Cogent’s second quarter results were met with a negative market reaction following a year-over-year revenue decline and a miss versus Wall Street’s sales expectations. Management attributed the underperformance to continued revenue attrition from the acquired Sprint Wireline business and lower off-net sales, which more than offset ongoing growth in the company’s core NetCentric segment. CEO Dave Schaeffer acknowledged these challenges, stating that “the decline in revenue from the acquired Sprint customer base is moderating,” but cautioned that integration-related costs and workforce reductions weighed on profitability in the period.

Is now the time to buy CCOI? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Cogent’s Q2 Earnings Call

• Gregory Williams (TD Cowen) pressed for details on the sluggish wavelength connection growth and backlog conversion. CEO Dave Schaeffer explained that customer delays due to data center power and equipment shortages continue to limit installs, though demand and backlog remain robust.
• Christopher Schoell (UBS) asked about the likelihood and structure of selling the remaining 14 data centers. Schaeffer said sales are likely to occur in smaller groups, with ongoing negotiations and a focus on maximizing proceeds for debt reduction.
• Michael Funk (Bank of America) inquired about valuation and buyer interest for unsold data centers. Schaeffer said the remaining sites are comparable to those already sold, with strong private equity and operator interest, and transaction timing may be influenced by tax considerations.
• Walter Piecyk (LightShed) questioned SG&A reduction potential and free cash flow prospects. Schaeffer confirmed SG&A will decline as integration costs end and detailed a plan to reach positive free cash flow through margin expansion, lower CapEx, and revenue growth.
• Nicholas Del Deo (MoffettNathanson) asked about the sales force size after recent cuts and its alignment with future growth. Schaeffer said the reduced headcount targets higher productivity and will focus on NetCentric customers and wavelength sales, with further shifts possible as market dynamics evolve.

Catalysts in Upcoming Quarters

In the quarters ahead, our team will closely monitor (1) the pace of remaining data center asset sales and the associated impact on leverage, (2) trends in new on-net and wavelength service installations amid industry supply chain constraints, and (3) the sustainability of margin expansion as integration costs phase out. Execution against these milestones will be key to tracking Cogent’s transition to a leaner, more profitable model.

Cogent currently trades at $10.24, down from $12.87 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).

Our Favorite Stocks Right Now

ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.

Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.

Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.