Optimum Communications Inc Class A (OPTU) AI Stock Analysis

• Market Cap: $747.99M
• Dividend Yield: N/A
• Average Volume (3M): 3.29M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.79
• 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: 34.79
• Enterprise Value/Revenue: 3.03
• Enterprise Value/Gross Profit: 4.37
• Enterprise Value/Ebitda: 7.95
• 1Y Price Target: $1.89
• Price Target Upside: 23.77% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: $1.50 ▼(-1.96% Downside)
• 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

Margin and EBITDA improvement

Sustained margin expansion and material adjusted EBITDA growth indicate durable operating leverage and effective cost discipline. Higher margins convert to stronger cash flow from operations even if revenue is pressured, improving resilience and capacity to service debt over the medium term.

Expanding fiber footprint

Rapid fiber expansion strengthens competitive positioning in broadband, supports higher ARPU and retention, and future-proofs the network. A growing fiber customer base creates a structural avenue for sustainable revenue mix improvement and long-term margin uplift as migrations scale.

Positive cash generation & ARPU gains

Ongoing positive operating cash flow, lower capital intensity and rising broadband ARPU show the company can generate and preserve cash despite earnings volatility. Combined with AI-driven efficiency and lower capex, this supports liquidity and funds strategic priorities like fiber and deleveraging.

Negative Factors

Elevated leverage and negative equity

Persistently negative equity and very large debt create structural balance-sheet risk. High leverage reduces financial flexibility, raises refinancing and covenant risk, increases interest burden, and constrains strategic investments or aggressive fiber rollouts without meaningful deleveraging.

Multi-year revenue decline

A sustained and sharp revenue contraction erodes scale economics, weakens cross-sell opportunities, and limits the upside from margin improvements. If top-line erosion persists, it will pressure long-term profitability and the ability to restore consistent free cash flow.

Broadband subscriber losses & competition

Continued broadband subscriber attrition in a core product undermines recurring revenue and ARPU potential. Intense promotional competition increases customer acquisition costs and churn risk, making it harder to sustain margin and cash-flow improvements from cost cuts alone.

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	5.95B	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: 1.53
• 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 1.53 is below the 20-day moving average (MA) of 1.62, below the 50-day MA of 1.72, and below the 200-day MA of 2.16, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 37.05 is Neutral, neither overbought nor oversold. The STOCH value of 7.71 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	$113.69B	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	58 Neutral	$33.99B	6.38	31.52%	―	0.42%	13.46%
LUMN	55 Neutral	$8.19B	-4.59	―	―	-4.56%	23.46%
CABO	50 Neutral	$644.83M	―	-27.38%	10.11%	-4.94%	-335.70%
OPTU	43 Neutral	$747.99M	-0.39	―	―	-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.