Core Viewpoint - Altice France has rejected a bid from three French rivals to acquire the telecom operator SFR, as communicated by CEO Arthur Dreyfuss in a memo to staff [1] Group 1 - The rejection of the bid signifies a setback for the potential deal involving SFR [1]

Core Viewpoint - Bouygues Telecom, Free-iliad Group, and Orange have made a joint non-binding offer to acquire a significant portion of Altice's telecommunications business in France [1] Group 1 - The joint offer indicates a strategic move by the three companies to consolidate their positions in the French telecommunications market [1] - This acquisition could potentially reshape the competitive landscape in the industry, impacting market share and pricing strategies [1] - The non-binding nature of the offer suggests that further negotiations and evaluations will be necessary before any final agreement is reached [1]

Core Viewpoint - Bouygues Telecom, Free-iliad Group, and Orange have submitted a non-binding offer to acquire a significant portion of Altice's operations in France, with a total enterprise value of €17 billion [1] Group 1: Companies Involved - Bouygues Telecom, Free-iliad Group, and Orange are the three companies that have made the offer [1] - The acquisition targets a large part of Altice's activities specifically in France [1] Group 2: Financial Details - The total enterprise value of the proposed acquisition is €17 billion [1]

Core Insights - Adeia Inc. has signed a long-term intellectual property license agreement with Altice USA, enhancing Optimum's service offerings in broadband and video [1][2] - The agreement resolves all outstanding litigation between Adeia and Altice USA, indicating a positive shift in their business relationship [1] Group 1: Agreement Details - The agreement allows Optimum to utilize Adeia's patented innovations in content discovery, search, and personalization, improving user experience [2][3] - Adeia's IP portfolio enables Optimum to provide advanced features such as content recommendations and voice search, ensuring high-quality entertainment options for its customers [3][4] Group 2: Company Background - Adeia is a leading R&D and IP licensing company that focuses on innovative technologies in the media and semiconductor industries, impacting digital entertainment and electronics [5] - Optimum, a brand of Altice USA, serves approximately 4.5 million customers across 21 states, providing broadband, video, and advertising services [6]

Core Viewpoint - Altice USA is attempting to restart negotiations with creditors to address its substantial debt of $26 billion, which has contributed to an 11% increase in its stock price [2] Company Summary - Altice USA has switched advisors in its efforts to manage its debt situation [2]

Core Perspective - The company aims to be the connectivity provider of choice in every community it serves, focusing on transformation and stability over the next 3 to 5 years [1]. Group 1: Vision and Strategy - The company has undergone significant transformation in the last 2.5 years, emphasizing cultural improvement and leadership development [1]. - Over 150 new Vice Presidents and above have been brought in to stabilize the company and enhance its operations [1]. Group 2: Operational Challenges - The company faced frequent outages that frustrated both customers and employees, indicating a need for substantial operational improvements [2]. - Efforts have been made to improve the functionality of products, networks, and tools to enhance overall service delivery [2].

Summary of Altice USA Conference Call Company Overview - **Company**: Altice USA - **Industry**: Telecommunications Key Points and Arguments Vision and Transformation - Altice USA aims to be the connectivity provider of choice in every community served, focusing on stabilizing operations and improving customer experience [5][6][8] - Over the past two and a half years, the company has undergone significant transformation, including cultural changes and leadership restructuring, with over 150 new VPs hired [6][8] - The company has received awards for network performance, indicating progress in stabilization [7] Financial Goals - Altice USA targets approximately $3.4 billion in EBITDA by 2025, marking a return to year-over-year EBITDA growth for the first time since 2021 [10][12] - The company has implemented workforce efficiency measures, including a 5% reduction in workforce, to achieve financial objectives [13] Operational Efficiency and AI Utilization - The company is leveraging AI to enhance operational efficiency, improve customer service, and streamline processes [17][20] - Tools like AIVA have been introduced to assist frontline employees in providing better customer service and maximizing customer lifetime value [20][21] - AI is also being used to improve network management, reducing the need for truck rolls and manual troubleshooting [22] Broadband Strategy - Altice USA is adopting a tailored approach to broadband deployment, balancing fiber and hybrid fiber coax (HFC) based on regional market conditions [27][30] - The company has 3 million fiber passings and is building approximately 175,000 new fiber connections annually [30] - Competitive pressures from fixed wireless services are acknowledged, but the company is confident in its strategies to stabilize broadband performance [32][34] Customer Experience and Product Offerings - The company has simplified its broadband rate card and video packages to enhance customer understanding and satisfaction [44][45] - New video tiers have been introduced, allowing customers to choose content that aligns with their preferences [45][50] - Altice USA is focusing on integrating mobile services with broadband offerings to provide a comprehensive connectivity solution [60][66] Advertising and SMB Growth - The advertising segment is being enhanced through investments in agency services and digital platforms [73] - The SMB sector is seeing growth through the introduction of new products and solutions, aiming to provide comprehensive services to small businesses [69][71] Financial Management and Debt Strategy - Altice USA is addressing significant debt maturities approaching in 2027, totaling $7.3 billion, and is focused on creating a sustainable capital structure [75][76] - The company has entered into a $1 billion asset-backed loan to improve financial flexibility [75][78] - Capital expenditures have been optimized to drive efficiency while still investing in growth initiatives [82][83] Challenges and Market Dynamics - The competitive landscape remains intense, with pressures from both high-end fiber providers and low-end fixed wireless services [41][42] - The company is committed to innovation and quality to maintain a competitive edge in the market [41][40] Additional Important Insights - The company is focused on customer-centric strategies, ensuring that offerings align with customer needs and preferences [49][58] - There is an ongoing effort to improve customer trust and brand perception, which had been negatively impacted in the past [80][81] This summary encapsulates the key points discussed during the Altice USA conference call, highlighting the company's strategic direction, operational improvements, and financial objectives.

Core Insights - Goldman Sachs analyst Michael Ng indicates that 2026 may be a pivotal year for the U.S. telecommunications and cable industry due to the accelerated integration of mobile and fixed-line services and increasing competition [1] Group 1: Company Performance - AT&T and T-Mobile are identified as having the most favorable growth trajectories, attributed to their ongoing investments in spectrum resources and network modernization [1] - T-Mobile holds a significant advantage in network quality due to its extensive mid-band spectrum holdings, while AT&T showcases strong network capabilities through industry-leading capital investments and infrastructure [1] - Verizon is rated as "buy" as its service revenue growth is expected to increase with the acceleration of average revenue per user (ARPU) for postpaid mobile services [2] Group 2: Market Trends - The U.S. is projected to see over 55 million new fiber-covered users between 2024 and 2029, which will act as a growth engine for telecom companies by reducing churn rates and enhancing customer lifetime value and profitability [1] - The fixed wireless access (FWA) sector sees T-Mobile as the most proactive player, while AT&T's investment is comparatively lower but will benefit from the transition away from copper networks [2] Group 3: Competitive Landscape - Charter Communications and Altice USA are rated as "sell" due to intense competition from fixed wireless access and fiber services, which may adversely affect their operational performance [3] - The bundling of cable and wireless services is viewed as a preferred consumer choice, with AT&T, Verizon, and T-Mobile leading in this competitive area [3][4] - Despite having the largest bundled service user base, cable companies are still losing broadband users, indicating that bundling strategies may only mitigate user churn rather than prevent it entirely [4]

Core Insights - Lightpath is constructing 130-route miles of AI-grade fiber infrastructure in Eastern Pennsylvania to support the growing hyperscale data center ecosystem in the region [1][2][5] - The network will enhance connectivity between Eastern Pennsylvania and major data center hubs, including Ashburn, Virginia, and New York City [3][4] - This project marks Lightpath's third AI infrastructure initiative announced in 2025, following expansions in Phoenix and Columbus [6][7] Group 1: Project Details - The new network will consist of underground, multi-conduit systems with ultrahigh fiber-count capacity, with plans to expand to over 400-route miles [2][4] - Completion of the initial phase is scheduled for mid-2026, enabling high-bandwidth connectivity for various sectors [3][4] - The infrastructure will support a range of services, including dark fiber, Ethernet, and Internet services, catering to hyperscalers and other enterprises [4][5] Group 2: Market Opportunity - The Susquehanna region is identified as a significant opportunity for AI digital infrastructure due to its unique power capacity and data center developments [5][6] - Proximity to densely populated areas in the Northeast will provide low-latency connectivity options for AI workloads [5][7] - Lightpath's tailored approach and proven capabilities have earned trust among partners in the hyperscale market [7]

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)