Cogent Communications reports slight revenue dip as wavelength services gain momentum

Cogent Communications Holdings (NASDAQ:CCOI) reported first-quarter 2026 service revenue of $239.2 million, a 3.2% decrease from the same period last year and a modest 0.6% sequential decline.

The results reflect a shifting product mix as the company navigates the integration of legacy assets while scaling its newest high-growth offerings.

As-adjusted EBITDA for the quarter stood at $70.2 million, representing an EBITDA margin of 29.3%.

On a GAAP basis, the internet service provider saw an improvement in gross profit, which rose to $55.9 million.

The company continues to lean into its infrastructure advantages, reporting an increase in total on-net buildings to 3,605 and a total customer connection count of 116,809.

A notable bright spot in the quarterly report was the performance of Cogent’s Wavelength services.

Revenue from this segment climbed to $13.6 million, as enterprise and carrier customers increasingly demand dedicated, high-capacity transparent data networking.

This growth in Wavelength services is a key component of Cogent's strategy to monetize the excess capacity acquired through its purchase of the Sprint Global TDM-to-IP business.

The company’s physical footprint also continues to grow, providing the backbone for its low-cost, high-bandwidth business model.

Demonstrating confidence in its cash flow generation, Cogent’s Board of Directors approved a regular quarterly dividend of $0.02 per share.