0001104659-26-054611
SEC filingRevenue declined 3.2% to $239.2M as low-margin customer cancellations offset net-centric growth, but operating loss narrowed 66.5% to -$13.5M on cost discipline.
Revenue for the first quarter of 2026 was $239.2 million, a decrease of 3.2% compared to $247.0 million in the same period last year. The decline was primarily driven by cancellations of low-margin corporate and enterprise customers acquired with the Cogent Fiber Business, as we continue to focus on higher-quality revenue. Revenue from net-centric customers increased, supported by growth in network traffic from legacy customers, but was partly offset by reductions from acquired net-centric customers.
Net cash provided by operating activities was $14.8 million, down from $36.4 million in the prior year, primarily due to changes in working capital. Capital expenditures totaled $46.2 million, resulting in negative free cash flow of -$31.4 million. We continue to monitor our capital spending and liquidity needs, and will adjust capital allocation strategies as determined by our Board of Directors.
Our disciplined network expansion program increased our on-net buildings, supporting future revenue growth. We continue to leverage our one IP network protocol and low-cost operating strategy to reduce cost per bit and improve margins over time.
We face uncertainties from potential tariffs, trade restrictions, and the cash flow requirements of the Cogent Fiber Business. We will continue to assess our capital and liquidity needs and may return capital to stockholders when appropriate.