Rogers Communications Q3 Results: Revenue Up, Free Cash Flow
Rogers Communications Q3 Results show record free cash flow after a sharp capex cut and could ease leverage concerns, shifting cash-return positioning.
KEY TAKEAWAYS
- Sharp 46.0% capex cut drove record quarterly free cash flow.
- Total revenue rose 2.0% and adjusted EBITDA rose 1.0%, reflecting modest top-line gains.
- Capex decline lowered capital intensity to 9.6% and improved leverage to 3.7 times, freeing cash-return optionality.
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Rogers Communications reported modest revenue and adjusted-EBITDA gains for the quarter ended September 30, 2026, in its October 23 release, highlighting cost discipline and sharply lower capital spending that generated record free cash flow.
Quarter Financial Results
Rogers Communications (RCI) posted total revenue of C$5.4 billion, up 2.0% year over year, driven mainly by growth in its Media segment. Total service revenue rose 1.0% to C$4.8 billion, while adjusted EBITDA increased 1.0% to C$2.5 billion. Adjusted earnings per share reached C$0.91, exceeding the cited expectation of C$0.87. CEO Tony Staffieri noted, “We grew consolidated service revenue and adjusted EBITDA each by 1%.”
Capital expenditures fell 46.0% to C$524 million from C$964 million a year earlier, reducing capital intensity to 9.6%, the lowest level in more than two decades. This decline supported record quarterly free cash flow of C$1.4 billion, up 64.9% from C$831 million.
The company reaffirmed its 2026 targets for total service-revenue growth of 3.0% to 5.0%, adjusted-EBITDA growth of 1.0% to 3.0%, and free cash flow of C$4.1 billion to C$4.3 billion. Management emphasized operational efficiency while noting reduced market activity and pressure in the wireless segment.
Operations and Strategic Moves
Wireless service revenue declined 1.0%, reflecting a regulatory ban on certain service charges and softer market conditions. Wireless adjusted-EBITDA margin stood at 68.0%, while cable adjusted-EBITDA margin was 59.0%.
Rogers added about 17,000 net mobile-phone subscribers during the quarter. Debt leverage improved by 0.1 turn sequentially to 3.7 times, aided by subscriber gains and stronger cash flow.
On October 1, 2026, Rogers completed the acquisition of the remaining 25% interest in Maple Leaf Sports & Entertainment (MLSE), becoming its sole owner. The company has initiated a process to sell a minority stake in its consolidated sports, media, and entertainment assets. Rogers also reported Toronto Blue Jays attendance exceeding 97% of available capacity.
