0001702780-25-000010
SEC filingRevenue declined 5% YoY to $6.41B, with Adjusted EBITDA down 6% to $2.43B, impacted by impairment and customer losses.
For the nine months ended September 30, 2025, Altice USA reported total revenue of $6.408 billion, down 4.6% from $6.719 billion in the prior-year period. The decline was driven by losses in broadband (-3.2%), video (-10.8%), and telephony (-9.3%), partially offset by strong growth in mobile services (+40.6%). Operating income swung to a loss of $510 million from a gain of $1.34 billion, primarily due to a $1.61 billion non-cash impairment charge on cable franchise rights. Adjusted EBITDA decreased 5.5% to $2.433 billion, with margin contracting modestly to 38.0% from 38.3%.
Broadband revenue fell 3.2% to $2.658 billion as customer losses and lower ARPU outweighed rate increases. Video revenue dropped 10.8% to $1.971 billion, reflecting a 4.1% decline in video subscribers and temporary programming credits. Telephony revenue decreased 9.3% to $193 million due to customer churn. Conversely, mobile service revenue surged 40.6% to $117 million, supported by a 39.1% increase in mobile lines to 584,400. Business services and wholesale revenue edged down 1.2% to $1.087 billion, with SMB declines offset by Lightpath growth. News and advertising revenue was nearly flat at $327 million, with lower political ad revenue offset by an acquisition. Other revenue grew 39% to $54 million on higher mobile equipment sales.
Management highlighted plans to continue investing in fiber-to-the-home (FTTH) expansion and network upgrades. The company expects programming costs to rise due to contractual rate increases, though this may be partially offset by lower video customer counts. With free cash flow turning negative $318 million, the company is focused on managing leverage through free cash flow and access to revolving credit facilities, emphasizing that existing cash and credit availability provide adequate liquidity for the next twelve months. However, no specific revenue or margin guidance was provided.
As of September 30, 2025, the Company held $938.8M in cash and cash equivalents, a significant increase from $256.5M at December 31, 2024, driven largely by the July 2025 NYC ABS issuance. Total debt (carrying value) stood at $26,237.6M, including $95.2M classified as current. The Company's stockholders' deficiency worsened to -$2,242.2M from -$469.2M, primarily due to the $1.6B impairment charge and cumulative net losses. Restricted cash increased to $82.2M (short-term) and $22.7M (long-term) related to the NYC ABS structure.
The Notes disclose no aggregate purchase commitments or contractual obligations table for the interim period. However, the Company is party to various legal proceedings, including the Warner Matter (copyright infringement) and a breach of contract suit by Netceed. The Company believes these matters will not have a material adverse effect, though outcomes remain uncertain. Future principal debt maturities are detailed: $19.2M in 2025, $76.8M in 2026, $7,385.0M in 2027, $5,420.2M in 2028, $3,850.0M in 2029, and $9,527.8M thereafter.
No share buybacks were reported. No dividends were declared or paid. Net debt increased by $1,180.1M during the nine months, with $1,835.0M in new borrowings (including $875.0M drawn on the CSC Holdings revolver and $1,000.0M from the NYC ABS) and $577.6M in repayments. Capital expenditures totaled $1,065.2M, representing 16.6% of revenue. The Company also completed a sale of tower assets for $59.9M, recording a $55.1M gain.
The Company operates as a single operating segment. Revenue is disaggregated by service type: Residential ($4,938.9M, -5.9% YoY), Business services and wholesale ($1,087.2M, -1.2% YoY), News and advertising ($327.0M, -0.5% YoY), and Other ($54.4M, +39.0% YoY). Within Residential, Broadband revenue declined 4.0% to $2,658.1M, Video fell 10.8% to $1,971.3M, Telephony dropped 9.3% to $192.8M, while Mobile grew 40.6% to $116.6M. No geographic mix is provided.
Operating cash flow (CFO) of $746.9 million for the nine months ended September 30, 2025, was significantly lower than the prior-year period's $1.14 billion, a decline of 34.6%. This occurred despite a net loss of $1.78 billion (versus a $32 million loss in 2024), largely due to a $1.61 billion non-cash impairment charge. Excluding that impairment, CFO still fell, driven by unfavorable working capital changes—notably a $143 million decrease in accounts payable and a $65.7 million decrease in interest payable.
Capital expenditures (capex) rose to $1.07 billion from $1.04 billion, representing a capex intensity (capex/CFO) of 142.6%, meaning the company spent more on capex than it generated from operations. Free cash flow (CFO minus capex) was negative $318.3 million, compared to positive $99.5 million in the prior period.
Financing activities provided $1.05 billion, primarily from $1.84 billion in debt proceeds offset by $577.6 million in repayments and $98.3 million in finance lease payments. No share repurchases or dividends were reported. The company ended the period with $1.04 billion in cash, cash equivalents, and restricted cash, up from $256.8 million at year-end 2024.