month periods ended March 31, 2024 and June 30, 2024, respectively.  There were no Sprint acquisition costs for the three months ended September 30, 2024, December 31, 2024, March 31, 2025, June 30, 2025 or September 30, 2025.  (9) As of September 30, 2025, Cogent was party to an interest rate swap agreement (the "Swap Agreement") that has the economic effect of modifying the fixed interest rate obligation associated with its Senior Secured 2026 Notes to a variable interest rate obligation based on the Secured Overnight Financing Rate ("SOFR") so that the interest payable on the 2026 Notes effectively became variable based on overnight SOFR. Interest expense includes payments of $12,122, $12,081 and $9,769 for the three-month periods ended June 30, 2024, December 31, 2024 and June 30, 2025, respectively, related to the Swap Agreement. Under GAAP, changes in the valuation of the Swap Agreement are classified with interest expense in the condensed consolidated statements of comprehensive (loss) income. (10) The gain on bargain purchase from the Sprint acquisition was $1.4 billion as shown below. (In thousands) Gain on bargain purchase Fair value of net assets acquired $826,067 Total net consideration to be received from Seller, net of discounts 602,581 Gain on bargain purchase $1,428,648 (11) Includes cash payments under the IP Transit Services Agreement, as discussed above, of $87.5 million for the three months ended March 31, 2024, $66.7 million for the three months ended June 30, 2024, $25.0 million for the three months ended September 30, 2024, $25.0 million for the three months ended December 31, 2024, $25.0 million for the three months ended March 31, 2025, and $25.0 million for the three months ended June 30, 2025, and $25.0 million for the three months ended September 30, 2025. (12) In connection with the acquisition of the Wireline Business, Cogent acquired 482 technical buildings.  Cogent converted 52 of those buildings to Cogent Data Centers and 86 into Cogent Edge Data Centers. (13) In connection with the acquisition of the Wireline Business, Cogent hired 942 total employees, including 75 quota bearing sales employees and 114 sales employees. As of March 31, 2024, there were 718 employees remaining from the original Wireline Business employees. As of June 30, 2024, there were 655 employees remaining from the original Wireline Business employees. As of September 30, 2024, there were 635 employees remaining from the original Wireline Business employees. As of December 31, 2024, there were 624 employees remaining from the original Wireline Business employees. As of March 31, 2025, there were 618 employees remaining from the original Wireline Business employees. As of June 30, 2025, there were 603 employees remaining from the original Wireline Business employees. As of September 30, 2025, there were 588 employees remaining from the original Wireline Business employees. (14) In connection with the acquisition of the Wireline Business the Company incurred the following Sprint acquisition costs: $9.0 million in the three months ended March 31, 2024, and $12.4 million in the three months ended June 30, 2024. Included in Sprint acquisition costs were the following reimbursable severance costs: $4.3 million of reimbursable severance costs in the three months ended March 31, 2024, and $8.0 million of reimbursable severance costs in the three months ended June 30, 2024. (15) Net-centric revenue under the CSA (predominantly on-net revenue) was $3.2 million for the three months ended March 31, 2024, $5.9 million for the three months ended June 30, 2024, $4.1 million for the three months ended September 30, 2024, $1.5 million for the three months ended December 31, 2024, $0.7 million for the three months ended March 31, 2025, $1.1 million for the three months ended June 30, 2025, and $0.4 million for the three months ended September 30, 2025. Net-centric customer connections under the CSA were: 2,658 as of March 31, 2024, 2,117 as of June 30, 2024, 2,053 as of September 30, 2024, 1,776 as of December 31, 2024, 1,478 as of March 31, 2025, 1,595 as of June 30, 2025, and 1,666 as of September 30, 2025.  (16) The first quarter 2024 dividend totaling $45.8 million was declared on February 28, 2024, and paid on April 9, 2024. (17) Included in on-net revenue and enterprise revenue from May 2023 to July 2024 was $1.9 million of monthly revenue from an uneconomic resale customer acquired in connection with the Wireline Business.  The service was cancelled on July 31, 2024. (18) On July 1, 2024, Cogent changed its estimated useful life of its owned fiber from an average of 14 years to an average of 40 years. (19) Amounts previously reported and adjusted in our Q4 2024 earnings release were $10,201, $11,469 and $12,822 for the three-month periods March 31, 2024, June 30, 2024 and September 30, 2024, respectively. (20) Amounts Due from T-Mobile include 1) Due from T-Mobile, IP Transit Services Agreement, current portion, 1) Due from T-Mobile, IP Transit Services Agreement, long-term portion and 3) Due from T-Mobile, Purchase Agreement, all amounts net of their applicable discounts. These amounts totaled $383,981, $323,650, $304,497, $284,979, $265,090, $244,821 and $224,167 as of March 31, 2024 to September 30, 2025, respectively. NM  Not meaningful Schedules of Non-GAAP Measures  EBITDA, EBITDA, as adjusted for Sprint acquisition costs and cash payments made to the Company under the IP Transit Services Agreement, EBITDA margin and EBITDA, as adjusted for Sprint acquisition costs and cash payments made to the Company under the IP Transit Services Agreement, margin EBITDA represents net cash flows provided by operating activities plus changes in operating assets and liabilities, cash interest expense and cash income tax expense.  Management believes the most directly comparable measure to EBITDA calculated in accordance with generally accepted accounting principles in the United States, or GAAP, is net cash provided by operating activities. The Company also believes that EBITDA is a measure frequently used by securities analysts, investors, and other interested parties in their evaluation of issuers.  EBITDA, as adjusted for Sprint acquisition costs and cash payments under the IP Transit Services Agreement with T-Mobile, represents EBITDA plus costs related to the Company's acquisition of the Wireline Business and cash payments made to the Company under the IP Transit Agreement. EBITDA margin is defined as EBITDA divided by total service revenue. EBITDA, as adjusted for Sprint acquisition costs and cash payments made to the Company under the IP Transit Agreement margin is defined as EBITDA, as adjusted for Sprint acquisition costs and cash payments made to the Company under the IP Transit Agreement, divided by total service revenue. The Company believes that EBITDA, EBITDA, as adjusted for Sprint acquisition costs and cash payments made to the Company under the IP Transit Services Agreement, EBITDA margin and EBITDA as adjusted for Sprint acquisition costs and cash payments made to the Company under the IP Transit Services Agreement margin are useful measures of its ability to service debt, fund capital expenditures, pay dividends and expand its business.  The company believes its EBITDA, as adjusted for Sprint acquisition costs and cash payments made to the Company under the IP Transit Services Agreement, is a useful measure because it includes recurring cash flows stemming from the IP Transit Services Agreement that are of the same type as contracted payments under commercial contracts.  The measurements are an integral part of the internal reporting and planning system used by management as a supplement to GAAP financial information. EBITDA, EBITDA, as adjusted for Sprint acquisition costs and cash payments made to the Company under the IP Transit Agreement, EBITDA margin and EBITDA as adjusted for Sprint acquisition costs and cash payments made to the Company under the IP Transit Agreement margin are not recognized terms under GAAP and accordingly, should not be viewed in isolation or as a substitute for the analysis of results as reported under GAAP, but rather as a supplemental measure to GAAP. For example, these measures are not intended to reflect the Company's free cash flow, as they do not consider certain current or future cash requirements, such as capital expenditures, contractual commitments, and changes in working capital needs, interest expenses and debt service requirements. The Company's calculations of these measures may also differ from the calculations performed by its competitors and other companies and as such, their utility as a comparative measure is limited. EBITDA, and EBITDA, as adjusted for Sprint acquisition costs and cash payments made to the Company under the IP Transit Services Agreement, are reconciled to net cash provided by operating activities in the table below. Q12024 Q22024 Q32024 Q42024 Q12025 Q22025 Q32025 ($ in 000's) – unaudited Net cash provided by (used in) operating activities $19,219 $(22,171) $(20,226) $14,532 $36,351 $(44,039) $3,100 Changes in operating assets and liabilities $(34,640) $11,077 $22,868 $27,892 $(26,614) $42,244 $8,941 Cash interest expense and income tax expense 33,873 38,220 33,219 (571) 34,022 50,290 36,740 EBITDA $18,452 $27,126 $35,861 $41,853 $43,759 $48,495 $48,781 PLUS: Sprint acquisition costs $9,037 $12,370 $- $- $- $- $- PLUS: Cash payments made to the Company under IP Transit Services Agreement 87,500 66,667 25,000 25,000 25,000 25,000 25,000 EBITDA, as adjusted for Sprint acquisition costs and cash payments made to the Company under IP Transit Services Agreement $114,989 $106,163 $60,861 $66,853 $68,759 $73,495 $73,781 EBITDA margin 6.9 % 10.4 % 13.9 % 16.6 % 17.7 % 19.7 % 20.2 % EBITDA, as adjusted for Sprint acquisition costs and cash payments made to theCompany under IP Transit Services Agreement, margin 43.2 % 40.8 % 23.7 % 26.5 % 27.8 % 29.8 % 30.5 % Constant currency revenue is reconciled to service revenue as reported in the tables below. Constant currency impact on revenue changes – sequential periods ($ in 000's) – unaudited Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Service revenue, as reported – current period $266,168 $260,443 $257,202 $252,291 $247,048 $246,247 $241,949 Impact of foreign currencies on service revenue (304) 323 (620) 1,022 542 (2,419) (938) Service revenue - as adjusted for currency impact (1) $265,864 $260,766 $256,582 $253,313 $247,590 $243,828 $241,011 Service revenue, as reported – prior sequential period $272,099 $266,168 $260,443 $257,202 $252,291 $247,048 $246,247 Constant currency revenue increase (decrease) $(6,235) $(5,402) $(3,861) $(3,889) $(4,701) $(3,220) $(5,236) Constant currency revenue percent increase (decrease) -2.3 % -2.0 % -1.5 % -1.5 % -1.9 % -1.3 % -2.1 % (1) Service revenue, as adjusted for currency impact, is determined by translating the service revenue for the current period at the average foreign currency exchange rates for the prior sequential period. The Company believes that disclosing quarterly sequential revenue growth without the impact of foreign currencies on service revenue is a useful measure of sequential revenue growth. Service revenue, as adjusted for currency impact, is an integral part of the internal reporting and planning system used by management as a supplement to GAAP financial information. Constant currency impact on revenue changes – prior year periods ($ in 000's) – unaudited Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Service revenue, as reported – current period $266,168 $260,443 $257,202 $252,291 $247,048 $246,247 $241,949 Impact of foreign currencies on service revenue (362) 420 (213) 405 1,258 (1,507) (1,806) Service revenue - as adjusted for currency impact (2) $265,806 $260,863 $256,989 $252,696 $248,306 $244,740 $240,143 Service revenue, as reported – prior year period $153,588 $239,806 $275,429 $272,099 $266,168 $260,443 $257,202 Constant currency revenue increase $112,218 $21,057 $(18,440) $(19,403) $(17,862) $(15,703) $(17,059) Constant currency percent revenue increase 73.1 % 8.8 % -6.7 % -7.1 % -6.7 % -6.0 % -6.6 % (2) Service revenue, as adjusted for currency impact, is determined by translating the service revenue for the current period at the average foreign currency exchange rates for the comparable prior year period. The Company believes that disclosing year over year revenue growth without the impact of foreign currencies on service revenue is a useful measure of revenue growth. Service revenue, as adjusted for currency impact, is an integral part of the internal reporting and planning system used by management as a supplement to GAAP financial information. Revenue on a constant currency basis and adjusted for the impact of excise taxes is reconciled to service revenue as reported in the tables below. Constant currency and excise tax impact on revenue changes – sequential periods ($ in 000's) – unaudited Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Service revenue, as reported – current period $266,168 $260,443 $257,202 $252,291 $247,048 $246,247 $241,949 Impact of foreign currencies on service revenue (304) 323 (620) 1,022 542 (2,419) (938) Impact of excise taxes on service revenue (121) 1,367 (570) (1,208) 760 202 832 Service revenue - as adjusted for currency and excise taxes impact (3) $265,743 $262,133 $256,012 $252,105 $248,350 $244,030 $241,843 Service revenue, as reported – prior sequential period $272,099 $266,168 $260,443 $257,202 $252,291 $247,048 $246,247 Constant currency and excise taxes revenue increase (decrease) $(6,356) $(4,035) $(4,431) $(5,097) $(3,941) $(3,018) $(4,404) Constant currency and excise tax revenue percent increase (decrease) -2.3 % -1.5 % -1.7 % -2.0 % -1.6 % -1.2 % -1.8 % (3) Service revenue, as adjusted for currency impact and the impact of excise taxes, is determined by translating the service revenue for the current period at the average foreign currency exchange rates for the prior sequential period and adjusting for the changes in excise taxes recorded as revenue between the periods presented. The Company believes that disclosing quarterly sequential revenue growth without the impact of foreign currencies and excise taxes on service revenue is a useful measure of sequential revenue growth. Service revenue, as adjusted for the impact of foreign currency and excise taxes, is an integral part of the internal reporting and planning system used by management as a supplement to GAAP financial information. Constant currency and excise tax impact on revenue changes – prior year periods ($ in 000's) – unaudited Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Service revenue, as reported – current period $266,168 $260,443 $257,202 $252,291 $247,048 $246,247 $241,949 Impact of foreign currencies on service revenue (362) 420 (213) 405 1,258 (1,507) (1,806) Impact of excise taxes on service revenue (16,356) (8,142) (5,195) (532) 349 (816) 586 Service revenue - as adjusted for currency and excise taxes impact (4) $249,450 $252,721 $251,794 $252,164 $248,655 $243,924 $240,729 Service revenue, as reported – prior year period $153,588 $239,806 $275,429 $272,099 $266,168 $260,443 $257,202 Constant currency and excise taxes revenue increase $95,862 $12,915 $(23,635) $(19,935) $(17,513) $(16,519) $(16,473) Constant currency and excise tax percent revenue increase 62.4 % 5.4 % -8.6 % -7.3 % -6.6 % -6.3 % -6.4 % (4) Service revenue, as adjusted for currency impact and the impact of excise taxes, is determined by translating the service revenue for the current period at the average foreign currency exchange rates for the prior year period and adjusting for the changes in excise taxes recorded as revenue between the periods presented. The Company believes that disclosing quarterly sequential revenue growth without the impact of foreign currencies and excise taxes on service revenue is a useful measure of sequential revenue growth. Service revenue, as adjusted for the impact of foreign currency and excise taxes, is an integral part of the internal reporting and planning system used by management as a supplement to GAAP financial information. Non-GAAP gross profit and non-GAAP gross margin Non-GAAP gross profit and non-GAAP gross margin are reconciled to GAAP gross profit and GAAP gross margin in the table below. Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 ($ in 000's) – unaudited Service revenue total $266,168 $260,443 $257,202 $252,291 $247,048 $246,247 $241,949 Minus - Network operations expense including equity-based compensation and depreciation and amortization expense 239,824 230,203 247,367 222,455 213,477 212,782 192,106 GAAP Gross Profit (5) $26,344 $30,240 $9,835 $29,836 $33,571 $33,465 $49,843 Plus - Equity-based compensation – network operations expense 385 350 469 477 490 506 570 Plus – Depreciation and amortization expense $70,891 $74,036 $85,815 $67,272 $76,038 $75,290 $60,429 Non-GAAP Gross Profit (6) $97,620 $104,626 $96,119 $97,585 $110,099 $109,261 $110,842 GAAP Gross Margin (5) 9.9 % 11.6 % 3.8 % 11.8 % 13.6 % 13.6 % 20.6 % Non-GAAP Gross Margin (6) 36.7 % 40.2 % 37.4 % 38.7 % 44.6 % 44.4 % 45.8 % (5) GAAP gross profit is defined as total service revenue less network operations expense, depreciation and amortization and equity-based compensation included in network operations expense.  GAAP gross margin is defined as GAAP gross profit divided by total service revenue. (6) Non-GAAP gross profit represents service revenue less network operations expense, excluding equity-based compensation and amounts shown separately (depreciation and amortization expense). Non-GAAP gross margin is defined as non-GAAP gross profit divided by total service revenue.  Management believes that non-GAAP gross profit and non-GAAP gross margin are relevant measures for investors, as they are metrics that management uses to measure the margin and amount available to the Company after network service costs, in essence, these are measures of the efficiency of the Company's network. Gross and Net Leverage Ratios Gross leverage ratio is defined as total debt divided by the trailing 12 months EBITDA, as adjusted for Sprint acquisition costs and cash payments under the IP Transit Services Agreement.  Net leverage ratio is defined as total net debt (total debt minus cash and cash equivalents) divided by the last 12 months EBITDA, as adjusted for Sprint acquisition costs and cash payments under the IP Transit Services Agreement.  Gross leverage, adjusted for amounts Due from T-Mobile, is defined as total debt minus amounts due from T-Mobile divided by the last 12 months EBITDA, as adjusted for Sprint acquisition costs and cash payments under the IP Transit Services Agreement.  Net leverage, adjusted for amounts Due from T-Mobile, is defined as total net debt (total debt minus cash and cash equivalents) minus amounts due from T-Mobile divided by the last 12 months EBITDA, as adjusted for Sprint acquisition costs and cash payments under the IP Transit Services Agreement.  Cogent's gross leverage ratios and net leverage ratios are shown below. ($ in 000's) – unaudited As of March 31,2024 As of June 30,2024 As of September 30,2024 As of December 31,2024 As of March 31,2025 As of June 30,2025 As of September 30,2025 Cash and cash equivalents & restricted cash $163,274 $426,241 $316,092 $227,916 $183,970 $306,725 $226,294 Debt Capital (finance) leases – current portion 64,043 21,253 21,939 21,225 24,685 26,523 24,990 Capital (finance) leases – long term 453,473 405,176 460,632 517,161 543,852 578,634 576,851 Senior Secured 2032 Notes 600,000 600,000 Senior Secured 2026 Notes 500,000 500,000 500,000 500,000 500,000 Secured IPv4 Notes 206,000 206,000 206,000 206,000 380,400 380,400 Senior Unsecured 2027 Notes 450,000 750,000 750,000 750,000 750,000 750,000 750,000 Total debt 1,467,516 1,882,429 1,938,571 1,994,386 2,024,537 2,335,557 2,332,241 Total net debt 1,304,242 1,456,188 1,622,479 1,766,470 1,840,567 2,028,832 2,105,947 Trailing 12 months EBITDA, as adjusted for Sprintacquisition costs and cash payments from the IP Transit Services Agreement 411,001 463,102 392,525 348,392 302,636 269,968 282,888 Gross leverage ratio 3.57 4.06 4.94 5.72 6.69 8.65 8.24 Net leverage ratio 3.17 3.14 4.13 5.07 6.08 7.52 7.44 Total amounts Due from T-Mobile $383,981 $323,650 $304,497 $284,979 $265,090 $244,821 $224,167 Total debt, adjusted for amounts Due from T-Mobile 1,083,535 1,558,779 1,634,074 1,709,407 1,759,447 2,090,736 2,108,074 Total net debt, adjusted for amounts Due from T-Mobile 920,261 1,132,538 1,317,982 1,481,491 1,575,447 1,784,011 1,881,780 Gross leverage ratio, adjusted for amounts Due from T-Mobile 2.64 3.37 4.16 4.91 5.81 7.74 7.45 Net leverage ratio, adjusted for amounts Due from T-Mobile 2.24 2.45 3.36 4.25 5.21 6.61 6.65 Ratios under the Company's indentures Consolidated Leverage Ratio is defined in the Company's Indentures as total debt divided by Consolidated Cash Flow (as defined in the Company's Indentures) for the most recently completed period of four consecutive fiscal quarters of the Company (the "Reference Period"), subject to certain adjustments provided for in the Company's Indentures. Secured Leverage Ratio is defined in the Company's Indentures as total secured debt divided by Consolidated Cash Flow for the Reference Period, subject to certain adjustments provided for in the Company's Indentures. Net leverage ratio is presented as total net debt (total debt minus cash and cash equivalents) divided by the last 12 months Consolidated Cash Flow. Net leverage ratio is not a defined term in the Company's Indentures.  Fixed Charge Coverage Ratio is defined in the Company's Indentures as Consolidated Cash Flow for the Reference Period divided by Fixed Charges (as defined in the Company's Indentures) for the Reference Period, which largely consist of interest expense, subject to certain adjustments provided for in the Company's Indentures. Cogent's ratios are shown in the table below. ($ in 000's) – unaudited As of March 31,2024 As of June 30,2024 As of September 30,2024 As of December 31,2024 As of March 31,2025 As of June 30, 2025 (2) As of September 30,2025 (2) Cash and cash equivalents & restricted cash 139,342 372,123 266,822 205,464 $165,676 $195,165 $136,513 Debt Capital (finance) leases – current portion 21,657 21,253 21,939 21,225 24,685 26,523 24,990 Capital (finance) leases – long term 371,116 405,176 460,632 517,161 543,852 578,634 576,851 Letters of credit 123 123 126 121 124 130 130 Senior Secured 2026 Notes 500,000 500,000 500,000 500,000 500,000 Senior Secured 2032 Notes 600,000 600,000 Senior Unsecured 2027 Notes 450,000 750,000 750,000 750,000 750,000 750,000 750,000 Total debt 1,342,896 1,676,552 1,732,697 1,788,507 1,818,661 1,955,287 1,951,971 Total net debt 1,203,554 1,304,429 1,465,875 1,583,043 1,652,985 1,760,122 1,815,458 Total secured debt 892,896 926,552 982,697 1,038,507 1,068,661 1,205,287 1,201,971 Consolidated  Cash Flow (2) 382,850 372,621 338,892 307,655 310,345 286,881 344,739 Consolidated  Leverage Ratio for theReference Period 3.51 4.50 5.11 5.81 5.86 6.82 5.66 Net leverage ratio (1) 3.14 3.50 4.33 5.15 5.33 6.14 5.27 Secured Leverage Ratio for theReference Period (2) 2.33 2.49 2.90 3.38 2.58 4.20 3.49 Fixed Charges for the Reference Period (2) 94,614 91,723 88,057 106,877 110,704 118,290 131,696 Fixed Charge Coverage Ratio for the Reference Period (2) 4.05 4.06 3.85 2.88 2.80 2.43 2.62 (1) Net leverage ratio is not a defined term under the Company's Indentures. (2) Consolidated Cash Flow as defined in the Company's $600.0 million Secured 2032 Notes issued in June 2025, includes cash payments under the IP Transit Services Agreement with TMUSA.  Cash payments under the IP Transit Services Agreement with TMUSA for the for the most recently completed period of four consecutive fiscal quarters of the Company were $100.0 million. Ratios under the Company's $600 million 2032 Secured Notes Q2-2025 Q3-2025 Consolidated Cash Flow under the Indentures 286,881 344,739 PLUS: Cash Payments under IP Transit Services Agreement with TMUSA 100,000 100,000 Consolidated Cash Flow - $600.0 million Secured 2032 Notes 386,881 444,739 Consolidated Leverage Ratio for the Reference Period - $600.0 million Secured 2032 Notes 5.05 4.39 Net leverage ratio - $600.0 million Secured 2032 Notes (1) 4.55 4.08 Secured Leverage Ratio for the Reference Period - $600.0 million 2032 Notes 3.12 2.70 Fixed Charges for the Reference Period 118,290 131,696 Fixed Charge Coverage Ratio for the Reference Period - $600.0 million 2032 Notes 3.27 3.38 Cogent's SEC filings are available online via the Investor Relations section of www.cogentco.com or on the Securities and Exchange Commission's website at www.sec.gov. COGENT COMMUNICATIONS HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2025 AND DECEMBER 31, 2024 (IN THOUSANDS, EXCEPT SHARE DATA) September 30, 2025 December 31, 2024 (Unaudited) Assets Current assets: Cash and cash equivalents $ 147,088 $ 198,486 Restricted cash 79,206 29,430 Accounts receivable, net of allowance for credit losses of $6,406 and $9,762, respectively 95,853 96,934 Due from T-Mobile, IP Transit Services Agreement, current portion, net of discount of $12,076 and $16,915, respectively 87,924 83,085 Due from T-Mobile, Transition Services Agreement 231 62 Prepaid expenses and other current assets 69,467 74,104 Total current assets 479,769 482,101 Property and equipment: Property and equipment 3,584,540 3,319,731 Accumulated depreciation and amortization (1,871,828) (1,655,564) Total property and equipment, net 1,712,712 1,664,167 Right-of-use leased assets 318,701 324,315 IPv4 intangible asset 458,000 458,000 Other intangible assets, net 11,699 13,029 Deposits and other assets 31,147 29,596 Due from T-Mobile, IP Transit Services Agreement, net of discount of $4,083 and $12,312, respectively 112,584 179,534 Due from T-Mobile, Purchase Agreement, net of discount of $4,455 and $5,755, respectively 23,659 22,360 Total assets $ 3,148,271 $ 3,173,102 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 28,390 $ 39,805 Accrued and other current liabilities 129,021 134,609 Due to T-Mobile – Transition Services Agreement 18 525 Current maturities, operating lease liabilities 55,127 57,172 Finance lease obligations, current maturities 24,990 21,225 Total current liabilities 237,546 253,336 Senior secured 2026 notes, net of unamortized debt costs of $375 and discount of $499 — 499,126 Senior unsecured 2027 notes, net of unamortized debt costs of $1,436 and $2,013, respectively, and discounts of $5,041 and $7,053, respectively 743,523 740,934 Secured IPv4 notes, net of unamortized debt costs of $9,377 and $6,702, respectively 371,023 199,298 Senior secured 2032 notes, net of unamortized debt costs of $2,082 597,918 — Operating lease liabilities, net of current maturities 278,761 302,004 Finance lease obligations, net of current maturities 576,851 517,161 Deferred income tax liabilities 351,544 398,266 Other long-term liabilities 30,275 40,129 Total liabilities 3,187,441 2,950,254 Commitments and contingencies: Stockholders' (deficit) equity: Common stock, $0.001 par value; 75,000,000 shares authorized; 49,121,159 and 49,034,925 shares issued and outstanding, respectively 49 49 Additional paid-in capital 637,710 629,829 Accumulated other comprehensive loss (1,432) (30,685) Accumulated deficit (675,497) (376,345) Total stockholders' (deficit) equity (39,170) 222,848 Total liabilities and stockholders' (deficit) equity $ 3,148,271 $ 3,173,102 COGENT COMMUNICATIONS HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2025 AND SEPTEMBER 30, 2024 (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) Three Months Ended September 30, 2025 Three Months Ended September 30, 2024 (Unaudited) (Unaudited) Service revenue $ 241,949 $ 257,202 Operating expenses: Network operations (including $570 and $469 of equity-based compensation expense, respectively,  exclusive of depreciation and amortization shown separately below) 131,677 161,552 Selling, general, and administrative (including $8,362 and $7,406 of equity-based compensation expense, respectively) 70,423 67,664 Depreciation and amortization 60,429 85,815 Total operating expenses 262,529 315,031 Gains on lease terminations and other 2,452 — Operating loss (18,128) (57,829) Interest expense, including change in valuation interest rate swap agreement (43,369) (26,877) Interest income – IP Transit Services Agreement 3,904 5,438 Interest income – Purchase Agreement 441 409 Interest income (expense) and other, net 4,557 (1,153) Loss before income taxes (52,595) (80,012) Income tax benefit 11,051 16,900 Net loss $ (41,544) $ (63,112) Comprehensive loss: Net loss $ (41,544) $ (63,112) Foreign currency translation adjustment (236) 8,847 Comprehensive loss $ (41,780) $ (54,265) Net loss per common share: Basic net loss per common share $ (0.87) $ (1.33) Diluted net loss per common share $ (0.87) $ (1.33) Dividends declared per common share $ 1.015 $ 0.985 Weighted-average common shares - basic 47,603,287 47,426,131 Weighted-average common shares - diluted 47,603,287 47,426,131 COGENT COMMUNICATIONS HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND SEPTEMBER 30, 2024 (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) Nine months Ended September 30, 2025 Nine months Ended September 30, 2024 (Unaudited) (Unaudited) Service revenue $ 735,242 $ 783,813 Operating expenses: Network operations (including $1,566 and $1,204 of equity-based compensation expense, respectively, exclusive of depreciation and amortization shown separately below) 406,608 486,657 Selling, general, and administrative (including $20,043 and $17,186 of equity-based compensation expense, respectively) 209,209 212,706 Acquisition costs – Sprint — 21,407 Depreciation and amortization 211,756 230,747 Total operating expenses 827,573 951,517 Gains on lease terminations and other 2,452 3,332 Operating loss (89,879) (164,372) Interest expense, including change in valuation interest rate swap agreement (117,317) (85,575) Loss on debt extinguishment and redemption – 2026 notes (5,606) — Gain on bargain purchase – Sprint — 22,202 Interest income – IP Transit Services Agreement 12,888 18,702 Interest income – Purchase Agreement 1,299 331 Interest income and other, net 1,233 4,074 Loss before income taxes (197,382) (204,638) Income tax benefit 45,989 43,881 Net loss $ (151,393) $ (160,757) Comprehensive loss: Net loss $ (151,393) $ (160,757) Foreign currency translation adjustment 29,253 2,091 Comprehensive loss $ (122,140) $ (158,666) Net loss per common share: Basic net loss per common share $ (3.17) $ (3.39) Diluted net loss per common share $ (3.17) $ (3.39) Dividends declared per common share $ 3.030 $ 2.925 Weighted-average common shares - basic 47,827,343 47,453,906 Weighted-average common shares - diluted 47,827,343 47,453,906 COGENT COMMUNICATIONS HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2025 AND SEPTEMBER 30, 2024 (IN THOUSANDS) Three months Ended September 30, 2025 Three months Ended September 30, 2024 (Unaudited) (Unaudited) Cash flows from operating activities: Net loss $ (41,544) $ (63,112) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 60,429 85,815 Amortization of debt costs and discounts 1,718 1,260 Amortization of discounts, due from T-Mobile, IP Transit Services & Purchase Agreements (4,345) (5,847) Equity-based compensation expense (net of amounts capitalized) 8,932 7,874 Gains on finance lease terminations and other (2,452) — Deferred income taxes (10,920) (23,348) Changes in operating assets and liabilities: Accounts receivable (726) 12,111 Prepaid expenses and other current assets 3,007 (16,849) Due to T-Mobile – Transition Services Agreement 9 16,185 Due from T-Mobile – Transition Services Agreement (112) (716) Accounts payable, accrued liabilities and other long-term liabilities (9,386) (29,913) Deposits and other assets (1,510) (3,686) Net cash provided by (used in) operating activities 3,100 (20,226) Cash flows from investing activities: Cash receipts - IP Transit Services Agreement – T-Mobile 25,000 25,000 Purchases of property and equipment (36,250) (59,244) Net cash used in investing activities (11,250) (34,244) Cash flows from financing activities: Dividends paid (49,066) (47,210) Purchases of common stock (5,169) — Proceeds from exercises of stock options 25 748 Principal payments of finance lease obligations (8,791) (4,516) Net cash used in financing activities (63,001) (50,978) Effect of exchange rates changes on cash (9,280) (4,701) Net decrease in cash, cash equivalents and restricted cash (80,431) (110,149) Cash, cash equivalents and restricted cash, beginning of period 306,725 426,241 Cash, cash equivalents and restricted cash, end of period $ 226,294 $ 316,092 COGENT COMMUNICATIONS HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND SEPTEMBER 30, 2024 (IN THOUSANDS) Nine months Ended September 30, 2025 Nine months Ended September 30, 2024 (Unaudited) (Unaudited) Cash flows from operating activities: Net loss $ (151,393) $ (160,757) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 211,756 230,747 Amortization of debt costs and discounts 4,252 2,364 Amortization of discounts, due from T-Mobile, IP Transit Services & Purchase Agreements (14,187) (19,033) Equity-based compensation expense (net of amounts capitalized) 21,609 18,390 Loss on debt extinguishment and redemption – 2026 notes 5,606 — Gain on bargain purchase – Sprint — (22,202) Gains on finance lease terminations and other (2,452) (3,332) Deferred income taxes (46,722) (66,902) Changes in operating assets and liabilities: Accounts receivable 1,081 35,910 Prepaid expenses and other current assets (3,215) (3,949) Due to T-Mobile – Transition Services Agreement (169) (65,338) Due from T-Mobile – Transition Services Agreement (507) 4,514 Accounts payable, accrued liabilities and other long-term liabilities (27,170) 32,785 Deposits and other assets (3,076) (6,374) Net cash used in operating activities (4,587) (23,177) Cash flows from investing activities: Cash receipts - IP Transit Services Agreement – T-Mobile 75,000 179,167 Acquisition of Sprint – severance reimbursement — 12,323 Purchases of property and equipment (150,538) (148,894) Net cash (used in) provided by investing activities (75,538) 42,596 Cash flows from financing activities: Dividends paid (147,759) (140,992) Purchases of common stock (16,686) (7,968) Net proceeds from issuance of senior unsecured 2027 notes - net of discount of $6.8 million and debt  costs of $1.4 million — 291,879 Net proceeds from issuance of secured IPv4 notes – net of debt costs of $4.0 million and $7.6 million,  respectively 170,479 198,426 Net proceeds from issuance of senior secured 2032 notes - net of debt costs of $2.2 million 597,842 — Debt extinguishment and redemption – 2026 notes (505,000) — Proceeds from exercises of stock options 175 952 Settlement of finance lease – at a discount — (114,576) Principal payments of finance lease obligations (25,314) (46,653) Net cash provided by financing activities 73,737 181,068 Effect of exchange rates changes on cash 4,766 1,824 Net (decrease) increase in cash, cash equivalents and restricted cash (1,622) 202,311 Cash, cash equivalents and restricted cash, beginning of period 227,916 113,781 Cash, cash equivalents and restricted cash, end of period $ 226,294 $ 316,092 Except for historical information and discussion contained herein, statements contained in this release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to statements identified by words such as "believes," "expects," "anticipates," "estimates," "intends," "plans," "targets," "projects" and similar expressions.  The statements in this release are based upon the current beliefs and expectations of Cogent's management and are subject to significant risks and uncertainties.  Actual results may differ from those set forth in the forward-looking statements.  Numerous factors could cause or contribute to such differences, including the impact of our acquisition of the Wireline Business, including our difficulties integrating our business with the acquired Wireline Business, which may result in the combined company not operating as effectively or efficiently as expected; transition services required to support the acquired Wireline Business and the related costs continuing for a longer period than expected; transition related costs associated with the acquisition; the COVID-19 pandemic and the related government policies; future economic instability in the global economy, including the risk of economic recession, recent bank failures and liquidity concerns at certain other banks or a contraction of the capital markets, which could affect spending on Internet services and our ability to engage in financing activities; the impact of changing foreign exchange rates (in particular the Euro to USD and Canadian dollar to USD exchange rates) on the translation of our non-USD denominated revenues, expenses, assets and liabilities; legal and operational difficulties in new markets; the imposition of a requirement that we contribute to the US Universal Service Fund on the basis of our Internet revenue; changes in government policy and/or regulation, including net neutrality rules  by the United States Federal Communications Commission and in the area of data protection; cyber-attacks or security breaches of our network; increasing competition leading to lower prices for our services; our ability to attract new customers and to increase and maintain the volume of traffic on our network; the ability to maintain our Internet peering arrangements and right-of-way agreements on favorable terms; our reliance on a few equipment vendors, and the potential for hardware or software problems associated with such equipment; the dependence of our network on the quality and dependability of third-party fiber and right-of-way providers; our ability to retain certain customers that comprise a significant portion of our revenue base; the management of network failures and/or disruptions; our ability to make payments on our indebtedness as they become due and outcomes in litigation, risks associated with variable interest rates under our interest rate swap agreement, and outcomes in litigation as well as other risks discussed from time to time in our filings with the Securities and Exchange Commission, including, without limitation, our Annual Report on Form 10-K for the year December 31, 2024 and our Form 10-Q for the quarterly periods ended June 30, 2024, September 30, 2024, March 31, 2025, June 30, 2025 and September 30, 2025.  Cogent undertakes no duty to update any forward-looking statement or any information contained in this press release or in other public disclosures at any time. SOURCE Cogent Communications Holdings, Inc.

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