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Cogeco Communications announces its Q3 2026 financial results

MONTRÉAL, July 15, 2026 /CNW/ - Today, Cogeco Communications Inc. (TSX:CCA) ("Cogeco Communications" or the "Corporation") announced its financial results for the third quarter ended May 31, 2026."Our Canadian performance remained strong in Q3, with positive year-on-year growth in adjusted EBITDA f…

Continued positive year-on-year revenue and adjusted EBITDA performance in Canada

Wireless business continues to grow in both countries

Fourth consecutive quarter of positive Ohio Internet subscriber growth

Expanded welo, Breezeline's U.S. digital challenger brand, to cover all of our Ohio footprint

Fiscal 2026 financial guidelines as issued on April 9th re-confirmed

MONTRÉAL, July 15, 2026 /CNW/ - Today, Cogeco Communications Inc. (TSX:CCA) ("Cogeco Communications" or the "Corporation") announced its financial results for the third quarter ended May 31, 2026.

"Our Canadian performance remained strong in Q3, with positive year-on-year growth in adjusted EBITDA for a third consecutive quarter," stated Frédéric Perron, President and CEO. "Our wireless sales remain ahead of plan, and we are seeing a clear churn benefit from fixed-mobile convergence, which will become more meaningful as we continue to scale up.

"In the U.S., we experienced a further intensification of the competitive environment, resulting in our financials not improving as fast as expected, despite executing well on our turnaround efforts," continued Mr. Perron. "We are planning an optimization of capital investments going into next fiscal year, which will facilitate free cash flow generation."

Consolidated financial highlights

Three months ended May 31

2026

2025

Change

Change in

constant

currency

(1)

(In thousands of Canadian dollars, except % and per share data) (unaudited)

Revenue

696,681

730,679

(4.7)

(3.6)

Adjusted EBITDA (1)

351,521

362,377

(3.0)

(2.0)

Adjusted EBITDA margin (1)

50.5 %

49.6 %

Profit (loss) for the period

(1,737,588)

(i)

73,300

—

Profit (loss) for the period attributable to owners of the Corporation

(1,356,281)

(i)

69,895

—

Adjusted profit attributable to owners of the Corporation (1)(2)

99,741

77,186

29.2

Cash flows from operating activities

319,932

400,789

(20.2)

Free cash flow (1)

169,235

143,946

17.6

18.4

Free cash flow, excluding network expansion projects (1)

190,837

157,231

21.4

22.2

Acquisition of property, plant and equipment

121,038

125,933

(3.9)

Net capital expenditures (1)(3)

120,853

125,462

(3.7)

(2.5)

Net capital expenditures, excluding network expansion projects (1)

99,251

112,177

(11.5)

(10.4)

Capital intensity (1)

17.3 %

17.2 %

Capital intensity, excluding network expansion projects (1)

14.2 %

15.4 %

Diluted earnings (loss) per share

(32.28)

(i)

1.64

—

Adjusted diluted earnings per share (1)(2)

2.35

1.82

29.1

(i)
Includes non-cash pre-tax impairment charges amounting to $2.2 billion, or US$1.6 billion ($1.8 billion, or US$1.3 billion, net of deferred income taxes) related to the American telecommunications segment.

Operating results

For the third quarter of fiscal 2026 ended on May 31, 2026:

Revenue decreased by 4.7% to $696.7 million. On a constant currency basis(1), revenue decreased by 3.6% due to a decline in the American telecommunications segment, offset in part by revenue growth in the Canadian telecommunications segment, as explained below:
- American telecommunications' revenue decreased by 10.1%, or 7.8% in constant currency, mainly due to a lower subscriber base compared to the previous year, and to a higher proportion of customers subscribing to Internet-only services, as well as a competitive pricing environment.
- Canadian telecommunications' revenue increased by 0.5%, mainly resulting from the cumulative effect of high-speed Internet service additions over the past year, offset in part by a decline in video and wireline phone service subscribers, as an increasing proportion of customers subscribe to Internet-only services, as well as a competitive pricing environment.

Adjusted EBITDA decreased by 3.0% to $351.5 million. On a constant currency basis, adjusted EBITDA decreased by 2.0%, mainly due to lower revenue in the American telecommunications segment, offset in part by cost reduction initiatives and operating efficiencies across the Corporation as a result of our ongoing three-year transformation program.
- American telecommunications' adjusted EBITDA decreased by 10.0%, or 7.8% in constant currency.
- Canadian telecommunications' adjusted EBITDA increased by 3.9%(4), or 3.7%(4) in constant currency.

As previously announced, as competitive pressures intensified in the U.S. during the third quarter of fiscal 2026, the Corporation recognized non-cash pre-tax impairment charges amounting to $2.2 billion, or US$1.6 billion ($1.8 billion, or US$1.3 billion, net of deferred income taxes), within its American telecommunications segment, during the third quarter of fiscal 2026.

Loss for the period amounted to $1.7 billion, of which $1.4 billion, or $32.28 per diluted share, was attributable to owners of the Corporation compared to a profit of $73.3 million, $69.9 million, and $1.64 per diluted share, respectively, in the comparable period of fiscal 2025. The decreases in profit for the period and profit attributable to owners of the Corporation resulted mainly from the non-cash pre-tax impairment charges recognized during the quarter, as well as lower adjusted EBITDA, partly offset by lower depreciation and amortization expense and financial expense.
- Excluding the non-cash impairment charges and certain other elements, adjusted profit attributable to owners of the Corporation(2) was $99.7 million, or $2.35 per diluted share(2), an increase compared to $77.2 million, or $1.82 per diluted share, last year.

Net capital expenditures were $120.9 million, a decrease of 3.7% compared to $125.5 million in the same period of the prior year. In constant currency, net capital expenditures(1) were $122.3 million, a decrease of 2.5% compared to last year, mainly due to lower capital spending related to customer premise equipment in the American telecommunications segment, partly offset by higher spending in the Canadian telecommunications segment, mainly due to the timing of certain initiatives.
- Net capital expenditures in connection with network expansion projects were $21.6 million, or $21.7 million in constant currency(1), compared to $13.3 million in the same period of the prior year. Excluding network expansion projects, net capital expenditures were $99.3 million, a decrease of 11.5% compared to $112.2 million in the same period of the prior year. In constant currency, net capital expenditures, excluding network expansion projects(1) were $100.5 million, a decrease of 10.4% compared to last year.
- Capital intensity was 17.3% compared to 17.2% last year. Excluding network expansion projects, capital intensity was 14.2% compared to 15.4% in the same period of the prior year.

Acquisition of property, plant and equipment decreased by 3.9% to $121.0 million, mainly resulting from lower spending.

Free cash flow increased by 17.6%, or 18.4% in constant currency, and amounted to $169.2 million, or $170.4 million in constant currency(1), mainly due to lower financial expense, as well as lower acquisition, integration, restructuring and other costs, in part due to lower restructuring costs related to the Corporation's transformation initiatives. Free cash flow, excluding network expansion projects, increased by 21.4%, or 22.2% in constant currency, and amounted to $190.8 million, or $192.1 million in constant currency.

Cash flows from operating activities decreased by 20.2% to $319.9 million, mostly due to the timing of payments made to suppliers and the collection of trade and other receivables and to higher income taxes paid, partly offset by lower interest paid.

Cogeco Communications maintains its fiscal 2026 financial guidelines as issued on April 9, 2026. However, the assumed current income tax expense is now expected to be approximately $25 million (compared to a current effective income tax rate of approximately 8.5%, or $40 million, under the previous financial guidelines). We do not expect this revised assumption to have a significant impact on Cogeco Communications' financial guidelines as previously issued. These financial guidelines, including the various assumptions underlying them, contain forward-looking statements concerning the business outlook for Cogeco Communications, and should be read in conjunction with the "Forward-looking statements" section of this press release.

At its July 15, 2026 meeting, the Board of Directors of Cogeco Communications declared a quarterly dividend of $0.987 per share, an increase of 7.0% compared to $0.922 per share in the comparable quarter of fiscal 2025.

(1)

Adjusted EBITDA and net capital expenditures are total of segments measures. Adjusted EBITDA margin and capital intensity are supplementary financial measures. Constant currency basis, adjusted profit attributable to owners of the Corporation, net capital expenditures, excluding network expansion projects, free cash flow and free cash flow, excluding network expansion projects are non-IFRS Accounting Standards measures. Change in constant currency, capital intensity, excluding network expansion projects and adjusted diluted earnings per share are non-IFRS Accounting Standards ratios. These indicated terms do not have standardized definitions prescribed by IFRS® Accounting Standards, as issued by the International Accounting Standards Board ("IFRS Accounting Standards") and therefore, may not be comparable to similar measures presented by other companies. For more information on these financial measures, please consult the "Non-IFRS Accounting Standards and other financial measures" section of this press release.

(2)

Excludes the impact of non-cash impairment charges, acquisition, integration, restructuring and other costs, and gains/losses on debt modification and/or extinguishment, which include gains/losses on repurchase of debt (all net of tax and non-controlling interest).

(3)

Net capital expenditures exclude non-cash acquisitions of right-of-use assets and the purchases, and related borrowing costs, of spectrum licences, and are presented net of government subsidies, including the utilization of those received in advance.

(4)

Following a full-scale launch of its Canadian wireless service offering across the majority of its operating footprint in Québec and Ontario during the first quarter of fiscal 2026, the Corporation changed the presentation of its reportable segments by including the Canadian wireless operations within its Canadian telecommunications segment. Cogeco Mobile's operations were previously included within "Corporate and eliminations" during the start-up phase. Comparative figures were restated to conform to the current presentation.

Financial highlights

Change in

constant

currency

Change in

constant

currency

Three and nine months ended May 31

2026

2025

Change

(1)

(2)

2026

2025

Change

(1)

(2)

(In thousands of Canadian dollars, except % and per share data)

Operations

Revenue

696,681

730,679

(4.7)

(3.6)

2,097,488

2,201,800

(4.7)

(4.0)

Adjusted EBITDA (2)

351,521

362,377

(3.0)

(2.0)

1,043,089

1,084,091

(3.8)

(3.1)

Adjusted EBITDA margin (2)

50.5 %

49.6 %

49.7 %

49.2 %

Acquisition, integration, restructuring and other costs (3)

1,046

9,211

(88.6)

8,679

7,288

19.1

Impairment of assets

2,223,846

1,574

—

2,223,846

1,574

—

Profit (loss) for the period

(1,737,588)

73,300

—

(1,560,908)

260,097

—

Profit (loss) for the period attributable to owners of the Corporation

(1,356,281)

69,895

—

(1,187,599)

245,157

—

Adjusted profit attributable to owners of the Corporation (2)(4)

99,741

77,186

29.2

272,482

248,553

9.6

Cash flow

Cash flows from operating activities

319,932

400,789

(20.2)

666,813

872,866

(23.6)

Free cash flow (2)

169,235

143,946

17.6

18.4

449,817

409,407

9.9

10.3

Free cash flow, excluding network expansion projects (2)

190,837

157,231

21.4

22.2

504,201

460,064

9.6

10.0

Acquisition of property, plant and equipment

121,038

125,933

(3.9)

401,815

438,547

(8.4)

Net capital expenditures (2)(5)

120,853

125,462

(3.7)

(2.5)

399,594

434,002

(7.9)

(7.1)

Net capital expenditures, excluding network expansion projects (2)

99,251

112,177

(11.5)

(10.4)

345,210

383,345

(9.9)

(9.1)

Capital intensity (2)

17.3 %

17.2 %

19.1 %

19.7 %

Capital intensity, excluding network expansion projects (2)

14.2 %

15.4 %

16.5 %

17.4 %

Per share data (6)

Earnings (loss) per share

Basic

(32.28)

1.66

—

(28.25)

5.82

—

Diluted (7)

(32.28)

1.64

—

(28.25)

5.78

—

Adjusted diluted (2)(4)(7)

2.35

1.82

29.1

6.42

5.86

9.6

Dividends per share

0.987

0.922

7.0

2.961

2.766

7.0

(1)

Key performance indicators presented on a constant currency basis are obtained by translating financial results from the current periods denominated in US dollars at the foreign exchange rates of the comparable periods of the prior year. For the three and nine-month periods ended May 31, 2025, the average foreign exchange rates used for translation were 1.4069 USD/CDN and 1.4042 USD/CDN, respectively.

(2)

Adjusted EBITDA and net capital expenditures are total of segments measures. Adjusted EBITDA margin and capital intensity are supplementary financial measures. Adjusted profit attributable to owners of the Corporation, free cash flow, free cash flow, excluding network expansion projects and net capital expenditures, excluding network expansion projects are non-IFRS Accounting Standards measures. Change in constant currency, capital intensity, excluding network expansion projects and adjusted diluted earnings per share are non-IFRS Accounting Standards ratios. These indicated terms do not have standardized definitions prescribed by IFRS Accounting Standards and therefore, may not be comparable to similar measures presented by other companies. For more information on these financial measures, please consult the "Non-IFRS Accounting Standards and other financial measures" section of this press release.

(3)

For the three-month periods ended May 31, 2026 and 2025, acquisition, integration, restructuring and other costs were mainly related to costs associated with the configuration and customization related to cloud computing and other arrangements, as well as additional restructuring costs incurred in connection with the Corporation's transformation initiatives. For the nine-month periods ended May 31, 2026 and 2025, acquisition, integration, restructuring and other costs were mostly related to restructuring costs incurred and costs associated with the configuration and customization related to cloud computing and other arrangements. In addition, for the nine-month period ended May 31, 2025, these costs were partly offset by a $13.8 million non-cash gain recognized during the first quarter of fiscal 2025 in connection with a sale and leaseback transaction.

(4)

(5)

(6)

Per multiple and subordinate voting share.

(7)

For the third quarter and the first nine months of fiscal 2026, the weighted average number of diluted subordinate voting shares used for the calculation of the adjusted diluted earnings per share included 407,460 share-based compensation units (comprising stock options, incentive shares units and performance share units) and 401,046 units (comprising stock options, incentive shares units and performance share units), respectively. As for the calculation of the diluted loss per share, these share-based compensation units were deemed to be anti-dilutive due to the loss incurred during the respective periods and therefore were excluded from the calculation.

As at

May 31, 2026

August 31, 2025

(In thousands of Canadian dollars)

Financial condition

Cash

77,308

75,152

Total assets

7,489,904

9,692,395

Long-term debt

Current

268,071

43,632

Non-current

4,198,993

4,510,769

Net indebtedness (1)

4,438,261

4,527,171

Equity attributable to owners of the Corporation

1,849,815

3,160,522

(1)
Net indebtedness is a capital management measure. For more information on this financial measure, please consult the "Non-IFRS Accounting Standards and other financial measures" section of the Corporation's MD&A for the three and nine-month periods ended May 31, 2026, available on SEDAR+ at .

Forward-looking statements

Certain statements contained in this press release constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to Cogeco Communications Inc.'s ("Cogeco Communications" or the "Corporation") future outlook and anticipated events, business, operations, financial performance, financial condition or results and, in some cases, can be identified by terminology such as "may"; "will"; "should"; "expect"; "plan"; "anticipate"; "believe"; "intend"; "estimate"; "predict"; "potential"; "continue"; "foresee"; "ensure" or other similar expressions concerning matters that are not historical facts. Particularly, statements relating to the Corporation's financial guidelines, future operating results and economic performance, objectives and strategies are forward-looking statements. These statements are based on certain factors and assumptions including expected growth, results of operations, purchase price allocation, tax rates, weighted average cost of capital, performance and business prospects and opportunities, which Cogeco Communications believes are reasonable as of the current date. Refer in particular to the "Corporate objectives and strategy" and "Fiscal 2026 financial guidelines" sections of the Corporation's fiscal 2025 annual Management's Discussion and Analysis ("MD&A"), and the "Fiscal 2026 revised financial guidelines" presented in the press release issued on April 9, 2026 for a discussion of certain key economic, market and operational assumptions we have made in preparing forward-looking statements. While management considers these assumptions to be reasonable based on information currently available to the Corporation, they may prove to be incorrect. Forward-looking information is also subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what Cogeco Communications currently expects. These factors include risks such as general market conditions, competitive risks (including changing competitive and technology ecosystems and disruptive competitive strategies adopted by our competitors), business risks, regulatory risks (including changes in laws or government policies and the impact of regulatory decisions, such as those of the Canadian Radio-television and Telecommunications Commission ("CRTC") in Canada or of the Federal Communications Commission in the U.S.), tax risks, technology risks (including the evolution of technology and the threat of cybersecurity), financial risks (including variations in currency and interest rates), economic conditions (including inflation, trade tariffs, reduced consumer spending and increasing costs), talent management risks (including the highly competitive market for a limited pool of digitally skilled employees), human-caused and natural threats to the Corporation's network (including increased frequency of extreme weather events with the potential to disrupt operations), infrastructure and systems, sustainability and sustainability reporting risks, ethical behavior risks, ownership risks, litigation risks and public health and safety, many of which are beyond the Corporation's control. For more exhaustive information on these risks and uncertainties, the reader should refer to the "Uncertainties and main risk factors" section of the Corporation's fiscal 2025 annual MD&A and of the fiscal 2026 third-quarter MD&A. These factors are not intended to represent a complete list of the factors that could affect Cogeco Communications and future events and results may vary significantly from what management currently foresees. If management's estimates of forecasted results deteriorate, we may be required to recognize material non-cash charges relating to impairment of assets. The reader should not place undue importance on forward-looking information contained in this press release and the forward-looking statements contained in this press release represent Cogeco Communications' expectations as of the date of this press release (or as of the date they are otherwise stated to be made) and are subject to change after such date. While management may elect to do so, the Corporation is under no obligation (and expressly disclaims any such obligation) and does not undertake to update or alter this information at any particular time, whether as a result of new information, future events or otherwise, except as required by law.

All amounts are stated in Canadian dollars unless otherwise indicated. This press release should be read in conjunction with the Corporation's MD&A for the three and nine-month periods ended May 31, 2026, the Corporation's condensed interim consolidated financial statements and the notes thereto for the same periods prepared in accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards") and the Corporation's fiscal 2025 Annual Report.

Non-IFRS Accounting Standards and other financial measures

This press release includes references to non-IFRS Accounting Standards and other financial measures used by Cogeco Communications. These financial measures are reviewed in assessing the performance of Cogeco Communications and used in the decision-making process with regard to its business units.

Reconciliations between non-IFRS Accounting Standards and other financial measures to the most directly comparable IFRS Accounting Standards measures are provided below. Certain additional disclosures for non-IFRS Accounting Standards and other financial measures used in this press release have been incorporated by reference and can be found in the "Non-IFRS Accounting Standards and other financial measures" section of the Corporation's MD&A for the three and nine-month periods ended May 31, 2026, available on SEDAR+ at . The following non-IFRS Accounting Standards measures are used as a component of Cogeco Communications' non-IFRS Accounting Standards ratios.

Specified non-IFRS Accounting Standards measures

Used in the component of the following non-IFRS Accounting Standards ratios

Adjusted profit attributable to owners of the Corporation

Adjusted diluted earnings per share

Constant currency basis

Change in constant currency

Net capital expenditures, excluding network expansion projects

Capital intensity, excluding network expansion projects

For the three and nine-month periods ended May 31, 2026, the average foreign exchange rates used for translation were 1.3730 USD/CDN and 1.3814 USD/CDN, respectively. Financial measures presented on a constant currency basis for the three and nine-month periods ended May 31, 2026 are translated at the average foreign exchange rate of the comparable periods of the prior year, which were 1.4069 USD/CDN and 1.4042 USD/CDN, respectively.

Constant currency basis and foreign exchange impact reconciliation

Consolidated

Three months ended May 31

2026

2025

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign

exchange

impact

constantcurrency

Actual

Actual

constant currency

Revenue

696,681

7,897

704,578

730,679

(4.7)

(3.6)

Operating expenses

339,146

4,367

343,513

363,380

(6.7)

(5.5)

Management fees – Cogeco Inc.

6,014

—

6,014

4,922

22.2

Adjusted EBITDA

351,521

3,530

355,051

362,377

(3.0)

(2.0)

Free cash flow

169,235

1,175

170,410

143,946

17.6

18.4

Net capital expenditures

120,853

1,419

122,272

125,462

(3.7)

(2.5)

Nine months ended May 31

2026

2025

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign

exchange

impact

constant currency

Actual

Actual

constant currency

Revenue

2,097,488

15,821

2,113,309

2,201,800

(4.7)

(4.0)

Operating expenses

1,036,357

8,709

1,045,066

1,102,944

(6.0)

(5.2)

Management fees – Cogeco Inc.

18,042

—

18,042

14,765

22.2

Adjusted EBITDA

1,043,089

7,112

1,050,201

1,084,091

(3.8)

(3.1)

Free cash flow

449,817

1,569

451,386

409,407

9.9

10.3

Net capital expenditures

399,594

3,425

403,019

434,002

(7.9)

(7.1)

Canadian telecommunications segment

Three months ended May 31

2026

2025

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign

exchange

impact

constant currency

Actual

(1)

Actual

constant currency

Revenue

376,723

—

376,723

374,900

0.5

Operating expenses

172,794

350

173,144

178,554

(3.2)

(3.0)

Adjusted EBITDA

203,929

(350)

203,579

196,346

3.9

3.7

Net capital expenditures

69,395

247

69,642

67,843

2.3

2.7

(1)
Effective as of the first quarter of fiscal 2026, the Canadian telecommunications segment includes the Canadian wireless operations, which were previously included within "Corporate and eliminations" during the start-up phase. Comparative figures were restated to conform to the current presentation, including $2.3 million of operating expenses for the third quarter of fiscal 2025, which were reclassified from "Corporate and eliminations" to the Canadian telecommunications segment.

Nine months ended May 31

2026

2025

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign

exchange

impact

constant currency

Actual

(1)

Actual

constant currency

Revenue

1,127,083

—

1,127,083

1,122,377

0.4

Operating expenses

527,880

674

528,554

538,925

(2.0)

(1.9)

Adjusted EBITDA

599,203

(674)

598,529

583,452

2.7

2.6

Net capital expenditures

245,329

985

246,314

222,254

10.4

10.8

(1)
Effective as of the first quarter of fiscal 2026, the Canadian telecommunications segment includes the Canadian wireless operations, which were previously included within "Corporate and eliminations" during the start-up phase. Comparative figures were restated to conform to the current presentation, including $7.1 million of operating expenses for the first nine months of fiscal 2025, which were reclassified from "Corporate and eliminations" to the Canadian telecommunications segment.

American telecommunications segment

Three months ended May 31

2026

2025

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign

exchange

impact

constant currency

Actual

Actual

constantcurrency

Revenue

319,958

7,897

327,855

355,779

(10.1)

(7.8)

Operating expenses

160,186

4,017

164,203

178,325

(10.2)

(7.9)

Adjusted EBITDA

159,772

3,880

163,652

177,454

(10.0)

(7.8)

Net capital expenditures

51,458

1,172

52,630

57,612

(10.7)

(8.6)

Nine months ended May 31

2026

2025

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign

exchange

impact

constant currency

Actual

Actual

constant currency

Revenue

970,405

15,821

986,226

1,079,423

(10.1)

(8.6)

Operating expenses

488,811

8,033

496,844

545,448

(10.4)

(8.9)

Adjusted EBITDA

481,594

7,788

489,382

533,975

(9.8)

(8.4)

Net capital expenditures

154,265

2,440

156,705

211,741

(27.1)

(26.0)

Adjusted profit attributable to owners of the Corporation

Three months ended May 31

Nine months ended May 31

2026

2025

2026

2025

(In thousands of Canadian dollars)

Profit (loss) for the period attributable to owners of the Corporation

(1,356,281)

69,895

(1,187,599)

245,157

Acquisition, integration, restructuring and other costs

1,046

9,211

8,679

7,288

Impairment of assets

2,223,846

1,574

2,223,846

1,574

Gain on repurchase of debt (1)

(1,444)

—

(2,898)

—

Tax impact for the above items

(380,217)

(2,546)

(381,822)

(4,126)

Non-controlling interest impact for the above items

(387,209)

(948)

(387,724)

(1,340)

Adjusted profit attributable to owners of the Corporation

99,741

77,186

272,482

248,553

(1) Included within financial expense.

Free cash flow and free cash flow, excluding network expansion projects reconciliations

Three months ended May 31

Nine months ended May 31

2026

2025

2026

2025

(In thousands of Canadian dollars)

Cash flows from operating activities

319,932

400,789

666,813

872,866

Changes in other non-cash operating activities

(30,099)

(103,315)

134,721

(4,798)

Income taxes paid (received)

11,270

(12,101)

61,194

1,981

Current income taxes

(8,617)

(11,103)

(15,162)

(35,401)

Interest paid

53,142

69,857

180,170

193,523

Financial expense

(54,382)

(75,861)

(176,271)

(204,353)

Gain on repurchase of debt (1)

(1,444)

—

(2,898)

—

Amortization of deferred transaction costs and discounts on long-term debt (1)

2,693

2,608

7,959

6,300

Net capital expenditures (2)

(120,853)

(125,462)

(399,594)

(434,002)

Proceeds from disposals of property, plant and equipment, including sale and leaseback transactions

1,405

2,188

4,029

22,732

Repayment of lease liabilities

(3,812)

(3,654)

(11,144)

(9,441)

Free cash flow

169,235

143,946

449,817

409,407

Net capital expenditures in connection with network expansion projects

21,602

13,285

54,384

50,657

Free cash flow, excluding network expansion projects

190,837

157,231

504,201

460,064

(1)

Included within financial expense.

(2)

Adjusted EBITDA reconciliation

Three months ended May 31

Nine months ended May 31

2026

2025

2026

2025

(In thousands of Canadian dollars)

Profit (loss) for the period

(1,737,588)

73,300

(1,560,908)

260,097

Income taxes

(349,934)

20,180

(301,838)

69,709

Financial expense

54,382

75,861

176,271

204,353

Impairment of assets

2,223,846

1,574

2,223,846

1,574

Depreciation and amortization

159,769

182,251

497,039

541,070

Acquisition, integration, restructuring and other costs

1,046

9,211

8,679

7,288

Adjusted EBITDA

351,521

362,377

1,043,089

1,084,091

Net capital expenditures and net capital expenditures, excluding network expansion projects reconciliations

Three months ended May 31

2026

2025

Change

Actual

Foreign

exchange

impact

constant currency

Actual

Actual

constant currency

(In thousands of Canadian dollars, except percentages)

Acquisition of property, plant and equipment

121,038

125,933

(3.9)

Subsidies received in advance recognized as a reduction of the cost of property, plant and equipment during the period

(185)

(471)

(60.7)

Net capital expenditures

120,853

1,419

122,272

125,462

(3.7)

(2.5)

Net capital expenditures in connection with network expansion projects

21,602

123

21,725

13,285

62.6

63.5

Net capital expenditures, excluding network expansion projects

99,251

1,296

100,547

112,177

(11.5)

(10.4)

Nine months ended May 31

2026

2025

Change

Actual

Foreign

exchange

impact

constant currency

Actual

Actual

constant currency

(In thousands of Canadian dollars, except percentages)

Acquisition of property, plant and equipment

401,815

438,547

(8.4)

Subsidies received in advance recognized as a reduction of the cost of property, plant and equipment during the period

(2,221)

(4,545)

(51.1)

Net capital expenditures

399,594

3,425

403,019

434,002

(7.9)

(7.1)

Net capital expenditures in connection with network expansion projects

54,384

266

54,650

50,657

7.4

7.9

Net capital expenditures, excluding network expansion projects

345,210

3,159

348,369

383,345

(9.9)

(9.1)

Free cash flow, excluding network expansion projects reconciliations

Three months ended May 31

2026

2025

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign

exchange

impact

constantcurrency

Actual

Actual

constant currency

Free cash flow

169,235

1,175

170,410

143,946

17.6

18.4

Net capital expenditures in connection with network expansion projects

21,602

123

21,725

13,285

62.6

63.5

Free cash flow, excluding network expansion projects

190,837

1,298

192,135

157,231

21.4

22.2

Nine months ended May 31

2026

2025

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign

exchange

impact

constant currency

Actual

Actual

constant currency

Free cash flow

449,817

1,569

451,386

409,407

9.9

10.3

Net capital expenditures in connection with network expansion projects

54,384

266

54,650

50,657

7.4

7.9

Free cash flow, excluding network expansion projects

504,201

1,835

506,036

460,064

9.6

10.0

Additional information

Additional information relating to the Corporation is available on SEDAR+ at and on the Corporation's website at corpo.cogeco.com.

About Cogeco Communications Inc.

Cogeco Communications Inc. is a leading telecommunications provider committed to bringing people together through powerful communications and entertainment experiences. We provide world-class Internet, wireless, video and wireline phone services to 1.6 million residential and business subscribers in Canada and thirteen states in the United States. Our services are marketed under the Cogeco and oxio brands in Canada, and under the Breezeline and welo brands in the U.S. We take pride in our strong presence in the communities we serve and in our commitment to a sustainable future. Cogeco Communications Inc.'s subordinate voting shares are listed on the Toronto Stock Exchange (TSX:CCA).

For information:

InvestorsTroy Crandall

Head, Investor Relations

Cogeco Communications Inc.

Tel.: 514 764-4600

MediaIsabelle Famery

Manager, External Communications

Cogeco Communications Inc.

Tel.: 514 764-4600

Conference Call:

Thursday, July 16, 2026 at 8:00 a.m. (Eastern Daylight Time)

A live audio webcast of the analyst call will be available on both the Investor Relations and the Events and Presentations pages of Cogeco Communications' website. Financial analysts will be able to access the live conference call and ask questions. Media representatives may attend as listeners only. A recording of the conference call will be available on Cogeco Communications' website for a three-month period.

Please use the following dial-in number to access the conference call 5 to 10 minutes before the start of the conference:

Local - Toronto: 1 289-514-5100Toll Free - North America: 1 800-717-1738

To join this conference call, participants are required to provide the operator with the name of the company hosting the call, that is, Cogeco Inc. or Cogeco Communications Inc.

SOURCE Cogeco Communications Inc.