Download PDF

1. Company Snapshot

1.a. Company Description

Altice USA, Inc., together with its subsidiaries, provides broadband communications and video services in the United States, Canada, Puerto Rico, and the Virgin Islands.It offers broadband, video, telephony, and mobile services to approximately five million residential and business customers.The company's video services include delivery of broadcast stations and cable networks; over the top services; video-on-demand, high-definition channels, digital video recorder, and pay-per-view services; and platforms for video programming through mobile applications.


It also provides voice over Internet protocol telephone services; and mobile services, such as data, talk, and text.In addition, the company offers Ethernet, data transport, IP-based virtual private networks, Internet access, and telephony services; hosted telephony services, managed Wi-Fi, managed desktop and server backup, and collaboration services comprising audio and web conferencing; fiber-to-the-tower services to wireless carriers; data services consisting of wide area networking and dedicated data access, as well as wireless mesh networks; and enterprise class telephone services that include traditional multi-line phone service.Further, it provides business e-mail, hosted private branch exchange, web space storage, and network security monitoring; and international calling and toll free numbers.


Additionally, the company offers audience-based and IP-authenticated cross-screen advertising solutions; and television and digital advertising services, as well as operates news channels under the News 12 Networks, Cheddar, and i24NEWS names.It also provides broadband communications and video services under the Optimum and Suddenlink brands.The company was incorporated in 2015 and is headquartered in Long Island City, New York.

Show Full description

1.b. Last Insights on ATUS

Altice USA's recent performance was negatively impacted by a quarterly loss of $0.12 per share, lagging revenue estimates. The company's Q4 earnings were marred by a 14.1% year-over-year increase in medical care ratios, partly offset by growing membership in all three businesses. Additionally, the company's high medical care ratios likely hurt its Q1 earnings.

1.c. Company Highlights

2. Altice USA's Q3 2025 Earnings: Navigating Cord Cutting and Impairment Charges

Altice USA reported a 5.4% year-over-year decline in revenue to $2.1 billion in Q3 2025, largely due to a decline in video cord cutting and residential video revenue. However, news and advertising revenue grew almost 9% excluding political revenue. The company's gross margin reached an all-time high of 69.7%, expanding 160 basis points year-over-year. Adjusted EBITDA was $831 million, a 3.6% decline year-over-year, but a 3.3% improvement quarter-over-quarter. The actual EPS came out at -$0.12, relative to estimates at -$0.04.

Publication Date: Nov -24

📋 Highlights
  • Revenue Decline:: Q3 2025 revenue fell 5.4% YoY to $2.1B, driven by 6% residential video and 10% video cord cutter revenue drops.
  • Noncash Impairment Charge:: $1.6B noncash impairment on indefinite live cable franchise rights negatively impacted results.
  • Gross Margin Record:: Achieved 69.7% gross margin, a 160 bps YoY expansion, signaling operational efficiency improvements.
  • Customer Additions:: Added 40,000 fiber customers and 38,000 mobile lines in Q3, prioritizing quality over high-cost growth.
  • EBITDA Guidance:: Full-year adjusted EBITDA outlook remains at $3.4B, with Q4 expected to show YoY growth despite 3.6% Q3 decline.

Operational Highlights

The company added 40,000 fiber customers and 38,000 mobile lines in Q3, with a focus on customer quality and churn reduction. Residential ARPU declined 1.8% year-over-year to $133.28, while broadband ARPU declined slightly to $74.65. The company's customer satisfaction is improving, with a 6-point increase in relationship NPS over the last year and 17 points over the past 3 years. As management noted, they have been managing rate and volume effectively, ensuring control over access to offers and providing them surgically.

Guidance and Outlook

The company guides for approximately $2.6 billion in EBITDA, driven by top-line improvements, cost controls, and optimizing operations. Altice USA expects year-over-year adjusted EBITDA growth in Q4, with a full-year outlook of approximately $3.4 billion. The company is targeting 175,000 total new passings for the full year, mainly in a fiber-rich manner. Full-year 2025 capital expenditures are projected at approximately $1.3 billion.

Valuation and Leverage

With a P/S Ratio of 0.1 and EV/EBITDA of 8.24, the market seems to be pricing in some level of distress. The company's leverage ratio is 7.8x, and Net Debt / EBITDA is 7.98, indicating a high level of indebtedness. The weighted average cost of debt is 6.9%, with a weighted average life of debt of 3.4 years, and 73% of total debt stack is fixed. Analysts estimate next year's revenue growth at -3.1%, which may put further pressure on the stock.

Strategic Initiatives

The company is focused on financial discipline and prioritizing $3.4 billion in EBITDA, rather than chasing high-cost, low-value gross adds. Altice USA has partnered with Goldman Sachs and TPG Angelo Gordon on a $1 billion asset-backed receivable facility loan, adding debt capacity. The company is also rebranding as Optimum Communications, effective November 7, and its Class A common stock will begin trading under the new OPTU ticker symbol on November 19.

3. NewsRoom

Card image cap

Lightpath Expands AI-Grade Network Footprint in Greater Columbus

Dec -02

Source: prnewswire.com

Card image cap

Altice Q3 Earnings Miss Estimates, Revenues Decline Y/Y

Nov -07

Source: zacks.com

Card image cap

Altice USA, Inc. (ATUS) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

Card image cap

Compared to Estimates, Altice USA (ATUS) Q3 Earnings: A Look at Key Metrics

Nov -06

Source: zacks.com

Card image cap

Altice USA, Inc. (ATUS) Reports Q3 Loss, Lags Revenue Estimates

Nov -06

Source: zacks.com

Card image cap

Lightpath Expands AI-Grade Fiber Network Across the Greater New York Region

Nov -06

Source: prnewswire.com

Card image cap

Altice USA Reports Third Quarter 2025 Results

Nov -06

Source: businesswire.com

Card image cap

Altice USA Changes Corporate Name and NYSE Ticker Symbol to Align with Optimum Brand

Nov -06

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.28%)

6. Segments

Residential - Broadband

Expected Growth: 7.4%

Altice USA's 7.4% residential broadband growth driven by increasing demand for high-speed internet, bundling strategies, and network upgrades. Expanding fiber-optic infrastructure and competitive pricing also contribute to growth. Additionally, the company's focus on customer experience and retention efforts help to reduce churn rates, further supporting growth in this segment.

Residential - Video

Expected Growth: 3.37%

Strong demand for high-speed internet and video services, driven by increasing adoption of streaming services and online content, contributes to the 3.37% growth in Residential - Video from Altice USA, Inc. Additionally, investments in network upgrades and expansion of fiber-optic infrastructure support the growth.

Business Services and Wholesale

Expected Growth: 4.83%

Altice USA's Business Services and Wholesale segment growth of 4.83% is driven by increasing demand for high-speed data and fiber-based services from business customers, expansion of fiber network, and growth in wholesale services, particularly in the wireless backhaul space, as well as strategic pricing and customer retention initiatives.

News and Advertising

Expected Growth: 3.83%

Altice USA's 3.83% growth in News and Advertising is driven by increasing demand for targeted advertising, expansion of its advanced advertising platform, and growth in political advertising. Additionally, the company's focus on data-driven advertising solutions and its partnerships with major brands have contributed to this growth.

Residential - Telephony

Expected Growth: 2.5%

Altice USA's 2.5% growth in Residential - Telephony is driven by increasing demand for high-speed internet and bundled services, expansion into new markets, and strategic pricing initiatives. Additionally, investments in network upgrades and customer retention efforts contribute to the growth.

Mobile

Expected Growth: 4.83%

Altice USA's Mobile segment growth of 4.83% is driven by increasing demand for high-speed data services, expansion of 5G network coverage, and competitive pricing strategies. Additionally, the company's focus on customer retention and acquisition through bundled offerings and loyalty programs contributes to the growth.

Other

Expected Growth: 4.78%

Altice USA's 4.78% growth in 'Other' segment is driven by increasing demand for its advanced video and data services, expansion of its fiber-optic network, and strategic partnerships. Additionally, the company's focus on cost savings initiatives and operational efficiencies have contributed to its growth.

7. Detailed Products

Optimum Internet

High-speed internet services for residential and business customers, offering speeds up to 940 Mbps

Optimum TV

Cable television services offering a range of channels, on-demand content, and streaming capabilities

Optimum Voice

Digital phone services offering crystal-clear voice quality, advanced features, and competitive international rates

Business Internet

High-speed internet services designed for businesses, offering dedicated connections and customized solutions

Business Phone

Advanced phone systems and services for businesses, offering features like video conferencing and call center solutions

Fiber Internet

High-speed, fiber-optic internet services offering fast and reliable connections

Cybersecurity Services

Comprehensive cybersecurity solutions for businesses, protecting against threats and data breaches

8. Altice USA, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Altice USA, Inc. faces moderate threat from substitutes due to the availability of alternative internet and video services from competitors such as Verizon Fios and satellite TV providers.

Bargaining Power Of Customers

Altice USA, Inc. has a large customer base, but individual customers have limited bargaining power due to the lack of alternative high-speed internet and video services in many areas.

Bargaining Power Of Suppliers

Altice USA, Inc. has a diversified supplier base, and no single supplier has significant bargaining power due to the availability of alternative suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the telecommunications industry, including the need for significant capital investments in infrastructure and regulatory hurdles.

Intensity Of Rivalry

The telecommunications industry is highly competitive, with multiple players competing for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 101.72%
Debt Cost 9.73%
Equity Weight -1.72%
Equity Cost 10.88%
WACC 9.72%
Leverage -5925.96%

11. Quality Control: Altice USA, Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Ooma

A-Score: 4.5/10

Value: 4.9

Growth: 5.9

Quality: 5.2

Yield: 0.0

Momentum: 5.0

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
Anterix

A-Score: 4.3/10

Value: 6.2

Growth: 4.9

Quality: 8.8

Yield: 0.0

Momentum: 1.0

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
Altice USA

A-Score: 3.8/10

Value: 9.5

Growth: 1.9

Quality: 5.3

Yield: 0.0

Momentum: 4.0

Volatility: 2.0

1-Year Total Return ->

View Full Report
Stock-Card
Lumen

A-Score: 3.7/10

Value: 8.0

Growth: 2.1

Quality: 2.8

Yield: 3.0

Momentum: 5.0

Volatility: 1.3

1-Year Total Return ->

View Full Report
Stock-Card
FingerMotion

A-Score: 3.5/10

Value: 7.0

Growth: 4.4

Quality: 4.2

Yield: 0.0

Momentum: 4.5

Volatility: 0.7

1-Year Total Return ->

View Full Report
Stock-Card
Gogo

A-Score: 2.9/10

Value: 2.0

Growth: 3.0

Quality: 4.0

Yield: 0.0

Momentum: 7.0

Volatility: 1.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.87$

Current Price

1.87$

Potential

-0.00%

Expected Cash-Flows