Altice USA(US:ATUS)2025-11-06 22:16Customer 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].