ROGERS COMMUNICATIONS INC (RCI): Financial results for Q3 2026
ROGERS COMMUNICATIONS INC (RCI) furnished an SEC Form 6-K — earnings release. Exhibit 99.3 ROGERS COMMUNICATIONS REPORTS THIRD QUARTER 2026 RESULTS Rogers delivers topline and adjusted EBITDA growth while generating record free cash flow and its lowest capital intensity in over two decades • Total service revenue and adjusted EBITDA growth of 1% • Free cas
How this was made
The 30-second read
Why it matters
The earnings release provides fresh, material data for a large-cap telecom, offering traders a clear catalyst to act on.
Market read
First‑report earnings for a major telecom, with strong cash flow and reaffirmed guidance, present a high‑impact trading opportunity.
What to watch
The completion of the MLSE acquisition may introduce integration risk that could temper enthusiasm.
Rogers reports 1% total service revenue and adjusted EBITDA growth, while free cash flow rose 65% to $1.4 billion and capital intensity fell to 9.6%.
Free cash flow, capital expenditure discipline, Wireless and Cable margin expansion, Media growth, and sequential deleveraging were positive. Underlying telecom demand remained soft, with Wireless service revenue down 1%, lower mobile phone ARPU, reduced postpaid net additions, and adjusted diluted EPS down 6%.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended September 30, 2026other | $5.44B | – | 2% |
| Total service revenue, three months ended September 30, 2026other | $4.78B | – | 1% |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $2.54B | – | 1% |
| Adjusted EBITDA margin, three months ended September 30, 2026other | 46.6 % | – | (0.4 pts) |
| Net income, three months ended September 30, 2026other | $495M | – | (91%) |
| Net income attributable to RCI shareholders, three months ended September 30, 2026other | $482M | – | (92%) |
| Diluted earnings per share attributable to RCI shareholders, three months ended September 30, 2026other | $0.88 | – | (92%) |
| Adjusted net income, three months ended September 30, 2026non-GAAP | $701M | – | (3%) |
| Adjusted net income attributable to RCI shareholders, three months ended September 30, 2026non-GAAP | $704M | – | (5%) |
| Adjusted diluted earnings per share attributable to RCI shareholders, three months ended September 30, 2026non-GAAP | $1.29 | – | (6%) |
| Cash provided by operating activities, three months ended September 30, 2026other | $1.66B | – | 9% |
| Free cash flow, three months ended September 30, 2026non-GAAP | $1.37B | – | 65% |
| Capital expenditures, three months ended September 30, 2026other | $524M | – | (46%) |
| Capital intensity, three months ended September 30, 2026other | 9.6 % | – | (8.4 pts) |
| Finance costs, three months ended September 30, 2026other | $623M | – | 147% |
| Income tax expense, three months ended September 30, 2026other | $200M | – | (6%) |
| Effective income tax rate, three months ended September 30, 2026other | 28.8 % | – | – |
| Total revenue, nine months ended September 30, 2026other | $16.54B | – | 6% |
| Total service revenue, nine months ended September 30, 2026other | $14.75B | – | 6% |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $7.34B | – | 3% |
| Net income, nine months ended September 30, 2026other | $312M | – | (95%) |
| Adjusted diluted earnings per share attributable to RCI shareholders, nine months ended September 30, 2026non-GAAP | $3.46 | – | (2%) |
| Cash provided by operating activities, nine months ended September 30, 2026other | $4.67B | – | 6% |
| Free cash flow, nine months ended September 30, 2026non-GAAP | $3.13B | – | 34% |
| Capital expenditures, nine months ended September 30, 2026other | $2.03B | – | (27%) |
| Capital intensity, nine months ended September 30, 2026other | 12.3 % | – | (5.5 pts) |
| Postpaid mobile phone net additions, three months ended September 30, 2026other | 6K | – | (56) |
| Prepaid mobile phone net additions, three months ended September 30, 2026other | 11K | – | (38) |
| Mobile phone ARPU (monthly), three months ended September 30, 2026other | $55.22 | – | ($1.48) |
| Postpaid mobile phone churn (monthly), three months ended September 30, 2026other | 1.03 % | – | 0.04 pts |
| Retail Internet net additions, three months ended September 30, 2026other | 10K | – | (19) |
| Cable customer relationships net additions, three months ended September 30, 2026other | −2K | – | (22) |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Wireless revenue, three months ended September 30, 2026Equipment revenue increased by 9%, primarily due to higher-value devices, higher device upgrades by existing customers, and disciplined pricing. Service revenue decreased by 1% because of lower mobile phone ARPU and lower fee revenue, partially offset by cumulative new-customer additions. | $2.69B | – | 1% |
| Cable revenue, three months ended September 30, 2026Service revenue was in line with the prior year as retail Internet subscriber growth and base management activities were offset by Home Phone and Video subscriber-base declines. | $1.99B | – | — |
| Media revenue, three months ended September 30, 2026Higher sports revenue, including Toronto Blue Jays attendance, the NHL regular season beginning in September, sporting events at venues, Sportsnet advertising, and Warner Bros. Discovery subscriber revenue were partly offset by softness in non-sports media advertising. | $821M | – | 9% |
| Wireless revenue, nine months ended September 30, 2026Service revenue was in line with the prior year and equipment revenue increased by 6%. | $7.82B | – | 1% |
| Cable revenue, nine months ended September 30, 2026Service revenue increased 1%, supported by retail Internet subscriber growth and base management activities, partly offset by Home Phone and Video subscriber-base declines. | $5.92B | – | 1% |
| Media revenue, nine months ended September 30, 2026The consolidation of MLSE beginning in the second half of 2025 contributed $0.79 billion in revenue in the first and second quarters of 2026. Excluding MLSE consolidation, organic revenue growth was 6%. | $2.96B | – | 44% |
Full-year 2026 outlook
- NoteCompany reaffirms 2026 outlook for total service revenue, adjusted EBITDA, capital expenditures, and free cash flow.
Capital returns
- Returned $270 million in dividends to shareholders this quarter.
- Declared a $0.50 per share dividend on October 22, 2026.
- Dividends paid to RCI shareholders were 810 (In millions of Canadian dollars) for the nine months ended September 30, 2026, compared with 643 (In millions of Canadian dollars) in 2025.
What drove it
- Wireless adjusted EBITDA was 1,383 (In millions of dollars), up 1%, and Wireless adjusted EBITDA margin was 68.0 %, up 1.3 pts, supported primarily by higher equipment margins.
- Cable adjusted EBITDA was 1,164 (In millions of dollars), up 1%, and Cable adjusted EBITDA margin was 58.6 %, up 0.4 pts, reflecting efficiency initiatives and lower operating costs.
- Media adjusted EBITDA was 84 (In millions of dollars), up 12%, as revenue growth outpaced associated costs.
- Free cash flow increased because of lower capital expenditures, higher adjusted EBITDA, and lower cash income taxes, partly offset by distributions to non-controlling interests.
- Capital expenditures declined across Wireless, Cable, and Media, while Wireless and Cable capital expenditures were also reduced by proceeds from asset sales.
- Toronto Blue Jays attendance was over 3.3 million fans and more than 97% of capacity during the season.
Concerns
- Wireless service revenue was 2,033 (In millions of dollars), down 1%, reflecting competitive intensity, lower mobile phone ARPU, and lower fee revenue after the CRTC decision prohibiting certain fees.
- Postpaid mobile phone net additions fell to 6 (In thousands) from 62 (In thousands), which Rogers attributed to promotional discipline and lower overall market activity in Canada.
- Prepaid mobile phone churn rose to 4.77 % from 2.86 %.
- Cable recorded customer relationship net losses of (2) (In thousands), while Video net losses were (35) (In thousands) and Home Phone net losses were (26) (In thousands).
- Adjusted diluted EPS declined to $1.29 from $1.37, primarily reflecting higher finance costs.
- Finance costs increased to 623 (In millions of dollars) from 252 (In millions of dollars), including the absence of the prior-year $151 million gain on redemption of long-term debt.
- The planned sale of a minority interest in Rogers Sports is subject to investor demand and league approvals, with no guarantee of timing, valuation, or completion.
What to watch
- Progress toward selling a minority interest in Rogers Sports by the first half of 2027 and the use of proceeds to repay debt.
- Wireless subscriber activity, mobile phone ARPU, churn, competitive intensity, and the impact of the CRTC prohibition on certain fees.
- Execution of capital expenditure reductions and whether the lower capital intensity can be maintained while Rogers continues 5G, fibre, and DOCSIS 4.0 investments.
- Media monetization following full ownership of MLSE, including sports attendance, league and event revenue, and non-sports advertising conditions.
- The planned redemption of $2.0 billion subordinated notes due 2081 in December 2026.
Balance sheet and cash flow
- Available liquidity was $8.3 billion as at September 30, 2026, comprising $3.2 billion in cash and cash equivalents and $5.1 billion available under bank and other credit facilities.
- Cash and cash equivalents were 3,152 (In millions of Canadian dollars) as at September 30, 2026, compared with 1,344 (In millions of Canadian dollars) as at December 31, 2025.
- Long-term debt was 37,470 (In millions of Canadian dollars) as at September 30, 2026, compared with 35,872 (In millions of Canadian dollars) as at December 31, 2025.
- Debt leverage ratio was 3.7 as at September 30, 2026, compared with 4.0 as at December 31, 2025.
- In September 2026, Rogers issued three tranches of subordinated notes and received net proceeds of $2.0 billion.
- On October 1, 2026, Rogers completed the MLSE minority interest acquisition for $4.35 billion in cash, funded through short-term credit facilities.
- Cash provided by operating activities was $1,658 million and free cash flow was $1,370 million in the quarter.
Analysis
Rogers delivered modest top-line growth in the third quarter, with total revenue of 5,443 (In millions of Canadian dollars), up 2%, and total service revenue of 4,780 (In millions of Canadian dollars), up 1%. Consolidated adjusted EBITDA increased 1% to 2,535 (In millions of Canadian dollars), although the adjusted EBITDA margin declined to 46.6 % from 47.0 %. The headline operating picture was split between stable-to-weak telecom service revenue and materially stronger Media revenue.
Wireless showed the clearest demand pressure. Service revenue fell 1% to 2,033 (In millions of dollars), while monthly mobile phone ARPU declined to $55.22 from $56.70. Rogers cited competitive intensity and lower fee revenue after the CRTC decision prohibiting certain fees. Postpaid mobile phone net additions fell to 6 (In thousands) from 62 (In thousands), while prepaid churn increased to 4.77 % from 2.86 %. Offsetting this pressure, higher-value device mix, upgrades, and disciplined pricing lifted equipment revenue 9%, and higher equipment margins supported a 1% increase in Wireless adjusted EBITDA and 1.3-point margin expansion to 68.0 %.
Cable service revenue was flat at 1,979 (In millions of dollars). Retail Internet net additions of 10 (In thousands), base-management actions, and stable service revenue were offset by continued Video and Home Phone losses and net customer relationship losses of (2) (In thousands). The segment still expanded adjusted EBITDA by 1% to 1,164 (In millions of dollars) as operating costs declined 1% through efficiency and productivity initiatives. Its adjusted EBITDA margin rose 0.4 points to 58.6 %, reinforcing the company’s emphasis on efficiency despite muted subscriber activity.
Media was the growth engine. Quarterly revenue increased 9% to 821 (In millions of dollars) and adjusted EBITDA rose 12% to 84 (In millions of dollars). Higher Toronto Blue Jays attendance, the NHL regular season beginning in September, venue-related sports revenue, Sportsnet advertising, and Warner Bros. Discovery subscriber revenue outweighed ongoing softness in non-sports advertising. The first nine months also reflected MLSE consolidation, which contributed $0.79 billion of revenue in the first and second quarters of 2026.
Cash flow and capital spending were the central financial positives. Capital expenditures fell 46% to 524 (In millions of Canadian dollars), reducing capital intensity to 9.6 % from 18.0 %. Cash provided by operating activities rose 9% to 1,658 (In millions of Canadian dollars), while free cash flow rose 65% to 1,370 (In millions of Canadian dollars). Rogers reported a debt leverage ratio of 3.7, down from 4.0 at December 31, 2025. After the quarter, it completed the $4.35 billion cash acquisition of the remaining 25% interest in MLSE and intends to sell a minority interest in Rogers Sports by the first half of 2027 to repay debt. The company reaffirmed its 2026 outlook for total service revenue, adjusted EBITDA, capital expenditures, and free cash flow, but did not provide numerical guidance ranges in this release.
Management, verbatim
Our third quarter results demonstrate strong financial discipline, with margin expansion in Cable and Wireless, record free cash flow, and further deleveraging despite lower market activity.
Tony Staffieri, President and CEO
The close of the MLSE transaction marks a significant milestone in our plan to unlock shareholder value from our sports and media assets, which continue to show global breadth and scale.
Tony Staffieri, President and CEO
Not in the filing
stated, not guessed- Numerical full-year 2026 guidance ranges for total service revenue, adjusted EBITDA, capital expenditures, and free cash flow were not included in the filing text.
- Gross profit and gross margin were not reported.
- Share repurchases were not reported.
- Prior-quarter comparisons for reported quarterly financial and operating metrics were not reported.
- A quantitative target or expected proceeds amount for the proposed Rogers Sports minority-interest sale was not reported.
- A numerical debt leverage target for the first half of 2027 was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Rogers Communications (NYSE: RCI) released its unaudited Q3 2026 results, highlighting modest top‑line growth, record free cash flow, and a reaffirmed outlook for the year.
Ticker impact
Rogers Communications filed its Q3 2026 earnings release, reporting 1% revenue growth, record $1.4B free cash flow and reaffirmed 2026 outlook.
likely modest upside as investors price in strong cash flow and stable margins
The fresh earnings numbers and reaffirmed outlook provide new material information for a large-cap telecom, prompting traders to consider buying on the positive surprise.
Market effects
Telecom sector may see a lift as Rogers demonstrates resilient margins and cash flow.
Canadian market could benefit from the strong performance of a major TSX-listed telecom.
Limited global impact, but U.S. investors with exposure to RCI may adjust positions.
Counterpoint
If the modest 1% revenue growth is seen as a slowdown, the stock could face pressure despite cash flow.
Key entities
- companyRogers Communications Inc.
Canadian telecom and media conglomerate reporting Q3 2026 results.
