Comcast Loses Broadband Subscribers but Stands by Pricing Strategy

Date of Call: Jan 29, 2026

Financials Results

• Revenue: Total company revenue grew 1% in the fourth quarter, with six growth businesses growing at a mid-single-digit rate.
• EPS: Adjusted earnings per share declined 12%.
• Operating Margin: Adjusted EBITDA declined 10%.

Guidance:

• Broadband ARPU expected to face pressure for next couple of quarters due to no rate increase, free wireless lines, and migration to simplified pricing.
• Wireless net adds expected to be driven by conversion of free lines to paid relationships in second half of 2026.
• Peacock losses expected to meaningfully improve in 2026, progressing toward break-even.
• Connectivity and platforms EBITDA expected to see incremental pressure over next couple of quarters, then improvement in back half of 2026 as investments lap.
• Total capital spending in 2026 expected to be relatively similar to 2025.
• Dividend maintained at $1.32 per share, with higher total dividends in 2026 due to Versant spinoff.

Business Commentary:

Broadband and Connectivity Strategy:

• Comcast reported subscriber losses of 181,000 in broadband during Q4, affected by competitive intensity, yet saw improvements in voluntary churn and strong adoption of the five-year price guarantee.
• The company is simplifying broadband offerings with four nationwide speed tiers and is investing in customer experience and pricing strategies to stabilize and grow revenue.

Wireless Growth and Convergence:

• Comcast added approximately 1.5 million net lines in wireless, ending the year with over 9 million total lines, representing a 15% penetration of the residential broadband base.
• The growth is driven by a freeline promotion and premium unlimited plans, enhancing customer convergence and lifetime value.

Theme Parks and Media Performance:

• Theme park revenue increased by 22%, with EBITDA growing by 24%, achieving over $1 billion in EBITDA for the first time, largely due to Epic Universe's success.
• Comcast's media segment saw Peacock revenue grow over 20% to $1.6 billion, supported by strong distribution and advertising revenue, despite the addition of NBA rights impacting EBITDA.

Investment in Network and Customer Experience:

• Comcast is investing in network upgrades, with about 60% of the footprint transitioned to mid-split spectrum, aiming to enhance automation and AI deployment.
• The investment is focused on improving customer experience, reducing service calls, and shortening repair times, which are critical for long-term growth.

Content and Sports Rights Strategy:

• NBCUniversal delivered strong results with Peacock, improving EBITDA losses by approximately $700 million in 2025, and successfully launched the NBA on NBC and Peacock.
• The company is focusing on live sports and events, leveraging its strong sports portfolio to drive engagement and viewership across platforms.

Sentiment Analysis:

Overall Tone: Positive

• Management expressed confidence in positioning and strategy: 'I feel very good about how we’re positioned', 'We’re at an inflection point... I think you’ll enjoy meeting Steve today', 'We’ve been moving with urgency on a number of important changes... the team is focused and aligned on executing against the plan', 'Taken together, we feel very good about where we’re positioned... to perform through cycles and create long-term value.'

Q&A:

• Question from Mike Rollins (Citi): Update on broadband customer intake/retention from national rate plan shift, and opportunity to accelerate wireless net adds with converged bundles?
  Response: Encouraged by early signs: improved voluntary churn, strong adoption of 5-year price guarantee, mix shift to Gig-plus tiers. Wireless has large opportunity (65M passings); best year ever in 2025; ~50% of residential postpaid connects were free lines, which will convert to paying relationships in back half of 2026.

• Question from Craig Moffett (MoffettNathanson): How recent media deals (Paramount, Netflix, WBD) shape thinking on Peacock, and details on modernized Verizon MVNO agreement?
  Response: Recent deals prompted internal focus on existing businesses; Peacock is on path to profitability with strong content and integrated media strategy. Verizon agreement is modernized and supports mutual profitable growth, but no further details provided.

• Question from Jessica Reif Ehrlich (BofA Securities): Thoughts on asset portfolio/structural approach for media, and levers to narrow Peacock losses toward break-even?
  Response: No strategic advantage seen in separating NBCUniversal; focus is on execution. Peacock's path to profitability driven by price increases (last $3 hike successful), advertising growth, and affiliate deal renewals over 2025-2028, with NBA adding advertisers and revenue.

• Question from John Hodulik (UBS): Competitive environment in high-speed data, and outlook for broadband EBITDA (improve in second half?)?
  Response: Competitive environment: more fiber competition, stable fixed wireless, more intense mobile competition. Broadband EBITDA expected to see incremental investment pressure in first half of 2026, then improvement in back half as free line conversions and lapping investments take effect.

• Question from Kutgun Maral (Evercore ISI): Trends and outlook for theme parks, including Epic Universe and broader portfolio?
  Response: Epic Universe successfully driving higher per-cap spending and attendance in Orlando, contributing to strong Q4 results. Broader parks portfolio seeing momentum with approvals for U.K. park, new Kids Park in Texas, and Japan's strong performance.

• Question from Michael Ng (Goldman Sachs): Details on broadband investment focus (pricing vs. CapEx) and shift toward premium unlimited plans?
  Response: Broadband investment focused on go-to-market pricing (simplified tiers, lower everyday pricing, free wireless lines) to migrate base and improve customer experience, not on capital. Premium unlimited plans target higher-value segment; strategy is to compete across all market segments.

Contradiction Point 1

Broadband ARPU Growth Expectations

Timing of expected ARPU recovery and growth contradicts previous guidance.

How has the competitive environment in high-speed data evolved, and when do you expect EBITDA growth to return following the declines in H1 due to increased broadband investment? - John Hodulik (UBS)

2025Q4: The investment period... will pressure EBITDA in the near term. Improvement is expected in H2 2026... - Jason Armstrong(CFO)

Could you provide details on the evolution of ARPU, customer migration to new plans, including opportunities and costs? Also, regarding convergence's 2.5% growth, is there an expectation for improvement over time? - Michael Rollins (Citigroup Inc., Research Division)

2025Q3: Given current investments, Comcast does not expect to grow broadband ARPU in 2026, especially early in the year... - Jason Armstrong(CFO)

Contradiction Point 2

Verizon MVNO Agreement Posture

Stance on the Verizon partnership shifts from neutral confidence to acknowledging a specific, beneficial modernization.

How do recent industry consolidations (Paramount, Netflix, Warner Bros. Discovery) influence Peacock's scale and partnerships, and can you provide more details on the modernization of the Verizon MVNO agreement? - Craig Moffett (MoffettNathanson)

2025Q4: The Verizon agreement was modernized and is a foundation for mutual profitable growth. Details are limited, but the partnership is beneficial for all parties. - Mike Cavanagh(President/Co-CEO)

Given the speculation about Warner Bros. Discovery, what are your thoughts on the complementarity of its assets and M&A feasibility in the current political environment, and regarding Verizon's transition, do you expect any implications for your relationship with Verizon and the MVNO? - Craig Moffett (MoffettNathanson LLC)

2025Q3: They wish Verizon's new leadership well and are confident they will find ways to work together successfully in the future. - Brian Roberts(CEO)

Contradiction Point 3

EBITDA Improvement Timeline

Contradiction on when EBITDA growth will return following a significant investment period.

Given broadband's largest investment year driving EBITDA declines in H1, when do you expect improvement, and whether EBITDA growth will return? - John Hodulik (UBS)

2025Q4: Improvement is expected in H2 2026 as: 1) Investments begin to lap, and 2) The monetization of free wireless lines transitioning to paid relationships takes effect. - Jason Armstrong(CFO)

How does the competitive landscape affect the pace of improvement in quarterly broadband performance? - Michael Ian Rollins (Citigroup)

2025Q2: The investment period... will pressure EBITDA in the near term. Improvement is expected in H2 2026 as: 1) Investments begin to lap, and 2) The monetization of free wireless lines transitioning to paid relationships takes effect. - Jason Armstrong(CFO)

Contradiction Point 4

Strategic Approach to Media Asset Separation

Contradiction on the company's stance regarding the separation of NBCUniversal from the cable business.

What is your strategy for the asset portfolio over the next 12-24 months, and what factors would lead to changes in structuring media assets? - Jessica Reif Ehrlich (BofA Securities)

2025Q4: The company does not believe there is a strategic advantage to separating NBCUniversal from the cable business. Value will be created by executing its current plans... - Mike Cavanagh(President)

How should we assess Comcast's interest in potential acquisitions beyond tuck-ins in Business Services, given current regulations, and are there inorganic opportunities for Versant post-spin? - Kutgun Maral (Evercore ISI)

2025Q2: The company is focused on executing its current strategic initiatives and running its existing businesses well. The Versant spin-off will allow it to pursue its own M&A strategy independently. - Brian L. Roberts(CEO) and Michael J. Cavanagh(President)

Contradiction Point 5

Peacock's Monetization and Path to Profitability

Contradiction on the timeline and primary drivers for Peacock to reach profitability.

How are you approaching your asset portfolio strategy over the next 12-24 months, including factors that might alter your approach, and what specific steps will narrow Peacock's losses and achieve break-even? - Jessica Reif Ehrlich (BofA Securities)

2025Q4: For Peacock, the path to profitability involves... 1) Leveraging strong content to justify price increases... 2) Driving advertising growth... 3) Letting revenue streams from affiliate deals renew... - Mike Cavanagh(CCO)

What is the long-term sports distribution strategy including linear's role, and how is the company addressing advertising weaknesses versus digital strengths? - Jessica Reif Cohen (Bank of America Securities)

2023Q3: Advertising remains soft, especially in linear... Peacock advertising is strong (~60% revenue growth). - Michael Cavanagh(CCO), Brian Roberts(CEO)