Revenue contraction remains a primary concern, with the company reporting an 8.9% year-over-year decline in 2025Q3 while operating margins remain razor-thin at 0.6%.
| Revenue | 590.8M | 630.9M | 686.7M | 704.9M | 725.7M | 730.2M | 727M | 1.15B | 1.19B | 1.24B | 1.22B |
| Revenue Growth % | -8.7% | -8.13% | -2.58% | -2.87% | -0.62% | 0.44% | -36.99% | -2.89% | -3.95% | 1.64% | - |
| Cost of Revenue | 230.2M | 256.8M | 301M | 327M | 376.4M | 405.2M | 397.4M | 619M | 626.5M | 668.3M | 678.6M |
| Gross Profit | 360.6M | 374.1M | 385.7M | 377.9M | 349.3M | 325M | 329.6M | 534.8M | 561.6M | 568.7M | 538.5M |
| Gross Margin % | 61.04% | 59.3% | 56.17% | 53.61% | 48.13% | 44.51% | 45.34% | 46.35% | 47.27% | 45.97% | 44.24% |
| Gross Profit Growth % | - | -3.01% | 2.06% | 8.19% | 7.48% | -1.4% | -38.37% | -4.77% | -1.25% | 5.61% | - |
| Operating Expenses | 353.4M | 367.6M | 700.7M | 378.6M | 344.5M | 335.2M | 307.8M | 341M | 337.6M | 325.1M | 333.6M |
| Other Operating Expenses | - | - | - | - | - | - | - | - | - | - | - |
| EBITDA | 212.2M | 216.5M | -121.5M | 178.6M | 215.1M | 220.4M | 228M | 165.3M | 368.8M | 450.6M | 426M |
| EBITDA Margin % | 35.92% | 34.32% | -17.69% | 25.34% | 29.64% | 30.18% | 31.36% | 14.33% | 31.04% | 36.43% | 35% |
| EBITDA Growth % | 12.87% | 278.19% | -168.03% | -16.97% | -2.4% | -3.33% | 37.93% | -55.18% | -18.15% | 5.77% | - |
| Depreciation & Amortization | 205M | 210M | 193.5M | 179.3M | 210.3M | 230.6M | 206.2M | 186.9M | 198.1M | 207M | 221.1M |
| D&A / Revenue % | 34.7% | 33.29% | 28.18% | 25.44% | 28.98% | 31.58% | 28.36% | 16.2% | 16.67% | 16.73% | 18.17% |
| Operating Income (EBIT) | 7.2M | 6.5M | -315M | -700K | 4.8M | -10.2M | 21.8M | -21.6M | 170.7M | 243.6M | 204.9M |
| Operating Margin % | 1.22% | 1.03% | -45.87% | -0.1% | 0.66% | -1.4% | 3% | -1.87% | 14.37% | 19.69% | 16.84% |
| Operating Income Growth % | - | 102.06% | -44900% | -114.58% | 147.06% | -146.79% | 200.93% | -112.65% | -29.93% | 18.89% | - |
| Interest Expense | 4M | 88.6M | 71.1M | 38.7M | 93.5M | 130M | 141.9M | 132.5M | 151.6M | 211.1M | 226M |
| Interest Coverage | - | 0.07x | -4.40x | 0.41x | 0.12x | -0.07x | 0.18x | -0.15x | 1.18x | 1.00x | 0.83x |
| Interest / Revenue % | 0.68% | 14.04% | 10.35% | 5.49% | 12.88% | 17.8% | 19.52% | 11.48% | 12.76% | 17.07% | 18.57% |
| Non-Operating Income | -4M | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K |
| Pretax Income | -91.2M | -82.1M | -383.8M | -22.8M | -82.4M | -138.9M | -116.3M | -152.4M | 27M | -1M | -38.8M |
| Pretax Margin % | -15.44% | -13.01% | -55.89% | -3.23% | -11.35% | -19.02% | -16% | -13.21% | 2.27% | -0.08% | -3.19% |
| Income Tax | -13.2M | -23.3M | -96.1M | -20.3M | -13.8M | -30.6M | -33.9M | -61.8M | -132.5M | -27.3M | 9.9M |
| Effective Tax Rate % | 14.47% | 28.38% | 25.04% | 89.04% | 16.75% | 22.03% | 29.15% | 40.55% | -490.74% | 2730% | -25.52% |
| Net Income | -78M | -58.8M | -287.7M | -2.5M | 770.5M | 14.4M | 36.4M | -90.6M | 159.5M | 26.3M | -48.7M |
| Net Margin % | -13.2% | -9.32% | -41.9% | -0.35% | 106.17% | 1.97% | 5.01% | -7.85% | 13.42% | 2.13% | -4% |
| Net Income Growth % | 14.94% | 79.56% | -11408% | -100.32% | 5250.69% | -60.44% | 140.18% | -156.8% | 506.46% | 154% | - |
| EPS (Diluted) | -0.94 | -0.72 | -3.53 | -0.03 | -0.83 | 0.18 | 0.45 | -1.11 | 2.35 | -0.40 | -0.57 |
| EPS Growth % | 16.07% | 79.6% | -11745.64% | 96.41% | -561.11% | -60% | 140.54% | -147.23% | 687.5% | 29.82% | - |
| EPS (Basic) | - | -0.72 | -3.53 | -0.03 | -0.83 | 0.18 | 0.45 | -1.11 | 2.35 | -0.40 | -0.57 |
| Diluted Shares Outstanding | 82.66M | 81.86M | 81.6M | 83.93M | 82.72M | 81.56M | 81.19M | 81.81M | 78.92M | 84.73M | 84.73M |
High leverage and subscriber churn
As indicated by recent quarterly filings, WOW's revenue has consistently declined, reaching $144.0 million in 2025Q3, representing an 8.9% year-over-year contraction that highlights the ongoing difficulty in stabilizing the top-line as legacy video services continue to erode faster than broadband gains can offset.
The consistent negative growth trajectory suggests that the company's pivot to an HSD-first model has yet to reach a floor. Investors should monitor whether the current rate of decline is a result of intentional churn of low-margin customers or an involuntary loss of market share to fiber and fixed wireless competitors.
According to the provided financial data, WOW has managed to expand its gross margin to 62.6% in 2025Q3, suggesting that the strategic de-emphasis of high-cost video programming is successfully improving the profitability profile of the remaining revenue base despite the overall top-line shrinkage.
While the gross margin expansion appears positive, it remains insufficient to cover the company's heavy operating expenses and debt service. This structural improvement may be a necessary prerequisite for future viability, but it does not yet translate into meaningful bottom-line profitability.
Based on reported figures, WOW's operating margin remains razor-thin at 0.6% in 2025Q3, demonstrating that the company lacks the necessary scale to leverage its fixed cost base effectively, as SG&A expenses continue to consume the majority of the gross profit generated by the broadband segment.
The inability to scale operating income suggests that the company's cost structure is too rigid for its current revenue size. This lack of operating leverage implies that any further revenue degradation could quickly push the company into consistent operating losses, warranting significant caution regarding future cash flow generation.
Financial statements reveal that WOW has reported a net loss in every quarter since 2023Q2, with a net margin of -24.8% in 2025Q3, indicating that non-operating items and interest expenses are significantly outweighing the company's core operational output and hindering any path to sustainable profitability.
The recurring net losses, coupled with consistent stock-based compensation expenses, suggest that the quality of earnings is currently poor. Investors should be wary of the disconnect between the company's gross margin improvements and its inability to produce positive net income, which appears to be a function of its heavy debt burden.
As highlighted by the company's -9.32% net margin and high debt-to-equity ratio, short-sellers may focus on the potential for a liquidity crunch if the current rate of subscriber attrition accelerates due to the expiration of federal broadband subsidies and intensifying regional fiber competition.
The market's reliance on a potential acquisition premium may be misplaced given the significant capital expenditure required to modernize the HFC network. If the company cannot demonstrate a clear path to positive free cash flow, the risk of a distressed capital restructuring appears to be a material concern.
Quick answers to the most common questions about buying WOW stock.
For fiscal year 2024, WideOpenWest, Inc. (WOW) reported total revenue of $630.9M. This represents a 48.2% decline compared to $1.22B in 2015.
WideOpenWest, Inc. (WOW) reported a net loss of $58.8M for the fiscal year ending 2024.
WideOpenWest, Inc. (WOW) reported an operating income of $6.5M, resulting in an operating profit margin of 1.0%. This margin reflects the operational efficiency of the business before interest and taxes.
WideOpenWest, Inc. (WOW) generated $374.1M in gross profit for the year, representing a gross profit margin of 59.3%. This demonstrates the company's core pricing power and production efficiency.