Summary of Optimum's Q4 and Full Year 2025 Earnings Call

1Key Financial Results and Metrics

Q4 Revenue: Approximately $2.2 billion, down 2.3% year-over-year.

Full Year Revenue: Approximately $8.6 billion.

Adjusted EBITDA: Q4 adjusted EBITDA grew nearly 8% year-over-year to just over $900 million, marking the first year-over-year growth in 16 quarters. Adjusted EBITDA margin expanded to over 41%.

Gross Margin: Reached approximately 70%, up 180 basis points year-over-year.

Free Cash Flow: Approximately $200 million in Q4.

Broadband ARPU: Grew 2.8% year-over-year to $76.71, the highest in 14 quarters.

Subscriber Metrics:

Lost 62,000 net broadband subscribers in Q4, totaling 4.2 million.

Video subscribers down 13% year-over-year, with a net loss of 49,000 in Q4.

Mobile lines reached 623,000, up 35% year-over-year.

2Strategic Updates and Business Highlights

Operational Focus: Emphasis on improving customer experience, network quality, and operational efficiencies.

Divestments: Sold non-core assets, including i24NEWS and tower business, to streamline operations.

AI and Automation: Increased use of AI tools for customer service and network operations, resulting in improved efficiency and customer satisfaction.

Fiber Expansion: Added 177,000 new passings in 2025, with a focus on high-return projects and enhanced customer lifetime value.

3Forward Guidance and Outlook

2026 Priorities:

Simplifying product offerings and pricing to enhance customer experience.

Continued focus on broadband growth and customer retention through targeted competitive responses and loyalty programs.

Investments in technology and network upgrades to drive long-term value creation.

Financial Discipline: Maintaining a disciplined approach to capital expenditures and operational costs, with expectations for continued improvement in EBITDA and ARPU.

4Bad News, Challenges, or Points of Concern

Subscriber Losses: Continued net losses in broadband subscribers and video customers, attributed to competitive pressures and a strategic decision to moderate promotional activities.

Competitive Environment: Intense competition with aggressive pricing from rivals, particularly in fiber and mobile services.

Revenue Declines: Video revenue down nearly 10% year-over-year, contributing to overall revenue pressure.

Debt Levels: High leverage ratio of 7.3x adjusted EBITDA, with ongoing discussions about debt reduction strategies.

5Notable Q&A Insights

Broadband Subscriber Trends: Management acknowledged the hyper-competitive landscape affecting subscriber growth and emphasized the need for a disciplined approach to pricing and promotions.

ARPU Expectations: While management is optimistic about maintaining ARPU growth in 2026, they did not provide specific guidance, citing the need for ongoing evaluation.

Programming Costs: Significant reductions in programming costs were highlighted, with a focus on negotiating favorable terms to offset revenue declines in the video segment.

Lightpath Business: Strong performance in the Lightpath segment, with notable growth in AI-driven contracts, although some revenue was characterized as nonrecurring due to project-based nature. Overall, while Optimum made significant strides in operational efficiency and profitability in 2025, challenges remain in subscriber retention and competitive pressures, necessitating a focused strategy moving into 2026.