Cogent Communications Holdings, Inc. (CCOI) · Nov 5, 2026 · Earnings

Cogent earnings miss revenue as wavelength growth faces off-net erosion

Miss — Revenue $231.2M vs ~$234.7M consensus; EPS $(0.62) vs $(0.83)

Cogent’s Q3 earnings show strong wavelength growth and better margins, but steep off-net declines pushed revenue below consensus and kept the core transition unfinished.

Cogent is still transforming the Sprint-acquired fiber network into a higher-growth wavelength business while its legacy off-net and enterprise connectivity base contracts. Pre-release consensus called for roughly $234.7 million of revenue and a $(0.83) per-share loss, so the quarter was a revenue miss but an EPS beat.

The growth engine is working, but it is not yet large enough to offset the legacy decline. On-net revenue rose 1.9% sequentially and wavelength revenue jumped 7.8% sequentially, with wavelength revenue up 57.0% year over year. But off-net revenue fell 9.3% sequentially and 19.5% year over year, while enterprise revenue declined 8.7% sequentially.

MetricQ3 2026Q3 2025Consensus / Q2 2026
Service revenue (Financial Statements)$231.2M (-4.4%)$241.9M~$234.7M consensus
On-net revenue (Revenue breakdown)$137.9M (+1.9%)$135.3M$135.4M Q2
Wavelength revenue (Revenue breakdown)$16.0M (+57.0%)$10.2M$14.8M Q2
Off-net revenue (Revenue breakdown)$76.6M (-19.5%)$95.1M$84.5M Q2
Adj. EBITDA (Non-GAAP measures)$73.9M (+0.2%)$73.8M$71.1M Q2
Diluted EPS (Income Statement)$(0.62)$(0.87)$(0.83) consensus
Operating cash flow (Cash Flow Statement)$3.8M$3.1M$3.2M Q2
Gross leverage (Leverage table)7.41x (-0.61x)8.02x8.02x Q2

Margins and balance-sheet execution were better than the headline revenue. Adjusted EBITDA rose to $73.9 million and adjusted EBITDA margin reached 32.0%, up from 30.5% a year earlier. Operating expenses fell, while Cogent repurchased $118.4 million par value of 2032 notes and $50.0 million of 2027 notes at discounts. That helped reduce gross leverage to 7.41x from 8.02x at the end of the prior quarter, although cash fell to $181.3 million after debt purchases and capital spending.

The EPS beat is less informative than it looks. The $(0.62) loss was better than the published consensus of roughly $(0.83), but the quarter included an $11.3 million gain from retiring debt below par, while operating income remained negative at $(6.9) million. The core business therefore delivered better cost control and margin, not a clean earnings improvement.

Bottom line: Cogent is proving that wavelength demand is growing, but the transition is still being overwhelmed by shrinking off-net revenue. This quarter modestly weakens the overall story because revenue missed expectations even as margins, debt reduction, and the wavelength buildout improved.

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Original filing on SEC EDGAR

More Cogent Communications Holdings, Inc. news

Cogent earnings miss revenue as wavelength growth faces off-net erosion | CCOI Stock News
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