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Altice USA (NYSE:ATUS) released its first quarter 2025 results on May 8, showing continued broadband subscriber losses but strong performance in fiber and mobile segments. The company maintained its full-year adjusted EBITDA outlook of approximately $3.4 billion despite revenue and earnings declines compared to the same period last year.
Quarterly Performance Highlights
Altice USA reported 37,000 broadband subscriber net losses in Q1 2025, a slight improvement from the 39,000 losses in the previous quarter and better than the 51,000 losses in Q2 2024. The company noted improved trends in its East footprint compared to the previous year and achieved its lowest quarterly churn in three years.
Revenue for the quarter came in at $2.15 billion, down from $2.25 billion in Q1 2024, while Adjusted EBITDA declined to $799 million from $847 million year-over-year. Despite these declines, the company improved its gross margin to 68.8% from 67.0% in the same period last year.
As shown in the following chart of Q1 2025 financial results:
The company noted that temporary non-carriage of certain programming networks impacted its Q1 results, estimating a $12 million revenue impact and $7 million Adjusted EBITDA impact. Excluding these impacts, Q1 2025 revenue would have been $2.16 billion with Adjusted EBITDA of $806 million.
Fiber and Mobile Growth Strategy
While traditional broadband continues to face challenges, Altice USA achieved significant growth in its fiber and mobile segments. The company added 69,000 fiber customers in Q1 2025, its best quarterly performance to date, surpassing 600,000 total fiber customers and reaching 20% penetration on its fiber network.
Mobile line additions reached 49,000 in the quarter, the company’s best mobile performance in five years, helping Altice USA achieve the 500,000 mobile lines milestone. Mobile penetration reached 6.3% of the broadband customer base.
The following chart illustrates the company’s growth trajectory in these segments:
"We’re seeing an acceleration in pace in both fiber and mobile," the company noted in its presentation, highlighting these areas as key growth drivers amid traditional broadband subscriber losses.
Financial Results Analysis
Altice USA’s revenue decline of 4.4% year-over-year reflects ongoing challenges in its traditional business segments. However, the company has maintained focus on improving profitability metrics, with gross margin increasing by 180 basis points to 68.8%.
The company’s ARPU (Average Revenue Per User) metrics showed mixed results. Residential ARPU declined to $133.93 from $135.67 a year earlier, while Broadband ARPU increased by 2.4% to $75.31 from $73.58 in Q1 2024.
The company’s ARPU strategy focuses on customer lifetime value, with approximately 60% of new customers taking 1 Gig or higher speed tiers:
Free Cash Flow for Q1 2025 was negative at -$169 million, with the following breakdown:
The company’s debt profile remains a concern, with a leverage ratio of 7.6x and weighted average cost of debt at 6.8%. The debt maturity schedule shows significant maturities in the coming years:
2025 Outlook and Strategic Initiatives
Altice USA maintained its full-year 2025 outlook, targeting Adjusted EBITDA of approximately $3.4 billion, revenue between $8.6-$8.7 billion, and cash capital expenditures of around $1.2 billion.
The company outlined several strategic initiatives to achieve these targets, including:
1. Activating competitive go-to-market strategies with tailored hyper-local offers
2. Deepening penetration of new and existing products
3. Transforming operations to drive efficiency
4. Expanding its fiber network with 33,000 fiber passings added in Q1
As illustrated in the company’s strategic roadmap:
The company also highlighted its Q1 2025 priorities:
Altice USA faces significant challenges as it navigates the competitive telecommunications landscape. While broadband subscriber losses continue, the company’s progress in fiber and mobile segments provides potential growth avenues. The high debt leverage remains a concern for investors, though the company’s focus on operational efficiency and margin improvement demonstrates efforts to address financial challenges.
In its previous earnings report for Q4 2024, Altice USA had missed earnings expectations with an EPS of -$0.12 versus a forecasted $0.04. The stock closed at $2.65 on May 7, 2025, and was trading down 1.51% in pre-market activity on the day of the earnings release.
Full presentation:
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