Cogent Communications Holdings posts Q2 2026 net income $66.6M, service revenue $235.6M

Cogent Communications Holdings reported second-quarter 2026 service revenue of $235.6 million and net income of $66.6 million, driven largely by a $130.7 million gain on the sale of ten data centers. GAAP gross profit for the quarter was $57.6 million (24.5% margin) and EBITDA, as adjusted for IP T…

Cogent Communications Holdings reported second-quarter 2026 service revenue of $235.6 million and net income of $66.6 million, driven largely by a $130.7 million gain on the sale of ten data centers. GAAP gross profit for the quarter was $57.6 million (24.5% margin) and EBITDA, as adjusted for IP Transit cash payments, was $71.1 million (30.2% margin). The company ended Q2 with $369.7 million in total cash and restricted cash and approved a quarterly dividend of $0.02 per share.

Financial Highlights

Service revenue: $235.6 million for the three months ended June 30, 2026 (down 1.5% sequentially; down 4.3% year-over-year).
GAAP gross profit: $57.6 million for Q2 2026; GAAP gross margin: 24.5%.
EBITDA: $46.1 million for Q2 2026; EBITDA margin: 19.6%.
EBITDA, as adjusted for cash payments under the IP Transit Services Agreement: $71.1 million for Q2 2026; adjusted margin: 30.2%.
Net income: $66.6 million for Q2 2026; basic net income per common share: $1.39; diluted: $1.38. Total cash and restricted cash at quarter-end: $369.7 million.

Business Highlights

Asset monetization: Sold ten owned data centers for net proceeds of $224.2 million, recording a gain of $130.7 million in Q2 2026.
Network revenue mix: On-net revenue (including wavelengths) rose sequentially to $150.2 million in Q2 2026, up 0.7% from Q1 2026 and up 6.2% year-over-year.
Wavelength expansion: Wavelength revenue increased to $14.8 million in Q2 2026 (up 9.2% sequentially and 63.8% year-over-year); Cogent offered optical wavelength services in 1,137 locations across the U.S., Mexico and Canada as of June 30, 2026.
Customer and footprint trends: Total customer connections were 115,839 at quarter-end (down 2.4% year-over-year); on-net connections increased to 88,013 and on-net buildings rose to 3,627 (net +98 year-over-year).
Debt and capital actions: Began and completed amendments to 2032 secured notes (increasing maximum secured debt leverage ratio to 4.75) and repurchased $138.8 million par value of 2032 secured notes through July 31, 2026 at an average price ~90.35, recording total gains of $13.4 million.

Original SEC Filing:

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