Optimum Q4 Earnings Miss Estimates, Revenues Decline Y/Y

Optimum Communications, Inc. OPTU reported mixed fourth-quarter 2025 results, with the top line beating the Zack Consensus Estimate but the bottom line missing the same. The company witnessed revenue contraction year over year, owing to weak demand trends in the Residential segment. However, growth in mobile line and fiber customer net additions, focus on network upgrades, improved customer care and financial discipline were the positives.

Net Income

Optimum reported a net loss of $71.2 million or a loss of 15 cents per share compared to a net loss of $54.1 million or 12 cents per share in the prior-year quarter. Loss on extinguishment of debt and higher interest expenses impacted the bottom line. Adjusted earnings per share came at a loss of 3 cents per share, missing the Zacks Consensus Estimate by 2 cents.

For 2025, the company reported a net loss of $1.86 billion or a loss of $4 per share compared to a net loss of $102.9 million or 22 cents per share in 2024.

Revenues

Total revenues in the quarter were $2.18, down 2.3% year over year. Despite declining net sales from broadband and video customers, the top line beat the consensus estimate of $2.14 billion. The company’s is steadily expanding its AI grade digital connectivity infrastructure.

In 2025, the company generated a revenue of $8.6 billion down 4.1% year over year.

The company made progress in its growth strategies by accelerating network enhancement and customer experience. At the quarter-end, Optimum had 3.09 billion FTTH (Fiber to the Home) passings, about 43,000 of which were added during the quarter. FTTH broadband net additions were more than 12,500 in the quarter. Total fiber broadband customers reached 715,900 by the end of the quarter. Residential average revenue per user (ARPU) declined to $134.49 from $133.95 a year ago.

Business services and Wholesale revenues increased $401.8 million from the year-ago quarter’s tally of $371.3 million. News and Advertising revenues decreased to $144.7 million from the year-ago quarter’s $157.5 million. Residential revenues (which include Broadband, Video and Telephony) were $1.61 billion, down from $1.68 billion in the year-earlier quarter. This was primarily due to the loss of higher ARPU video customers.

Other Quarterly Details

The company reported an operating income of $397.6 million compared to $340.6 million in the year-ago quarter. Adjusted EBITDA was $902.1 million compared with $837.5 million in the prior-year quarter. Its mobile line net add was 38,000 during the quarter. Optimum’s total passings grew more than 65,200 and reached 10 million at the end of the fourth quarter of 2025.

Cash Flow & Liquidity

In the fourth quarter, Optimum generated $481.56 million of cash from operating activities compared with $439.92 million a year ago. For 2025, the company generated $1.22 billion cash in 2025, down 22.4% year over year. As of Dec. 31, 2025, the company’s net debt was $25.29 billion.

Zacks Rank

OPTU currently has a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Universal Display OLED is scheduled to release fourth-quarter 2025 earnings on Feb. 19. The Zacks Consensus Estimate for earnings is pegged at $1.28 per share, suggesting growth of 4.92% from the year-ago reported figure.

Universal Display has a long-term earnings growth expectation of 6.61%. Universal Display delivered an average earnings surprise of 9.25% in the last four reported quarters. 

Keysight Technologies, Inc. KEYS is scheduled to release first-quarter fiscal 2026 earnings on Feb. 23. The Zacks Consensus Estimate for earnings is pegged at $1.99 per share, suggesting growth of 9.34% from the year-ago reported figure.

Keysight has a long-term earnings growth expectation of 13.32%. Keysight delivered an average earnings surprise of 4.24% in the last four reported quarters.

Akamai Technologies, Inc. AKAM is slated to release fourth-quarter 2025 earnings on Feb. 19. The Zacks Consensus Estimate for earnings is pegged at $1.75 per share, indicating 5.42% growth from the year-ago reported figure.

Akamai has a long-term earnings growth expectation of 5.96%. Akamai delivered an average earnings surprise of 10.46% in the last four reported quarters.

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This article originally published on Zacks Investment Research (zacks.com).

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