Optimum Reports First Quarter 2026 Results

Published: 2026-05-07 07:02:05 ET OPTU

Published on 05/07/2026 at 07:02 am EDT

Optimum Communications, Inc. (NYSE: OPTU) today reports results for the first quarter ended March 31, 2026.

Dennis Mathew, Optimum Chairman and Chief Executive Officer, said: "The first quarter reflects the deliberate choices we are making to build a more resilient business over time. We continued to navigate an intense competitive environment with strategic focus, executing against our core priorities of strengthening broadband trends, maintaining financial discipline, and investing for long-term value creation. These efforts contributed to year-over-year margin expansion, underscoring our focus on operating efficiency and disciplined execution. In doing so, we took meaningful steps toward simplifying how we go to market, improving the quality of our subscriber base and advancing our convergence strategy to drive more consistent returns. We were encouraged by strong momentum in mobile, which delivered its strongest quarter in six years with 52k net additions, reinforcing our conviction in multi-product relationships, with growth increasingly driven by customers with stronger engagement, supporting lower churn and improved lifetime value. We believe these actions, alongside our ongoing work to evolve our capital structure, are the right foundation for creating durable long-term value for our customers, our employees, and our shareholders."

First Quarter 2026 Overview

First Quarter 2026 Key Operational Highlights

Balance Sheet Review as of March 31, 2026

Shares Outstanding

Recent Refinancing Activity

Q1-24

Q2-24

Q3-24(10)

Q4-24(11)

FY-24(11)

Q1-25

Q2-25

Q3-25

Q4-25

FY-25

Q1-26(5)

Total Passings(12)

9,679.3

9,746.4

9,784.7

9,830.8

9,856.1

9,891.5

9,942.9

10,008.2

10,045.9

Total Passings additions

50.6

67.2

38.3

54.4

210.4

25.2

35.4

51.4

65.2

177.3

37.8

Total Customer Relationships(13)(14)

Residential

4,326.8

4,272.3

4,217.5

4,173.7

4,130.5

4,088.0

4,028.6

3,963.8

3,897.0

SMB

379.7

378.4

376.6

375.3

374.3

371.9

369.9

367.1

Total Unique Customer Relationships

4,706.5

4,652.0

4,595.9

4,550.3

4,505.9

4,462.2

4,400.5

4,333.6

4,264.1

Residential net additions (losses)

(36.3)

(54.5)

(54.8)

(41.8)

(187.4)

(43.2)

(42.5)

(59.3)

(64.9)

(209.9)

(66.8)

Business Services net additions (losses)

(0.7)

0.0

(1.2)

(1.8)

(3.7)

(1.3)

(1.1)

(2.4)

(2.0)

(6.7)

(2.8)

Total customer net additions (losses)

(37.0)

(54.5)

(56.1)

(43.6)

(191.1)

(44.4)

(43.6)

(61.7)

(66.9)

(216.6)

(69.5)

Residential PSUs

Broadband

4,139.7

4,088.7

4,039.5

3,999.9

3,963.3

3,928.3

3,872.2

3,811.4

3,749.6

Video

2,094.7

2,021.9

1,944.8

1,880.1

1,792.4

1,736.3

1,674.9

1,628.4

1,570.7

Telephony

1,452.1

1,391.1

1,326.0

1,269.2

1,200.0

1,147.8

1,093.1

1,041.6

994.9

Broadband net additions (losses)

(29.4)

(51.0)

(49.2)

(37.7)

(167.3)

(36.6)

(35.0)

(56.2)

(60.7)

(188.4)

(61.9)

Video net additions (losses)

(77.7)

(72.8)

(77.0)

(64.3)

(291.8)

(87.7)

(56.1)

(61.4)

(46.5)

(251.7)

(57.7)

Telephony net additions (losses)

(63.1)

(61.1)

(65.1)

(56.7)

(246.0)

(69.2)

(52.2)

(54.7)

(51.5)

(227.7)

(46.7)

Residential ARPU(1) ($)

135.67

135.95

135.77

133.95

135.44

133.93

133.68

133.28

134.49

134.18

132.32

Convergence ARPU(2) ($)

75.57

76.36

77.43

77.47

76.77

78.38

77.95

78.26

80.87

79.09

79.32

SMB PSUs

Broadband

348.5

348.8

347.7

346.1

345.7

345.6

343.6

342.0

339.7

Video

87.3

85.4

83.3

81.0

78.7

76.6

74.6

72.6

70.4

Telephony

200.7

199.2

196.8

194.5

191.9

188.9

185.6

182.5

179.2

Broadband net additions (losses)

(0.4)

0.3

(1.1)

(1.6)

(2.8)

(0.4)

(0.1)

(2.1)

(1.5)

(4.1)

(2.3)

Video net additions (losses)

(2.3)

(1.9)

(2.1)

(2.2)

(8.5)

(2.4)

(2.0)

(8.5)

(2.1)

Telephony net additions (losses)

(2.6)

(1.4)

(2.4)

(2.3)

(8.8)

(2.6)

(3.0)

(3.3)

(3.1)

(12.0)

(3.3)

Total Mobile Lines(15)

Mobile ending lines

351.6

384.5

420.1

459.6

508.6

546.4

584.4

622.5

674.1

Mobile line net additions

29.3

33.0

35.5

39.5

137.4

49.0

37.8

38.0

38.1

162.9

51.6

Q1-24

Q2-24

Q3-24

Q4-24

FY-24

Q1-25

Q2-25

Q3-25

Q4-25

FY-25

Q1-26

FTTH Total Passings(16)

2,780.0

2,842.0

2,893.7

2,961.8

2,995.0

3,023.4

3,053.0

3,096.0

3,121.6

FTTH Total Passing additions

44.8

62.0

51.7

68.1

226.6

33.2

28.5

29.6

43.0

134.2

25.6

FTTH Residential customer relationships

385.2

422.7

468.5

523.4

590.2

644.6

683.6

694.8

706.7

FTTH SMB customer relationships

9.4

11.4

13.1

14.7

16.5

18.5

19.8

21.2

22.4

FTTH Total Customer Relationships(17)

394.6

434.1

481.6

538.2

606.7

663.0

703.5

715.9

729.1

FTTH Residential net additions

51.4

37.5

45.7

55.0

189.6

66.7

54.4

39.0

11.1

171.3

12.0

FTTH SMB net additions

1.9

2.0

1.7

7.2

1.8

1.9

1.4

1.3

6.4

1.2

FTTH Total Customer Net Additions

53.2

39.5

47.4

56.6

196.8

68.5

56.3

40.4

12.5

177.8

13.2

Three Months Ended March 31,

2026

2025

Revenue:

Broadband

850,039

899,561

Video

602,223

665,568

Telephony

58,406

66,412

Mobile

49,549

36,699

Residential revenue

1,560,217

1,668,240

Business services and wholesale

364,300

363,545

News and Advertising

119,674

102,410

Other

21,177

18,087

Total revenue

2,065,368

2,152,282

Operating expenses:

Programming and other direct costs

631,129

670,531

Other operating expenses

660,203

698,186

Restructuring, impairments and other operating items

2,727,629

21,622

Depreciation and amortization

406,496

418,485

Operating income

(2,360,089

)

343,458

Other income (expense):

Interest expense, net

(457,819

)

(428,016

)

Gain on investments and sale of affiliate interests

—

Gain (loss) on interest rate swap contracts, net

2,398

(1,719

)

Loss on extinguishment of debt and write-off of deferred financing costs

(106,045

)

—

Other expense, net

(529

)

(963

)

Loss before income taxes

(2,922,084

)

(87,235

)

Income tax benefit

45,108

15,964

Net loss

(2,876,976

)

(71,271

)

Net income attributable to noncontrolling interests

(7,095

)

(4,405

)

Net loss attributable to Optimum Communications stockholders

(2,884,071

)

(75,676

)

Net loss per share:

Basic and diluted net loss per share attributable to Optimum Communications, Inc. stockholder

(6.10

)

(0.16

)

Basic and diluted weighted average common shares (in thousands)

472,420

464,862

Optimum Communications, Inc. Consolidated Statements of Cash Flows ($ in thousands) (unaudited)

Three Months Ended March 31,

2026

2025

Cash flows from operating activities:

Net loss

(2,876,976

)

(71,271

)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization

406,496

418,485

Indefinite-lived cable franchise rights impairment

2,700,000

—

Gain on investments, sale of assets or sale of affiliate interests

—

)

Loss on extinguishment of debt and write-off of deferred financing costs

106,045

—

Amortization of deferred financing costs and discounts (premiums) on indebtedness

9,911

3,992

Share-based compensation expense

14,977

15,449

Deferred income taxes

(111,441

)

(127,410

)

Decrease in right-of-use assets

10,931

11,150

Allowance for credit losses

20,628

16,196

Other

479

399

Change in operating assets and liabilities, net of effects of acquisitions and dispositions:

Accounts receivable, trade

13,941

17,187

Prepaid expenses and other assets

(79,588

)

(55,377

)

Amounts due from and due to affiliates

(8,277

)

13,905

Accounts payable and accrued liabilities

(29,207

)

42,958

Interest payable

(26,611

)

(120,856

)

Deferred revenue

18,043

18,816

Interest rate swap contracts

932

3,865

Net cash provided by operating activities .

170,283

187,483

Cash flows from investing activities:

Capital expenditures

(307,704

)

(356,124

)

Payments for acquisitions, net of cash acquired

—

(7,616

)

Other, net

3,031

191

Net cash used in investing activities

(304,673

)

(363,549

)

Cash flows from financing activities:

Proceeds from long-term debt

2,756,954

450,000

Repayment of debt

(2,524,081

)

(220,014

)

Principal payments on finance lease obligations

(6,289

)

(17,262

)

Additions to deferred financing costs

(112,630

)

—

Other, net

(7,929

)

(13,997

)

Net cash provided by financing activities

106,025

198,727

Net increase (decrease) in cash and cash equivalents

(28,365

)

22,661

Effect of exchange rate changes on cash and cash equivalents

(54

)

Net increase (decrease) in cash, cash equivalents and restricted cash

(28,348

)

22,607

Cash, cash equivalents and restricted cash at beginning of year

1,141,443

256,824

Cash, cash equivalents and restricted cash at end of year

1,113,095

279,431

Reconciliation of Non-GAAP Financial Measures

We define Adjusted EBITDA, which is a non-GAAP financial measure, as net income (loss) excluding income taxes, non-operating income or expenses, gain (loss) on extinguishment of debt and write-off of deferred financing costs, gain (loss) on interest rate swap contracts, gain (loss) on derivative contracts, gain (loss) on investments and sale of affiliate interests, interest expense, net, depreciation and amortization, share-based compensation, restructuring, impairments and other operating items (such as significant legal settlements and contractual payments for terminated employees). We define Adjusted EBITDA margin as Adjusted EBITDA divided by total revenue.

Adjusted EBITDA eliminates the significant non-cash depreciation and amortization expense that results from the capital-intensive nature of our business and from intangible assets recognized from acquisitions, as well as certain non-cash and other operating items that affect the period-to-period comparability of our operating performance. In addition, Adjusted EBITDA is unaffected by our capital and tax structures and by our investment activities.

We believe Adjusted EBITDA is an appropriate measure for evaluating our operating performance. Adjusted EBITDA and similar measures with similar titles are common performance measures used by investors, analysts and peers to compare performance in our industry. Internally, we use revenue and Adjusted EBITDA measures as important indicators of our business performance and evaluate management’s effectiveness with specific reference to these indicators. We believe Adjusted EBITDA provides management and investors a useful measure for period-to-period comparisons of our core business and operating results by excluding items that are not comparable across reporting periods or that do not otherwise relate to our ongoing operating results. Adjusted EBITDA should be viewed as a supplement to and not a substitute for operating income (loss), net income (loss), and other measures of performance presented in accordance with U.S. generally accepted accounting principles (“GAAP”). Since Adjusted EBITDA is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with similar titles used by other companies.

We also use Free Cash Flow (defined as net cash flows from operating activities less cash capital expenditures) as a liquidity measure. We believe this measure is useful to investors in evaluating our ability to service our debt and make continuing investments with internally generated funds, although it may not be directly comparable to similar measures reported by other companies.

Reconciliation of Net Loss to Adjusted EBITDA ($ in thousands) (unaudited)

Three Months Ended March 31,

2026

2025

Net loss

(2,876,976

)

(71,271

)

Income tax benefit

(45,108

)

(15,964

)

Other expense, net

529

963

Loss (gain) on interest rate swap contracts, net

(2,398

)

1,719

Gain on investments and sale of affiliate interests

—

)

Loss on extinguishment of debt and write-off of deferred financing costs

106,045

—

Interest expense, net

457,819

428,016

Depreciation and amortization

406,496

418,485

Restructuring, impairments and other operating items

2,727,629

21,622

Share-based compensation

14,977

15,449

Adjusted EBITDA

789,013

799,014

Adjusted EBITDA margin

38.2

37.1

Reconciliation of net cash flow from operating activities to Free Cash Flow (Deficit) (in thousands) (unaudited):

Three Months Ended March 31,

2026

2025

Net cash flows from operating activities

170,283

187,483

Less: Capital expenditures (cash)

307,704

356,124

Free Cash Flow (Deficit)

(137,421

)

(168,641

)

Consolidated Net Debt as of March 31, 2026 ($ in millions)

CSC Holdings, LLC Restricted Group

Principal Amount

Coupon / Margin

Maturity

Drawn RCF

$2,125

SOFR+2.350%

2027

Term Loan B-5

2,820

ABR(18)

2027

Guaranteed Notes

1,310

5.500%

2027

Guaranteed Notes

1,000

5.375%

2028

Guaranteed Notes

1,000

11.250%

2028

Guaranteed Notes

2,050

11.750%

2029

Guaranteed Notes

1,750

6.500%

2029

Guaranteed Notes

1,100

4.125%

2030

Guaranteed Notes

1,000

3.375%

2031

Guaranteed Notes

1,500

4.500%

2031

Senior Notes

1,046

7.500%

2028

Legacy unexchanged Cequel Notes

7.500%

2028

Senior Notes

2,250

5.750%

2030

Senior Notes

2,325

4.625%

2030

Senior Notes

500

5.000%

2031

CSC Holdings, LLC Restricted Group Gross Debt

21,780

CSC Holdings, LLC Restricted Group Cash

(580)

CSC Holdings, LLC Restricted Group Net Debt

$21,200

CSC Holdings, LLC Restricted Group Undrawn RCF

$149.7

UnSub Group Credit Agreement

Principal Amount

Coupon / Margin

Maturity

Term Loan B-8

$3,100

9.000%

2028

UnSub Group cash

(349)

UnSub Net Debt

$2,751

Lightpath Consolidated

Principal Amount

Coupon / Margin

Maturity

Secured Fiber Network Revenue Note

$1,527

5.597%

2031

Secured Fiber Network Revenue Note

130

5.890%

2031

Lightpath Consolidated Gross Debt

1,657

Lightpath Consolidated Cash

(97)

Lightpath Consolidated Net Debt

$1,560

Lightpath Consolidated available and undrawn under Variable Funding Note

$93.9

Net Leverage Schedule as of March 31, 2026 ($ in millions)

CSC Holdings

Restricted

Group(19)

Lightpath

Consolidated(21)

UnSub Group

Optimum

Communications

Consolidated

Gross Debt Consolidated(20)

$21,780

$1,657

$3,100

$26,537

Cash

(580)

(97)

(349)

(1,049)

Net Debt Consolidated(8)

$21,200

$1,560

$2,751

$25,488

LTM EBITDA

$1,002

$296

$2,014

$3,326

L2QA EBITDA

$1,042

$325

$2,009

$3,382

Net Leverage (LTM)

21.2x

5.3x

1.4x

7.7x

Net Leverage (L2QA)(9)

20.3x

4.8x

1.4x

7.5x

WACD(%)

6.6%

5.6%

9.0%

6.8%

Reconciliation to Financial Reported Debt

Optimum

Communications

Consolidated

Total Debenture and Loans from Financial Institutions (Carrying Amount)

$26,339

Unamortized financing costs and discounts, net of unamortized premiums

198

Gross Debt Consolidated(20)

26,537

Finance leases

104

Total Debt

26,641

Cash

(1,049)

Net Debt Including Finance Leases

$25,592

(1)

Residential ARPU is calculated by dividing the average monthly revenue for the respective period derived from the sale of broadband, video, telephony and mobile services to residential customers by the average number of total residential customers for the same period and excludes mobile-only customer relationships.

(2)

Convergence ARPU is calculated by dividing the average monthly revenue for the respective period derived from the sale of broadband and mobile services to residential customers by the average number of total residential broadband customers for the same period and excludes mobile-only customer relationships.

(3)

See “Reconciliation of Non-GAAP Financial Measures” beginning on page 7 of this earnings release.

(4)

Capital intensity refers to total cash capital expenditures as a percentage of total revenue.

(5)

Broadband subscriber net adds video subscriber net adds in Q1-26 include subscriber adjustments taken in the quarter related to prior periods. Excluding these adjustments broadband subscriber net losses would have been 56k and video subscriber net losses would have been 50k.

(6)

Mobile penetration of broadband base is expressed as the percentage of customers subscribing to both broadband and mobile services divided by the total broadband customer base. Excludes mobile only customers.

(7)

Video ARPU is calculated by dividing the average monthly residential video revenue for the respective period by the average number of total residential video customers for the same period.

(8)

Net debt, defined as the principal amount of debt less cash, and excluding finance leases and other notes.

(9)

L2QA leverage is calculated as quarter end net debt consolidated divided by the last two quarters of Adjusted EBITDA annualized.

(10)

Customer metrics as of September 30, 2024 reflect adjustments to align to the Company’s bulk residential subscriber count policy, resulting in an increase of 4.7 thousand residential customer relationships, 3.8 thousand broadband customers and 5.2 thousand video customers. The impact of these adjustments to customer relationships, broadband and video customer net additions was not material for any period presented and as such prior period metrics were not restated.

(11)

Subscriber net additions (losses) and passings additions exclude 8.3 thousand passings, 2.1 thousand customer relationships, 1.9 thousand broadband subscribers and 0.5 thousand video subscribers that were transferred in connection with a small system sale in Q4-24.

(12)

Total passings represents the estimated number of single residence homes, apartments and condominium units passed by the HFC and FTTH network in areas serviceable without further extending the transmission lines. In addition, it includes commercial establishments that have connected to our hybrid-fiber-coaxial (HFC) and fiber-to-the-home (FTTH) network. Broadband services were not available to approximately 26 thousand total passings and telephony services were not available to approximately 460 thousand total passings as of March 31, 2026.

(13)

Total Unique Customer Relationships represent the number of households/businesses that receive at least one of our fixed-line services. Customers represent each customer account (set up and segregated by customer name and address), weighted equally and counted as one customer, regardless of size, revenue generated, or number of boxes, units, or outlets on our HFC and FTTH network. Free accounts are included in the customer counts along with all active accounts, but they are limited to a prescribed group. Most of these accounts are also not entirely free, as they typically generate revenue through pay-per-view or other pay services and certain equipment fees. Free status is not granted to regular customers as a promotion. In counting bulk residential customers, such as an apartment building, we count each subscribing unit within the building as one customer, but do not count the master account for the entire building as a customer. We count a bulk commercial customer, such as a hotel, as one customer, and do not count individual room units at that hotel.

(14)

Total Customer Relationship metrics do not include mobile-only customers.

(15)

Mobile lines represent the number of residential and business customers’ wireless connections, which include mobile phone handsets and other mobile wireless connected devices. An individual customer relationship may have multiple mobile lines. The FY 2025 and Q1 2026 ending lines include approximately 17.6 thousand and 20.9 thousand lines related to business customers, respectively. The service revenue related to these business customers is reflected in "Business services and wholesale" in the table above.

(16)

Represents the estimated number of single residence homes, apartments and condominium units passed by the FTTH network in areas serviceable without further extending the transmission lines. In addition, it includes commercial establishments that have connected to our FTTH network.

(17)

Represents number of households/businesses that receive at least one of our fixed-line services on our FTTH network. FTTH customers represent each customer account (set up and segregated by customer name and address), weighted equally and counted as one customer, regardless of size, revenue generated, or number of boxes, units, or outlets on our FTTH network. Free accounts are included in the customer counts along with all active accounts, but they are limited to a prescribed group. Most of these accounts are also not entirely free, as they typically generate revenue through pay-per view or other pay services and certain equipment fees. Free status is not granted to regular customers as a promotion. In counting bulk residential customers, such as an apartment building, we count each subscribing unit within the building as one customer, but do not count the master account for the entire building as a customer. We count a bulk commercial customer, such as a hotel, as one customer, and do not count individual room units at that hotel.

(18)

Beginning on March 31, 2025, we are required to pay interest on the Incremental Term Loan B-5 at a rate equal to the alternate base rate (“ABR”), plus the applicable margin, where the ABR is the greater of (x) prime rate or (y) the federal funds effective rate plus 50 basis points, and the applicable margin for any ABR loan is 1.50% per annum. Prior to March 31, 2025, we paid interest at a rate equal to Synthetic USD London Interbank Offered Rate plus 2.50% per annum.

(19)

CSC Holdings, LLC Restricted Group excludes the unrestricted subsidiaries, primarily Lightpath Fiber Issuer LLC, Cablevision Funding LLC, Cablevision Litchfield, LLC and CSC Optimum Holdings, LLC, and certain subsidiaries of CSC Holdings designated as “unrestricted subsidiaries” for the purposes of the CSC Holdings silo on November 25, 2025.

(20)

Principal amount of debt excluding finance leases and other notes.

(21)

Amounts represent Lightpath Consolidated, which primarily consists of Lightpath Fiber Issuer LLC, as well as certain network assets between New York City and Ashburn, Virginia.

Certain numerical information is presented on a rounded basis. Minor differences in totals and percentage calculations may exist due to rounding.

About Optimum Communications

Optimum Communications, Inc. (NYSE: OPTU) is one of the largest broadband communications and video services providers in the United States, delivering broadband, video, mobile, proprietary content and advertising services to approximately 4.3 million residential and business customers across 21 states through its Optimum brand. We operate Optimum Media, an advanced advertising and data business, which provides audience-based, multiscreen advertising solutions to local, regional and national businesses and advertising clients. We also operate News 12, which is focused on delivering best-in-class hyperlocal news content.

FORWARD-LOOKING STATEMENTS

Certain statements in this earnings release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this earnings release, including, without limitation, those regarding our intentions, beliefs or current expectations concerning, among other things, our future financial condition, liquidity, capital structure and results of operations; our strategy, objectives, prospects and trends, including driving margin expansion; our 2026 priorities, including, among other things: improving broadband trends (including simplifying products and pricing and improving convergence and value-added product sell-in), maintaining financial discipline (including base management, product margin expansion, cost optimization and our AI and automation capabilities) and investing for long-term value creation (including fiber expansion, network upgrades and investment in technology and tools); our capital structure, including our ability to address upcoming maturities, refinancing activities, deleveraging initiatives and transformation plans; our subscriber trends (including broadband, mobile, video and fiber, churn, customer growth, retention, penetration and lifetime value) and competitive dynamics; our go-to-market strategies and pricing and rate management strategies and the anticipated benefits thereof; network enhancements; and future developments in the markets in which we participate or are seeking to participate. These forward-looking statements can be identified by the use of forward-looking terminology, including without limitation the terms “anticipate”, “believe”, “could”, “estimate”, “expect”, “forecast”, “intend”, “may”, “opportunity”, “plan”, “project”, “should”, “target”, “outlook”, or “will” or, in each case, their negative, or other variations or comparable terminology. Where, in any forward-looking statement, we express an expectation or belief as to future results or events, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. To the extent that statements in this earnings release are not recitations of historical fact, such statements constitute forward-looking statements, which, by definition, involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements including risks referred to in our SEC filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and subsequent Quarterly Reports on Form 10-Q. You are cautioned to not place undue reliance on Optimum Communications’ forward-looking statements. Any forward-looking statement speaks only as of the date on which it was made. Optimum Communications specifically disclaims any obligation to publicly update or revise any forward-looking statement, as of any future date.

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