NEW YORK, July 30, 2026 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Cogent Communications Holdings, Inc. ("Cogent" or the "Company") (NASDAQ: CCOI). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
The class action concerns whether Cogent and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
You have until September 21, 2026, to ask the Court to appoint you as Lead Plaintiff for the class if you purchased or otherwise acquired Cogent securities during the Class Period. A copy of the Complaint can be obtained at www.pomerantzlaw.com.
[Click here for information about joining the class action]
On February 27, 2025, Cogent announced its fourth quarter 2024 and year-end 2024 financial results, disclosing that Cogent's annual revenue run rate was only $28 million and its backlog (as explained on the accompanying earnings call that day) declined sequentially from 3,400 in the prior quarter to 2,700 in the fourth quarter. Management explained that Cogent had removed 1,500 orders from its backlog because many orders were more than a year old. Additionally, growth in wavelength connections slowed from 287 net additions in third quarter 2024 to 77 net additions in fourth quarter 2024.
On this news, Cogent's stock price fell 10%.
Then, on May 8, 2025, Cogent announced its first quarter 2025 financial results, reporting that revenues in the wavelength business were lower than expected, which had negatively impacted Cogent's earnings, margins, and leverage. Although Cogent had expanded its offering of optical wavelength services to over 880 data centers across North America, wavelength revenues only increased by $200,000 from fourth quarter 2024. Executives further revealed that Cogent now had the capacity to provision 500 orders per month but only expected to be able to convert 5% of its 3,400 order backlog.
On this news, Cogent's stock price fell 7%.
Thereafter, on August 7, 2025, Cogent announced its second quarter 2025 financial results, revealing that Cogent only added 147 net connections during the quarter (compared to 204 in first quarter 2025), which was far less than Cogent's prior claims that it would be installing 4% to 5% of its 3,433 wavelength backlog (approximately 155 wavelengths) per month.
On this news, Cogent's stock price fell 19% on August 7, 2025 and declined a further 13% on August 8, 2025.
Then, on November 6, 2025, Cogent announced its third quarter 2025 financial results, reporting that wavelength revenue increased sequentially to $10.2 million and wavelength customer connections only increased sequentially by 281 connections from 1,469 to 1,750. Cogent further revealed that it paused stock buybacks and reduced its quarterly dividend from $1.015 per share to $0.02 per share – a reduction of 98% – ending Cogent's streak of 52 straight quarters of increasing its dividend.
On this news, the Cogent's stock price fell 56% from November 6, 2025 through November 13, 2025, as the market digested the adverse revelations and their impact to Cogent's business and prospects.
Subsequently, on February 20, 2026, Cogent announced its fourth quarter 2025 financial results, disclosing that wavelength revenue increased sequentially to $12.1 million for the quarter and wavelength customer connections increased sequentially by 314 connections from 1,750 to 2,064. In a break with Cogent's prior practice, management refused to provide a specific backlog amount on the accompanying earnings call.
On this news, Cogent's stock price fell 29%.
Finally, on May 4, 2026, Cogent announced its first quarter 2026 financial results, reporting wavelength revenue had increased sequentially to $13.6 million for the quarter and that its wavelength customer connections had increased sequentially by just 199 connections from 2,064 to 2,263. During the corresponding earnings call, Chief Executive Officer David Schaeffer conceded: "On wavelength installs, we have seen a variety of customers pushing out their acceptance of wavelengths. We actually provisioned more wavelengths in the quarter than we did in the previous quarter, but the customers did not accept them. Decision to push out acceptance is being driven by constraints."
On this news, Cogent's stock price fell 29%.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Danielle Peyton
Pomerantz LLP
646-581-9980 ext. 7980
View original content to download multimedia:https://www.prnewswire.com/news-releases/investor-alert-pomerantz-law-firm-reminds-investors-with-losses-on-their-investment-in-cogent-communications-holdings-inc-of-class-action-lawsuit-and-upcoming-deadlines--ccoi-302838740.html
SOURCE Pomerantz LLP
