Cogent Communications (CCOI) Q3 2026 earnings summary

Executive summary

• Q3 2026 service revenue was $231.2M, down 1.8% QoQ and 4.4% YoY; adjusted EBITDA was $73.9M, up 3.9% QoQ, with a 32.0% adjusted margin.

• On-net and wavelength revenue growth was offset by lower off-net revenue; total customer connections fell 3.0% YoY to 114,678.

• The Board suspended the dividend program on Nov. 4, 2026; cash, including restricted cash, was $181.3M at quarter-end.

Financial highlights

• Service revenue of $231.2M declined 1.8% QoQ and 4.4% YoY; constant-currency declines were 1.7% QoQ and 4.2% YoY.

• GAAP operating loss was $6.9M versus $18.1M a year earlier; net loss was $29.8M versus $41.5M.

• GAAP gross profit was $56.7M, down 1.6% QoQ and up 13.7% YoY; GAAP gross margin was 24.5%, flat QoQ and up from 20.6% YoY.

• Adjusted EBITDA, including cash payments under the IP Transit Services Agreement, was $73.9M versus $71.1M QoQ and $73.8M YoY.

• Network operations expense, excluding equity compensation, was $121.0M, down 3.1% QoQ; SG&A excluding equity compensation was $61.3M, down 5.1% QoQ.

Segment performance

• On-net service revenue was $137.9M, up 1.9% QoQ and 1.9% YoY; on-net revenue including wavelengths was $153.9M, up 2.4% sequentially.

• Off-net revenue was $76.6M, down 9.3% QoQ and 19.5% YoY.

• Wavelength revenue was $16.0M, up 7.8% QoQ and 57.0% YoY; wavelength connections grew 55.5% YoY to 2,722.

• Non-core revenue was $0.7M versus $0.9M QoQ and $1.4M YoY.