Cogent Communications Holdings Inc. (CCOI) saw its stock price plummet 28.28% during intraday trading on Friday. The sharp decline followed the company's release of its fourth-quarter and full-year 2025 financial results.
While the internet service provider reported a narrower quarterly loss per share of $0.64, beating analyst estimates, investors focused on disappointing top-line performance. Cogent's Q4 service revenue of $240.5 million fell short of consensus forecasts, representing a 4.7% decrease compared to the same period last year. The market reaction suggests concerns over the company's revenue trajectory outweighed the positive earnings-per-share surprise.
The earnings report revealed mixed results, with the company beating EPS expectations but missing revenue targets. This combination led to significant selling pressure as traders reassessed the company's growth prospects amid declining service revenue.