Optimum Communications (OPTU) Q1 2025 earnings summary

Executive summary

• Achieved record fiber net additions of 69,000 in Q1 2025, surpassing 600,000 fiber customers and reaching 20% fiber penetration, with broadband net losses improving sequentially to 37,000.

• Mobile lines grew by 49,000, exceeding 500,000, with mobile service revenue up 47% year-over-year and lowest churn in three years.

• Revenue declined 4.4% year-over-year to $2.15–$2.2 billion, with Adjusted EBITDA down 5.6% to $799 million and net loss widening to $75.7 million.

• Gross margin reached 68.8%, an all-time high, aided by optimized programming agreements and lowest churn in three years.

• Embedded AI and digital tools across operations, including a new Google Cloud partnership, and launched new low-price broadband offers and value-added services.

Financial highlights

• Q1 2025 total revenue was $2.15–$2.2 billion, down 4.4% year-over-year, with residential revenue declining 5.7% to $1.7 billion.

• Adjusted EBITDA was $799 million, down 5.6% year-over-year, with a margin of 37.1%.

• Free Cash Flow was negative $168.6–$169 million, primarily due to higher cash interest payments and increased capital expenditures.

• Residential ARPU declined 1.3% year-over-year to $133.93, while broadband ARPU grew 2.4% to $75.31.

• Capital expenditures increased to $356 million, focused on network infrastructure and customer premise equipment.

Outlook and guidance

• Full-year 2025 revenue expected between $8.6 billion and $8.7 billion, with Adjusted EBITDA guidance at approximately $3.4 billion.

• Programming and other direct costs and other operating expenses each projected at $2.6 billion; capital expenditures expected to be $1.2 billion.

• Targeting 1 million fiber customers by year-end 2026 and 1 million mobile lines by year-end 2027.

• Ongoing investments in FTTH and network upgrades are expected to drive future growth.