Cogent Q4 Service Revenue Falls 4.7% While Wavelength Revenue Doubles
Cogent reported Q4 2025 service revenue of $240.5 million, down 0.6% sequentially and 4.7% year-over-year, while full-year revenue dropped to $975.8 million from $1.036 billion in 2024. Wavelength revenue surged 18.8% sequentially to $12.1 million and doubled to $38.5 million for the year, lifting adjusted EBITDA to $76.7 million.
1. Fourth Quarter and Full Year Revenue
Cogent reported service revenue of $240.5 million in Q4 2025, down 0.6% from Q3 and 4.7% from Q4 2024, with full-year 2025 revenue decreasing 5.8% to $975.8 million from $1.036 billion. On-net revenue fell 0.7% sequentially to $134.3 million, while off-net revenue declined 17.9% year-over-year to $92.9 million.
2. Profitability Trends
Adjusted EBITDA for Q4 rose 4.0% sequentially to $76.7 million and increased 14.8% year-over-year, boosting the EBITDA margin to 31.9% from 30.5% in Q3 2025 and 26.5% in Q4 2024. GAAP gross profit climbed 7.8% sequentially to $53.7 million, driving full-year gross profit up 77.3% to $170.6 million.
3. Wavelength Segment Performance
Wavelength revenue jumped 18.8% sequentially to $12.1 million and 73.7% year-over-year, reaching $38.5 million for 2025—a 100.3% increase—backed by a 17.9% sequential rise in connections to 2,064 and an 84.6% gain year-over-year.
4. Cash Flow, Dividend and Options Activity
Operating cash flow turned negative at $(6.0) million in Q4 and $(10.6) million for the full year, while Cogent approved a $0.02 quarterly dividend for Q1 2026 after paying $150.1 million in 2025. Call option volume spiked to 66,622 contracts—a 6,288% jump—coinciding with a 4.9% drop in the share price.