Cogent Communications Holdings, Inc. has restarted its share buyback program, giving management the flexibility to repurchase shares when market conditions are favorable. The move signals confidence in the company’s financial position and a commitment to returning value to shareholders.
The decision follows the release of Q3 2025 financial results, which showed service revenue of $241.9 million, a 1.7 % decline from the prior quarter and a 5.9 % year‑over‑year drop. Despite the revenue decline, the company’s EBITDA rose to $48.8 million, a 36 % increase from the same period last year, lifting the EBITDA margin to 20.2 % from 13.9 % in Q3 2024.
Net loss narrowed to $41.5 million, compared with $63.1 million a year earlier, and the diluted earnings‑per‑share loss of $0.87 beat the consensus estimate of –$1.15. The earnings beat was largely driven by disciplined cost management and a favorable shift in the mix toward higher‑margin wavelength services, which grew 12.4 % sequentially and 92.5 % year‑over‑year.
Management noted that foreign‑exchange fluctuations and lower office‑occupancy rates weighed on revenue, but emphasized that the company remains optimistic about future growth, particularly in the high‑growth wavelength segment and the potential benefits of the Sprint acquisition. The company also highlighted ongoing investments in network infrastructure to support AI‑driven demand.
While analysts have expressed caution, citing the revenue decline and continued unprofitability, the resumption of the buyback program reflects management’s view that the shares are undervalued and that capital can be deployed more efficiently than through dividends alone.
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