WOW(WOW) - 2025 Q2 - Quarterly Results

Financial Performance - Total Revenue for Q2 2025 was $144.2 million, a decrease of $14.6 million, or 9.2%, compared to Q2 2024[4] - Total Subscription Revenue for Q2 2025 was $132.9 million, down $13.6 million, or 9.3%, primarily due to a shift in service offering mix and a decrease in volume across all services[5] - HSD Revenue totaled $104.8 million, a slight decrease of $0.2 million, or 0.2%, compared to Q2 2024[8] - Net Loss for Q2 2025 was $17.8 million, compared to a net loss of $10.8 million in Q2 2024, resulting in a Net Profit Margin of (12.3)%[10] - Total revenue for the three months ended June 30, 2025, was $144.2 million, a decrease of 9.1% compared to $158.8 million for the same period in 2024[21] - Total subscription services revenue decreased to $132.9 million for the three months ended June 30, 2025, down 9.3% from $146.5 million in the prior year[21] - Net loss for the six months ended June 30, 2025, was $31.7 million, compared to a net loss of $25.8 million for the same period in 2024, representing a 22.8% increase in losses[21] - Basic and diluted loss per common share for the three months ended June 30, 2025, was $(0.22), compared to $(0.13) for the same period in 2024[21] Operational Metrics - Total Subscribers as of June 30, 2025, were approximately 469,600, a decrease of 25,600, or 5%, compared to June 30, 2024[12] - The company serves nearly 2.0 million residential, business, and wholesale consumers across 18 markets, primarily in the Midwest and Southeast[23] - Homes passed increased to 1,997,100 as of June 30, 2025, compared to 1,956,700 in June 2024[37] - High-Speed Data (HSD) RGUs decreased to 462,000 as of June 30, 2025, down from 485,000 in June 2024[37] - Video RGUs declined to 42,500 as of June 30, 2025, compared to 71,600 in June 2024[37] - Telephony RGUs also decreased to 67,000 as of June 30, 2025, from 75,700 in June 2024[37] Capital Expenditures and Debt - Capital Expenditures for Q2 2025 totaled $47.9 million, a decrease of $3.2 million compared to Q2 2024[15] - As of June 30, 2025, total outstanding long-term debt was $1,053.0 million, with cash of $31.8 million, resulting in a total Net Leverage of 3.5x on a LTM Adjusted EBITDA basis[16] - Capital expenditures for the six months ended June 30, 2025, were $86.8 million, down 29.8% from $123.6 million in the same period in 2024[22] - Total capital expenditures for the three months ended June 30, 2025, were $47.9 million, a decrease from $51.1 million in the same period in 2024[37] - Customer premise equipment expenditures for the three months ended June 30, 2025, were $19.9 million, up from $15.8 million in the same period in 2024[37] Adjusted EBITDA - Adjusted EBITDA for Q2 2025 was $70.3 million, an increase of $0.3 million, or 0.4%, with an Adjusted EBITDA margin of 48.8%[11] - Adjusted EBITDA for the six months ended June 30, 2025, was $147.0 million, with an adjusted EBITDA margin of 50.0%, compared to $137.4 million and 42.9% for the same period in 2024[35] - Adjusted EBITDA is defined as net income (loss) before interest expense, income taxes, depreciation, and amortization, providing a clearer view of operational performance[29] Acquisition and Future Outlook - WOW! announced an agreement for DigitalBridge Investments and Crestview Partners to acquire all outstanding shares for $5.20 per share in an all-cash transaction[18] - WOW! is in the process of a proposed acquisition by funds affiliated with DigitalBridge Investments and Crestview Partners, which may impact future operations and financial performance[24] Cash Flow - Cash flows from operating activities for the six months ended June 30, 2025, provided $52.8 million, a decrease of 38.9% from $86.6 million in 2024[22] - The company reported a decrease in cash and cash equivalents to $31.8 million at the end of the period, down from $38.8 million at the beginning of the period[22] Subscriber Information Policies - The company plans to continue reviewing subscriber information policies to ensure accuracy across different markets[33]