Rogers' Q3 results show stable core operations with modest revenue and EBITDA growth, but wireless ARPU continues to decline under competitive and regulatory pressure. The $4.35B MLSE minority acquisition closed post-quarter, adding leverage near-term, but management plans to sell a minority stake in sports assets by H1 2027 to deleverage. Free cash flow improvement is notable and supports the dividend. Monitor the sports asset sale process and any further regulatory impacts on wireless pricing.
Price Chart
Executive Summary
Rogers Communications reported Q3 2026 results with total revenue up 2% to $5.44B and adjusted EBITDA up 1% to $2.54B, driven by Media growth. Wireless service revenue declined 1% due to competitive intensity and regulatory fee changes, while Cable service revenue was flat. Net income fell 91% to $495M due to a $5B non-cash gain in the prior year from the MLSE Transaction. The company completed the $4.35B acquisition of the remaining 25% stake in MLSE on October 1, 2026, funded through short-term credit facilities, and is pursuing a minority sale of its sports assets by H1 2027. Free cash flow improved 65% to $1.37B on lower capex.
Key Facts
- Q3 2026 total revenue $5,443M, up 2% YoY; total service revenue $4,780M, up 1% YoY
- Consolidated adjusted EBITDA $2,535M, up 1% YoY; adjusted EBITDA margin 46.6%, down 40 bps
- Wireless service revenue $2,033M, down 1% YoY; mobile phone ARPU $55.22, down $1.48 YoY
- Cable service revenue $1,979M, flat YoY; Cable adjusted EBITDA $1,164M, up 1% YoY
- Media revenue $821M, up 9% YoY; Media adjusted EBITDA $84M, up 12% YoY
- Net income $495M, down 91% YoY (prior year included $5B non-cash gain on MLSE revaluation)
- Adjusted net income $701M, down 3% YoY; adjusted EPS $1.30, down 5% YoY
- Free cash flow $1,370M, up 65% YoY; capital expenditures $524M, down 46% YoY
- Completed acquisition of remaining 25% MLSE stake on Oct 1, 2026 for $4.35B cash
- Debt leverage ratio 3.7x as of Sep 30, 2026, down from 4.0x at Dec 31, 2025
- Issued $2.0B subordinated notes in Sep 2026; intends to redeem $2.0B notes due 2081 in Dec 2026
- Quarterly dividend maintained at $0.50 per share
Financial Impact
Revenue growth of 2% ($95M) and adjusted EBITDA growth of 1% ($20M) in Q3; free cash flow up 65% ($541M) on lower capex; net income decline of $5,273M driven by prior-year non-cash gain
Risk Factors
- Wireless ARPU declining due to competitive intensity and CRTC fee prohibition; postpaid churn up 4 bps YoY to 1.03%
- Debt leverage at 3.7x remains elevated; $4.35B drawn on short-term facilities for MLSE acquisition adds near-term refinancing risk
- CRTC regulatory actions on fees, self-service mechanisms, and Internet speed disclosures could pressure revenue and increase compliance costs
- Sale of minority sports stake may not materialize at expected valuation or within anticipated timeline
- S&P outlook negative on credit rating; weighted average borrowing cost increased to 5.02% from 4.78%
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 3 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0000733099-26-000019 |
| Document: 0000733099-26-000019-index.html | 0000733099-26-000019 |
| Document: 0000733099-26-000019.txt | 0000733099-26-000019 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 3d ago | 6-K | $32.39 $32.34 | ▼ −0.15% | ▼ −0.86% | $32.39 (−0.00%) |
Oct 23, 2026 3d ago | 6-K | $32.39 $32.34 | ▼ −0.15% | ▼ −0.86% | $32.39 (−0.00%) |
Oct 23, 2026 3d ago | Press Release | $32.39 $32.34 | ▼ −0.15% | ▼ −0.86% | $32.39 (−0.00%) |
Oct 1, 2026 25d ago | 6-K | $30.72 $30.83 | ▲ +0.36% | ▼ −0.38% | $32.39 (+5.44%) |
Oct 1, 2026 25d ago | Press Release | $30.72 $30.83 | ▲ +0.36% | ▼ −0.38% | $32.39 (+5.44%) |
Sep 28, 2026 28d ago | Press Release | $31.43 | awaiting T+1 | — | $32.39 (+3.05%) |
Sep 23, 2026 4w ago | 6-K | $32.26 $31.91 | ▼ −1.08% | ▼ −1.63% | $32.39 (+0.40%) |
Sep 10, 2026 6w ago | 6-K | $36.09 $36.21 | ▲ +0.33% | ▼ −0.52% | $32.39 (−10.25%) |
Sep 9, 2026 6w ago | Press Release | $36.09 $36.21 | ▲ +0.33% | ▼ −0.52% | $32.39 (−10.25%) |
Jul 22, 2026 13w ago | 6-K | $32.95 $32.67 | ▼ −0.85% | ▲ +0.39% | $32.39 (−1.70%) |
US Market Status
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