Cogent Communications Q1 EPS beats estimates, helped by wavelength growth

Cogent Communications Holdings

04/05/2026 12:10

Overview

Multinational ISP's Q1 service revenue declined yr/yr and sequentially

Adjusted EBITDA for Q1 missed analyst expectations, while basic EPS beat estimates

Company approved quarterly dividend of $0.02 per share for Q2 2026

Outlook

Cogent approved a quarterly dividend of $0.02 per share for Q2 2026

Result Drivers

WAVELENGTH GROWTH - Wavelength revenue rose 12.3% sequentially and 90.8% yr/yr, driven by expansion of optical wavelength services after Sprint network acquisition

OFF-NET DECLINE - Off-net revenue fell 4.2% sequentially and 17.0% yr/yr, reflecting continued reduction in off-net customers and connections

ON-NET AND IPv4 LEASING - On-net revenue rose 1.0% sequentially and 4.6% yr/yr; IPv4 leasing revenue increased 3.9% sequentially and 24.8% yr/yr, supporting overall results

Company press release: ID:nPn8KnRqna

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Net Income
-$39.54 mln
Q1 Adjusted EBITDA
Miss
$70.18 mln
$73.52 mln (9 Analysts)
Q1 Gross Margin
23.40%
Q1 Basic EPS
Beat
-$0.83
-$1 (11 Analysts)
Q1 EBIT
Beat
-$13.51 mln
-$17.47 mln (12 Analysts)
Q1 Adjusted Gross Margin
46.10%
Q1 Adjusted Gross Profit
$110.28 mln
Q1 EBITDA
$45.18 mln
Q1 Gross Profit
$55.90 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the integrated telecommunications services peer group is "buy."

Wall Street's median 12-month price target for Cogent Communications Holdings Inc is $23.00, about 0.7% below its May 1 closing price of $23.16

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)