WideOpenWest (WOW) Q4 2024 earnings summary

Executive summary

• Total revenue for Q4 2024 was $152.6M, down 9.6% year-over-year; full year revenue was $630.9M, down 8.1%.

• Adjusted EBITDA for Q4 was $73.7M (margin 48.3%), and $288.4M for the year (margin 45.7%), both up from prior year.

• Greenfield fiber expansion more than doubled the all-fiber footprint, passing 31,500 new homes in 2024, with penetration rising to 16.6%.

• Net loss improved to $10.6M for Q4 and $58.8M for the year, compared to $43.5M and $287.7M losses in 2023.

• Closed a $200M super priority term loan in Q4 to support fiber expansion, with potential for $175M more in 2025.

Financial highlights

• HSD revenue for Q4 was $104.9M, down 3.5% year-over-year; full year HSD revenue was $423.6M, down 1.6%.

• Adjusted EBITDA margin rose to 48.3% in Q4 and 45.7% for the year, up from 42.2% and 40.1% in 2023.

• Q4 Adjusted Unlevered Free Cash Flow was $22M, up from $(9.4)M in Q4 2023; full year was $72.6M, up from $6.5M.

• Total capital expenditures for 2024 were $215.8M, down 19.7% from 2023.

• Q4 net loss was $10.6M, improved from $43.5M loss in Q4 2023.

Outlook and guidance

• Q1 2025 guidance: HSD revenue $102–$104M, total revenue $147–$149M, adjusted EBITDA $72–$74M.

• HSD net adds expected between negative 6,000 and negative 4,500 for Q1 2025.

• Plans to spend $60–$70M on greenfield expansion CapEx in 2025.

• Targeting 400,000 new homes passed over the next few years.