Cogent Communications Holdings Inc

Cogent Communications delivered a mixed first quarter for 2026, posting a narrower-than-expected loss that offered investors some relief even as revenue fell short of forecasts. The company reported a net loss of $0.83 per share, clearing the consensus estimate of $0.98 by 15.31%, while revenue of $239.19 million missed expectations by 0.94% and slipped 3.2% year-over-year, reflecting the continued runoff of legacy Sprint wireline connections following its 2023 acquisition from T-Mobile. Off-net revenue, which bore the heaviest drag, fell 17.0% year-over-year to $89.02 million as legacy Sprint customer connections declined, partly offsetting meaningful progress elsewhere. The wavelength business, seen by analysts as a key bellwether for AI-driven demand, surged 90.8% year-over-year to $13.59 million, while on-net revenue climbed 4.6% to $135.57 million. Adjusted EBITDA rose 2.1% to $70.18 million, with margins expanding to 29.3% from 27.8%, and GAAP gross margin improved sharply to 23.4% from 13.6% a year earlier, aided by significantly lower depreciation and amortization charges.