## Q4 print: the “miss” is mix-driven, not demand-freefall Cogent reported Q4 2025 service revenue of **$240.5 million**, down **4.7% Y/Y** (and down **0.6% Q/Q**), while **GAAP net (loss) per share was $(0.64)** for the quarter. ["Service revenue of $240.5 million"](0001104659-26-017862|1) ["a decrease of 4.7%"](0001104659-26-017862|1) ["net (loss) per share was $(0.64)"](0001104659-26-017862|1) Read-through: the top-line pressure is concentrated in **off-net and run-off buckets**, while the company continues to pivot toward services it can deliver (and price) with materially better control. ["Off-net revenue was $92.9 million"](0001104659-26-017862|1) ["Non-core revenue was $1.2 million"](0001104659-26-017862|1) ## Hidden alpha: “on-net + wavelength” is now ~61% of revenue (pricing power + control) In Q4, **on-net revenue was $134.3 million** and **wavelength revenue was $12.1 million** on **total service revenue of $240.5 million**, implying **~60.9% (~61%)** of revenue coming from on-net delivered services plus wavelength **(computed = (134.281 + 12.097) / 240.518)**. ["On-Net revenue…$134,281"](0001104659-26-017862|1) ["Wavelength revenue…$12,097"](0001104659-26-017862|1) ["Service revenue – total…$240,518"](0001104659-26-017862|1) That composition matters because on-net is holding up versus off-net: **on-net revenue was up 4.3% Y/Y**, while **off-net revenue fell 17.9% Y/Y**—a quiet but important “quality of revenue” upgrade that can support margins even when consolidated revenue is flat/down. ["On-net revenue…an increase of 4.3%"](0001104659-26-017862|1) ["Off-net revenue…a decrease of 17.9%"](0001104659-26-017862|1) ## Wavelength is the real growth engine—and it’s accelerating Wavelength revenue rose to **$12.1 million** in Q4, up **73.7% Y/Y** and **18.8% sequentially**. ["Wavelength revenue was $12.1 million"](0001104659-26-017862|1) ["an increase of 18.8%"](0001104659-26-017862|1) ["an increase of 73.7%"](0001104659-26-017862|1) Connections reinforce that this isn’t just repricing: wavelength customer connections grew to **2,064**, up **84.6% Y/Y** and **17.9% Q/Q**. ["Wavelength customer connections…2,064"](0001104659-26-017862|1) ["increased by 84.6%"](0001104659-26-017862|1) ["increased by 17.9%"](0001104659-26-017862|1) ## Profitability signal: margin expansion is outpacing revenue (operating leverage is back) Despite the revenue decline, Cogent’s **adjusted EBITDA** increased to **$76.7 million** in Q4 and adjusted EBITDA margin expanded to **31.9%** (vs **26.5%** in Q4 2024). ["EBITDA, as adjusted…was $76.7 million"](0001104659-26-017862|1) ["margin was 31.9%"](0001104659-26-017862|1) ["was 26.5% for…December 31, 2024"](0001104659-26-017862|1) That’s the “between the lines” setup: if off-net/non-core keeps shrinking while wavelength and on-net remain resilient, reported revenue can still look messy even as **economics per delivered bit improve**. ## Deleveraging is explicitly a *playbook*: refinance maturities + monetize data centers Management is overt that it **may refinance indebtedness at/before maturity** and could pursue transactions to **extend maturities / reduce future cash interest** (including issuing new debt or repurchasing outstanding notes). ["refinance all or a portion of our indebtedness at or before maturity"](0001104659-26-017968|0) ["reduce future cash interest payments…or to extend debt maturities"](0001104659-26-017968|0) Separately, the company is actively trying to **monetize acquired data center facilities**—it’s “actively marketing the sale or lease” of **24 facilities**, and it previously had (but later terminated) a non-binding LOI to sell two facilities/land for **$144.0 million cash**. ["actively marketing the sale or lease of 24 data center facilities"](0001104659-26-017968|0) ["sale…for $144.0 million in cash"](0001104659-26-017968|0) ["has since been terminated"](0001104659-26-017968|0) Investor implication: this isn’t just “talking about deleveraging”—it’s a stated path that can convert non-core real assets into balance-sheet flexibility, but execution/timing risk is real given the already-terminated LOI. ["resumed active marketing"](0001104659-26-017968|0) ## The tell: traffic is rising while customer mix is being deliberately “cleaned up” IP network traffic grew **10% Y/Y** in Q4 (and **9%** for full-year 2025), even as total customer connections declined Y/Y—consistent with exiting lower-quality/off-net/non-core while leaning into higher-throughput use cases. ["IP Network traffic…increased by 10% from Q4 2024"](0001104659-26-017862|1) ["increased by 9% for full year 2025"](0001104659-26-017862|1) ["Total customer connections decreased by 4.7%"](0001104659-26-017862|1)

## Q4 print: the “miss” is mix-driven, not demand-freefall Cogent reported Q4 2025 service revenue of **$240.5 million**, down **4.7% Y/Y** (and down **0.6% Q/Q**), while **GAAP net (loss) per share was $(0.64)** for the quarter. ["Service revenue of $240.5 million"](0001104659-26-017862|1) ["a decrease of 4.7%"](0001104659-26-017862|1) ["net (loss) per share was $(0.64)"](0001104659-26-017862|1) Read-through: the top-line pressure is concentrated in **off-net and run-off buckets**, while the company continues to pivot toward services it can deliver (and price) with materially better control. ["Off-net revenue was $92.9 million"](0001104659-26-017862|1) ["Non-core revenue was $1.2 million"](0001104659-26-017862|1) ## Hidden alpha: “on-net + wavelength” is now ~61% of revenue (pricing power + control) In Q4, **on-net revenue was $134.3 million** and **wavelength revenue was $12.1 million** on **total service revenue of $240.5 million**, implying **~60.9% (~61%)** of revenue coming from on-net delivered services plus wavelength **(computed = (134.281 + 12.097) / 240.518)**. ["On-Net revenue…$134,281"](0001104659-26-017862|1) ["Wavelength revenue…$12,097"](0001104659-26-017862|1) ["Service revenue – total…$240,518"](0001104659-26-017862|1) That composition matters because on-net is holding up versus off-net: **on-net revenue was up 4.3% Y/Y**, while **off-net revenue fell 17.9% Y/Y**—a quiet but important “quality of revenue” upgrade that can support margins even when consolidated revenue is flat/down. ["On-net revenue…an increase of 4.3%"](0001104659-26-017862|1) ["Off-net revenue…a decrease of 17.9%"](0001104659-26-017862|1) ## Wavelength is the real growth engine—and it’s accelerating Wavelength revenue rose to **$12.1 million** in Q4, up **73.7% Y/Y** and **18.8% sequentially**. ["Wavelength revenue was $12.1 million"](0001104659-26-017862|1) ["an increase of 18.8%"](0001104659-26-017862|1) ["an increase of 73.7%"](0001104659-26-017862|1) Connections reinforce that this isn’t just repricing: wavelength customer connections grew to **2,064**, up **84.6% Y/Y** and **17.9% Q/Q**. ["Wavelength customer connections…2,064"](0001104659-26-017862|1) ["increased by 84.6%"](0001104659-26-017862|1) ["increased by 17.9%"](0001104659-26-017862|1) ## Profitability signal: margin expansion is outpacing revenue (operating leverage is back) Despite the revenue decline, Cogent’s **adjusted EBITDA** increased to **$76.7 million** in Q4 and adjusted EBITDA margin expanded to **31.9%** (vs **26.5%** in Q4 2024). ["EBITDA, as adjusted…was $76.7 million"](0001104659-26-017862|1) ["margin was 31.9%"](0001104659-26-017862|1) ["was 26.5% for…December 31, 2024"](0001104659-26-017862|1) That’s the “between the lines” setup: if off-net/non-core keeps shrinking while wavelength and on-net remain resilient, reported revenue can still look messy even as **economics per delivered bit improve**. ## Deleveraging is explicitly a *playbook*: refinance maturities + monetize data centers Management is overt that it **may refinance indebtedness at/before maturity** and could pursue transactions to **extend maturities / reduce future cash interest** (including issuing new debt or repurchasing outstanding notes). ["refinance all or a portion of our indebtedness at or before maturity"](0001104659-26-017968|0) ["reduce future cash interest payments…or to extend debt maturities"](0001104659-26-017968|0) Separately, the company is actively trying to **monetize acquired data center facilities**—it’s “actively marketing the sale or lease” of **24 facilities**, and it previously had (but later terminated) a non-binding LOI to sell two facilities/land for **$144.0 million cash**. ["actively marketing the sale or lease of 24 data center facilities"](0001104659-26-017968|0) ["sale…for $144.0 million in cash"](0001104659-26-017968|0) ["has since been terminated"](0001104659-26-017968|0) Investor implication: this isn’t just “talking about deleveraging”—it’s a stated path that can convert non-core real assets into balance-sheet flexibility, but execution/timing risk is real given the already-terminated LOI. ["resumed active marketing"](0001104659-26-017968|0) ## The tell: traffic is rising while customer mix is being deliberately “cleaned up” IP network traffic grew **10% Y/Y** in Q4 (and **9%** for full-year 2025), even as total customer connections declined Y/Y—consistent with exiting lower-quality/off-net/non-core while leaning into higher-throughput use cases. ["IP Network traffic…increased by 10% from Q4 2024"](0001104659-26-017862|1) ["increased by 9% for full year 2025"](0001104659-26-017862|1) ["Total customer connections decreased by 4.7%"](0001104659-26-017862|1)