Cogent Communications Holdings, Inc. (CCOI) · Nov 5, 2026 · Earnings
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.
| Metric | Q3 2026 | Q3 2025 | Consensus / 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) | 8.02x | 8.02x 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.
Data-center sale negotiations under non-binding letters of intent
A buy-side analyst on every ticker — it reads every public company's filing the instant it drops and decodes it into plain English.
A buy-side analyst on every ticker — the whole market decoded the second it moves, before it's a headline. Free gives you a taste. Pro takes the cap off and opens the full read on every company.
by Signing in NOW, claim your FREE 14-day Pro trial!