Megacable Holdings (MEGACPO) Q4 2025 earnings summary

Executive summary

• Transitioned from high investment to consolidation and efficiency, focusing on fiber migration and service quality, with strong subscriber growth and improved ARPU through bundling and price increases.

• Achieved over 19 million homes passed and 84% of subscribers served by fiber, reinforcing a leading position in Mexico.

• Mass market segment drove robust revenue and profitability, achieving double-digit revenue growth for the third consecutive quarter, while the corporate segment remained soft.

• Net income surged 74.2% year-over-year, driven by operating efficiencies and improved financial results.

• CapEx as a percentage of revenue declined as expansion and network evolution projects matured.

Financial highlights

• Q4 2025 revenues reached MXN 9.2 billion, up 8.2% year-over-year; full-year revenues were MXN 35.4 billion, also up 8%.

• Mass segment revenues grew 10.3% year-over-year, offsetting a 3.3% decline in corporate telecom.

• EBITDA for Q4 was MXN 4.5 billion (up 15% year-over-year, margin 44%); full-year EBITDA was MXN 15.9 billion (up 11%, margin 45%).

• Net income for Q4 was MXN 721 million (up 74% year-over-year); full-year net income was MXN 2.8 billion (up 20%).

• Stock price closed at MXN 51.72, up 52.5% year-over-year.

Outlook and guidance

• CapEx to revenue ratio expected to decline further, with 2026 guidance at 24%-26%, and lower in 2027.

• Focus remains on consolidating growth, advancing fiber strategy, and maximizing free cash flow while maintaining investment-grade profile.

• EBITDA margin expected to expand by 50 basis points per year, reaching 47%-48% by 2028.

• Continued focus on expanding fiber coverage and digital content offerings to sustain subscriber and revenue growth.

• Ongoing migration to fiber technology expected to enhance service quality and bandwidth.