Altice USA (NYSE: ATUS) today reports results for the third quarter ended September 30, 2025.

Dennis Mathew, Altice USA Chairman and Chief Executive Officer, said: "In the third quarter, we delivered record gross margin performance and improved operational efficiencies, reaffirmed our full-year Adjusted EBITDA outlook, continued to elevate our customer and network experience, and achieved a milestone of over 700 thousand fiber customers. At the same time, we faced intense competition and a sustained low-growth environment, which resulted in softer broadband subscriber trends. Looking ahead, we are sharpening our go-to-market and base management strategies to strengthen our broadband performance and improve our revenue trajectory in this highly competitive landscape. We remain unwavering in our discipline and focus as we continue to build a more resilient business, positioned for sustainable, long-term growth and enhanced value for our shareholders."

Third Quarter 2025 Overview

• Total Broadband Primary Service Units (PSUs) Net Losses of -58k in Q3 2025, compared to -50k in Q3 2024; Ending Total Broadband Subscribers of 4.2 million
• Total revenue of $2.11 billion (-5.4% year over year)
• Net loss attributable to stockholders of ($1,625.9) million ($(3.47)/share on a diluted basis), includes a non-cash impairment charge of approximately $1.6 billion dollars related to our indefinite-lived cable franchise rights, compared to ($43.0) million ($(0.09)/share on a diluted basis) in Q3 2024
• Net cash flows from operating activities of $0.1 billion (-66.2% year over year)
• Adjusted EBITDA⁽¹⁾ of $830.7 million (-3.6% year over year) and margin of 39.4%
• Cash capital expenditures of $325.5 million (-9.4% year over year) and capital intensity⁽²⁾ of 15.4% in Q3 2025 (11.7% excluding FTTH and new build⁽³⁾)
• Free Cash Flow (Deficit)⁽¹⁾ of ($178.1) million compared to $76.9 million in Q3 2024

Third Quarter 2025 Key Operational Highlights

• Focus on Profitability in a Low Growth, Highly Competitive Environment
  • Market dynamics in Q3 2025 reflected a low growth environment, heightened competition, and continued financial pressure on consumers. Despite these conditions, the Company remained disciplined, prioritizing profitable growth and margins over unprofitable volume, reinforcing our commitment to long-term value creation and operational efficiency.
• Disciplined Execution and Transformation to Drive Efficiency
  • Moderated the year over year rate of Adjusted EBITDA⁽¹⁾ declines in Q3 2025, supported by a reduction of Other Operating Expenses⁽⁴⁾ of -2.4% year over year.
  • Gross Margin reached all time high of 69.7% in Q3 2025, supported by video gross margin expansion of ~350 basis points year over year.
  • Unique service call rate⁽⁵⁾ improved by approximately 6%, and unique service visit rate⁽⁶⁾ improved by approximately 20% Q3 2025 year over year.
  • Accelerating AI integration across sales, care, network, and product, using advanced tools designed to deliver smarter customer offers, automate network issue detection, and more efficient customer interactions.
  • Relationship NPS (rNPS)⁽⁷⁾ grew +6 points year over year in Q3 2025 and grew +17 points in the last 3 years from Q3 2022 to Q3 2025.
• Full Year Outlook Reiterated
  • Ongoing operating improvements and efficiencies as well as topline opportunities in Q4 2025 support our goal of delivering approximately $3.4 billion of Adjusted EBITDA⁽¹⁾⁽⁸⁾ in FY 2025.
• Fiber Growth: +40k Fiber Customers
  • Reached 703k fiber customers, a 46% increase in total fiber customers in Q3 2025 compared to Q3 2024.
  • Over 3 million fiber passings at the end of Q3 2025, with 23.0% customer penetration of the fiber network, up from 16.6% in Q3 2024.
• Mobile Growth: +38k Mobile Line Net Additions
  • Reached 584k mobile lines, a 39% increase in mobile lines in Q3 2025 compared to Q3 2024.
  • Mobile customer penetration of broadband customer base⁽⁹⁾ reached 7.3% at the end of Q3 2025, up from 5.2% in Q3 2024.
• Expanding Penetration of New and Existing Value-Added Services
  • In Q3 2025, added +58k video customers to new video tiers, compared to +5k in Q3 2024, through new video customer acquisitions and migrations of existing customers.
  • Reached 226k video customers on new tiers, or 13% of residential video customer base.
• Expanding and Enhancing Our Networks
  • In Q3 2025, added +51k total new passings and +30k fiber passings; targeting 175k total new passings in FY 2025, primarily as fiber new builds.
  • Updated projection to approximately $1.3 billion cash capital expenditures in FY 2025, driven by higher cash capital at Lightpath related to additional hyperscaler builds, as well as timing of capital spend.
  • Mid-split upgrades on hybrid-fiber-coaxial (HFC) network continue, and are expected to enable multi-gig speeds to a portion of HFC passings, with the first market expected to launch 2-Gig speeds in November 2025.
  • Lightpath continues to expand in hyperscaler community with additional contracts secured in the quarter.
• Completed Landmark $1.0 Billion Primarily HFC Asset-Backed Loan
  • As previously announced, in July 2025, Cablevision Funding LLC, an indirect wholly-owned subsidiary of Altice USA, Inc. entered into a $1.0 billion Receivables Facility Loan and Security Agreement with lenders Goldman Sachs and TPG Angelo Gordon. The Asset-Backed Loan Facility is secured by certain receivables generated by the Company’s Bronx and Brooklyn service area and network assets, located in that area, and matures in January 2031.
• Company Name Change to Optimum Communications, Inc.
  • As separately announced today, the Company plans to change its corporate name to Optimum Communications, Inc, effective November 7, 2025. The Company will cease trading under New York Stock Exchange (NYSE) ticker symbol “ATUS” and begin trading under the new symbol “OPTU” on November 19, 2025. There will be no change to the Company’s CUSIP in connection with the name and ticker symbol changes. The name and ticker symbol changes do not impact the Company’s ownership structure, leadership, services, or day-to-day operations.

Balance Sheet Review as of September 30, 2025

• Net debt⁽¹⁰⁾ for CSC Holdings, LLC Restricted Group was $22,890 million at the end of Q3 2025, representing net leverage of 8.1x L2QA⁽¹¹⁾
  • The weighted average cost of debt for CSC Holdings, LLC Restricted Group was 6.9% and the weighted average life of debt was 3.4 years.
• Net debt⁽¹⁰⁾ for Cablevision Lightpath LLC was $1,486 million at the end of Q3 2025, representing net leverage of 5.6x L2QA⁽¹¹⁾
  • The weighted average cost of debt for Cablevision Lightpath LLC was 5.3%⁽¹²⁾ and the weighted average life of debt was 2.3 years.
• Consolidated net debt⁽¹⁰⁾ for Altice USA was $25,340 million, representing consolidated net leverage of 7.8x L2QA⁽¹¹⁾
  • The weighted average cost of debt for consolidated Altice USA was 6.9%⁽¹²⁾ and the weighted average life of debt was 3.4 years.

Shares Outstanding

• As of September 30, 2025, Altice USA had 469,612,137 combined shares of Class A and Class B common stock outstanding.

Reconciliation of Non-GAAP Financial Measures

We define Adjusted EBITDA, which is a non-GAAP financial measure, as net income (loss) excluding income taxes, non-operating income or expenses, gain (loss) on extinguishment of debt and write-off of deferred financing costs, gain (loss) on interest rate swap contracts, gain (loss) on derivative contracts, gain (loss) on investments and sale of affiliate interests, interest expense, net, depreciation and amortization, share-based compensation, restructuring, impairments and other operating items (such as significant legal settlements and contractual payments for terminated employees). We define Adjusted EBITDA margin as Adjusted EBITDA divided by total revenue.

Adjusted EBITDA eliminates the significant non-cash depreciation and amortization expense that results from the capital-intensive nature of our business and from intangible assets recognized from acquisitions, as well as certain non-cash and other operating items that affect the period-to-period comparability of our operating performance. In addition, Adjusted EBITDA is unaffected by our capital and tax structures and by our investment activities.

We believe Adjusted EBITDA is an appropriate measure for evaluating our operating performance. Adjusted EBITDA and similar measures with similar titles are common performance measures used by investors, analysts and peers to compare performance in our industry. Internally, we use revenue and Adjusted EBITDA measures as important indicators of our business performance and evaluate management’s effectiveness with specific reference to these indicators. We believe Adjusted EBITDA provides management and investors a useful measure for period-to-period comparisons of our core business and operating results by excluding items that are not comparable across reporting periods or that do not otherwise relate to our ongoing operating results. Adjusted EBITDA should be viewed as a supplement to and not a substitute for operating income (loss), net income (loss), and other measures of performance presented in accordance with U.S. generally accepted accounting principles (“GAAP”). Since Adjusted EBITDA is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with similar titles used by other companies.

We also use Free Cash Flow (defined as net cash flows from operating activities less cash capital expenditures) as a liquidity measure. We believe this measure is useful to investors in evaluating our ability to service our debt and make continuing investments with internally generated funds, although it may not be directly comparable to similar measures reported by other companies.

About Altice USA

Altice USA (NYSE: ATUS) is one of the largest broadband communications and video services providers in the United States, delivering broadband, video, mobile, proprietary content and advertising services to approximately 4.4 million residential and business customers across 21 states through its Optimum brand. We operate Optimum Media, an advanced advertising and data business, which provides audience-based, multiscreen advertising solutions to local, regional and national businesses and advertising clients. We also operate News 12, which is focused on delivering best-in-class hyperlocal news content.

FORWARD-LOOKING STATEMENTS

Certain statements in this earnings release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this earnings release, including, without limitation, those regarding our intentions, beliefs or current expectations concerning, among other things, our future financial condition, liquidity and results of operations; our strategy, objectives, prospects and trends; our 2025 priorities: operational efficiency (including workforce optimization, cultural transformation and our AI capabilities and partnerships), revenue opportunity (including broadband, mobile and fiber growth and expanding penetration of new and existing product offerings), network enhancements (including our ability to deliver multi-gig speeds on HFC, expand our passings footprint, and our hyperscaler expansion opportunities) and sustainable capital structure (including our capital structure transformation plans); our expectations regarding macroeconomic conditions, consumer demand, subscriber and market share trends, and competitive dynamics, as well as other future events and developments; our go-to-market strategies, our ability to achieve targets for Adjusted EBITDA, revenue, programming and other direct costs, other operating expense, value-added services and cash capital expenditures; our ability to realize the anticipated benefits of financing and strategic transactions(such as our first-ever primarily HFC asset-backed loan); our pricing and rate management strategies and the anticipated benefits thereof; our rebranding and related initiatives and the expected benefits thereof; assumptions regarding impairment assessments and future asset valuations; and future developments in the markets in which we participate or are seeking to participate. These forward-looking statements can be identified by the use of forward-looking terminology, including without limitation the terms “anticipate”, “believe”, “could”, “estimate”, “expect”, “forecast”, “intend”, “may”, “opportunity”, “plan”, “project”, “should”, “target”, “outlook”, or “will” or, in each case, their negative, or other variations or comparable terminology. Where, in any forward-looking statement, we express an expectation or belief as to future results or events, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. To the extent that statements in this earnings release are not recitations of historical fact, such statements constitute forward-looking statements, which, by definition, involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements including risks referred to in our SEC filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and subsequent Quarterly Reports on Form 10-Q. You are cautioned to not place undue reliance on Altice USA’s forward-looking statements. Any forward-looking statement speaks only as of the date on which it was made. Altice USA specifically disclaims any obligation to publicly update or revise any forward-looking statement, as of any future date.

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