Summary of OPTU Q1 2026 Earnings Call

1Key Financial Results and Metrics

Total Revenue: $2.1 billion, a decline of 4% year-over-year.

Adjusted EBITDA: $789 million, down 1.3% year-over-year, with a margin expansion to 38.2%.

Broadband Subscribers: Net loss of 64,000 subscribers (56,000 excluding adjustments), totaling 4.1 million.

Mobile Subscribers: Strong growth with 52,000 net adds, the best quarterly performance in 6 years, bringing total mobile lines to 674,000.

Video Subscribers: Net loss of 51,000, showing improved trends from the previous year.

Liquidity: Ended the quarter with $1.3 billion, providing operational flexibility.

ARPU: Residential ARPU decreased by 1.2% to $132.32; convergence ARPU grew by 1.2% to $79.32.

2Strategic Updates and Business Highlights

Priorities for 2026: Focus on improving broadband trends, maintaining financial discipline, and investing for long-term value creation.

Competitive Response: Simplifying pricing and product offerings to enhance competitiveness in a challenging market.

Convergence Strategy: Emphasizing bundled services (broadband and mobile) to reduce churn and enhance customer lifetime value.

Operational Efficiency: Continued investment in AI and automation to reduce costs and improve service efficiency.

Video Strategy: Introduction of simplified video tiers leading to improved retention and profitability.

3Forward Guidance and Outlook

Revenue Expectations: Anticipate mid-single-digit revenue decline for the full year 2026, primarily due to ongoing pressure in residential video.

Adjusted EBITDA: Expected to decline low to mid-single digits for the full year.

Subscriber Trends: Aiming for stabilization in broadband subscriber losses, with ongoing adjustments to pricing and service offerings.

Capital Expenditures: Projected between $1.2 billion to $1.5 billion for 2026, focusing on growth and maintenance.

4Challenges and Points of Concern

Competitive Pressures: Intense competition from fixed wireless and fiber providers, especially in the West, impacting subscriber growth and pricing.

Subscriber Losses: Continued net losses in broadband and video subscribers, indicating challenges in customer retention.

ARPU Pressure: Expected declines in both broadband and convergence ARPU as the company prioritizes volume stabilization over immediate revenue growth.

Debt Management: High leverage ratio at 7.5x adjusted EBITDA, with upcoming maturities requiring proactive management of the capital structure.

5Notable Q&A Insights

Fixed Wireless Competition: Approximately 85% overlap with competitors in the East and 80% in the West, indicating significant market pressure.

Broadband Subscriber Strategy: Aiming to improve subscriber trends through enhanced pricing strategies and product offerings, despite Q1 losses being worse than the previous year.

Mobile Profitability: While mobile penetration is at 9%, the company is focused on scaling this segment to enhance overall EBITDA.

Long-term ARPU Expectations: No specific dollar targets provided, but emphasis on convergence ARPU as a key metric for evaluating business performance.

Market-Level Insights: Some micro-market improvements noted, suggesting potential for broader portfolio stabilization if successful strategies are extrapolated. This summary encapsulates the key financial metrics, strategic initiatives, outlook, challenges, and insights from the Q&A, providing a comprehensive overview of Optimum Communications' performance and direction for Q1 2026.