Shares of Cogent Communications tumbled 22% following Q1 2026 results as investors reacted negatively to continued revenue contraction and cautious outlook, despite modest margin improvements and progress on asset monetization.

• Revenue declined year-over-year, continuing a negative trend linked to the Sprint acquisition integration, though the rate of decline has moderated.
• Adjusted EBITDA decreased sequentially by $6.6 million to $70.2 million, with a margin of 29.3%, reflecting some margin expansion year-over-year but pressure sequentially.
• Wavelength revenues surged 90.8% year-over-year to $13.6 million with improved customer connections, yet this growth was insufficient to offset broader top-line weakness.
• SG&A expenses increased 11% sequentially due to seasonal factors and higher costs including salaries and annual fees.
• Management reiterated a multi-year revenue growth target of 6-8% and EBITDA margin expansion of 200 basis points per year but flagged that guidance is not intended as a quarterly or annual forecast.