Executive Summary

Q1 2025 delivered mixed headline growth with sharp margin improvement: Revenue $150.0M, Adjusted EBITDA $76.7M, Adjusted EBITDA margin a record 51.1%, Net loss $13.9M; management highlighted cost reductions from the video exit and disciplined SG&A .
Versus Wall Street consensus, WOW beat on revenue ($150.0M vs $148.17M*) and EBITDA ($76.7M vs $72.70M*), and posted a smaller loss per share than expected (-$0.17 vs -$0.192*)—a constructive setup despite top-line pressure from video declines. Values retrieved from S&P Global.
Operationally, greenfield expansion reached 75.6k homes passed with 16.3% penetration; WOW added 2,000 greenfield HSD subs but lost 4,500 HSD RGUs overall, citing legacy-footprint churn and a video rate increase as near-term headwinds .
Q2 2025 guidance implies sequential moderation: Revenue $141–$144M, Adjusted EBITDA $65–$68M, HSD net adds (-6,500)–(-4,500), broadly in line with consensus* (Rev ~$143.62M; EBITDA ~$67.69M). Values retrieved from S&P Global .
A standing unsolicited acquisition proposal from DigitalBridge/Crestview remains an overhang and potential catalyst; management provided no update and won’t take questions on it .

What Went Well and What Went Wrong

What Went Well

Record profitability: Adjusted EBITDA rose 13.8% YoY to $76.7M and margin reached 51.1%; CFO: “Effective cost management… led to Adjusted EBITDA growth… and record Adjusted EBITDA margins of 51.1%” .
Greenfield execution: Homes passed hit 75,600 with 16.3% penetration; CEO: “Combined with low-churn and record ARPU, our expansion strategy continues to drive growth in our new markets” .
ARPU strength: Management cited “record ARPU” at $75, supported by simplified pricing and higher-speed tier uptake, reinforcing the broadband-first strategy .

What Went Wrong

Top-line pressure: Revenue fell 7.1% YoY to $150.0M, driven by video (-$8.9M YoY) and telephony (-$0.8M YoY) declines; HSD revenue dipped 0.8% YoY .
Subscriber trends: HSD RGUs declined by 4,500 sequentially; total subscribers fell to ~473,800, continuing legacy-footprint weakness despite greenfield adds .
Quality-of-earnings considerations: Non-recurring professional/M&A integration/restructuring expenses rose to $15.3M in Q1, a sizable add-back to Adjusted EBITDA; interest expense increased to $27.5M, reflecting higher debt costs and leverage (3.4x LTM) .

Financial Results

Key P&L Metrics (quarterly actuals)

Metric	Q3 2024	Q4 2024	Q1 2025
Total Revenue ($M)	158.0	152.6	150.0
Adjusted EBITDA ($M)	77.3	73.7	76.7
Adjusted EBITDA Margin (%)	48.9%	48.3%	51.1%
Net Loss ($M)	(22.4)	(10.6)	(13.9)
Diluted EPS ($)	(0.27)	(0.13)	(0.17)

Actual vs Street (Q1 2025) and Guidance vs Street (Q2 2025)

Metric	Q1 2025 Actual	Q1 2025 Consensus*	Q2 2025 Guidance	Q2 2025 Consensus*
Revenue ($M)	150.0	148.17*	141.0–144.0	143.62*
Diluted EPS ($)	(0.17)	(0.1917)*	n/a	(0.1850)*
Adjusted EBITDA ($M)	76.7	72.70*	65.0–68.0	67.69*

Consensus values marked with * retrieved from S&P Global.

Segment Revenue (YoY comparison)

Segment ($M)	Q1 2024	Q1 2025
HSD	106.2	105.4
Video	31.8	22.9
Telephony	11.0	10.2
Total Subscription Services	149.0	138.5
Other Business Services	5.3	4.9
Other	7.2	6.6
Total Revenue	161.5	150.0

KPIs (footprint and subscriber metrics)

KPI	Sep 30, 2024	Dec 31, 2024	Mar 31, 2025
Homes Passed	1,952,200	1,962,100	1,977,600
Total Subscribers	490,500	478,700	473,800
HSD RGUs	480,600	470,400	465,900
Video RGUs	66,300	60,600	48,900
Telephony RGUs	73,700	71,600	69,200
Total RGUs	620,600	602,600	584,000
Greenfield Homes Passed	52,600 (as of Q3)	61,900 (as of Q4)	75,600 (as of Q1)
Greenfield Penetration (%)	17.5% (Q3)	16.6% (Q4)	16.3% (Q1)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
HSD Revenue ($M)	Q1 2025	102.0–104.0	Actual: 105.4	Achieved above guidance
Total Revenue ($M)	Q1 2025	147.0–149.0	Actual: 150.0	Achieved above guidance
Adjusted EBITDA ($M)	Q1 2025	72.0–74.0	Actual: 76.7	Achieved above guidance
HSD Net Adds (RGUs)	Q1 2025	(6,000)–(4,500)	Actual: (4,500)	Better than guide (less negative)
HSD Revenue ($M)	Q2 2025	n/a	101.0–104.0	New
Total Revenue ($M)	Q2 2025	n/a	141.0–144.0	New
Adjusted EBITDA ($M)	Q2 2025	n/a	65.0–68.0	New
HSD Net Adds (RGUs)	Q2 2025	n/a	(6,500)–(4,500)	New

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024 and Q4 2024)	Current Period (Q1 2025)	Trend
Fiber greenfield expansion	Q3: 52.6k homes passed, 17.5% penetration ; Q4: +31.5k homes in 2024, 16.6% penetration	75.6k homes passed, 16.3% penetration; +13.7k homes; 2,000 HSD adds in greenfield	Continuing expansion; penetration stable-high
ARPU	Q4: ARPU ~$73.50, YoY up despite hurricane impact	Record ARPU $75; simplified pricing/YouTube TV support	Improving
Churn	Q4: “very low churn” with simplified pricing + YouTube TV	Continued low churn; greenfield and legacy cited	Improving/stable
Video migration to YouTube TV	Q3/Q4: Video RGUs down; migration ongoing	Video RGUs down to 48.9k; partnership supports churn	Accelerating exit from linear
CapEx	Q3: $40.5M; expansion slowed; liquidity actions	Q1: CapEx $38.9M; greenfields $10.8M; weather delays; FY greenfields $60–$70M target	Back-half weighted; disciplined
Liquidity/leverage	Q3: closed $200M super-priority term loan ; Q4: leverage 3.5x, cash $38.8M	Cash $28.8M; debt $1.03B; leverage 3.4x; undrawn revolver $130.7M	Adequate liquidity; higher interest costs
Competition / fixed wireless	Q2: softening fixed wireless impact, competitive pricing upgrades	Competitive environment “similar”; video rate increase causes some churn	Mixed; manageable
ACP/hurricanes effects	Q3/Q4: ACP and hurricanes pressured subs/revenue	Not a focus in Q1 commentary; guidance notes video rate-driven churn	Fading headwind
M&A proposal (DigitalBridge/Crestview)	Ongoing; no updates	Ongoing; no updates; no Q&A	Status quo overhang

Management Commentary

CEO: “Combined with low-churn and record ARPU, our expansion strategy continues to drive growth in our new markets.”
CFO: “Effective cost management… led to Adjusted EBITDA growth of 13.8% year-over-year and record Adjusted EBITDA margins of 51.1%.”
CFO on mix shift: “HSD revenue… more than 70.3% of our total revenue this quarter, up from 65.8% last year” .
CEO on competitive stance: simplified pricing—“no surprises… not promotional pricing… gives great value when paired with YouTube TV” .

Q&A Highlights

CapEx cadence: Greenfields spend $10.8M in Q1; FY 2025 greenfields capex still $60–$70M, back-end loaded due to weather delays .
Competitive landscape and net adds: Legacy markets competitive but churn remains low; Q2 expects similar net add cadence with some video-rate-induced churn .
Mobile product: Present but not a major driver of acquisition or churn reduction; focus remains broadband + YouTube TV .
Guidance clarifications: Management reiterated no updates on acquisition proposal and would not take questions on it .

Estimates Context

Q1 2025 vs consensus: Revenue beat (Actual $150.0M vs $148.17M*), Adjusted EBITDA beat ($76.7M vs $72.70M*), EPS beat (-$0.17 vs -$0.1917*). Values retrieved from S&P Global .
Q2 2025 guidance vs consensus*: Revenue guide ($141–$144M) aligns with $143.62M*; EBITDA guide ($65–$68M) aligns with $67.69M*. EPS not guided; consensus -$0.1850*. Values retrieved from S&P Global .
Implications: Expect estimate revisions to reflect margin strength and cost progress, while acknowledging sequential revenue/margin moderation and continued HSD pressure in legacy markets.

Key Takeaways for Investors

Margin story improving: Record 51.1% Adjusted EBITDA margin and beat vs consensus underscore tangible cost takeout from video exit and SG&A discipline .
Growth pivots to fiber: Greenfield momentum continues (75.6k passed, 16.3% penetration), with back-half-weighted capex likely to support 2H footprint growth .
Legacy drag persists: HSD RGUs down 4,500 and video rate increases drive near-term churn; watch sequential net adds and churn into Q2 .
Balance sheet: 3.4x leverage, $28.8M cash, $130.7M undrawn revolver—sufficient liquidity but higher interest expense weighs on GAAP earnings .
Estimates: Q1 beats and in-line Q2 guide should stabilize near-term sentiment; monitor whether ARPU gains and greenfield adds offset legacy declines. Values retrieved from S&P Global.
Event risk: Ongoing acquisition proposal remains a binary catalyst; management maintaining silence limits visibility on timing/outcome .
Near-term trading lens: Favorable margin/consensus beats vs continued sub declines and Q2 moderation—expect headline sensitivity to net adds and any M&A-related developments.

Consensus values marked with * retrieved from S&P Global.

Citations: Press release and 8‑K (Q1 2025) ; Company press release (Q1 2025) ; Q1 2025 earnings call transcript ; Prior quarters Q4 2024 8‑K and call ; Q3 2024 8‑K ; March 25 expansion milestone PR .

WideOpenWest, Inc. (WOW)·Q1 2025 Earnings Summary