11:25 AM EDT, 08/08/2025 (MT Newswires) -- Cogent Communications' ( CCOI ) risk profile has increased due to higher leverage, limited visibility on monetization, and slower EBITDA progress, RBC Capital Markets said in a note Friday.

RBC said it now expects 2025 revenue of $991 million and earnings before interest, taxes, depreciation, and amortization of $311 million, along with 2026 revenue of about $1.05 billion and EBITDA of $377 million, both lower than prior estimates.

Q2 revenue was $246 million, in line with forecasts, while adjusted EBITDA of $73.5 million missed expectations on slower reductions in network costs and selling, general, and administrative expenses, the investment firm said.

Wavelength additions of 147 were well below the roughly 500 expected, raising concerns about meeting the $500 million wavelength revenue target by mid-2028, according to the note.

Management expects revenue growth to resume in Q3 after the loss of a major non-core contract, along with stronger sequential EBITDA gains, RBC analysts noted.

RBC downgraded Cogent Communications ( CCOI ) to sector perform from outperform and reduced its price target to $40 from $74.

Shares of the company were down more than 11% in recent trading.

Price: 31.28, Change: -4.06, Percent Change: -11.49