Cogent Q4 Revenue Slides 4.7% to $240.5M, EPS Beats by 34%
Cogent Communications reported Q4 revenue of $240.5 million, down 4.7% year on year and missing estimates by 1.2%, while GAAP EPS loss narrowed to $0.64 per share, beating forecasts by 34.1%. Adjusted EBITDA of $76.7 million fell short by 0.7%, and operating margin improved to -4.7% from -13%.
1. Q4 Financial Results
In the fourth quarter, Cogent Communications generated revenue of $240.5 million, a 4.7% decline from a year earlier and 1.2% below estimates. The company posted a GAAP loss of $0.64 per share, beating forecasts by 34.1%, and reported adjusted EBITDA of $76.7 million against projected $77.3 million.
2. Profitability and Cash Flow
Operating margin improved to negative 4.7% from negative 13% in the prior year, reflecting cost efficiencies, while free cash flow weakened to negative $43.0 million from negative $31.6 million. Total network connections reached 117.6 million and the company’s market capitalization stood at $1.25 billion.
3. Market Reaction and Outlook
Shares declined 1.7% following the mixed results, and analysts project revenue growth of 3% over the next 12 months. Market forecasts anticipate the full-year EPS loss narrowing to negative $3.59, suggesting potential earnings improvement despite ongoing top-line challenges.