• In the fourth quarter of 2025, Taylor Frigon Capital Management fully exited its position in Cogent Communications Holdings, selling 73,271 shares amid persistent questions about the company’s ability to turn growth into sustainable free cash flow.
• At the same time, Cogent’s upcoming February 20, 2026 earnings call takes on added importance as investors weigh thin operating cash flow against areas of operational progress such as wavelength revenue and EBITDA margin trends.
• We’ll now examine how Taylor Frigon’s complete exit, against the backdrop of weak operating cash flow, shapes Cogent’s investment narrative.

The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 24 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement.

What Is Cogent Communications Holdings' Investment Narrative?

To own Cogent today, you have to believe its network assets and wavelength growth can eventually support consistent free cash flow, despite a long run of losses and negative equity. The sharp share price fall over the past year and Taylor Frigon’s full exit underline how fragile that belief has become, especially with operating cash flow still thin and the dividend dramatically reduced in late 2025. The February 20 earnings call now feels like a near term credibility test: investors will be focused less on top line progress and more on whether EBITDA margin gains are translating into cash that can service debt and justify continued buybacks. Taylor Frigon stepping aside does not change Cogent’s fundamentals, but it raises the stakes around execution risk and capital allocation discipline.

However, investors should be aware of how thin operating cash flow interacts with Cogent’s debt load. Cogent Communications Holdings' shares have been on the rise but are still potentially undervalued by 41%. Find out what it's worth.

Exploring Other Perspectives

Five Simply Wall St Community members place Cogent’s fair value between US$21 and about US$42. Those views sit against a story still dominated by weak operating cash flow and a sharply reduced dividend, which together shape expectations for how quickly any operational progress might show up in shareholder outcomes.

Explore 5 other fair value estimates on Cogent Communications Holdings - why the stock might be worth as much as 70% more than the current price!

Build Your Own Cogent Communications Holdings Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Cogent Communications Holdings research is our analysis highlighting 1 key reward and 4 important warning signs that could impact your investment decision.
• Our free Cogent Communications Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Cogent Communications Holdings' overall financial health at a glance.

Ready For A Different Approach?

Opportunities like this don't last. These are today's most promising picks. Check them out now:

• Find companies with promising cash flow potential yet trading below their fair value.
• We've found 13 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.
• AI is about to change healthcare. These 111 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.