Cogent Communications (CCOI) saw its stock price plummet 15.14% in pre-market trading following the release of its disappointing third-quarter 2025 financial results. The company reported a net loss and significantly reduced its quarterly dividend, raising concerns among investors about its financial health and growth prospects.

According to the earnings report, Cogent posted a Q3 basic loss per share of $0.87, which was better than the expected loss of $1.02 per share. However, the company's net income for the quarter was deeply negative at -$41.544 million. The EBIT (Earnings Before Interest and Taxes) came in at -$18.128 million, also beating estimates but still in negative territory. The gross margin stood at a concerning 20.6%, while the adjusted gross margin was 45.8%.

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. Investors will be closely watching for any guidance or strategic plans from management to turn around the company's performance in the coming quarters.