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Optimum Communications Inc Class A
(NYSE:OPTU)
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Rating:42Neutral
Price Target:
$0.68
▼(-37.22% Downside)
Action:Reiterated
Date:10/22/26
The score is held down primarily by deteriorating financial performance and a highly constrained balance sheet (high debt, negative equity, and negative recent free cash flow). Technicals also remain bearish with the stock in a strong downtrend. Earnings-call takeaways show improving margins and cost execution, but ongoing revenue/EBITDA declines and very high leverage limit upside, while valuation provides only modest support given losses and no dividend yield provided.
Positive Factors
Margin Expansion
Record gross margin and higher adjusted EBITDA margin show that product mix and execution are improving profitability despite lower revenue. If these gains persist, they can strengthen operating resilience, support reinvestment in network growth, and improve the company’s ability to absorb competitive pressure.
Negative Factors
Severe Leverage and Balance-Sheet Pressure
Very high leverage materially limits financial flexibility and leaves less capacity to fund network investment or withstand operating volatility. Management’s reference to a required balance-sheet reset and consensual restructuring signals that debt reduction remains a central, durable risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Expansion
Record gross margin and higher adjusted EBITDA margin show that product mix and execution are improving profitability despite lower revenue. If these gains persist, they can strengthen operating resilience, support reinvestment in network growth, and improve the company’s ability to absorb competitive pressure.
Read all positive factors
Optimum Communications Inc Class A (OPTU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$269.48M
Dividend Yield11.54%
Average Volume (3M)1.94M
Price to Earnings (P/E)―
Beta (1Y)0.12
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. Volume1,776,728
30 Day Avg. Volume1,936,249
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 Cap98.77
Enterprise Value/Revenue3.18
Enterprise Value/Gross Profit4.88
Enterprise Value/Ebitda89.43
Forecast
1Y Price Target
$1.05Price Target Upside-2.78% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering8
EPS Forecast (FY)-8.16
Revenue Forecast (FY)$8.10B
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 | 3.63B | 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
Negative
1.08
Price Trends
0.96
Negative
1.02
Negative
1.22
Negative
Market Momentum
-0.04
Positive
31.39
Neutral
15.55
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 1.08 is above the 20-day moving average (MA) of 0.94, above the 50-day MA of 0.96, and below the 200-day MA of 1.22, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 31.39 is Neutral, neither overbought nor oversold. The STOCH value of 15.55 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 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 | $79.35B | 7.17 | 12.04% | 5.78% | 0.58% | -48.94% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
54 Neutral | $19.38B | 2.75 | 30.43% | ― | -1.50% | 4.45% | |
54 Neutral | $3.57B | 7.80 | 8.65% | 31.38% | -73.81% | ― | |
49 Neutral | $561.40M | -12.05 | -4.77% | 1.13% | 5.01% | -23.53% | |
42 Neutral | $269.48M | -0.07 | 127.36% | 11.54% | -4.36% | -1695.11% | |
41 Neutral | $35.24M | -0.03 | -89.91% | 4.07% | -6.54% | -108.97% |
* Communication Services Sector Average
OPTU
Optimum Communications Inc Class A
0.60
-1.57
-72.35%
CHTR
Charter Communications
111.77
-132.15
-54.18%
CMCSA
Comcast
22.84
-3.21
-12.33%
SHEN
Shenandoah Telecommunications Co
10.30
-2.34
-18.54%
CABO
Cable ONE
5.61
-153.02
-96.46%
TDS
Telephone & Data Systems
34.78
-3.53
-9.23%
Optimum Communications Inc Class A Corporate Events
Delistings and Listing ChangesRegulatory Filings and Compliance
Optimum Communications Faces NYSE Non-Compliance Cure Period
Negative
Aug 14, 2026
On August 13, 2026, Optimum Communications, Inc. received a notice from the New York Stock Exchange stating that the company is not in compliance with the NYSE’s minimum price requirement because the average closing price of its Class A comm...
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.