Accessibility StatementSkip Navigation Project strengthens Lightpath's leadership in delivering ultra-high scale fiber infrastructure required to connect multiple new AI data center deployments in the Columbus region. NEW YORK, Dec. 2, 2025 /PRNewswire/ -- Lightpath, an all-fiber, infrastructure-based connectivity provider that is revolutionizing how organizations connect to their digital destinations, announced the expansion of its AI-grade network in Greater Columbus, Ohio. This latest project adds appro ...

Core Insights - Altice USA Inc. reported disappointing third-quarter 2025 results, with both net income and revenues falling short of the Zacks Consensus Estimate, primarily due to weak demand in Residential, Business Services, and Wholesale segments [1] Financial Performance - The company recorded a net loss of $1.62 billion, equating to a loss of $3.47 per share, compared to a net loss of $42.9 million or 9 cents per share in the same quarter last year [2] - Total revenues for the quarter were $2.1 billion, down 5.4% year over year, missing the consensus estimate of $2.14 billion [3][10] - Adjusted earnings per share were reported as a loss of 12 cents, missing the Zacks Consensus Estimate by 8 cents [2] Revenue Breakdown - Residential revenues, which include Broadband, Video, and Telephony, decreased to $1.62 billion from $1.73 billion year over year, missing the estimate of $1.68 billion [7] - Business Services and Wholesale revenues fell to $361.9 million from $366.3 million in the prior year, but exceeded the revenue estimate of $339.6 million [6] - News and Advertising revenues declined to $105.9 million from $117.7 million year over year, missing the estimate of $106.7 million [6] Customer Metrics - Fiber broadband net additions exceeded 40,400 in the quarter, with total fiber broadband customers reaching 703,400 [5][10] - The company had 3.05 billion FTTH (Fiber to the Home) passings, with approximately 29,600 added during the quarter [4] - The average revenue per user (ARPU) for residential customers declined to $133.28 from $135.77 a year ago [5] Operational Highlights - The company reported an operating loss of $1.16 billion compared to a net income of $444.9 million in the prior year [8] - Adjusted EBITDA was $830.7 million, down from $861.9 million in the same quarter last year [8] - Mobile line net additions were 38,000 during the quarter, contributing to overall growth [8] Cash Flow and Debt - Altice generated $147.5 million in cash from operating activities, a significant decrease from $436 million a year ago [11] - As of September 30, 2025, the company's net debt stood at $25.3 billion [11]

Customer Base and Services - The company serves approximately 4.4 million residential and business customers across 21 states, with a total of 9.9 million passings as of September 30, 2025[142]. - For the nine months ended September 30, 2025, residential broadband, video, telephony, and mobile services accounted for approximately 41%, 31%, 3%, and 2% of consolidated revenue, respectively[144]. - The company derives 17% of its consolidated revenue from business services, including broadband, telephony, networking, video, and mobile services[146]. - Total customer relationships as of September 30, 2025, were 4,400.5 thousand, down from 4,462.2 thousand as of June 30, 2025[158]. - Total mobile lines as of September 30, 2025, increased to 584.4 thousand from 546.4 thousand as of June 30, 2025[158]. - Penetration of total passings for residential customers was 44.3% as of September 30, 2025, down from 45.1% as of June 30, 2025[158]. Financial Performance - Total revenue for the three months ended September 30, 2025, was $2,108.1 million, a decrease of 5.4% compared to $2,227.7 million in the same period of 2024[156]. - Net loss attributable to Altice USA, Inc. stockholders for the three months ended September 30, 2025, was $1,625.9 million, compared to a net loss of $42.97 million in the same period of 2024[156]. - Adjusted EBITDA for the three months ended September 30, 2025, was $830.7 million, a decrease of 3.6% from $862.0 million in the same period of 2024[157]. - Total revenue for the nine months ended September 30, 2025, was $6,407.6 million, a decrease of 4.6% from $6,719.4 million in the same period of 2024[156]. - Operating income for the three months ended September 30, 2025, was $(1,164.8) million, compared to an operating income of $444.6 million in the same period of 2024[156]. - Adjusted EBITDA decreased by $31,319 (4%) to $830,657 for Q3 2025, and by $142,225 (6%) to $2,433,483 for the nine months ended September 30, 2025, compared to the same periods in 2024[182]. Revenue Breakdown - Broadband revenue decreased by $39,968 (4%) to $873,449 for Q3 2025, and by $87,251 (3%) to $2,658,149 for the nine months ended September 30, 2025, compared to the same periods in 2024[159]. - Video revenue decreased by $69,910 (10%) to $645,207 for Q3 2025, and by $238,841 (11%) to $1,971,315 for the nine months ended September 30, 2025, compared to the same periods in 2024[160]. - Telephony revenue decreased by $8,086 (12%) to $61,791 for Q3 2025, and by $19,709 (9%) to $192,836 for the nine months ended September 30, 2025, compared to the same periods in 2024[161]. - Mobile service revenue increased by $11,714 (38%) to $42,277 for Q3 2025, and by $33,662 (41%) to $116,597 for the nine months ended September 30, 2025, compared to the same periods in 2024[162]. - Business services and wholesale revenue decreased by $4,469 (1%) to $361,886 for Q3 2025, and by $13,287 (1%) to $1,087,219 for the nine months ended September 30, 2025, compared to the same periods in 2024[165]. - News and advertising revenue decreased by $11,819 (10%) to $105,863 for Q3 2025, and remained relatively stable for the nine months ended September 30, 2025, at $327,044[167]. - Other revenue increased by $2,948 (20%) to $17,637 for Q3 2025, and by $15,274 (39%) to $54,435 for the nine months ended September 30, 2025, compared to the same periods in 2024[168]. Cash Flow and Capital Expenditures - Free Cash Flow (Deficit) for the three months ended September 30, 2025, was $(178.1) million, compared to a positive Free Cash Flow of $76.9 million in the same period of 2024[157]. - Free Cash Flow (Deficit) was $(178,072) and $(318,267) for the three and nine months ended September 30, 2025, respectively, a decrease of $254,937 and $417,771 compared to the same periods in 2024[186]. - Net cash flows from operating activities were $148,108 for the three months ended September 30, 2025, compared to $333,595 in the same period of 2024[196]. - Capital expenditures for the three months ended September 30, 2025, were $325,520, compared to $359,159 in the same period of 2024[196]. - Net cash provided by operating activities for CSC Holdings was $750,819 for the nine months ended September 30, 2025, down from $1,040,051 in the same period of 2024[238]. - Capital expenditures on a cash basis for the nine months ended September 30, 2025, totaled $1,065,163, compared to $1,042,975 in 2024[234]. Debt and Financial Obligations - Total debt outstanding as of September 30, 2025, was $26,237,618, which includes credit facility debt of $7,549,952 and senior guaranteed notes of $10,679,227[205]. - Interest expense for the nine months ended September 30, 2025, was $1,346,621, which includes $1,252,279 from credit facility debt and senior notes[205]. - The company expects to utilize Free Cash Flow and revolving credit facilities to manage debt obligations and capital expenditures in the upcoming year[201]. - Total amounts payable related to outstanding obligations, including interest, are projected to be $32,310,872, with significant payments due in 2026 and 2027[207]. - Future refinancing transactions will depend on market conditions, which may impact the company's ability to manage its debt obligations[201]. - The net leverage ratio for CSC Holdings is calculated as net debt to L2QA EBITDA, indicating a focus on managing leverage effectively[200]. Operational Challenges and Outlook - The company faces competition from various broadband and telephony providers, impacting customer demand and service selection[148]. - Future performance is influenced by economic conditions, competition, and the ability to manage operations effectively[143]. - The company emphasizes the importance of managing capital expenditures to avoid delays and disruptions in network and service development[150]. - The ongoing FTTH network build aims to deliver multi-gig broadband speeds to meet growing data needs, alongside investments in HFC network upgrades[150]. Miscellaneous - The company recorded a gain of $55,114 from the sale of certain tower assets for $59,908 in July 2025[231]. - Commitments and contingencies decreased to approximately $4,300,000 as of September 30, 2025, down from approximately $4,900,000 as of December 31, 2024[244]. - The company reported no changes in internal control over financial reporting that materially affected its financial reporting during the nine months ended September 30, 2025[247]. - The evaluation of disclosure controls and procedures concluded that they were effective as of September 30, 2025[246].

Financial Performance - Altice USA reported total revenue of $2.11 billion for Q3 2025, representing a 5.4% decrease year-over-year and slightly below forecasts [1] - The company posted a GAAP loss per share of $3.47, a significant decline from a loss of $0.09 in the same quarter last year, and worse than the consensus estimate of a $0.05 loss [1] - Free cash flow was negative $178.1 million, a sharp reversal from a positive $76.87 million in the same quarter of the previous year [1] Subscriber Trends - The broadband subscriber count for Altice USA fell by 167,300 year-over-year, indicating ongoing operational challenges [1] Market Reaction - Shares of Altice USA fell 5.5% in the morning session following the disappointing financial results, reflecting the market's perception of the news as significant but not fundamentally altering its view of the business [3] - The stock has shown extreme volatility, with 41 moves greater than 5% over the last year, suggesting a pattern of overreaction to news [3]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $2.1 billion, a decline of 5.4% year-over-year, primarily driven by video cord cutting, which accounted for nearly 6% of total declines [15][16] - Adjusted EBITDA was $831 million, down 3.6% year-over-year, but showed a 3.3% sequential improvement compared to Q2 2025 [18][22] - Gross margin reached an all-time high of 69.7%, expanding by 160 basis points year-over-year, reflecting a shift away from video [17][24] - Adjusted EBITDA margin improved to 39.4%, the highest in two years, indicating progress in operational efficiency [18][22] Business Line Data and Key Metrics Changes - Video revenues declined close to 10%, contributing significantly to overall revenue declines, while mobile service revenue grew by 38% [7][15] - LightPath revenue increased by almost 6%, and underlying news and advertising revenue, excluding political ads, grew nearly 9% [7][15] - The company lost 58,000 broadband subscribers in Q3, reflecting ongoing competitive pressures [9][10] Market Data and Key Metrics Changes - Competitive intensity increased significantly in September, with competitors ramping up marketing spend and aggressive offers [5][30] - The market remains characterized by historically low growth and heightened competition, particularly from fixed wireless and fiber overbuilders [9][10] Company Strategy and Development Direction - The company is focused on evolving its go-to-market and base management strategies to improve broadband performance and revenue trajectory [6][10] - A disciplined approach prioritizing financial stability and margin protection over subscriber growth is being emphasized [5][30] - The company plans to enhance its product offerings and customer experience to rebuild trust and drive long-term growth [14][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by competitive pressures and macroeconomic conditions but expressed confidence in achieving the full-year adjusted EBITDA target of approximately $3.4 billion [4][22] - The company expects to see a path to slowing revenue decline in core residential and B2B businesses, with a focus on disciplined R2 management and value-added services [18][43] - Management highlighted the importance of maintaining discipline in subscriber acquisition costs and avoiding low-value gross ads [30][34] Other Important Information - The company announced a rebranding from Altice USA to Optimum Communications, effective November 7, 2025, with a new ticker symbol OPTU [28][29] - Capital expenditures for 2025 are projected to be approximately $1.3 billion, reflecting increased investment in LightPath and network upgrades [25][26] Q&A Session Summary Question: Broadband subscriber trends and competitive pressures - Management acknowledged the widening net losses in broadband subscribers due to increased competitive intensity and aggressive offers from competitors [30][31] Question: Cost structure and EBITDA guidance - Management provided insights on operating expense moderation and emphasized the importance of maintaining discipline in subscriber acquisition costs [31][37] Question: Pricing environment and competitive dynamics - Management discussed the need for a balanced approach to pricing and volume, emphasizing the importance of quality and value in their offerings [56][58] Question: Update on low-end product for rural areas - Management reported double-digit improvement in sales and connect rates for the income-constrained product and plans to scale it further [48][49] Question: 2027 debt maturity wall - Management refrained from discussing specific capital structure details but emphasized a disciplined approach to managing financials [52][53]

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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 ...

Core Insights - Lightpath announces a major network expansion adding approximately 100 route miles of new fiber across Long Island, southern Connecticut, northern New Jersey, and Westchester County, enhancing its regional footprint and supporting a leading U.S. wireless carrier [1][2]. Group 1: Network Expansion - The expansion is part of a multi-phase deployment that utilizes roughly 70% of existing on-net infrastructure built over the past three years for other national carriers, showcasing the company's ability to scale quickly and cost-effectively [2]. - The newly added routes are designed to support 5G and AI-driven network deployments, providing high-capacity backhaul and aggregation for bandwidth-intensive applications [3]. Group 2: Customer Offerings - Customers in the expansion areas will gain access to Lightpath's full portfolio of all-fiber connectivity solutions, including Optical Transport up to 800 Gbps, Ethernet, Internet Access, Private Networks, Dark Fiber, SD-WAN, Security Solutions, Voice Services, and other Managed Services [4]. Group 3: Strategic Positioning - Lightpath's CEO, Chris Morley, emphasizes the company's execution excellence and deep fiber presence, positioning it as a preferred network partner for both domestic and international carriers expanding in the Northeast [3]. - The announcement follows a series of network investments across the New York Metro region, Phoenix, Eastern PA, and Columbus, OH, as Lightpath builds an "AI-grade" fiber platform for hyperscalers, carriers, and cloud providers [5].

Financial Performance - Total revenue for Q3 2025 was $2.11 billion, a decrease of 5.4% year over year[6] - Net loss attributable to stockholders was $1,625.9 million, or $(3.47) per share, including a non-cash impairment charge of approximately $1.6 billion[6] - Adjusted EBITDA for Q3 2025 was $830.7 million, down 3.6% year over year, with a margin of 39.4%[6] - Total revenue for Q3 2025 was $2,108,110, a decrease of 5.4% compared to $2,227,700 in Q3 2024[17] - Broadband revenue decreased to $873,449 in Q3 2025 from $913,417 in Q3 2024, a decline of 4.4%[17] - Net loss attributable to Altice USA stockholders for Q3 2025 was $1,625,899, compared to a net loss of $42,970 in Q3 2024[17] - Adjusted EBITDA for the nine months ended September 30, 2025, was $2,433,483, down from $2,575,708 in the same period of 2024, representing a decrease of 5.5%[24] - Operating income (loss) for Q3 2025 was $(1,164,784), compared to $444,593 in Q3 2024[17] - Free Cash Flow deficit was ($178.1) million, compared to a positive $76.9 million in Q3 2024[6] - Free Cash Flow (Deficit) for the nine months ended September 30, 2025, was $(318,267), compared to $99,504 in 2024[25] Subscriber Metrics - Total Broadband Primary Service Units (PSUs) experienced net losses of -58k, with total broadband subscribers ending at 4.2 million[6] - Fiber customer base reached 703k, a 46% increase compared to Q3 2024, with 23.0% penetration of the fiber network[11] - Mobile line net additions were +38k, with total mobile lines reaching 584k, a 39% increase year over year[11] Debt and Cash Position - Consolidated Net Debt for CSC Holdings, LLC as of September 30, 2025, is $22,890 million, with gross debt totaling $23,747 million[26] - The consolidated net debt for Altice USA is $25,351 million, with a total gross debt of $26,279 million[27] - The total cash position for CSC Holdings, LLC is $(857) million, while Cablevision Lightpath has cash of $(50) million[27] - Cash, cash equivalents, and restricted cash at the end of Q3 2025 totaled $1,043,664, an increase from $250,291 at the end of Q3 2024[18] Capital Expenditures - Capital expenditures for the nine months ended September 30, 2025, were $1,065,163, slightly higher than $1,042,975 in 2024[18] - The weighted average cost of debt (WACD) for CSC Holdings is 6.9%[27] Strategic Initiatives - The company plans to change its corporate name to Optimum Communications, Inc., effective November 7, 2025[10] - The company is focusing on operational efficiency, including workforce optimization and AI capabilities, as part of its 2025 priorities[33] - Revenue opportunities are targeted through broadband, mobile, and fiber growth, aiming to expand penetration of new and existing product offerings[33] - The company plans to enhance its network capabilities to deliver multi-gig speeds and expand its passings footprint[33] - The company is pursuing a sustainable capital structure, including capital structure transformation plans[33] - The company aims to achieve targets for Adjusted EBITDA and revenue through effective pricing and rate management strategies[33] - Future developments in the markets of interest are being closely monitored to adapt strategies accordingly[33] - The company is exploring strategic transactions, including its first-ever primarily HFC asset-backed loan[33] - Rebranding initiatives are underway, with anticipated benefits to enhance market presence[33] Market Conditions - There are expectations for macroeconomic conditions and consumer demand to influence subscriber and market share trends[33] - The company disclaims any obligation to update forward-looking statements, emphasizing the inherent risks and uncertainties involved[33] Operational Metrics - Gross margin reached an all-time high of 69.7%, supported by video gross margin expansion of approximately 350 basis points year over year[6] - The Adjusted EBITDA margin for Q3 2025 was 39.4%, compared to 38.7% in Q3 2024[24] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $746,896, down from $1,142,479 in 2024[18] - The service call rate and service visit rate are annualized metrics reflecting customer support needs[29] - The company has a capital intensity ratio that reflects total cash capital expenditures as a percentage of total revenue[29]

Group 1 - A €17bn ($20bn) proposal by Bouygues Telecom, Free-iliad Group, and Orange to acquire a significant portion of Altice's activities in France has been rejected, driven by the need for Altice's owner Patrick Drahi to reduce substantial debts [1] - The B2B assets were intended to be primarily taken over by Bouygues Telecom, while B2C activities would be shared among all bidders [2] - The proposal reflects two trends in the European telecoms market: the necessity for consolidation and the strain on investment and margins [3] Group 2 - Historical discussions on telecom mergers in Europe have not led to significant outcomes, with past proposals between major players like France Telecom and Deutsche Telekom failing to materialize [4] - While there is an intellectual argument for cross-border consolidation, cultural, political, and regulatory barriers persist, although some providers like Orange and Vodafone have successfully operated across multiple markets [5] - The 'rule of three' suggests that three competitors can effectively scale and invest in individual markets, ensuring sufficient competition to benefit customers [6] Group 3 - The combination of debt and market forces indicates that Altice/SFR will likely be broken up in the future, with questions remaining about the timing, valuation, and asset distribution [7] - Despite the concept of a single market in Europe, significant barriers to cross-border consolidation remain, with potential technological, cultural, and political implications [8]