Cogent Communications Holdings, Inc. (NASDAQ: CCOI) announced on April 4, 2025, that a special-purpose, bankruptcy-remote, indirect wholly owned subsidiary of the company has priced an offering of secured Internet Protocol version 4 (IPv4) address revenue term notes.

The press release detailing the pricing and structure of this offering was furnished as Exhibit 99.1 to the company's Form 8-K. As noted in the filing, the information is being provided under Item 7.01 (Regulation FD Disclosure) and is not deemed filed for purposes of Section 18 of the Exchange Act.

This strategic financing move highlights Cogent's focus on leveraging its IPv4 address assets for revenue generation and capital access.

Cogent Communications Extends Headquarters Lease

Washington, D.C. – March 11, 2025 – Cogent Communications (NASDAQ: CCOI) has extended its lease at 2450 N Street, NW, Washington, D.C., until May 10, 2030. The lease, with Sodium, LLC, a company owned by CEO David Schaeffer, remains terminable with 60 days’ notice and has an annual rent of approximately $991,691. The Audit Committee approved the extension, with no other changes to the lease terms.

Cogent Communications reported its financial results for the fourth quarter and full year 2024. Service revenue for Q4 2024 was $252.3 million, down from $257.2 million in Q3 2024 and $272.1 million in Q4 2023. Full-year service revenue was $1.0 billion, reflecting a 10.1% increase from 2023. Wavelength revenue rose significantly by 31.8% quarter-over-quarter and 124.1% year-over-year. Revenue from leasing IPv4 addresses grew by 11.8% from Q3 2024. EBITDA increased by 16.7% in Q4 2024, reaching $41.9 million. However, EBITDA for the full year declined slightly to $348.4 million from $352.5 million in 2023.

The company continued its regular quarterly dividend increases, approving a raise to $1.005 per share for Q1 2025. Cogent does not anticipate a US federal income tax liability for 2024 and received a $24.2 million tax refund for 2023.

Cogent's revenue from the commercial agreement with T-Mobile, linked to the Sprint acquisition, declined significantly in Q4 2024 compared to prior quarters. The company reported on-net revenue of $128.8 million for Q4 2024, marking a 5.7% sequential decrease, while off-net revenue increased slightly. Customer connections declined, with total connections down 10.3% year-over-year. Office occupancy rates remained lower than pre-pandemic levels, affecting corporate customer sales, though some cities showed improvement.

The company continued expanding its optical wavelength services, reaching 808 data centers in North America. The IP Transit Services Agreement with T-Mobile continued generating revenue, with $25 million received in Q4 2024.

Net income turned negative, with a loss of $43.3 million in Q4 2024, compared to a $200.2 million profit in Q4 2023. The full-year net loss was $204.1 million, down from a $1.27 billion profit in 2023, which had benefited from a significant gain on the Sprint acquisition. Cash flow from operations turned positive at $14.5 million in Q4 2024, a reversal from negative figures in prior quarters.

The company hosted an earnings call to discuss results and provide updates on business trends. The full financial report, including detailed financial statements and reconciliations of non-GAAP measures, is available on Cogent’s website.