Cogeco (CGO) Q4 2025 earnings summary

Executive summary

• Completed year one of a three-year transformation program, achieving targeted cost synergies and the best Canadian internet subscriber growth in 13 years, with 16,988 new subscribers in Q4 2025.

• Launched Canadian wireless service ahead of schedule, now deployed across most of the footprint, with strong early sales.

• U.S. operations saw improved subscriber trends, with Ohio recording its first customer growth since acquisition.

• Announced a 7% dividend increase to $0.987 per share, supported by anticipated strong free cash flow.

• Unified management structure for Canadian and U.S. operations to drive synergies and accelerate growth.

Financial highlights

• Fiscal 2025 revenue was $2.91B, with Adjusted EBITDA at $1.44B and free cash flow at $517M.

• Q4 2025 revenue decreased by 4.9% year-over-year to $731.4 million; Adjusted EBITDA down 3.8% to $357.1 million.

• Canadian segment revenue declined 1.5% year-over-year, with 17,000 new internet subscribers offsetting declines in video and wireline phone.

• U.S. segment revenue declined 9.0%–9.2% year-over-year, with Adjusted EBITDA down 7.6%–7.9%.

• Free cash flow in constant currency decreased 27.4% in Q4 but rose 7.9% for the full year.

Outlook and guidance

• Fiscal 2026 guidance: consolidated revenue expected to decrease 1–3%, Adjusted EBITDA to decrease 0–2% year-over-year.

• Capital expenditures projected at CAD 560–600 million, with CAD 100–140 million for growth-oriented network expansions.

• Free cash flow (excluding network expansions) expected to increase 0–10% versus fiscal 2025.

• Capital intensity targeted at 19%–21%.

• Expect material sequential improvement in Adjusted EBITDA trends starting in Q2 2026.