Revenue growth remains in a structural decline, evidenced by a 4.0% year-over-year contraction in 2026Q1 alongside a sharp compression in gross margins to 49.8%.
| 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 |
|---|
| Sales/Revenue | 8.5B | 8.59B | 8.95B | 9.24B | 9.65B | 10.09B | 9.89B | 9.76B | 9.57B | 9.31B | 6.02B | 6.51B | 6.46B | 6.23B | 6.13B |
| Revenue Growth % | -3.98% | -4.06% | -3.06% | -4.26% | -4.39% | 1.98% | 1.37% | 2.03% | 2.79% | 54.67% | -7.57% | 0.76% | 3.67% | 1.64% | - |
| Cost of Goods Sold | 3B | 4.33B | 2.9B | 4.67B | 4.98B | 3.38B | 3.34B | 3.3B | 3.17B | 3.04B | 1.91B | 3.2B | 3.14B | 3.08B | 2.94B |
| COGS % of Revenue | - | 50.45% | 32.35% | 50.6% | 51.61% | 33.52% | 33.76% | 33.81% | 33.17% | 32.62% | 31.76% | 49.13% | 48.6% | 49.41% | 48.02% |
| Gross Profit | 5.5B | 4.26B | 6.06B | 4.56B | 4.67B | 6.71B | 6.55B | 6.46B | 6.39B | 6.27B | 4.11B | 3.31B | 3.32B | 3.15B | 3.19B |
| Gross Margin % | 64.67% | 49.55% | 67.65% | 49.4% | 48.39% | 66.48% | 66.24% | 66.19% | 66.83% | 67.38% | 68.24% | 50.87% | 51.4% | 50.59% | 51.98% |
| Gross Profit Growth % | - | -29.74% | 32.76% | -2.26% | -30.41% | 2.36% | 1.45% | 1.04% | 1.95% | 52.74% | 23.99% | -0.29% | 5.34% | -1.08% | - |
| Operating Expenses | 5.59B | 2.68B | 4.38B | 2.65B | 2.74B | 4.18B | 4.44B | 4.64B | 4.71B | 5.43B | 3.64B | 2.38B | 2.32B | 2.36B | 2.4B |
| OpEx % of Revenue | - | 31.22% | 48.89% | 28.65% | 28.35% | 41.46% | 44.86% | 47.5% | 49.25% | 58.35% | 60.55% | 36.62% | 35.91% | 37.86% | 39.13% |
| Selling, General & Admin | 869.94M | 2.68B | 263.53M | 2.65B | 2.74B | 0 | 0 | 233.33M | 249.8M | 235.98M | 138.43M | 1.57B | 1.53B | 1.52B | 1.44B |
| SG&A % of Revenue | - | 31.22% | 2.94% | 28.65% | 28.35% | - | - | 2.39% | 2.61% | 2.54% | 2.3% | 24.15% | 23.76% | 24.41% | 23.47% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | -88.48M | 1.57B | 1.68B | 1.92B | 1.93B | 2.52B | 2.12B | 1.82B | 1.68B | 841.01M | 462.81M | 874.18M | 926.08M | 771.23M | 854.48M |
| Operating Margin % | -1.04% | 18.33% | 18.76% | 20.75% | 20.03% | 25.02% | 21.38% | 18.68% | 17.59% | 9.04% | 7.69% | 13.43% | 14.33% | 12.38% | 13.94% |
| Operating Income Growth % | - | -6.28% | -12.34% | -0.84% | -23.44% | 19.35% | 15.98% | 8.41% | 100.04% | 81.72% | -47.06% | -5.6% | 20.08% | -9.74% | - |
| EBITDA | 1.6B | 3.27B | 3.32B | 3.61B | 3.75B | 4.31B | 4.2B | 4.09B | 4.06B | 3.77B | 2.16B | 1.74B | 1.79B | 1.63B | 1.75B |
| EBITDA Margin % | 18.77% | 38.08% | 37.1% | 39.05% | 38.88% | 42.73% | 42.43% | 41.87% | 42.49% | 40.52% | 35.95% | 26.72% | 27.65% | 26.19% | 28.49% |
| EBITDA Growth % | -51.66% | -1.53% | -7.89% | -3.83% | -13.01% | 2.69% | 2.73% | 0.55% | 7.77% | 74.36% | 24.36% | -2.62% | 9.46% | -6.59% | - |
| D&A (Non-Cash Add-back) | 1.68B | 1.7B | 1.64B | 1.69B | 1.82B | 1.79B | 2.08B | 2.26B | 2.38B | 2.93B | 1.7B | 865.25M | 860.25M | 860.69M | 892.48M |
| EBIT | 1.6B | 1.57B | 1.7B | 1.77B | 1.85B | 2.57B | 1.94B | 1.9B | 1.71B | 981.55M | 700.29M | 874.18M | 926.08M | 771.23M | 854.48M |
| Net Interest Income | -1.82B | -1.79B | -1.76B | -1.64B | -1.33B | -1.27B | -1.35B | -1.53B | -1.55B | -1.6B | -1.44B | -584.84M | -575.58M | -600.64M | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 160K | 2.19M | 5.71M | 10.86M | 1.92M | 13.81M | 584.84M | 575.58M | 600.64M | 661.9M |
| Interest Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | -4.76B | -1.93B | -82.35M | 118.56M | 516.73M | 1.31B | 583.23M | 187.13M | -18.06M | -1.37B | -1.09B | 342.66M | 425.15M | 192.96M | 126.32M |
| Pretax Margin % | -56.03% | -22.47% | -0.92% | 1.28% | 5.36% | 12.94% | 5.89% | 1.92% | -0.19% | -14.69% | -18.13% | 5.26% | 6.58% | 3.1% | 2.06% |
| Income Tax | -126.05M | -96.91M | -4.07M | 39.53M | 295.84M | 294.98M | 139.75M | 47.19M | -38.66M | -2.86B | -259.67M | 154.87M | 115.77M | 65.64M | 51.99M |
| Effective Tax Rate % | 2.65% | 5.02% | 4.94% | 33.34% | 57.25% | 22.59% | 23.96% | 25.22% | 214.02% | 209.3% | 23.8% | 45.2% | 27.23% | 34.01% | 41.16% |
| Net Income | -4.68B | -1.87B | -102.92M | 53.2M | 194.56M | 990.31M | 436.18M | 138.94M | 18.83M | 1.49B | -832.03M | 187.99M | 308.62M | 127.34M | 74.23M |
| Net Margin % | -55.01% | -21.76% | -1.15% | 0.58% | 2.02% | 9.81% | 4.41% | 1.42% | 0.2% | 16.04% | -13.83% | 2.89% | 4.78% | 2.04% | 1.21% |
| Net Income Growth % | -2871.66% | -1716.03% | -293.46% | -72.66% | -80.35% | 127.04% | 213.95% | 637.73% | -98.74% | 279.46% | -542.59% | -39.09% | 142.35% | 71.54% | - |
| Net Income (Continuing) | -4.64B | -1.83B | -78.28M | 79.04M | 220.89M | 1.01B | 443.48M | 139.94M | 20.59M | 1.49B | -831.48M | 187.79M | 309.38M | 127.33M | 74.23M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -12.54M | 2.82M | 338.32M | 0 |
| Minority Interest | 29.02M | 21.93M | 12.4M | -12.24M | -28.7M | -51.11M | -62.11M | 9.3M | 9.29M | 1.54M | 287K | -268K | 9.46M | 10.08M | 13.16M |
| EPS (Diluted) | -9.90 | -4.00 | -0.22 | 0.12 | 0.43 | 2.14 | 0.75 | 0.21 | 0.03 | 2.15 | -1.28 | 0.68 | 1.14 | 0.48 | 0.28 |
| EPS Growth % | -2792.51% | -1718.18% | -283.33% | -72.09% | -79.91% | 185.33% | 257.14% | 713.95% | -98.8% | 267.97% | -288.24% | -40.35% | 137.5% | 71.43% | - |
| EPS (Basic) | - | -4.00 | -0.22 | 0.12 | 0.43 | 2.16 | 0.75 | 0.21 | 0.03 | 2.15 | -1.13 | 0.68 | 1.14 | 0.48 | 0.28 |
| Diluted Shares Outstanding | 472.42M | 467.78M | 461.54M | 455.03M | 453.28M | 462.3M | 583.69M | 662.54M | 730.09M | 696.05M | 737.07M | 276.34M | 270.7M | 265.94M | 267.33M |
| Basic Shares Outstanding | 472.42M | 467.26M | 459.89M | 454.73M | 453.24M | 462.76M | 581.58M | 661.6M | 730.1M | 696.06M | 649.53M | 258.01M | 273.19M | 970.13M | 265.12M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | 7964.4% | 61.57% | - | 66.58% | 52.02% | 125.41% | 220.75% |
Unsustainable Debt Service Burden
As indicated by the most recent quarterly filings, OPTU's revenue has consistently declined, posting a 4.0% year-over-year contraction in 2026Q1, which suggests that the company is struggling to maintain its subscriber base against intensifying competition from fixed wireless access and alternative fiber-based service providers.
The steady erosion of top-line figures across the last ten quarters implies that pricing power is insufficient to offset volume losses. Investors should monitor whether this downward trajectory reflects a structural loss of market share in the core New York tri-state footprint.
Based on the provided financial data, OPTU's gross margin experienced a significant compression to 49.8% in 2026Q1, down from the 69% levels observed in previous quarters, highlighting the impact of rising programming costs and potential shifts in the underlying service mix toward lower-margin offerings.
This sudden margin degradation suggests that the company's ability to pass through content costs to the end consumer is weakening. The discrepancy between historical performance and the most recent quarter warrants further investigation into whether this represents a permanent shift in the cost structure.
According to reported income statements, OPTU's net income has been consistently negative, culminating in a substantial $2.9 billion loss in 2026Q1, which appears to be driven by non-operating items or asset impairments rather than purely operational performance, complicating the assessment of true underlying profitability.
The extreme variance in net margins, ranging from positive territory in 2024Q2 to deep losses, suggests that the bottom line is highly sensitive to accounting adjustments and interest expenses. Analysts should focus on operating income as a more reliable, albeit still pressured, indicator of core business health.
As reported in financial statements, OPTU's operating margin of 17.8% in 2026Q1 reflects a struggle to achieve meaningful operating leverage, as the company continues to grapple with high fixed costs associated with its legacy infrastructure and the ongoing transition to fiber-to-the-home technology.
The inability to scale operating income faster than revenue suggests that the company's cost-cutting initiatives may be insufficient to offset the capital-intensive nature of its network modernization. This may indicate that the business model remains overly reliant on high-volume legacy services that are currently in secular decline.
Based on the company's reported figures, the combination of negative net margins and persistent revenue contraction suggests that the market may be overestimating the terminal value of OPTU's assets, particularly if competitive pressures from 5G and fiber overbuilders continue to erode the company's localized moat.
Short-sellers would likely focus on the sustainability of the current debt load in the face of declining cash-generative capacity. The risk remains that the company's infrastructure, while entrenched, may require capital expenditures that exceed the cash flow generated by its shrinking subscriber base.
Quick answers to the most common questions about buying OPTU stock.
For fiscal year 2025, Optimum Communications, Inc. (OPTU) reported total revenue of $8.59B. This represents a 40.1% increase compared to $6.13B in 2012.
Optimum Communications, Inc. (OPTU) reported a net loss of $1.87B for the fiscal year ending 2025.
Optimum Communications, Inc. (OPTU) reported an operating income of $1.57B, resulting in an operating profit margin of 18.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Optimum Communications, Inc. (OPTU) generated $4.26B in gross profit for the year, representing a gross profit margin of 49.5%. This demonstrates the company's core pricing power and production efficiency.