Optimum Communications Inc Class A (OPTU) AI Stock Analysis

• Market Cap: $700.95M
• Dividend Yield: N/A
• Average Volume (3M): 3.29M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: -4.19%
• EPS Growth: -982.67%
• Country: US
• Employees: 10,900
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): -0.15
• Shares Outstanding: 287,413,640
• 10 Day Avg. Volume: 3,158,278
• 30 Day Avg. Volume: 3,289,194
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.33
• Price to Sales (P/S): 0.09
• P/FCF Ratio: -6.49
• Enterprise Value/Market Cap: 37.11
• Enterprise Value/Revenue: 3.03
• Enterprise Value/Gross Profit: 4.37
• Enterprise Value/Ebitda: 7.95
• 1Y Price Target: $1.84
• Price Target Upside: 29.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): -0.36
• Revenue Forecast (FY): $8.25B

• Rating: 43 Neutral
• Price Target: $1.50 ▲(5.63% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is driven primarily by weak financial performance (sharp revenue decline, large losses, negative equity and high leverage), with only partial support from positive operating cash flow and improved margins discussed on the earnings call. Technicals remain soft and valuation is hard to justify on earnings due to loss-making results.

Positive Factors

Cash generation and capex discipline

Sizable positive quarterly free cash flow and a meaningful step-down in cash capital intensity indicate the company can generate liquidity even amid revenue stress. Durable capex discipline and positive OCF buffer operations, support near-term liquidity and selective fiber funding while management pursues deleveraging.

Adjusted EBITDA and margin expansion

A sustained recovery in adjusted EBITDA and a >380bp margin expansion reflect structural cost reductions and mix shift toward higher-margin broadband. Higher operating margins are durable levers that improve cash conversion and resilience versus volatile revenue, enabling continued investment in network and margin-preserving growth.

Strategic growth via LightPath and fiber footprint

LightPath's organic growth plus an inaugural $1.7B ABS to refinance LightPath debt represent a structural financing and growth enabler. Combined with expanding fiber passings, this diversifies revenue, funds AI-driven contracts, and supports scale in higher-growth, higher-margin segments over the medium term.

Negative Factors

Severe revenue decline and large net loss

A ~60% annual revenue collapse and a ~-22% net margin materially erode the company's scale and recurring revenue base. Such a dramatic top-line deterioration reduces fixed-cost absorption and constrains sustainable profitability, making it harder to support investment, service debt, and restore long-term growth.

Elevated leverage and negative equity

Persistent negative equity and historically very large debt create structurally constrained financial flexibility. High leverage raises refinancing, covenant and interest-rate exposure, increasing the chance management must prioritize deleveraging or asset sales over growth investments, limiting strategic optionality.

Subscriber losses and competitive intensity

Ongoing broadband and video subscriber declines driven by aggressive promotions and weak move activity erode the recurring revenue base and ARPU. Persistent churn and impaired gross additions create a structural headwind to top-line recovery and force continued trade-offs between growth, price discipline, and margin preservation.

Optimum Communications Inc Class A Business Overview & Revenue Model

Company Description

Optimum Communications, Inc. engages in the provision of broadband, pay television, telephony services, proprietary content, and advertising services. Its brands include Optimum, Suddenlink, Optimum Mobile, Altice Business, News 12 Networks, Cheddar News, a4 Advertising, and i24 News. The company was founded by Patrick Drahi in 2001 and is headquartered in Long Island City, NY.

How the Company Makes Money

Altice USA generates revenue primarily through its subscription-based services, which include broadband internet, cable television, and phone services. The company's residential segment contributes significantly to its earnings by offering bundled services that attract and retain customers. Additionally, Altice USA earns advertising revenue through its media assets and partnerships, which include local and national advertising on its cable networks. The company is also involved in business services, providing connectivity solutions to small and medium enterprises, further diversifying its revenue streams. Significant partnerships with content providers and technology companies enhance its service offerings and customer experience, thereby supporting its overall financial performance.

Optimum Communications Inc Class A Financial Statement Overview

Summary

Financials are under heavy pressure: multi-year revenue declines culminated in a steep 2025 drop and a swing to a large net loss. Balance-sheet risk is elevated with persistently negative equity and historically large debt, while cash flow is a partial offset (operating cash flow stayed positive but free cash flow turned negative in 2025).

Income Statement

Results have deteriorated sharply. Revenue has been declining for multiple years, capped by a steep drop in 2025 (annual revenue down ~60% versus 2024). While gross margin remains relatively high (mid-to-high 60% range in 2023–2025), profitability has collapsed: net income swung from modest profits in 2022–2023 to a small loss in 2024 and a very large loss in 2025 (net margin ~-22%). EBITDA margins have held up better (~37–38%), but the widening bottom-line loss indicates heavy below-the-line pressure (e.g., interest, depreciation/amortization, or one-time charges) and materially weaker earnings quality.

Balance Sheet

Balance sheet risk is elevated. Equity is negative across all years shown, and leverage is therefore structurally concerning (debt-to-equity is not economically meaningful with negative equity, but it signals a thin/eroded capital base). Total debt is very large (~$25–27B in 2020–2024), and 2025 shows missing/zero debt and assets data, reducing transparency and confidence in trend analysis. The persistent negative equity limits financial flexibility and increases refinancing and covenant risk, particularly in a pressured earnings environment.

Cash Flow

Cash generation is mixed but somewhat more resilient than earnings. Operating cash flow remains positive and sizable (roughly $1.2B–$3.0B over the period), which is a key support for liquidity. However, free cash flow has deteriorated materially: positive in 2020–2024 but turning negative in 2025, indicating higher capital needs and/or weaker underlying cash conversion. The relationship between cash flow and net income is also volatile (cash flow stayed positive even as net losses expanded), which helps near-term liquidity but raises questions about the sustainability of cash generation if operating trends continue to weaken.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.59B	8.95B	9.24B	9.65B	10.09B
Gross Profit	4.26B	6.06B	4.56B	4.67B	6.71B
EBITDA	3.27B	3.35B	3.46B	3.67B	4.36B
Net Income	-1.87B	-102.92M	53.20M	194.56M	990.31M
Balance Sheet
Total Assets	30.70B	31.70B	31.92B	33.66B	33.22B
Cash, Cash Equivalents and Short-Term Investments	1.12B	256.53M	302.06M	305.48M	195.71M
Total Debt	26.46B	25.31B	25.34B	26.85B	26.78B
Total Liabilities	33.00B	32.16B	32.36B	34.17B	34.09B
Stockholders Equity	-2.31B	-469.24M	-422.18M	-475.21M	-819.79M
Cash Flow
Free Cash Flow	-118.84M	149.39M	121.59M	452.62M	1.62B
Operating Cash Flow	1.23B	1.58B	1.83B	2.37B	2.85B
Investing Cash Flow	-1.29B	-1.46B	-1.71B	-1.92B	-1.57B
Financing Cash Flow	949.36M	-171.98M	-122.59M	-335.91M	-1.36B

Optimum Communications Inc Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPTU, the sentiment is Negative. The current price of 1.42 is below the 20-day moving average (MA) of 1.58, below the 50-day MA of 1.68, and below the 200-day MA of 2.14, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 31.06 is Neutral, neither overbought nor oversold. The STOCH value of 7.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OPTU.

Optimum Communications Inc Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMCSA	80 Outperform	$113.73B	5.86	21.92%	4.42%	0.20%	61.54%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
CHTR	57 Neutral	$32.95B	6.22	31.52%	―	0.42%	13.46%
LUMN	55 Neutral	$7.63B	-4.06	―	―	-4.56%	23.46%
CABO	50 Neutral	$530.38M	-1.12	-27.38%	10.11%	-4.94%	-335.70%
OPTU	43 Neutral	$700.95M	-0.36	―	―	-4.19%	-982.67%

Optimum Communications Inc Class A Corporate Events

Optimum Communications Secures $1.1 Billion Incremental Term Loan

On January 12, 2026, Optimum Communications’ indirect subsidiaries Cablevision Litchfield, LLC and CSC Optimum Holdings, LLC entered into an Amended and Restated Credit Agreement that adds an incremental term loan commitment of $1.1 billion, with the new loans matching the terms of an existing November 25, 2025 credit facility, including a 9.0% fixed interest rate, maturity on November 25, 2028, and no amortization. The incremental term loan proceeds were used to fully refinance outstanding debt under a July 16, 2025 receivables facility, cover related fees and expenses, and provide excess funds for general corporate purposes, reshaping the company’s debt profile and potentially enhancing financial flexibility for its operations.

The most recent analyst rating on (OPTU) stock is a Sell with a $1.75 price target. To see the full list of analyst forecasts on Optimum Communications Inc Class A stock, see the OPTU Stock Forecast page.