Cogent Q4 Service Revenue Falls 4.7% to $240.5M, Triggers 29% Stock Plunge
Cogent Communications reported Q4 service revenue of $240.5 million, down 4.7% year-over-year and missing analyst forecasts, alongside a loss of $0.64 per share. The company’s free cash flow swung to a $43 million burn, driving a 29.1% stock plunge.
1. Disappointing Q4 Results
Cogent reported Q4 service revenue of $240.5 million, a 4.7% decrease year-over-year, missing consensus estimates, and posted a loss of $0.64 per share, which, despite being narrower than forecast, failed to offset revenue concerns.
2. Escalating Cash Burn
The company’s free cash flow swung negative, with a $43 million cash burn in the quarter, up from $31.6 million in the prior year’s period, highlighting rising operational funding needs.
3. Sharp Share Plunge
Shares fell 29.1% in morning trading, marking one of the largest single-day declines in recent history and underscoring investor anxiety over the revenue miss and deepening cash drain.