Altice USA Aims for $3.4B Adjusted EBITDA in 2025 Through Operational Efficiency and Mobile Growth.

Altice USA targets $3.4B adjusted EBITDA in 2025 through operational efficiency and mobile growth, with CEO Dennis Mathew citing the company's transformation as gaining momentum. The focus is on unlocking revenue opportunities, driving greater operational efficiency, enhancing networks, and supporting its capital structure.

Altice USA (ATUS) has set its sights on achieving approximately $3.4 billion in adjusted EBITDA for the full year 2025, driven by a strategic focus on operational efficiency and mobile growth. CEO Dennis Mathew reported that the company's transformation is gaining momentum, with a particular emphasis on unlocking revenue opportunities, enhancing operational efficiency, and improving its capital structure [1].

During the Q2 2025 earnings call, Mathew highlighted several key achievements. The company reported a significant improvement in broadband subscriber net losses, with 35,000 net losses for the quarter, down from 51,000 in the same period last year. Additionally, the company saw a continued increase in broadband ARPU, with a 0.9% year-over-year increase to $74.77. These improvements were driven by the successful expansion of fiber and mobile customer bases, with 56,000 fiber customer additions and 38,000 mobile line net additions in Q2 [1].

Altice USA also announced a $1 billion asset-backed loan with Goldman Sachs and TPG Angelo Gordon, the first of its kind securitized primarily by HFC assets. This transaction not only expands funding sources but also improves pricing compared to previous high-yield issuances, providing flexibility in the company's capital structure [1].

Despite a 4.2% year-over-year decline in total revenue, largely attributed to video cord-cutting, Altice USA's gross margin reached 69.1%, the highest in recent history. Adjusted EBITDA for Q2 was $804 million, a 7.3% decrease year-over-year but an improvement sequentially. The company expects to see the most significant impact of its transformation reflected in Q4, with anticipated sequential improvements in adjusted EBITDA over the next two quarters [1].

The company's strategic focus has shifted from product and service launches to execution, operational efficiency, and capital structure innovation. Analysts displayed a generally neutral to slightly positive tone, focusing on mobile growth, broadband stabilization, and capital structure. Management maintained a confident tone during both prepared remarks and Q&A, emphasizing ongoing headwinds but expressing confidence in stabilization strategies [1].

References:
[1] https://seekingalpha.com/news/4482230-altice-usa-targets-3_4b-adjusted-ebitda-in-2025-through-operational-efficiency-and-mobile