Cogeco Communications announces its Q1 2026 financial results

Executive Summary

• Cogeco Communications reported Q1 FY 2026 results (three months ended Nov 30, 2025), showing declines in revenue, adjusted EBITDA, profit and free cash flow versus the prior year.
• U.S. subscriber trends improved for a second consecutive quarter, delivering the best U.S. metrics in 15 quarters, while Canadian growth remained modest.
• The Board declared a quarterly dividend of $0.987 per share (up 7 %).

Key Details

• Revenue: $707.2 M vs. $738.7 M YoY (‑4.3 %); constant‑currency decline ‑4.9 %.
• Adjusted EBITDA: $353.8 M vs. $365.2 M YoY (‑3.1 %); constant‑currency ‑3.7 %.
• Adjusted EBITDA margin: 50.0 % (up from 49.4 %).
• Profit for the period: $93.1 M vs. $107.2 M YoY (‑13.1 %).
• Profit attributable to owners: $88.7 M vs. $100.6 M YoY (‑11.8 %).
• Adjusted profit attributable to owners: $89.5 M vs. $90.7 M YoY (‑1.3 %).
• Diluted EPS: $2.09 vs. $2.38 YoY (‑12.2 %).
• Adjusted diluted EPS: $2.11 vs. $2.14 YoY (‑1.4 %).
• Free cash flow: $125.5 M vs. $148.9 M YoY (‑15.7 %); constant‑currency ‑15.9 %.
• Free cash flow excl. network projects: $144.3 M vs. $170.7 M YoY (‑15.4 %).
• Net capital expenditures: $157.2 M (+4.2 % YoY); constant‑currency +3.5 %.
• Network expansion projects: 4,000+ homes passed in Q1 FY 2026.
• U.S. segment revenue: down 8.6 % (‑9.9 % cc) due to subscriber base contraction and pricing pressure.
• Canadian segment revenue: flat YoY; offset by lower ARPU from video/wireline declines, partially offset by Internet‑only growth.
• U.S. adjusted EBITDA: down 7.8 % (‑9.1 % cc).
• Canadian adjusted EBITDA: up 1.9 % (‑2.0 % cc).
• Dividend declared: $0.987 per share, a 7 % increase from $0.922 prior quarter.
• Credit outlooks: S&P and Moody’s upgraded credit outlooks for Cogeco.

Notable Quotes

“Our consolidated financial results for the quarter were in line with our expectations,” said Frédéric Perron, President and CEO.
“We are turning around our U.S. subscriber trends, leading to improved financials in the second half of the fiscal year.”

Materiality Assessment: Material – Negative (significant declines in revenue, profit, cash flow, and EBITDA relative to prior period.)