WOW!'s Q3 2025: Contradictions Emerge on Greenfield Plans, Deal Closure Timing, and Competitor Strategies

Business Commentary:

• Strong Competition in Legacy Markets and Greenfield Builds:
• WOW has strong HSD ARPU growth and near record low churn in legacy markets, with competition from cable companies like Comcast and Charter, as well as fixed wireless providers.

• In Greenfield, WOW has added over 15,000 homes in a quarter, with Greenfield homes now totaling 106,000. Competition comes from cable companies, new fiber entrants, and fixed wireless providers.

• Effective Edge-Out Strategy:

• WOW added 3,700 homes in legacy markets through its Edge-out strategy, with the '25 vintage already near 30% penetration.

• This success is attributed to customers resonating with WOW's no-contract, no-data-caps approach, offering reliable networks and high-speed internet with simplified pricing.

  

• Comcast and Charter's Mobile Strategy:

• While Comcast and Charter focus on mobile offerings in their advertising, WOW has found success with its all-in pricing and optional price lock, which provides customers with consistent value without confusion.

• Upcoming Acquisition:

• WOW entered into a definitive agreement with affiliated investment funds of DigitalBridge investments and Crestview Partners to acquire all outstanding shares of common stock.
• This transaction is aimed at bolstering WOW's financial and operational structures and may lead to strategic changes in the future.

Sentiment Analysis:

Overall Tone: Neutral

• Management declined to comment on results due to a pending transaction but highlighted operational positives: “strong HSD ARPU growth and our churn is near record lows,” added >15,000 Greenfield homes this quarter (106,000 total, 16% penetration), and legacy additions of ~3,700 homes with the 2025 vintage near 30%.

Q&A:

• Question from Frank Louthan (Raymond James): So when you guys are looking out at -- in the market, where are you seeing competition from -- who's kind of reared up? Is it more fixed wireless? Is it the cable companies or fiber? I mean how should we think about who you guys are up against? And I'm talking more about your legacy markets versus the Greenfield builds.
  Response: In legacy markets primary competitors are Comcast and Charter and increasingly fixed wireless; WOW is seeing strong HSD ARPU growth, near‑record low churn, added ~3,700 legacy homes and 15,000 Greenfield homes this quarter (106k Greenfield total, ~16% penetration), and competes via no contract/no caps and simplified pricing.

• Question from Frank Louthan (Raymond James): All right. Great. And are Charter and Comcast really leaning into their mobility product? I mean is that their main thrust to their marketing in your territories? Or is it something different that's having them get a little bit more traction?
  Response: Competitors appear to emphasize mobile in national advertising, but WOW differentiates with simple all‑in pricing and an optional price lock that clarifies value and avoids bundling complexity.

Contradiction Point 1

Plans for Greenfield Builds and Edge-Outs

It involves changes in strategic direction and capital expenditure plans, which are critical for assessing the company's growth trajectory and financial health.

In your legacy markets versus Greenfield builds, are the main competitors fixed wireless providers, cable companies, or fiber providers? - Frank Louthan(Raymond James)

20251105-2025 Q3: In Greenfield, we're adding over 15,000 homes quarterly. We compete with traditional cable companies, new fiber entrants, and fixed wireless. Our high-speed, no contract, and no data caps strategy is attracting customers. - Teresa Elder(CEO)

What are the plans for continuing greenfield builds or Edge-Outs and broader expansion? - Frank Garrett Louthan(Raymond James & Associates, Inc., Research Division)

2025Q2: WOW! will continue to focus on running the business well while going through regulatory approvals for the sale. The future plans of the company will be discussed by DigitalBridge and Crestview after the closing. - Teresa L. Elder(CEO)

Contradiction Point 2

Timing of the Deal's Closure

It involves changes in the expected timeline for a significant corporate transaction, which impacts investors' expectations and strategic planning.

Are Charter and Comcast focusing on their mobility product as their main marketing thrust in their territories? - Frank Louthan(Raymond James)

20251105-2025 Q3: The expected closing is estimated to be by the end of this year or in the first quarter of 2026. No significant regulatory concerns are anticipated at this time. - Teresa L. Elder(CEO)

Are there concerns about the timing of the deal's closure and potential regulatory challenges? - Frank Garrett Louthan(Raymond James & Associates, Inc., Research Division)

2025Q2: We got regulatory clearance in April. We did some regulatory filings, and we expect to be done in Q4 or Q1 at the latest. - Teresa L. Elder(CEO)

Contradiction Point 3

Competitive Landscape and Market Position

It concerns the description of the competitive environment and WOW!'s market position, which can impact strategic decision-making and investor perceptions.

Who are your current competitors in the market, and are there emerging players? Are they primarily fixed wireless, cable companies, or fiber providers? Who are you primarily competing against in legacy markets versus Greenfield builds? - Frank Louthan (Raymond James)

20251105-2025 Q3: In legacy markets, we've been a challenger brand, primarily competing with Comcast and Charter. Fixed wireless is also a competitor. - Teresa Elder(CEO)

What is your capital spending pace for H2 and how will it impact new greenfield homes? Is competitive activity increasing? What is the cadence of net adds for the remainder of the year? Can you share mobile product adoption stats and their impact on churn or HSD? - Unidentified Analyst (KeyBanc Capital)

2025Q1: The competitive landscape remains similar to previous years, with WOW! as a known challenger brand. - Teresa Elder(CEO)

Contradiction Point 4

Competitor Focus and Market Strategy

It involves changes in the company's perception of its primary competitors and the focus of its marketing strategies, which are critical for understanding market dynamics and business strategy.

Where are you seeing competition in the market—fixed wireless, cable companies, or fiber—and who are you competing against in legacy markets versus Greenfield builds? - Frank Louthan(Raymond James)

20251105-2025 Q3: In legacy markets, we've been a challenger brand, primarily competing with Comcast and Charter. Fixed wireless is also a competitor. We've seen strong HSD ARPU growth and low churn levels. In Greenfield, we're adding over 15,000 homes quarterly. We compete with traditional cable companies, new fiber entrants, and fixed wireless. Our high-speed, no contract, and no data caps strategy is attracting customers. - Teresa Elder(CEO)

Can you provide insights into fixed wireless, fiber, and cable developments in your markets? - Christopher Schoell(UBS)

2024Q4: We are pleased with the results from last year, excluding hurricanes and ACP impacts. Greenfields are performing well. We have seen good momentum from simplified pricing, which improves churn trends. Competition remains from traditional cable companies and fixed wireless, with little impact from satellite providers. - Teresa Elder(CEO)

Contradiction Point 5

Mobile Product Strategy

It involves changes in the company's prioritization and strategy regarding its mobile product, which impacts the company's diversification and competitive positioning.

Are Charter and Comcast focusing on their mobility product as the primary marketing focus in their territories, or is another factor driving their increased traction? - Frank Louthan(Raymond James)

20251105-2025 Q3: In legacy markets, we've been a challenger brand, primarily competing with Comcast and Charter. Fixed wireless is also a competitor. We've seen strong HSD ARPU growth and low churn levels. In Greenfield, we're adding over 15,000 homes quarterly. We compete with traditional cable companies, new fiber entrants, and fixed wireless. Our high-speed, no contract, and no data caps strategy is attracting customers. - Teresa Elder(CEO)

How is the mobile product performing? Do you plan to push it more aggressively in 2025? - Christopher Schoell(UBS)

2024Q4: We have a mobile product but do not push it to the forefront. We rely on reliable high-speed networks and pricing strategies with no surprises. We are achieving year-over-year improvements and don't feel the need to push convergence. - Teresa Elder(CEO)