Cogent Communications (CCOI) Technology Leadership Forum 2026 summary

Acquisition execution and integration

• Cost-cutting targets were exceeded and integration of systems and customers progressed ahead of schedule.

• Conversion of the TDM voice network to a Wave Network was completed on time, enabling 1,139 locations.

• Wave business grew 9.2% sequentially and 68% year-over-year, but the overall base remains smaller than anticipated.

• Revenue from acquired enterprise customers declined from $485 million to about $150 million, despite margin improvements.

Guidance philosophy and business segmentation

• Long-term, multi-year guidance is preferred, with a history of 10.2% average growth and 220 basis points margin expansion.

• Guidance on cost-cutting was accurate and exceeded, but revenue and Wave growth targets were too aggressive.

• The business is viewed through three lenses: legacy operations, acquired enterprise customers, and new Wave business.

Market dynamics and growth challenges

• Legacy business growth slowed to 5% annually post-pandemic, with margin expansion halved.

• Acquired enterprise customer revenue decline accelerated to nearly 25% annually due to strategic service terminations.

• Wave business faces supply chain, equipment, and power constraints, limiting faster growth.

• Market for wavelengths is larger than expected, with AI applications expected to drive future demand.