Key Highlights

  • IPv4 address leasing generated $18.1 million of revenue in the second quarter.
  • Shares fell 9.92% to $7.72 on October 14, 2026.
  • Service revenue declined 4.3% year over year to $235.6 million.
  • Net leverage stood at 6.75 times, or 6.23 times adjusted for T-Mobile payments.

Most debate about Cogent Communications Holdings (NASDAQ:CCOI) centers on debt and fiber growth, yet one small line in its results may deserve its own look: internet address leasing. Cogent reported $18.1 million of IPv4 revenue in the second quarter of 2026, from 15,220,334 billed addresses. IPv4 addresses are the numeric labels that identify devices online, and because supply is limited, owners can lease them for recurring fees. Shares closed at $7.72 on October 14, 2026, down 9.92% on the day, according to market data.

A High-Margin Side Business

In its second-quarter release, Cogent reported service revenue of $235.6 million, down 4.3% from a year earlier. Adjusted EBITDA was $71.1 million, a 30.2% margin, including cash payments under a services agreement tied to the former Sprint network. Net income was $66.6 million, boosted by a $130.7 million gain on the sale of ten data centers. IPv4 revenue sits inside the on-net category, which rose 2.3% year on year to $135.4 million, and roughly 7.7% of second-quarter service revenue came from address leasing alone.

Debt Still Weighs on Equity

Off-net revenue, where Cogent resells other carriers' last-mile links, fell 17.3% year on year, and total customer connections declined 2.4%. Net leverage remained high at 6.75 times unadjusted and 6.23 times after adjusting for amounts due from T-Mobile (NASDAQ:TMUS). Analyst views are mixed to cautious, with JPMorgan at Underweight and a $9 target and Bank of America at Underperform with a $9.50 target, while the consensus rating is Hold. The company bought back $138.8 million of its 2032 secured notes through July 31.

A Dual Character

IPv4 leasing is not the headline of Cogent's story, but it highlights the company's dual character: a fiber network under pressure in some product lines, and a smaller recurring revenue stream from assets it already owns. Whether that stream can offset off-net weakness and heavy interest costs remains an open question ahead of the November 5 earnings call.