Optimum's Restructuring Items Swell and Operating Loss Widens

The Tip Desk · November 12, 2026 · 3 min read

Third-quarter revenue was $2.00 billion, down 5% from a year earlier, as restructuring, impairments and other operating items reached $3.43 billion.

Optimum Communications (OPTU) reported revenue of $2.00 billion for the three months ended September 30, 2026, down 5% from $2.11 billion a year earlier. Restructuring, impairments and other operating items were $3.43 billion, producing an operating loss of $3.06 billion.

The cable operator, which markets broadband, video, telephony and mobile services under the Optimum brand across 21 states, posted a net loss of $2.86 billion, or $2.88 billion attributable to stockholders. Adjusted EBITDA was $773.7 million.

Residential revenue was $1.51 billion. Broadband revenue fell 6% to $824.6 million. The company said the decline was due primarily to fewer broadband customers and lower average recurring broadband revenue per subscriber. Video revenue declined 11% to $571.8 million, which the company attributed primarily to fewer video customers, partially offset by higher average recurring video revenue per customer from certain rate increases. Telephony revenue decreased 11% to $54.8 million.

Mobile service revenue increased 34% to $56.8 million, which the company said was primarily due to more mobile lines and higher certain fees and surcharges. Total mobile lines were 779.2 thousand at September 30, 2026, including 29.3 thousand business lines.

Business services and wholesale revenue rose 4% to $375.5 million, primarily from Ethernet, indefeasible right of use and other fees and surcharges at Lightpath, partially offset by a decline in small and medium-sized business customers. News and advertising revenue fell 12% to $93.4 million, primarily due to the May 2026 sale of a non-core advertising agency business, partially offset by higher political advertising. Other revenue increased 31% to $23.1 million, primarily from higher mobile equipment sales.

Programming and other direct costs decreased 8% to $589.3 million. The company said the decrease was primarily from lower video customers, net of contractual rate increases, lower i24 news production costs after the sale, and lower media advertising resale costs after the advertising-agency sale. Other operating expenses were $645.1 million. Depreciation and amortization was $394.3 million. Interest expense, net was $479.9 million.

Customer relationships declined to 4.16 million at September 30, 2026, from 4.22 million at June 30, 2026. Residential customers fell to 3.80 million. Residential broadband customers were 3.66 million, video customers 1.47 million and telephony customers 906.0 thousand. Penetration of total passings was 41.2%. Average revenue per user was $131.37.

FTTH customer relationships rose to 764.2 thousand, with FTTH penetration of passings at 24.1%. FTTH passings were 3.18 million. Total passings were 10.10 million.

Free cash flow deficit widened to $267.9 million from $178.1 million a year earlier, as operating cash flow fell to $79.2 million and capital expenditures rose to $347.0 million. The company said it continues to invest in its FTTH network, HFC mid-split upgrades and mobile offering, and that it may incur greater than anticipated capital expenditures.

The company said it expects contractual programming rates to increase in the future.