Cogent Communications (CCOI)
NASDAQ:CCOI
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Earnings Data
Report Date
Aug 06, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
-0.95Last Year’s EPS
-1.21Same Quarter Last Year
Based on 9 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Neutral
The call presented a mixed picture: management reported strong execution on strategic items—rapid growth in wavelength revenues and customers, expansion of on‑net revenues and margin improvement year‑over‑year, IPv4 leasing strength, progress on data center monetization and an emerging path to refinance the 2027 notes. Offsetting these positives are near‑term headwinds: a small sequential revenue decline, a sequential EBITDA drop and higher SG&A this quarter, supply‑chain driven CapEx pressure and delayed customer acceptance of wavelength installs, and materially elevated leverage levels driven by Sprint acquisition legacy balances. Overall, the company is making clear strategic progress on product mix and capital structure but faces tangible operational and balance‑sheet challenges in the near term.Company Guidance
Progress on Data Center Monetization
Entered a nonbinding LOI for the sale of 10 former Sprint data centers with buyer due diligence essentially complete; expect closing early summer (June/early July). Company stated aggregate proceeds for the 10 centers are substantially more than $144 million and committed proceeds to Cogent Communications Group to accelerate delevering.
Wavelength Revenue and Customer Growth
Wavelength revenues were $13.6 million for the quarter, up 90.8% year-over-year and up 12.3% sequentially. Wavelength customer connections increased 71.2% year-over-year and 9.6% sequentially to 2,263 connections. Wavelength services sold in 581 unique locations to 492 customers; offering in 1,107 locations; provisioning interval ~30 days.
On‑Net Revenue Expansion and Recomposition of Revenue Mix
Total on‑net revenue (including on‑net wavelength) was $149.2 million, up 9.1% year-over-year and 1.9% sequentially. On‑net as a percentage of total revenues increased from 47% (Q3 2023) to 62% this quarter; 83% of sales in Q1 were on‑net services—showing rotation to higher‑margin products.
Year‑over‑Year Margin Improvement
Adjusted EBITDA increased year‑over‑year by $1.4 million and adjusted EBITDA margin expanded by 150 basis points year‑over‑year (EBITDA as adjusted margin was 29.3% for the quarter). Gross margin rose to 46.1%, up 150 basis points year‑over‑year driven by cost reductions and product optimization.
IPv4 Leasing and IP Leasing Growth
IP leasing revenues were $18 million for the quarter, up 4% sequentially and up 25% year‑over‑year. Average price per IPv4 address remained stable at $0.40. Company holds ~37.8 million IPv4 addresses and has leased ~15 million as of quarter end.
Network Traffic and Connectivity Strength
IP network traffic grew 14% year‑over‑year and 4% sequentially. Cogent is selling IP services in 1,929 data centers and directly connected to 7,630 networks; top 25 customers represented only 16% of revenues, indicating low customer concentration.
Debt Refinancing Progress
Management announced a verbal agreement with holders of the $600M 2032 secured notes (holders representing a majority) to amend the indenture to increase flexibility to incur pari‑passu or junior lien secured debt and include credit enhancements. Company expects to complete refinancing of 2027 $750M unsecured notes after make‑whole period ends June 15, 2026.
Cogent Classic Business Growth Since Sprint Close
Cogent Classic revenue run rate increased from $155 million (at Sprint close) to $198 million this quarter — a 28% increase, demonstrating underlying organic growth despite acquired Sprint revenue decline.
CCOI Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
CCOI Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 04, 2026 | $23.16 | $16.37 | -29.32% |
Feb 20, 2026 | $26.29 | $18.57 | -29.36% |
Nov 06, 2025 | $38.22 | $24.90 | -34.86% |
Aug 07, 2025 | $42.60 | $34.31 | -19.46% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Cogent Communications (CCOI) report earnings?
Cogent Communications (CCOI) is schdueled to report earning on Aug 06, 2026, Before Open (Confirmed).
What is Cogent Communications (CCOI) earnings time?
Cogent Communications (CCOI) earnings time is at Aug 06, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
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What companies are reporting earnings today?
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What is CCOI EPS forecast?
CCOI EPS forecast for the fiscal quarter 2026 (Q2) is -0.95.