Altice USA, Inc.

Q2 total revenue was approximately $2 billion, down 5.8% year over year, or down 5.1% excluding the divested advertising agency services business. Adjusted EBITDA was $786 million, down 2.2% year over year, while adjusted EBITDA margin expanded 140 basis points to 38.8%; gross margin was 71%, up 180 basis points year over year. Broadband net losses were 40,000; mobile net additions were 50,000, up about 33% year over year to 724,000 mobile lines; fiber additions were 20,000 to 749,000 fiber customers. For the full year 2026, management expects total revenue to decline mid-single digits excluding the divestiture in News and Advertising, adjusted EBITDA to decline low- to mid-single digits, capital expenditures of $1.2 billion to $1.5 billion, and total passings growth of 150,000 to 175,000. Management also said they expect annual Lightpath capex of $200 million to $300 million.

Dennis Mathew framed the quarter as disciplined execution in a tough market, emphasizing simplification, cost control, and a reset of the business around higher-value customer relationships. He highlighted progress in converged offers, customer experience tools like Google CES and AI-powered network management, and fiber/network investment, while repeatedly saying broadband remains under pressure and recovery will take time. His tone was pragmatic but constructive, stressing that the team is “doing what we said we were going to do” and is focused on stabilizing broadband and strengthening the balance sheet.

Marc Sirota led with the main financial metrics: revenue of approximately $2 billion, gross margin of 71%, adjusted EBITDA of $786 million, and adjusted EBITDA margin of 38.8%. He pointed to operating expense excluding share-based compensation being down over 4% in Q2, programming and direct costs down over 11%, and capital expenditures of $320 million, about 16% capital intensity, with full-year capex still expected at $1.2 billion to $1.5 billion. He also detailed the capital structure, including no remaining maturities in 2026, weighted average cost of debt of 6.8%, weighted average debt life of 2.8 years, approximately 81% fixed-rate debt, and the completed tender offer repurchasing 120 million Class A shares for $300 million.

Analysts focused on the 48,000 passings being decommissioned, the 9,000-broadband-connect bulk MDU conversion, share repurchases and treasury accounting, broadband ARPU, and how much of the western footprint can be stabilized despite competition. Management said the decommissioned passings had only nominal penetration and were low-priority rural areas, explained that the MDU move is meant to convert nonexclusive retail relationships into longer-term bulk agreements, and declined to go beyond prior public disclosure on the share repurchase mechanics. On ARPU and churn, management said the simplified pricing/packaging strategy is helping with top-of-funnel performance, convergence, and higher attach rates, but acknowledged many customers are already deciding to leave before direct retention outreach and that new MarTech/AI tools are needed to intervene earlier.