Cogent Communications is sharpening its product technique round high-capacity transport and IP transit providers, with its newest quarterly outcomes reflecting each the challenges of legacy income contraction and the momentum in newer choices akin to wavelength providers. For the quarter ending June 30, 2025, service income totaled $246.2 million, down 0.3% from Q1 and 5.5% from a 12 months earlier.
Whereas on-net and off-net income softened, wavelength providers posted substantial beneficial properties and IP transit agreements continued to ship materials contributions.
The corporate’s wavelength enterprise – launched following the acquisition of Dash’s wireline belongings – stays its fastest-growing phase. Income from optical wavelength providers climbed to $9.1 million in Q2, up 27.2% from Q1 and a formidable 149.8% year-over-year. Wavelength buyer connections almost doubled from 754 a 12 months in the past to 1,469 in Q2 2025.
Cogent now gives wavelength providers in 938 information facilities throughout the U.S., Mexico, and Canada, leveraging predominantly owned fiber for high-capacity, low-latency connections designed for carriers, content material platforms, and hyperscale cloud suppliers. This growth is enabling the corporate to compete extra aggressively for bandwidth-intensive workloads, together with cloud interconnects and media supply.
IP transit additionally stays a cornerstone product. Underneath the long-term IP Transit Providers Settlement signed with T-Cellular when it acquired Dash’s belongings, Cogent is offering spine connectivity for T-Cellular’s visitors whereas receiving predictable recurring funds. The settlement, price $700 million over a number of years, delivered $25 million in Q2 2025. Whereas this was down from $66.7 million in Q2 2024 as a result of cost schedule’s construction, the deal continues to underpin Cogent’s place as a serious Tier 1 transit supplier with deep interconnection throughout the worldwide Web.
On-net providers – direct connections to prospects in buildings linked to Cogent’s community – generated $132.3 million in Q2, up 2.1% from Q1 however down 6% year-over-year. Off-net providers, which depend on third-party last-mile suppliers, noticed steeper declines, falling to $102.2 million. The corporate continues to prioritize on-net growth, including 143 on-net buildings over the previous 12 months to achieve 3,529 areas.
900+ Knowledge Facilities Lit For Wavelength Providers
Cogent’s infrastructure technique is more and more product-led, specializing in high-margin, scalable providers over low-growth, non-core choices. The Dash acquisition has enabled it to increase its optical spine and layer wavelength providers immediately onto owned fiber, lowering reliance on leased capability and enhancing management over service efficiency. These capabilities are being marketed alongside its Tier 1 IP transit community, giving prospects the choice of mixing point-to-point high-capacity transport with international web attain.
Operationally, Cogent delivered Q2 2025 EBITDA of $48.5 million, up from $27.2 million a 12 months earlier, with margins rising to 19.7%. Adjusted EBITDA, excluding acquisition-related results, was $73.5 million, whereas non-GAAP gross margin improved to 44.4% from 40.2% in Q2 2024. These beneficial properties mirror effectivity enhancements and the rising share of high-value providers like wavelength within the general combine.
By aligning its portfolio round wavelength and IP transit, Cogent is positioning itself to seize enterprise, provider, and hyperscale demand for each devoted optical transport and international connectivity. With greater than 900 information facilities lit for wavelength providers and a multi-year transit settlement with a serious cell operator, the corporate is leveraging its belongings to increase product attain and deepen its function within the high-capacity community providers ecosystem.
