Cogent Communications (NASDAQ: CCOI) saw its stock price plummet 29.82% in pre-market trading on Thursday, following the release of its disappointing third-quarter 2025 financial results. The significant drop reflects investors' concerns about the company's continued losses, weak financial performance, and a drastic reduction in its quarterly dividend.

The telecommunications company reported a Q3 loss of $0.87 per share, which, while better than the FactSet estimate of a $1.10 loss, still represents a substantial negative earnings figure. Cogent's revenue for the quarter fell 5.9% to $241.95 million, missing analysts' expectations of $245.99 million. The company's net income for the quarter was deeply negative at -$41.544 million, with EBIT (Earnings Before Interest and Taxes) coming in at -$18.128 million.

Adding to investor worries, Cogent announced a quarterly dividend of just $0.02 per share for Q4 2025, a substantial reduction from previous payouts. This dividend cut, combined with the weak financial performance, likely contributed to the sharp sell-off in pre-market trading. The company's gross margin stood at a concerning 20.6%, while the adjusted gross margin was 45.8%. Despite some metrics beating lowered expectations, Cogent's overall financial health appears to be struggling, leading to a significant loss of investor confidence in the company's ability to turn its financials around in the near term.