Altice USA, Inc.

Greetings and welcome to the Altice USA third quarter 2025 earnings results. At this time, all participants are in a listen-only mode. A question and answer session will follow the phone presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. It is now my pleasure to introduce your host, Sarah Friedman, Vice President of Investor Relations. Thank you. You may begin.

Thank you. Welcome to the Altice USA Q3 2025 earnings call. We are joined today by Altice USA's chairman and CEO, Dennis Matthew, and CFO, Mark Sirota, who together will take you through the presentation and then be available for questions. As today's presentation may contain forward-looking statements, please carefully review the section titled forward-looking statements on slide two. Now turning over to Dennis to begin.

Thank you, Sarah. Good morning and thank you all for joining us today. Throughout today's presentation, we will discuss the progress we have made, the challenges facing our business, and most importantly, how we are responding with urgency and discipline to ensure we continue to strengthen our business for the long term. I want to start by recognizing where we stand today and the work that still lies ahead. Over the past three years since stepping into the CEO role, we've been executing a comprehensive transformation aimed at stabilizing the business, driving operational discipline, and slowing declines to position us for future growth. Our financial performance is starting to reflect our operational investments. Gross margin percentage reached an all-time high. Capital efficiency continues to improve. Adjusted EBITDA decline is moderating, and we are targeting year-over-year adjusted EBITDA growth in the fourth quarter. We have also made significant progress in elevating our customer experience and the quality of our network as we continue working to rebuild trust with our customers. Because of this progress, despite market pressure, we are reaffirming our full-year outlook of approximately $3.4 billion of adjusted EBITDA. Our outlook includes revenue of approximately $8.6 billion and direct costs and other operating expense each of approximately $2.6 billion. We recognize that achieving our full-year outlook implies a meaningful ramp in the fourth quarter performance and believe that our focus on profitability over subscriber growth at any cost positions us for financial improvement. Our results in the third quarter reflect shifting dynamics. The first part of the quarter was relatively stable, both against fixed wireless and fiber overbuilders. However, in September, competitive intensity significantly accelerated with aggressive offers paired with heightened marketing spend from our competitors, as well as elevated FWA activity, which impacted our results. In the face of this, we remained disciplined by prioritizing financial stability and protecting margins over chasing lower-value growth ads. At the same time, we recognized that we must be bolder in our go-to-market and base management strategies. to stabilize broadband performance. That being said, while we have made progress, we know there is more to do to attain consistent broadband subscriber growth. Reflecting this evolving competitive landscape, in the third quarter, we recorded a non-cash impairment charge of approximately $1.6 billion related to our indefinite live cable franchise rights. The fair value of these assets was originally established during the company's formation in 2015 and 2016. Since then, competitive and macroeconomic pressures have evolved, including incremental market entrance and low-move activity. The impairment reflects the anticipated persistence of these conditions for the foreseeable future, which are factors that were not contemplated in the original valuations at the time of the Cablevision and Suddenlink acquisitions. This was a non-cash charge, and it does not affect our cash flow, liquidity, or ongoing operations. As we move into the final months of 2025, our priorities remain consistent and clear. We are focused on evolving our go-to-market and base management strategies to improve our broadband and revenue trajectory, driving operational efficiency, and enhancing and growing our network. Turning to the next slide, I'll review highlights from the quarter. Adjusted EBITDA declined 3.6% year-over-year and grew 3.3% quarter-over-quarter. Adjusted EBITDA margin of 39.4%, expanded 70 basis points year-over-year, and 200 basis points quarter-over-quarter. Gross margin reached an all-time high of 69.7%, reaching the milestone of approximately 70% a full year ahead of plan and largely reflects a mixed shift away from video. Other operating expenses improved by 15%. over 2% year-over-year, and by over 6% quarter-over-quarter. These results reflect our efforts to operate with discipline by driving innovation, enhancing the customer experience, and improving operational and financial efficiency across the business. On revenue, we maintained a disciplined approach to our revenue strategy, prioritizing margin accretion and profitability as industry growth remains near record low. In addition, we remain focused on expanding penetration of new and existing products designed to unlock additional revenue over time. While total revenue declined 5.4% year over year, driven primarily from video pressure, we showed revenue momentum in mobile service revenue, which grew 38%, light path, which grew almost 6%, and underlying news and advertising, which excluding political, grew almost 9%. Turning to our network, we continue to advance our network modernization efforts with the deployment of mid-split upgrades across our HFC footprint. Later this month, we expect to begin offering two-gig speeds in our first HFC market, an important step towards our multi-gig evolution, with additional markets expected in 2026. Additionally, we continue to expand our network with total new passings, expansions, and additional hyperscaler contracts awarded at LightPath. In August, LightPath announced plans to construct 130 route miles of AI-grade fiber infrastructure in eastern Pennsylvania to connect a rapidly developing hyperscale data center ecosystem in the region. Turning to slide five, I want to provide more context on our Q3 broadband subscriber results and our discipline, strategic, and financial focus as broader market conditions persist. In the quarter, we lost 58,000 broadband subscribers. We continue to operate in a challenging market characterized by historically low growth, intensified competition, and ongoing consumer financial strain as more providers compete for fewer customers who are increasingly price sensitive. This dynamic has led to elevated subscriber acquisition spending across the industry. Specifically, late in the quarter, we saw competitors ramp up promotions and significantly increase marketing spend. often combining deep discounts with aggressive add-on offers, which impacted our ability to capture win share. We maintain margin discipline in managing subscriber acquisition costs during this time, prioritizing quality growth and returns over uneconomic volume. Looking ahead in this environment, we intend to maintain this discipline. We recognize that we need to continue to adapt and evolve our go-to-market approach to compete more effectively. We have made steady progress in our head-to-head performance against fiber overbuilders and have observed encouraging trends there. Though on the fixed wireless side, as I referenced earlier, the competitive landscape demands a stronger stance. And we are developing and executing on a plan centered on our faster, more reliable network and superior product sets, including mobile, to execute with urgency and win. Turning to slide six, we continue to expand our product portfolio and increase penetration across both new and existing operators. Our goal is to create secure customer relationships, compete more effectively, and capture additional revenue opportunities over time. We added approximately 40,000 customers to our fiber network and ended the quarter with over 700,000 fiber customers, representing a penetration rate of 23% across our fiber network. Thanks to the investments we made to enhance the quality and reliability of our HFC network, we've refined our fiber migration strategy into a balanced, returns-driven approach, one that prioritizes customers who benefit most from our superior fiber speeds and low latency experience. This strategy allows us to improve portfolio yields by balancing the strengths of HFC and fiber to deliver the right performance at the right cost to the right customer segments ensuring each connection drives the greatest impact for both our customers and our business. On mobile, we added 38,000 mobile lines in the third quarter, representing a year-over-year uptick in mobile line growth and a consistent pace with the prior quarter. As we focus on customer quality and churn reduction, we are pleased with our progress. Annualized churn improved by approximately 900 basis points. And we expect the potential for further gains as we continue to prioritize growth additions of higher quality customers, those who port their number, finance the device, or choose unlimited plans. While this strategy is expected to keep growth additions muted in the near term, lower churn is expected to offset that impact, driving steadier net ads in the long run. This deliberate shift improves efficiency and profitability. building a more stable, high-value customer base and reducing acquisition costs over time. Of note, today only 35% of our mobile customer accounts include more than one line, which highlights a significant growth opportunity. We are evolving our mobile strategy with more attractive, simplified pricing that makes it easier for customers to add lines and bundle services. Specifically, we have a heightened focus on driving multi-line adoptions, strengthening broadband convergence, and enhancing pricing and offer competitiveness. We expect this evolved mobile go-to-market approach to roll out in late Q4, which we believe could position us for improved performance heading into 2026. Last year, we introduced a new and simplified three-tier video offer, entertainment TV, extra TV, and everything TV. These packages deliver greater value by including the most watched content, offering customers more flexibility and choice while enhancing our video margin profile. In the third quarter, we added or migrated a total of 58,000 video customers to these new tiers, representing a ramp from the phased launch in this prior year, ending the quarter with 13% penetration of residential video customers. We continue to evolve our video strategy as we bring in partners such as Netflix, Disney, Hulu, and others to strengthen our value proposition and bring more optionality to our video customers. More broadly, we have launched several new value-added services and products over the past few quarters, including Total Care, Whole Home Wi-Fi, and B2B add-on services such as Connection Backup and Secure Internet Plus. These offerings continue to scale and together with other products in our roadmap, helped to create stickier customer relationships. Over time, we believe these services may help offset ARPU headwinds from declining legacy products such as video. In closing, over the past year, we've strengthened our foundation, anchored in product quality, network reliability, and customer service, which we believe remains central to winning in the marketplace. Our focus remains on enhancing our value proposition, rebuilding customer trust, and sharpening our go-to-market and base management strategies to compete more effectively in this highly competitive landscape. Although market conditions remain challenging, we remain focused on the elements within our control, maintaining discipline in execution, competing with precision, and allocating resources with intent. This balanced approach protects profitability near term while positioning the company for durable growth and value creation over time. With that, I'll now turn it over to Mark to walk through the financial results in more detail.