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Research Alert: Optimum Communications Posts In-line Results, Broadband Losses Accelerate

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

OPTU's Q1 2026 results showed revenue declining 4.0% Y/Y to $2.07B, but EBITDA margins expanded to 38.2% (+110 bps Y/Y), reflecting operational efficiency gains. The company reported a $2.88B net loss due to a $2.7B non-cash impairment charge on cable franchise rights. Broadband net losses widened to 64k vs 37k in Q1 2025 amid intensifying competition from fixed wireless and fiber providers. However, mobile delivered exceptional growth with 52k net additions, the strongest in six years. Management is focused on product simplification, transparent pricing, and refining fiber migration strategy for acceleration in 2H 2026. The company maintains high leverage at 7.5x net leverage despite refinancing activities totaling $1.1B that extended debt maturities. Free cash flow deficit improved to -$137.4M from -$168.6M, with capital intensity reaching 14.9%. We believe the competitive environment will remain challenging as fiber deployments and fixed wireless access continue expanding across OPTU's footprint.

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