Cogent Q2 2026: Data Center Sale Lifts EPS to $1.39; Leverage Eases as Debt Buybacks Continue
CCOI sits 22% above its 52-week low of $10.925.
Summary
Cogent reported Q2 2026 net income of $66.6 million ($1.39 EPS) driven by a $130.7 million gain on data center sales. Cash rose to $369.7 million and net leverage improved to 6.23x as the company repurchased $138.8 million of its 2032 notes at a discount.
Key Events · Earnings and Guidance · CCOI
-
Data Center Sale Closes
The sale of 10 data centers yielded net proceeds of $224.2 million and a $130.7 million gain, which drove Q2 net income to $66.6 million ($1.39 basic EPS).
-
Leverage Improves Significantly
Adjusted net leverage fell to 6.23x from 6.79x in Q1 2026, aided by the sale proceeds and discounted debt repurchases.
-
Aggressive Debt Buybacks
In Q2, $20.4 million par value of 2032 notes were repurchased, followed by an additional $118.4 million in July, at an average price of ~90 cents on the dollar, generating $13.4 million in total gains.
-
Revenue Trends Mixed
Total service revenue declined 1.5% sequentially to $235.6 million, but on-net revenue (including wavelengths) grew 0.7% to $150.2 million, and wavelength revenue surged 63.8% year-over-year.
Analysis · CCOI · Technology
A $224.2 million data center sale reshaped Cogent's second quarter, delivering a $130.7 million gain that propelled net income to $66.6 million, or $1.39 per share. The cash infusion, together with aggressive discounted debt repurchases—$138.8 million in par value through July—pushed the adjusted net leverage ratio down to 6.23x from 6.79x last quarter. While service revenue continued to decline, on-net revenue grew sequentially and the balance sheet is markedly stronger, with $369.7 million in cash. The results show a company using asset sales to deleverage and buy back debt at a discount, directly addressing the high leverage that has weighed on the stock.
At the time of this filing, CCOI was trading at $13.30 on NASDAQ in the Technology sector, with a market capitalization of approximately $644.5M. The 52-week trading range was $10.93 to $45.82. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.