Cogent Communications Holdings, Inc. (CCOI) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

this conference call will be posted on the Cogent's website when it becomes available. Cogent's summary of financial and operational results attached to its press release can be downloaded from the Cogent website. I would now like to turn the call over to Mr. Dave Schaefer, Chairman and Chief Executive Officer of Cogent Communications Holdings. Hey, thank you, and good morning, everyone. Welcome to our third quarter 2025 earnings call. I'm Dave Schaefer, Cochran's Chief Executive Officer, and with me on today's call is Tad Weed, our Chief Financial Officer. I'd like to recognize a number of significant events in the quarter and discuss a few matters and then turn things over to Tad. First, our program of return of capital and our aggregate leverage. Following extensive discussions with our Board of Directors, and engagement with shareholders and bondholders, we have refined our capital allocation priorities to strengthen our financial flexibility and accelerate our de-levering strategy. The decision to reduce our quarterly dividend to two cents per share per quarter was made after careful evaluation It will allow us to redirect capital towards reducing leverage while remaining a disciplined approach to shareholder returns. Supported by our growth in EBITDA, recurring cash inflows under our IP transfer agreement, and continued operational efficiencies, we will reduce our net leverage ratios. These actions position us for long-term growth and enhance the financial resiliency of our business. We intend to maintain our updated dividend policy until we reach a net leverage target of four times EBITDA on a LTM basis. On our last earnings call, we stated that we believe our leverage had peaked on an LTM basis. We also indicated that amounts due to us under the T-Mobile paym...