second quarter 2026
Filed Aug 6, 2026Optimum Reports Second Quarter 2026 Results
Revenue declined, customer relationships and broadband PSUs fell, and net loss and free cash flow deteriorated, while gross margin and Adjusted EBITDA margin expanded and mobile revenue and line additions grew.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $ 2,023,703 (in thousands) | – | -5.8% year over year |
| Residential revenueGAAP | $ 1,537,598 (in thousands) | – | -6.7% year over year |
| Business services and wholesale revenueGAAP | $ 366,286 (in thousands) | – | – |
| News and Advertising revenueGAAP | $ 99,978 (in thousands) | – | – |
| Other revenueGAAP | $ 19,841 (in thousands) | – | – |
| Programming and other direct costsGAAP | $ 587,654 (in thousands) | – | – |
| Other operating expensesGAAP | $ 655,956 (in thousands) | – | – |
| Restructuring, impairments and other operating itemsGAAP | $ 206,968 (in thousands) | – | – |
| Depreciation and amortizationGAAP | $ 407,076 (in thousands) | – | – |
| Operating incomeGAAP | $ 166,049 (in thousands) | – | – |
| Interest expense, netGAAP | ($ 475,576) (in thousands) | – | – |
| Gain (loss) on investments and sale of affiliate interestsGAAP | ($ 10,958) (in thousands) | – | – |
| Net loss attributable to stockholdersGAAP | ($291.8) million | – | – |
| Net loss per share on a diluted basisGAAP | ($0.67)/share | – | – |
| Net loss margin attributable to stockholdersGAAP | -14.4% | – | – |
| Gross marginother | 71.0% | – | expanded by 180 basis points year over year |
| Adjusted EBITDAnon-GAAP | $785.7 million | – | -2.2% year over year |
| Adjusted EBITDA marginnon-GAAP | 38.8% | – | expanded by 140 basis points year over year |
| Net cash flows from operating activitiesGAAP | $228.1 million | – | -44.6% year over year |
| Cash capital expendituresother | $320.0 million | – | -16.6% year over year |
| Capital intensityother | 15.8% | – | – |
| Free Cash Flow (deficit)non-GAAP | ($91.9) million | – | – |
| Residential average revenue per user (ARPU)other | $132.22 | – | -1.1% year over year |
| Convergence ARPUother | $79.80 | – | +2.4% year over year |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| BroadbandTotal broadband primary service units (PSUs) net losses of -40k in Q2 2026, which benefited from a bulk agreement, compared to -35k in Q2 2025. | $ 840,919 (in thousands) | – | – |
| VideoResidential video ARPU grew +1.4% year over year, partially offsetting video volume declines in revenue. | $ 587,830 (in thousands) | – | – |
| TelephonyTelephony net additions (losses) were (43.5) (in thousands) in Q2-26. | $ 56,296 (in thousands) | – | – |
| MobileMobile line net additions of +50k in Q2 2026, representing the strongest second quarter performance. | $ 52,553 (in thousands) | – | 40% year over year |
| Business services and wholesaleDemand for Lightpath's AI-grade infrastructure continues to be strong. | $ 366,286 (in thousands) | – | – |
| News and AdvertisingNo segment-specific driver was provided. | $ 99,978 (in thousands) | – | – |
| OtherNo segment-specific driver was provided. | $ 19,841 (in thousands) | – | – |
Capital returns
- In July 2026, CSC II completed its tender offer to purchase shares of Class A common stock from unaffiliated stockholders at a purchase price of $2.50 per share.
- CSC II accepted for purchase 120 million shares for an aggregate purchase price of $300 million, excluding fees and expenses related to the tender offer.
- Such purchased common shares were not canceled.
- As of June 30, 2026, Optimum Communications had 392,560,390 combined shares of Class A and Class B common stock outstanding.
What drove it
- Year-to-date Q2 2026 Operating Expense, excluding share-based compensation, improved by -5%, supported by lower truck rolls and call volumes, lower sales acquisition costs, and workforce optimization.
- Total mobile lines were 724.0 (in thousands), and mobile line net additions were 49.9 (in thousands) in Q2-26.
- Total mobile penetration of the broadband base reached 8.9% at the end of Q2 2026, compared to 6.9% in Q2 2025.
- 53% of the residential broadband customer base took 1 Gig or higher speeds at the end of Q2 2026, up from 38% in Q2 2025.
- Newer tiered video packages reached 18% penetration of the residential video base at the end of Q2 2026, up from 10% in Q2 2025.
- Added +68k total new passings in Q2 2026 and +223k total new passings in the last twelve months.
- At the end of Q2 2026, approximately 97% of the total footprint had 1 Gig or higher speeds available.
- FTTH Total Customer Relationships were 748.9 (in thousands) in Q2-26, and FTTH Total Customer Net Additions were 19.8 (in thousands).
Concerns
- Total customer net additions (losses) were (46.1) (in thousands) in Q2-26, compared with (43.6) (in thousands) in Q2-25 and (69.5) (in thousands) in Q1-26.
- Residential broadband net additions (losses) were (35.3) (in thousands) in Q2-26, compared with (35.0) (in thousands) in Q2-25.
- Residential video net additions (losses) were (44.1) (in thousands) in Q2-26, and residential telephony net additions (losses) were (43.5) (in thousands).
- Total revenue declined -5.8% year over year and residential revenue declined -6.7% year over year.
- Free Cash Flow (deficit) was ($91.9) million, compared to $28.4 million in Q2 2025.
- Consolidated net leverage was 8.0x L2QA, while CSC Holdings, LLC Restricted Group net leverage was 22.8x L2QA.
What to watch
- Broadband primary service unit trends after Q2 2026 net losses of -40k that benefited from a bulk agreement.
- Execution of simpler offers, pricing and packaging enhancements, data-driven base management, and proactive customer engagement.
- Mobile growth following +50k line net additions and 40% year-over-year residential mobile service revenue growth.
- Margin effects from cost discipline and migration to newer tiered video packages.
- Cash flow and leverage following the $300 million Preferred Units private placement and the $300 million July 2026 tender offer.
Balance sheet and cash flow
- Consolidated net debt for Optimum Communications was $25,333 million, representing consolidated net leverage of 8.0x L2QA.
- The weighted average cost of debt for consolidated Optimum Communications was 6.8% and the weighted average life of debt was 2.8 years.
- Net debt for CSC Holdings, LLC Restricted Group was $21,775 million, representing net leverage of 22.8x L2QA.
- Consolidated net debt for Cablevision Litchfield, LLC and CSC Optimum Holdings, LLC was $2,317 million, representing consolidated net leverage of 1.2x L2QA.
- Consolidated net debt for Lightpath was $1,570 million, representing net leverage of 5.5x L2QA.
- On May 29, 2026, CSC II completed a private placement of newly issued Series A Preferred Units for an aggregate purchase price of $300 million.
- Dividends on the Preferred Units accrue at 13.0% per year if paid in cash or 15.0% per year if compounded, and the rate may increase by 2.0% per year during certain triggering events.
- In a private exchange transaction completed on May 29, 2026, CSC II issued additional Preferred Units with an aggregate initial stated value of $212.5 million in exchange for shares of Optimum Class A and Class B common stock.
Analysis
Optimum reported Q2 2026 total revenue of $2.02 billion, down -5.8% year over year, with residential revenue of $1.54 billion, down -6.7% year over year. The revenue table showed declines in broadband, video, telephony, and News and Advertising revenue versus the prior-year quarter, while mobile revenue increased to $ 52,553 (in thousands) from $ 37,621 (in thousands) and business services and wholesale revenue increased to $ 366,286 (in thousands) from $ 361,788 (in thousands). Residential ARPU was $132.22, down -1.1% year over year, whereas convergence ARPU was $79.80, up +2.4% year over year.
Customer trends remained negative, although the company highlighted sequential improvement in broadband. Total customer net additions (losses) were (46.1) (in thousands), including residential broadband net additions (losses) of (35.3) (in thousands). The stated total broadband PSU net loss was -40k and benefited from a bulk agreement. Video and telephony losses continued, but mobile added 49.9 (in thousands) lines, ending with 724.0 (in thousands) mobile lines. Residential mobile service revenue grew 40% year over year to $53 million, and mobile penetration reached 8.9% of the broadband base.
Profitability showed the benefit of cost actions. Gross margin was 71.0%, expanding by 180 basis points year over year, and Adjusted EBITDA margin was 38.8%, expanding by 140 basis points year over year. Adjusted EBITDA was $785.7 million, down -2.2% year over year. The company cited lower truck rolls and call volumes, lower sales acquisition costs, and workforce optimization as support for a -5% year-to-date improvement in operating expense excluding share-based compensation. GAAP operating income declined to $ 166,049 (in thousands) from $ 311,123 (in thousands), while net loss attributable to stockholders widened to ($291.8) million from ($96.3) million.
Cash generation weakened in the quarter. Net cash flows from operating activities were $228.1 million, down -44.6% year over year, and Free Cash Flow (deficit) was ($91.9) million compared with $28.4 million in Q2 2025. Cash capital expenditures were $320.0 million, down -16.6% year over year, with capital intensity of 15.8%. The company continued to expand the network, adding +68k total new passings, while 97% of the total footprint had 1 Gig or higher speeds available.
The balance sheet remains central to the reported period. Consolidated net debt was $25,333 million and consolidated net leverage was 8.0x L2QA as of June 30, 2026. CSC II raised $300 million through a private placement of Series A Preferred Units in May and then completed a July tender offer that purchased 120 million Class A shares for $300 million. The Preferred Units carry dividends accruing at 13.0% per year if paid in cash or 15.0% per year if compounded. No forward financial guidance was provided in the supplied release text.
Management, verbatim
Our second quarter results reflect disciplined execution across every part of our business.
Dennis Mathew, Optimum Chairman and Chief Executive Officer
We are sharpening our go-to-market approach, deepening customer relationships through convergence, and transforming the customer experience to support stronger broadband performance over time.
Dennis Mathew, Optimum Chairman and Chief Executive Officer
At the same time, we continue to take deliberate steps to strengthen our financial foundation, which remains a top priority as we position the business for long-term success.
Dennis Mathew, Optimum Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Forward revenue, margin, operating expense, tax rate, capital expenditure, subscriber, or other financial guidance was not provided in the supplied release text.
- Previous-period outlook was not provided, so no comparison with prior guidance is available.
- Cash and cash equivalents balance was not provided in the supplied release text.
- Common-stock dividends and common-stock repurchases were not reported in the supplied release text.
- GAAP gross profit and GAAP gross margin reconciliation were not provided in the supplied release text.
- The supplied financial-statement text is truncated after the line beginning "Gain (loss) on interest rate swap contracts,"; subsequent income statement, balance sheet, and cash-flow statement line items are unavailable.
- Prior-year and prior-quarter values for Adjusted EBITDA, Adjusted EBITDA margin, gross margin, operating cash flow, cash capital expenditures, and capital intensity were not printed on their own line in the supplied text.
- Quarter-over-quarter percentage changes for revenue, profitability, cash flow, capital expenditures, and customer metrics were not printed.
- A separately reported GAAP net income line beyond the reported net loss attributable to stockholders was not available in the supplied text.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.