Cogent Communications

At the Bank of America conference, Cogent said integration of the Sprint network assets acquired in 2023 is ongoing but causing delays and operational pressure due to supply bottlenecks. The company has so far sold 10 converted data centers for $225 million and plans to use the proceeds to reduce debt; 14 more sites remain for sale. Strong growth in the wavelength business is being driven by AI training, which now accounts for about 25% of the wavelength market and grew 62% in the last quarter, although Cogent’s 3% intercity market share is well below its long‑term target. Management sees further expansion potential from continued AI investment but expects supply‑chain and provisioning bottlenecks to slow short‑term deployment. » Więcej na de.investing.com

At the Citi TMT Conference 2026, Cogent said declines from the acquired Sprint business are easing and the organic business—with better margins and higher cash generation—is gaining importance. Traditional transit and VPN services still account for 84% of revenue, while fast‑growing areas such as IPv4 leasing (about $70m p.a.) and wavelength services (about $65m, +62% YoY) are contributing increasingly. The company sold 10 data centers for $225m, reduced debt and is reviewing capex, expects to return to positive revenue growth within one to two years, and sees further EBITDA upside even without T‑Mobile subsidies. Hardware supply‑chain bottlenecks could temporarily slow wavelength growth but are expected to ease next year. » Więcej na de.investing.com

At the Goldman Sachs conference, Cogent said its core business is growing, adjusted EBITDA margins have recovered to around 20%, and the Wavelength business grew from zero to USD 60m within 18 months. The company is selling data centers (10 facilities for USD 225m), using the proceeds to pay down debt and targeting a net leverage ratio of 4.0x (currently 6.23x). Management sees especially strong demand for Wavelength services for AI training as a long-term growth driver and expects annual margin improvements of at least 200 basis points. Shareholder returns will only be resumed after the leverage target has been reached. » Więcej na de.investing.com