Quarterly ResultNov 5, 2026, 07:26 AM
Cogent Communications Q3 Revenue Down 1.8%; Adjusted EBITDA Up 3.9%; Dividend Suspended
AI Summary
Cogent Communications Holdings, Inc. announced its third quarter 2026 financial results, reporting service revenue of $231.2 million, down 1.8% sequentially and 4.4% year-over-year. However, adjusted EBITDA increased by 3.9% to $73.9 million, driven by growth in on-net and wavelength revenues. The company also noted a decrease in operating expenses and significant purchases of its 2032 secured notes. In a notable strategic move, Cogent's Board of Directors voted to suspend the company's dividend program.
Key Highlights
- Cogent Communications reported Q3 2026 service revenue of $231.2 million, a decrease of 1.8% sequentially and 4.4% year-over-year.
- EBITDA, as adjusted, was $73.9 million for Q3 2026, an increase of 3.9% from Q2 2026.
- On-net revenue increased 2.4% sequentially to $153.9 million in Q3 2026.
- Wavelength revenue increased 7.8% sequentially to $16.0 million in Q3 2026.
- Network operations expenses decreased 3.1% from Q2 2026 to $121.0 million.
- Selling, general and administrative expenses decreased 5.1% from Q2 2026 to $61.3 million.
- Cogent purchased $118.4 million par value of its 2032 secured notes for $106.7 million, realizing a gain of $11.3 million.
- Cogent's Board voted to suspend its dividend program.
Price Impact
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