Optimum Communications reported revenue of $2.024 billion for the second quarter of 2026, a 5.8 percent decline from $2.147 billion a year earlier, as competitive pressure in broadband weighed on residential revenue.
Residential revenue of Optimum decreased 6.7 percent to $1.538 billion. Business services revenue of Optimum increased 1.2 percent to $366 million. Residential connectivity and other revenue of Optimum declined to $970 million from $1.006 billion. Residential video revenue of Optimum fell to $588 million from $661 million.
Optimum posted a net loss of $291.8 million compared with a net loss of $96.3 million in the second quarter of 2025. Net loss margin was 14.4 percent.
Optimum’s residential ARPU declined 1.1 percent to $132.22 from $133.68 as lower video revenue offset gains in broadband and mobile services.
However, convergence ARPU, which combines broadband and mobile services, increased 2.4 percent to $79.80 from $77.95, highlighting the success of bundled connectivity offerings.
Optimum said residential ARPU excluding video improved to $81.67 from $80.10. Video contribution to residential ARPU declined to $50.55 from $53.58. Residential mobile service revenue surged 40 percent year over year to $53 million from $38 million, supporting higher customer value and retention.
Broadband subscribers totaled 4.0 million, down 5.2 percent from 4.3 million a year earlier after 40,000 net subscriber losses in the quarter.
Video subscribers declined 12.0 percent to 1.6 million, with 46,000 net subscriber losses.
Mobile remained Optimum’s fastest-growing business, adding a record 50,000 net mobile lines during the quarter to reach 724,000 total mobile lines, representing 32.6 percent growth from 546,000 a year earlier. Fiber customers increased 13.0 percent to 749,000, supported by 20,000 quarterly net additions.
The company continued strengthening customer retention through converged broadband and mobile services. Mobile penetration of the broadband customer base increased from 6.9 percent in Q2 2025 to 8.9 percent in Q2 2026. Meanwhile, 53 percent of residential broadband customers subscribed to 1 Gbps or higher broadband speeds at the end of the quarter, compared with 38 percent a year earlier, reflecting continued migration to premium broadband tiers.
Artificial intelligence and digital transformation remained central to Optimum’s operational strategy. The company expanded the use of AI and automation to improve operational efficiency, simplify end-to-end customer journeys, strengthen customer communications and expand digital capabilities for better service and retention. These initiatives reduced sales acquisition costs by approximately 10 percent, lowered workforce costs by around 10 percent, and reduced truck rolls and call volumes by more than 20 percent, contributing to improved operating margins.
Optimum also strengthened its video business through Entertainment TV, Extra TV and Everything TV packages. Penetration of these newer video tiers increased to 18 percent of the residential video base from 10 percent a year earlier. Residential video ARPU increased 1.4 percent, while video gross margin expanded by approximately 1,000 basis points over the past three years, supporting improved customer retention and profitability despite continued declines in legacy video subscribers.
Capital investment remained focused on broadband and fiber infrastructure. Cash capital expenditure declined 16.6 percent to $320 million from $384 million, reducing capital intensity to 15.8 percent from 17.9 percent. During the second quarter, Optimum added 68,000 new network passings, increasing total passings added over the last twelve months to 223,000.
The company’s network footprint now includes 10.1 million total passings, including 3.2 million fiber passings, while approximately 97 percent of its footprint is capable of delivering 1 Gbps or higher broadband speeds. Optimum also reported strong demand for Lightpath’s AI-grade fiber infrastructure, including new fiber deployments supporting hyperscale data center campuses and additional AI infrastructure tenants, reinforcing its long-term strategy of expanding high-capacity digital connectivity.
BABURAJAN KIZHAKEDATH