COGENT COMMUNICATIONS HOLDINGS, INC. Segments Disclosure
10. Geographic and segment information:
Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing the Company’s performance. The Company’s Chief Executive Officer and Chairman, Dave Schaeffer is the Company’s CODM. The Company has one operating segment. The CODM regularly reviews the following amounts on a worldwide consolidated basis as presented in the Company’s consolidated statements of comprehensive income (loss);
| ● | Service revenue |
| ● | Network operations expense |
| ● | Selling, general and administrative (“SG&A”) expenses |
| ● | Amortization of compensation expense |
| o | As components of SG&A and network operations expense |
| ● | Interest expense |
| ● | Gain on bargain purchase – Cogent Fiber Business |
| ● | Net income (loss) |
The Company’s results are evaluated for performance and resource allocation decisions based on consolidated net (loss) income. The consolidated operating segment financial information regularly reviewed by the CODM, inclusive of assets, revenue, expenses, profit or loss, and noncash items are included in the Consolidated Statements of Comprehensive Income (Loss), Consolidated Balance Sheets, and Consolidated Statements of Cash Flows.Revenues are attributed to regions based on where the services are provided. Below are the Company’s service revenues and long-lived assets by geographic region - including property plant and equipment and excluding intangible assets (in thousands):
Year Ended December 31, 2025 | | On-net | | Off-net | | Wavelengths | | Non-core | | Total | |||||
North America | $ | 400,765 | $ | 373,289 | $ | 37,443 | $ | 8,026 | $ | 819,523 | |||||
Europe | 101,395 | 19,455 | 944 | 217 | 122,011 | ||||||||||
Oceania |
| 20,791 | 3,916 | 66 |
| 63 |
| 24,836 | |||||||
South America | 8,072 | 708 | — | 28 | 8,808 | ||||||||||
Africa | 486 | 102 | — | — | 588 | ||||||||||
Total | $ | 531,509 | $ | 397,470 | $ | 38,453 | $ | 8,334 | $ | 975,766 | |||||
Year Ended December 31, 2024 | | On-net | | Off-net | Wavelengths | | Non-core | | Total | ||||||
North America | $ | 424,437 | $ | 426,857 | $ | 19,015 | $ | 17,692 | $ | 888,001 | |||||
Europe |
| 94,363 | 21,242 | 172 | 347 | 116,124 | |||||||||
Oceania |
| 18,205 | 5,013 | 9 |
| 91 |
| 23,318 | |||||||
South America | 7,080 | 896 | — | 43 | 8,019 | ||||||||||
Africa | 543 | 99 | — | — | 642 | ||||||||||
Total | $ | 544,628 | $ | 454,107 | $ | 19,196 | $ | 18,173 | $ | 1,036,104 | |||||
Year Ended December 31, 2023 | | On-net | | Off-net | Wavelengths | | Non-core | | Total | ||||||
North America | $ | 401,213 | $ | 367,210 | $ | 5,653 | $ | 28,614 | $ | 802,690 | |||||
Europe |
| 88,310 |
| 19,913 | — |
| 147 |
| 108,370 | ||||||
Oceania |
| 15,769 |
| 5,587 | — |
| 71 |
| 21,427 | ||||||
South America | 6,957 | 684 | — | 8 | 7,649 | ||||||||||
Africa | 687 | 99 | — | — | 786 | ||||||||||
Total | $ | 512,936 | $ | 393,493 | $ | 5,653 | $ | 28,840 | $ | 940,922 | |||||
December 31, | December 31, | |||||
| 2025 | | 2024 | |||
Long lived assets, net | ||||||
North America | $ | 1,523,789 | $ | 1,579,495 | ||
Europe and other |
| 197,285 |
| 158,854 | ||
Total | $ | 1,721,074 | $ | 1,738,349 | ||
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.