Altice USA(ATUS) - 2025 Q4 - Annual Results

Financial Performance - Total revenue for Q4 2025 was $2.18 billion, a decrease of 2.3% year over year, and $8.6 billion for FY 2025, down 4.1% year over year[5] - Adjusted EBITDA for Q4 2025 was $902.2 million, reflecting a 7.7% year-over-year increase, with a margin of 41.3%, while FY 2025 Adjusted EBITDA was $3,335.6 million, down 2.3% year over year[5] - Operating income for Q4-25 is reported at $397.6 million, an increase from $340.8 million in Q4-24, indicating a growth of approximately 16.6%[16] - Net loss attributable to Optimum Communications stockholders for FY-25 is projected at $1,869.0 million, compared to $102.9 million in FY-24, indicating a significant increase in losses[16] - The net loss for the twelve months ended December 31, 2025, was $1,833,047 thousand, a significant increase from a net loss of $78,277 thousand in 2024[18] - Adjusted EBITDA for the twelve months ended December 31, 2025, was $3,335,633 thousand, with an Adjusted EBITDA margin of 38.8%, compared to $3,413,181 thousand and 38.1% in 2024[24] - Free Cash Flow deficit was $199.4 million in Q4 2025, compared to a deficit of $49.9 million in Q4 2024, and ($118.8) million for FY 2025 compared to $149.4 million in FY 2024[5] - Net cash provided by operating activities for the twelve months ended December 31, 2025, was $1,228,457 thousand, down from $1,582,401 thousand in 2024[25] - Free Cash Flow (Deficit) for the twelve months ended December 31, 2025, was $(118,837) thousand, compared to $149,388 thousand in 2024[25] Customer Metrics - Broadband primary service units (PSUs) experienced net losses of 62,000 in Q4 2025, compared to 39,000 in Q4 2024, with total broadband subscribers ending at 4.2 million[5] - Fiber customer net additions were 12,000 in Q4 2025 and 178,000 for FY 2025, with total fiber customers reaching 716,000, a 33% increase year over year[6] - Mobile line net additions were 38,000 in Q4 2025 and 163,000 for FY 2025, resulting in a total of 623,000 mobile lines, a 35% increase year over year[6] - Total customer net losses for FY-24 amounted to 191.1 thousand, with a further projected loss of 216.6 thousand for FY-25[14] - FTTH total customer relationships increased to 715.9 thousand by Q4-25, up from 538.2 thousand in Q4-24, representing a growth of 32.9%[15] - Subscriber net additions for broadband and video services were affected by a small system sale, excluding 8.3 thousand passings and 1.9 thousand broadband subscribers[10] Revenue and Pricing - Broadband ARPU increased by 2.8% year over year to $76.71 in Q4 2025, while Residential ARPU rose by 0.4% to $134.49[5] - Residential ARPU for FY-25 is expected to be $134.18, slightly down from $135.44 in FY-24, reflecting a decrease of about 0.9%[14] - Broadband revenue for Q4-25 is reported at $884.1 million, a decrease from $900.1 million in Q4-24, indicating a decline of approximately 1.1%[16] - Total revenue for FY-25 is projected to be $8,590.5 million, a decrease from $8,954.4 million in FY-24, reflecting a year-over-year decline of approximately 4.1%[16] Debt and Financing - Consolidated net debt for Optimum Communications was $25.29 billion, with a consolidated net leverage of 7.3x L2QA[7] - Total gross debt consolidated as of December 31, 2025, was $26,302 million, with net debt including finance leases amounting to $25,396 million[28] - The net leverage ratio (LTM) for the consolidated group was 7.6x as of December 31, 2025, compared to 7.3x (L2QA)[27] - Recent refinancing activities included an incremental term loan commitment of $1.1 billion to refinance existing debt and support general corporate purposes[12] - The company has increased its revolving loan commitments to $115 million, with $95 million due by June 15, 2027[19] Strategic Focus - The company plans to focus on simplification and improved broadband trends to enhance customer retention and overall value[6] - The company aims to improve broadband trends by simplifying packaging and pricing, enhancing convergence, and expanding value-added product sell-in[34] - Optimum Communications plans to maintain financial discipline through base management, product margin expansion, and investments in AI and automation capabilities[34] - The company is focused on long-term value creation through fiber expansion, network upgrades, and investment in technology and tools[34] - Future expectations include achieving targets for revenue, broadband ARPU, and Adjusted EBITDA, reflecting the company's growth strategy[34] Capital Expenditures and Impairments - Capital expenditures for the twelve months ended December 31, 2025, were $1,347,294 thousand, slightly lower than $1,433,013 thousand in 2024[18] - The company reported a significant impairment of $1,611,308 thousand related to indefinite-lived cable franchise rights[18] Operational Insights - The company experienced a decrease in cash and cash equivalents at the end of the year, totaling $1,141,443 thousand, up from $256,824 thousand at the beginning of the year[18] - Optimum Communications serves approximately 4.3 million residential and business customers across 21 states[33] - The total estimated number of single residence homes, apartments, and condominium units passed by the FTTH network is significant, with approximately 26 thousand total passings not having broadband services available[12]