Cogent Communications Holdings Securities Fraud Class Action Result of Undisclosed Demand and Backlog Issues and Approximately 29% Stock Decline - Investors May Contact Reed Kathrein at Hagens Berman Sobol Shapiro LLP

Hagens Berman Sobol Shapiro LLP alerts investors in Cogent Communications Holdings (NASDAQ: CCOI) that a securities class action has been filed after questions arose about a key metric's indication about actual growth prospects. The lawsuit seeks to represent investors who purchased or otherwise acquired Cogent common stock between February 29, 2024 and May 1, 2026. National shareholders rights firm Hagens Berman is investigating legal claims that Cogent and the other defendants violated the federal securities laws in connection with its disclosures about the importance of wavelength backlog convertible to recognizable revenues. The firm encourages investors who suffered substantial losses to submit your losses now. Persons with knowledge who may be able to assist the investigation are invited to contact the firm's attorneys.

Class Period: Feb. 29, 2024 - May 1, 2026 Lead Plaintiff Deadline: Sept. 21, 2026

The lawsuit challenges the propriety of Cogent's disclosures about its optical wavelength "backlog," assurances that this metric was somehow an indicator of its expected growth and, by extension, its reasonably expected revenue growth and stock's value. The complaint alleges that Cogent's wavelength backlog was an illusory touted measure and unlikely to ever convert to revenue, that large quantities of customers in the backlog were unable or unwilling to accept delivery even if Cogent was in a position to provision the wavelength in a timely manner and that, as a result, the company materially misrepresented customer demand for its optical wavelength services and the nature of its backlog.

Cracks in Cogent's early Class Period narrative began to emerge on February 27, 2025. That day, Cogent reported disappointing Q4 and FY 2024 financial results and revealed a 20% sequential decline in its backlog and that it removed 1500 orders because many were over one year old. Surprised, the market sent the price of the stock steeply lower. Then, on May 8, 2025, the company reported disappointing Q1 2025 results and said it had more installation capacity than orders ready to be installed. Management said, "we built a funnel of wavelength opportunities with no defined installation window […] [a]nd as expected, the majority of that funnel fell out." The market's reaction was similar to February. In apparent recognition that investors lost faith in the wavelength backlog story, the company abruptly ceased providing backlog data on February 20, 2026, when it reported Q4 and FY 2025 results. Again, the market sent the price of Cogent shares steeply lower. Finally, on May 4, 2026, Cogent reported its Q1 2026 results that again disappointed on wavelength revenue and customer connections. Management conceded "[o]n wavelength installs, we have seen a variety of customers pushing out their acceptance[]" and "[w]e actually provisioned more wavelengths in the quarter than we did in the previous quarter, but the customers did not accept them."

"We're focused on whether Cogent and its management intentionally promoted wavelength backlog and funnel as a way to misrepresent both the company's actual ability to convert them to earned revenues and the real company-centric wavelength demand," said Reed Kathrein , the Hagens Berman partner leading the firm's investigation.