Constructing 130-Route Miles of New AI-Grade Fiber Infrastructure Anchored by Major Hyperscalers NEW YORK, Aug. 27, 2025 /PRNewswire/ -- Lightpath, an all-fiber infrastructure-based connectivity provider that is revolutionizing how organizations connect to their digital destinations, announced it will construct 130- route miles of AI-grade fiber infrastructure in Eastern Pennsylvania to connect the rapidly developing hyperscale data center ecosystem in the region. The Susquehanna region in Eastern Pennsylva ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company's unaudited financial statements show a net loss of $88.0 million for Q2 2025, driven by declining revenues [Consolidated Financial Statements (Altice USA, Inc.)](index=4&type=section&id=Consolidated%20Financial%20Statements%20(Altice%20USA%2C%20Inc.)) The company reported a Q2 2025 net loss of $88.0 million and a significant decline in operating cash flow Altice USA, Inc. Consolidated Balance Sheet Summary (in thousands) | Metric | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $739,268 | $730,992 | | **Total Assets** | $31,619,129 | $31,701,370 | | **Total Current Liabilities** | $2,241,810 | $2,254,796 | | **Long-term Debt** | $25,214,989 | $24,872,015 | | **Total Liabilities** | $32,244,623 | $32,158,202 | | **Total Stockholders' Deficiency** | $(625,494) | $(456,832) | Altice USA, Inc. Consolidated Statement of Operations Summary (in thousands, except per share) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $2,147,203 | $2,240,755 | $4,299,485 | $4,491,690 | | **Operating Income** | $311,123 | $501,582 | $654,581 | $894,736 | | **Net Income (Loss)** | $(87,986) | $21,702 | $(159,257) | $8,806 | | **Basic EPS** | $(0.21) | $0.03 | $(0.37) | $(0.01) | Altice USA, Inc. Consolidated Cash Flow Summary - Six Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $599,448 | $706,455 | | **Net Cash used in Investing Activities** | $(745,555) | $(685,893) | | **Capital Expenditures** | $(739,643) | $(683,816) | | **Net Cash from Financing Activities** | $135,982 | $40,311 | [Supplemental Financial Statements (CSC Holdings, LLC)](index=10&type=section&id=Supplemental%20Financial%20Statements%20(CSC%20Holdings%2C%20LLC)) Key subsidiary CSC Holdings, LLC reported a Q2 2025 net loss of $93.0 million and a total member's deficiency of $635.8 million - CSC Holdings' balance sheet shows total assets of **$31.62 billion** and total liabilities of **$32.26 billion**, leading to a total deficiency of **$635.8 million**[20](index=20&type=chunk) CSC Holdings, LLC Statement of Operations Summary (in thousands) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $2,147,203 | $2,240,755 | $4,299,485 | $4,491,690 | | **Operating Income** | $306,381 | $501,582 | $648,320 | $894,736 | | **Net Income (Loss)** | $(93,018) | $21,702 | $(166,735) | $8,806 | [Combined Notes to Consolidated Financial Statements](index=15&type=section&id=Combined%20Notes%20to%20Consolidated%20Financial%20Statements) Notes detail revenue composition, $25.3 billion in debt, legal contingencies, and subsequent financing events Revenue Composition - Six Months Ended June 30 (in thousands) | Revenue Source | 2025 | 2024 | | :--- | :--- | :--- | | **Residential Broadband** | $1,784,700 | $1,831,983 | | **Residential Video** | $1,326,108 | $1,495,039 | | **Residential Telephony** | $131,045 | $142,668 | | **Residential Mobile** | $74,320 | $52,372 | | **Business services and wholesale** | $725,333 | $734,151 | | **News and advertising** | $221,181 | $211,005 | | **Total Revenue** | $4,299,485 | $4,491,690 | - As of June 30, 2025, the company had total principal debt of **$25.32 billion**, primarily consisting of various Senior Notes and Credit Facilities[58](index=58&type=chunk) - The company is defending against a **copyright infringement lawsuit** from Warner Records, currently stayed pending a Supreme Court decision[102](index=102&type=chunk) - Subsequent to the quarter, the company secured a **$1.0 billion receivables loan** and sold tower assets for approximately **$60 million**[117](index=117&type=chunk)[119](index=119&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Revenue declined 4.2% YoY in Q2 2025 due to customer losses, leading to lower Adjusted EBITDA and negative Free Cash Flow [Results of Operations](index=36&type=section&id=Results%20of%20Operations) Q2 2025 revenue fell 4.2% YoY to $2.15 billion, driven by residential customer losses, though FTTH customers showed growth Q2 Revenue Performance (in thousands) | Revenue Category | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Broadband** | $885,139 | $914,989 | (3.3%) | | **Video** | $660,540 | $739,445 | (10.7%) | | **Mobile** | $37,621 | $27,479 | 36.9% | | **Business services & wholesale** | $361,788 | $369,290 | (2.0%) | | **News and advertising** | $118,771 | $105,280 | 12.8% | | **Total Revenue** | $2,147,203 | $2,240,755 | (4.2%) | - Adjusted EBITDA for Q2 2025 was **$803.8 million**, a **7.3% decrease** from $867.2 million in Q2 2024, primarily due to the decline in revenue[141](index=141&type=chunk)[167](index=167&type=chunk) - Total customer relationships declined to **4.46 million**, though **FTTH customers grew to 663,000** with passings reaching over 3.0 million[142](index=142&type=chunk) [Liquidity and Capital Resources](index=46&type=section&id=Liquidity%20and%20Capital%20Resources) The company reported a Free Cash Flow deficit of $140.2 million for H1 2025 and subsequently secured a $1.0 billion loan - As of June 30, 2025, total debt outstanding was **$25.29 billion**, split between the CSC Holdings Restricted Group ($23.75B) and Lightpath ($1.53B)[189](index=189&type=chunk) Free Cash Flow (Deficit) - Six Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash flows from operating activities** | $599,448 | $706,455 | | **Less: Capital expenditures (cash)** | $(739,643) | $(683,816) | | **Free Cash Flow (Deficit)** | $(140,195) | $22,639 | - In July 2025, a subsidiary entered into a Receivables Facility Loan providing **$1.0 billion** in term loan commitments[198](index=198&type=chunk)[199](index=199&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=52&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate exposure on its variable-rate debt, managed with interest rate swaps - The company's main market risk exposure is to **interest rate fluctuations** on its variable-rate debt[227](index=227&type=chunk) - The fair value of the company's fixed-rate debt was **$13.03 billion**, which is **$4.68 billion lower** than its carrying value of $17.71 billion[206](index=206&type=chunk) - The company uses interest rate swap contracts to manage interest rate risk, with a net fair value asset of **$2.9 million**[71](index=71&type=chunk)[207](index=207&type=chunk) [Controls and Procedures](index=52&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes - Management concluded that disclosure controls and procedures were **effective** as of the end of the period, June 30, 2025[227](index=227&type=chunk) - There were **no material changes** in internal control over financial reporting during the quarter[228](index=228&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=53&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in a significant copyright infringement lawsuit filed by Warner Records, which is currently stayed - The company is a defendant in a **copyright infringement lawsuit** filed by Warner Records Inc, which is currently stayed[102](index=102&type=chunk)[230](index=230&type=chunk) [Other Information](index=53&type=section&id=Item%205.%20Other%20Information) No other material information was reported for the period - No information was reported under this item[231](index=231&type=chunk) [Exhibits](index=53&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including required CEO and CFO certifications - Lists exhibits filed with the report, including **CEO and CFO certifications** under the Sarbanes-Oxley Act[232](index=232&type=chunk)

Financial Performance - Altice USA reported a quarterly loss of $0.21 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.06, marking an earnings surprise of -250.00% [1] - The company posted revenues of $2.15 billion for the quarter ended June 2025, missing the Zacks Consensus Estimate by 0.19%, and down from $2.24 billion a year ago [2] - Over the last four quarters, Altice USA has not surpassed consensus EPS or revenue estimates [2] Stock Performance - Altice USA shares have declined approximately 0.8% since the beginning of the year, while the S&P 500 has gained 7.9% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.04 on revenues of $2.15 billion, and -$0.27 on revenues of $8.61 billion for the current fiscal year [7] - The trend of estimate revisions for Altice USA has been unfavorable leading up to the earnings release [6] Industry Context - The Communication - Components industry, to which Altice USA belongs, is currently ranked in the bottom 35% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Altice USA's stock performance [5]

Financial Data and Key Metrics Changes - Total revenue declined by 4.2% year over year, remaining relatively flat quarter over quarter, primarily impacted by video cord cutting, which accounted for about 85% of total revenue declines [28][29] - Adjusted EBITDA of $840 million declined 7.3% year over year but grew slightly sequentially, reflecting continued operating discipline and efficiency [31] - Adjusted EBITDA margin decreased by 130 basis points to 37.4%, but improved sequentially by 30 basis points [31] Business Line Data and Key Metrics Changes - Broadband subscriber net losses improved to 35,000, a year-over-year improvement of 16,000 or 31% [8][12] - Video business saw 58,000 subscriber net losses, marking the best subscriber trends in the last ten quarters [5][12] - Fiber network added approximately 56,000 customers, with a penetration rate of 22% across the fiber network [14] Market Data and Key Metrics Changes - In the East footprint, the company delivered its best net add trend in ten quarters, driven by stronger win share performance against ILECs and fixed wireless [9] - In the West, competition remained strong, but performance improved year over year, including fewer seasonal disconnects [9] - The company reported a 10% lift in sales volume in income-constrained markets compared to control markets [11] Company Strategy and Development Direction - The company is focused on unlocking revenue opportunities, driving operational efficiency, enhancing networks, and ensuring a sustainable capital structure [3][7] - The introduction of new product tiers in video and the expansion of value-added services are aimed at increasing customer stickiness and driving long-term ARPU growth [16][20] - The company is leveraging AI to enhance customer experience and operational efficiency, including the deployment of AI tools in sales and customer care [23][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver continued operational and financial improvements over time, despite headwinds from competition and macroeconomic factors [26][32] - The company anticipates that adjusted EBITDA will improve sequentially over the next two quarters, with significant impacts expected in the fourth quarter [33][92] - Management highlighted the importance of maintaining a balanced approach to subscriber growth and ARPU management [77][92] Other Important Information - The company completed a $1 billion asset-backed loan, marking a significant milestone in capital structure management [38][39] - The recent tax reform is expected to yield savings of $250 million to $350 million over the period of 2025 to 2027 [40] Q&A Session Summary Question: Can you expand on the trajectory and opportunity in mobile? - Management highlighted improvements in mobile line net adds, with a focus on quality sales and increased penetration, aiming for a million lines by 2027 [46][49] Question: What is the typical profile of a new mobility subscriber? - Approximately 50% of new mobility subscribers are new customers, with a strong focus on fiber subscribers due to better NPS and ARPU [52][53] Question: How is the company competing against larger, well-capitalized competitors? - The company is seeing improvements in win share against larger telcos and fiber overbuilders, particularly through hyper-local strategies [59][60] Question: What subscriber or ARPU results are needed in the back half of the year? - Management reaffirmed guidance for revenue and EBITDA, expecting improvements driven by subscriber performance and operational efficiencies [91][92]

Financial Performance - Altice USA is driving towards approximately $3.4 billion of Adjusted EBITDA in FY 2025[11] - Q2 2025 revenue was $2.147 billion, a decrease of 4.2% year-over-year[25,49] - Adjusted EBITDA for Q2 2025 was $804 million, a decrease of 7.3% year-over-year, with a margin of 37.4%[25,49] - Cash capital expenditures for Q2 2025 were $384 million, representing 17.9% of revenue, an increase of 10.3% year-over-year[30,49] Subscriber and ARPU Trends - Improved broadband subscriber trends were observed in Q2 2025, with a 31% improvement in net adds compared to Q2 2024[13,15] - Broadband ARPU grew year-over-year in Q2 2025, reaching $74.77[13,25] - Fiber customer net adds reached 56,000 in Q2 2025, compared to 40,000 in Q2 2024[20] - Mobile line net adds reached 38,000 in Q2 2025, compared to 33,000 in Q2 2024[20] Network and Operational Enhancements - The company added 35,000 total passings in Q2 2025 and 61,000 in H1 2025, with a focus on fiber passings[35] - Service visit rates improved by approximately 19% year-over-year in Q2 2025[22] - Workforce optimization led to approximately a 5% headcount reduction[23] Capital Structure - Altice USA completed a $1 billion primarily HFC Asset-Backed Loan in July 2025[13,36,38] - The weighted average cost of debt is 6.9%, and the weighted average life of debt is 3.6 years[40] - Liquidity is approximately $1.5 billion as of June 30, 2025[40]

[Q2 2025 Executive Summary](index=1&type=section&id=Q2%202025%20Executive%20Summary) Altice USA reported improved broadband subscriber trends and year-over-year ARPU growth in Q2 2025, despite a revenue decline and a net loss, highlighting progress in fiber and mobile penetration, operational efficiencies, and a significant $1.0 billion asset-backed loan to enhance its capital structure - CEO Dennis Mathew emphasized continued momentum, citing **improved broadband subscriber trends**, **year-over-year broadband ARPU growth**, and the **lowest second-quarter churn in three years**, driven by targeted offers, better sales execution, and scaling of value-added services[2](index=2&type=chunk) Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | $2.15 billion | $2.24 billion | -4.2% | | Net Income (Loss) | ($96.3) million | $15.4 million | N/A | | Diluted EPS | ($0.21) | $0.03 | N/A | | Adjusted EBITDA | $803.8 million | $867.2 million | -7.3% | | Net Cash from Operating Activities | $0.4 billion | $0.3 billion | +34.3% | | Free Cash Flow (Deficit) | $28.4 million | ($40.9) million | N/A | - The company successfully completed a first-of-its-kind **$1.0 billion asset-backed loan**, secured primarily by its HFC assets in the Bronx and Brooklyn service areas, maturing in January 2031[1](index=1&type=chunk)[8](index=8&type=chunk) [Key Operational Performance](index=1&type=section&id=Key%20Operational%20Performance) The company demonstrated operational improvements with reduced broadband net losses, accelerated growth in fiber and mobile subscribers, and enhanced customer service metrics, alongside strategic initiatives including new value-added services and AI integration for efficiency [Broadband and Customer Trends](index=1&type=section&id=Broadband%20and%20Customer%20Trends) Broadband net losses improved to -35k, a positive trend both year-over-year (from -51k) and sequentially (from -37k), attributed to targeted offers and better execution, with churn at a three-year low for the second quarter Broadband Subscriber Net Losses (in thousands) | Period | Net Losses | | :--- | :--- | | Q2 2025 | -35 | | Q1 2025 | -37 | | Q2 2024 | -51 | - The improvement in broadband trends was driven by **targeted localized offers**, **improved sales channel performance**, and **stronger go-to-market execution**[2](index=2&type=chunk) [Fiber Network Growth](index=1&type=section&id=Fiber%20Network%20Growth) Fiber customer base grew by 53% year-over-year, reaching 663k subscribers, with net additions accelerating to +56k and customer penetration on the fiber network increasing significantly to 21.9% from 15.3% a year ago - Fiber net additions accelerated to **+56k** in Q2 2025, compared to **+40k** in Q2 2024[5](index=5&type=chunk) Fiber Network Penetration | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Fiber Customers (in thousands) | 663 | 434 | | Total Fiber Passings (in millions) | 3.0 | 2.8 | | Customer Penetration | 21.9% | 15.3% | [Mobile Business Expansion](index=2&type=section&id=Mobile%20Business%20Expansion) The mobile segment showed strong growth, with a 42% year-over-year increase in lines to 546k, as mobile net additions accelerated compared to the prior year and penetration of the broadband customer base rose to 6.8% - Mobile line net additions accelerated to **+38k** in Q2 2025 from **+33k** in Q2 2024[9](index=9&type=chunk) Mobile Subscriber Growth | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Mobile Lines (in thousands) | 546 | 385 | | Mobile Penetration of Broadband Base | 6.8% | 4.7% | [Efficiency and Network Initiatives](index=2&type=section&id=Efficiency%20and%20Network%20Initiatives) Altice USA implemented a 5% workforce reduction and improved service call rates to drive efficiency, reinforcing its goal of approximately $3.4 billion in FY 2025 Adjusted EBITDA, while focusing on high-impact network investments including fiber builds and DOCSIS 3.1 upgrades - A workforce reduction of approximately **5%** was implemented, primarily in Q2 2025, to streamline the organization and align resources with key priorities[9](index=9&type=chunk) - Customer service metrics improved year-over-year, with the unique service call rate down by **~3%** and the unique service visit rate down by **~19%**[9](index=9&type=chunk) - The company is targeting approximately **$1.2 billion** in cash capital expenditures and **175k** new passings for FY 2025, with a focus on fiber new builds and DOCSIS 3.1 mid-split upgrades[9](index=9&type=chunk) [Financial Performance](index=5&type=section&id=Financial%20Performance) In Q2 2025, Altice USA generated $2.15 billion in revenue, a 4.2% decrease year-over-year, reporting a net loss of $96.3 million compared to a net income of $15.4 million in Q2 2024, with Adjusted EBITDA also declining by 7.3% to $803.8 million, though net cash from operating activities for the quarter increased significantly [Consolidated Operating Results (Income Statement)](index=5&type=section&id=Consolidated%20Operating%20Results%20(Income%20Statement)) The decline in total revenue was primarily driven by lower Residential revenue, particularly from the Video segment which fell to $660.5 million from $739.4 million year-over-year, with operating income falling to $311.1 million from $501.6 million due to lower revenue and higher restructuring costs, resulting in a net loss influenced by a substantial income tax benefit compared to the prior year's expense Q2 2025 Selected Income Statement Data (in millions) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Revenue | $2,147.2 | $2,240.8 | | Residential Revenue | $1,647.9 | $1,753.6 | | Operating Income | $311.1 | $501.6 | | Interest Expense, net | ($444.7) | ($443.0) | | Net Income (Loss) | ($88.0) | $21.7 | | Net Income (Loss) to Stockholders | ($96.3) | $15.4 | [Cash Flow Statement](index=6&type=section&id=Cash%20Flow%20Statement) For the six months ended June 30, 2025, net cash from operating activities decreased to $599.4 million from $706.5 million in the prior year period, impacted by a net loss and changes in working capital, while net cash used in investing activities increased to $745.6 million from $685.9 million due to higher capital expenditures Six Months Ended June 30 - Cash Flow Highlights (in millions) | Line Item | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $599.4 | $706.5 | | Capital Expenditures | ($739.6) | ($683.8) | | Net Cash Used in Investing Activities | ($745.6) | ($685.9) | | Net Cash Provided by Financing Activities | $136.0 | $40.3 | | Net (Decrease) in Cash | ($9.2) | $60.1 | [Customer Metrics](index=4&type=section&id=Customer%20Metrics) The company ended Q2 2025 with 4.46 million total unique customer relationships, a decline from the previous year, with net losses seen across residential broadband, video, and telephony services, though the rate of broadband loss has slowed, while mobile lines and FTTH customers continued to show strong growth [Overall Customer Metrics](index=4&type=section&id=Overall%20Customer%20Metrics) In Q2 2025, residential broadband net losses were -35.0k, an improvement from -51.0k in Q2 2024, while video and telephony services continued to experience significant subscriber declines, and mobile line net additions were strong at +37.8k Q2 2025 Key Customer Net Additions (in thousands) | Service | Q2 2025 Net Additions | Q2 2024 Net Additions | | :--- | :--- | :--- | | Total Customers | (43.6) | (54.5) | | Residential Broadband | (35.0) | (51.0) | | Video | (56.1) | (72.8) | | Mobile Lines | 37.8 | 33.0 | - Residential ARPU was **$133.68** in Q2 2025, a decrease from **$135.95** in Q2 2024, however, Broadband ARPU increased to **$74.77** from **$74.13** over the same period[13](index=13&type=chunk) [Fiber (FTTH) Customer Metrics](index=4&type=section&id=Fiber%20(FTTH)%20Customer%20Metrics) The FTTH business demonstrated robust growth, with total customer relationships reaching 663.0k, up from 434.1k in Q2 2024, as the company added 56.3k total FTTH customers in the quarter, driven primarily by residential additions FTTH Customer Growth (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | FTTH Total Passings | 3,023.4 | 2,842.0 | | FTTH Total Customers | 663.0 | 434.1 | | FTTH Total Net Additions | 56.3 | 39.5 | [Balance Sheet and Debt Profile](index=3&type=section&id=Balance%20Sheet%20and%20Debt%20Profile) As of June 30, 2025, Altice USA had consolidated net debt of $25.0 billion, with a consolidated net leverage ratio of 7.8x L2QA Adjusted EBITDA, a weighted average cost of debt of 6.8%, and an average life of 3.6 years, with a key financing activity being the completion of a $1.0 billion asset-backed loan Consolidated Net Debt and Leverage (as of June 30, 2025) | Metric | Value | | :--- | :--- | | Consolidated Net Debt | $25.0 billion | | Consolidated Net Leverage (L2QA) | 7.8x | | Weighted Average Cost of Debt | 6.8% | | Weighted Average Life of Debt | 3.6 years | - The CSC Holdings, LLC Restricted Group held the majority of the debt, with **$23.6 billion** in net debt and a net leverage of **8.0x L2QA**[12](index=12&type=chunk) - On July 16, 2025, the company entered into a **$1.0 billion** Receivables Facility Loan secured by certain receivables and network assets, maturing in January 2031[8](index=8&type=chunk) [Reconciliation of Non-GAAP Financial Measures](index=7&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) The company provides reconciliations for Adjusted EBITDA and Free Cash Flow, with Q2 2025 Adjusted EBITDA at $803.8 million (down from $867.2 million in Q2 2024 and margin contracting to 37.4%), and Free Cash Flow improving to a positive $28.4 million from a deficit of $40.9 million in the prior-year quarter, driven by higher net cash from operations and managed capital expenditures - Adjusted EBITDA is defined as net income excluding items like taxes, interest, D&A, share-based compensation, and restructuring costs, and is used to evaluate operating performance[17](index=17&type=chunk)[18](index=18&type=chunk) - Free Cash Flow is defined as net cash flows from operating activities less cash capital expenditures and is used as a liquidity measure[20](index=20&type=chunk) Q2 Non-GAAP Reconciliation Summary (in millions) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Income (Loss) | ($88.0) | $21.7 | | Adjusted EBITDA | $803.8 | $867.2 | | Adjusted EBITDA Margin | 37.4% | 38.7% | | Net Cash from Operating Activities | $412.0 | $306.8 | | Free Cash Flow (Deficit) | $28.4 | ($40.9) |

Group 1 - Cablevision Lightpath LLC, a fiber communication service provider controlled by Altice USA Inc., plans to sell asset-backed securities totaling up to $2.8 billion supported by its fiber network assets and customer agreements [1] - Lightpath is facing significant debt pressure with a total of $7.2 billion in debt maturing in 2027 and an additional $5.4 billion due the following year, prompting the company to seek financing through asset-backed securities [1] - Following the announcement, Altice USA's stock surged by 16%, indicating positive market reaction to the financing strategy [1] Group 2 - The asset-backed securities (ABS) market, particularly for infrastructure such as fiber cables, is rapidly developing and becoming an important financing channel for companies, as evidenced by Zayo Group Holdings Inc. issuing $1.5 billion in similar bonds earlier this year [2]

Company Overview - Cablevision Lightpath, 一家由 Altice USA 控股的光纤通信服务提供商，计划出售高达 28 亿美元的资产支持证券 [1]

Core Viewpoint - Altice USA, Inc. reported disappointing first-quarter 2025 results, with both net income and revenues falling short of expectations, primarily due to weak demand in key segments, although there were positive developments in mobile and fiber customer growth, network upgrades, and customer care improvements [1][2]. Financial Performance - The company recorded a net loss of $71.3 million, or 16 cents per share, compared to a loss of $12.3 million, or 5 cents per share, in the same quarter last year, indicating a wider loss due to declining revenues [2]. - Total revenues for the quarter were $2.15 billion, down from $2.25 billion year-over-year, missing the consensus estimate of $2.16 billion, primarily due to reduced net sales from broadband and video customers [2]. - Operating income decreased to $343.5 million from $393.2 million in the prior-year quarter, while adjusted EBITDA fell to $799.01 million from $846.5 million [7]. Customer Metrics - FTTH (Fiber to the Home) broadband net additions exceeded 68,500 in the quarter, with total fiber broadband customers reaching 606,700 [4]. - Residential average revenue per user (ARPU) declined to $133.93 from $135.67 a year ago, reflecting a loss of higher ARPU video customers [4][6]. Segment Performance - Residential revenues, which include Broadband, Video, and Telephony, were $1.66 billion, down from $1.76 billion year-over-year, missing the estimate of $1.71 billion [6]. - Business services and Wholesale revenues slightly declined to $363.5 million from $364.9 million in the prior-year quarter, but net sales exceeded the revenue estimate of $341.8 million [5]. Growth Strategies - The company is making progress in its growth strategies by enhancing network capabilities and improving customer experience, with 2.99 billion FTTH passings at the quarter-end [3]. - Altice is on track to achieve its goal of adding 1 million fiber customers by the end of 2026, supported by new offerings like Whole Home WiFi and Total Care [2]. Cash Flow and Outlook - In the first quarter, Altice generated $187.4 million in cash from operating activities, down from $399.6 million a year ago, with a net debt of $24.9 billion as of March 31, 2025 [8]. - For 2025, the company expects revenues in the range of $8.6-8.7 billion and adjusted EBITDA of approximately $3.4 billion, with capital expenditures projected at $1.2 billion [10].

Revenue Performance - Total revenue for the three months ended March 31, 2025, was $2,152,282, a decrease of $98,653 compared to $2,250,935 in the same period of 2024[134]. - Residential revenue accounted for approximately 77.6% of total revenue, totaling $1,668,240, down from $1,768,446 in the prior year[134]. - Broadband revenue decreased by $17,433 to $899,561, while mobile revenue increased by $11,806 to $36,699[134]. - For the three months ended March 31, 2025, the net loss was $71,271, compared to a net loss of $12,896 for the same period in 2024[135]. - Adjusted EBITDA for the three months ended March 31, 2025 was $799,014, down from $846,555 in 2024, representing a decrease of 5.6%[135]. - Video revenue decreased by $90,026 (12%) to $665,568 for the three months ended March 31, 2025, attributed to declines in video customers and higher customer credits[139]. - Telephony revenue decreased by $4,553 (6%) to $66,412 for the three months ended March 31, 2025, due to declines in telephony customers[140]. - Other revenue increased by $6,184 (52%) to $18,087 for the three months ended March 31, 2025, mainly due to higher mobile equipment sales[146]. Customer Metrics - Approximately 4.5 million residential and business customers are served across 21 states, with a total of 9.9 million passings as of March 31, 2025[119]. - Total customer relationships as of March 31, 2025 were 4,505.9 thousand, a decrease from 4,550.3 thousand in 2024, indicating a decline in customer base[137]. - Broadband revenue decreased by $17,433 (2%) to $899,561 for the three months ended March 31, 2025, primarily due to declines in broadband customers[138]. - Mobile service revenue increased by $11,806 (47%) to $36,699 for the three months ended March 31, 2025, driven by an increase in mobile customers[141]. Operating Income and Expenses - Operating income for the three months ended March 31, 2025, was $343,458, down from $393,154 in the same period of 2024, reflecting a decrease of $49,696[134]. - Programming and other direct costs were $670,531, a decrease of $73,356 from $743,887 in the same period of 2024[134]. - Other operating expenses increased by $23,936 (4%) to $698,186 for the three months ended March 31, 2025, driven by higher labor-related costs and marketing expenses[150][153]. - Restructuring, impairments, and other operating items for Q1 2025 totaled $21,622, a decrease of 58% from $51,253 in Q1 2024[154]. - Depreciation and amortization increased by $30,094 (8%) to $418,485 in Q1 2025 compared to $388,391 in Q1 2024, driven by asset additions and accelerated depreciation[155][156]. Cash Flow and Debt - Free Cash Flow (Deficit) was $(168,641) in Q1 2025, a decrease of $232,207 from $63,566 in Q1 2024, attributed to increased interest payments and capital expenditures[160][161]. - Net cash flows from operating activities were $189,707 in Q1 2025, down from $399,662 in Q1 2024[171]. - Net cash provided by operating activities decreased to $187,483 for the three months ended March 31, 2025, compared to $399,661 in 2024, reflecting a decrease of $212,178[199]. - Net cash used in investing activities increased to $363,549 for the three months ended March 31, 2025, compared to $335,777 in 2024[201]. - Financing activities generated net cash of $198,727 for the three months ended March 31, 2025, a significant improvement from $(80,876) in 2024[202]. - As of March 31, 2025, total outstanding debt for CSC Holdings and Lightpath is $25,299,643, with interest expense for the quarter amounting to $430,658[179]. - Total amounts payable related to outstanding obligations for CSC Holdings and Lightpath are projected to be $31,647,534, with significant payments due in 2027 totaling $8,716,046[180]. Future Outlook - The company is investing in its FTTH network to deliver multi-gig broadband speeds to meet growing data needs[127]. - The company expects programming costs to increase in the future, impacting operating expenses[126]. - The company expects to utilize free cash flow and revolving credit facilities to manage debt obligations and capital expenditures[176][177]. - Existing cash balances and operating cash flows are projected to support the company's operating plan and debt service requirements for the next twelve months[177]. Financial Controls - The company reported no changes in internal control over financial reporting that materially affected its operations during Q1 2025[212]. - The evaluation of disclosure controls and procedures concluded that they were effective as of March 31, 2025, according to the Chief Executive Officer and Chief Financial Officer[211].