Optimum shrinks to survive: debt restructuring, market exits, fiber bets
Revenue and profit still shrinking as subscribers leave Optimum told investors second-quarter revenue fell on broadband subscriber losses, and it expects full-year 2026 revenue to decline mid-single digits and profit (adjusted EBITDA) low-to-mid single digits. It is also exiting low-density markets, cutting 48,000 homes passed. A smaller business means less money coming in, which weighs on the stock.
This is the core fundamental problem driving the stock: the business is still shrinking.
Debt restructuring and buyback reshape the company Optimum is negotiating with lenders to restructure CSC Holdings debt maturing in 2027, and it bought back $300 million of stock (120 million Class A shares) via a tender at $2.50. The buyback gave some investors a profitable exit, but the debt talks signal real financial strain and possible losses for shareholders.
The debt restructuring is the biggest force hanging over the stock, and the buyback is how control is being consolidated.
T-Mobile and content deals support mobile and TV Optimum expanded its multi-year T-Mobile agreement into wearables, connected devices and advanced 5G, aiming to grow its mobile business. It also renewed and expanded its A+E Global Media channel deal, avoiding blackouts that push TV customers to cancel. These partnerships help slow subscriber losses.
These deals are the main positive offsets to subscriber decline, supporting mobile growth and reducing churn.
Fiber and network upgrades continue in local markets Optimum announced a $14 million fiber build in East Brunswick and South River, New Jersey, plus upgrades in Lake Charles, Louisiana, offering speeds up to 2 Gbps. These investments aim to win and keep broadband customers, but they are small next to the company's overall decline and cost money upfront.
Fiber investment is the company's main growth bet, though its small scale limits near-term impact.