0001628280-25-038992
SEC filingRevenue declined 4% YoY due to broadband and video customer losses, partially offset by mobile and advertising growth.
For the three months ended June 30, 2025, total revenue decreased 4% year-over-year to $2.15B, driven by declines in broadband (-3%), video (-11%), and telephony (-10%), partially offset by strong growth in mobile (+37%) and news and advertising (+13%). Operating income fell 38% to $311.1M, primarily due to higher restructuring costs ($66.8M vs. -$46.6M in Q2 2024) and increased other operating expenses. Net income swung to a loss of $88.0M from a profit of $21.7M in the prior year, impacted by lower operating income and a $1.7M loss on debt extinguishment. Adjusted EBITDA decreased 7% to $803.8M, as revenue declines outpaced savings from lower programming costs. Free Cash Flow improved to $28.4M from -$40.9M, driven by higher net cash from operating activities.
Broadband revenue declined 3% YoY to $885.1M, reflecting a 160k drop in residential broadband customers to 3.93M, partially offset by rate increases. Video revenue fell 11% to $660.5M, with customer losses of 285.6k year-over-year to 1.74M, plus temporary programming credits in Q1 2025. Telephony revenue decreased 10% to $64.6M, with customer losses of 243.3k to 1.15M. Mobile revenue surged 37% to $37.6M, driven by a 42% increase in mobile lines to 546.4k. Business services and wholesale revenue edged down 2% to $361.8M, as SMB customer losses offset growth from Lightpath. News and advertising revenue rose 13% to $118.8M, benefiting from a Q3 2024 acquisition. Other revenue jumped 49% to $18.7M on higher mobile equipment sales. FTTH customer relationships grew 53% to 663k, with penetration reaching 21.9%.
Management expects programming costs to continue increasing due to contractual rate escalations. The company is investing in its FTTH network build and HFC upgrades to support multi-gig speeds and compete with fiber and wireless providers. A new $1.0B receivables facility was entered in July 2025, with proceeds used for working capital and debt prepayment. The company also completed the sale of certain tower assets for approximately $60M in July 2025, expecting to recognize a gain in Q3 2025. Management believes existing cash, operating cash flows, and credit facility availability will fund operations and capital expenditures for the next twelve months, though longer-term debt repayment depends on capital market access.
As of June 30, 2025, the company held $247M in cash and equivalents, down from $257M at year-end 2024. Total debt (including current portion) stood at $25.287B, an increase of $230M from $25.057B. The company maintains a revolving credit facility with $238M undrawn. Stockholders' deficiency widened to $(625M) from $(457M), driven by net losses. Deferred revenue increased to $104M from $74M.
No purchase commitments or contractual obligations were disclosed in the Notes. The company disclosed legal contingencies, including a copyright infringement lawsuit (Warner Matter) and a supplier dispute, but no monetary commitments were quantified beyond ordinary course.
The company has no share buyback program or dividend policy. During the six months ended June 30, 2025, capital expenditures totaled $740M (17.2% of revenue), primarily for network infrastructure. Net debt increased by $230M as the company borrowed $675M under the revolver and repaid $300M. Lightpath refinanced its term loan to reduce margins. No equity issuance or repurchases occurred.
The company operates as a single segment delivering broadband, video, telephony, and mobile services. Revenue is derived primarily from residential customers (77% of total in Q2 2025), with business services and wholesale contributing 17%, and news/advertising 6%. Geographic mix is not disclosed. Operating income declined 38% YoY to $311M, reflecting higher programming costs and restructuring charges ($67M). The CODM uses consolidated net income as the performance measure.
Operating cash flow (CFO) for the first half of 2025 was $599.4M, down 15.1% from $706.5M in the prior year period, despite a net loss of $159.3M versus net income of $8.8M in the prior year. The primary drivers of CFO were depreciation and amortization ($828.2M) and deferred tax benefits ($260.6M), offset by unfavorable working capital changes including a $62.7M increase in prepaid expenses and a $114.7M increase in accounts payable (favorable). Capital expenditures (capex) rose to $739.6M, representing 123% of CFO, resulting in negative free cash flow coverage of capex. Investing activities also included $7.6M for acquisitions and $1.7M other. Financing activities provided $136.0M, primarily from $675.0M in debt proceeds offset by $404.8M debt repayments and $92.6M in finance lease payments. The company did not repurchase shares or pay dividends in the period. Working capital swings included a significant increase in accounts payable (favorable) and a decrease in interest payable, partially offset by a decrease in prepaid expenses. Overall, the cash flow profile shows heavy capex reliance on debt financing.