Optimum Communications (OPTU) investor relations material

Executive summary

• Q2 2026 revenue was $2.02 billion, down 5.8%–6% year-over-year, with adjusted EBITDA of $786 million and margin expanding to 38.8%.

• Net loss attributable to stockholders was ($291.8) million, or ($0.67) per diluted share, with a net income margin of -13.9%.

• Gross margin reached a record 71%, up 180 basis points year-over-year.

• Broadband subscriber net losses improved sequentially to 40,000, with 4 million broadband subscribers at quarter-end.

• Mobile lines grew by 50,000, reaching 724,000, a 33%–40% year-over-year increase.

Financial highlights

• Revenue declined 5.8%–6% year-over-year to $2.02B, with residential revenue down 6.7% and business services up 1.2%.

• Adjusted EBITDA declined 2.2% year-over-year, but margin expanded by 140 basis points.

• Residential ARPU declined 1.1% year-over-year to $132.22, while convergence ARPU rose 2.4% to $79.80.

• Cash capital expenditures were $320 million in Q2, down 16.6% year-over-year, representing 15.8% of revenue.

• Free cash flow was negative, with net cash flows from operating activities at $228.1 million and a free cash flow deficit of ($91.9) million.

Outlook and guidance

• Expect total revenue to decline mid-single digits for full year 2026, excluding divestitures.

• Adjusted EBITDA expected to decline low- to mid-single digits for full year 2026.

• Capital expenditures projected between $1.2 billion and $1.5 billion for 2026, with higher spend in the second half.

• Management is prioritizing financial foundation strengthening, operational simplification, and deleveraging.

• Substantial doubt exists about the ability to continue as a going concern due to $6.3B in debt maturing in 2027 and insufficient committed financing.