WideOpenWest Reports 7% Revenue Decline but Improved Income from Operations in Q1 2025

WideOpenWest, Inc. (WOW) reported a decline in financial performance for the first quarter of 2025, with total revenue decreasing to $150.0 million, down 7% from $161.5 million in the same period last year. The decrease in revenue was primarily attributed to a $10.5 million drop in subscription revenue, which fell to $138.5 million, driven by a reduction in revenue-generating units (RGUs) and a shift in service offering mix. Despite the revenue decline, the company reported an increase in income from operations, which rose to $8.7 million from $5.2 million in the prior year, reflecting a reduction in operating expenses.

The company's net loss for the quarter was $13.9 million, an improvement from the $15.0 million loss reported in the first quarter of 2024. This loss translated to a basic and diluted loss per share of $0.17, compared to a loss of $0.18 per share in the previous year. The improvement in net loss was supported by a significant reduction in selling, general, and administrative expenses, which decreased by 13% to $31.5 million, alongside a decrease in operating expenses excluding depreciation and amortization.

In terms of operational metrics, WOW served approximately 473,800 customers as of March 31, 2025, a decrease from 478,700 customers a year earlier. The company’s broadband network passed nearly 2.0 million homes and businesses, with high-speed data (HSD) services continuing to be a focal point, as 94% of new connections were HSD only. The average revenue per unit (ARPU) increased due to rate adjustments made in late 2024 and early 2025, partially offsetting the decline in total subscribers.

Strategically, WOW is focused on expanding its market presence and enhancing its service offerings. The company is actively building out its network in adjacent and non-adjacent areas, aiming to leverage its advanced hybrid fiber-coax network to improve customer experience. The company’s capital expenditures for the quarter were $38.9 million, significantly lower than the $72.5 million spent in the same period last year, reflecting a shift in the timing of spending related to market expansion initiatives.

Looking ahead, WOW anticipates that its existing cash balances, along with available borrowing capacity under its revolving credit facility, will be sufficient to meet its operational and liquidity needs over the next 12 months. The company is also in the process of addressing a material weakness in its internal controls over financial reporting, which it aims to remediate by the end of 2025. Despite the challenges, WOW remains committed to enhancing its operational efficiency and expanding its service offerings to drive future growth.