Optimum Reports Fourth Quarter and Full Year 2025 Results

Optimum Communications, Inc. (NYSE:OPTU) today reports results for the fourth quarter and full year ended December 31, 2025.

Dennis Mathew, Optimum Chairman and Chief Executive Officer, said: "In full year 2025, we achieved the goals we shared in the beginning of the year across revenue, Broadband ARPU, direct costs, operating expense, Adjusted EBITDA excluding i24 News, and capital spend, reflecting our disciplined execution at Optimum. During the quarter, we achieved year over year Adjusted EBITDA growth, driven by moderating revenue declines, higher gross margins, and disciplined expense management. We saw continued momentum across key segments, including Residential and Broadband ARPU growth, improved video trends, as well as momentum in Lightpath and Mobile. While broadband subscriber trends remain under pressure in a highly competitive market, we enter 2026 with a simpler, more competitive approach, featuring streamlined pricing and packaging and a convergence-led go-to-market strategy intended to support improvements in the broadband performance. Looking ahead, this focus on simplification extends across our operations and customer experience, positioning us to execute more efficiently, support performance over time, and support long-term shareholder value."

Fourth Quarter and Full Year 2025 Overview

• Total revenue of $2.18 billion in Q4 2025 (-2.3% year over year) and $8.6 billion in FY 2025 (-4.1% year over year)
• Total broadband primary service units (PSUs) net losses of -62k in Q4 2025, compared to -39k in Q4 2024; Ending Total Broadband Subscribers of 4.2 million
• Net loss attributable to stockholders of ($71.2) million (($0.15)/share on a diluted basis) in Q4 2025, compared to ($54.1) million (($0.12)/share on a diluted basis) in Q4 2024, and ($1,869.0) million (($4.00)/share on a diluted basis) in FY 2025, compared to ($102.9) million (($0.22)/share on a diluted basis) in FY 2024
• Net cash flows from operating activities of $481.6 million (9.5% year over year) in Q4 2025, and $1,228.5 million in FY 2025 (-22.4% year over year)
• Adjusted EBITDA⁽¹⁾ of $902.2 million (7.7% year over year), margin of 41.3% in Q4 2025, and $3,335.6 million (-2.3% year over year), margin of 38.8% in FY 2025
• Cash capital expenditures of $282.1 million (-27.7% year over year), capital intensity⁽²⁾ of 12.9% in Q4 2025 (10.5% excluding FTTH and new build⁽³⁾), and $1,347.3 million (-6.0% year over year), capital intensity⁽²⁾ of 15.7% in FY 2025 (12.1% excluding FTTH and new build⁽³⁾)
• Free Cash Flow (deficit)⁽¹⁾ of $199.4 million in Q4 2025 compared to $49.9 million in Q4 2024, and ($118.8) million in FY 2025 compared to $149.4 million in FY 2024

Fourth Quarter 2025 Key Operational Highlights

• Improved Customer Economics Amid Competitive Environment
  • During the fourth quarter and full year 2025, Optimum Communications, Inc. ("Optimum Communications" or the "Company") continued to operate in a highly competitive market with elevated promotional activity and increased customer price sensitivity. The Company maintained a disciplined approach to pricing, promotions and customer acquisition.
  • In Q4 2025, Broadband ARPU⁽⁴⁾ of $76.71 increased 2.8% year over year. Residential ARPU⁽⁵⁾ of $134.49 increased 0.4% year over year.
• Best Video Trends in Last 5 Years: -49k Video Subscriber Losses
  • Driven by lowest video churn in the last decade and stabilization of video gross add attachment rate, supported by new video tiers launched in 2024.
• Mobile Growth: +38k Mobile Line Net Additions in Q4 2025 and +163k in FY 2025
  • Reached 623k mobile lines, a 35% increase in total mobile lines at the end of FY 2025 compared to the end of FY 2024.
  • Mobile customer penetration of broadband customer base⁽⁶⁾ reached 8.3% at the end of FY 2025, up from 5.7% at the end of FY 2024.
• Fiber Growth: +12k Fiber Customers Net Additions in Q4 2025 and +178k in FY 2025
  • 3.1 million fiber passings at the end of FY 2025, with 23.1% customer penetration of the fiber network, up from 18.2% at the end of FY 2024.
  • Moderated the pace of fiber migrations to balance near-term margins and cash flow with long-term growth objectives.
  • Reached 716k fiber customers, a 33% increase in total fiber customers at the end of FY 2025 compared to the end of FY 2024.
• Expanding and Enhancing Our Networks
  • Added +65k total new passings in Q4 2025 and +177k total new passings in FY 2025
  • Added +43k new fiber passings in Q4 2025 and +134k new fiber passings in FY 2025
  • Lightpath continues to expand in hyperscaler community with $362 million in total contract value awarded over FY 2024 and FY 2025.

2026 Priorities Focused on Simplification to Drive Business Acceleration

• Improve Broadband Trends: Focus on improving broadband subscriber performance through simplified product offerings and a more streamlined pricing structure, as well as a simplified go-to-market strategy focused on convergence and value-added product sell-in to improve customer retention and overall customer value.
• Maintain Financial Discipline: Initiatives focused on strengthening base management and proactive churn reduction, ongoing product margin expansion, and operating efficiency supported by automation and artificial intelligence initiatives aimed to reduce costs and improve productivity.
• Invest for Long Term Value Creation: Continue investment in fiber expansion and targeted network upgrades to support long-term competitiveness, capacity and service quality.

Balance Sheet Review as of December 31, 2025

• Consolidated net debt⁽⁷⁾ for Optimum Communications was $25,290 million, representing consolidated net leverage of 7.3x L2QA⁽⁸⁾
  • The weighted average cost of debt for consolidated Optimum Communications was 6.8%⁽⁹⁾ and the weighted average life of debt was 3.2 years.
• Net debt⁽⁷⁾ for CSC Holdings, LLC Restricted Group was $20,869 million at the end of Q4 2025, representing net leverage of 20.0x L2QA⁽⁸⁾
  • The weighted average cost of debt for CSC Holdings, LLC Restricted Group was 6.6% and the weighted average life of debt was 3.2 years.
• Net debt⁽⁷⁾ for Cablevision Lightpath LLC was $1,473 million at the end of Q4 2025, representing net leverage of 4.6x L2QA⁽⁸⁾
  • The weighted average cost of debt for Cablevision Lightpath LLC was 5.3%⁽⁹⁾ and the weighted average life of debt was 2.1 years.
• Consolidated net debt⁽⁷⁾ for Cablevision Funding LLC was $980 million, representing consolidated net leverage of 2.4x L2QA⁽⁸⁾
  • The weighted average cost of debt for the NYC ABS (as defined below) was 8.9% and the weighted average life of debt was 5.0 years.
• Consolidated net debt⁽⁷⁾ for Cablevision Litchfield, LLC and CSC Optimum Holdings, LLC was $1,999 million, representing consolidated net leverage of 1.2x L2QA⁽⁸⁾
  • The weighted average cost of debt for the UnSub Group (as defined below) was 9.0% and the weighted average life of debt was 2.9 years.

Shares Outstanding

• As of December 31, 2025, Optimum Communications had 470,433,478 combined shares of Class A and Class B common stock outstanding.

Recent Refinancing Activity

• On February 10, 2026, subsidiaries of Cablevision Lightpath LLC priced an ABS transaction which is expected to close in March 2026.  The proceeds of the transaction, as and when consummated, will be used to repay existing Lightpath indebtedness, fund liquidity reserve accounts, pay fees and expenses, and for general corporate purposes.
• On January 12, 2026, Cablevision Litchfield, LLC ("Cablevision Litchfield") and CSC Optimum Holdings, LLC ("CSC Optimum"), each an indirect wholly-owned subsidiary of Optimum Communications, entered into an Amended and Restated Credit Agreement (the "A&R UnSub Credit Agreement"), by and among Cablevision Litchfield and CSC Optimum, each as a borrower, the guarantors party thereto, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent and collateral agent. The A&R UnSub Credit Agreement provides for, among other things, an incremental term loan commitment in an aggregate principal amount of $1.1 billion. The loans made pursuant to this incremental term loan commitment have the same terms as the initial term loans extended pursuant to the UnSub Group Credit Agreement (defined below) including maturity, interest rate and amortization. The proceeds from the loans made pursuant to the incremental term loan commitment were used to (x) refinance all of the outstanding debt under the Receivables Facility Loan and Security Agreement, dated as of July 16, 2025, by and among Cablevision Funding LLC, Cablevision SPE Guarantor LLC, the other loan parties party thereto from time to time (the "NYC ABS"), each of the financial institutions from time to time party thereto as lenders, Alter Domus (US) LLC, as administrative agent, Citibank, N.A., as Account Bank (as defined therein), Citibank, N.A., as collateral agent, and Goldman Sachs Bank USA and TPG Angelo Gordon, as structuring agents and (y) pay certain fees and expenses relating to the foregoing, with any excess proceeds being used for general corporate purposes.
• On November 25, 2025, CSC Holdings, LLC ("CSC Holdings"), an indirect wholly-owned subsidiary of Optimum Communications, entered into a Fourteenth Amendment to Credit Agreement (Incremental Loan Assumption Agreement) ("Fourteenth Amendment"), by and among CSC Holdings, as borrower, the incremental lender party thereto and each of the other loan parties signatory thereto. The Fourteenth Amendment amends and supplements CSC Holdings' credit agreement, dated as of October 9, 2015 (as amended, restated or otherwise modified from time to time, the "CSC Credit Agreement"), by and among CSC Holdings, as borrower, the lenders party thereto from time to time, JPMorgan Chase Bank, N.A., as administrative agent and as security agent, and the other parties thereto from time to time. The Fourteenth Amendment provides for, among other things, new incremental term loan commitments (the "Incremental Term Loan B-7 Commitments") in an aggregate principal amount of $2.0 billion. The proceeds from the loans made pursuant to the Incremental Term Loan B-7 Commitments were used to (i) refinance all of CSC Holdings' outstanding Incremental Term Loan B-6 under the CSC Credit Agreement and (ii) pay certain fees and expenses relating to the foregoing.
• Also on November 25, 2025, following the consummation of the refinancing transaction described above, Cablevision Litchfield and CSC Optimum entered into a Credit Agreement (the "UnSub Group Credit Agreement"), by and among Cablevision Litchfield and CSC Optimum, each as a borrower, the guarantors party thereto (together, the "UnSub Group"), the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent and collateral agent. The UnSub Group Credit Agreement provided for, among other things, initial term loans in an aggregate principal amount of $2.0 billion (the "UnSub Group Term Loans"). The UnSub Group Term Loans (i) mature on November 25, 2028, (ii) accrue interest at a fixed rate per annum equal to 9.000% and (iii) will not amortize. The UnSub Group Term Loans were used to repay in full the Incremental Term Loan B-7 under the CSC Credit Agreement.

Reconciliation of Non-GAAP Financial Measures

We define Adjusted EBITDA, which is a non-GAAP financial measure, as net income (loss) excluding income taxes, non-operating income or expenses, gain (loss) on extinguishment of debt and write-off of deferred financing costs, gain (loss) on interest rate swap contracts, gain (loss) on derivative contracts, gain (loss) on investments and sale of affiliate interests, interest expense, net, depreciation and amortization, share-based compensation, restructuring, impairments and other operating items (such as significant legal settlements and contractual payments for terminated employees). We define Adjusted EBITDA margin as Adjusted EBITDA divided by total revenue.

Adjusted EBITDA eliminates the significant non-cash depreciation and amortization expense that results from the capital-intensive nature of our business and from intangible assets recognized from acquisitions, as well as certain non-cash and other operating items that affect the period-to-period comparability of our operating performance. In addition, Adjusted EBITDA is unaffected by our capital and tax structures and by our investment activities.

We believe Adjusted EBITDA is an appropriate measure for evaluating our operating performance. Adjusted EBITDA and similar measures with similar titles are common performance measures used by investors, analysts and peers to compare performance in our industry. Internally, we use revenue and Adjusted EBITDA measures as important indicators of our business performance and evaluate management's effectiveness with specific reference to these indicators. We believe Adjusted EBITDA provides management and investors a useful measure for period-to-period comparisons of our core business and operating results by excluding items that are not comparable across reporting periods or that do not otherwise relate to our ongoing operating results. Adjusted EBITDA should be viewed as a supplement to and not a substitute for operating income (loss), net income (loss), and other measures of performance presented in accordance with U.S. generally accepted accounting principles ("GAAP"). Since Adjusted EBITDA is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with similar titles used by other companies.

We also use Free Cash Flow (defined as net cash flows from operating activities less cash capital expenditures) as a liquidity measure. We believe this measure is useful to investors in evaluating our ability to service our debt and make continuing investments with internally generated funds, although it may not be directly comparable to similar measures reported by other companies.

Certain numerical information is presented on a rounded basis. Minor differences in totals and percentage calculations may exist due to rounding.

About Optimum Communications

Optimum Communications, Inc. (NYSE:OPTU) is one of the largest broadband communications and video services providers in the United States, delivering broadband, video, mobile, proprietary content and advertising services to approximately 4.3 million residential and business customers across 21 states through its Optimum brand. We operate Optimum Media, an advanced advertising and data business, which provides audience-based, multiscreen advertising solutions to local, regional and national businesses and advertising clients. We also operate News 12, which is focused on delivering best-in-class hyperlocal news content.

FORWARD-LOOKING STATEMENTS

Certain statements in this earnings release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this earnings release, including, without limitation, those regarding our intentions, beliefs or current expectations concerning, among other things, our future financial condition, liquidity, capital structure and results of operations; our strategy, objectives, prospects and trends; our 2026 priorities, including, among other things: improving broadband trends (including simplifying packaging and pricing and improving convergence and value-added product sell-in), maintaining financial discipline (including base management, product margin expansion, workforce evolution and our AI and automation capabilities) and investing for long-term value creation (including fiber expansion, network upgrades and investment in technology and tools); our capital structure, refinancing activities and transformation plans (including our ability to realize the anticipated benefits of financing and strategic transactions); our expectations regarding macroeconomic conditions, consumer demand, subscriber and market share trends and competitive dynamics, as well as other future events and developments; our go-to-market strategies; our ability to achieve targets for revenue, broadband ARPU, programming and other direct costs, other operating expense, Adjusted EBITDA, cash capital expenditures and passings additions; network enhancements (including our hyperscaler expansion opportunities); our pricing and rate management strategies and the anticipated benefits thereof; our rebranding and related initiatives and the expected benefits thereof; assumptions regarding impairment assessments and future asset valuations; and future developments in the markets in which we participate or are seeking to participate. These forward-looking statements can be identified by the use of forward-looking terminology, including without limitation the terms "anticipate", "believe", "could", "estimate", "expect", "forecast", "intend", "may", "opportunity", "plan", "project", "should", "target", "outlook", or "will" or, in each case, their negative, or other variations or comparable terminology. Where, in any forward-looking statement, we express an expectation or belief as to future results or events, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. To the extent that statements in this earnings release are not recitations of historical fact, such statements constitute forward-looking statements, which, by definition, involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements including risks referred to in our SEC filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2025. You are cautioned to not place undue reliance on Optimum Communications' forward-looking statements. Any forward-looking statement speaks only as of the date on which it was made. Optimum Communications specifically disclaims any obligation to publicly update or revise any forward-looking statement, as of any future date.

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