Optimum Communications, Inc. Q1 FY2026 earnings call

• Priorities: improve broadband trends, maintain financial discipline, invest for long-term value creation. • In first quarter, took steps to advance priorities. Total revenue $2.1B, adjusted EBITDA $789M. Broadband had 64,000 net losses (56,000 excluding adjustment). Mobile had 52,000 line net ads. Video churn improved over 400 basis points. • Operationally focused on improving subscriber base stability. Adjusting go-to-market approach. Simplifying go-to-market model for entry pricing. Focused on providing value, strengthening loyalty, etc. • Convergence momentum: customers with both broadband and mobile have lower churn and higher lifetime value. Introduced convergence ARPU as metric. • On costs: disciplined, optimizing direct costs and operating expenses, investing in AI and automation. • Network: focused on building fiber, selling fiber, migrating customers. LightPath had over 8% revenue growth and almost 10% adjusted EBITDA growth. • Go-to-market and base strategies: easier for customers to understand value, clearer upsell pathways, proactive base management. • Video: simplified tiers, adoption increased. New tiers have 20% churn improvement. Enhancing merchandise, integrating broadband and streaming.

Total revenue was $2.1 billion. Adjusted EBITDA was $789 million. Broadband subscriber net losses totaled 64,000 in the quarter or 56,000 excluding a subscriber adjustment. Mobile had 52,000 line net ads, its strongest quarter in past six years. Video churn improved by over 400 basis points year over year on an annualized basis. Broadband revenue contribution: total revenue is $2.1B, mobile and video also contribute. Mobile delivered 52,000 line net ads, video has churn improvement.

• Total revenue expected to decline mid-single digits in full year 2026. • Adjusted EBITDA expected to decline low to mid-single digits in full year. • Anticipate total capital expenditures in 2026 in range of $1.2 to $1.5 billion. • Broadband ARPU and convergence ARPU expected to decline year-over-year for full year.

• Intense competitive environment impacting revenue and subscriber trends. • Uncertainty around broadband subscriber losses and market dynamics. • Risks related to execution of strategic priorities and ability to stabilize subscriber base.

Q: Give more color on overlap of fixed wireless in territory and West, and video strategy.

A: Fixed wireless overlap high, product portfolio provides value. Video strategy reimagined, new tiers have 20% churn benefit.

Q: Targeting improvement in broadband subscriber trends, EBITDA decline, cost reduction.

A: Objective to get back to broadband growth, EBITDA decline managed, focused on gross margin and cost management.

Q: Mobile penetration, profitability, free cash flow.

A: Mobile penetration near 9%, margins improving, free cash flow influenced by interest costs.

Q: EBITDA decline, I-24 sale, ARPU.

A: EBITDA reflects revenue pressure, I-24 deal closed, ARPU decline due to volume pressures.

Q: Balance sheet cash, debt refinance.

A: $1.3B liquidity, focused on right capital structure.

Q: Long-term broadband price levels.

A: Focus on converged ARPU, balance between pricing and value.

Q: Micro market turnaround, long-term earnings power.

A: Seeing improvements in some markets, controlling what can be controlled for EBITDA.