Written By
Nick Raffoul
Nick Raffoul is the Founder and Lead Analyst at Best Canadian Stocks. He graduated with a degree in Business Administration, has over a decade of writing experience, and grew his personal portfolio 153% from 2020 to 2024.
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Rogers Communications released its Q2 2026 earnings this morning, reporting an 8% revenue increase to $5.615 billion and confirming a $4.35 billion deal to acquire full ownership of Maple Leaf Sports & Entertainment. While the company posted a reported net loss of $665 million, that figure is driven entirely by a non-cash accounting charge tied to the MLSE transaction, not operational performance. Adjusted net income remained flat at $633 million, and free cash flow grew 6% to $982 million.
These Rogers Q2 2026 earnings arrive during a busy Canadian earnings week, following Monday’s Rogers preview and Tuesday’s broader TSX rally on US-Iran diplomacy hopes. Rogers reaffirmed its full-year 2026 guidance and declared a $0.50 quarterly dividend. But with margin compression, elevated leverage, and a massive capital outlay on the horizon, is RCI-B stock still worth buying?
Here’s what Canadian investors need to know.
Rogers Q2 2026 Earnings: The Headline Numbers
Data as of July 22, 2026:
- Total revenue: $5,615 million, up 8% year-over-year
- Total service revenue: $5,055 million, up 8%
- Adjusted EBITDA: $2,442 million, up 3%; margin declined 180 basis points
- Reported net loss: $(665) million vs. $148 million net income in Q2 2025
- Adjusted net income: $633 million (flat YoY)
- Reported diluted EPS: $(1.37); adjusted diluted EPS: $1.15, up 1%
- Free cash flow: $982 million, up 6%
- Operating cash flow: $1,517 million, down 5%
The key detail: the reported net loss reflects a $1,034 million non-cash loss on the MLSE put liability. This is an accounting charge related to the MLSE transaction structure, not a reflection of Rogers’ operational performance. Strip that out, and adjusted earnings were essentially flat on strong revenue growth.
In Monday’s Rogers Q2 earnings preview, we flagged wireless revenue, EBITDA margin, and free cash flow as the three metrics to watch. Revenue growth delivered. Margin compression appeared. Free cash flow improved.
Segment Breakdown: Wireless Flat, Media Surging
Wireless:
- Revenue: $2,540 million (flat YoY)
- Adjusted EBITDA: $1,313 million, up 1%; margin improved 70 basis points to 66%
- Mobile phone net adds: 40,000 (including 22,000 postpaid)
- Postpaid churn: 0.94%
- Mobile ARPU: $54.25
Wireless revenue growth has stalled, but margin held and churn remained under 1%. Stability, not growth, characterizes Rogers’ wireless segment right now.
Cable:
- Revenue: $1,984 million, up 1%
- Adjusted EBITDA: $1,158 million, up 1%; margin 58%
- Retail internet net adds: 17,000
Cable continues to perform as a stable, mature revenue stream.
Media:
- Revenue: $1,155 million, up 53%
- Adjusted EBITDA: $69 million vs. $8 million in Q2 2025 (+$61 million improvement)
Media was the standout segment this quarter, posting a 53% revenue jump and a $61 million adjusted EBITDA improvement over Q2 2025.
MLSE Deal: $4.35 Billion for Full Ownership
Rogers confirmed an agreement to acquire the remaining 25% of Maple Leaf Sports & Entertainment for $4.35 billion CAD. The deal is expected to close in Q4 2026, subject to league approvals. Upon closing, Rogers would own 100% of MLSE, the parent company of the Toronto Maple Leafs, Toronto Raptors, Toronto FC, and Toronto Argonauts.
Rogers also said it plans to pursue a minority stake sale of the consolidated Rogers Sports portfolio within 12 months of the MLSE transaction closing. That structure suggests Rogers intends to capture full ownership of MLSE while eventually bringing in outside capital to reduce leverage and share the asset’s long-term economics.
President and CEO Tony Staffieri said the company is excited about “bringing together Canada’s premier communications company with one of the world’s premier sports and entertainment organizations and unlock long-term value for our shareholders.”
The non-cash $1,034 million MLSE put-liability charge recorded in Q2 reflects the accounting treatment of this transaction structure. It does not represent an operational cost.
Guidance Reaffirmed, Capital Intensity Lowest Since 2008
Rogers reaffirmed its full-year 2026 guidance:
- Service revenue growth: 3–5%
- Adjusted EBITDA growth: 1–3%
- Capital expenditures: $2.5–$2.7 billion
- Free cash flow: $4.1–$4.3 billion
Capital expenditures in Q2 were $695 million, translating to a capital intensity ratio of 12.4%, down 350 basis points year-over-year. That’s the lowest capital intensity Rogers has reported since Q1 2008. Lower capex intensity improves free cash flow generation, which supports Rogers’ ability to fund dividends, reduce leverage, and eventually absorb the MLSE outlay.
As of June 30, 2026, Rogers’ debt leverage ratio stood at 3.8x, with $6.1 billion in available liquidity. The company declared a $0.50 quarterly dividend on July 21, 2026, and paid $270 million in dividends during Q2.
Is RCI-B a Buy After These Rogers Q2 2026 Earnings?
Here’s the balanced view Canadian investors should consider.
The bull case:
- Revenue growth of 8% demonstrates top-line momentum across all three segments.
- Free cash flow grew 6% to $982 million, supporting dividend sustainability.
- Capital intensity fell to its lowest level since 2008, improving cash conversion efficiency.
- The $0.50 quarterly dividend remains intact, offering income investors a predictable payout.
- Rogers reaffirmed full-year guidance, signaling confidence in its operational trajectory.
- MLSE ownership consolidation could unlock long-term value if the planned minority stake sale is executed on favorable terms.
The bear case:
- Adjusted EBITDA margin compressed 180 basis points despite revenue growth, suggesting cost pressure or mix shift.
- Debt leverage remains elevated at 3.8x, and the $4.35 billion MLSE acquisition could add further pressure to the balance sheet before the planned minority stake sale materializes.
- Wireless revenue was flat year-over-year, a concerning signal for Rogers’ largest business line.
- The MLSE transaction introduces execution risk tied to league approvals, minority stake sale timing, and portfolio integration.
- Capital markets may not reward the MLSE deal if it’s perceived as a distraction from core telecom operations.
What it means for Canadian investors: Rogers delivered solid operational performance in Q2 2026, but the MLSE deal introduces a new layer of capital allocation complexity. The reported net loss may dominate headlines, but investors should focus on the adjusted figures and free cash flow trajectory. If you’re a dividend-focused investor comfortable with Rogers’ leverage profile and confident in management’s ability to execute the MLSE minority stake sale, the stock may still fit a Canadian telecom allocation. If you’re growth-focused or uncomfortable with execution risk, there may be better opportunities elsewhere on the TSX. Whichever camp you fall into, holding telecom dividend payers through a low-cost online brokerage keeps more of that income working for you.
For context, the TSX composite closed Tuesday at 35,369.08, up 1.17%, led by mining and gold stocks on US-Iran diplomacy hopes. Canadian earnings season continues this week with Teck Resources reporting Thursday and CN Rail on Friday, while June’s cooling inflation print keeps the rate backdrop in focus.
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Disclaimer: The content on bestcanadianstocks.ca is for informational and entertainment purposes only and does not constitute financial advice. Past performance is not indicative of future results. Always consult a qualified financial advisor before making investment decisions.
Written By
Nick Raffoul
Nick Raffoul is the Founder and Lead Analyst at Best Canadian Stocks. He holds a degree in Business Administration and has over a decade of writing experience. Nick began investing just before the COVID-19 market crash in March 2020, growing his personal portfolio 153% by 2024. In 2022, he founded Best Canadian Stocks to make data-driven investing accessible to all Canadians. His goal is to help all of his readers achieve financial freedom, maximize their spending power, and reach their financial goals. Whether you're maximizing your TFSA, building an RRSP to save for retirement, or looking to buy your first stock, Nick has your back. His work covers Canadian equities, dividend investing, tax-advantaged accounts, and personal finance.
