HOUSTON--(BUSINESS WIRE)--On February 18, 2026, RCI Hospitality Holdings, Inc. (Nasdaq: RICK) received, as anticipated, a letter from the Nasdaq Stock Market notifying the Company of its continued noncompliance with Listing Rule 5250(c)(1) requiring the timely filing of reports with the SEC. Nasdaq sent the letter in connection with RCI not yet filing its Form 10-Q for the fiscal 2026 first quarter ended December 31, 2025, and because RCI remains delinquent in filing its Form 10-K for the year. ...

Core Viewpoint - Rogers Communications Inc. has shown improved financial performance, leading to an increased price target and maintained Buy rating from Canaccord, reflecting confidence in its earnings and cash flow outlook [1][3]. Financial Performance - The fourth-quarter results of Rogers Communications exceeded forecasts, driven by strong performance in the Media segment, particularly from sports assets and new content channels [3]. - Better-than-expected EBITDA and free cash flow were reported, with management's 2026 guidance indicating service revenue and free cash flow projections surpassing analyst expectations [3]. - Capital expenditure plans were slightly reduced, suggesting stronger medium-term cash generation and balance sheet improvement [3]. Market Position and Strategy - Despite flat wireless service revenue and pressure on ARPU, there are signs of stabilization in churn and a potential moderation in competitive intensity [3]. - The Cable segment continues to provide a stable earnings foundation, while the Media segment has emerged as a significant growth lever when programming performance is favorable [3]. - A sum-of-the-parts valuation approach indicates attractive upside potential, supporting a positive investment stance [3]. Company Overview - Founded in 1960 and headquartered in Toronto, Rogers Communications operates in wireless services, cable television, telephony, internet, and professional sports, positioning itself to generate resilient cash flows [4].

Core Viewpoint - RCI Hospitality Holdings, Inc. has received a notification from Nasdaq regarding its noncompliance with the timely filing of its Form 10-K for the year ended September 30, 2025, but this does not immediately affect its common stock listing [1]. Group 1: Compliance and Filing - RCI has until March 31, 2026, to file its 10-K or submit a compliance plan to regain compliance with Nasdaq rules [2]. - The company intends to file its 10-K as soon as possible and will submit a compliance plan if unable to meet the deadline [2]. - If Nasdaq accepts the compliance plan, the company may receive an extension of up to 180 calendar days, allowing compliance until June 29, 2026 [2]. Group 2: Appeal Process - Should Nasdaq not accept RCI's compliance plan, the company has the option to appeal the decision to a Nasdaq panel [2].

Core Insights - Rogers Communications (RCI) reported fourth-quarter 2025 adjusted earnings of $1.08 per share, exceeding the Zacks Consensus Estimate by 10.2% and reflecting a year-over-year increase of 3.8% [1] - Total revenues reached $4.43 billion, surpassing the consensus mark by 1.31% and showing a 13% year-over-year growth [1] - In Canadian dollars, adjusted earnings rose 3.4% year over year to C$1.51 per share, while total revenues increased 13% to C$6.17 billion, primarily driven by growth in the Media segment [1] Segment Performance Wireless Segment - Wireless revenues, accounting for 48.1% of total revenues, decreased 0.4% year over year to C$2.97 billion, with service revenues rising 0.3% to C$2.06 billion and equipment revenues declining 1.2% to C$912 million [2] - Monthly mobile phone ARPU was C$56.4, down 2.8% year over year [2] Cable Segment - Cable revenues, representing 32.1% of total revenues, increased 0.1% year over year to C$1.98 billion, with service revenues growing 0.3% to C$1.97 billion, while equipment revenues fell 33.3% to C$10 million [5] - Retail Internet subscriber count reached nearly 4.497 million, reflecting a net increase of 224K subscribers year over year [5] Media Segment - Media revenues surged 126% year over year to C$1.24 billion, with segment operating expenses increasing 106.3% to C$1.02 billion, resulting in an adjusted EBITDA of C$221 million [9] Financial Metrics - Adjusted EBITDA increased 1% year over year to C$1.374 billion, with an adjusted EBITDA margin expanding by 40 basis points to 66.8% [4] - Operating costs rose 18.1% to C$3.48 billion, with operating costs as a percentage of revenues expanding 260 basis points to 56.4% [10] - Free cash flow was C$1.02 billion, up from C$829 million in the previous quarter, marking a year-over-year increase of 15.7% [13] Balance Sheet and Cash Flow - As of December 31, 2025, RCI had C$5.9 billion in available liquidity, down from C$6.4 billion as of September 30, 2025 [11] - The debt leverage ratio stood at 3.9 times, influenced by the MLSE transaction [12] - Cash flow from operating activities was C$1.65 billion, up 45.6% year over year [12] 2026 Guidance - For 2026, RCI expects total service revenues to grow between 3% and 5%, and adjusted EBITDA to rise between 1% and 3% [14] - Capital expenditure is projected to be C$3.3 billion to C$3.5 billion, slightly below prior guidance [14] - Free cash flow guidance has been raised to between C$3.3 billion and C$3.5 billion [14]

Core Insights - Rogers Communication reported revenue of $4.43 billion for the quarter ended December 2025, reflecting a 13% increase year-over-year and a surprise of +1.31% over the Zacks Consensus Estimate of $4.37 billion [1] - The earnings per share (EPS) for the quarter was $1.08, up from $1.04 in the same quarter last year, with an EPS surprise of +10.77% compared to the consensus estimate of $0.98 [1] Financial Performance Metrics - The company experienced a -3.8% return over the past month, while the Zacks S&P 500 composite saw a +0.8% change, indicating underperformance relative to the broader market [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the market in the near term [3] Subscriber Metrics - Postpaid mobile phone gross additions were 507 thousand, exceeding the average estimate of 499 thousand [4] - Total postpaid mobile phone subscribers reached 11 million, slightly below the average estimate of 11.01 million [4] - Prepaid mobile phone gross additions were 93 thousand, lower than the average estimate of 100.91 thousand, while net additions were 2 thousand, compared to an expected loss of 5.49 thousand [4] - Total prepaid mobile phone subscribers remained at 1.2 million, matching the average estimate [4] - The churn rate for postpaid subscribers was 1.4%, aligning with the average estimate, while prepaid churn was 2.6%, better than the expected 3% [4] - Cable subscriber metrics showed homes passed at 10.51 million, slightly above the estimate of 10.49 million, with net additions of 11 thousand, close to the average estimate of 11.06 thousand [4] - Total customer relationships for cable subscribers were 4.86 million, consistent with the average estimate [4] - Retail internet net additions were 22 thousand, surpassing the average estimate of 20.07 thousand [4]

分组1 - Rogers Communication reported quarterly earnings of $1.08 per share, exceeding the Zacks Consensus Estimate of $0.98 per share, and showing an increase from $1.04 per share a year ago, resulting in an earnings surprise of +10.77% [1] - The company posted revenues of $4.43 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 1.31%, and up from $3.92 billion year-over-year [2] - Over the last four quarters, Rogers Communication has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] 分组2 - The stock has underperformed the market, losing about 3.8% since the beginning of the year, while the S&P 500 has gained 1.9% [3] - The current consensus EPS estimate for the coming quarter is $0.72 on revenues of $3.92 billion, and for the current fiscal year, it is $3.40 on revenues of $16.23 billion [7] - The Zacks Industry Rank for Diversified Communication Services is in the top 37% of over 250 Zacks industries, indicating that the industry outlook can significantly impact stock performance [8]

Revenue Performance - Total revenue for Q4 2025 was CAD 6,172 million, a 13% increase from CAD 5,481 million in Q4 2024[36] - Wireless segment revenue was CAD 2,970 million, slightly down from CAD 2,981 million in Q4 2024, while Cable segment revenue remained stable at CAD 1,984 million[36] - Media segment revenue surged by 126% to CAD 1,236 million compared to CAD 547 million in Q4 2024[36] - Revenue for Q4 2025 reached $6,172 million, a 12.6% increase from $5,481 million in Q4 2024[145] - Media revenue for Q4 2025 increased significantly to $1,236 million from $547 million in Q4 2024, marking a growth of 125.5%[144] Profitability Metrics - Adjusted EBITDA for Q4 2025 was CAD 2,689 million, a 6% increase from CAD 2,533 million in Q4 2024, with an adjusted EBITDA margin of 43.6%[36] - Net income for the year ended December 31, 2025, was CAD 6,906 million, significantly up from CAD 1,734 million in 2024[36] - Basic earnings per share attributable to RCI shareholders increased by 33% to CAD 1.38 in Q4 2025 from CAD 1.04 in Q4 2024[36] - The company reported a net income of $710 million for Q4 2025, a 27% increase from $558 million in Q4 2024[63] - Adjusted EBITDA for the twelve months ended December 31, 2025, was $9,820 million, compared to $9,617 million in 2024, reflecting a year-over-year increase of 2.1%[138] Subscriber Metrics - Postpaid mobile phone subscribers reached 10,995 thousand, an increase of 227 thousand from 10,768 thousand in Q4 2024, with a monthly churn rate of 1.43%[39] - Total customer relationships increased by 173, reaching 4,856 thousand by the end of Q4 2025, compared to 4,683 thousand in Q4 2024[46] - The penetration rate for customer relationships increased to 46.2% in Q4 2025, up from 45.9% in Q4 2024[46] Capital Expenditures - Capital expenditures for Q4 2025 were CAD 934 million, a decrease of 7% from CAD 1,007 million in Q4 2024[36] - Capital expenditures for Cable in Q4 2025 were $476 million, an 8% increase from $439 million in Q4 2024[55] - Capital expenditures for the year totaled $3,707 million, a decrease from $4,041 million in 2024[149] Cash Flow and Liquidity - Free cash flow for the year was CAD 3,356 million, a 10% increase from CAD 3,045 million in 2024[36] - Cash provided by operating activities for Q4 2025 was $1,652 million, up from $1,135 million in Q4 2024[72] - Cash and cash equivalents at the end of Q4 2025 were $1,344 million, up from $898 million at the end of Q4 2024[72] - Available liquidity as of December 31, 2025, was $10,349 million, an increase from $7,801 million at the end of 2024, primarily due to higher cash and cash equivalents[94] Debt Management - Total long-term debt decreased from $41,896 million at the end of 2024 to $37,058 million at the end of 2025, reflecting a net repayment of $3,478 million during the year[84] - The debt leverage ratio improved to 4.0 as of December 31, 2025, compared to 4.5 in the previous year, indicating better debt management[1] - The company repaid the entire outstanding principal of its $700 million senior notes in December 2025, totaling $937 million including associated debt derivatives[87] Future Outlook - The company expects continued net growth in wireless subscribers in the Canadian market for 2026[161] - The 2026 guidance includes total service revenue, adjusted EBITDA, capital expenditures, and free cash flow projections[152] - The company anticipates a decline in Television and Satellite subscribers due to migration to streaming services[161] - The company plans to invest in expanding its 5G network and upgrading its hybrid fibre-coaxial network[161] - The company aims to maintain its investment-grade credit ratings throughout 2026[161]

Financial Data and Key Metrics Changes - Rogers Communications reported a consolidated service revenue increase of 16% to CAD 5.3 billion in Q4 2025, with adjusted EBITDA rising 6% to CAD 2.7 billion [19][20] - For the full year 2025, revenues reached CAD 21.7 billion, up 5%, while EBITDA increased by 2% to CAD 9.8 billion [19][20] - Free cash flow for Q4 was CAD 1 billion, a 16% increase year-over-year, and for the full year, free cash flow exceeded CAD 3.3 billion, up 10% [20][21] Business Line Data and Key Metrics Changes - In the wireless segment, Q4 service revenue was CAD 2.1 billion, unchanged from 2024, with adjusted EBITDA growing 1% to CAD 1.4 billion, yielding a margin of 67% [16][17] - The cable business achieved a Q4 margin of 59%, up 30 basis points from the previous year, with retail internet net additions of 22,000 [17][18] - The media segment saw Q4 revenue of CAD 1.2 billion, more than double from the previous year, driven by the Blue Jays postseason and the consolidation of MLSE results [9][10] Market Data and Key Metrics Changes - Total mobile phone net additions for Q4 were 39,000, with a full year total of 245,000, reflecting a disciplined approach amidst a competitive environment [16][17] - The overall wireless market growth is projected to be in the 2%-2.5% range for 2026, with a focus on maintaining service revenue growth [36][61] - The company noted a decline in ARPU by 2.8% to CAD 56.43 for Q4, influenced by competitive pricing pressures [16][46] Company Strategy and Development Direction - Rogers aims to maintain a disciplined approach to subscriber growth, focusing on financial performance rather than chasing market share through unsustainable discounting [7][16] - The company plans to further invest in its sports and media business, including the acquisition of the remaining 25% stake in MLSE, which is expected to enhance its value proposition [10][19] - A strategic focus on capital efficiency is evident, with a target to reduce capital expenditures to CAD 3.3 billion - CAD 3.5 billion in 2026 [12][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong service revenue growth in 2026, projecting a range of 3%-5% for total service revenue and 1%-3% for adjusted EBITDA [12][22] - The competitive landscape remains intense, particularly in wireless, with ongoing promotional discounting impacting market dynamics [16][36] - Management highlighted the importance of maintaining a strong balance sheet, with debt leverage reduced to 3.9 times, down 0.6 times from the previous year [21] Other Important Information - The company completed the sale of its data center business for CAD 0.2 billion, further strengthening its balance sheet [20] - Capital intensity dropped to 15%, the lowest level since Q2 2017, reflecting improved capital efficiency [11][20] Q&A Session Summary Question: What factors could lead to being at the low end versus the high end of EBITDA guidance for 2026? - Management acknowledged the unpredictability of playoff runs for sports teams and the impact of promotional discounting in the telecom sector as potential swing factors [25][28] Question: How does the company view the wireless market growth and competitive intensity? - Management noted that the postpaid net add market is down about 50%, with intense competition observed, particularly after Black Friday [34][36] Question: What is the outlook for wireless ARPU this year? - Management indicated that ARPU trends are influenced by promotional activities and that roaming revenue has been a headwind, but they expect improvements as new plans are adopted [44][46] Question: Can you elaborate on the expected improvement in capital intensity? - Management explained that reduced capital spending is due to the completion of the Shaw-Rogers integration and ongoing maintenance of business systems [74][76] Question: What are the dynamics affecting EBITDA growth in the cable business? - Management emphasized ongoing efforts to improve efficiency through new technologies and customer experience enhancements, while cautioning about the strong margin position [99]

Financial Data and Key Metrics Changes - Rogers Communications reported a consolidated service revenue increase of 16% to CAD 5.3 billion in Q4 2025, with adjusted EBITDA rising 6% to CAD 2.7 billion [19][21] - For the full year 2025, revenues reached CAD 21.7 billion, up 5%, while EBITDA increased by 2% to CAD 9.8 billion [19][21] - Free cash flow for Q4 was CAD 1 billion, a 16% increase year-over-year, and for the full year, free cash flow exceeded CAD 3.3 billion, up 10% [20][21] Business Line Data and Key Metrics Changes - In the wireless segment, Q4 service revenue was CAD 2.1 billion, unchanged from 2024, with adjusted EBITDA growing 1% to CAD 1.4 billion, maintaining a 67% margin [16][19] - The cable business achieved a Q4 margin of 59%, up 30 basis points from the previous year, with retail internet net additions of 22,000 [17][19] - The sports and media segment saw Q4 revenue of CAD 1.2 billion, more than double from the previous year, driven by the Blue Jays postseason and the consolidation of MLSE results [9][10] Market Data and Key Metrics Changes - Total mobile phone net additions for 2025 were 245,000, with a combined total of 345,000 new mobile phone and retail internet subscribers [17][19] - The wireless market is projected to grow at a rate of 2%-2.5% in 2026, reflecting a slowdown in subscriber growth [36][62] - The competitive intensity in the wireless market has increased, particularly following Black Friday, leading to heightened discounting from competitors [34][61] Company Strategy and Development Direction - The company aims to maintain a disciplined approach to subscriber growth without engaging in unsustainable discounting, focusing instead on delivering solid financials [7][16] - Rogers plans to complete the acquisition of the remaining 25% stake in MLSE, which is expected to enhance the value proposition and attract more customers [10][19] - The company is targeting a reduction in capital expenditures to CAD 3.3 billion - CAD 3.5 billion in 2026, down from CAD 3.7 billion in 2025 [12][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong service revenue growth of 3%-5% and adjusted EBITDA growth of 1%-3% in 2026 [12][22] - The company noted that while the market is competitive, it remains focused on improving fundamentals and driving efficiencies across all business units [5][16] - Management acknowledged the unpredictability of playoff runs for sports teams as a factor influencing revenue, particularly for the media segment [25][28] Other Important Information - Debt leverage improved to 3.9 times, down 0.6 times from the previous year, indicating a stronger balance sheet [11][21] - Capital intensity dropped to 15%, the lowest level since Q2 2017, reflecting improved capital efficiency [11][20] - The company completed the sale of its data center business for CAD 0.2 billion, further strengthening its balance sheet [20][21] Q&A Session Summary Question: What factors could affect the EBITDA guidance for 2026? - Management indicated that the unpredictability of playoff runs and competitive discounting in the telecom sector could influence the EBITDA range [25][28] Question: How does the company view the wireless market growth and competitive intensity? - Management noted that the market growth is expected to be around 2%-2.5%, with increased promotional activity observed [34][36] Question: What is the outlook for wireless ARPU and roaming impacts? - Management stated that ARPU trends are positive but may slow due to promotional activities, and roaming revenue is expected to stabilize as new plans are adopted [44][47] Question: What are the drivers behind the expected improvement in capital intensity? - Management highlighted the completion of the Shaw-Rogers integration and a focus on ongoing maintenance as key factors for reduced capital expenditures [74][75] Question: How does the company plan to achieve further cost efficiencies? - Management emphasized the importance of adopting new technologies and synergies from combining RSM and MLSE to drive cost efficiencies [78][99]

Financial Data and Key Metrics Changes - Rogers Communications reported a consolidated service revenue increase of 16% to CAD 5.3 billion in Q4 2025, with Adjusted EBITDA rising 6% to CAD 2.7 billion [17][19] - For the full year 2025, total revenues reached CAD 21.7 billion, up 5%, while EBITDA increased by 2% to CAD 9.8 billion [17][19] - Free cash flow for Q4 was CAD 1 billion, a 16% increase year-over-year, and for the full year, free cash flow exceeded CAD 3.3 billion, up 10% [10][18] Business Line Data and Key Metrics Changes - In the wireless segment, Q4 service revenue was CAD 2.1 billion, stable compared to 2024, with Adjusted EBITDA growing 1% to CAD 1.4 billion, maintaining a 67% margin [14][15] - The cable business achieved a Q4 margin of 59%, up 30 basis points from the previous year, with retail internet net additions of 22,000 [15][18] - The media segment saw Q4 revenue of CAD 1.2 billion, more than double from the previous year, driven by the Blue Jays postseason and the consolidation of MLSE results [8][9] Market Data and Key Metrics Changes - The total mobile phone net additions for Q4 were 39,000, with a full year total of 245,000, reflecting a disciplined approach amidst a competitive environment [15][19] - The wireless market growth is projected at 2%-2.5% for 2026, with a focus on maintaining service revenue growth despite competitive pressures [35][61] Company Strategy and Development Direction - The company aims to return leverage to pre-Shaw levels, achieving this nine months ahead of schedule, and plans to continue investing in core sports and media operations [4][10] - Rogers Satellite was launched to enhance connectivity in areas lacking traditional cellular coverage, included in select 5G Plus plans [6][36] - The company is focused on driving efficiencies and cost reductions in a low-growth environment while maintaining a strong balance sheet [4][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2026 guidance targets, projecting service revenue growth of 3%-5% and Adjusted EBITDA growth of 1%-3% [11][21] - The competitive landscape remains intense, particularly in wireless, with management opting for a balanced approach rather than following aggressive discounting strategies [14][33] - Management highlighted the importance of maintaining a strong value proposition beyond price to drive subscriber growth and retention [45][63] Other Important Information - Debt leverage improved to 3.9 times, down 0.6 times from the previous year, with CAD 5.9 billion in available liquidity [19] - Capital expenditures decreased by 7% in Q4, with capital intensity at its lowest level since 2017 at 15% [10][18] Q&A Session Summary Question: Factors influencing 2026 EBITDA guidance range - Management acknowledged the unpredictability of playoff runs and competitive discounting as key factors affecting the EBITDA guidance range of 1%-3% [24][25] Question: Wireless market expectations and ARPU - Management noted that the wireless market is expected to grow at 2%-2.5%, with a focus on maintaining a balanced approach to pricing and subscriber growth [32][35] Question: Impact of roaming on ARPU - Management indicated that roaming had weighed on ARPU in 2025, but new plans are expected to drive volume and mitigate revenue declines [46][47] Question: Free cash flow guidance and below-the-line items - Management clarified that free cash flow guidance reflects variability across CapEx, EBITDA, and other financial elements, with no specific drag identified [52][66] Question: Cable market dynamics and EBITDA growth - Management emphasized ongoing efforts to improve efficiency and customer experience in the cable segment, with a focus on adopting new technologies [96][97] Question: Retail distribution network and potential cost savings - Management acknowledged the strength of the retail distribution network but indicated that it could be a source of potential cost savings in the future [105]