NYSE:ROG
ROGERS CORP
A diversified Canadian telecom giant offering wireless, broadband, and digital media services with a robust asset base but facing recent profitability headwinds.
Key Metrics
Investment Thesis
Bull Case
Investors may favor ROG for its exclusive content assets and dominant wireless market share which provide a defensive moat against competitors. The strong cash flow generation from operations allows the company to fund its substantial common share repurchases of $52.4M, potentially supporting long-term shareholder value despite current earnings volatility.
Bear Case
The stock is vulnerable due to a sharp deterioration in profitability with net income dropping from $26.1M in 2024 to a -$61.8M loss in 2025. A significant retained earnings deficit of $1.12B and negative CFO to Net Income ratio indicate underlying structural issues that could lead to further capital raising or dilution if cash flows do not recover.
About ROGERS CORP
ROG (Rogers Communications) is a leading Canadian telecommunications and media conglomerate providing wireless services, broadband internet, video entertainment, and digital content across Canada. The company serves residential consumers, small businesses, and enterprise clients through its diverse portfolio of assets including Rogers Wireless, Shaw Communications, and Bell Aliant. Key products include 5G mobile connectivity, high-speed fiber internet packages, and exclusive sports broadcasting rights.
Analysis
Management Discussion
Despite a decline in revenue over the last three years, the company maintained substantial operating cash flows of $101.2M in 2025, demonstrating strong liquidity management. However, the shift to a net loss of $61.8M and negative operating profit of -$45.0M signals significant margin compression or one-time charges affecting earnings quality. The company reduced its accounts receivable by $10.8M while increasing inventory drawdowns, suggesting active working capital management amidst revenue contraction.
Industry Overview
The Canadian telecommunications sector is highly consolidated with three major players competing for market share in a saturated residential market. Industry profitability is increasingly challenged by the need for continuous network investment to support 5G deployment and rising content acquisition costs for video services.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $971.2M | $908.4M | $830.1M | $810.8M |
| Cost of Revenue | $650.2M | $601.3M | $553.0M | $554.0M |
| Gross Profit | $321.0M | $307.1M | $277.1M | $256.8M |
| Operating Expenses | $176.6M | $221.8M | $252.2M | $301.8M |
| Operating Income | $144.4M | $85.3M | $24.9M | $-45.0M |
| R&D | $35.2M | $35.7M | $34.6M | $28.1M |
| G&A | $218.8M | $202.3M | $193.4M | $176.6M |
| Stock-Based Comp | $11.8M | $14.3M | $15.1M | $10.9M |
| D&A | $45.9M | $51.1M | $49.4M | $54.3M |
| Depreciation | $29.5M | $37.7M | $37.0M | $43.3M |
| Amortization | $16.4M | $13.4M | $12.4M | $11.0M |
| Other OpEx | $-77.5M | $-16.2M | $24.2M | $97.1M |
| Non-Operating Income | $-4.1M | $-9.0M | $9.4M | $-100.0K |
| Interest Income | $685.0K | $1.2M | $1.4M | $2.9M |
| Pre-Tax Income | $140.4M | $76.3M | $34.3M | $-45.1M |
| Income Tax | $23.8M | $19.7M | $8.2M | $16.7M |
| Continuing Ops | $116.6M | $56.6M | $26.1M | $-61.8M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $116.6M | $56.6M | $26.1M | $-61.8M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $116.6M | $56.6M | $26.1M | $-61.8M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $659.9M | $526.9M | $493.9M | $500.0M |
| Cash & Equivalents | $235.8M | $131.7M | $159.8M | $197.0M |
| Accounts Receivable | $177.4M | $161.9M | $135.3M | $130.6M |
| Inventory | $182.4M | $153.5M | $142.3M | $125.0M |
| Other Current Assets | $64.2M | $79.8M | $56.5M | $47.4M |
| Long-Term Assets | $986.3M | $990.3M | $987.2M | $929.9M |
| Intangibles | $133.7M | $123.9M | $110.3M | $99.3M |
| Goodwill | $352.4M | $359.8M | $357.6M | $303.4M |
| Operating Leases | $13.0M | $18.9M | $24.1M | $19.2M |
| Other LT Assets | $473.2M | $476.6M | $495.2M | $508.0M |
| Total Assets | $1.65B | $1.52B | $1.48B | $1.43B |
| Current Liabilities | $142.5M | $116.4M | $123.5M | $126.1M |
| Accounts Payable | $57.3M | $50.3M | $48.1M | $42.9M |
| Current Leases | $2.8M | $3.5M | $4.0M | $3.9M |
| Taxes Payable | $5.5M | $2.0M | $7.7M | $10.2M |
| Other Current Liab | $76.8M | $60.6M | $63.7M | $69.1M |
| Long-Term Liabilities | $331.2M | $141.8M | $106.0M | $108.1M |
| Long-Term Debt | $215.0M | $30.0M | $0 | — |
| LT Operating Leases | $10.7M | $15.4M | $20.6M | $17.9M |
| Other LT Liab | $95.5M | $89.2M | $79.7M | $85.4M |
| Total Liabilities | $473.7M | $258.2M | $229.5M | $234.2M |
| Shareholders' Equity | $1.17B | $1.26B | $1.25B | $1.20B |
| Retained Earnings | $1.10B | $1.16B | $1.18B | $1.12B |
| AOCI | $-85.3M | $-66.4M | $-95.3M | $-47.1M |
| Total L&E | $1.65B | $1.52B | $1.48B | $1.43B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $116.6M | $56.6M | $26.1M | $-61.8M |
| Non-Cash Adjustments | $-57.5M | $121.5M | $118.6M | $194.7M |
| Working Capital Changes | $70.3M | $-46.7M | $-17.6M | $-31.7M |
| Cash from Operations | $129.5M | $131.4M | $127.1M | $101.2M |
| Capital Expenditures | $116.8M | $57.0M | $56.1M | $30.1M |
| Cash from Investing | $-113.1M | $-47.9M | $-45.6M | $-14.8M |
| Debt Issuances | $100.0M | — | — | — |
| Share Buybacks | $25.0M | $0 | $19.8M | $52.4M |
| Cash from Financing | $-10.1M | $-190.3M | $-50.1M | $-53.9M |
| FX Effect | $-2.7M | $2.6M | $-3.3M | $4.7M |
| Net Change in Cash | $3.6M | $-104.2M | $28.1M | $37.2M |
| Beginning Cash | $232.3M | $235.9M | $131.7M | $159.8M |
| Ending Cash | $235.8M | $131.7M | $159.8M | $197.0M |
Frequently Asked Questions
How does ROGERS CORP make money?
The company's revenue is primarily driven by four main segments: Wireless Communications (mobile voice/data), Fixed Broadband (internet services via fiber and cable), Video & Digital Entertainment (streaming and TV content), and Enterprise Solutions (B2B connectivity and cloud services).
What are the main risks for ROG?
Intense competition from Bell and Telus is pressuring data margins and subscriber growth. High capital expenditure requirements for network upgrades pose cash flow strain, as evidenced by the significant investing outflows in 2025. Regulatory changes regarding content licensing fees could further impact profitability in the video segment.
What is ROG's competitive advantage?
Rogers holds a dominant market position in Canada with extensive 5G infrastructure and exclusive rights to major sports leagues like the CFL and NHL. Its integrated ecosystem combining wireless, home internet, and digital media platforms creates high customer stickiness and recurring revenue streams.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.