Earnings Releases·Nov 5, 2026, 7:22 AM ET

Cogent Communications — Third Quarter 2026 Earnings Summary

Service revenue declined 1.8% sequentially and 4.4% year-over-year to $231.2 million, driven by a 9.3% sequential drop in off-net revenue, while adjusted EBITDA rose 3.9% to $73.9 million with margins expanding to 32.0%.
The Board voted to suspend the dividend program on November 4, 2026, while the company executed significant debt reduction by purchasing $118.4 million par value of 2032 secured notes and $50.0 million of 2027 unsecured notes, generating $11.4 million in total gains.
Gross leverage ratio improved to 7.41 from 8.02 in the prior quarter, supported by cost management that reduced network operations and SG&A expenses by 3.1% and 5.1% respectively, alongside a 5.8% decrease in capital expenditures.
Management provided no forward guidance, citing future capital returns as discretionary based on financial position and debt indenture limitations, while noting increasing competitive pressure on pricing.
Strategic initiatives include the expansion of optical wavelength services following the Sprint acquisition and the entry into non-binding letters of intent to sell four repurposed data centers for approximately $100.0 million.