Altice USA (ATUS -8.58%), a major broadband, video, and mobile service provider across the United States, reported its latest quarterly earnings on August 7, 2025, covering Q2 2025. Revenue (GAAP) was $2.15 billion, missing the forecast and down from $2.24 billion in Q2 2024. The quarter saw ongoing contraction across key customer groups and further financial pressure, but Free cash flow returned to positive territory. Overall, the quarter highlighted continued operational challenges and high financial leverage, though there were pockets of improvement in areas like fiber and mobile.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | ($0.21) | ($0.02) | $0.03 | N/A |
| Revenue (GAAP) | $2.15 billion | N/A | $2.24 billion | (4.2 %) |
| Adjusted EBITDA | $804 million | $867 million | (7.3 %) | |
| Adjusted EBITDA Margin | 37.4 % | 38.7 % | (1.3 pp) | |
| Free Cash Flow | $28 million | ($41 million) | NM |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Company Overview and Current Focus
Altice USA provides broadband, video, telephony, and mobile services to approximately 4.5 million residential and business customers across 21 states. Its largest presence is in the New York metropolitan area. The company’s product suite includes high-speed internet via both fiber-to-the-home (FTTH) and hybrid-fiber coaxial networks, plus traditional cable TV, home phone, and a wireless mobile offering.
Recently, it has concentrated on slowing subscriber losses and ramping up fiber network expansion to meet rising demand for faster internet. Competing effectively depends on retaining broadband subscribers, expanding fiber reach, and growing mobile adoption. Cost control, operational efficiency, and prudent management of its high debt load are also key.
Quarter Highlights and Financial Results
The latest period marked a continued drop in GAAP revenue. Revenue reflected lower sales in the core residential broadband and video segments. Residential segment revenue (GAAP) fell 6.0% year over year, while Business services and wholesale revenue were also slightly lower. Analyst GAAP revenue estimates were not met, but GAAP earnings per share missed by a significant margin, reflecting a steep decline from last year’s profit.
Broadband subscriber losses improved compared to prior quarters, but The company still recorded a net loss of 35,000 broadband customers, down from a loss of 51,000 in Q2 2024. The company ended the period with about 4.3 million broadband subscribers. However, The average broadband revenue per user increased about 0.9% year over year.
Fiber-to-the-home, which offers much faster, symmetrical upload and download speeds, saw strong growth, with total fiber customers increasing by 53% year over year to 663,000. Altice USA reported 56,000 net fiber customer additions, a 40% increase in net additions compared to Q2 2024. The company now serves 663,000 fiber subscribers, up 53% year over year, and Fiber penetration reached 21.9% of all homes passed by its fiber network. A total of 28,000 new fiber passings were built. Altice USA’s ongoing network investment drove cash capital expenditures up to $383.5 million, a 10.3% increase from a year ago.
On the mobile front, which represents the company’s push to diversify beyond cable and broadband, Altice USA added 38,000 new mobile lines, a gain over the prior year period. Total mobile lines reached 546,000, and Mobile now penetrates 6.8% of the broadband subscriber base. The company launched new offerings for both residential and small-medium business customers, with increased take-up of newer video service tiers and value-added products like “Total Care” and improved Wi-Fi hardware. Video subscriber figures continued to decline, though Video gross margin improved by approximately 300 basis points year over year.
Operationally, Altice USA achieved efficiency gains. These included a 5% workforce reduction, primarily during the period, and lower service and visit rates year over year. Net cash flows from operating activities (GAAP) rose 34.3% year over year to $412 million compared to Q2 2024, helping free cash flow (non-GAAP) turn positive compared to a negative figure in Q2 2024.
The balance sheet remains under pressure due to high debt. The company completed a new $1.0 billion asset-backed loan in Q3 2025, secured by network assets in the Bronx and Brooklyn. Overall net leverage remained high at 7.8 times trailing two-quarter annualized Adjusted EBITDA. The average cost of debt was 6.8% as of June 30, 2025, and Cash on hand was $248 million.
Looking Forward
Management reiterated full-year 2025 targets for adjusted EBITDA (non-GAAP) of approximately $3.4 billion and total capital spending of approximately $1.2 billion. There was no official update to revenue or earnings per share projections provided in the earnings release. The company aims to continue expanding fiber availability, accelerating mobile growth, and furthering operational efficiency improvements.
Investors should keep watch on how quickly broadband customer losses taper off and whether new products, including fiber internet and mobile plans, gain more traction. High leverage and debt costs will remain central issues. Operating performance, customer trends, and progress on network upgrades will shape Altice USA’s results in the months ahead.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
