Optimum Communications Inc Class A (OPTU)
NYSE:OPTU
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Optimum Communications Inc Class A
(NYSE:OPTU)
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Rating:46Neutral
Price Target:
$1.50
▼(-10.18% Downside)
Action:Reiterated
Date:06/19/26
The score is held down primarily by weak financial performance (shrinking revenue, large losses, negative equity/high leverage, and negative free cash flow). Technicals are only neutral with the stock still below key longer-term moving averages, while valuation support is limited due to losses and no dividend. Earnings commentary and recent financing/tender actions provide some operational and liquidity positives, but not enough to offset the core balance-sheet and top-line pressures.
Positive Factors
Scale & strong adjusted EBITDA margin
A near-40% adjusted EBITDA margin at scale provides a durable operating cushion, supporting reinvestment and service continuity even as revenue softens. High operating profitability improves cash flow coverage of operating needs and buffers competitive pricing pressure over next 2–6 months.
Negative Factors
Shrinking revenue and broadband losses
Multi-year top-line decline and persistent broadband subscriber losses erode core scale and limit upside from cost cuts. Continued declines undermine ARPU and revenue leverage, pressuring long-term cash flow and making sustained margin expansion harder to maintain over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale & strong adjusted EBITDA margin
A near-40% adjusted EBITDA margin at scale provides a durable operating cushion, supporting reinvestment and service continuity even as revenue softens. High operating profitability improves cash flow coverage of operating needs and buffers competitive pricing pressure over next 2–6 months.
Read all positive factors
Optimum Communications Inc Class A (OPTU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$528.56M
Dividend YieldN/A
Average Volume (3M)3.29M
Price to Earnings (P/E)―
Beta (1Y)0.19
Revenue Growth-3.98%
EPS Growth-2821.86%
CountryUS
Employees10,900
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-9.93
Shares Outstanding282,656,980
10 Day Avg. Volume3,158,278
30 Day Avg. Volume3,289,194
Financial Highlights & Ratios
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 Cap49.62
Enterprise Value/Revenue3.08
Enterprise Value/Gross Profit4.77
Enterprise Value/Ebitda57.70
Forecast
1Y Price Target
$1.35Price Target Upside-19.16% Downside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)-6
Revenue Forecast (FY)$8.14B
Optimum Communications Inc Class A Business Overview & Revenue Model
Company Description
Optimum Communications, Inc. delivers a diverse range of services, encompassing high-speed internet, subscription television, and telephone connectivity. Additionally, the company produces its own digital content and offers various advertising sol...
Optimum Communications Inc Class A Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Negative
The call highlighted clear operational improvements: margin expansion, material cost reductions, strong mobile growth and meaningful progress in video economics and convergence. However, these positives are offset by ongoing top-line pressure (revenue down ~4%), substantial broadband subscriber losses, a large noncash impairment leading to a ~$2.9B net loss, and an elevated leverage profile (7.5x) with upcoming maturities. Management articulated a coherent strategy (pricing simplification, convergence focus, AI/automation, targeted capex) and provided liquidity and financing actions, but the near-term outlook still anticipates mid-single-digit revenue declines and low- to mid-single-digit EBITDA declines. On balance, the lowlights (persistent subscriber declines, revenue headwinds, high leverage and the large impairment) outweigh the operational and margin positives.Positive Updates
Revenue and EBITDA Scale
Total revenue of ~$2.1 billion with adjusted EBITDA of $789 million, demonstrating continued scale despite pressure; adjusted EBITDA margin expanded 110 bps to 38.2%.
Negative Updates
Broadband Subscriber Pressure
Broadband net losses of 64,000 in Q1 (56,000 excluding a prior-period subscriber adjustment), leaving ~4.1 million broadband subscribers. Management cited intense competitive environment (ILECs, fixed wireless, fiber overbuilders), particularly in the West.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue and EBITDA Scale
Total revenue of ~$2.1 billion with adjusted EBITDA of $789 million, demonstrating continued scale despite pressure; adjusted EBITDA margin expanded 110 bps to 38.2%.
Read all positive updates
Company Guidance
Management guided that full-year 2026 total revenue should decline mid-single-digits and adjusted EBITDA is expected to decline low-to-mid single digits; Q1 results were revenue ≈$2.1B (−4% YoY), adjusted EBITDA $789M (−1.3%; margin 38.2%, +110 bps), gross margin 69.4% (+60 bps), residential ARPU $132.32 (−1.2%), convergence ARPU $79.32 (+1.2%), broadband net losses 56k (ex-adjustment) (4.1M broadband subs), mobile lines 674k with +52k Q1 adds and ~9% mobile penetration of the broadband base, video net losses 51k (video revenue ≈−10% YoY), fiber customers 729k (+20% YoY) and ~10M total passings; capex is guided to $1.2–$1.5B in 2026 (Q1 capex $308M, ~15% intensity) with Lightpath capex $200–$300M and expected passing additions 150–175k, liquidity ~$1.3B, weighted average cost of debt 6.8%, weighted average life 3.1 years, 81% fixed-rate debt and leverage ~7.5x last‑2‑quarters annualized adj. EBITDA — while management expects continued ARPU pressure for the year, they expect margin expansion from programming/direct cost declines (programming ≈−13% YoY) and operational efficiencies (call volumes −23%, truck rolls −39%, service visits −16%, salary costs −13%).Optimum Communications Inc Class A Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
18
Very Negative
Cash Flow
41
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.50B | 8.59B | 8.95B | 9.24B | 9.65B | 10.09B |
| Gross Profit | 5.50B | 4.26B | 6.06B | 4.56B | 4.67B | 6.71B |
| EBITDA | 454.51M | 1.56B | 3.35B | 3.46B | 3.67B | 4.36B |
| Net Income | -4.68B | -1.87B | -102.92M | 53.20M | 194.56M | 990.31M |
Balance Sheet | ||||||
| Total Assets | 27.87B | 30.70B | 31.70B | 31.92B | 33.66B | 33.22B |
| Cash, Cash Equivalents and Short-Term Investments | 1.05B | 1.12B | 256.53M | 302.06M | 305.48M | 195.71M |
| Total Debt | 26.69B | 26.50B | 25.31B | 25.34B | 26.85B | 26.78B |
| Total Liabilities | 33.04B | 33.00B | 32.16B | 32.36B | 34.17B | 34.09B |
| Stockholders Equity | -5.20B | -2.31B | -469.24M | -422.18M | -475.21M | -819.79M |
Cash Flow | ||||||
| Free Cash Flow | -88.26M | -118.84M | 149.39M | 121.59M | 452.62M | 1.62B |
| Operating Cash Flow | 1.21B | 1.23B | 1.58B | 1.83B | 2.37B | 2.85B |
| Investing Cash Flow | -1.23B | -1.29B | -1.46B | -1.71B | -1.92B | -1.57B |
| Financing Cash Flow | 856.66M | 949.36M | -171.98M | -122.59M | -335.91M | -1.36B |
Optimum Communications Inc Class A Technical Analysis
Positive
1.67
Price Trends
1.20
Positive
1.33
Positive
1.69
Negative
Market Momentum
0.09
Negative
69.63
Neutral
73.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPTU, the sentiment is Positive. The current price of 1.67 is above the 20-day moving average (MA) of 1.13, above the 50-day MA of 1.20, and below the 200-day MA of 1.69, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 69.63 is Neutral, neither overbought nor oversold. The STOCH value of 73.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OPTU.
Optimum Communications Inc Class A Risk Analysis
Optimum Communications Inc Class A disclosed 25 risk factors in its most recent earnings report. Optimum Communications Inc Class A reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Optimum Communications Inc Class A Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $81.45B | 4.46 | 19.83% | 4.42% | 1.39% | 24.78% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
52 Neutral | $8.08B | -4.63 | -79.42% | ― | -6.78% | -452.12% | |
51 Neutral | $18.25B | 3.49 | 30.84% | ― | -0.92% | 3.13% | |
46 Neutral | $528.56M | -0.16 | 180.25% | ― | -3.98% | -2821.86% | |
44 Neutral | $248.19M | -0.79 | -22.76% | 10.11% | -5.27% | -1495.76% |
* Communication Services Sector Average
OPTU
Optimum Communications Inc Class A
1.61
-0.48
-22.97%
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CMCSA
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CABO
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Optimum Communications Inc Class A Corporate Events
Executive/Board ChangesShareholder Meetings
Optimum Communications Reaffirms Board and Auditor at 2026 Meeting
Positive
Jun 12, 2026
On June 10, 2026, Optimum Communications, Inc. held its 2026 Annual Meeting of Stockholders, where Class A and Class B holders voted together on director elections and auditor ratification. Stockholders re-elected nine directors, including Patrick...
Business Operations and StrategyStock BuybackPrivate Placements and Financing
Optimum Launches Tender Offer Following Major Reorganization
Positive
Jun 1, 2026
On May 29, 2026, Optimum completed an internal reorganization that moved its Optimum East Cable business and 50.01% stake in Lightpath into a newly created unrestricted holding company, CSC Investments II LLC (Unsub Topco), aiming to insulate thes...
Executive/Board Changes
Optimum Communications Announces Executive Leadership Transition Plan
Neutral
Apr 2, 2026
Optimum Communications Inc. Class A announced that Executive Vice President, General Counsel and Chief Corporate Responsibility Officer Michael E. Olsen will step down from his current role effective October 1, 2026, or earlier upon appointment of...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.