Axtel, S.A.B. de C.V.

Headline performance (good) — revenue growth + cost discipline, but margin pressure - Q3 2026 revenues +3% YoY (company-wide), driven mainly by Enterprise and Government growth. - Combined Enterprise + Government segment revenues +8%, while company expenses fell 8% YoY (excluding reorganization costs). - Comparable EBITDA MXN 917m: +1% YoY and +6% sequentially; comparable EBITDA margin ~29% vs 30% prior year → margin compression.

Profitability challenge (bad) — contribution margin down due to revenue mix + wholesale dark fiber - Contribution margin declined because of (1) higher mix of nonrecurring revenues (lower margin than recurring; “more nonrecurring vs recurring” increased). - (2) Wholesale dark fiber weakness: company cited about MXN 150m YoY lower dark fiber revenues YTD (dark fiber carries higher margin but also higher CapEx), weighing on gross/contribution. - Gross margin weakened: 67% in Q3 vs 72% prior-year quarter (Wholesale dark fiber impact + mix effects).

Segment details + revenue mix (mixed) - Enterprise +2% YoY: IT & cybersecurity +15% YoY (cloud adoption + nonrecurring cybersecurity projects). - Government +41% YoY: driven by digital infrastructure + data center projects; recurring +25% and nonrecurring +84%. - Recurring revenue mix (investor-relevant): - Enterprise: “~90%+ recurring” (typically near 93–94% average historically). - Government: more volatile; ~80% recurring year-to-date this year (reflecting shorter federal contract durations moving from multi-year to ~1-year). - Wholesale: generally 80%+ recurring, but dark fiber declines reduced the overall quality vs last year.