Optimum Communications Inc Class A (OPTU) AI Stock Analysis

• Market Cap: $765.83M
• Dividend Yield: N/A
• Average Volume (3M): 3.29M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• Revenue Growth: -4.19%
• EPS Growth: -982.67%
• Country: US
• Employees: 10,900
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): -3.47
• Shares Outstanding: 285,607,240
• 10 Day Avg. Volume: 3,158,278
• 30 Day Avg. Volume: 3,289,194
• PEG Ratio: 0.04
• Price to Book (P/B): -2.36
• Price to Sales (P/S): 0.12
• P/FCF Ratio: 7.42
• Enterprise Value/Market Cap: 34.33
• Enterprise Value/Revenue: 3.04
• Enterprise Value/Gross Profit: 4.42
• Enterprise Value/Ebitda: 16.89
• 1Y Price Target: $2.28
• Price Target Upside: 39.88% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: $1.50 ▼(-7.98% Downside)

The score is held down primarily by weak financial performance (losses, negative equity, and deteriorating free cash flow) and bearish technical trends. Mixed earnings-call signals and the refinancing-related corporate event provide only modest support, while valuation remains unattractive due to ongoing losses and no dividend.

Positive Factors

Record Gross Margin

A sustained margin expansion from a mix shift away from lower-margin video toward higher-margin broadband and services improves long-term profitability potential. Higher gross margins provide more cushion to absorb competitive pricing and support reinvestment in network and product upgrades.

Mobile Revenue Momentum

Rapid mobile revenue growth reflects successful diversification beyond legacy cable services, enabling cross-sell and ARPU uplift over time. A growing mobile business can stabilize subscription revenue, reduce dependence on declining video services, and leverage existing customer relationships.

Lightpath Fiber Expansion

Targeted expansion of AI-grade fiber and enterprise Lightpath growth positions the company in higher-margin B2B markets. Durable fiber infrastructure supports recurring revenue, differentiation versus consumer-only competitors, and exposure to structural demand from cloud, AI, and enterprise connectivity needs.

Negative Factors

Negative Stockholders' Equity

Negative equity signals solvency stress and an undefined debt-to-equity metric, limiting financial flexibility. This structural weakness increases refinancing risk, constrains access to capital, and can force higher-cost funding or asset sales, hampering strategic investments and long-term growth execution.

Large Noncash Impairment

A substantial impairment to indefinite franchise rights reflects structural deterioration in legacy video economics. It materially reduces book equity and signals lasting revenue base erosion, worsening leverage ratios and potentially limiting ability to fund network upgrades or pursue growth without additional financing.

Broadband Subscriber Losses

Sustained broadband attrition amid intensifying competition points to structural market share pressure and revenue erosion. Persistent subscriber declines reduce recurring revenue and ARPU, increase churn-related marketing and acquisition costs, and challenge the long-term return on network investments.

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

Weak fundamentals driven by declining revenue, a deeply negative net margin, negative equity indicating solvency stress, and sharply deteriorating free cash flow growth despite some operating cash generation.

Income Statement

Altice USA's income statement shows declining revenue with a negative growth rate of -1.37% TTM. The company has a negative net profit margin of -21.43% TTM, indicating significant losses. Gross profit margin remains relatively stable at 47.09% TTM, but the negative EBIT margin of -1.95% TTM reflects operational challenges. Overall, the income statement highlights financial instability and declining profitability.

Balance Sheet

The balance sheet reveals a concerning financial structure with negative stockholders' equity, leading to an undefined debt-to-equity ratio. The return on equity is extremely high at 190.99% TTM due to negative equity, which is not sustainable. The equity ratio is also negative, indicating financial distress and potential solvency issues.

Cash Flow

Cash flow analysis shows a significant decline in free cash flow growth at -6025.78% TTM, reflecting cash management challenges. The operating cash flow to net income ratio is 0.60 TTM, indicating some ability to generate cash from operations despite net losses. However, the free cash flow to net income ratio of 0.67 TTM suggests limited cash flow relative to net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2023	Dec 2023	Dec 2023
Income Statement
Total Revenue	8.64B	8.95B	9.24B	9.24B	9.24B	9.24B
Gross Profit	5.95B	6.06B	4.56B	4.56B	4.56B	4.56B
EBITDA	1.56B	3.35B	3.46B	3.46B	3.46B	3.46B
Net Income	-1.85B	-102.92M	53.20M	53.20M	53.20M	53.20M
Balance Sheet
Total Assets	30.73B	31.70B	31.92B	31.92B	31.92B	31.92B
Cash, Cash Equivalents and Short-Term Investments	938.76M	256.53M	302.06M	302.06M	302.06M	302.06M
Total Debt	26.49B	25.31B	25.34B	25.34B	25.34B	25.34B
Total Liabilities	32.97B	32.16B	32.36B	32.36B	32.36B	32.36B
Stockholders Equity	-2.24B	-469.24M	-422.18M	-422.18M	-422.18M	-422.18M
Cash Flow
Free Cash Flow	-269.03M	149.39M	121.59M	121.59M	121.59M	121.59M
Operating Cash Flow	1.19B	1.58B	1.83B	1.83B	1.83B	1.83B
Investing Cash Flow	-1.42B	-1.46B	-1.71B	-1.71B	-1.71B	-1.71B
Financing Cash Flow	1.03B	-171.98M	-122.59M	-122.59M	-122.59M	-122.59M

Optimum Communications Inc Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.63
• 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 1.63 is below the 20-day moving average (MA) of 1.78, below the 50-day MA of 1.79, and below the 200-day MA of 2.23, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 37.63 is Neutral, neither overbought nor oversold. The STOCH value of 9.25 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	77 Outperform	$104.58B	4.76	24.73%	4.42%	0.20%	61.54%
CHTR	65 Neutral	$26.52B	5.04	34.79%	―	0.42%	13.46%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
LUMN	53 Neutral	$9.53B	-5.52	―	―	-4.56%	23.46%
CABO	50 Neutral	$424.33M	-0.89	-27.38%	10.11%	-4.94%	-335.70%
OPTU	42 Neutral	$765.83M	-0.40	―	―	-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.

Optimum Communications Secures $2 Billion Loan Amendment

On November 25, 2025, Optimum Communications Inc.’s subsidiary, CSC Holdings, LLC, entered into a Fourteenth Amendment to its Credit Agreement, securing $2 billion in new incremental term loan commitments. This amendment aims to refinance existing loans and extend maturity dates, impacting the company’s financial structure. Additionally, Cablevision Litchfield, LLC and CSC Optimum Holdings, LLC, also subsidiaries of Optimum Communications, entered into a separate $2 billion credit agreement to refinance the newly acquired loans, indicating a strategic financial maneuver to optimize debt management.

The most recent analyst rating on (OPTU) stock is a Sell with a $1.50 price target. To see the full list of analyst forecasts on Optimum Communications Inc Class A stock, see the OPTU Stock Forecast page.