$OPTU earnings report

This filing is a non-reliance and restatement notice rather than an earnings release. The Audit Committee concluded on September 16, 2026 that the Company's previously issued audited fiscal 2025 financial statements and specified interim financial statements should no longer be relied upon. The affected periods include the fiscal year ended December 31, 2025, and the periods ended September 30, 2025, March 31, 2026 and June 30, 2026.

The issue involves unrecognized non-cash deferred tax benefits associated with two prior non-cash impairment charges of indefinite-lived cable franchise rights. The Company says the errors understated deferred income tax benefits and overstated a related deferred tax liability, with related effects on total liabilities, accumulated deficit, total stockholders' deficiency and net loss. The Company expects the corrections to reduce previously reported net losses by approximately $430 million for the specified 2025 periods and approximately $720 million for the specified 2026 periods.

The filing states that revenues, EBITDA, loss before income taxes, cash balances, capital expenditures and cash flows will not be affected by the restatement. No current-period operating results, segment results, profitability metrics, cash flow amounts, balance-sheet amounts, capital returns or financial outlook were provided. As a result, the filing does not support an assessment of operating demand, revenue mix, margins or capital allocation for a discrete reporting period.

The central investor issue is financial-reporting reliability. Management is assessing the effects on internal control over financial reporting and disclosure controls and procedures, and expects to report a material weakness related to accounting for income taxes during the affected periods. The Company also cautioned that its review is preliminary and unaudited, could change, and could identify additional errors before the restated filings are completed.

The Company intends to amend its Annual Report on Form 10-K for the year ended December 31, 2025, along with the applicable Quarterly Reports on Form 10-Q, as soon as reasonably practicable. Investors should monitor the completed restated filings for finalized tax adjustments, any further changes to the preliminary impacts, and management's remediation plan for the identified control deficiency.

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.