Key Highlights

  • Optimum Communications (NYSE:OPTU), formerly Altice USA, appears on the aggressive small cap screen with a one-year EPS change of 360.23% and a Market Value of about USD 233 million, at USD 0.61 in the November 13 snapshot.
  • Third quarter Revenue fell about 5.1% to USD 2.0 billion, and the net loss reached about USD 2.88 billion, or USD 10.24 per share, after a USD 3.2 billion non-cash Franchise impairment.
  • The company disclosed substantial doubt about its ability to continue as a going concern, with about USD 4.1 billion of Debt due in April 2027 and USD 2.2 billion in July 2027.
  • Management is pursuing a restructuring or refinancing of debt at its CSC Holdings unit, which carries about USD 21.8 billion of borrowings, and has formed a special board committee.

What the Latest Filing Shows

Optimum Communications, the cable and broadband operator previously known as Altice USA, filed its third quarter report on November 6 without holding an earnings call. Revenue fell to about USD 2.0 billion from USD 2.11 billion a year earlier, and nine-month revenue fell to about USD 6.09 billion from USD 6.41 billion. The decline reflects continuing broadband customer losses to fibre and fixed wireless competitors; in the second quarter the company lost about 40,000 broadband customers, while mobile lines grew to about 724,000. The net loss attributable to stockholders was about USD 2.88 billion, or USD 10.24 per share, against USD 2.55 a year earlier, driven by a USD 3.2 billion non-cash Impairment of cable franchise rights. Including earlier impairments, write-downs this year total about USD 5.9 billion. Second quarter adjusted EBITDA was about USD 785.7 million, down 2.2%, which shows the Business still generates substantial operating cash despite the losses.

Why the Screen Figure Is Wrong

The screen shows a one-year EPS change of 360.23%, but Optimum's losses have grown sharply this year, with nine-month EPS of minus USD 13.38 against minus USD 2.92. The figure is therefore a data artefact and should be disregarded. The central issue is debt. Net debt was about USD 25.3 billion at the end of the second quarter, many times the market value shown on the screen. In the quarterly filing, management said substantial doubt exists about the company's ability to continue as a Going Concern because about USD 4.1 billion of debt matures in April 2027 and about USD 2.2 billion in July 2027, and it is pursuing a restructuring or refinancing with no assurance of success. Cash was about USD 1.1 billion at September 30. The company has also restated earlier results, reducing previously reported losses for the first quarter of 2026 and for 2025, which adds to uncertainty around its accounting.

What Shareholders Face

The Equity sits behind a very large debt stack, so any restructuring is likely to favour creditors. Since June, the company has been working on a transaction involving about USD 21.8 billion of CSC Holdings debt, and in late October it expanded its board and formed a special committee, a common step before a negotiated deal with lenders. Options could include debt exchanges at a discount, Maturity extensions, asset sales or a court supervised process, and each could dilute or eliminate existing shareholders. The fibre business Lightpath has its own financing, including notes due 2031, which separates it from the main Credit group. The stock trades near the bottom of its 52-week range of USD 0.48 to USD 2.14 and below USD 1, which also raises listing compliance questions. Investors should watch for a restructuring support agreement, creditor negotiations and any updates on broadband subscriber trends.

Where Things Stand

Optimum Communications (NYSE:OPTU) is a highly leveraged cable operator facing going concern doubt ahead of about USD 6.3 billion of 2027 maturities. The screen's EPS growth is meaningless given rising losses. The outcome of debt talks will decide whether shareholders retain meaningful value.