Executive Summary

Q2 2025 met-to-strong across headline metrics vs both company guidance and consensus: revenue slightly beat, Adjusted EBITDA topped the guide’s high end, and HSD revenue exceeded the guide; however, GAAP EPS remained a loss and revenue declined year over year as video attrition continued .
WOW announced a take-private agreement at $5.20 per share with DigitalBridge Investments and Crestview Partners on the same day, a likely dominant stock catalyst overshadowing fundamentals; the revolver maturity was also extended in connection with the deal .
Execution in Greenfield fiber continued: +15.5K homes passed in Q2, 91.1K cumulative homes, 16.0% penetration; CFO highlighted “another quarter of record HSD ARPU” as cost reductions in video lowered programming expense and sustained margin strength .
Year-over-year revenue pressure persisted (-9.2% YoY) with broad RGU declines; yet Adjusted EBITDA rose modestly (+0.4% YoY) on mix shift and cost actions, lifting Adjusted EBITDA margin to 48.8% (up ~470 bps YoY) .
Liquidity stable: cash $31.8M, total long-term debt/leases $1,053.0M, LTM net leverage ~3.5x; undrawn revolver $110.4M as of Q2; revolver extension supports near-term flexibility pending transaction close .

What Went Well and What Went Wrong

What Went Well

Record HSD ARPU and disciplined video de-emphasis supported margins: Operating expenses fell 14.6% YoY, with programming expense down $9.2M; Adjusted EBITDA margin expanded to 48.8% (vs 44.1% LY) .
Greenfield momentum: +15.5K homes passed and +2.3K subs added in Q2; 91.1K homes passed in Greenfield with 16.0% penetration; CEO: “accelerate our fiber-to-the-home expansion… driving positive momentum” .
Guidance execution: Actuals came in at or above Q1-issued Q2 guidance ranges—Revenue $144.2M at the top end ($141–$144M), Adjusted EBITDA $70.3M above the high end ($65–$68M), HSD revenue $104.8M above the high end ($101–$104M), and HSD net adds (-3.9K) better than guided range (-6.5K to -4.5K) .

What Went Wrong

Continued revenue and RGU pressure: Total revenue -9.2% YoY; net loss widened to -$17.8M (vs -$10.8M LY); HSD RGUs decreased 23K YoY and 3.9K sequentially amid ongoing legacy footprint pressure .
Video erosion persisted: Video RGUs fell to 42.5K from 48.9K in Q1 and 60.6K in Q4, reflecting migration to OTT offerings; video decline remained a headwind to subscription revenue and mix .
Interest expense elevated: $25.6M in Q2 (vs $17.8M LY), weighing on GAAP profitability despite operating efficiency gains; net loss margin deteriorated to (12.3)% from (6.8)% YoY .

Financial Results

Headline P&L and Profitability (GAAP unless noted)

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($M)	152.6	150.0	144.2
Net Income ($M)	-10.6	-13.9	-17.8
Diluted EPS ($)	-0.13	-0.17	-0.22
Adjusted EBITDA ($M)	73.7	76.7	70.3
Adjusted EBITDA Margin (%)	48.3%	51.1%	48.8%

Commentary: Q2 revenue declined sequentially and YoY on RGU attrition, particularly video; however, Adjusted EBITDA margin remained robust as programming costs fell and ARPU improved .

Segment Revenue Mix

Segment Revenue ($M)	Q4 2024	Q1 2025	Q2 2025
HSD	104.9	105.4	104.8
Video	25.6	22.9	18.5
Telephony	9.8	10.2	9.6
Total Subscription Services	140.3	138.5	132.9
Other Business Services	4.8	4.9	4.9
Other	7.5	6.6	6.4
Total Revenue	152.6	150.0	144.2

KPIs and Investment

KPI / Capital	Q4 2024	Q1 2025	Q2 2025
Homes Passed	1,962,100	1,977,600	1,997,100
Total Subscribers	478,700	473,800	469,600
HSD RGUs	470,400	465,900	462,000
HSD Net Adds (loss)	-10,200	-4,500	-3,900
Greenfield Homes Passed	61,900 (FY24)	75,600	91,100
Greenfield Penetration	16.6% (FY24)	16.3%	16.0%
Capital Expenditures ($M)	51.7	38.9	47.9
Cash ($M)	38.8	28.8	31.8
Total Long-term Debt & Leases ($M)	1,017.4	1,033.9	1,053.0
Net Leverage (LTM Adj. EBITDA)	~3.5x	3.4x	3.5x

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
HSD Revenue	Q2 2025	$101.0–$104.0M	Not provided in Q2 release	n/a
Total Revenue	Q2 2025	$141.0–$144.0M	Not provided in Q2 release	n/a
Adjusted EBITDA	Q2 2025	$65.0–$68.0M	Not provided in Q2 release	n/a
HSD Net Adds	Q2 2025	(-6.5K)–(-4.5K)	Not provided in Q2 release	n/a

Note: Actual Q2 results exceeded or met the high end of all above ranges: HSD revenue $104.8M, total revenue $144.2M, Adjusted EBITDA $70.3M, HSD net adds (-3.9K) .

Earnings Call Themes & Trends

Note: The Q2 2025 earnings call transcript could not be retrieved due to a source inconsistency; current-period themes reflect Q2 press releases.

Topic	Previous Mentions (Q4’24, Q1’25)	Current Period (Q2’25)	Trend
Greenfield fiber expansion	FY24: +31.5K homes; 16.6% penetration . Q1’25: +13.7K homes to 75.6K; 16.3% penetration .	+15.5K homes to 91.1K; 16.0% penetration .	Accelerating builds; penetration moderating as denominator grows.
Video migration/YouTube TV	Q1 mgmt: migration off video platform; tight churn; ARPU record . Q4: video RGUs decline called out .	Programming expense -$9.2M YoY; video RGUs continue to fall .	Continued mix shift benefits margins despite video revenue erosion.
ARPU	Q1: record ARPU $75 noted .	“Another quarter of record HSD ARPU” [CFO] .	Upward trajectory supports revenue per sub.
Cost actions/margins	Q4: SG&A/OpEx efficiency; margin gains . Q1: 51.1% Adj. EBITDA margin .	OpEx -14.6% YoY; Adj. EBITDA margin 48.8% .	Structural improvement sustained.
Leverage/liquidity	Q4: new Priority Credit Agreement . Q1: 3.4x leverage; $130.7M revolver capacity .	3.5x leverage; undrawn revolver $110.4M; revolver maturity extension tied to deal .	Liquidity maintained; maturity profile improved.
M&A process	Q1: special committee evaluating proposal .	Take-private at $5.20 announced .	Strategic pivot; stock catalyst.

Management Commentary

CEO (Q2 release): “As we continue to accelerate our fiber-to-the-home expansion, we're seeing growth in HSD Greenfield subscribers and consistently strong penetration rates… drive positive momentum heading into the second half of the year.”
CFO (Q2 release): “Our results this quarter reflect a lower cost base as we reduce our expenses related to video… Low-churn and another quarter of record HSD ARPU, highlight the underlying strength of our business.”
CEO (M&A release): “WOW!'s next chapter with DigitalBridge and Crestview will bring new and exciting opportunities… We intend to invest in expanding and upgrading WOW!'s networks…”

Q&A Highlights

The full Q2 2025 earnings call transcript could not be accessed due to a document retrieval inconsistency; as a result, Q&A highlights and any intra-quarter guidance clarifications are unavailable from the primary source on our platform.

Estimates Context

Consensus (S&P Global) vs actuals:

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue Consensus Mean ($M)	154.1 estimate; 152.6 actual*	148.2 estimate; 150.0 actual*	143.6 estimate; 144.2 actual*
Primary EPS Consensus Mean ($)	-0.1521 estimate; 0.0174 actual*	-0.1917 estimate; -0.0144 actual*	-0.1850 estimate; -0.0561 actual*
EBITDA Consensus Mean ($M)	70.4 estimate; 47.3 actual*	72.7 estimate; 60.8 actual*	67.7 estimate; 53.1 actual*

Values retrieved from S&P Global.*
Notes:

Revenue slightly beat in Q2 2025 versus consensus.
EPS comparisons use S&P “Primary EPS,” which may differ from GAAP diluted EPS (-$0.22 per company 8‑K) .
Company-reported Adjusted EBITDA ($70.3M in Q2) is not directly comparable to S&P EBITDA actuals/estimates; on Adjusted EBITDA, WOW exceeded its own Q2 guidance high end .

Key Takeaways for Investors

WOW executed above the high end of its Q2 guide across revenue, HSD revenue, Adjusted EBITDA, and HSD net adds, despite ongoing video attrition and higher interest expense .
Margin durability continues as the broadband-first mix and programming cost reductions offset RGU pressure; record HSD ARPU supports the revenue quality narrative .
The announced $5.20 cash take-private is the principal stock driver near term; focus shifts to regulatory/stockholder approvals and timeline (“by end of year or Q1 2026”) .
Greenfield scaling is on track with accelerating home builds and solid penetration; monitor sustainability of penetration as scale increases and competitive responses intensify .
Liquidity and maturities look manageable post revolver extension; leverage stable at ~3.5x LTM Adj. EBITDA ahead of a potential ownership transition .
Estimate frameworks may require nuance: GAAP EPS remains negative while S&P “Primary EPS” shows a smaller loss; Adjusted EBITDA beating internal guidance contrasts with S&P EBITDA shortfalls—basis alignment matters for comps .
Near-term trading likely anchored by deal spread/closure risk; medium-term thesis under private ownership centers on fiber growth ROI, ARPU resilience, and capital intensity pacing under new sponsors .

Appendix: Additional Data Points and Sources

Q2 revenue composition and YoY drivers (mix and volume declines partially offset by ARPU gains) .
OpEx details: Operating expenses down 14.6% YoY; programming expense -$9.2M; SG&A -5.0% YoY aided by business continuity insurance .
Subscriber trajectory and RGU mix (HSD/video/telephony) and homes passed table .
CapEx detail breakdown by category (CPE, scalable infra, support, line extensions) .
Liquidity metrics: cash $31.8M; undrawn revolver $110.4M; revolver maturity extension to 2027, to 2028 upon deal close .

Sources: Q2 2025 8‑K/press release and exhibits ; Q2 2025 earnings press release –; M&A press release –; Q1 2025 press release and guidance –; Q4 2024 press release –.

WideOpenWest, Inc. (WOW)·Q2 2025 Earnings Summary