Cogent reported a 4.4% year-over-year decline in service revenue to $231.2 million, missing analyst estimates, while narrowing its net loss to $0.62 per share. The quarter was defined by significant strategic shifts, most notably the suspension of the company's dividend program and the announcement of non-binding agreements to sell four data centers for approximately $100 million.
Key Highlights
- Dividend Suspension: The Board of Directors voted to suspend the quarterly dividend program effective November 4, 2026, to preserve capital.
- Wavelength Momentum: Wavelength revenue reached $16.0 million, representing a 57.0% increase from the third quarter of 2025 and 7.8% sequential growth.
- Margin Expansion: Adjusted EBITDA margin expanded to 32.0% from 30.2% in the second quarter of 2026, driven by reduced network operations and SG&A expenses.
- Debt Management: Cogent purchased $118.4 million par value of its 2032 secured notes at a discount for $106.7 million during the quarter.
- Asset Monetization: The company signed letters of intent to sell four repurposed data centers acquired from Sprint for roughly $100 million in cash.