Cogent Communications updates incentive plan, bylaws

Published 08/05/2025, 17:24
Cogent Communications updates incentive plan, bylaws

Cogent Communications Holdings, Inc. (NASDAQ:CCOI), currently valued at $2.3 billion, announced several key updates following its Annual Meeting held on May 7, 2025. According to InvestingPro data, the company maintains a strong dividend program with 13 consecutive years of increases, despite recent profitability challenges. The company’s stockholders approved amendments to its incentive award plan and bylaws, and elected directors during the meeting.

The approved Second Amended and Restated Cogent Communications Holdings, Inc. 2017 Incentive Award Plan will increase the number of shares available for issuance by 1.5 million shares, extend the date to which awards can be made under the Plan to May 7, 2035, and make updates to reflect current market practices.

Additionally, stockholders voted to approve Amended and Restated Bylaws of the company. These amendments include a change to Article III, Section 12, adjusting the size of the Board to be not less than six nor more than eight directors, with the exact number within such range to be fixed exclusively by the Board.

During the Annual Meeting, all nominated directors were elected to the Board, with votes for each director ranging from 38,983,833 to 40,589,554 in favor. The company also reported that the proposal to ratify the appointment of Ernst & Young LLP as the independent registered public accountants for the fiscal year ending December 31, 2025, was approved with 42,433,416 votes in favor.

Furthermore, the proposal to approve named executive officer compensation was passed with 35,794,728 votes for it. The information provided is based on a press release statement.

In other recent news, Cogent Communications Holdings Inc. reported its first-quarter 2025 earnings, which revealed a slight miss on both earnings per share (EPS) and revenue compared to forecasts. The company’s EPS stood at -1.09 USD, against a forecast of -1.05 USD, while revenue reached 247 million USD, falling short of the projected 251.36 million USD. Despite this, Cogent demonstrated resilience with a 1.9% increase in EBITDA as adjusted, reaching 68.8 million USD, and an improvement in gross margin by 790 basis points year-over-year. Wavelength services saw a 14% year-over-year revenue increase, highlighting operational strengths amidst financial challenges. The company maintains a long-term annual revenue growth target of 6-8% and aims for an EBITDA margin expansion of 50 basis points annually. Cogent anticipates returning to total revenue growth by mid-Q3 2025, with corporate revenues projected to grow by 4-5% and the NetCentric segment expected to see over 10% growth. Additionally, the potential sale of data centers remains under negotiation, which could influence future revenue. Analysts from firms like Goldman Sachs and TD Cowen have shown interest in the company’s growth trajectory and operational strategies.

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