The core business is shrinking with declining revenue and broadband subscriber losses, while the balance sheet is deteriorating with net leverage rising to 8.0x. The $300M tender offer at $2.50/share and $300M preferred issuance at 13% are distress signals. Monitor for further covenant pressure or restructuring at the CSC Holdings Restricted Group, which carries 22.8x net leverage.
Price Chart
Executive Summary
Optimum Communications reported Q2 2026 results with total revenue of $2.02B (-5.8% YoY), a GAAP net loss of ($0.67)/share, and Adjusted EBITDA of $785.7M (-2.2% YoY). Revenue missed the $2.04B consensus and the GAAP EPS loss of ($0.67) was far worse than the Street consensus of ($0.17), driven by a $207M restructuring/impairment charge and a $476M interest expense. While margins expanded (Adjusted EBITDA margin +140bps YoY to 38.8%) and mobile subscriber growth remained strong (+50k net adds), the core business continues to shrink with broadband subscriber losses (-40k), declining revenue, and negative free cash flow, while consolidated net leverage rose to 8.0x L2QA from 7.5x in Q1 2026, signaling increasing financial strain.
Key Financial Metrics
Key Facts
- Total revenue of $2.02B in Q2 2026, down 5.8% year over year from $2.15B.
- GAAP net loss attributable to stockholders of ($291.8) million, or ($0.67) per diluted share, compared to a loss of ($96.3) million, or ($0.21) per share, in Q2 2025.
- Adjusted EBITDA of $785.7 million (-2.2% YoY), with margin expanding 140 bps to 38.8%.
- Free Cash Flow deficit of ($91.9) million in Q2 2026, compared to positive $28.4 million in Q2 2025.
- Broadband PSU net losses of -40k in Q2 2026, compared to -35k in Q2 2025.
- Consolidated net leverage increased to 8.0x L2QA as of June 30, 2026, from 7.5x as of March 31, 2026.
- Completed a $300M private placement of 13% preferred units and a $300M tender offer for 120M common shares at $2.50/share.
Financial Impact
Revenue declined 5.8% YoY to $2.02B; GAAP EPS loss of ($0.67) vs consensus ($0.17); FCF swung from +$28.4M to -$91.9M YoY
Risk Factors
- Continued revenue and subscriber declines in core broadband business
- Elevated net leverage of 8.0x consolidated (22.8x at CSC Holdings Restricted Group) increases refinancing risk
- Negative free cash flow of ($91.9)M in the quarter despite cost-cutting
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001702780-26-000042 |
| Document: optu-20260806.htm | 0001702780-26-000042 |
| Document: 0001702780-26-000042-index-headers.html | 0001702780-26-000042 |
| Document: 0001702780-26-000042-index.html | 0001702780-26-000042 |
| Document: 0001702780-26-000042.txt | 0001702780-26-000042 |
| 8-K Data (Synthetic) | 0001702780-26-000042 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 today | SC 13G/A | $0.7500 | awaiting T+1 | — | $0.6075 (−19.00%) |
Oct 9, 2026 18d ago | 3 | $0.9690 $0.9389 | ▼ −3.11% | ▼ −3.09% | $0.6075 (−37.31%) |
Oct 9, 2026 18d ago | 3/A | $0.9690 $0.9390 | ▼ −3.10% | ▼ −3.08% | $0.6075 (−37.31%) |
Sep 21, 2026 5w ago | 8-K | $1.13 $1.02 | ▲ +9.73% | ▲ +9.01% | $0.6075 (+46.24%) |
Aug 6, 2026 11w ago | 8-K | $0.8045 $0.7689 | ▲ +4.43% | ▲ +5.04% | $0.6075 (+24.49%) |
Jun 11, 2026 19w ago | Institutional Cluster | $1.25 $1.29 | ▲ +3.20% | ▲ +2.66% | $0.6075 (−51.40%) |
Jun 1, 2026 21w ago | 8-K | $1.16 $1.06 | ▲ +8.62% | ▲ +8.77% | $0.6075 (+47.63%) |
Apr 30, 2026 25w ago | DEFA14A | $1.60 $1.50 | ▼ −6.25% | ▼ −5.91% | $0.6075 (−62.03%) |
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