Altice USA (ATUS) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates

Altice USA (ATUS) reported Q2 2025 revenue of $2.15 billion, a 4.2% year-over-year decline and a slight miss against estimates, while its EPS of -$0.21 significantly underperformed the -$0.06 consensus. The company experienced broad residential revenue contraction, notably a 10.7% drop in video and a 6% overall residential revenue decrease, alongside minor misses in residential and SMB customer relationship metrics. Despite these declines, Altice saw growth in News and Advertising (+12.8%) and Mobile revenue (+36.9%). The stock has underperformed the broader market, returning -10.2% over the past month, and holds a Zacks Rank #4 (Sell), indicating potential near-term underperformance.

Analysis

Altice USA's second-quarter 2025 results reveal a significant deterioration in profitability and an ongoing erosion of its core business. The company reported a net loss per share of $0.21, a stark reversal from the $0.03 profit in the prior-year quarter and a substantial -250% miss against the consensus estimate of -$0.06. This was accompanied by a 4.2% year-over-year revenue decline to $2.15 billion. The weakness is broad-based across its primary segments, with total residential revenue falling 6% YoY, driven by a sharp 10.7% drop in video revenue and a concerning 3.3% contraction in the crucial broadband segment. These revenue declines are underpinned by misses on key customer metrics, including residential and SMB relationships, and a drop in Pay TV subscribers. While the company posted strong percentage growth in smaller divisions like News and Advertising (+12.8% YoY) and Mobile (+36.9% YoY), these segments are not large enough to offset the decay in its legacy operations. The stock's recent -10.2% return, in stark contrast to the S&P 500's gain, and its Zacks Rank #4 (Sell) reflect the market's negative reaction to these fundamental challenges.

Key Decisions for Investors

• Given the significant EPS miss and the swing to a net loss, investors should scrutinize the company's cost structure and margin trajectory for signs of further compression.
• The continued decline in core broadband and video revenues, coupled with stagnant subscriber metrics, warrants caution, and it may be prudent to await evidence of stabilization in these key segments before considering a long position.
• Considering the stock's significant recent underperformance and the official Zacks #4 (Sell) rating, investors holding the stock should reassess their thesis, as the report signals strong negative momentum with few near-term catalysts for a reversal.