Altice Usa — Financial Results

Optimum Is Losing Customers at Scale, Dragging Revenue Down 4%

Every major revenue line shrank in 2025. The core broadband business, which generates 41% of revenue, fell $103M as customer losses outpaced the benefit of rate increases. Video continued its long-running decline, dropping 11%. The competitive environment — fiber overbuilders, fixed wireless, streaming — is clearly taking a toll on subscriber counts across the board.

A $1.6 Billion Write-Down Signals Management's Dimmer View of the Future

In the third quarter of 2025, the company recorded a non-cash impairment charge (a write-down acknowledging an asset is worth less than previously stated) of $1.61 billion against its cable franchise rights — the government licenses that allow it to operate in its markets. This was triggered by an updated long-term plan that projected lower future cash flows, driven by competition and macroeconomic conditions. The charge does not affect cash but is a meaningful signal that management has materially reduced its expectations for the business.

Free Cash Flow Turned Negative

Free cash flow (cash from operations after capital spending) swung from positive $149M to negative $119M. The company spent more on running and building its network than it generated from customers after all operating costs. This matters because free cash flow is what services debt — and this company has a lot of debt.

A $7.4 Billion Debt Wall Arrives in 2027 — With a Going Concern Warning

The filing explicitly flags that approximately $7.4 billion of long-term debt matures in 2027. Management states that failing to secure committed refinancing by April 2026 "may raise substantial doubt about our ability to continue as a going concern" — meaning questions about whether the company can remain in operation. Total debt stands at roughly $26.2 billion, with annual interest expense of $1.79 billion. This is the single most critical near-term risk for investors to understand.

Mobile Is a Rare Bright Spot, Growing 41%

Mobile lines grew by 163,000 in 2025, and revenue jumped 41%. While still a small piece of the overall business (around 2% of total revenue), it is growing quickly and represents Optimum's attempt to bundle wireless services with its broadband product — a strategy used by larger cable peers to reduce customer churn.

FTTH Network Expansion Continues, Though Penetration Remains Low

The company added 134,000 new FTTH (fiber-to-the-home) passings and grew its fiber customer base by 178,000. Penetration — the share of reachable homes that actually subscribe — improved from 18% to 23%. The fiber upgrade is the company's main strategic response to competition, but at 23% take-up, the majority of homes passed are not yet converting to customers.