“And after our evolution and expansion capital initiatives conclude, our run rate capital expenditures should be below $8 billion per year.”

In context

“arter shareholders in the first quarter compared to a bit over $1.2 billion in the prior year period, primarily driven by lower adjusted EBITDA year-over-year, partly offset by lower other operating expense. Given our noncash L.A. Laker RSN balance sheet write-down in the prior year. Turning to Slide 11. First quarter capital expenditures totaled $2.9 billion, $456 million higher than last year's first quarter, driven by timing of spend with higher network evolution spend, which lands in upgrade rebuild spend, and higher CPE, driven by new WiFi 7 routers and our new Invincible WiFi unit. We continue to expect total 2026 capital expenditures to reach approximately $11.4 billion. Looking beyond 2026, we expect total capital spending in dollar terms to be on a meaningful downward trajectory. And after our evolution and expansion capital initiatives conclude, our run rate capital expenditures should be below $8 billion per year. Just to highlight that reduction in capital expenditures, on its own, from approximately $11.7 billion in 2025 to less than $8 billion in 2028, is equivalent to over $28 of free cash flow per share based on today's share count. If we take consensus 2026 free cash flow and substitute our expected 2028 CapEx for 2026 CapEx, our current stock price would imply a free cash flow multiple of only about 3.8x, and a free cash flow yield of over 25%. Turning to first quarter free cash flow on Slide 12. First quarter free cash totaled $1.4 billion, about $200 million lower than last year, given accelerated timing of capital expenditures in the year, lower EBITDA and higher cash paid for interest year-over-year, partly offset by a less unfavorable change in cable working capital. Turning to cash tax”