Key Points – Revenue declined 1.5% sequentially to $235.6 million, as lower-margin off-net and acquired Sprint Wireline revenue outweighed growth in on-net and wavelength services.
Gross margin improved to 47%, while adjusted EBITDA margin rose to 30.2%. – Cogent sold 10 former Sprint facilities for $225 million and plans to use most proceeds to reduce debt
Net leverage fell to 6.23 times EBITDA, and the company is pursuing refinancing for its $750 million of unsecured notes due June 2027. – Wavelength revenue surged 63.8% year over year to $14.8 million, although equipment, power and data-center capacity constraints limited deployments. Management reiterated multi-year targets of 6%–8% revenue growth and approximately 200 basis points of annual EBITDA-margin expansion. – Big Dippers: 3 Stocks Near 1-Year Lows That Could Surge in 2025 Cogent Communications (NASDAQ:CCOI) reported second-quarter 2026 revenue of $235.6 million, down $3.6 million, or 1.5%, sequentially, as declines in lower-margin off-net and acquired Sprint Wireline revenue continued to outweigh growth in on-net services and wavelength offerings. Chairman and Chief Executive Officer Dave Schaeffer said the company made progress during the quarter in monetizing former Sprint facilities, reducing leverage, cutting costs, completing integration work and shifting its sales mix toward more profitable on-net products.
Data center sale supports debt reduction – 2 Mid-Cap Telecom Stocks Offering Superior Returns In June, Cogent closed the sale of 10 former Sprint facilities that it had converted into data centers for $225 million in cash proceeds. The transaction generated a GAAP gain of $130.7 million, according to Schaeffer. The company said it intends to use most of the proceeds to reduce debt.