When we refer to free cash flow during today's call, we mean adjusted EBITDA less capital expenditures as defined in our earnings release. Reconciliations of non-GAAP financial measures discussed on this call to the most directly comparable GAAP measures can be found in our earnings release or on our website at ir.cableone.net. However, we continue to navigate a challenging macro environment, which is why our focus remains on execution, retaining existing customers, retooling our go-to-market approaches, and working to position Cable One for durable long-term growth. Average monthly usage is now around 775 Gb per customer, underscoring sustained demand for high-capacity service while peak utilization remains below 20%.
Turning to ARPU, the increase this quarter was primarily driven by realizing a full quarter of the segmented pricing changes implemented during Q2, as well as a higher-than-usual level of promotional expiration. We believe mobile will help reduce churn, deepen the adoption of our services, and increase customer lifetime value. The goal is to achieve a smooth transition and facilitate the continued execution of our long-term growth strategy. To close, we're encouraged by the continued progress, stronger Connects trends through the quarter, and in October, year-over-year Connects growth paired with another month of sequential churn improvement.
Residential data revenues decreased $2.8 million, or 1.2% year-over-year, driven by a 5.1% decline in subscribers, partially offset by a 3.2% increase in ARPU. This growth was driven primarily by our fiber and carrier segments, offset by some continued subscriber and pricing softness in the SMB segment. Adjusted EBITDA for Q3 of 2025 was $201.9 million, representing 53.7% of revenues, compared to $213.6 million. Capital expenditures totaled $71.8 million in the third quarter, a decrease of $5.2 million, or 6.8% year-over-year.