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Cogent Communications’ Hidden Growth Engine: Wavelength Revenue Surges 63.8%!

Cogent Communications Holdings reported second quarter 2026 results showing continued revenue pressure alongside improved profitability and leverage. Total revenue declined 1.5% sequentially to $235.6 million, largely due to weaker off-net and acquired Sprint Wireline customer segments. Sprint Wireline quarterly revenue has fallen 71% since acquisition, from $118 million to approximately $34 million, reflecting customer attrition and contract terminations. This decline offset growth in Cogent Classic, which has increased 29% since the acquisition to approximately $200 million in quarterly revenue. NetCentric revenue, supported by video traffic, artificial intelligence demand, streaming, IPv4 leasing, and wavelength sales, increased 10.4% year-over-year and represented 45.6% of total revenue. On-net services, including wavelength offerings, accounted for 64% of revenue, up from 47% in the post-acquisition quarter of 2023, reflecting a shift toward higher-margin products. Off-net revenue fell to 35.9%, compared with 48% a year earlier. Wavelength revenue increased 63.8% year-over-year to $14.