- Comcast says its pricing overhaul is working but it’ll come to a cost to broadband ARPU
- The company hopes to convert free wireless subs to paying customers to mitigate ARPU decline
- Comcast also announced it’s “modernized” its contract with Verizon but didn’t dish any details
Comcast overhauled its pricing strategy last year as an attempt to win back lost broadband customers. The move seems to be paying off but at the cost of average revenue per user (ARPU).
On the company’s Q4 2025 earnings call, CFO Jason Armstrong said while Comcast is seeing increased adoption of five-year price guarantees, free wireless lines and improved take rates of 1-gig and higher speeds, “this pivot comes with an investment.”
Not only will the free wireless lines impact near-term revenue, but Comcast is also taking on higher operating costs tied to “customer experience initiatives,” he explained.
“These dynamics were reflected in the quarter through dilution to broadband ARPU growth and elevated marketing, product and customer service expenses, contributing to the 4.5% decline of Connectivity & Platforms EBITDA” Armstrong said.
Broadband ARPU was up just 1.1% year on year and Comcast anticipates “further ARPU pressure for the next couple of quarters,” as the operator already indicated it doesn’t plan to raise broadband prices in the first part of 2026.
On the subscriber front, Comcast continued to bleed subs with 181,000 net customer losses in the quarter. But it’s no longer just the subscriber count that matters for cable, said Wolfe Research Analyst Peter Supino in a recent note. “The structural erosion of ARPU” will also hinder growth in the next couple of years.
“While the market remains focused on volumes, we believe the more significant risk to Cable through 2027 is the erosion of ARPU growth as incumbents sacrifice price to defend their footprint,” Supino wrote.
Comcast banks on wireless to salvage ARPU
Comcast leadership reiterated wireless is “a key growth engine,” with wireless net additions of 364,000 for the quarter. The company counted over 9 million total lines at the end of 2025 and wireless penetration of about 15% across residential broadband, said Comcast co-CEO Mike Cavanagh.
To improve ARPU, Comcast is banking that most of its free wireless customers will switch to paying lines this year, said the analysts at BNP Paribas.
“With an ongoing deterioration in broadband pricing, we are more skeptical here,” they wrote. The firm has noted Comcast continues to run “aggressive promotions,” such as 1-gig service for $50 per month with the five-year price lock, which also comes with the complimentary mobile line and free Peacock Premium for two years.
Cavanagh on the call also shared it has “modernized” its mobile virtual network operator (MVNO) agreement with Verizon but didn’t specify the changes made to the contract.
“It is a good arrangement for all parties involved. It is modernized, and it is a foundation for mutual profitable growth as we continue to build the business together,” he said.
With T-Mobile as a new MVNO partner for business wireless service, “we continue to have a capital-efficient mobile platform with a cost structure that supports a durable and growing convergence value proposition for our customers,” Cavanagh added.
The earnings metrics
Comcast’s consolidated Q4 revenue of $32.3 billion was up 1.2% year-over-year, while Connectivity & Platforms revenue, which makes up all of its broadband, wireless and streaming businesses – increased 3.2% to $11.6 billion.
The company’s stock is trading at $29.48 per share, up 3.7% on the day.