Optimum Communications reported revenue of $2.07 billion in Q1 2026, down 4 percent from $2.15 billion, as declines in broadband, video and telephony continued to weigh on performance. Residential revenue dropped 6.5 percent to $1.56 billion.
Broadband remained the company’s largest business division, generating $850 million in revenue, followed by video at $602 million, business services and wholesale at $364 million, mobile at $49.5 million, telephony at $58.4 million, and news and advertising at $119.7 million.
Optimum’s residential ARPU declined 1.2 percent to $132.32, while convergence ARPU, combining broadband and mobile services, increased 1.2 percent to $79.32. The company ended Q1 2026 with 4.1 million broadband subscribers after broadband net losses of 64,000 customers. Residential video subscribers declined to 1.57 million, while telephony subscribers fell below 1 million to 994,900.
The company’s broadband strategy focused on simplifying go-to-market operations, improving customer lifetime value, reducing churn, and accelerating convergence between broadband and mobile services. Optimum said 47 percent of broadband users now subscribe to 1 Gig or higher speed tiers, compared with 21 percent three years ago.
Mobile emerged as a key growth engine. Optimum added 51,600 mobile lines during the quarter, its strongest quarterly mobile performance in six years, lifting total mobile lines to 674,100. Residential mobile revenue surged 35 percent to $50 million, while mobile penetration of the broadband base increased to 8.8 percent from 6.3 percent a year earlier.
Fiber broadband expansion also continued. Fiber-to-the-home passings increased to 3.12 million, while total FTTH customer relationships reached 729,100. Optimum added 13,200 FTTH customers in Q1 2026.
Chairman and CEO Dennis Mathew said the company is prioritizing broadband trends, financial discipline and long-term investments while strengthening its convergence strategy. Optimum highlighted increased use of AI-enabled tools and automation to improve workforce productivity, reduce truck rolls and expand margins. The company also said Lightpath is deploying capital to support $362 million in AI-driven contract awards.
Adjusted EBITDA declined 1.3 percent to $789 million, though EBITDA margin improved to 38.2 percent from 37.1 percent due to operating efficiencies and cost discipline. Operating expenses included a non-cash impairment charge of $2.7 billion related to cable franchise rights, contributing to a net loss of $2.88 billion.
Cash capital expenditure fell 13.6 percent to $307.7 million, representing capital intensity of 14.9 percent. Free cash flow deficit improved to $137.4 million from $168.6 million a year earlier.
Optimum ended March 2026 with consolidated net debt of $25.5 billion and net leverage of 7.5x. The company said ongoing refinancing initiatives and capital structure optimization remain strategic priorities.
BABURAJAN KIZHAKEDATH
