OPTU · Optimum Communications, Inc.

Optimum Communications announced Q1 2026 results reflecting strategic shifts in a competitive environment, with CEO Dennis Mathew highlighting focus on broadband trends, financial discipline, and long-term value. Revenue declined 4.0% YoY to $2.07 billion, driven by residential revenue down 6.5% to $1.56 billion amid broadband PSU net losses of 64k (ending at 4.1 million, including prior period adjustment). Residential ARPU fell 1.2% to $132.32, though convergence ARPU rose 1.2% to $79.32. The massive $2.88 billion net loss, or ($6.10)/share, stemmed primarily from a $2.7 billion non-cash impairment on indefinite-lived cable franchise rights, overshadowing operational progress. Adjusted EBITDA of $789 million dipped 1.3% YoY but margin expanded 110 bps to 38.2%, supported by gross margin growth to 69.4% (+60 bps), cost discipline, workforce productivity, fewer truck rolls, and AI tools. Mobile shone with +52k line net adds (strongest in six years, total 674k), residential mobile revenue up 35% to $50 million, penetration at 8.8%. Video saw ARPU +3.7% YoY, churn improved 690 bps, new tiered packages at 17% penetration, margin up 1,000 bps over three years. Network expansion added 38k passings (96% at 1 Gig+), Lightpath advancing $362 million AI awards. Balance sheet shows consolidated net debt at $25.5 billion (7.5x leverage), recent refinancings by Lightpath and subsidiaries extended maturities and refinanced prior debt. Operating cash flow $170 million (-9.2% YoY), capex down 13.6% to $308 million. These actions aim to simplify go-to-market, enhance subscriber quality, and support convergence for lower churn and higher lifetime value.