Service revenue was $239.2 million for Q1 2026 and was $240.5 million for Q4 2025.
Wavelength revenue increased by 12.3% sequentially from Q4 2025 to $13.6 million for Q1 2026 and increased by 90.8% from Q1 2025.
Wavelength customer connections increased by 9.6% sequentially from Q4 2025 to 2,263 connections for Q1 2026 and increased by 71.2% from Q1 2025.
On-net revenue increased by 1.0% sequentially from Q4 2025 to $135.6 million for Q1 2026 and increased by 4.6% from Q1 2025.
Revenue from leasing IPv4 addresses increased by 3.9% sequentially from Q4 2025 to $18.0 million for Q1 2026 and increased by 24.8% from Q1 2025.
EBITDA, as adjusted, was $70.2 million for Q1 2026 and increased by 2.1% from Q1 2025.
EBITDA, as adjusted, margin was 29.3% for Q1 2026 and was 27.8% for Q1 2025.
IP Network traffic for Q1 2026 increased by 4% from Q4 2025 and increased by 14% from Q1 2025.
Cogent approved a quarterly dividend of $0.02 per share for Q2 2026.
WASHINGTON, May 4, 2026 /PRNewswire/ -- Cogent Communications Holdings, Inc. (NASDAQ:CCOI) ("Cogent") today announced service revenue of $239.2 million for the three months ended March 31, 2026, a decrease of 0.6% from the three months ended December 31, 2025 and a decrease of 3.2% from the three months ended March 31, 2025.
Foreign exchange rates positively impacted service revenue growth from the three months ended December 31, 2025 to the three months ended March 31, 2026 by $0.3 million and positively impacted service revenue growth from the three months ended March 31, 2025 to the three months ended March 31, 2026 by $3.4 million. On a constant currency basis, service revenue decreased by 0.7% from the three months ended December 31, 2025 to the three months ended March 31, 2026 and decreased by 4.6% from the three months ended March 31, 2025 to the three months ended March 31, 2026.
On-net service is provided to customers located in buildings that are physically connected to Cogent's network by Cogent facilities. On-net revenue was $135.6 million for the three months ended March 31, 2026, an increase of 1.0% from the three months ended December 31, 2025 and an increase of 4.6% from the three months ended March 31, 2025.
Off-net customers are located in buildings directly connected to Cogent's network using other carriers' facilities and services to provide the last mile portion of the link from the customers' premises to Cogent's network. Off-net revenue was $89.0 million for the three months ended March 31, 2026, a decrease of 4.2% from the three months ended December 31, 2025 and a decrease of 17.0% from the three months ended March 31, 2025.
Wavelength revenue was $13.6 million for the three months ended March 31, 2026, an increase of 12.3% from the three months ended December 31, 2025 and an increase of 90.8% from the three months ended March 31, 2025.
Non-core services are legacy services, which Cogent acquired and continues to support but does not actively sell. Non-core revenue was $1.0 million for the three months ended March 31, 2026, $1.2 million for the three months ended December 31, 2025 and $3.0 million for the three months ended March 31, 2025.
GAAP gross profit is defined as total service revenue less network operations expense, depreciation and amortization and equity-based compensation included in network operations expense. GAAP gross margin is defined as GAAP gross profit divided by total service revenue. GAAP gross profit increased by 4.0% from the three months ended December 31, 2025 to $55.9 million for the three months ended March 31, 2026 and increased by 66.5% from the three months ended March 31, 2025.
GAAP gross margin was 23.4% for the three months ended March 31, 2026, 22.3% for the three months ended December 31, 2025 and 13.6% for the three months ended March 31, 2025.
Non-GAAP gross profit represents service revenue less network operations expense, excluding equity-based compensation and amounts shown separately (depreciation and amortization expense). Non-GAAP gross margin is defined as Non-GAAP gross profit divided by total service revenue. Non-GAAP gross profit decreased by 2.0% from the three months ended December 31, 2025 to $110.3 million for the three months ended March 31, 2026 and increased by 0.2% from the three months ended March 31, 2025.
Non-GAAP gross margin was 46.1% for the three months ended March 31, 2026, 46.8% for the three months ended December 31, 2025 and 44.6% for the three months ended March 31, 2025.
Net cash provided by (used in) operating activities was $14.8 million for the three months ended March 31, 2026, $(6.0) million for the three months ended December 31, 2025 and $36.4 million for the three months ended March 31, 2025.
IP Transit Services AgreementOn May 1, 2023, the closing date of the Sprint acquisition, Cogent and T-Mobile USA, Inc. ("TMUSA"), a Delaware corporation and direct subsidiary of T-Mobile US, Inc., a Delaware corporation ("T-Mobile"), entered into an agreement for IP transit services (the "IP Transit Services Agreement"), pursuant to which TMUSA will pay Cogent an aggregate of $700.0 million, consisting of (i) $350.0 million paid in equal monthly installments during the first year after the closing date of the Sprint acquisition and (ii) $350.0 million paid in equal monthly installments over the subsequent 42 months. Amounts paid under the IP Transit Services Agreement were $25.0 million for each of the three months ended March 31, 2025, December 31, 2025 and March 31, 2026.
Earnings before interest, taxes, depreciation and amortization (EBITDA), was $45.2 million for the three months ended March 31, 2026, $51.7 million for the three months ended December 31, 2025 and $43.8 million for the three months ended March 31, 2025.
EBITDA margin, was 18.9% for the three months ended March 31, 2026, 21.5% for the three months ended December 31, 2025 and 17.7% for the three months ended March 31, 2025.
Earnings before interest, taxes, depreciation and amortization (EBITDA), as adjusted, for cash paid under the IP Transit Services Agreement, was $70.2 million for the three months ended March 31, 2026, $76.7 million for the three months ended December 31, 2025 and $68.8 million for the three months ended March 31, 2025.
EBITDA margin, as adjusted for cash paid under the IP Transit Services Agreement, was 29.3% for the three months ended March 31, 2026, 31.9% for the three months ended December 31, 2025 and 27.8% for the three months ended March 31, 2025.
Basic and diluted net (loss) per share was $(0.83) for the three months ended March 31, 2026, $(0.64) for the three months ended December 31, 2025 and was $(1.09) for the three months ended March 31, 2025.
Total customer connections decreased by 3.2% from March 31, 2025 to 116,809 as of March 31, 2026 and decreased by 0.7% from December 31, 2025. On-net customer connections increased by 1.3% from March 31, 2025 to 87,899 as of March 31, 2026 and decreased by 0.1% from December 31, 2025. Off-net customer connections decreased by 12.7% from March 31, 2025 to 24,014 as of March 31, 2026 and decreased by 2.6% from December 31, 2025. Wavelength customer connections increased by 71.2% from March 31, 2025 to 2,263 as of March 31, 2026 and increased by 9.6% from December 31, 2025. Non-core customer connections were 2,633 as of March 31, 2026, 2,979 as of December 31, 2025 and 5,120 as of March 31, 2025.
The number of on-net buildings increased by 105 on-net buildings from March 31, 2025 to 3,605 as of March 31, 2026 and increased by 26 on-net buildings from December 31, 2025.
Optical Wave NetworkAcquiring the Sprint network has also allowed Cogent to construct a wavelength network using predominantly owned fiber. This enabled Cogent to expand its product offerings to include optical wavelength services. As of March 31, 2026, Cogent was offering optical wavelength services in 1,107 locations in the United States, Mexico and Canada.
Quarterly Dividend ApprovedOn May 1, 2026, Cogent's Board approved a regular quarterly dividend of $0.02 per share payable on June 2, 2026 to shareholders of record on May 18, 2026.
The payment of any future dividends and any other returns of capital will be at the discretion of the Board and may be reduced, eliminated or increased and will be dependent upon Cogent's financial position, results of operations, available cash, cash flow, capital requirements, limitations under Cogent's debt indentures and other factors deemed relevant by the Board.
Conference Call and Website InformationCogent will host a conference call with financial analysts at 8:30 a.m. (ET) on May 4, 2026 to discuss Cogent's operating results for the first quarter of 2026. Investors and other interested parties may access a live audio webcast of the earnings call in the "Events" section of Cogent's website at www.cogentco.com/events. A replay of the webcast, together with the press release, will be available on the website following the earnings call. A downloadable file of Cogent's "Summary of Financial and Operational Results" and a transcript of its conference call will also be available on Cogent's website following the conference call.
About Cogent Communications
Cogent Communications (NASDAQ:CCOI) is a multinational, Tier 1 facilities-based ISP. Cogent specializes in providing businesses with high-speed Internet access, Ethernet transport, optical wavelength, optical transport and colocation services. Cogent's facilities-based, all-optical IP network backbone provides services in 306 markets globally.
Cogent Communications is headquartered at 2450 N Street, NW, Washington, D.C. 20037. For more information, visit www.cogentco.com. Cogent Communications can be reached in the United States at (202) 295-4200 or via email at [email protected].
COGENT COMMUNICATIONS HOLDINGS, INC., AND SUBSIDIARIES
Summary of Financial and Operational Results
Q1 2025
Q2 2025
Q3 2025
Q4 2025
Q1 2026
Metric ($ in 000's, except share, per share, customer connectionsand network related data), unaudited
On-Net revenue (13)
$129,628
$132,331
$135,267
$134,281
$135,568
% Change from previous Qtr.
0.7 %
2.1 %
2.2 %
-0.7 %
1.0 %
Off-Net revenue
$107,274
$102,177
$95,111
$92,909
$89,023
% Change from previous Qtr.
-5.2 %
-4.8 %
-6.9 %
-2.3 %
-4.2 %
Wavelength revenue (1)
$7,119
$9,057
$10,179
$12,097
$13,585
% Change from previous Qtr.
2.2 %
27.2 %
12.4 %
18.8 %
12.3 %
Non-Core revenue (2)
$3,027
$2,682
$1,392
$1,231
$1,011
% Change from previous Qtr.
-10.3 %
-11.4 %
-48.1 %
-11.6 %
-17.9 %
Service revenue, total (13)
$247,048
$246,247
$241,949
$240,518
$239,187
% Change from previous Qtr.
-2.1 %
-0.3 %
-1.7 %
-0.6 %
-0.6 %
Constant currency total revenue quarterly growth rate, sequentialquarters (3) (13)
-1.9 %
-1.3 %
-2.1 %
-0.5 %
-0.7 %
Constant currency total revenue quarterly growth rate, year overyear quarters (3) (13)
-6.7 %
-6.0 %
-6.6 %
-5.7 %
-4.6 %
Constant currency and excise tax impact on total revenuequarterly growth rate, sequential quarters (3) (13)
-1.6 %
-1.2 %
-1.8 %
-0.8 %
-0.5 %
Constant currency and excise tax impact on total revenuequarterly growth rate, year over year quarters (3) (13)
-6.6 %
-6.3 %
-6.4 %
-5.3 %
-4.3 %
Excise Taxes included in service revenue (4)
$20,200
$19,998
$19,188
$19,786
$19,490
% Change from previous Qtr.
-3.6 %
-1.0 %
-4.1 %
3.1 %
-1.5 %
IPv4 Revenue, included in On-Net revenue
$14,413
$15,320
$17,475
$17,323
$17,992
% Change from previous Qtr.
14.8 %
6.3 %
14.1 %
-0.9 %
3.9 %
IPv4 Addresses Billed
12,879,749
13,187,109
14,600,974
15,274,488
15,203,726
% Change from previous Qtr.
-1.2 %
2.4 %
10.7 %
4.6 %
-0.5 %
Corporate revenue (5)
$110,686
$109,047
$105,201
$102,817
$101,041
% Change from previous Qtr.
-2.1 %
-1.5 %
-3.5 %
-2.3 %
-1.7 %
Net-centric revenue (5) (13)
$92,615
$97,309
$100,288
$103,353
$105,756
% Change from previous Qtr.
-1.1 %
5.1 %
3.1 %
3.1 %
2.3 %
Enterprise revenue (5)
$43,747
$39,891
$36,460
$34,348
$32,390
% Change from previous Qtr.
-4.1 %
-8.8 %
-8.6 %
-5.8 %
-5.7 %
Network operations expenses (4)
$136,949
$136,986
$131,107
$128,035
$128,910
% Change from previous Qtr.
-11.5 %
0.0 %
-4.3 %
-2.3 %
0.7 %
GAAP gross profit (6)
$33,571
$33,465
$49,843
$53,742
$55,903
% Change from previous Qtr.
12.5 %
-0.3 %
48.9 %
7.8 %
4.0 %
GAAP gross margin (6)
13.6 %
13.6 %
20.6 %
22.3 %
23.4 %
Non-GAAP gross profit (3) (7)
$110,099
$109,261
$110,842
$112,483
$110,277
% Change from previous Qtr.
12.8 %
-0.8 %
1.4 %
1.5 %
-2.0 %
Non-GAAP gross margin (3) (7)
44.6 %
44.4 %
45.8 %
46.8 %
46.1 %
Selling, general and administrative expenses (8)
$66,340
$60,766
$62,061
$60,740
$65,094
% Change from previous Qtr.
19.0 %
-8.4 %
2.1 %
-2.1 %
7.2 %
Depreciation and amortization expense
$76,038
$75,290
$60,429
$58,422
$54,055
% Change from previous Qtr.
13.0 %
-1.0 %
-19.7 %
-3.3 %
-7.5 %
Equity-based compensation expense
$8,013
$4,664
$8,932
$4,808
$7,563
% Change from previous Qtr.
9.1 %
-41.8 %
91.5 %
-46.2 %
57.3 %
Operating income (loss)
$(40,292)
$(31,459)
$(18,128)
$(11,329)
$(13,507)
% Change from previous Qtr.
23.0 %
21.9 %
42.4 %
37.5 %
-19.2 %
Interest expense (9)
$34,015
$48,688
$43,146
$54,135
$47,944
% Change from previous Qtr.
-25.0 %
43.1 %
-11.4 %
25.5 %
-11.4 %
Non-cash change in valuation, Swap Agreement (9)
$201
$(8,911)
$223
$(9,758)
$(4,069)
Net loss
$(52,042)
$(57,807)
$(41,544)
$(30,781)
$(39,542)
Basic net loss per common share
$(1.09)
$(1.21)
$(0.87)
$(0.64)
$(0.83)
Diluted net loss per common share
$(1.09)
$(1.21)
$(0.87)
$(0.64)
$(0.83)
Weighted average common shares, basic
47,676,735
47,592,836
47,603,287
47,724,101
47,774,617
% Change from previous Qtr.
0.3 %
-0.2 %
0.0 %
0.3 %
0.1 %
Weighted average common shares, diluted
47,676,735
47,592,836
47,603,287
47,724,101
47,774,617
% Change from previous Qtr.
0.3 %
-0.2 %
0.0 %
0.3 %
0.1 %
EBITDA (3)
$43,759
$48,495
$48,781
$51,743
$45,183
% Change from previous Qtr.
4.6 %
10.8 %
0.6 %
6.1 %
-12.7 %
EBITDA margin (3)
17.7 %
19.7 %
20.2 %
21.5 %
18.9 %
Cash payments under IP Transit Services Agreement (10)
$25,000
$25,000
$25,000
$25,000
$25,000
EBITDA, as adjusted for payments under IP Transit ServicesAgreement (3) (10)
$68,759
$73,495
$73,781
$76,743
$70,183
% Change from previous Qtr.
2.9 %
6.9 %
0.4 %
4.0 %
-8.5 %
EBITDA, as adjusted for cash payments under IP Transit ServicesAgreement, margin (3) (10)
27.8 %
29.8 %
30.5 %
31.9 %
29.3 %
Net cash provided by (used in) operating activities
$36,351
$(44,039)
$3,100
$(5,992)
$14,834
% Change from previous Qtr.
150.1 %
-221.1 %
107.0 %
-293.3 %
347.6 %
Capital expenditures
$58,088
$56,200
$36,250
$37,031
$46,239
% Change from previous Qtr.
26.0 %
-3.3 %
-35.5 %
2.2 %
24.9 %
Principal payments of capital (finance) lease obligations
$8,003
$8,520
$8,791
$8,528
$13,356
% Change from previous Qtr.
-71.4 %
6.5 %
3.2 %
-3.0 %
56.6 %
Dividends paid
$49,133
$49,560
$49,066
$2,304
$1,299
Gross Leverage Ratio (3)
6.69
8.65
8.24
8.04
8.02
Net Leverage Ratio (3)
6.08
7.52
7.44
7.34
7.41
Gross Leverage Ratio, adjusted for amounts Due from T-Mobile (3)(14)
5.81
7.74
7.45
7.35
7.40
Net Leverage Ratio, adjusted for amounts Due from T-Mobile (3)(14)
5.21
6.61
6.65
6.64
6.79
Gross Leverage Ratio under the Company's Indentures (3)
5.86
6.82
5.66
6.13
6.10
Secured Leverage Ratio under the Company's Indentures (3)
3.44
4.20
3.49
3.80
3.79
Interest Coverage Ratio under the Company's Indentures (3)
2.80
2.43
2.62
2.39
2.29
Customer Connections, end of period (13)
On-Net customer connections
86,781
87,407
87,767
87,944
87,899
% Change from previous Qtr.
-0.8 %
0.7 %
0.4 %
0.2 %
-0.1 %
Off-Net customer connections
27,508
26,239
25,518
24,656
24,014
% Change from previous Qtr.
-5.0 %
-4.6 %
-2.7 %
-3.4 %
-2.6 %
Wavelength customer connections (1)
1,322
1,469
1,750
2,064
2,263
% Change from previous Qtr.
18.2 %
11.1 %
19.1 %
17.9 %
9.6 %
Non-Core customer connections (2)
5,120
3,615
3,244
2,979
2,633
% Change from previous Qtr.
-11.8 %
-29.4 %
-10.3 %
-8.2 %
-11.6 %
Total customer connections (13)
120,731
118,730
118,279
117,643
116,809
% Change from previous Qtr.
-2.1 %
-1.7 %
-0.4 %
-0.5 %
-0.7 %
Corporate customer connections (5)
45,295
44,307
43,391
42,579
41,903
% Change from previous Qtr.
-2.3 %
-2.2 %
-2.1 %
-1.9 %
-1.6 %
Net-centric customer connections (5) (13)
61,795
62,659
63,875
64,551
65,098
% Change from previous Qtr.
-0.7 %
1.4 %
1.9 %
1.1 %
0.8 %
Enterprise customer connections (5)
13,641
11,764
11,013
10,513
9,808
% Change from previous Qtr.
-7.7 %
-13.8 %
-6.4 %
-4.5 %
-6.7 %
On-Net Buildings, end of period
Multi-Tenant office buildings
1,867
1,871
