Optimum Down 64,000 Broadband Subs

WASHINGTON, May 7, 2026 – Optimum Communications, formerly Altice USA, lost 64,000 broadband subscribers in the first quarter of 2026.

Executives said on the company's earnings call Thursday some of that was related to one-time adjustments, and the number without those would have been 56,000. That’s still more losses than analysts were expecting.

Optimum’s average revenue per user (ARPU) for broadband subscribers also fell to $74.95, although it remained higher than Comcast and Charter’s.

Optimum CEO Dennis Mathew said the company’s new super-low pricing packages would put pressure on the metric in the near term, but that it was an intentional effort to stave off continued subscriber losses amid fierce competition from fixed wireless and fiber. He said the metric would likely decline in 2026.

“This may lead to near-term pressure on broadband ARPU from gross auditions, it is a deliberate step to stabilize subscriber trends,” he said of the new pricing, which includes a five-year price lock as low as $15 per month if subscribers also take a wireless line.

The cable giants’ stocks took a hit last month amid fears cable ARPU would remain in decline for the foreseeable future as the industry did all it could to reverse losses to other technologies. But New Street Research analyst Vikash Harlalka wrote in an investor note cable operators still have some pricing power in his view.

“With the big 3 cable operators all reporting flat or declining broadband ARPU, investors have begun to question whether cable has any pricing power left,” he wrote. “We still think there is pricing power and that this is a minor bump on the road.”

Optimum ended the quarter with more than 4 million broadband subscribers. Of those, more than 729,000 are fiber subscribers, a number that increased by 13,000 in the quarter. Executives said fiber additions were slowing down as they were focusing on getting new customers rather than migrating existing cable customers onto fiber as they had in the past.

MoffettNathanson founder Craig Moffett wrote in a note that the low prices also functioned to discourage fiber providers from further expanding into Optimum’s territory. If competing with Optimum meant setting prices so low that a fiber ISP wouldn’t make any money, the endeavor might not be worth it.

“There’s more at work here than just trying mightily to slow broadband sub losses,” he wrote. “Optimum is signaling to would-be fiber overbuilders: don’t do it. Overbuilders can’t make money if they have to price FTTH at rates like this.”

Other cable companies have said they’re seeing competition from SpaceX in rural areas, but Optimum executives said they weren’t yet seeing an impact. Optimum stock was down more than 6 percent Thursday.

Mobile

In the quarter’s bright spot, Optimum posted 52,000 new mobile lines, much better than expected and its best total in the last six years.

The company ended the quarter with 674,000 mobile lines. For comparison, cable giants Charter and Comcast count 12.1 million and 9.7 million mobile subscribers, respectively.

Like other major ISPs, Optimum is leaning into convergence bundles as a means of attracting and retaining customers, as buying both home and mobile broadband makes subscribers less likely to switch.

Executives were optimistic about this, as just 8.8 percent of Optimum’s broadband base has taken a mobile line so far.

“We still see significant runway to continue to drive mobile attachment and deepen penetration among existing customers,” Mathew said.

Moffett noted mobile could also be a revenue generator. Optimum’s quarterly revenue of more than $2 billion missed expectations and has been falling year-over-year.

“Indeed, [mobile] is the most important revenue generator now. If there is to be any hope of returning to overall growth, it rests on mobile growth eventually offsetting declines in broadband and video,” he wrote.

Video losses were also lower than expected. Executives said the service was a means of increasing broadband subscriber retention.

The company also started reporting converged ARPU for customers with fixed broadband and mobile lines. It was $79.32 and increased 1.2 percent year-over-year.

Debt

Optimum has $6.2 billion in debt due in 2027. Executives said they were working to address the situation but had nothing to share Thursday.

“We are aware of the coming maturities, and we are focused on addressing them proactively and with urgency,” CFO Marc Sirota said. “While we are not in a position to share specific details today, this is an active process, and we will provide updates as there is news to share.”