WideOpenWest’s second quarter results came alongside a significant development: the company announced it will be acquired by DigitalBridge Investments and Crestview Partners in an all-cash transaction. While the company’s revenue met Wall Street expectations, management emphasized ongoing progress in expanding its fiber-to-the-home offerings and greenfield markets. CEO Teresa Elder highlighted the company’s momentum in newer markets, stating, “We maintained strong penetration rates of 16%, all while growing our footprint.” Management also pointed to record average revenue per user (ARPU), driven by increased demand for high-speed tiers and a simplified pricing strategy.
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WideOpenWest (WOW) Q2 CY2025 Highlights:
- Revenue: $144.2 million vs analyst estimates of $143.6 million (9.2% year-on-year decline, in line)
- EPS (GAAP): -$0.22 vs analyst expectations of -$0.19 (18.9% miss)
- Adjusted EBITDA: $53.1 million vs analyst estimates of $67.69 million (36.8% margin, 21.6% miss)
- Operating Margin: 1.7%, in line with the same quarter last year
- Subscribers: 469,600, down 25,600 year on year
- Market Capitalization: $434.8 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From WideOpenWest’s Q2 Earnings Call
- Frank Garrett Louthan (Raymond James) asked about the long-term plans for greenfield and edge-out expansion post-acquisition. CEO Teresa Elder redirected the question to the press release and said future strategy would be determined by the new owners.
- Frank Garrett Louthan (Raymond James) questioned the timeline and potential regulatory hurdles for the acquisition. Elder responded that the deal is expected to close by the end of the year or in the first quarter of 2026 unless unforeseen regulatory issues arise.
- Batya Levi (UBS) requested details on the strategic review process and rationale behind the acquisition offer. Elder explained that a special committee conducted a thorough review, ultimately recommending the DigitalBridge and Crestview proposal.
- Batya Levi (UBS) inquired about the company’s fiber versus cable footprint and whether a breakup fee exists. Elder said more information would be available in upcoming proxy materials and that the majority of new greenfield development is fiber-to-the-home.
- Batya Levi (UBS) asked if CapEx plans for greenfield and edge-out expansion would continue this year. Elder confirmed there will be no change to the current year’s capital expenditure plans.
Catalysts in Upcoming Quarters
In the quarters ahead, our analysts will be watching (1) progress toward closing the DigitalBridge and Crestview acquisition and any regulatory updates, (2) execution of greenfield and edge-out fiber expansion, and (3) continued improvement in subscriber trends, especially in new markets. We will also monitor how the company manages its transition away from legacy video and balances capital allocation during the pending transaction.
WideOpenWest currently trades at $5.06, up from $3.41 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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