WOW! Reports First Quarter 2025 Results with Notable Highlights from Market Expansion

Introduction

On May 6, 2025, WideOpenWest, Inc. (WOW!) released its financial and operational results for the first quarter ended March 31, 2025. As a premier broadband provider, WOW! services nearly 2 million residential, business, and wholesale consumers across the United States. This report outlines key highlights, challenges, and strategic advancements depicted in WOW!'s latest results.

Financial Performance Overview

In the first quarter of 2025, WOW! reported a total revenue of $150.0 million, marking a decrease of $11.5 million or 7.1% compared to the same period in 2024. This decline primarily stems from a noticeable shift in service offerings and a drop in subscriber numbers that affected High-Speed Data (HSD) revenue, which totaled $105.4 million, down $0.8 million from the previous year.

The net loss for the quarter stood at $13.9 million, though this represented an improvement over the loss of $15.0 million experienced in Q1 2024. In contrast, WOW!'s Adjusted EBITDA surged by $9.3 million or 13.8%, reaching $76.7 million, driven by strategic cost management and an emerging focus on high-margin services in newly established markets.

Subscriber Metrics and Market Expansion

As of March 31, 2025, WOW! recorded approximately 473,800 total subscribers, reflecting a loss of 26,900 or 5% year-over-year. Among these, HSD Revenue Generating Units (RGUs) accounted for 465,900, also down by 5% from the previous year. However, the company's expansion strategy in Greenfield markets showed encouraging results. WOW! passed approximately 13,700 new homes during this quarter, bringing the total in these markets to 75,600, which represents a penetration rate of 16.3%.

CEO Teresa Elder remarked on the progress, stating, "Our first quarter results build on the momentum in our Greenfield markets that we carried forward from last year." The resurgence in subscriber numbers in these new markets underscores the potential for growth as WOW! enhances its footprint.

Cost Management and Operating Expenses

The company successfully reduced operating expenses to $59.0 million, down 12.6% year-over-year, taking steps to manage costs effectively without compromising operational efficiency. Areas of significant reductions included programming expenses, driven by a decline in video RGUs. Selling, general, and administrative expenses also saw a decrease of 13.5%, influenced by lower marketing expenses and compensations.

Market Outlook and Guidance for Q2 2025

Looking ahead, WOW! has shared its guidance for Q2 2025, forecasting HSD revenue between $101.0 to $104.0 million and total revenue projected at $141.0 to $144.0 million. The adjusted EBITDA is expected to range from $65.0 to $68.0 million, with net additions of HSD subscribers between (6,500) and (4,500). This guidance signifies the company’s cautious optimism amid current market dynamics.

Conclusion

Overall, while WOW! faced challenges with decline in revenue and subscriber numbers, its growth in Greenfield markets and enhanced EBITDA margins reflect a well-directed strategy aimed at future expansion. As WOW! continues to optimize its service offerings and explore new markets, it is strategically positioning itself to harness growth opportunities in a competitive broadband landscape. The comprehensive results and future projections will be further discussed in the upcoming webcast, ensuring transparency and investor engagement as WOW! navigates its path forward.

For more information on WOW!'s financial report and to access future updates, investors can visit WOW!'s investor relations website.