Cogent Communications (CCOI) Q2 2026 earnings summary

Executive summary

• Operates a global IP network serving corporate, netcentric, and enterprise customers across 308 markets in 58 countries, with 25% of all internet traffic.

• Service revenue for Q2 2026 was $235.6 million, down 1.5% sequentially and 4.3% year-over-year, mainly due to cancellations of low-margin and non-core customers from acquisitions.

• Net income for Q2 2026 was $66.6 million, a turnaround from a net loss of $57.8 million in Q2 2025, driven by a $130.7 million gain from the sale of ten data centers.

• Focused on integrating acquired assets, reducing costs, monetizing data centers, and expanding wavelength and optical transport services.

• Proven track record of integrating acquisitions and driving margin expansion.

Financial highlights

• Q2 2026 total/service revenue: $235.6 million, down 1.5% sequentially and 4.3% year-over-year.

• Wavelength revenue grew 63.8% year-over-year and 9.2% sequentially to $14.8 million.

• On-net revenue was $135.4 million, up 2.3% year-over-year; off-net revenue was $84.5 million, down 17.3% year-over-year.

• Adjusted EBITDA was $71.1 million, margin 30.2%; GAAP gross margin improved to 24.5%, non-GAAP gross margin reached 47.0%.

• Net income for Q2 2026 was $66.6 million; EPS: $1.39 basic, $1.38 diluted.

Outlook and guidance

• Multi-year revenue growth expected between 6% and 8%, with EBITDA margins anticipated to expand by approximately 200 basis points annually.

• CapEx expected to continue declining both sequentially and year-over-year.

• Management expects to refinance 2027 Notes and 2027 Mirror Notes in Q3 2026, subject to market conditions.

• Dividend payments reduced to $0.02 per share per quarter, with future dividends subject to board discretion and financial performance.