Cogent Communications ( (CCOI) ) has released its Q1 earnings. Here is a breakdown of the information Cogent Communications presented to its investors.
Cogent Communications, a multinational Tier 1 facilities-based Internet Service Provider, specializes in high-speed internet access, Ethernet transport, optical wavelength, and colocation services across 292 global markets. In its latest earnings report, Cogent Communications reported a service revenue of $247 million for the first quarter of 2025, marking a decrease from the previous quarter and year-over-year figures. Despite the decline in service revenue, the company saw a significant increase in wavelength revenue and adjusted EBITDA, reflecting strategic growth in specific segments. The company also announced an increase in its quarterly dividend, continuing its long-standing trend of dividend growth. Key financial highlights include a 4.6% increase in EBITDA to $43.8 million and a notable rise in gross margin to 44.6%. The company also completed the issuance of $174.4 million in IPv4 Securitized Notes and repurchased shares worth $5 million. Looking forward, Cogent Communications remains focused on expanding its optical wavelength services and maintaining its dividend growth strategy, as indicated by the management’s outlook.