Altice Q3 Earnings Miss Estimates, Revenues Decline Y/Y

Altice USA Inc. ATUS reported soft third-quarter 2025 results, with both the bottom line and revenues missing the Zacks Consensus Estimate. The company witnessed revenue contraction year over year, owing to weak demand trends in the Residential, Business Services and Wholesale segments. However, growth in mobile line and fiber customer net additions, focus on network upgrades, improved customer care and financial discipline were the positives.

Net Income

Altice reported a net loss of $1.62 billion or a loss of $3.47 per share compared to a net loss of $42.9 million or 9 cents per share in the prior-year quarter. Restructuring and impairment charges of $1.56 billion and a revenue decline year over year led to a wider loss during the quarter. Adjusted earnings per share came at a loss of 12 cents per share, missing the Zacks Consensus Estimate by 8 cents.

Revenues

Total revenues in the quarter were $2.1 billion, down 5.4% year over year. Declining net sales from broadband and video customers impeded the top line, which missed the consensus estimate of $2.14 billion. However, the company is steadily expediting DOCSIS 3.1 upgrades to expand its fiber footprint. It is well on track to reach its goal of adding 1 million fiber customers by the end of 2026. ATUS’ new offerings, such as Whole Home WiFi and Total Care, are gaining strong popularity.

The company made progress in its growth strategies by accelerating network enhancement and customer experience. At the quarter-end, Altice had 3.05 billion FTTH (Fiber to the Home) passings, about 29,600 of which were added during the quarter.

FTTH broadband net additions were more than 40,400 in the quarter, led by more than double the pace of fiber migrations of existing customers and higher fiber gross additions. Total fiber broadband customers reached 703,400 by the end of the quarter. Residential average revenue per user (ARPU) declined to $133.28 from $135.77 a year ago.

Business services and Wholesale revenues declined to $361.9 million from the year-ago quarter’s tally of $366.3 million. However, net sales surpassed our revenue estimate of $339.6 million.

News and Advertising revenues decreased to $105.9 million from the year-ago quarter’s $117.7 million. Net sales missed our revenue estimate of $106.7 million.

Residential revenues (which include Broadband, Video and Telephony) were $1.62 billion, down from $1.73 billion in the year-earlier quarter. This was primarily due to the loss of higher ARPU video customers. The segment's revenues missed our estimate of $1.68 billion.

Other Quarterly Details

The company reported an operating loss of $1.16 billion against a net income of $444.9 million in the year-ago quarter. Adjusted EBITDA was $830.7 million compared with $861.9 million in the prior-year quarter. Its mobile line net add was 38,000 during the quarter. Altice’s total passings grew more than 35,400 and reached 9.89 million at the end of the third quarter of 2025.

Cash Flow & Liquidity

In the third quarter, Altice generated $147.5 million of cash from operating activities compared with $436 million a year ago. As of Sept. 30, 2025, the company’s net debt was $25.3 billion.

Zacks Rank

Altice currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Keysight Technologies, Inc. KEYS is scheduled to release fourth-quarter fiscal 2025 earnings on Nov. 24. The Zacks Consensus Estimate for earnings is pegged at $1.83 per share, suggesting growth of 10.9% from the year-ago reported figure.

Keysight has a long-term earnings growth expectation of 11.5%. Keysight delivered an average earnings surprise of 4.7% in the last four reported quarters.

Workday, Inc. WDAY is set to release third-quarter 2025 earnings on Nov. 25. The Zacks Consensus Estimate for earnings is pegged at $2.12 per share, implying growth of 12.17% from the year-ago reported figure.

Workday has a long-term earnings growth expectation of 21.25%. The company delivered an average earnings surprise of 9.35% in the last four reported quarters.

AST SpaceMobile, Inc. ASTS is set to release third-quarter 2025 earnings on Nov. 10. The Zacks Consensus Estimate for earnings is pegged at a loss of 18 cents per share, implying a growth of 25% from the year-ago reported figure.

AST SpaceMobile has a long-term earnings growth expectation of 28.3%. The Zacks Consensus Estimate for revenues is pegged at $20.74 million, implying growth of 1,785.4% from the year-ago reported figure.

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This article originally published on Zacks Investment Research (zacks.com).

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