Results Read-Across and Call Backs (Post #245): 2Q Results Reveal Resilient Wireless & Softening Broadband Performance

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Results Read-Across and Call Backs (Post #245): 2Q Results Reveal Resilient Wireless & Softening Broadband Performance

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28 Jul 2026 11:17:25 ET │ 18 pages

Results Read-Across and Call Backs (Post #245)

2Q Results Reveal Resilient Wireless & Softening Broadband

Performance

With the big-5 Telco and Cable companies recently reporting 2Q results, we

summarize the results and performance relative to our expectations. High-level

corporate performance was fine with generally in-line service revenues, slightly

better EBITDA, slightly lower unlevered FCF on higher capex in the period, and

generally positive aggregate levered FCF generation. Underlying this performance, Michael Rollins, CFAAC

we find that wireless continues to show better performance from a stabilizing +1-212-816-1116

competitive environment. Mobile service revenue was slightly better on more michael.rollins@citi.com

favorable postpaid phone subscriber growth and relatively in-line ARPU. In contrast,

Broadband revenue decelerated more quickly, although headline growth is still being

amplified by M&A (within the last 12-months) by all 3 Telcos. With broadband

subscriptions nearly in-line, softer service revenue was largely from weakening

broadband ARPU on a yoy basis from aggressive Telco promotions to accelerate

share gains, the net impact of converged bundle discounts, and cable responses

(pricing strategy and retention efforts).

Within these results, we highlight our top-5 observations:

First, the device replacement cycle is lengthening with lower upgrades and lower

phone churn. The switcher rate remains generally stable, as well. Rising device prices

(largely from rising memory costs) and evolving MNO device promotions could