Cogeco Communications reported that first-quarter fiscal 2026 revenue declined by 4.9% in constant currency while adjusted EBITDA fell by 3.7%, driven primarily by weaker results in its U.S. operations. Diluted earnings per share dropped 12.2%, reflecting both lower EBITDA and the absence of a one-time gain from a sale-and-leaseback transaction recorded in the prior-year quarter. Capital intensity rose to 22.2% from 20.4%, and free cash flow in constant currency decreased by 15.9% compared with the year-ago period.

In the United States, Breezeline’s revenue declined 9.9% in constant currency as a result of a smaller subscriber base, more modest rate increases and a competitive pricing environment. Internet subscribers fell by 1,100, but this represented the smallest quarterly decline in a year and followed two straight quarters of improvement. Ohio was a standout region, adding 2,600 internet subscribers—the business’s strongest quarterly performance since its acquisition four years ago. Adjusted EBITDA in the U.S. dropped 9.1%, partly offset by cost-reduction and efficiency gains from the company’s transformation program.

Cogeco Connexion’s Canadian segment delivered stable revenue in the quarter, supported by the addition of 8,900 internet subscribers, although revenue per customer was modestly lower due to declines in video and wireline phone services. Adjusted EBITDA in Canada increased by 2% in constant currency, driven by cost-reduction initiatives and operating efficiencies under the three-year transformation plan. The company passed an additional 1,100 homes, primarily with fiber-to-the-home, and wireless subscriber growth continued to exceed internal expectations, prompting a pullback of promotional incentives.

Net debt to adjusted EBITDA stood at 3.2 turns, up slightly from 3.1 in the previous quarter, and management reaffirmed its target of maintaining leverage in the low three-turns range. The board approved a 7% increase in the quarterly dividend to CAD 0.987 per share. For the second quarter, the company expects consolidated revenue and EBITDA to decline in the low to mid-single digits in constant currency, with stronger U.S. performance anticipated in the second half of fiscal 2026 as price increases and cost initiatives phase in.