Q4 Earnings Recap: Mixed Results for Lamar, DNOW, and Cogent
The three reports painted a mixed picture: Lamar delivered growth but missed earnings, DNOW struggled post-merger, and Cogent improved profitability more than Wall Street expected.
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The recent earnings reports from Lamar Advertising Company (NASDAQ: LAMR), DNOW Inc. (NYSE: DNOW), and Cogent Communications Holdings, Inc. (NASDAQ: CCOI) present a diverse picture of performance across different industries. Each company has faced unique challenges and opportunities, reflecting broader market trends and individual strategic decisions.
Lamar Advertising reported a revenue increase, beating expectations, but fell short on earnings per share (EPS). DNOW Inc. experienced a challenging quarter, missing both revenue and EPS expectations. Cogent Communications, on the other hand, managed to surpass EPS expectations despite a slight revenue shortfall. These varied results underscore the complex landscape in which these companies operate, influenced by factors such as mergers, acquisitions, and market demand.
Lamar Holds Up, DNOW Slips, Cogent Improves
Lamar Advertising Company reported net revenues of $595.9 million for the fourth quarter of 2025, marking a 2.8% increase from the previous year. While this figure surpassed the revenue expectation of $591.94 million, the company’s EPS of $1.50 fell short of the anticipated $1.57.
This discrepancy was attributed to various factors, including adjustments in asset retirement obligations. Despite the EPS miss, Lamar’s revenue growth indicates a positive trajectory, supported by strong sales momentum and robust performance in both local and national markets.
DNOW Inc. faced a challenging quarter, with revenues of $959 million falling short of the expected $987.67 million. The company also missed its EPS target, reporting $0.15 against an expectation of $0.16. The merger with MRC Global, completed in November 2025, played a significant role in the company’s financial results, with transaction charges impacting net income.
Despite these hurdles, DNOW’s adjusted EBITDA reached $61 million, reflecting the company’s ongoing efforts to optimize operations and integrate the newly acquired business.
Cogent Communications reported a service revenue of $240.5 million for the fourth quarter, slightly below the expected $243.71 million. However, the company exceeded EPS expectations, reporting a loss of $0.64 per share compared to the anticipated loss of $1.03.
This improvement was driven by increased efficiency and strategic cost management, as well as growth in specific revenue streams such as wavelength services. Cogent’s focus on expanding its network and service offerings has positioned it well for future growth, despite current revenue challenges.
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What’s Next: 2026 Guidance and Key Strategic Priorities
Lamar Advertising provided guidance for fiscal year 2026, anticipating net income per diluted share to be between $5.72 and $5.83, with diluted AFFO per share ranging from $8.50 to $8.70. The company remains optimistic about its sales trends and market positioning, though it acknowledges potential risks related to economic conditions and regulatory changes.
Lamar’s strategic focus on digital billboard expansion and maintaining its REIT status are expected to drive growth in the coming year.
DNOW Inc. did not provide specific forward guidance in its earnings release, but the company emphasized its commitment to addressing challenges related to the integration of MRC Global.
Management expressed confidence in achieving merger-related synergies and enhancing operational efficiencies. As DNOW continues to navigate the complexities of its ERP system transition, the company remains focused on long-term growth and value creation for shareholders.
Cogent Communications highlighted its strategic initiatives, including the expansion of optical wavelength services and the construction of a wavelength network using owned fiber. The company approved a quarterly dividend of $0.02 per share for Q1 2026, reflecting its commitment to returning value to shareholders.
Looking ahead, Cogent aims to capitalize on its expanded service offerings and network capabilities, positioning itself for sustainable growth despite current market challenges. The company’s ability to manage foreign exchange impacts and leverage its IP Transit Services Agreement with T-Mobile will be critical to its future success.
Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.
Tim Fries
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
