Comcast Q1 Results Reveal Broadband Struggles Amid Growth in Streaming and Mobile

Comcast (CMCSA) reported mixed first-quarter 2025 results, with its core broadband business suffering its worst-ever quarterly subscriber loss while newer segments like streaming and mobile services showed promise. The company’s struggles in maintaining broadband customers, however, overshadowed these gains, sending shares down sharply and raising questions about its ability to adapt to shifting consumer preferences.

The Broadband Backlash

Comcast lost 199,000 domestic broadband subscribers in Q1—183,000 residential and 17,000 business customers—marking a tripling of residential churn compared to Q1 2024. This decline exceeded analyst expectations of 140,000 losses, signaling intensifying competition from 5G and fixed wireless providers like AT&T and Verizon. The company admitted to systemic issues: opaque pricing structures, bundles that confused customers, and a "disconnect" between its network quality and its ability to retain subscribers.

While broadband revenue rose 1.7% year-over-year to $6.56 billion—driven by a 3.3% increase in average revenue per user (ARPU)—executives acknowledged that subscriber losses could erode long-term profitability. “The path to stabilizing broadband requires fixing friction points in how we engage customers,” said Comcast’s president, Mike Cavanagh.

Strategic Shifts and Early Results

To combat churn, Comcast introduced a five-year price-lock guarantee for broadband and bundled free unlimited mobile service for 12 months with mid- to high-speed internet plans. These moves began to show modest traction: its Xfinity Mobile division added 323,000 lines in Q1, bringing total subscribers to 8.15 million. Meanwhile, streaming platform Peacock added 5 million paid subscribers, reaching 41 million total, with its adjusted EBITDA narrowing to $215 million, down from $639 million a year earlier.

Yet the core issue persists: broadband losses remain a drag. Analysts note that stabilizing subscriber numbers will require “several quarters” of sustained effort—a timeline that may test investor patience.

The Bottom Line: Growth Versus Decay

Comcast’s net income fell 12.5% to $3.38 billion, with declines in theme park revenue (due to wildfires) and legacy TV services weighing on results. Investors reacted harshly, with shares dropping 4.45% in late trading after the report. While Peacock and Xfinity Mobile are bright spots, they remain overshadowed by broadband’s struggles.

The company’s plan to spin off its legacy cable network into a standalone entity (“SpinCo”) aims to separate declining TV services from growth areas. However, broadband’s dominance in revenue—$6.56 billion vs. Peacock’s $215 million EBITDA contribution—means its turnaround is nonnegotiable.

Conclusion: A Crossroads for Comcast

Comcast’s Q1 results underscore a critical inflection point. Its broadband business, once a cash cow, now faces existential threats from cheaper, faster alternatives. While Peacock and mobile services are growing, they lack scale to offset declines in a core revenue stream.

The company’s response—price guarantees, mobile bundling, and structural reforms—may buy time, but success hinges on execution. If subscriber losses continue, the SpinCo move could become a necessity, not a strategic choice. For investors, the question is whether Comcast can turn its broadband business around before the erosion becomes irreversible.

With shares down over 5% year-to-date and trailing 12-month revenue growth stagnant at 1.2%, patience is a premium. The next few quarters will test whether Comcast’s pivot to growth areas can outweigh its legacy challenges—or if it’s too little, too late.

In the end, Comcast’s fate may depend on whether it can replicate the urgency of its streaming and mobile efforts in its broadband division. Without it, the company risks becoming a relic in an increasingly wireless world.