Revenue continues to shrink YoY for the sixth consecutive quarter, with the core off-net business contracting 17%. The adjusted EBITDA margin decline from Q4 2025 (31.9% to 29.3%) suggests operating leverage is reversing. Monitor the Q2 2026 earnings call for any guidance on when the revenue decline might stabilize, and watch for further deterioration in off-net customer connections.
Price Chart
Executive Summary
Cogent Communications reported Q1 2026 service revenue of $239.2M, down 3.2% YoY, and a GAAP net loss per share of $(0.83), improving from $(1.09) a year ago. While on-net revenue (+4.6% YoY) and wavelength revenue (+90.8% YoY) grew, total revenue continued to decline driven by a 17% drop in off-net revenue, and adjusted EBITDA margin contracted sequentially from 31.9% to 29.3%.
Key Financial Metrics
Key Facts
- Q1 2026 service revenue $239.2M, down 3.2% YoY from $247.0M
- GAAP net loss per share $(0.83) vs $(1.09) in Q1 2025
- On-net revenue $135.6M, +4.6% YoY; off-net revenue $89.0M, -17.0% YoY
- Wavelength revenue $13.6M, +90.8% YoY; IPv4 revenue $18.0M, +24.8% YoY
- Adjusted EBITDA $70.2M, +2.1% YoY; margin 29.3% vs 27.8% a year ago but down from 31.9% in Q4 2025
- Operating cash flow $14.8M vs $36.4M in Q1 2025
- Quarterly dividend maintained at $0.02/share
- Total customer connections declined 3.2% YoY to 116,809
- Net leverage ratio 7.41x, essentially flat vs 7.34x in Q4 2025
Financial Impact
Revenue decline of ~$7.9M YoY; net loss improved by ~$12.5M YoY but remains negative
Risk Factors
- Sustained revenue decline driven by off-net segment contraction
- Adjusted EBITDA margin compression from Q4 2025 levels
- Net leverage remains elevated at 7.41x with interest coverage declining to 2.29x
- Operating cash flow weakened significantly YoY ($14.8M vs $36.4M)
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-054436 |
| Document: tm2613224d3_8k.htm | 0001104659-26-054436 |
| Document: 0001104659-26-054436-index-headers.html | 0001104659-26-054436 |
| Document: 0001104659-26-054436-index.html | 0001104659-26-054436 |
| Document: 0001104659-26-054436.txt | 0001104659-26-054436 |
| 8-K Data (Synthetic) | 0001104659-26-054436 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 14, 2026 13d ago | Press Release | $7.72 | awaiting T+20 | — | $7.47 (−3.30%) |
Oct 5, 2026 21d ago | SC 13G/A | $8.88 | awaiting T+20 | — | $7.47 (−15.93%) |
Aug 6, 2026 11w ago | 8-K | $10.91 $9.98 | ▲ +8.52% | ▲ +9.12% | $7.47 (+31.58%) |
Jun 29, 2026 17w ago | 8-K | $13.88 $12.22 | ▼ −11.96% | ▼ −10.93% | $7.47 (−46.22%) |
Jun 16, 2026 18w ago | Insider Cluster | $14.61 $11.71 | ▼ −19.85% | ▼ −21.17% | $7.47 (−48.90%) |
Jun 15, 2026 19w ago | 8-K | $16.05 $12.25 | ▼ −23.68% | ▼ −23.88% | $7.47 (−53.49%) |
May 28, 2026 21w ago | 144 | $19.82 $13.41 | ▼ −32.34% | ▼ −29.20% | $7.47 (−62.34%) |
May 4, 2026 25w ago | 8-K | $16.37 $17.69 | ▲ +8.06% | ▲ +2.42% | $7.47 (−54.40%) |
May 4, 2026 25w ago | 8-K | $16.37 $17.69 | ▼ −8.06% | ▼ −2.42% | $7.47 (+54.40%) |
Mar 5, 2026 33w ago | Insider Cluster | $23.07 $19.22 | ▼ −16.69% | ▼ −14.69% | $7.47 (−67.64%) |
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