Key Highlights

  • Adjusted EBITDA margin rose to 38.8%, up 140 basis points year over year.
  • Second-quarter revenue fell 5.8% to $2,023.7 million.
  • Total broadband net losses were 40,000 in the quarter.
  • Consolidated net debt was $25,333 million, with net leverage of 8.0 times.

Optimum Communications, Inc. (NYSE:OPTU) is showing a pattern that can confuse readers: profitability measures are improving while the top line shrinks. In its second quarter 2026 results, the cable and broadband company reported adjusted EBITDA margin of 38.8%, up 140 basis points from a year earlier, even though revenue fell 5.8% to $2,023.7 million. The question for investors is whether cost control can keep offsetting customer and price pressure.

Margin Gains, Subscriber Losses

Adjusted EBITDA was $785.7 million, down 2.2% year on year, so profit fell by less than revenue. The customer picture was softer: total broadband net losses were 40,000 in the quarter, made up of 35,300 residential and 4,300 small business lines, with the company saying the result benefited from a bulk agreement. Residential average revenue per user was $132.22, down 1.1%. Mobile lines grew by 49,900 to 724,000, and total passings rose by 68,200 to 10.1 million. On October 13, 2026, shares traded near $0.94, implying a market value of about $369 million.

Debt Narrows the Margin for Error

Margin gains usually come from lower programming, labour or marketing costs, but they have limits if the customer base keeps shrinking. Optimum's debt makes the equation tighter: consolidated net debt was $25,333 million and net leverage was 8.0 times, with $1,296 million of cash. Mobile is the main growth lever because it can reduce customer churn when bundled with broadband, yet the lines added so far remain small relative to 4.2 million customer relationships. The release did not give 2026 guidance.

Discipline Against Commercial Pressure

Optimum's second quarter shows operational discipline alongside commercial pressure. A 38.8% margin is a positive sign that costs are being managed, but revenue, broadband subscribers and average revenue per user are all moving the wrong way, and 8.0 times leverage leaves limited room for error ahead of the third-quarter report, estimated for November 5.