Financial Data and Key Metrics Changes - Total revenues for Q3 2025 were $376 million, down from $393.6 million in Q3 2024, primarily due to a decline in residential video revenues, which decreased by $8.7 million or 16.2% [14] - Residential data revenues decreased by $2.8 million or 1.2% year-over-year, driven by a 5.1% decline in subscribers, partially offset by a 3.2% increase in ARPU [14] - Adjusted EBITDA for Q3 2025 was $201.9 million, representing 53.7% of revenues, compared to $213.6 million or 54.3% of revenues in Q3 2024 [16] - Free cash flow was $130.1 million in Q3 2025, equating to a conversion ratio of 64.4% of adjusted EBITDA [17] Business Line Data and Key Metrics Changes - Residential broadband customers declined by 21,600 in Q3 2025, but there were modest improvements in connects compared to the prior year [6][7] - Business data revenues grew by 0.4% year-over-year, driven primarily by fiber and carrier segments, while SMB segment faced subscriber and pricing softness [15] - The LIFT product, aimed at cost-conscious customers, is showing promise with strong sell-in among premium tiers, with about half of new customers choosing gig or faster speeds [9][41] Market Data and Key Metrics Changes - The company experienced increased churn due to macroeconomic factors, competitive pressures, and promotional rollouts, but churn improved in October [6][8] - Average monthly usage is around 775 gigabits per customer, indicating sustained demand for high-capacity service [9] Company Strategy and Development Direction - The company is focusing on execution, retaining existing customers, and retooling go-to-market approaches to position for long-term growth [6][12] - Simplified pricing and segmented marketing campaigns are part of the strategy to improve financial performance over time [6][9] - The launch of mobile services is expected to reduce churn and deepen service adoption, with plans to refine the strategy post-pilot [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging macro environment but expressed optimism about improved connect trends and churn reduction in October [12][28] - The leadership transition is underway, with a focus on ensuring a smooth transition while continuing to execute the long-term growth strategy [12] Other Important Information - The company paid down nearly $200 million of debt during Q3 2025, with a focus on disciplined debt repayment [18] - The estimated NBI purchase price is projected to be between $475 million and $495 million [20] Q&A Session Summary Question: Update on leverage targets and addressing broadband ARPU issues - Management indicated a focus on maintaining leverage between two and a half to four and a half times, with disciplined debt repayment as a priority [22][24] Question: Impact of competition and promotional rolloffs on churn - Management noted that multiple factors contributed to increased churn, including billing migration and competitive pressures, but improvements were seen in October [32][34] Question: Fiber overlap and competitive impact of AT&T's fixed wireless rollout - Fiber overlap remains consistent in the low to mid-50% range, with AT&T's fixed wireless rollout being a competitive factor [58][60] Question: Clarification on sale proceeds and tax implications - Sale proceeds from divestitures are pre-tax, and the company expects to continue monetizing strategic investments to pay down debt [64][68]

Financial Data and Key Metrics Changes - Total revenues for Q2 2025 were $381.1 million, down from $394.5 million in Q2 2024, primarily due to a $9 million (15.8%) decrease in residential video revenues and a $1.1 million (0.5%) decrease in residential data revenues [20][21] - Adjusted EBITDA was $203.2 million, representing 53.3% of revenues, compared to $212.4 million (53.8% of revenues) in the prior year [22][23] - Capital expenditures were $68.4 million, a decrease of $3.2 million (4.5%) year over year [23] Business Line Data and Key Metrics Changes - Residential broadband revenue increased by 1.9% sequentially, driven by a $2.39 increase in ARPU, despite a decline of 13,000 residential data customers in Q2 [6][10] - Business data revenue was $57.4 million, consistent with Q1 levels, with a year-over-year growth of 1.2% driven by high-value fiber and carrier segments [7][21] Market Data and Key Metrics Changes - Fiber to the home overbuilds now represent approximately 53% of the company's passings, indicating increased competitive pressure [12][13] - The company expects total residential broadband revenue for 2025 to be flat or decrease modestly compared to 2024 [13] Company Strategy and Development Direction - The company is focusing on innovation to simplify customer experience and enhance operational efficiency, including the rollout of AI-powered tools and a unified billing platform [14][15] - A pilot program for mobile services is being launched to complement wired broadband offerings, aiming to enhance customer lifetime value and reduce churn [17][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged competitive headwinds and seasonal softness in college markets but noted early signs of positive impact from new products and pricing strategies [6][13] - The company does not expect to grow total residential broadband customers in 2025 but is optimistic about long-term growth through strategic actions [13][18] Other Important Information - The company expects to realize approximately $40 million in cash tax savings in 2025 due to recent tax legislation [25] - A non-cash impairment charge of $586 million was recognized during the quarter, which does not impact cash flows or operational strategy [22] Q&A Session Summary Question: Competitive overlap with fiber - Management confirmed that competitive overlap with fiber increased from 50% to 53% and noted that losses are primarily due to competition from cell phone Internet [33][34] Question: Promo roll-off and customer retention tactics - Management indicated that promo roll-offs are expected to remain elevated and that retention tactics are being implemented to mitigate churn [40][42] Question: Priority between subscribers and ARPU - Management stated that both subscriber growth and ARPU stability are priorities, with expectations for ARPU to remain stable for the rest of the year [47][49] Question: Mobile service strategy - Management clarified that the mobile service pilot is not only economically viable but also aligns with the company's brand image, aiming to enhance customer convenience and profitability [57][60] Question: Billing system conversion - Management confirmed that the billing migration is complete and has gone through all necessary cycles without significant issues [63][65]