Liquidity is under pressure as free cash flow margins deteriorated to negative 6.7% in 2026Q1, driven by high capital intensity and erratic working capital outflows of $110.8 million.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Cash from Operations | 1.21B | 1.23B | 1.58B | 1.83B | 2.37B | 2.85B | 2.98B | 2.98B | 2.51B | 2.02B | 1.18B | 1.26B | 1.38B | 1.37B | 1.49B |
| Operating CF Margin % | - | 14.3% | 17.67% | 19.77% | 24.53% | 28.28% | 30.12% | 30.53% | 26.22% | 21.69% | 19.68% | 19.32% | 21.31% | 21.92% | 24.29% |
| Operating CF Growth % | -31.61% | -22.37% | -13.36% | -22.84% | -17.07% | -4.23% | 0% | 18.81% | 24.28% | 70.39% | -5.82% | -8.68% | 0.82% | -8.28% | - |
| Net Income | -4.68B | -1.87B | -78.28M | 53.2M | 220.89M | 1.01B | 443.48M | 443.48M | 20.59M | 1.49B | -831.48M | 175.45M | 311.44M | 465.66M | 233.52M |
| Depreciation & Amortization | 1.7B | 1.72B | 1.64B | 1.69B | 1.77B | 1.79B | 2.08B | 2.08B | 2.38B | 2.93B | 1.7B | 865.25M | 860.25M | 860.69M | 892.48M |
| Stock-Based Compensation | 48.64M | 64.09M | 67.16M | 47.93M | 159.99M | 98.3M | 125.09M | 99.08M | 59.81M | 57.43M | 14.37M | 65.29M | 43.98M | 52.72M | 60.7M |
| Deferred Taxes | -161.75M | 0 | -396.05M | -226.91M | 36.38M | 40.7M | 75.51M | 75.51M | -67.6M | -2.88B | -263.99M | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 4.54B | 1.44B | 169.49M | 300.82M | 447.87M | 263.48M | 345.86M | 371.87M | 249.5M | 716.33M | 127.14M | 135.27M | 196.75M | -11.22M | 363.23M |
| Working Capital Changes | -244.18M | -128.6M | 177.85M | -39.04M | -271.9M | -346.49M | -93.14M | -93.14M | -136.32M | -300.69M | 438.11M | 16.34M | -35.35M | -1.97M | -76.95M |
| Change in Receivables | -75.57M | -72.32M | -58.92M | -77.7M | -45.28M | -30.38M | -50.75M | -50.75M | -144.08M | -89.68M | -58.76M | -24.76M | -42.45M | -25.67M | -76.95M |
| Change in Inventory | 0 | 0 | 0 | 0 | -46.72M | 0 | 0 | 33.11M | -88.17M | -262.88M | 457.5M | 0 | 0 | 0 | 0 |
| Change in Payables | -215.17M | 0 | 3.88M | -39.26M | 46.72M | 0 | 0 | -33.11M | 12.46M | 73.89M | -11.81M | 0 | 0 | 0 | 0 |
| Cash from Investing | -1.23B | -1.29B | -1.46B | -1.71B | -1.92B | -1.57B | -1.22B | -1.22B | -1.15B | -1.09B | -9.6B | -827.83M | -881.98M | -302.47M | -1.08B |
| Capital Expenditures | -1.3B | -1.35B | -1.43B | -1.7B | -1.91B | -1.23B | -1.07B | -1.07B | -1.15B | -953.06M | -9.6B | -816.4M | -891.68M | -951.68M | -991.59M |
| CapEx % of Revenue | 15.28% | 15.68% | 16% | 18.46% | 19.84% | 12.21% | 10.85% | 11% | 12.06% | 10.24% | 159.53% | 12.54% | 13.8% | 15.27% | 16.17% |
| Acquisitions | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 64.6M | 61.11M | 16.03M | -1.71M | -5.17M | -1.44M | 3.5M | 3.5M | -1.14B | -943.31M | -619.76M | -11.44M | 9.7M | 649.21M | -85.16M |
| Cash from Financing | 856.66M | 949.36M | -171.98M | -122.59M | -335.91M | -1.36B | -2.18B | -2.18B | -1.39B | -1.1B | 131.42M | -276.9M | -346.9M | -693.79M | -669.19M |
| Debt Issued (Net) | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 0 | -804.93M | -4.82B | -1.69B | -500M | 349.07M | 0 | -19.14M | -6.61M | -12.91M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.5B | -919.32M | -365.56M | -125.17M | -160.54M | -159.71M | -163.87M |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | -804.93M | -4.82B | -1.69B | -500M | 0 | 0 | -19.14M | -6.61M | -12.91M | -208.43M |
| Other Financing | -215.72M | -221.79M | -36.15M | -24.19M | -8.4M | -11.54M | 853.57M | -1.58B | -53.33M | -7.8M | 1.04B | 14.97M | 40.4M | -47.84M | -505.32M |
| Net Change in Cash | -257.57M | 884.62M | -45.51M | -3.41M | 109.78M | -82.71M | -423.47M | -423.47M | -31.06M | -172.99M | -8.28B | 152.87M | 148.19M | 369.61M | -256.69M |
| Free Cash Flow | -88.26M | -118.84M | 149.39M | 121.59M | 452.62M | 1.62B | 1.91B | 1.91B | 1.35B | 1.07B | -8.41B | 441.21M | 485.39M | 414.2M | 497.65M |
| FCF Margin % | -1.04% | -1.38% | 1.67% | 1.32% | 4.69% | 16.08% | 19.27% | 19.53% | 14.15% | 11.45% | -139.85% | 6.78% | 7.51% | 6.65% | 8.12% |
| FCF Growth % | -6.57% | -179.55% | 22.87% | -73.14% | -72.1% | -14.89% | 0% | 40.77% | 27.13% | 112.66% | -2007.24% | -9.1% | 17.19% | -16.77% | - |
| FCF per Share | -0.19 | -0.25 | 0.32 | 0.27 | 1.00 | 3.51 | 3.27 | 2.88 | 1.85 | 1.53 | -11.42 | 1.60 | 1.79 | 1.56 | 1.86 |
| FCF Conversion (FCF/Net Income) | 0.02x | -0.66x | -15.38x | 34.33x | 12.17x | 2.88x | 6.83x | 21.45x | 133.19x | 1.35x | -1.42x | 6.69x | 4.46x | 10.73x | 20.06x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Unsustainable Debt Service Burden
As reported in financial statements, OPTU's operating cash flow consistently dwarfs its net income, with the 2026Q1 net loss of $2.9 billion contrasting sharply against $170.3 million in operating cash, suggesting that non-cash charges are the primary driver of the company's reported bottom-line volatility.
The massive divergence between net income and operating cash flow indicates that headline earnings are heavily distorted by non-cash items, likely depreciation and amortization related to the legacy network. Investors should interpret this as a sign that the company's accounting profitability is currently decoupled from its ability to generate actual cash from operations.
Based on recent quarterly filings, OPTU's free cash flow trajectory has turned increasingly volatile, shifting from a positive 9.1% margin in 2025Q4 to a negative 6.7% in 2026Q1, reflecting the difficulty of maintaining positive cash generation amidst ongoing revenue contraction and high capital intensity.
The inability to sustain positive free cash flow suggests that the company's current operational model is struggling to cover both its maintenance requirements and the necessary investments for network modernization. This trend warrants close monitoring, as persistent negative free cash flow will inevitably necessitate further reliance on external financing.
According to the provided data, OPTU maintains a high capital intensity, with CapEx as a percentage of revenue reaching 14.9% in 2026Q1, which underscores the significant financial burden of upgrading legacy infrastructure to fiber-to-the-home technology in a competitive telecommunications landscape.
The high level of capital expenditure relative to revenue suggests that the company is locked into a cycle of mandatory investment to defend its market position. This capital intensity appears to be a structural constraint that limits the company's flexibility to address its debt obligations during periods of revenue decline.
As evidenced by the quarterly cash flow data, working capital changes have been highly erratic, swinging from a $346.9 million inflow in 2024Q4 to a $110.8 million outflow in 2026Q1, which suggests inconsistent efficiency in managing receivables and payables across the company's diverse service segments.
This volatility in working capital suggests that the company may be utilizing aggressive payables management or experiencing lumpy collection cycles to manage its short-term liquidity. Such fluctuations make it difficult to forecast normalized cash flow and may indicate underlying stress in the company's operational cash cycle.
Based on the ten-quarter trend, the persistent gap between cumulative net losses and positive operating cash flow highlights a structural disconnect, as the company continues to report significant accounting losses while struggling to generate sufficient cash to meaningfully reduce its leverage or fund long-term growth.
The long-term divergence between accounting results and cash generation suggests that the company's business model may be fundamentally challenged by its cost structure. This gap warrants further investigation into whether the current level of depreciation is sufficient to reflect the true economic obsolescence of the legacy network assets.
Quick answers to the most common questions about buying OPTU stock.
Optimum Communications, Inc. (OPTU) generated $1.23B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Optimum Communications, Inc. (OPTU) reported negative free cash flow of $118.8M in 2025, indicating capital requirements exceeded cash from operations.
Optimum Communications, Inc. (OPTU) spent $1.35B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.