Altice USA Reports Second Quarter 2025 Results

Broadband Subscriber Trends Improved Year over Year and Sequentially, with Year over Year Broadband ARPU Growth

Expanded Penetration of Value-Added Products & Services, Including Year-over-Year Fiber and Mobile Growth

Successfully Completed First-of-its-Kind $1.0 Billion Asset-Backed Loan, Secured Primarily by HFC Assets

Altice USA (NYSE:ATUS) today reports results for the second quarter ended June 30, 2025.

Dennis Mathew, Altice USA Chairman and Chief Executive Officer, said: "Our second quarter results reflect continued momentum across our operational and financial priorities. We delivered sequential and year over year improvement in broadband subscriber trends and grew broadband ARPU year over year, reinforcing the strength of our core offering. We saw progress across our footprint, driven by targeted localized offers, improved sales channel performance, and stronger go-to-market execution, while churn reached its lowest second-quarter level in three years. We continued to scale our award-winning network, drove penetration of fiber, mobile, and our value-added services categories, executed efficiencies across workforce, programming, and network operations, and took important steps to enhance our capital structure. With these improvements in place, we remain focused on long-term growth, disciplined execution, and delivering value to our customers, communities, and shareholders."

Second Quarter 2025 Overview

• Total Broadband Primary Service Units (PSUs) Net Losses of -35k in Q2 2025, Ending Total Broadband Subscribers of 4.3 million
  • Broadband net losses of -35k improved year over year, compared to -51k in Q2 2024, and improved sequentially compared to -37k in Q1 2025
• Total revenue of $2.15 billion (-4.2% year over year)
• Net income (loss) attributable to stockholders of ($96.3) million ($(0.21)/share on a diluted basis), compared to $15.4 million ($0.03/share on a diluted basis) in Q2 2024
• Net cash flows from operating activities of $0.4 billion (+34.3% year over year)
• Adjusted EBITDA⁽¹⁾ of $803.8 million (-7.3% year over year) and margin of 37.4%
• Cash capital expenditures of $383.5 million (+10.3% year over year) and capital intensity⁽²⁾ of 17.9% in Q2 2025 (13.9% excluding FTTH and new build⁽³⁾)
• Free Cash Flow (Deficit)⁽¹⁾ of $28.4 million compared to ($40.9) million in Q2 2024

Second Quarter 2025 Key Operational Highlights

• Fiber Growth: Year over Year Acceleration in Net Adds, Reaching 663k Fiber Customers, a 53% Increase in Total Fiber Customers in Q2 2025 Compared to Q2 2024
  • Fiber growth accelerated year over year to +56k fiber net additions, compared to +40k in Q2 2024
  • Over 3 million fiber passings at the end of Q2 2025, with 21.9% customer penetration of the fiber network, up from 15.3% in Q2 2024
• Mobile Growth: Year over Year Acceleration in Line Net Adds, Reaching 546k Mobile Lines, a 42% Increase in Mobile Lines in Q2 2025 Compared to Q2 2024
  • Mobile growth accelerated year over year to +38k mobile line net additions, compared to +33k in Q2 2024
  • Mobile customer penetration of broadband customer base⁽⁴⁾ reached 6.8% at the end of Q2 2025, up from 4.7% in Q2 2024
• Expanded Penetration of New and Existing Value-Added Services
  • In Q2 2025, added +68k video customers to new video tiers, which launched in 2H 2024, through new video customer acquisitions and migrations of existing customers, reaching 168k video customers on new tiers, or 10% of residential video customer base
  • Other new residential value-added services include Total Care and Whole Home Wi-Fi, which reached 90k and 31k subscribers, respectively, at the end of Q2 2025
  • Recently launched SMB value-added services include Connection Back-up, Secure Internet Plus, Device Protection & Insurance, and Pro WiFi internet with marketing solutions, all which continue to scale
• Focused Execution and Transformation to Drive Efficiency
  • Creating greater flexibility and choice for video customers, while improving video gross margin, which grew by approximately 300 basis points year over year
  • Unique service call rate⁽⁵⁾ improved by approximately 3%, and unique service visit rate⁽⁶⁾ improved by approximately 19% Q2 2025 year over year
  • Accelerating AI integration across sales, care, network, and product, using advanced tools designed to deliver smarter customer offers, automate network issue detection, and launch a next-generation customer experience platform that is expected to drive more personalized, efficient customer interactions
  • Implemented approximately 5% workforce reduction, primarily in Q2 2025, to streamline organizational structure, eliminate redundancies, and better align resources with key priorities, all while enhancing the customer experience
  • These operating efficiencies reinforce our goal of delivering approximately $3.4 billion dollars of Adjusted EBITDA⁽¹⁾⁽⁷⁾ in FY 2025.
• Expanding and Enhancing Our Networks with Efficiency
  • Added +35k total passings and +28k fiber passings in Q2 2025; targeting 175k total new passings in FY 2025, primarily as fiber new builds
  • Focus on high-impact network investments, paired with ongoing efforts to enhance cost efficiency; targeting approximately $1.2bn cash capital expenditures in FY 2025
  • Implemented new Access Network Automation monitoring tool to address multi-passing maintenance upgrades more efficiently
  • Mid-split upgrades on DOCSIS 3.1 network continue, and are expected to enable multi-gig speeds to a portion of HFC passings in 2026
  • Lightpath continues to expand in hyperscaler community with additional contracts secured in the quarter
• Completed Landmark $1.0 Billion Primarily HFC Asset-Backed Loan
  • On July 16, 2025, Cablevision Funding LLC, an indirect wholly-owned subsidiary of Altice USA, Inc. entered into a $1.0 billion Receivables Facility Loan and Security Agreement with lenders Goldman Sachs and TPG Angelo Gordon. The Asset-Backed Loan Facility is secured by certain receivables generated by the Company's Bronx and Brooklyn service area and network assets, located in that area, and matures in January 2031

Balance Sheet Review as of June 30, 2025

• Net debt⁽⁸⁾ for CSC Holdings, LLC Restricted Group was $23,558 million at the end of Q2 2025, representing net leverage of 8.0x L2QA⁽⁹⁾
  • The weighted average cost of debt for CSC Holdings, LLC Restricted Group was 6.9% and the weighted average life of debt was 3.6 years
• Net debt⁽⁸⁾ for Cablevision Lightpath LLC was $1,476 million at the end of Q2 2025, representing net leverage of 5.7x L2QA⁽⁹⁾
  • The weighted average cost of debt for Cablevision Lightpath LLC was 5.3%⁽¹⁰⁾ and the weighted average life of debt was 2.6 years
• Consolidated net debt⁽⁸⁾ for Altice USA was $25,000 million, representing consolidated net leverage of 7.8x L2QA⁽⁹⁾
  • The weighted average cost of debt for consolidated Altice USA was 6.8%⁽¹⁰⁾ and the weighted average life of debt was 3.6 years

Shares Outstanding

• As of June 30, 2025, Altice USA had 468,644,764 combined shares of Class A and Class B common stock outstanding

Reconciliation of Non-GAAP Financial Measures

We define Adjusted EBITDA, which is a non-GAAP financial measure, as net income (loss) excluding income taxes, non-operating income or expenses, gain (loss) on extinguishment of debt and write-off of deferred financing costs, gain (loss) on interest rate swap contracts, gain (loss) on derivative contracts, gain (loss) on investments and sale of affiliate interests, interest expense, net, depreciation and amortization, share-based compensation, restructuring, impairments and other operating items (such as significant legal settlements and contractual payments for terminated employees). We define Adjusted EBITDA margin as Adjusted EBITDA divided by total revenue.

Adjusted EBITDA eliminates the significant non-cash depreciation and amortization expense that results from the capital-intensive nature of our business and from intangible assets recognized from acquisitions, as well as certain non-cash and other operating items that affect the period-to-period comparability of our operating performance. In addition, Adjusted EBITDA is unaffected by our capital and tax structures and by our investment activities.

We believe Adjusted EBITDA is an appropriate measure for evaluating our operating performance. Adjusted EBITDA and similar measures with similar titles are common performance measures used by investors, analysts and peers to compare performance in our industry. Internally, we use revenue and Adjusted EBITDA measures as important indicators of our business performance and evaluate management's effectiveness with specific reference to these indicators. We believe Adjusted EBITDA provides management and investors a useful measure for period-to-period comparisons of our core business and operating results by excluding items that are not comparable across reporting periods or that do not otherwise relate to our ongoing operating results. Adjusted EBITDA should be viewed as a supplement to and not a substitute for operating income (loss), net income (loss), and other measures of performance presented in accordance with U.S. generally accepted accounting principles ("GAAP"). Since Adjusted EBITDA is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with similar titles used by other companies.

We also use Free Cash Flow (defined as net cash flows from operating activities less cash capital expenditures) as a liquidity measure. We believe this measure is useful to investors in evaluating our ability to service our debt and make continuing investments with internally generated funds, although it may not be directly comparable to similar measures reported by other companies.

About Altice USA

Altice USA (NYSE:ATUS) is one of the largest broadband communications and video services providers in the United States, delivering broadband, video, mobile, proprietary content and advertising services to approximately 4.5 million residential and business customers across 21 states through its Optimum brand. We operate Optimum Media, an advanced advertising and data business, which provides audience-based, multiscreen advertising solutions to local, regional and national businesses and advertising clients. We also operate News 12, which is focused on delivering best-in-class hyperlocal news content.

FORWARD-LOOKING STATEMENTS

Certain statements in this earnings release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this earnings release, including, without limitation, those regarding our intentions, beliefs or current expectations concerning, among other things, our future financial condition, liquidity and results of operations; our strategy, objectives, prospects and trends; our 2025 priorities: revenue opportunity (including broadband, mobile and fiber growth and deepening penetration of new and existing product offerings), operational efficiency (including workforce optimization, programming agreements and our AI capabilities), network enhancements (including our ability to expand our passings footprint, deliver multi-gig speeds on HFC and our hyperscaler expansion opportunities) and sustainable capital structure; our go-to-market strategies, our ability to achieve targets for Adjusted EBITDA, value-added services, other operating expense and cash capital expenditures; our long-term ARPU growth; the anticipated impact of the recent tax reform on us; and future developments in the markets in which we participate or are seeking to participate. These forward-looking statements can be identified by the use of forward-looking terminology, including without limitation the terms "anticipate", "believe", "could", "estimate", "expect", "forecast", "intend", "may", "opportunity", "plan", "project", "should", "target", "outlook", or "will" or, in each case, their negative, or other variations or comparable terminology. Where, in any forward-looking statement, we express an expectation or belief as to future results or events, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. To the extent that statements in this earnings release are not recitations of historical fact, such statements constitute forward-looking statements, which, by definition, involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements including risks referred to in our SEC filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and subsequent Quarterly Reports on Form 10-Q. You are cautioned to not place undue reliance on Altice USA's forward-looking statements. Any forward-looking statement speaks only as of the date on which it was made. Altice USA specifically disclaims any obligation to publicly update or revise any forward-looking statement, as of any future date.

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