Optimum Communications Inc Class A (OPTU)
NYSE:OPTU
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Optimum Communications Inc Class A
(NYSE:OPTU)
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Rating:44Neutral
Price Target:
$1.50
▲(13.64% Upside)
Action:ReiteratedDate:03/24/26
The score is held down primarily by weakening financial performance and elevated balance-sheet risk (heavy debt, negative equity, and deteriorating profitability/free cash flow). Technicals also remain bearish with the stock below key moving averages. Offsetting factors are modest: earnings-call execution on margins/costs and supportive refinancing events, but they do not fully counter the top-line/subscriber pressures and leverage overhang.
Positive Factors
High EBITDA margins
Sustained EBITDA margin expansion demonstrates strong operational leverage and disciplined cost control. Higher margins support cash generation and internal funding for capex and debt service even with revenue pressure, improving resilience and optionality over the next 2–6 months.
Negative Factors
Extremely high leverage
Massive leverage and negative equity materially constrain financial flexibility, increase refinancing and covenant risk, and elevate interest expense pressure. Even with operational gains, the capital structure limits the firm's ability to invest, pursue growth, or absorb further demand shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
High EBITDA margins
Sustained EBITDA margin expansion demonstrates strong operational leverage and disciplined cost control. Higher margins support cash generation and internal funding for capex and debt service even with revenue pressure, improving resilience and optionality over the next 2–6 months.
Read all positive factors
Optimum Communications Inc Class A (OPTU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$620.97M
Dividend YieldN/A
Average Volume (3M)3.29M
Price to Earnings (P/E)―
Beta (1Y)0.61
Revenue Growth-4.19%
EPS Growth-982.67%
CountryUS
Employees10,900
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-0.15
Shares Outstanding287,413,640
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 Cap41.80
Enterprise Value/Revenue3.02
Enterprise Value/Gross Profit4.36
Enterprise Value/Ebitda7.93
Forecast
1Y Price Target
$1.79Price Target Upside35.61% Upside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)-0.43
Revenue Forecast (FY)$8.25B
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, Chedd...
Optimum Communications Inc Class A Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Neutral
The call portrayed a company that executed disciplined cost and capital management to restore profitability and improve margins (notable adjusted EBITDA growth, gross margin expansion, free cash flow, ARPU improvements, and LightPath momentum). However, these operational gains were achieved against persistent top-line pressures: overall revenue declined, broadband and video subscriber bases contracted, competitive intensity remained high, and leverage remains elevated. Management framed many actions as intentional trade-offs to prioritize margin and cash generation while positioning for future growth, particularly via fiber and LightPath. The balance between clear operational progress and significant subscriber/revenue and balance-sheet headwinds yields a mixed but constructive outlook.Positive Updates
Adjusted EBITDA Growth and Margin Expansion
Adjusted EBITDA rose to $902,000,000 in Q4, up 7.7% year over year; adjusted EBITDA margin expanded 380 basis points to 41.3% (highest in 16 quarters) and surpassed the 40% milestone.
Negative Updates
Total Revenue Decline
Total Q4 revenue declined 2.3% year over year to approximately $2.2 billion; full-year revenue was ~ $8.6 billion, reflecting ongoing top-line pressure.
Read all updates
Q4-2025 Updates
Positive
Negative
Adjusted EBITDA Growth and Margin Expansion
Adjusted EBITDA rose to $902,000,000 in Q4, up 7.7% year over year; adjusted EBITDA margin expanded 380 basis points to 41.3% (highest in 16 quarters) and surpassed the 40% milestone.
Read all positive updates
Company Guidance
Management guided a 2026 approach focused on simplifying operations and the product portfolio to improve broadband trends while maintaining financial discipline (no explicit 2026 EBITDA/FCF guidance today; more detail in the Q1 call). Key tactical priorities are driving broadband ARPU and convergence (Q4 broadband ARPU $76.71; residential ARPU $134.49; 623k mobile lines with annualized mobile churn improvement >700 bps), disciplined fiber investment and migrations (3,000,000+ fiber passings, 716k fiber customers, 177k total passings added in 2025 including 134k fiber passings; the company can offer 1Gb+ to ~6% of its footprint; Q4 fiber net adds 12k as migrations were moderated), continued cost and margin focus (Q4 adjusted EBITDA $902M, +7.7% y/y; EBITDA margin 41.3%, +380 bps; gross margin 69.5%, +180 bps; ~ $60M y/y OpEx reduction in Q4; >6% headcount reduction), expanded use of AI/automation to reduce contacts and dispatches (dispatch rate improved ~19%; digital interactions +12%; seven‑day repeat rate lowest ever; NPS +11 pts YTD), and active balance‑sheet management (consolidated liquidity ~$1.4B; leverage ~7.3x on last‑two‑quarters annualized EBITDA; WACD 6.8%; weighted life 3.3 yrs; 81% fixed; JPMorgan financings and LightPath’s $1.7B ABS expected to close).Optimum Communications Inc Class A Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
12
Very Negative
Cash Flow
38
Negative
| 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
Negative
1.32
Price Trends
1.46
Negative
1.63
Negative
2.01
Negative
Market Momentum
-0.04
Negative
44.05
Neutral
27.78
Neutral
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 1.32 is below the 20-day moving average (MA) of 1.34, below the 50-day MA of 1.46, and below the 200-day MA of 2.01, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 44.05 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OPTU.
Optimum Communications Inc Class A Risk Analysis
Optimum Communications Inc Class A disclosed 24 risk factors in its most recent earnings report. Optimum Communications Inc Class A reported the most risks in the "Finance & Corporate" 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $100.49B | 5.14 | 20.98% | 4.42% | 0.20% | 61.54% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
57 Neutral | $30.89B | 5.66 | 31.24% | ― | 0.42% | 13.46% | |
55 Neutral | $7.66B | -967.74 | 267.95% | ― | -4.56% | 23.46% | |
47 Neutral | $520.88M | -1.79 | -23.85% | 10.11% | -4.94% | -335.70% | |
44 Neutral | $620.97M | -0.41 | ― | ― | -4.19% | -982.67% |
* Communication Services Sector Average
OPTU
Optimum Communications Inc Class A
1.32
-1.14
-46.34%
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Lumen Technologies
7.44
3.97
114.41%
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218.82
-121.58
-35.72%
CMCSA
Comcast
27.93
-2.72
-8.87%
CABO
Cable ONE
91.83
-173.62
-65.41%
Optimum Communications Inc Class A Corporate Events
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...
Business Operations and StrategyExecutive/Board Changes
Optimum Communications Adopts New Executive Long-Term Incentive Plan
Neutral
Mar 13, 2026
On March 12, 2026, Optimum Communications, Inc.’s compensation committee approved deferred cash awards for key executives, including CEO Dennis Mathew, CFO Marc Sirota, General Counsel Chief Corporate Responsibility Officer Michael Olsen, a...
Business Operations and StrategyPrivate Placements and Financing
Optimum Communications Subsidiary Completes Major Fiber Securitization
Positive
Mar 9, 2026
On March 3, 2026, Lightpath Fiber Issuer LLC, an indirect subsidiary of Optimum Communications Inc., completed a $1.657 billion securitization, issuing secured fiber network revenue notes backed by Lightpath’s fiber assets and customer contr...
Business Operations and StrategyPrivate Placements and Financing
Optimum Communications Secures $1.1 Billion Incremental Term Loan
Positive
Jan 12, 2026
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,...
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.