Cogent Communications (NasdaqGS:CCOI) Q4 2025 Earnings call February 20, 2026 08:30 AM ET Company ParticipantsDave Schaeffer - Founder and CEOFrank G. Louthan - Managing DirectorMichael Funk - SVPNick Del Deo - Managing DirectorTad Weed - CFOConference Call ParticipantsAna Goshko - Managing Director and Research AnalystBrandon Nispel - Equity Research AnalystChristopher Schoell - Equity Research AnalystDavid Barden - Managing Director and Senior Equity AnalystMichael Rollins - Managing Director and Telecomm ...

Cogent Communications (NasdaqGS:CCOI) Q4 2025 Earnings call February 20, 2026 08:30 AM ET Company ParticipantsDave Schaeffer - Founder and CEOFrank G. Louthan - Managing DirectorMichael Funk - SVPNick Del Deo - Managing DirectorTad Weed - CFOConference Call ParticipantsAna Goshko - Managing Director and Research AnalystBrandon Nispel - Equity Research AnalystChristopher Schoell - Equity Research AnalystDavid Barden - Managing Director and Senior Equity AnalystMichael Rollins - Managing Director and Telecomm ...

Group 1: Company Performance - Roku's fourth-quarter earnings exceeded expectations, with a revenue increase of 16% year over year, reaching $1.4 billion, driven by growth in video advertising and streaming distribution services [1][2] - The company reported an operating income of $66 million, a significant improvement from a loss of $39 million in the same quarter last year [3] - Roku's earnings per share were $0.53, surpassing Wall Street's estimates of $0.28 [3] Group 2: Market Position and Growth - Roku is the leading TV platform in the U.S., Canada, and Mexico by hours streamed, with over 90 million logged-in households globally, making its ad platform attractive to advertisers [2] - The company is experiencing record gains in premium subscriptions, aided by the addition of popular services like HBO Max and live sporting events [2] - Management anticipates revenue growth to $5.5 billion in 2026, up from $4.7 billion in 2025, with confidence in sustaining double-digit platform revenue growth and profitability [4]

Financial Data and Key Metrics Changes - In Q4 2025, Roku achieved platform revenue growth of 18%, surpassing $1.2 billion, with Adjusted EBITDA of $169 million and net income of $80 million, all record figures [10][11] - For the full year 2025, platform revenue also grew by 18%, with Adjusted EBITDA of $421 million, representing a margin expansion of 255 basis points, and free cash flow of $484 million, marking over 100% year-over-year growth [11][12] - The company expects Q1 2026 platform revenue growth of over 21% and full-year growth of 18%, with full-year adjusted EBITDA guidance of $635 million, indicating over 50% year-over-year growth [11][12] Business Line Data and Key Metrics Changes - Q4 2025 was Roku's biggest quarter ever for premium subscription net adds, indicating strong performance in the subscription business [7] - The company plans to expand its subscription offerings and deepen integration with leading demand-side platforms in advertising [7][8] Market Data and Key Metrics Changes - Roku is on track to surpass 100 million streaming households globally, with significant growth in both U.S. and international markets [20] - The company is focusing on expanding its retail distribution, particularly in response to Walmart's shift to Vizio's operating system, while also enhancing partnerships with TV OEMs like TCL and Hisense [15][16] Company Strategy and Development Direction - Roku's strategy includes broadening retail distribution and diversifying partnerships, with significant investments in distribution to optimize market presence [15][16] - The company views AI as a significant opportunity, integrating it across its technology stack to improve content discovery, engagement, and monetization [24][25][27] - Roku is focused on maintaining its competitive advantage through its brand strength, monetization capabilities, and unique operating system designed specifically for TV [17][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining double-digit platform revenue growth while continuing to grow profitability, with a strong outlook for 2026 and beyond [8][12] - The company anticipates that international markets will become a larger percentage of overall platform revenue, with ongoing efforts to monetize subscriptions and advertising in regions like Mexico and Canada [44] Other Important Information - Roku has over $1 billion in deferred tax assets, which will keep cash taxes low for many years, contributing to strong free cash flow [12] - The company has initiated a share buyback program, purchasing $150 million of Roku stock in Q4 2025, achieving near 0% dilution [11] Q&A Session Summary Question: Can you help bridge the Q1 revenue outlook of over 21% growth to the full year outlook of about 18% growth? - Management explained that Q1 has easier comps and includes the full benefit of the Frndly acquisition, while visibility into Q1 is stronger than for the second half of the year [10][14] Question: Can you comment on your retail distribution strategy for 2026? - Management stated that they are diversifying retail distribution and optimizing investments across retail and OEM partners, with plans to expand distribution in various channels [15][16] Question: How do you think AI could impact the streaming landscape? - Management expressed excitement about AI reducing content costs, which would increase engagement on the platform, and emphasized that AI is a significant opportunity for Roku [24][25][27] Question: How is the third-party ad demand partnership with Amazon impacting the business? - Management indicated that it is early days for the Amazon partnership, but they are optimistic about its potential to drive growth as it ramps up [32][34] Question: Can you talk about the Howdy launch and Frndly acquisition? - Management reported positive progress with both initiatives, highlighting increased engagement and plans for expansion beyond Roku [86] Question: How do you see the impact of Netflix's acquisition of Warner Bros. on Roku? - Management believes Roku's scale makes it an essential partner for content owners, and they do not anticipate changes in their position regardless of industry consolidation [91] Question: What is the outlook for OPEX growth going forward? - Management expects OPEX to grow in the mid-single digits, with a focus on operational discipline and investment in high-return initiatives [93]

Core Insights - The streaming industry is highly competitive, with multiple players vying for viewer attention, and one notable competitor to Netflix is experiencing significant streaming profits despite a 48% decline in stock value from its peak as of February 5 [1][2] Company Overview - Disney launched its streaming service, Disney+, in November 2019, entering the market significantly later than Netflix, which began streaming in 2007 [4] - Disney's direct-to-consumer (DTC) streaming operations, including Hulu and ESPN+, faced a cumulative operating loss of $4.6 billion in fiscal years 2020 and 2021, leading to investor skepticism about the segment's viability [5] Financial Performance - Disney's DTC division reported an operating profit of $1.3 billion in fiscal 2025, with expectations of $500 million in the current quarter (Q2 2026), marking a $200 million increase from the previous year [6] - The stock is currently trading at a forward price-to-earnings ratio of 16.2, which is below the S&P 500's multiple of 22.2, indicating a potential undervaluation [10] Market Position - Disney has a competitive advantage in the streaming market due to its extensive intellectual property portfolio, including popular franchises like Pixar, Star Wars, and Marvel, which appeal to a broad audience [6][7] - The bundling strategy of Disney+, Hulu, and ESPN is a key focus for management, aimed at reducing customer churn and enhancing subscriber retention [7] Future Outlook - Disney's leadership anticipates double-digit adjusted earnings per share growth for the current fiscal year, suggesting potential for a bull run if streaming profits continue to rise as the company transitions from losses to significant income [10]

Core Viewpoint - The Walt Disney Company is positioned for potential growth in the streaming sector and its experiences segment, despite a recent decline in share price and challenges in traditional cable operations [1]. Streaming Growth - Disney's entry into the streaming market with Disney+ in November 2019 has led to significant subscriber growth, reaching 191 million global subscribers by September 27, 2025, when combined with Hulu+ [4]. - The direct-to-consumer streaming segment is projected to generate $500 million in operating income in Q2 2026, a substantial recovery from a $2.9 billion operating loss in fiscal 2020 [5]. - The launch of a flagship ESPN streaming service indicates Disney's strong positioning in the evolving media landscape [5]. Experiences Segment - The experiences segment, which includes theme parks, cruises, and consumer products, reported $10 billion in revenue and $3.3 billion in operating income in Q1 2026 [6]. - Disney plans to expand its cruise fleet by adding five more ships after the introduction of a new ship for the Asia market, totaling 13 ships [7]. - A 10-year $60 billion investment was announced to enhance the experiences segment, highlighting the company's strategy to attract more visitors to its parks [8]. Financial Strength - Disney shares are trading at a forward price-to-earnings ratio of 15.8, indicating potential for investors [10]. - The company is returning capital to shareholders through a $0.75 semi-annual dividend and plans to buy back $7 billion worth of stock in fiscal 2026, reflecting financial strength [11].

Core Viewpoint - Disney has significantly underperformed the S&P 500 in recent years, but there are signs that this trend may soon change with new leadership and a focus on its profitable experiences segment [1][10]. Leadership Transition - Josh D'Amaro has been appointed as the new CEO, effective March 18, following Bob Iger's interim leadership, which was marked by challenges including box office failures and budget issues with Disney+ [4][3]. - Iger's tenure saw Disney stock gain only 7% compared to a 76.6% gain in the S&P 500, indicating a period of underperformance [9][10]. Financial Performance - Disney's market capitalization stands at $193 billion, with a current stock price of $108.70 and a forward price-to-earnings ratio of 15.7, reflecting low investor confidence [11][16]. - The experiences segment contributed 71.9% of Disney's first-quarter fiscal 2026 operating income, with operating margins of 33.1%, showcasing its importance to the company's financial health [12][13]. Strategic Focus - Disney plans to prioritize quality feature films, streaming, and sports content, while expanding its experiences segment through new parks and cruise fleet growth [14][15]. - D'Amaro's approach includes taking calculated risks, such as expanding into the Middle East with a new Disneyland, which could tap into a large potential customer base [15]. Investment Outlook - The company is viewed as a potential buy for patient value investors, especially if it can maintain strong operating income from its experiences segment and improve streaming margins [16][17]. - The investment thesis for Disney is considered to be at its strongest in recent times, despite the company's historical underperformance [17].

Core Insights - Disney has appointed Josh D'Amaro, the parks division head, as the new CEO, marking a return to leadership from the parks sector after the previous CEO, Bob Chapek, did not meet expectations [1][3] - The selection of D'Amaro indicates a strategic shift towards prioritizing experiences over media, suggesting that Disney will focus more on its parks and experiences business rather than solely on streaming [2][3] Parks Business Performance - Disney is investing $60 billion over the next 10 years in its parks segment, which generated over $36 billion in revenue in 2025, reflecting a 6% growth [4] - In the first quarter of the new year, the parks business achieved $10 billion in revenue, underscoring its importance as a profit driver for the company [4] Streaming Business Context - The streaming business, which was heavily emphasized by Iger in 2017, is no longer viewed as the key to Disney's future, with a shift in focus towards the parks and experiences [2][11] - The streaming sector is now seen as a manageable operations business, with expectations for profit margins around 10%, contrasting with the earlier belief that it would revolutionize consumer behavior [11][14] Leadership Qualities - D'Amaro is noted for his public presence and connection with Disney fans, a quality that was lacking in his predecessor, Bob Chapek [8][9] - His experience includes overseeing the launch of parks in China and investing in digital components, indicating a forward-thinking approach to the parks business [7] Transition and Expectations - The transition from Iger to D'Amaro occurs during a period of reduced optimism regarding the streaming business, with a focus on navigating the current challenges rather than expecting a quick fix [17][18] - The company is expected to leverage its parks business to generate revenue while maintaining a reliance on content to keep customer engagement [12]

Core Viewpoint - Disney has officially announced that Josh D'Amaro will become the next CEO, succeeding Bob Iger on March 18 [1][6] Leadership Transition - Josh D'Amaro, currently the chairman of Disney Experiences, is recognized for his inspiring leadership, innovation, and strategic growth vision, making him the right choice for CEO [2][8] - Bob Iger, who has led Disney for nearly two decades, will transition to a senior advisor role until the end of the year, having played a crucial role in mentoring D'Amaro during the succession process [5][9] Company Strategy and Challenges - D'Amaro's experience has primarily been in the Experiences division, which includes parks and cruises, and he will need to address the challenges posed by declining TV networks and the need to grow streaming profits [3] - The parks division is a significant revenue generator for Disney, and D'Amaro's leadership will be critical in navigating the company's future in an evolving marketplace [3][8] Promotions and Organizational Structure - Dana Walden has been promoted to President and Chief Creative Officer, reporting to D'Amaro, and will focus on ensuring that storytelling and creative expression align with business objectives [4][10] - The management team, including key figures like Alan Bergman and Jimmy Pitaro, will support D'Amaro as he leads the company into its next chapter [11]

Group 1: Disney - The Walt Disney Company has a diverse portfolio in the entertainment industry, including theme parks, movie production, and streaming services like Disney+ and Hulu, with nearly 200 million global subscribers [2] - In September, 7 million subscribers canceled their Disney+ and Hulu subscriptions due to the removal of "Jimmy Kimmel Live!" from the air [3] - Disney's stock rose by 3.34% in 2025, with 20 out of 31 analysts rating it a buy and an average 12-month price target of $132.50 compared to its current price of $113.75 [4] - Disney's trailing twelve-month price-to-earnings (P/E) ratio is 16.62, which is significantly lower than Netflix's [4] Group 2: Netflix - Netflix, originally a DVD rental service, has evolved into a leading streaming platform with a catalog of original series and movies, boasting 300 million global subscribers [5][6] - The company is negotiating a $72 billion equity deal to acquire Warner Bros, including HBO and HBO Max, which may finalize in 2026 but faces competition from a hostile takeover bid by Paramount [6] - Netflix's stock performed slightly better than Disney in 2025, returning 5.45%, with a P/E ratio of 39.33, making it more than twice as expensive as Disney [7] - Of the 43 analysts covering Netflix, 20 rate it a buy, with an average 12-month price target of $126.19 compared to its current price of $93.99 [7] Group 3: Comparison and Conclusion - The choice between Disney and Netflix presents challenges, as both companies have distinct advantages and disadvantages [8] - The P/E ratio comparison indicates that Disney, with a ratio of 16.62, is a more attractive investment compared to Netflix's 39.33 [8]