Cogent Communications Holdings, Inc. (CCOI) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning and welcome to the Cogent Communication Holdings fourth quarter and full year 2035 earnings conference call. As a reminder, this conference call is being recorded and it will be available for replay at www.cogent.com. A transcript of this conference call will be posted in 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. Please go ahead. Hey, thank you and good morning to everyone. Welcome to our fourth quarter 2025 and full year 2025 conference call. I'm Dave Schaefer, Cogent's CEO, and with me on today's call is Tad Weed, our Chief Financial Officer. I'd like to highlight a few key events and significant matters in the quarter. I'd like to be able to go through these metrics to help you understand better our business. We are continuing to increase our margins. Our increase in gross margin and EBITDA margins have been driven by cost reductions and a rotation to more profitable on-net products. In the third quarter of 2023, The first full quarter cogent was combined with Sprint Wireline revenues. Our combined revenues by connection type for the third quarter versus this quarter have changed materially. Our on net revenues were 47% of our revenues in the third quarter of 2023. Our total on net revenues as a percentage of revenues has increased from 47% of revenues in the third quarter of 2023 to 61% of revenues this quarter. Our off net revenues were 48% of our total revenues in the third quarter of 2023, immediately after the combination of Sprint and Cogent. Our off-net revenues as a percentage of our to...