Companies /Communication Services

Cogent Communications Holdings Inc

NASDAQ: CCOI Telecom Services
$9.54
â–² $0.06 (+0.63%) today
Markets closed · 3:02am ET

Q2 2026 Earnings

Reported Aug 6, 2026, 7:19am ET · SEC source
$1.38
Beat +245.26%
EPS · est. $-0.95 GAAP

Includes $132,041 thousand in gains on asset sales ($132,041K) and finance lease terminations ($1,397K) from the sale of ten owned data centers in Q2 2026; also includes $1,579 thousand gain on debt extinguishment of 2032 notes

$235.6M
Miss −1.76%
Revenue · est. $239.8M
4 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−30%−20%−10%0Aug 6Aug 7report 7:19am ETearnings+0.2%−32.5%
−30%−20%−10%0Aug 6Aug 7earnings+0.2%−32.5%
CCOI −32.5%S&P 500 +0.2%
−30%−20%−10%0Aug 6Aug 7report 7:19am ETearnings+1.2%−32.5%
−30%−20%−10%0Aug 6Aug 7earnings+1.2%−32.5%
CCOI −32.5%NASDAQ +1.2%
−30%−20%−10%0Aug 5Aug 14report 7:19am ETearnings+1.0%−22.4%
−30%−20%−10%0Aug 5Aug 14earnings+1.0%−22.4%
CCOI −22.4%S&P 500 +1.0%
−30%−20%−10%0Aug 5Aug 14report 7:19am ETearnings+2.8%−22.4%
−30%−20%−10%0Aug 5Aug 14earnings+2.8%−22.4%
CCOI −22.4%NASDAQ +2.8%
−15.23%
Day of report
−9.07%
Next session
−5.13%
One week

Did CCOI Beat Earnings? Q2 2026 Results

Cogent Communications Holdings posted a headline-grabbing Q2 2026 earnings beat, though the story behind the numbers is dominated by a one-time asset sale rather than operational momentum. The company reported GAAP diluted EPS of $1.38, beating the consensus estimate of $-0.95 by 245.26%, a result that reflects $132.04 million in gains on asset sales and finance lease terminations tied to the divestiture of ten owned data centers, plus a $1.58 million gain on debt extinguishment of its 2032 notes. Strip away that context and the underlying picture is more restrained: service revenue of $235.56 million missed the $239.79 million consensus by 1.76% and fell 4.3% year-over-year, continuing a pattern of top-line pressure. Wavelength revenue grew 63.8% year-over-year to $14.83 million, but that growth is now shadowed by an active securities class action alleging the company's wavelength backlog was misleading and unlikely to convert to actual revenue, a claim Cogent has not publicly conceded.

Key Takeaways
  • On-net revenue including wavelengths grew 6.2% YoY driven by on-net customer connection growth and rapid wavelength adoption
  • Wavelength revenue grew 63.8% YoY with 66.4% growth in wavelength customer connections
  • IP network traffic increased 16% YoY
  • EBITDA as adjusted margin improved to 30.2% from 29.3% in Q1 2026
  • Non-GAAP gross margin expanded to 47.0% from 44.4% in Q2 2025
  • Network operations expenses declined 3.1% sequentially
  • Data center asset sales generated $224.2 million in net proceeds and $132 million gain

CCOI YoY Financials

Q2 2026 vs Q2 2025 · SEC filings Q2 2025 Q2 2026
$0$70.0M$140.0M$210.0M$246.2M$235.6MRevenue$33.5M$57.6MGross Profit$20.6M$118.9MOperating Income$21.1M$66.6MNet Income
$0$70.0M$140.0M$210.0MRevenueGross ProfitOperating IncomeNet Income

CCOI Revenue by Segment

On-Net Services$135.4M+2.3%
Corporate Revenue$98.6M−9.6%
Net-Centric Revenue$107.4M+10.4%
Off-Net Services$84.5M−17.3%
Enterprise Revenue$29.5M−26.0%
IPv4 Address Leasing$18.1M+18.1%
Wavelength Services$14.8M+63.8%
Optical Wavelength Services

Figures from SEC filings and company reports. Not investment advice.