Want to see OPTU full AI Analyst Report?
Top Page
Optimum Communications Inc Class A
(NYSE:OPTU)
Select Model
Select Model
Rating:43Neutral
Price Target:
$0.74
▼(-55.63% Downside)
Action:Reiterated
Date:08/10/26
OPTU scores low primarily due to weak financial performance—declining revenue, large recent losses, negative equity, and high leverage with recently negative free cash flow. Technicals also remain bearish with the stock trading below key moving averages and weak momentum indicators. The earnings call adds some offset from improving margins and cost productivity plus mobile/fiber growth, but guidance for ongoing declines and balance-sheet pressure keeps the overall score constrained.
Positive Factors
Margin expansion (gross/adj EBITDA)
Sustained gross and adjusted EBITDA margin expansion reflects durable product mix shifts and cost discipline, improving unit economics even as lower-margin video declines. Higher margins bolster cash conversion potential and provide operating leverage that supports investment in fiber and customer experience over coming quarters.
Negative Factors
Highly levered balance sheet
Very high debt and negative equity materially limit financial flexibility and raise refinancing risk. Elevated leverage increases sensitivity to earnings volatility, constrains strategic options, and makes multi-quarter operational improvements less effective until a substantive balance-sheet reset or debt reduction is completed.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin expansion (gross/adj EBITDA)
Sustained gross and adjusted EBITDA margin expansion reflects durable product mix shifts and cost discipline, improving unit economics even as lower-margin video declines. Higher margins bolster cash conversion potential and provide operating leverage that supports investment in fiber and customer experience over coming quarters.
Read all positive factors
Optimum Communications Inc Class A (OPTU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$315.29M
Dividend YieldN/A
Average Volume (3M)3.29M
Price to Earnings (P/E)―
Beta (1Y)-0.10
Revenue Growth-4.36%
EPS Growth-1695.11%
CountryUS
Employees9,500
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-10.39
Shares Outstanding272,565,550
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$1.06Price Target Upside-36.38% Downside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)-7.38
Revenue Forecast (FY)$8.13B
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:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Neutral
The call presented a mix of tangible operational progress—margin expansion, solid mobile and fiber growth, cost and productivity improvements, product repositioning (E-Tiers, convergence) and execution on corporate simplification—with persistent and material headwinds: mid-single-digit revenue decline, ongoing broadband and video subscriber losses, elevated churn in competitive markets, and very high leverage (≈8x) requiring a balance-sheet reset. Management emphasized disciplined execution and multi-quarter initiatives (AI, MarTech, network investments) to stabilize broadband and improve unit economics, but noted these will take time. Given the nearly equal weight of meaningful operational improvements and significant structural/financial challenges, the overall tone is cautiously constructive but realistic about remaining risks.Positive Updates
Total Revenue and Adjusted EBITDA
Total revenue of approximately $2.0 billion and adjusted EBITDA of $786 million; adjusted EBITDA declined 2.2% year-over-year but adjusted EBITDA margin expanded to 38.8% (up 140 bps).
Negative Updates
Revenue Decline
Total revenue declined 5.8% year-over-year (5.1% decline excluding the advertising agency divestiture), with residential video and video-related news & advertising accounting for ~$92 million (≈75%) of the revenue decline.
Read all updates
Q2-2026 Updates
Positive
Negative
Total Revenue and Adjusted EBITDA
Total revenue of approximately $2.0 billion and adjusted EBITDA of $786 million; adjusted EBITDA declined 2.2% year-over-year but adjusted EBITDA margin expanded to 38.8% (up 140 bps).
Read all positive updates
Company Guidance
Management guided to a full‑year outlook of mid‑single‑digit revenue declines (Q2 revenue ~$2.0B, down 5.8% YoY or 5.1% ex‑divestiture) and low‑ to mid‑single‑digit adjusted EBITDA declines (Q2 adjusted EBITDA $786M, down 2.2% YoY; adj. EBITDA margin 38.8%, +140 bps), while highlighting record gross margin of 71% (+180 bps). They expect FY2026 capex of $1.2B–$1.5B (Q2 capex $320M, ~16% cap intensity) with Lightpath capex $200M–$300M, passings growth of ~150k–175k (Q2 totals: 10.1M passings, 3.2M fiber passings, +220k last 12 months) and higher H2 spend. Operational targets include broadband stabilization (Q2 broadband net loss 40k; ~4.0M broadband subs), continued mobile growth (Q2 +50k lines to 724k, mobile lines +33% YoY; convergence ARPU $79.80, +2.4% YoY), fiber customer growth (Q2 +20k to 749k, +13% YoY), and margin/cost improvements (OpEx ex‑SBC down ~5% YTD and ~4% in Q2, ~$30M y/y operating expense improvement, sales acquisition costs down ~10%, truck rolls/service calls down >20%, programming costs down >14%). On capital structure they reiterated no 2026 maturities (next material maturities begin in 2027), weighted average cost of debt 6.8%, weighted life 2.8 years, ~81% fixed rate, leverage ~8x last‑2‑quarters annualized EBITDA, and noted cash/restricted balances including ~$880M in restricted/UnSub silos, $90M at Lightpath and $300M used in the $300M tender repurchase (120M Class A at $2.50), with ~273M shares outstanding post‑tender.Optimum Communications Inc Class A Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
12
Very Negative
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.38B | 8.59B | 8.95B | 9.24B | 9.65B | 10.09B |
| Gross Profit | 5.45B | 4.26B | 6.06B | 4.56B | 4.67B | 6.71B |
| EBITDA | 297.64M | 1.56B | 3.35B | 3.46B | 3.67B | 4.36B |
| Net Income | -4.87B | -1.87B | -102.92M | 53.20M | 194.56M | 990.31M |
Balance Sheet | ||||||
| Total Assets | 28.08B | 30.70B | 31.70B | 31.92B | 33.66B | 33.22B |
| Cash, Cash Equivalents and Short-Term Investments | 1.30B | 1.12B | 256.53M | 302.06M | 305.48M | 195.71M |
| Total Debt | 26.78B | 26.50B | 25.31B | 25.34B | 26.85B | 26.78B |
| Total Liabilities | 33.59B | 33.00B | 32.16B | 32.36B | 34.17B | 34.09B |
| Stockholders Equity | -5.55B | -2.31B | -469.24M | -422.18M | -475.21M | -819.79M |
Cash Flow | ||||||
| Free Cash Flow | -208.60M | -118.84M | 149.39M | 121.59M | 452.62M | 1.62B |
| Operating Cash Flow | 1.03B | 1.23B | 1.58B | 1.83B | 2.37B | 2.85B |
| Investing Cash Flow | -1.17B | -1.29B | -1.46B | -1.71B | -1.92B | -1.57B |
| Financing Cash Flow | 1.26B | 949.36M | -171.98M | -122.59M | -335.91M | -1.36B |
Optimum Communications Inc Class A Technical Analysis
Neutral
1.67
Price Trends
1.07
Negative
1.15
Negative
1.45
Negative
Market Momentum
-0.07
Negative
44.48
Neutral
51.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPTU, the sentiment is Neutral. The current price of 1.67 is above the 20-day moving average (MA) of 0.82, above the 50-day MA of 1.07, and above the 200-day MA of 1.45, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 44.48 is Neutral, neither overbought nor oversold. The STOCH value of 51.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $91.02B | 8.27 | 12.04% | 5.92% | 0.58% | -48.94% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $21.10B | 3.85 | 30.43% | ― | -1.50% | 4.45% | |
50 Neutral | $6.58B | -6.15 | -52.11% | ― | -7.74% | 13.54% | |
43 Neutral | $315.29M | -0.08 | 127.36% | ― | -4.36% | -1695.11% | |
43 Neutral | $192.29M | -0.18 | -89.91% | ― | -6.54% | -108.97% |
* Communication Services Sector Average
OPTU
Optimum Communications Inc Class A
0.83
-1.47
-63.78%
LUMN
Lumen Technologies
6.29
1.98
45.94%
CHTR
Charter Communications
150.22
-118.78
-44.16%
CMCSA
Comcast
25.47
-3.96
-13.46%
CABO
Cable ONE
33.61
-114.04
-77.24%
Optimum Communications Inc Class A Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Optimum Communications Adds New $250 Million Term Loan
Positive
Jul 6, 2026
On July 6, 2026, Cablevision Litchfield and CSC Optimum, both indirect subsidiaries of Optimum Communications Inc., entered into a Second Amended and Restated Credit Agreement that adds an incremental term loan commitment of $250 million. The new ...
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...
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.