Cogent Communications Holdings, Inc. reported its financial results for the second quarter and first half of 2026, revealing a service revenue of $235.6 million for the three months ending June 30, 2026, a decrease of 4.3% from $246.2 million in the same period of 2025. For the six months ended June 30, 2026, service revenue totaled $474.7 million, down 3.8% from $493.3 million year-over-year. The company achieved a net income of $66.6 million for the second quarter, a significant turnaround from a net loss of $57.8 million in the prior year, while the first half of 2026 saw a net income of $27.1 million compared to a loss of $109.8 million in the same period of 2025.
The company experienced notable operational changes, including a gain of $132.0 million from the sale of ten data center buildings, which contributed to its improved profitability. Additionally, Cogent reported a gain of $1.6 million from the extinguishment of debt related to its 2032 Notes. Operating expenses decreased to $250.1 million in the second quarter of 2026 from $277.7 million in the same quarter of 2025, primarily due to reduced network operations costs and lower depreciation and amortization expenses.
In terms of customer metrics, Cogent reported a total of 88,013 on-net customer connections as of June 30, 2026, a slight increase from 87,407 a year earlier. However, corporate customer connections decreased to 41,326 from 44,307, while net-centric connections rose to 65,556 from 62,659. The company also expanded its wavelength service revenue significantly, reporting $14.8 million for the second quarter of 2026, up 63.8% from $9.1 million in the same quarter of 2025.
Looking ahead, Cogent Communications is focused on leveraging its acquisition of the Cogent Fiber Business to enhance its service offerings and operational efficiencies. The company plans to refinance its 2027 Notes and 2027 Mirror Notes in the third quarter of 2026, subject to market conditions. Management expressed confidence in its ability to meet cash flow requirements through ongoing operations and payments from the IP Transit Services Agreement with T-Mobile, which is expected to provide $700 million over several years. The company’s cash, cash equivalents, and restricted cash stood at $369.7 million as of June 30, 2026, indicating a solid liquidity position to support its strategic initiatives.
About COGENT COMMUNICATIONS HOLDINGS, INC.
Cogent Communications Holdings, Inc. is a facilities-based provider of high-speed Internet access, private network, optical wavelength, and data center colocation services. Serving businesses, content providers, and bandwidth-intensive organizations across 56 countries, it leverages owned and leased fiber networks, data centers, and Tier 1 peering status to deliver reliable, high-capacity connectivity with a focus on cost efficiency, network control, and rapid service deployment.
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