--- title: "Optimum Communications | 8-K: FY2026 Q1 Revenue Misses Estimate at USD 2.065 B" type: "News" locale: "en" url: "https://longbridge.com/en/news/285541423.md" datetime: "2026-05-07T11:31:52.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285541423.md) - [en](https://longbridge.com/en/news/285541423.md) - [zh-HK](https://longbridge.com/zh-HK/news/285541423.md) --- # Optimum Communications | 8-K: FY2026 Q1 Revenue Misses Estimate at USD 2.065 B Revenue: As of FY2026 Q1, the actual value is USD 2.065 B, missing the estimate of USD 2.071 B. EPS: As of FY2026 Q1, the actual value is USD -6.1, missing the estimate of USD -0.1399. EBIT: As of FY2026 Q1, the actual value is USD -1.902 B. #### Revenue - Total revenue was $2.07 billion in Q1 2026, representing a -4.0% year-over-year decrease. - Residential revenue was $1.56 billion in Q1 2026, marking a -6.5% year-over-year decrease. - Residential mobile service revenue grew 35% year-over-year to $50 million in Q1 2026, up from $37 million in Q1 2025. #### Profitability - Net loss attributable to stockholders was - $2,884.1 million in Q1 2026, or - $6.10 per share on a diluted basis, which includes a non-cash impairment charge of $2.7 billion related to indefinite-lived cable franchise rights. - This compares to a net loss of - $75.7 million, or - $0.16 per share, in Q1 2025. - Adjusted EBITDA was $789.0 million in Q1 2026, a -1.3% year-over-year decrease. - Adjusted EBITDA margin was 38.2% in Q1 2026, an expansion of 110 basis points year-over-year. - Gross margin was 69.4% in Q1 2026, an expansion of 60 basis points year-over-year. - Video gross margin expanded by approximately 1,000 basis points in Q1 2026 compared to Q1 2023. - Operating income was - $2,360.089 million in Q1 2026, compared to $343.458 million in Q1 2025. #### Cash Flow - Net cash flows from operating activities were $170.3 million in Q1 2026, a -9.2% year-over-year decrease. - Cash capital expenditures were $307.7 million in Q1 2026, a -13.6% year-over-year decrease. - Capital intensity was 14.9% in Q1 2026. - Free Cash Flow (deficit) was - $137.4 million in Q1 2026, compared to - $168.6 million in Q1 2025. #### Operational Metrics ##### Subscribers and Customer Relationships - Total broadband subscribers ended Q1 2026 at 4.1 million. - Total broadband primary service units (PSUs) net losses were -64k in Q1 2026, which includes an adjustment related to prior periods of 8k, compared to -37k in Q1 2025. - Mobile line net additions were +52k in Q1 2026, representing the strongest quarterly performance in six years. - Total mobile lines reached 674k. - Residential mobile penetration of the broadband base was 8.8% at the end of Q1 2026, up from 6.3% in Q1 2025. - Residential broadband customer base on 1 Gig or higher speeds was 47% at the end of Q1 2026, up from 21% in Q1 2023. - New tiered video packages penetration was 17% of the residential video base at the end of Q1 2026, up from 6% in Q1 2025. - Annualized video churn improved by approximately 690 basis points year-over-year in Q1 2026. - Residential customer relationships were 3,897.0 thousand in Q1 2026. - SMB customer relationships were 367.1 thousand in Q1 2026. - Total unique customer relationships were 4,264.1 thousand in Q1 2026. - Residential net additions (losses) were -66.8 thousand in Q1 2026. - Business services net additions (losses) were -2.8 thousand in Q1 2026. - Total customer net additions (losses) were -69.5 thousand in Q1 2026. - Residential Broadband PSUs were 3,749.6 thousand in Q1 2026. - Residential Video PSUs were 1,570.7 thousand in Q1 2026. - Residential Telephony PSUs were 994.9 thousand in Q1 2026. - SMB Broadband PSUs were 339.7 thousand in Q1 2026. - SMB Video PSUs were 70.4 thousand in Q1 2026. - SMB Telephony PSUs were 179.2 thousand in Q1 2026. ##### Average Revenue Per User (ARPU) - Residential ARPU was $132.32 in Q1 2026, a -1.2% year-over-year decrease. - Convergence ARPU was $79.32 in Q1 2026, a +1.2% year-over-year increase. - Residential video ARPU grew +3.7% year-over-year. ##### Network and Infrastructure - Total new passings added were +38k in Q1 2026 and +190k in the last twelve months (LTM). - The footprint with 1 Gig or higher speeds available was approximately 96% at the end of Q1 2026. - Capital is being deployed to support previously announced $362 million of total contract value of AI-driven awards for Lightpath expansion. - FTTH Total Passings were 3,121.6 thousand in Q1 2026. - FTTH Total Passing additions were 25.6 thousand in Q1 2026. - FTTH Residential customer relationships were 706.7 thousand in Q1 2026. - FTTH SMB customer relationships were 22.4 thousand in Q1 2026. - FTTH Total Customer Relationships were 729.1 thousand in Q1 2026. - FTTH Residential net additions were 12.0 thousand in Q1 2026. - FTTH SMB net additions were 1.2 thousand in Q1 2026. - FTTH Total Customer Net Additions were 13.2 thousand in Q1 2026. #### Balance Sheet and Debt - Consolidated net debt for Optimum Communications, Inc. was $25,488 million as of March 31, 2026. - Consolidated net leverage was 7.5x L2QA. - The weighted average cost of debt for consolidated Optimum Communications, Inc. was 6.8%. - The weighted average life of debt for consolidated Optimum Communications, Inc. was 3.1 years. - As of March 31, 2026, Optimum Communications, Inc. had 476,283,057 combined shares of Class A and Class B common stock outstanding. #### Outlook / Guidance Optimum Communications, Inc. is focused on building a more resilient business by strengthening broadband trends, maintaining financial discipline, and investing for long-term value creation. 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