WOW(US:WOW)2025-11-05 22:01Financial Performance - Revenue for Q3 2025 was $144.0 million, a decrease of 8.9% compared to $158.0 million in Q3 2024[13] - Net loss for Q3 2025 was $35.7 million, compared to a net loss of $22.4 million in Q3 2024, representing a 59.0% increase in losses year-over-year[13] - Basic and diluted loss per share for Q3 2025 was $0.43, compared to $0.27 in Q3 2024, indicating a 59.3% increase in loss per share[13] - Total revenue for the three months ended September 30, 2025, was $144.0 million, a decrease of 8.9% compared to $158.0 million for the same period in 2024[33] - Total expenses for the three months ended September 30, 2025, were $92.0 million, down from $100.5 million in the prior year, reflecting a reduction of 5.0%[13] - For the nine months ended September 30, 2025, the net loss was $67.4 million compared to a net loss of $48.2 million for the same period in 2024[18] Operating Expenses - Operating expenses (excluding depreciation and amortization) were $53.9 million, down from $62.6 million in the same quarter last year, reflecting a 13.5% reduction[13] - Total expenses for the nine months ended September 30, 2025, were $273.6 million, down from $306.8 million in 2024, a decrease of 10.8%[13] - Compensation and benefits expenses increased to $30.1 million for the three months ended September 30, 2025, compared to $29.0 million in 2024[97] - Direct expenses decreased to $18.3 million for the three months ended September 30, 2025, from $26.7 million in 2024[97] - Customer service and support expenses were $12.0 million for the three months ended September 30, 2025, slightly down from $12.4 million in 2024[97] Debt and Interest - The company incurred interest expenses of $25.9 million in Q3 2025, down from $31.6 million in Q3 2024, a reduction of 17.9%[13] - As of September 30, 2025, total long-term debt was $1,052.2 million, an increase from $1,008.7 million as of December 31, 2024[53] - The effective interest rate for the Super-priority Loans was 8.95% as of September 30, 2025, while the Revolving Credit Facility had an effective interest rate of 10.54%[53] - The Company has total long-term debt of $1,054.9 million as of September 30, 2025, not including unamortized debt issuance costs and discount[83] Merger and Future Outlook - The company entered into a Merger Agreement on August 11, 2025, with Bandit Parent LP, which will result in each share of the company's common stock being converted into cash of $5.20 per share upon completion[20] - The Merger is expected to close by the end of 2025 or in the first quarter of 2026, subject to various conditions including shareholder approval[21] - Future outlook includes potential risks associated with a proposed merger, which is subject to various approvals and may disrupt existing customer relationships[11] Impairment and Losses - The company reported impairment losses on intangibles of $1.5 million for Q3 2025, with no such losses reported in Q3 2024[13] - The company recorded a non-cash impairment loss of $1.5 million for franchise operating rights during the three and nine months ended September 30, 2025, due to a decline in projected cash flows[51] - The company recorded an out-of-period adjustment increasing income tax expense by $9.5 million for the three months ended September 30, 2025[90] Cash Flow and Capital Expenditures - Net cash provided by operating activities was $91.8 million for the nine months ended September 30, 2025, down from $132.8 million in 2024, reflecting a decrease of approximately 30.8%[18] - Capital expenditures for the nine months ended September 30, 2025, were $139.3 million, a decrease from $164.1 million in 2024, representing a reduction of about 15.1%[18] Customer and Market Information - The company serves customers in 18 markets across the United States, including major cities in Michigan, Georgia, South Carolina, Alabama, Tennessee, and Florida[19] - Total residential subscription revenue decreased to $105.2 million in Q3 2025 from $117.4 million in Q3 2024, representing a decline of 10.5%[33] - Business subscription revenue slightly decreased to $27.8 million in Q3 2025 from $28.6 million in Q3 2024, a decline of 2.8%[33] Accounting and Compliance - The company anticipates that the adoption of new accounting standards will not have a material impact on its financial position or results of operations[29][30][31][32] - The company was in compliance with all debt covenants as of September 30, 2025[60] - The company operates as one reportable segment, with no intra-entity sales or transfers[96]