Altice USA, Inc. (NYSE: ATUS) announced its financial results for the third quarter of 2025, reflecting significant challenges in a competitive market. The company reported total revenue of $2.11 billion, marking a 5.4% decline year-over-year. This decline was accompanied by a net loss attributable to stockholders of approximately $1.63 billion, translating to a loss of $3.47 per diluted share. This stark contrast to the net loss of $43 million or $0.09 per share reported in the same period last year highlights the financial pressures the company is facing.

2. Key Financial Metrics

Total Broadband Primary Service Units (PSUs): The company experienced a net loss of 58,000 broadband subscribers in Q3 2025, compared to a loss of 50,000 in Q3 2024. As of the end of September 2025, Altice USA had 4.2 million total broadband subscribers.

Adjusted EBITDA: The company reported an Adjusted EBITDA of $830.7 million, down 3.6% from the previous year, with a margin of 39.4%.

Cash Flow: Net cash flows from operating activities fell by 66.2% to $0.1 billion, while Free Cash Flow showed a deficit of $178.1 million, compared to a positive $76.9 million in Q3 2024.

Capital Expenditures: Cash capital expenditures totaled $325.5 million, a decrease of 9.4% year-over-year, resulting in a capital intensity of 15.4%.

3. Chairman and CEO’s Remarks

Dennis Mathew, Chairman and CEO of Altice USA, noted the company's "record gross margin performance" and improved operational efficiencies while acknowledging the ongoing challenges posed by intense competition and a low-growth environment. Mathew emphasized the importance of enhancing customer and network experiences and reiterated the company's commitment to a disciplined approach focused on sustainable long-term growth and shareholder value.

4. Operational Highlights

Strategic Focus

Altice USA has prioritized profitability in the face of a low-growth, highly competitive environment. The company has adjusted its strategies to focus on profitable growth rather than unprofitable volume, reflecting its commitment to operational efficiency and long-term value creation.

Improved Efficiency

In Q3 2025, Altice achieved an all-time high gross margin of 69.7%, aided by a 350 basis point year-over-year expansion in video gross margins. The company has also seen improvements in service call and visit rates by 6% and 20%, respectively, compared to the previous year.

Fiber and Mobile Growth

The company added 40,000 new fiber customers, bringing the total to 703,000—a 46% increase compared to Q3 2024. Fiber network penetration reached 23% of over 3 million fiber passings.

Altice USA reported 38,000 mobile line net additions, resulting in a total of 584,000 mobile lines, up 39% year-over-year.

Video Services Expansion

In a notable turnaround, Altice added 58,000 new video customers to its new tiers, a significant improvement compared to just 5,000 in Q3 2024. This reflects a shift in customer acquisition strategy and product offerings.

5. Looking Ahead

Altice USA reaffirmed its full-year Adjusted EBITDA outlook, projecting approximately $3.4 billion for FY 2025. As part of its ongoing strategic efforts, the company plans to enhance its go-to-market and base management strategies to strengthen broadband performance and improve revenue trajectories.

Name Change Announcement

In a significant corporate restructuring move, Altice USA has announced it will change its corporate name to Optimum Communications, Inc., effective November 7, 2025. The company will also transition to a new ticker symbol, “OPTU,” on November 19, 2025. This rebranding effort aims to better align with its evolving business strategies and customer outreach.

6. Balance Sheet Insights

As of September 30, 2025, Altice USA reported consolidated net debt of $25.34 billion, with a net leverage ratio of 7.8x. The weighted average cost of debt stood at 6.9%, while the weighted average life of debt was 3.4 years, indicating a robust but leveraged balance sheet amidst the current operational challenges.

7. Conclusion

Altice USA’s Q3 2025 results showcase a company navigating significant market pressures while striving for profitability and sustainable growth. The proactive strategies to enhance service offerings and customer experiences may position Altice for better performance as it adapts to the evolving telecommunications landscape. The upcoming name change to Optimum Communications, Inc. underscores its commitment to transformation in the face of adversity.

Original press release