Today, and welcome to Cogeco Inc and Cogeco Communications Inc Q3 2025 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Patrice Ouimet, Chief Financial Officer of Cogeco Inc and Cogeco Communications Inc Please go ahead, Mr. Ouimet. Good morning, everyone. Welcome to our third- quarter results conference call. As usual, before we begin the call, I'd like to remind listeners that today's discussion will include estimates and other forward-looking information. We ask that you review the cautionary language in the press releases and MD&A issued yesterday, as well as in our annual reports regarding the various risks, assumptions, and uncertainties that could cause our actual results to differ. With that, I'll pass the line to Frédéric Perron for opening remarks. Thank you, Patrice, and good morning, everyone. We're pleased to share our Q3 results today. We'll be giving you more color on our solid Canadian internet subscriber growth, our strong free cash flow performance, and our Canadian wireless launch. We'll also be sharing insights into our U.S. challenges, and we'll explain why we're optimistic about improvements in the coming quarters. Let's start with our Canadian internet customer growth, which was strong again this quarter. We're quite upbeat about our Canada customer trends going into Q4 and next year, especially as wireless and new Ontario network expansion projects being lit up become new additional contributors to our customer growth. Turning over to free cash flow, when we began our three-year transformation last year, we mentioned that we expected significant OpEx and CapEx synergies from initiatives such as combining our Canadian and U.S. Operations, reducing truck rolls, consolidating vendors and platforms, and digitizing our sales and service interactions. Less than one year into our transformation, we're pleased to report that our OpEx and CapEx synergies are tracking well above plan, with significant runway still to go. For this fiscal year in particular, we now expect this to translate into a net CapEx reduction versus our prior estimates. We're maintaining our investments in key revenue-generating projects, such as network upgrades and extensions, in line with our original plans and with historical trends. Only a small part of this year's CapEx savings are deferrals to next year. What you're seeing in terms of CapEx understanding comes mainly from real operational efficiencies and synergies. These synergies will increasingly add to our already strong balance sheet and are putting us well on track to generate approximately 600 million in free cash flow by fiscal 2027. We're poised to continue to raise our dividend and lower our debt, which stood at 3.1 x net debt to adjusted EBITDA by the end of the third quarter. Turning over to Canadian wireless, we're ready to go. We already have an initial cohort of users on the service and will broaden sales in 12 markets over the coming weeks, ahead of a full commercial launch later this fall. We won't be sharing offer details today as we want to announce it to our customers first. However, we can share the following: the product will be exclusive to customers also buying wireline with us, will target low to mid-data users, and will provide a time-limited launch bonus for the first wave of customers joining us. In the U.S., our Q3 subscriber metrics were impacted by an uptick in competition in three of our states, as mentioned in our last earnings call, and by internal execution gaps, which have now already been addressed. The ongoing transformation of our sales and marketing capabilities, combined with the fact that some of our competitive headwinds were temporary in nature, make us confident that Q3 was a low point and that we should see gradual improvements in U.S. customer metrics over the coming quarters. In this coming Q4, more specifically, we expect U.S. customer metrics for our residential internet segment, by far our largest, to be better versus Q3. We will be doing a large one-time disconnect in the bulk segment during the fourth quarter, but our predictable bulk sales pipeline shows that the segment will return to growth in the following quarters. We're lowering our revenue outlook for the year as a result of the U.S. pressures, but this decline is offset by operating efficiencies as a result of our transformation program. Therefore, we're maintaining our original adjusted EBITDA guidance for the year. We're also raising our free cash flow guidance thanks to the transformation-related CapEx synergies I mentioned earlier. Patrice will share more information on our outlook later in this call. At Cogeco Media, the radio advertising market continued to face challenges, but revenue increased during the quarter, helped in part by ongoing growth in our digital advertising solutions and strong listener engagement. Our leading radio stations have continued to achieve strong market share in their target markets from recent audience surveys. Before I pass it over to Patrice for more details about our results, please allow me to comment on the current Canadian regulatory environment. The CRTC is stubbornly maintaining a broken TPIA, or resale regime, that has completely failed to meet its original objective to help new entrants get into the market. Today, the regime is mainly used by the big three Canadian telecom companies to get even bigger. On June 20th, the CRTC rejected our appeal to fix the regime by disqualifying the big three Canadian telecom companies from leveraging it. By doing so, the CRTC is misusing its power and is favoring telecom giants at the expense of regional players such as Cogeco. It's like forcing regional airlines to let national airlines use their planes. It just doesn't make any sense. As you can see from the announcements that we're making today, including the launch of a completely new wireless service for Canadians, the first major wireless launch in this country in over 10 years, Cogeco intends to remain a growing competitive force in this country. We won't let the CRTC stop us from providing more choice to Canadians and are prepared to fight for the competition and investments that Canada needs. We urge the federal cabinet to be as passionate about competitive investments and economic growth as we are. Canadian telecom has been held back by this bad policy, and the government needs to act now. Patrice, over to you. Thank you, Fred. In Canada, Cogeco Connexion's revenue declined by 1.8% in the third quarter, driven by a lower revenue per customer due to fewer video and wireline phone subscribers and a competitive pricing environment, partly offset by a growing internet subscriber base, which added 9,400 new internet subscribers during the quarter. Adjusted EBITDA declined by 1.3% in constant currency due to the lower revenue being partially offset by lower operating expenses, driven by cost reduction initiatives and operating efficiencies. We added 8,200 homes passed during the quarter under our network expansion program, including those through the Ontario subsidized program. In the U.S., Breezeline's revenue declined by 6.6% in constant currency due to the cumulative decline in the subscriber base over the past year, especially for entry-level services and non-internet services. We have seen a decline of 10,400 internet subscribers during the quarter. Adjusted EBITDA declined by 3.7% in constant currency due to lower revenue, offset in part by cost reduction initiatives and operating efficiencies. Turning to our consolidated numbers for Cogeco Communications, at the consolidated level, revenue declined by 4.1% and adjusted EBITDA declined by 2.4%, both in constant currency. It is mainly due to the revenue pressure in the U.S. and strong execution on operating efficiencies. Diluted earnings per share declined by 1.8% in reported currency due to lower EBITDA and other elements partially offset by lower restructuring costs. Capital intensity was 17.2%, down from 22.4% last year due to lower spending in both Canada and the U.S., resulting from reorganizational efficiencies related to the combination of our Canadian and U.S. operations, also from improved inventory management and the timing of network expansion projects. Excluding network expansion projects, capital intensity was 15.4% compared to 19.2% last year. Free cash flow in constant currency increased by 61.5%, largely due to lower CapEx and lower restructuring costs in the quarter. Our net debt to adjusted EBITDA ratio was 3.1 x at the end of the quarter, an improvement from 3.4 x in Q2. This reduction in the leverage ratio was the result of lower net debt and the positive impact of exchange rates on our U.S. denominated debt. We continue to target a net debt to EBITDA ratio in the low three x range. Finally, we have declared a dividend of CAD 0.922 per share. At Cogeco Inc, revenue in constant currency decreased by 3.9% and adjusted EBITDA declined by 2%, with growth in radio partially offsetting declines at Cogeco Communications Inc The media operations revenue increased by 4.4% due to growth in our digital advertising revenue, and a dividend of CAD 0.922 per share was also declared in the quarter. Now, turning to financial guidelines for Cogeco Communications fiscal 2025, we are revising our annual guidelines, which we first provided to investors in October to better reflect competitive pressures impacting our top line on one hand and the transformation OpEx and CapEx synergies, which are ahead of plan, on the other hand. On a constant currency basis, we expect a low single-digit decline in fiscal 2025 revenue, resulting mainly from an uptick in competition in the U.S. Fiscal 2025 adjusted EBITDA is anticipated to remain stable year-over-year as per our original guidance, since transformation-related over-delivery and cost reductions are offsetting most of our revenue headwinds. Net capital expenditures are now anticipated to be between CAD 600 million - CAD 650 million, compared to CAD 650 million - CAD 725 million in our prior guidance. Net capital expenditures related to network expansions are now expected to be between CAD 110 million - CAD 150 million, compared to CAD 140 million - CAD 190 million in our prior guidance. We are increasing our free cash flow guidance with and without network expansion CapEx to stable levels versus the prior year, which is an improvement from our prior guidance, which anticipated a decline between 0% - 10%. As it relates to the upcoming Q4, we expect consolidated revenue to be lower than the third quarter results that we are reporting today due to pressure in the U.S. We expect adjusted EBITDA to be similar to slightly better to what we generated in Q3, with our Canadian operations being higher and our U.S. operations being lower than in Q3. Also, when we compare Q4 results to last year, one should note that we had an uptick in our U.S. EBITDA last year due to the realization of cost reduction measures, as well as year-end adjustments, which will make it for a difficult comparison. Below the EBITDA line, at the consolidated level, we expect acquisition, integration, and restructuring costs to be similar to Q4 of last year at around CAD 10 million, which incorporates operational cost efficiency measures aligned to our three-year transformation program. Our Q4 financial expense is expected to be about CAD 15 million less than in Q3. At Cogeco Inc, we have made the same revisions to our fiscal 2025 financial guidelines as those for Cogeco Communications. Fred and I will be happy to take your questions. Thank you. Ladies and gentlemen, we will now begin the question and answer session. To ask a question, you may press star, followed by the number one on your telephone keypad. If you're using a speakerphone, please pick up your headset before pressing any keys. To withdraw your question, please press star, followed by the number two. With that, our first question comes from the line of [Drew McBrano] at RBC. Please go ahead. Yeah, thanks very much, and good morning. Patrice, just, sorry, a quick clarification on Q4. I missed your revenue commentary. If you can just repeat that, that'd be great. Yes, absolutely. Let me just get my documents again. Basically, when we look at Q4, we expect that the revenue will be lower than the Q3 results we just issued. Actually, the exchange rate is not changing much as well between the two quarters. You did get the information on the EBITDA, I presume? Yes, I did. No, that's great. I just missed the revenue piece. Thanks for that. On the wireless side, just a couple from me here. In the U.S., I think you launched wireless back in 2024. I know you're not yet kind of disclosing much granularity around it, but in terms of the intended impacts that wireless is having on the core cable business, obviously, there's some bigger operational and competitive challenges in the U.S. What are you seeing specifically in terms of how wireless is benefiting the cable business underneath the hood? Hi, Drew. It's Fred. We're not at a stage where it's yet material on the P&L, neither on cost nor on the upside. That was planned. When you look at the other cable [Co s] in the U.S. and how long it took them for wireless to benefit their P&L, it takes a few years. However, they're now at a stage where it's a material needle mover to their overall P&L, and we expect it will be the same for us over time. OK. No, that's great. Just on the transformation, you know, clearly doing a great job of mitigating the revenue pressure with some pretty good margins both sides of the board this quarter. I'm going to assume you're going to reserve any fiscal 2026 commentary to next quarter when you give guidance, but can you kind of directionally help us on, you know, how margins look as we, you know, head into fiscal 2026 - 2027? Maybe asked a different way, are there further cost efficiencies under the transformation that you expect to realize? I understand the margin is not disconnected to the revenue pressure, but just would love to hear your thoughts on margin trending here? Hi, it's Fred again. I'll start answering a bit more conceptually, and I'll pass it over to Patrice on margins more specifically. When you look at our three-year transformation program, it was always planned that the beginning of the three years would be more front-loaded on cost reduction, especially OpEx and CapEx. What we see is that not only is that happening, but it's happening ahead of expectations for us versus our original plan, and with more runway to go, especially as more initiatives come in and also as AI kicks in over time. What hasn't fully kicked in yet in our transformation is the transformation of our sales and marketing capabilities, especially in the U.S. The plan was always that that would kick in in year two of the transformation, which is about to begin. We can elaborate on that further, but bottom line is we do see runway in more aggressive go-to-market in the U.S., and we expect this will come over the coming quarters. I don't know if you want to add to margins, Patrice. Yeah, I think it's a bit early to talk about the next two years, but definitely there's more in store in terms of cost optimization and also revenue generation using the same cloud space. We do see opportunities to improve this again. We've had a significant increase, especially in the U.S. versus last year. It doesn't mean we're going to have the same level of increase every year because that would be, that's a large one. We do expect further increases. Another question you could be asking is also for Q4 that's coming. We're not seeing the Q3 we just did in Canada and the U.S. as a high point. We do expect Q4 to continue to deliver good margins. OK. One last one from me. Thank you for that. Frédéric, maybe I missed this in your opening remarks. The transitional language or commentary in your prepared remarks in terms of the Q3 impact in the U.S. with competitive intensity, and obviously the downtick in net losses, just can you repeat what's transitional about that and what changes here in Q4 versus Q3? Yeah, I can start. As we mentioned on the last earnings call, Drew, we were seeing an uptick in competition in three of our states in which we operate in particular. Some of it is likely temporary in nature. Sometimes it was short-term promotional blitzes or a competitor did network upgrades and wanted to do some initial promotional activity around that. Some of the competitive uptick is more temporary in nature. There were also some fixed basic things internally during the quarter, which we've already addressed. More broadly, we see a lot of upside in our sales and marketing execution in the U.S. There are some sales channels which are still scaling up, which were under-indexed in the past. There's lots of room to improve our pricing and our pricing strategy. Retention activities are being optimized. A lot of the things that we've been doing in Canada that result in the good PSU trends you've seen in Canada are being replicated in the U.S. as well now and more. You'll see more things coming from us over the coming months on the U.S. go-to-market. Net-net, where that leads us, is in Q4. We already expect a visible improvement in our residential internet trends versus Q3. There is a one-time bulk disconnect that will cloud things a little bit, but we already see the sales pipelines are predictable, so we see bulk returning to growth in Q1 and beyond, and we see residential continuing to improve as well. OK, I understood. I'll pass the line [crosstalk]. Thank you very much [crosstalk]. Thank you. Your next question comes from the line of Arvind Gulafatighe with CIBC. Please go ahead. Good morning. Thanks for taking my questions. Just sticking with the U.S. for a second, last quarter you were able to actually sort of get back to, call it stable EBITDA in the U.S., even with a 4.5% constant currency decline in top line. Obviously, this time the decline was a little bit steeper. How should we think of that equation? I mean, even with some revenue pressure, the ability to stabilize EBITDA in the U.S., as we look forward, in terms of basically trying to understand that dynamic of operating leverage, recognizing that there may be some cost items moving around because of the wireless launch in the U.S. as well. Just a little bit more color on that, please. Sure. Hi, Arvind. Obviously, we talked about stabilizing the PSUs and all the work we're doing basically on the revenue front. That's important. It obviously takes a bit of time to make it work, but we're already seeing some benefits in Q4 that we're already fairly advanced in. If we take a longer-term view, we do want to stabilize the U.S. I did mention that in Q4 of this year, there will be some pressure, especially when we look at the uptick in EBITDA of last year. It will be a more difficult comp for the U.S. in Q4. Past that, between what we're doing on revenue and also a lot more potential on the cost side as well, definitely the idea is to stabilize. It can be a bit erratic by quarter for different reasons, and we'll talk more about the upcoming year when we meet in October. The goal is to have definitely a better year-over-year comparison on EBITDA versus what we are providing today in the U.S. Yeah, and if I can add from an operational transformation perspective, we still see lots of runway, both in cost reduction as well, which is performing ahead of plan so far, and we expect this will continue, as well as go-to-market, as I was mentioning to Drew earlier. Our go-to-market was quite under-optimized in the U.S., and we're starting to transform that. As Patrice said, Q4 will be tough given year-on-year comps. Beyond that, you'll see more in our guidance, but we still see lots of runway, both in cost and revenue. OK. Thanks for that. On Canada, obviously, we continue to see good internet loading numbers, especially in the backdrop of what we see in the industry. Has that mix of the net adds changed much? Even if you look at it year-over-year, I know that it's a mix of perhaps some improvement in legacy, OXIO, your fiber expansion into the other footprint areas. Has that kind of like the trio of the drivers, the mix, has that altered much through the course of the year or maybe year-over-year? Yeah, it varies from quarter to quarter, Arvind. Over time, we're still in a situation where both the Cogeco and the OXIO brands are contributors to our PSU growth. The only visible mix change that's material is a shift from OXIO out of footprint to OXIO on our own network. Most of our OXIO sales are on our own network now, which comes at a good margin. Moving forward, as I mentioned in the intro remarks, we're quite upbeat because in addition to the good trends we're seeing right now, there are two more upsides coming in, some new network expansion projects being lit up, as well as wireless, which will kick in over time. That will take longer. Net-net, we're quite upbeat about Q4 next year for Canada. OK. Thanks for that. Last question on the guidance. When I kind of sort of try to reconcile the free cash flow guidance change and the CapEx guidance change, the CapEx decline is a lot more than the free cash flow improvement if I just work on midpoint. Is there anything more there that we should be aware of? Maybe Patrice? Yeah, so when you look at CapEx for Q3, it was quite low. Obviously, we don't manage CapEx on a quarterly basis. We manage it on an annual basis. We do expect Q4 to be much heavier in CapEx than what we saw in Q3 and also versus last year. That being said, there is a benefit for the full year, and that is mainly related to the benefits of the reorganization we did. We're a lot more efficient with CapEx. That's why it's a net reduction for the full year, but not as much as what we saw in Q3. Yeah, that's why we did increase free cash flow as well. One question you could have on this is whether some CapEx is being deferred to next year, and there's very little of that in the network expansions we're doing. There are certain parts of it that we don't fully control in terms of getting the permits, but it's quite small. Hopefully, I answered your question. Yes, yes. Thank you. I'll pass the line. All right. Thank you. Your next question comes from the line of Stephanie Price with CIBC. Please go ahead. Hi, good morning. Congratulations on the announcement of the Canadian wireless launch. Just curious if you could give us any more details around how aggressive you expect to be in terms of pricing as you enter the market, and how you kind of think about the environment here for Canadian wireless. Sure. We take note, Stephanie, of a recent stabilization in wireless pricing in the industry. Our Canadian wireless service will be exclusively offered to our wireline customers. It is not a strategy to go national or anything like that. You know, we're a rational player. Of course, when you launch a new service, there can always be a time-limited launch offer, but that's just what it is, a time-limited launch offer. Great. Thank you. In terms of capital allocation, Patrice, you mentioned you're continuing to target a low three times net debt number. It looks like you're about there now. Just curious how you think about leveraging capital allocation going forward? Sure. We were helped a little bit by FX this quarter because the debt moves faster because it's marked to market than the EBITDA, which takes a year to run through. If you were to use the same exchange rate for the full year, you'd be at 3.2% instead of 3.1% in the quarter. We do expect to be around there next quarter at 3.2% in Q4. It's going to go up a little bit, but that should be FX, assuming we know what the FX will be in a couple of weeks. Fast forward into next year, we should normally be at around three times at the end of next year. In terms of capital allocation, we normally increase our dividends in Q4. That's something we'll come back to the market in October. As you know, our payout ratio is quite low at around 30%. We have capacity to continue to increase the dividend. We've done share buybacks in the past. We're not in the market right now. We don't have a live program, but at one point, that's something I'm sure we'll want to revisit as we attain our target leverage. We will also see at that point if that target leverage is still the right one at three times, but it has been like that for many years in the past. Great. Thank you. question comes from the line of Matthew Gupits with Bank of America. Please go ahead. Hi, good morning. Thanks for taking the question. My first one is just on the transformation savings. Obviously, you're running ahead of your plan, but have you identified kind of greater opportunities than you initially expected? Is this entirely the case that it's just the same amount of savings are just coming earlier and the total bucket of savings, both from costs and your planned kind of, you know, sales initiatives, is the same as it was initially? Hi, Matthew. It's Frédéric. We've identified greater savings on both OpEx and CapEx, the CapEx being particularly material this quarter, as you can see, but also on OpEx. Is this something maybe when you give your guidance next quarter that you're going to size for the market, what you expect? I know initially, as you're launching the initiative, maybe there was a little reluctance to kind of, you know, stick a marker in the sand. Are we getting to the point maybe in the next quarter where there'll be some sort of milestones that we can, for lack of a better word, judge your progress again? Yeah, let us think through this. Obviously, internally, we have very defined targets. As you know, a portion of that offsets market pressure, and we wouldn't want investors to think that there is no market pressure by just giving a transformation number. Let us see how we can communicate progress more than what we're just saying today. We'll take it under advisement and see if we can say a little more than today. Yeah, you'll get a good sense from our next year guidance already. As you can see on this call, we're also reaffirming the CAD 600 million in cash flow by fiscal 2027. That's not the perfect answer, but hopefully, it gives you a bit of a direction. No, it definitely does help. Maybe I know on wireless, it's early to really make too many detailed comments, but just in a broad sense, should we expect the approach that you have in the U.S. to just be replicated in Canada? The only reason I ask is, obviously, wireless is in support of your broadband business by and large. The trajectory of the broadband business in Canada is very different than the trajectory in the U.S., so I'm wondering if this leads you to have a different strategy between the two markets or if it's the same strategy across the board? The commercial objective is the same, but the markets and the dynamics of each market are different, and we adapt to those. OK. We should expect some variation in the approach. Maybe lastly, and this may be hard to answer, but the broadband penetration in the U.S. has kind of been on a three-year decline. Do you have a sense as to where maybe a sustainable level of broadband penetration is, given the market dynamics and the states that you're operating in? Do you have a sense that we're getting close at around 35% that this is getting to a sustainable level? Any kind of take on that would be helpful. OK. You're talking about our own broadband penetration and share of the markets where we operate, if I hear you correctly. Exactly. Yeah, exactly. Yeah, our U.S. business is different from the Canadian one, whereas in Canada, our market share tends to be more even across the different regions, whereas in the U.S., there are bigger variations. That also brings opportunities. For example, you know Ohio, where our penetration is quite low. I would say we got some opportunity to grow in some states like Ohio. However, if you look, if you net it out to PSUs, we're not yet at a stage where we say we'll return to positive PSUs in the U.S. Certainly, over the next quarter, you'll see us do better, obviously, than we did in Q3. All right. Great, thanks so much, guys. Next question. Your next question comes from the line of Vince Valentini with TD. Please go ahead. Hey, thanks very much. Try to clarify a couple of things that have been talked about. One, the CAD 600 million for 2027. Is that, should we think of that conceptually as EBITDA just stays flat here at CAD 1,440 million, and virtually all of the delta is CapEx? Or are there other meaningful moving pieces in the interest line or restructuring line or anything else, Patrice? Yeah, hi, Vince. Let's assume that the EBITDA doesn't move too much at a high level. I'm not guiding on EBITDA for the future in that comment, but just let's make that assumption, which is in your question. For sure, the CapEx is going to come down, as we've talked about. We do expect interest costs to come down as we're repaying debt. We are seeing decreases. As a note, just to make sure you saw it, in Q3, we had about CAD 11 million of marked-to-market loss on the swap that we had related to the venture we repaid. That's a one-timer. You're not going to see this in the future quarters. In general, as we repay debt, we're seeing decreases in interest costs. Besides that, in terms of the cash tax rate, we don't necessarily see a big difference going forward versus where we are this year at around 12%. These rules change all the time, but I would say these would be between interests. The other one you mentioned is restructuring. Yes, we should see a decline there. As we're reducing costs at one point, we should expect to see less of those. There are certain IT costs that are cloud implementation costs that are reported within that line item right now that eventually will go away as well. We should see some improvement there. That's helpful. Just the cash tax, nothing meaningful changes in terms of how much U.S. cash tax you have to pay? Like, some of the initial shelters you had are not winding down by 2027? No, that's right. We still have some tax losses that came from previous acquisitions we made. That will run for a few years still. For now, it might ramp up over the next two-three years by 1% - 2% from what we see right now. Sorry, I said "12" "12" is this year, but next year, there were some one-timers that helped this year, actually. Next year, we'll probably be at around "14," something like that. When you fast forward to fiscal 2027, that could be a good number as well. We'll have to see; these things change all the time, but that could be a ballpark figure to assume there. Great. A second one. You mentioned in the release on May 8th, the federal court decision has caused some retroactive treatment of video distant signal costs. Did you take a charge in Q3, or was this reflected in your EBITDA or restructuring costs or something? It was very immaterial because, you know, we have to take accruals for these things. Always difficult to judge given that it happened several years after the fact. We haven't done anything material in the numbers to reflect this. We have it. OK. You OK. You called it out in the release, but whatever cost it was, it is in the numbers already. We don't have to worry about it for Q4. Oh, yes, that's right. OK. The bulk contract in the U.S., you say you have really good visibility on it. Let me ask then, how big is it? Can you give us some sense of how many bulk customers you're going to lose in Q4 and then perhaps get back in early fiscal 2026? Hi, Vince. It's Frédéric. Yeah, you can ballpark, you can think of about CAD 2,000 in this Q4. You can expect Q1 to be slightly positive and then more positive after that. That's very helpful, Frédéric. Remind me, is bulk only in your Florida markets, or do you have bulk contracts elsewhere too? It's mainly in Florida. Which you may gather will segue to perhaps my last question. Anything further on, are you still thinking about pruning assets or swapping assets or trying to optimize the portfolio of assets in the U.S.? Is there any update on expectations or timing? Yeah, so a bit of an update there. As you know, we've been saying for close to a year now that we were open to looking at opportunities in the U.S. to potentially prune some assets there if it made sense strategically, operationally, and from a financial standpoint. We did a big review of the operations. Obviously, these are carve-outs when we do these things, and it's more complicated than just regular disposals. We did look at a few more practical opportunities, and where we are now is that we did not actually meet these criteria internally. At this point, I would say we are not planning in the short to medium term to proceed with disposal, having done the work over the past year. We will remain open to opportunities in the future, but given that these take time and can be a distraction, where we are right now is probably more status quo in the short to medium term. Thank you. Thank you. If you would like to ask a question, please press star 1 on your telephone keypad. Your next question comes from the line of Maher Yaghi with Scotiabank. Please go ahead. Great. Thank you very much. Merci d'avoir pris mes questions [Foreign language]. I just wanted to start with your comment about or your guidance on EBITDA for the year. You're calling for EBITDA to be stable on a constant currency basis. When I look at your nine-month performance so far, it's down 0.5%, and you're calling for the U.S. business to perform slightly, you know, have a tougher comp in Q4 than in Q3. In Q3, you had it down by 3.7% on a constant currency basis. I'm trying to just understand the puts and takes because if Q4's EBITDA is going to be down more than, you know, 1.5%- 2% year on year, how are we going to finish the year stable on EBITDA? Yeah, it's a good question. You know, when we put out stable originally in the year, and I was asked this on a previous call as well by one of the analysts, what does it mean in terms of more exact numbers? Obviously, we see it as a plus or minus a certain number to call it stable. We're still within that range. You're right, looking at the numbers, there's only one quarter left. We do expect that number to be negative, but still within the range of stable. That's why we did not change the guidance. We did change it on revenue, as you know, because that would be out of the range of the stable that we had before that. OK. Just to be clear, like more specific on Q4, you know, the 2.4% decline in constant currency in Q3, is that where we're going to be around in Q4, or the% decline can be a little bit higher than that? I'd rather say maybe at the higher level with what we said. I did compare it to Q3. That's probably the better benchmark to use. In terms of consolidated EBITDA, basically, what we said for Q4 is that we would be similar to slightly better than the Q3 results, again, at the consolidated level. OK. That's on a year-on-year growth rate or the dollar terms? I mean dollars between Q3 this year and Q4 this year. Yeah. OK. Merci. Thank you. I'll just follow up with a clarification on the guidance. You cut your CapEx guidance by CAD 62 million at the midpoint, and you increased your free cash flow guidance about CAD 24 million at the midpoint. We're missing around CAD 39 million. Can you just explain where those went? Yeah, it is not necessarily perfect between all these lines because we're using ranges, right? That being said, there's a couple of things. I did refer to the loss on the swap we took in Q3. That basically appears in free cash flow, but is not part of CapEx. That was a new element that happened during the quarter. We are expecting, as I said in the opening remarks, some additional restructuring costs in Q4, which again reduces free cash flow, but obviously doesn't touch CapEx. That is highly tied basically to the continuing work we're doing on transformation and cost reduction. There might be other elements as well, but I would say these would probably be the main ones. OK. Fair enough. Thank you. My last question is more operational in nature. For the U.S. market, you know, we look at Comcast and Charter, and we've seen how they've tried to stabilize their operation over time. Initially, they tried to work internally on improving churn, cost reduction, plan price adjustments, and things like that. We've seen them try to do that and come up with the conclusion that on its own, it's hard to turn around the losses materially. Both of them separately came to the conclusion that they have to take more drastic approaches, more aggressive approaches to stem the decline caused by fixed wireless. Charter started, then Comcast followed this year with planned price adjustments, bringing down prices on cable customers to lock them into longer-term contracts, offering them free wireless services. Are you still thinking that you can turn around the business doing what you, you know, the internal part without, you know, material adjustment to plan prices and offering free wireless services? Because, you know, when we look at the bigger players, they ended up having to be more drastic in approach, you know, take a more aggressive approach to bring down churn. I'm asking because, you know, as we sit here, it doesn't look like 2026 guidance is implying that kind of an approach. What will make you take that approach? That's what I'm trying to understand, if you do. Hi, Mahir. It's Fred. Is there room to be more aggressive in our U.S. go-to-market activities? The answer is absolutely. That's a big part of our three-year transformation program. I wouldn't say drastic in the sense that the activities that we have underway are not particularly ARPU damaging in our case. I'll give you some examples, and it's not only about pricing. We have some sales channels that were quite underutilized and underscaled in the U.S. versus competition and versus our own operation in Canada. We're scaling up some of those operations now, and that doesn't cost you ARPU. We saw that some of our retention efforts were suboptimal and not always competitive. We're getting back on the front foot there. On pricing specifically, which was your question, the opportunity sometimes is around having simplified pricing and more predictable pricing for our customers. It doesn't mean that it always comes at a huge ARPU trade-off. Of course, we're deploying more advanced analytics across all of our activities. The last thing I would add is, as you know, we've had good success with the OXIO digital-only model in Canada, and some form of that will get deployed in the U.S. as well. A lot of those activities are already underway. Some of them are starting to launch. You'll see more announcements from us over the coming months in the U.S. That's why we see room to improve our performance without doing anything particularly drastic to ARPU. That's why we see our customer losses in the U.S. reduce quite materially over the coming quarters. OK. Can you give us your view on your perception of the utility of offering free wireless service to lock customers or offering price lock guarantees over four or five years, like some of your larger cable peers are doing in the U.S.? Are those, in your view, positive movements that can reduce churn and still grow EBITDA, or they're a bit too aggressive? On wireless, we tend to match the market. The market is indeed relatively aggressive. As I answered, I think it was to Drew earlier, it will take some time before wireless becomes material in a positive way to our bottom line. As it relates to price lock and things like that, look, we're not going to get too much into competitive strategies. Again, we see lots of upside in our U.S. execution without compromising ARPU in a material way. OK, great. Thank you very much. Thank you. We have no further questions at this time. I would like to turn it back to Mr. Patrice Ouimet for closing remarks. OK. Thanks for joining us today, and feel free to reach out if you have additional questions. Have a good day. Thank you, presenters. Ladies and gentlemen, this concludes today's conference call. Thank you all for participating. You may now disconnect.