Executive Summary

Q3 revenue was $271.1M, down 4.4% year over year but modestly up sequentially; Adjusted EBITDA rose to $86.5M, reflecting ongoing cost efficiencies and mix shift toward broadband .
Consumer broadband continued to scale: revenue $82.4M, fiber broadband revenue $49.0M, and net adds of 5,134; fiber passings reached 1,331,916 (51% of service area) .
Interest expense remained elevated at $44.9M; 71% of debt is fixed through Sept 2026 and the weighted average cost of debt was 7.09% .
Company reiterated the pending take-private transaction timing for late Q4 2024 or early Q1 2025 and did not host an earnings call, limiting guidance detail and Q&A catalysts .
Consensus estimates from S&P Global were unavailable for comparison; focus shifts to execution of fiber build and transaction closure (note: estimates unavailable via S&P Global).

What Went Well and What Went Wrong

What Went Well

Continued broadband momentum: “Consumer broadband net adds were 5,134” and fiber broadband revenue reached $49.0M in Q3 .
Cost discipline: combined cost of services and SG&A decreased $16.3M YoY, driven by lower video programming, severance, access expense, salaries, and contract labor, partially offset by higher professional fees .
Network build execution: 57,990 new fiber passings in Q3; total fiber passings at 1,331,916, covering 51% of service area; fiber route miles at 65,561 .

What Went Wrong

Top-line pressure versus prior year: Q3 operating revenue $271.1M vs $283.7M in Q3 2023; normalized Q3 2023 revenue (adjusted for Washington divestiture) was $278.7M, still above current quarter .
Elevated interest burden: net interest expense increased to $44.9M (vs $39.6M last year), driven by revolver borrowings; revolver availability declined to ~$3M at quarter-end .
Limited investor communication: no earnings call held due to pending transaction, constraining guidance updates and Q&A clarity .

Financial Results

Metric	Q3 2023	Q1 2024	Q2 2024	Q3 2024
Revenue ($USD Millions)	$283.7	$274.7	$268.7	$271.1
GAAP Net Loss ($USD Millions)	$(57.7)	$(35.4)	$(54.8)	$(49.0)
Net Loss per Share ($USD)	$(0.61)	$(0.41)	$(0.58)	$(0.54)
Adjusted EBITDA ($USD Millions)	$80.2	$88.4	$84.2	$86.5
Adjusted Diluted Net Loss per Share ($USD)	$(0.31)	$(0.27)	$(0.37)	$(0.33)

Segment revenue breakdown:

Segment	Q3 2023	Q1 2024	Q2 2024	Q3 2024
Consumer Broadband (Data & VoIP) ($M)	$75.1	$79.9	$81.4	$82.4
Consumer Voice ($M)	$31.6	$28.3	$28.0	$27.9
Consumer Video ($M)	$8.5	$6.6	$3.3	$0.0
Commercial Data ($M)	$53.9	$54.7	$54.6	$54.6
Commercial Voice ($M)	$31.8	$30.7	$30.5	$31.5
Commercial Other ($M)	$9.2	$9.0	$8.3	$9.4
Carrier Data & Transport ($M)	$31.4	$31.0	$30.3	$30.4
Carrier Voice ($M)	$4.1	$3.8	$3.6	$3.4
Carrier Other ($M)	$0.3	$0.2	$0.3	$0.3
Subsidies ($M)	$6.9	$6.8	$6.4	$5.9
Network Access ($M)	$20.8	$22.5	$21.1	$22.0
Other Products & Services ($M)	$10.0	$1.1	$1.0	$3.3
Total Operating Revenue ($M)	$283.7	$274.7	$268.7	$271.1

Key KPIs:

KPI	Q3 2023	Q1 2024	Q2 2024	Q3 2024
Consumer Broadband Net Adds (units)	6,998	6,338	3,670	5,134
Fiber Broadband Revenue ($M)	$37.9	$41.6	$45.4	$49.0
Copper/Other Broadband Revenue ($M)	$38.5	$38.3	$36.0	$33.4
Total Consumer Broadband Revenue ($M)	$75.1	$79.9	$81.4	$82.4
Fiber Passings (units)	1,236,208	1,246,991	1,273,926	1,331,916
Fiber Consumer Broadband Churn (%)	1.2%	1.1%	1.4%	1.4%
Fiber Route Network Miles	60,438	61,366	63,343	65,561
On-net Buildings	15,105	15,254	15,381	15,566

Notes on non-GAAP: Adjusted EBITDA and adjusted diluted net loss per share are non-GAAP measures with reconciliations provided in the press releases .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Transaction Close Timing	Late 2024 / Early 2025	“Close by the first quarter of 2025” (Q1)	“Late Q4 2024 or early Q1 2025” (Q3)	Refined window / maintained
Earnings Call	Q3 2024	No call (Q1/Q2)	No call (Q3)	Maintained
Financial Guidance (Revenue, Margins, OpEx)	Q3/FY 2024	None provided	None provided	N/A
Liquidity/Financing Capacity	Q3 2024	$75M revolver availability and $80M undrawn term loan (Q2)	~$3M revolver availability, $80M undrawn term loan, up to $140M new delayed draw loans ($44M drawn by 9/30)	Increased additional loan capacity; lower revolver availability

Earnings Call Themes & Trends

(No call was held; themes derived from press releases.)

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q3 2024)	Trend
Fiber Build & Passings	Q1: +10,783 passings; fiber passings 1,246,991 (47%) ; Q2: +32,961 passings; fiber passings 1,273,926 (49%)	+57,990 passings; fiber passings 1,331,916 (51%)	Accelerating build; rising coverage
Consumer Broadband Growth	Q1: Net adds 6,338; fiber revenue $41.6M ; Q2: Net adds 3,670; fiber revenue $45.4M	Net adds 5,134; fiber revenue $49.0M	Continued growth in fiber; net adds positive
Cost Management	Q1: Cost of services/SG&A down $15.8M YoY ; Q2: down $3.2M YoY	Down $16.3M YoY; lower video/severance/access/salaries/contract labor	Sustained cost discipline
Financing/Liquidity	Q1: $111M revolver availability; $80M undrawn term ; Q2: $75M revolver availability; $80M undrawn term	~$3M revolver availability; $80M undrawn term; $140M delayed draw capacity (with $44M drawn)	Increased borrowings and capacity; improved cash, tighter revolver
Interest Expense	Q1: $42.5M; 73% fixed; WACD 7.14%	Q2: $44.1M; 72% fixed; WACD 7.18%	Q3: $44.9M; 71% fixed; WACD 7.09%
Transaction Progress	Q1: close by Q1 2025	Q2: late Q4 2024 or early Q1 2025	Q3: reaffirmed late Q4 2024 or early Q1 2025

Management Commentary

“Revenue totaled $271.1 million… Net loss was ($61.4 million). Adjusted EBITDA was $86.5 million” (press release summary) .
“Total committed capital expenditures were $126.1 million, driven by 57,990 new fiber passings and third quarter fiber adds” .
“On Sept. 30, 2024, the Company had 71% of its total outstanding debt at a fixed rate through September 2026… weighted average cost of debt was 7.09%” .
“In light of the transaction, Consolidated will not host an earnings conference call” .
“The transaction… is expected to close in late fourth quarter 2024 or early first quarter 2025” .

Q&A Highlights

No Q3 2024 earnings conference call was hosted due to the pending transaction; therefore, there was no Q&A session or live guidance updates .

Estimates Context

Wall Street consensus estimates from S&P Global for Q3 2024 were unavailable for CNSL in our data environment, preventing an EPS/Revenue beat/miss assessment (consensus unavailable via S&P Global).
Absent estimates, the quarter’s narrative hinges on sequential broadband momentum, cost savings, and transaction timing .

Key Takeaways for Investors

Broadband momentum is intact: Consumer broadband revenue rose sequentially to $82.4M; fiber broadband revenue reached $49.0M with 5,134 net adds .
Cost actions are material: combined cost of services and SG&A fell $16.3M YoY, supporting Adjusted EBITDA stability at $86.5M despite revenue pressure .
Revenue normalization helps context: Q3 2024 revenue ($271.1M) vs Q3 2023 normalized revenue ($278.7M) shows more modest decline after Washington divestiture .
Interest burden and leverage remain key watch items: net interest expense was $44.9M; 71% of debt fixed through Sept 2026, WACD at 7.09% .
Liquidity profile evolving: cash increased to ~$44.4M; revolver availability reduced to ~$3M; added up to $140M delayed draw capacity with $44M drawn by 9/30 .
Execution on fiber build is accelerating: 57,990 passings added in Q3; fiber coverage at 51% of service area .
Near-term catalyst is transaction closure; limited guidance and no call temper near-term disclosure flow .

Appendix: Additional Financial Detail (for cross-reference)

Balance sheet highlights:

Cash and cash equivalents: $44.4M at 9/30/24 vs $89.6M at 9/30/23 .
Total debt and finance lease obligations: $2,381.3M long-term; total liabilities $3,074.3M at 9/30/24 .
Shareholders’ equity: $235.1M at 9/30/24 .

Cash flow highlights (Q3 2024):

Cash from operations: $38.6M; Capex: $(106.6)M; Net debt issuance: $113.8M .

Consolidated Communications Holdings, Inc. (CNSL)·Q3 2024 Earnings Summary