Optimum Communications (OPTU) investor relations material

Executive summary

• Q1 2026 revenue declined 4% year-over-year to $2.07 billion, with residential revenue at $1.56 billion, down 6.5% year-over-year.

• Net loss was $2.88 billion, driven by a $2.7 billion non-cash impairment charge on cable franchise rights amid a challenging competitive environment.

• Adjusted EBITDA was $789 million, down 1.3% year-over-year, but margin improved to 38.2%, up 110 basis points.

• Mobile segment delivered its strongest quarter in six years with 52,000 net line additions and mobile penetration in the broadband base reaching almost 9%.

• Free cash flow deficit improved to $(137) million from $(169) million year-over-year, mainly due to lower capital expenditures.

Financial highlights

• Revenue was $2.07 billion, down 4% year-over-year, mainly due to a 10% drop in residential video revenue; excluding video, revenues declined 1.6%.

• Adjusted EBITDA was $789 million, down 1.3% year-over-year, with margin expanding to 38.2%.

• Gross margin reached 69.4%, up 60 basis points year-over-year, driven by product mix and cost discipline.

• Residential ARPU was $132.32, down 1.2% year-over-year; convergence ARPU was $79.32, up 1.2%.

• Free cash flow deficit improved to $(137) million, with $170.3 million in operating cash flow and $308 million in capital expenditures.

Outlook and guidance

• Management highlights substantial doubt about the ability to continue as a going concern due to significant near-term debt maturities and insufficient committed financing.

• Expect total revenue to decline mid-single digits for full year 2026, with adjusted EBITDA projected to decline low to mid-single digits.

• CapEx for 2026 expected in the range of $1.0 billion-$1.5 billion, with Lightpath CapEx at $200 million-$300 million.

• Total passing expansion for 2026 projected at 150,000-175,000 additions.

• Continued investment in fiber expansion, network upgrades, and technology to support future growth.