Altice’s second quarter results were met with a significant negative market reaction, as the company’s GAAP loss per share and adjusted EBITDA came in well below Wall Street expectations. Management attributed the underperformance to ongoing revenue declines, driven largely by video subscriber losses and persistent competition, especially from fiber overbuilders and fixed wireless alternatives. CEO Dennis Mathew acknowledged, “macroeconomic pressures, low move activity and increased competition from fiber and fixed wireless continue to weigh on gross additions.” The company also cited higher operating costs, including investments in technology and transformation initiatives, as contributors to weaker profitability.
Is now the time to buy ATUS? Find out in our full research report (it’s free).
Altice (ATUS) Q2 CY2025 Highlights:
- Revenue: $2.15 billion vs analyst estimates of $2.15 billion (4.2% year-on-year decline, in line)
- EPS (GAAP): -$0.21 vs analyst estimates of -$0.01 (significant miss)
- Adjusted EBITDA: $803.8 million vs analyst estimates of $848.9 million (37.4% margin, 5.3% miss)
- Operating Margin: 14.5%, down from 22.4% in the same quarter last year
- Broadband Subscribers: 3.93 million, down 160,400 year on year
- Market Capitalization: $1.08 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Altice’s Q2 Earnings Call
- Kutgun Maral (Evercore ISI) asked about the trajectory for mobile growth and potential changes to wholesale partnerships. CEO Dennis Mathew highlighted improved customer quality metrics and ongoing integration with T-Mobile, stating, “we are still on the path for 1 million customers or 1 million lines by '27.”
- Frank Garrett Louthan (Raymond James) questioned the profile of new mobile subscribers and differences between fiber and coaxial customers. Mathew explained that 50% of new mobile sales come from existing customers and emphasized better churn and ARPU trends among fiber subscribers.
- Jim Schneider (Goldman Sachs) inquired about competitive dynamics and willingness to increase marketing spend to drive better subscriber trends. Mathew detailed success with hyperlocal and income-constrained strategies, while noting a more data-driven approach to marketing and balancing ARPU impacts.
- Craig Moffett (MoffettNathanson) pressed for details on the timing and flexibility of refinancing 2027 debt maturities. CFO Marc Sirota stressed that the new asset-backed securitization “provides additional capacity and flexibility,” and that the company has “significant flexibility in our capital structure.”
- Vikash Harlalka (New Street Research) asked about broadband ARPU growth and additional capacity for asset-backed debt. Mathew pointed to new products as ARPU drivers, while Sirota indicated further flexibility exists, particularly given the company’s broad asset base.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will closely monitor (1) the pace of broadband subscriber stabilization and ARPU growth as new products and strategies scale, (2) execution of operational efficiency initiatives, including workforce optimization and AI-driven cost reductions, and (3) further progress on capital structure improvements and debt management. The trajectory of fiber and mobile adoption, as well as competitive responses in key geographic markets, will also be important indicators of Altice’s ability to sustain long-term margin recovery.
Altice currently trades at $2.33, down from $2.38 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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