Altice USA Reports First Quarter 2025 Results

Company Provides Full Year 2025 Outlook

Lowest Quarterly Customer and Broadband Churn in Three Years

All-time High Fiber Customer Growth of +69k; Surpassed 600k Customer Milestone

Best Mobile Line Performance in 5 Years of +49k; Surpassed 500k Mobile Line Milestone

Embedding AI and Digital Tools Across Operations, Including Through New Partnership with Google Cloud

NEW YORK: Altice USA (NYSE: ATUS) today reports results for the first quarter ended March 31, 2025.

Dennis Mathew, Altice USA Chairman and Chief Executive Officer, said: "Our first quarter results reflect steady progress against our operational and financial priorities. We achieved record customer growth in our fiber and mobile businesses and saw sequential improvement in our broadband subscriber performance, all while successfully completing two major programming negotiations with favorable outcomes and minimal disruptions to our customers. We are activating competitive strategies with enhanced go-to-market effectiveness, deepening penetration of both new and existing products, and transforming our operations to drive efficiency, leading to our lowest churn levels in three years. Based on our continued progress and momentum we expect to deliver approximately $3.4bn of Adjusted EBITDA in Full Year 2025, representing a meaningful improvement from prior year trends, as we stay focused on sustainable growth, shareholder value, and delivering best-in-class services to the communities we serve."

First Quarter 2025 Financial Overview

• Total revenue of $2.2 billion (-4.4% year over year)
  • Residential revenue of $1.7 billion (-5.7% year over year)
  • Residential revenue per user (ARPU)(1) of $133.93 (-1.3% year over year)
  • Broadband ARPU(2) of $75.31 (+2.4% year over year)
  • Business Services revenue of $363.5 million (-0.4% year over year)
  • News and Advertising revenue of $102.4 million (-3.1% year over year)
• Net loss attributable to stockholders of ($75.7) million ($(0.16)/share on a diluted basis) in Q1 2025, compared to ($21.2) million ($(0.05)/share on a diluted basis) in Q1 2024
• Net cash flows from operating activities of $0.2 billion compared to $0.4 billion in Q1 2024
• Adjusted EBITDA(3) of $799.0 million (-5.6% year over year) and margin of 37.1%
• Cash capital expenditures of $356.1 million (+6.0% year over year) and capital intensity(4) of 16.5% in Q1 2025 (12.1% excluding FTTH and new build(5))
• Free Cash Flow (Deficit)(3) of ($168.6) million

First Quarter 2025 Key Operational Highlights

• Fiber Growth: Highest Ever Fiber Net Additions, Reaching 607k Fiber Customers, a 54% Increase in Total Fiber Customers in Q1 2025 Compared to Q1 2024
  • Fiber customer growth accelerated with +69k fiber net additions, representing Optimum's best quarter ever for fiber net adds
  • Fiber network penetration reached 20.3%, up from 14.2% in Q1 2024
• Mobile Growth: Best Mobile Line Net Add Performance in Five Years, Reaching 509k Lines, a 45% Increase in Ending Mobile Lines Compared to Q1 2024
  • Mobile line net additions of +49k in Q1 2025
  • Broadband and mobile convergence(6) grew to 6.3% at the end of Q1 2025, up from 5.7% at the end of Q4 2024
• Broadband Performance: Total Broadband Primary Service Units (PSUs) Net Losses of -37k in Q1 2025, Ending Total Broadband Subscribers of 4.3 million
  • Broadband net losses of -37k, compared to -30k in Q1 2024; sequential improvement compared to -39k in Q4 2024, supported by performance improvements in the East footprint
• Churn Improvement: Lowest Quarterly Churn in Three Years
  • Total residential customer and residential broadband subscriber quarterly churn reached three-year lows, with annualized broadband churn improvement of 90bps year over year in Q1 2025
• Expanding and Enhancing Our Networks with Efficiency
  • Added +25k total passings in Q1-25 and +185k in the last twelve months (LTM); Targeting 175k total additional passings in FY 2025
  • Added +33k fiber passings in Q1-25 and +215k LTM
  • Initiated mid-split upgrades on DOCSIS 3.1 network, expanding and reallocating spectrum to enable multi-gig speeds
  • Lightpath continues to expand in hyperscaler community with the recent announcement of its entrance into the Columbus, Ohio market anchored by a major hyperscaler partner
  • Focus on high-impact network investments, paired with ongoing efforts to enhance cost efficiency; Targeting approximately $1.2bn cash capital expenditures in FY 2025
• Focused Execution to Drive Improved Trends
  • Activating competitive go-to-market strategies across our hyper-local markets
  • Deepening penetration of new and existing products across broadband, mobile, video, and B2B
  • Transforming operations by expanding digital and AI capabilities, innovative programming deals, and more

Full Year 2025 Outlook

• Revenue of $8.6bn - $8.7bn in FY 2025
• Programming & Other Direct Costs of approximately $2.6bn in FY 2025
• Other Operating Expense of approximately $2.6bn in FY 2025
• Adjusted EBITDA of approximately $3.4bn in FY 2025(7)
• Cash Capital Expenditures of approximately $1.2bn in FY 2025

Balance Sheet Review as of March 31, 2025

• Net debt(8) for CSC Holdings, LLC Restricted Group was $23,486 million at the end of Q1 2025, representing net leverage of 7.8x L2QA(9)
  • The weighted average cost of debt for CSC Holdings, LLC Restricted Group was 6.9% and the weighted average life of debt was 3.9 years
• Net debt(8) for Cablevision Lightpath LLC was $1,445 million at the end of Q1 2025, representing net leverage of 5.5x L2QA(9)
  • The weighted average cost of debt for Cablevision Lightpath LLC was 5.3%(10) and the weighted average life of debt was 2.8 years
• Consolidated net debt(8) for Altice USA was $24,907 million, representing consolidated net leverage of 7.6x L2QA(9)
  • The weighted average cost of debt for consolidated Altice USA was 6.8%(10) and the weighted average life of debt was 3.8 years

Shares Outstanding

• As of March 31, 2025, Altice USA had 467,726,018 combined shares of Class A and Class B common stock outstanding