Cogent Communications Holdings Inc at UBS Global Media and Communications Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Christopher Schoell - UBS AG - Analyst : So Dave, given the time of the year, maybe you can start off by talking about what you saw as the key developments over the past year for Cogent and the priorities as you look out into 2026.

Question: Christopher Schoell - UBS AG - Analyst : That's a great overview. Maybe starting with the wave business, I think last earnings call, you talked about you still believe by 2028, you can get to this $500 million revenue goal for the wave business, which would be roughly 25% of the market. It does imply that, that business needs to scale faster than it is today. What gives you confidence that, that can be done and what still needs to be done to accelerate the core trends there?

Question: Christopher Schoell - UBS AG - Analyst : And we've seen some of your main competitors like Lumen, AT&T announced faster provisioning timelines. They're expanding their own wave networks, do you worry that this takes away some of your competitive edge when you go to market?

Question: Christopher Schoell - UBS AG - Analyst : And one of the challenges you cited was it was taking time for customers to adapt to this faster provisioning. Have you seen much improvement on that front here in 4Q?

Question: Christopher Schoell - UBS AG - Analyst : And we've seen more headlines about these AI-related power investments in more remote locations. Can you just help frame for us, is that an opportunity for your wave business? I think in the past on some of these greenfield network builds, you've kind of downplayed the returns that maybe some of your peers were seeing on these. Has your calculus there changed at all?

Question: Christopher Schoell - UBS AG - Analyst : And maybe pivoting over to your corporate business. So the declines there have been elevated as you have gone through the grooming process with -- on the Sprint assets, which I believe those revenues are either low or almost zero margin. How much of that is still left to work through? And when can we see that piece of the business return to sequential revenue growth?

Question: Christopher Schoell - UBS AG - Analyst : And you mentioned the legacy corporate business growing 6% to 8%, driving total corporate back to growth. What does the timeline look like for that?

Question: Christopher Schoell - UBS AG - Analyst : And then maybe moving over to NetCentric. I think traffic growth is the main driver in that business. It's been around 8% to 9% in recent quarters. It used to be at a double-digit clip. Is it fair to say that this level of traffic growth persist until you see AI be more of an uplift? How are you thinking about that trajectory?

Question: Christopher Schoell - UBS AG - Analyst : Have you seen any tailwinds yet or it's still too early to --

Question: Christopher Schoell - UBS AG - Analyst : And then putting it all together, you've talked about growing EBITDA sequentially each quarter, putting the T-Mobile payments aside. Can you just update us as to how you're thinking about 4Q and maybe an early look at 2026 as to what you see as the big drivers of EBITDA into next year?

Question: Christopher Schoell - UBS AG - Analyst : Just on the dividend, can you just help frame for us what changed in the thought process relative to earlier this year? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 08, 2025 / 8:00PM, CCOI.OQ - Cogent Communications Holdings Inc at UBS Global Media and Communications Conference

Question: Christopher Schoell - UBS AG - Analyst : So it's fair to think that you can be out there in the market ahead of the 4 times leverage target?

Question: Christopher Schoell - UBS AG - Analyst : Got it. And then this past quarter, you disclosed you had the letter of intent on two of your large data center facilities. Just where does that process stand? And what does the time line look like for monetizing those other data center assets that you've repurposed?

Question: Christopher Schoell - UBS AG - Analyst : And then you also sit on a large portfolio of unused IPV4 addresses. Why not sell those to delever faster?

Question: Christopher Schoell - UBS AG - Analyst : And maybe just one last one. You're coming off a period where you had been investing in either repurposing the Sprint wireline assets for the Wave business and then the data center facilities -- you've talked about this $100 million of core CapEx being a good run rate. Is there anything else on the horizon that we should be mindful of that could cause CapEx to tick up relative to that $100 million?

Question: Christopher Schoell - UBS AG - Analyst : I think that's all we have time for. Thanks, Dave, for being with us.