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Cogent Communications (MX:CCOI)
:CCOI
Mexico Market
EarningsQ2 2026 Earnings Report

Cogent Comms (CCOI) Q2 2026 Earnings Report

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MX:CCOI Q2 2026 EPS Results

Actual EPS$23.54
Consensus EPS-$17.12
Beat/MissBeat by +$40.66
One Year Ago EPS-$20.64

MX:CCOI Q2 2026 Revenue Results

Actual Revenue$4.02B
Expected Revenue$4.09B
Beat/MissMissed by -$68.07M
YoY Revenue Growth-4.34%

Earnings Announcement Details

QuarterQ2 2026
Date08/06/2026
TimeBefore Open
Conference CallThursday, August 6, 2026
MX:CCOI Upcoming Earnings
Cogent Comms's next earnings date is estimated for November 5, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

MX:CCOI Q2 2026 Earnings Call
0:00 / 0:00

Q2 2026 Earnings Slide Deck

Q2 2026 Earnings Call Summary

Q2 2026
Earnings Call Date:Aug 06, 2026|
% Change Since:
|
Earnings Call Sentiment|Neutral
The call conveyed measurable operational and financial progress — notable asset monetizations, margin expansion, deleveraging steps, strong wavelength revenue growth and traffic acceleration — but also highlighted continuing revenue pressure from the acquired Sprint base, substantial legacy debt and upcoming refinancing risk, constrained free cash flow (excluding T‑Mobile payments), and slower-than-desired wavelength conversion due to supply chain and data center constraints. Achievements on cost savings, on‑net product rotation, asset sales and traffic/EBITDA improvements are significant, yet material challenges remain that temper near‑term credit and cash flow outlooks.
Company Guidance
Management guided to multi‑year revenue growth of 6–8% and expected EBITDA margin expansion of roughly 200 basis points per year (multi‑year, not quarterly), with a planned Q3 2026 refinancing of the $750M 2027 notes and continued deleveraging funded by data‑center monetization (10 former‑Sprint sites sold for $225M in Q2, GAAP gain $130.7M; company committed at least $175M of those proceeds into the borrowing group per the 2032 supplemental indenture). Key metrics cited: net leverage as‑adjusted down to 6.23x EBITDA (from 6.79x last quarter and 6.61x YoY), gross debt ~ $2.3B, net debt ~$1.8B, cash & restricted cash $369.7M; cumulative 2032 note repurchases $138.8M par at an average price of $90.348 (cash paid $126.2M) yielding $13.4M gain; Q2 CapEx $38.5M (down 16.7% QoQ, 31.4% YoY) with further declines expected; integration costs largely wound down with most savings captured; Q2 EBITDA as‑adjusted $71.1M (+$0.9M QoQ) and EBITDA adj margin 30.2% (+90 bps QoQ), gross margin 47% (+90 bps QoQ, +260 bps YoY); and continued focus on wavelength growth (wavelength revenue $14.8M, +63.8% YoY, +9.2% QoQ; 2,445 connections, +66.4% YoY, +8% QoQ; available in 1,137 locations, sold in 608 locations to 546 unique customers; company at ~3% of the NA long‑haul market with a 25% long‑term target).
Data Center Monetization — Closed Sale of 10 Former Sprint Facilities
Sold 10 converted Sprint data centers for $225.0 million in cash in Q2 2026, recording a GAAP gain of $130.7 million; proceeds used primarily to reduce gross and net leverage.
Leverage Reduction Progress
Net leverage (as adjusted, inclusive of T‑Mobile payments this quarter) improved to 6.23x EBITDA from 6.79x at prior quarter close and from 6.61x in Q2 2025; repurchased $138.8 million par value of 2032 notes to date at an average price of $90.348, realizing cumulative gains of $13.4 million.
Wavelength Business Rapid Year‑Over‑Year Growth
Wavelength revenue was $14.8 million, up 63.8% year‑over‑year and 9.2% sequentially; total wavelength customer connections increased 66.4% YoY and 8.0% sequentially to 2,445; sold wavelength services in 608 unique locations to 546 unique customers.
Gross Margin and EBITDA Margin Expansion
Gross margin increased 260 basis points YoY and 90 bps sequentially to 47%; EBITDA as adjusted was $71.1 million (up ~$0.9 million sequentially) and EBITDA as adjusted margin rose 90 bps sequentially to 30.2%.
On‑net Revenue and Product Rotation
On‑net revenue (including on‑net wavelength sales) was $150.2 million, up 6.2% YoY and 0.7% sequentially; on‑net mix increased to 64% of total revenues (from 62.4% last quarter), and 82% of incremental sales in Q2 were on‑net services.
Cost Reduction, Headcount Optimization and CapEx Discipline
Total headcount reduced to 1,682 (down 113 QoQ, down 207 YoY — ~6% QoQ reduction); Q2 CapEx declined 16.7% sequentially and 31.4% YoY to $38.5 million; management reports most integration cost savings realized (targeted $240M).
Traffic Growth and Operational Metrics
IP network traffic grew 3% sequentially (seasonally slow quarter) and accelerated to 16% YoY; DSO improved to 29 days (from 31), and bad debt expense was only 0.6% of revenues.
Strong Cash Position Including Restricted Cash
Total cash and restricted cash at quarter end was $369.7 million (includes $168 million initially restricted from data center sale proceeds under supplemental indenture).

MX:CCOI Earnings History

Report Date
Fiscal Quarter
Forecast / EPS
Last Year's EPS
EPS YoY Change
Press Release
Nov 05, 2026
2026 (Q3)
-13.44 / -
-14.839―
2026 (Q2)
-17.12 / 23.54
-20.639214.05% (+44.18)
2026 (Q1)
-16.99 / -14.16
-18.59223.85% (+4.43)
2025 (Q4)
-17.53 / -10.92
-15.52229.67% (+4.61)
2025 (Q3)
-18.78 / -14.84
-22.68534.59% (+7.85)
2025 (Q2)
-17.11 / -20.64
-11.599-77.94% (-9.04)
2025 (Q1)
-18.08 / -18.59
-23.53821.01% (+4.95)
2024 (Q4)
-20.57 / -15.52
71.126-121.82% (-86.65)
2024 (Q3)
-20.35 / -22.69
-20.468-10.83% (-2.22)
2024 (Q2)
-21.58 / -11.60
403.391-102.88% (-414.99)
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed