📊 OPTU Key Takeaways
Is Optimum Communications, Inc. (OPTU) a Good Investment?
Optimum Communications faces insolvency with negative stockholders' equity of -5.2B, indicating liabilities exceed assets by over 5B. The company posted -2.9B net loss on declining 2.1B revenue with -114.3% operating margin, while burning -137.4M in free cash flow annually. With 26.4B in long-term debt, sub-1.0x liquidity ratios, and structural headwinds in legacy pay-TV services, the equity has no recovery path.
Fundamentals are deteriorating: revenue is declining, operating and net margins are negative, and free cash flow is negative amid heavy capex. The balance sheet is stressed with negative equity, high long-term debt, sub-1.0 liquidity, and negative interest coverage, signaling refinancing and solvency risk. Until operating margins and sustainable free cash flow improve alongside deleveraging, downside risk dominates.
Optimum Communications, Inc. Key Strengths (OPTU)
- Positive operating cash flow of 170.3M provides near-term liquidity runway
- Maintains 1.0B cash balance for operational flexibility
- Still generating 2.1B in annual revenue from established subscriber base
- Meaningful operating cash flow generation ($1.23B) despite losses
- Large revenue base ($8.59B) supporting scale and recurring cash characteristics
- Cash balance of $1.01B provides a limited liquidity buffer
OPTU Stock Risks: Optimum Communications, Inc. Investment Risks
- Negative stockholders equity of -5.2B indicates technical insolvency and high bankruptcy risk
- Massive 2.9B net loss with -139.6% net margin shows structural unprofitability
- Negative free cash flow despite positive OCF indicates capex (307.7M) exceeds operating cash generation
- 26.4B long-term debt with -7.8x interest coverage ratio cannot be serviced from operations
- Current ratio of 0.85x below 1.0 signals liquidity crisis and refinancing risk
- Revenue declining 4.1% YoY in structurally declining cable TV industry
- Highly leveraged balance sheet and negative equity position
- Negative interest coverage (-0.4x) and weak liquidity (current ratio 0.80x)
- Revenue decline (-4.1% YoY) and negative free cash flow
Key Metrics to Watch
- Liquidity runway and cash burn rate until cash exhaustion
- Operating cash flow sustainability as revenue continues decline
- Debt refinancing capacity and covenant compliance status
- Subscriber losses and churn rates in core cable business
- Capital structure restructuring or bankruptcy filing triggers
- Interest coverage
- Free cash flow margin
Optimum Communications, Inc. (OPTU) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
OPTU Profit Margin, ROE & Profitability Analysis
OPTU vs Telecom Sector: How Optimum Communications, Inc. Compares
How Optimum Communications, Inc. compares to Telecom sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Optimum Communications, Inc. Stock Overvalued? OPTU Valuation Analysis 2026
Based on fundamental analysis, Optimum Communications, Inc. has mixed fundamental signals relative to the Telecom sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Optimum Communications, Inc. Balance Sheet: OPTU Debt, Cash & Liquidity
OPTU Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Optimum Communications, Inc.'s revenue has remained relatively flat over the 5-year period, with a 5% decline. The most recent EPS of $0.12 reflects profitable operations.
OPTU Revenue Growth, EPS Growth & YoY Performance
OPTU Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $2.1B | -$75.7M | $-0.16 |
| Q3 2025 | $2.1B | $15.4M | $-0.09 |
| Q2 2025 | $2.1B | -$5.8M | $-0.01 |
| Q1 2025 | $2.2B | -$21.2M | $-0.05 |
| Q3 2019 | $2.4B | -$25.0M | $0.04 |
| Q2 2019 | $2.4B | -$25.0M | $0.09 |
| Q1 2019 | $2.3B | -$25.0M | N/A |
| Q3 2018 | $2.3B | $32.6M | $0.04 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Optimum Communications, Inc. Dividends, Buybacks & Capital Allocation
OPTU SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Optimum Communications, Inc. (CIK: 0001702780)
📋 Recent SEC Filings
❓ Frequently Asked Questions about OPTU
What is the AI rating for OPTU?
Optimum Communications, Inc. (OPTU) has a Combined AI Grade of D from Claude (D) and ChatGPT (D) with 90% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are OPTU's key strengths?
Claude: Positive operating cash flow of 170.3M provides near-term liquidity runway. Maintains 1.0B cash balance for operational flexibility. ChatGPT: Meaningful operating cash flow generation ($1.23B) despite losses. Large revenue base ($8.59B) supporting scale and recurring cash characteristics.
What are the risks of investing in OPTU?
Claude: Negative stockholders equity of -5.2B indicates technical insolvency and high bankruptcy risk. Massive 2.9B net loss with -139.6% net margin shows structural unprofitability. ChatGPT: Highly leveraged balance sheet and negative equity position. Negative interest coverage (-0.4x) and weak liquidity (current ratio 0.80x).
What is OPTU's revenue and growth?
Optimum Communications, Inc. reported revenue of $2.1B.
Does OPTU pay dividends?
Optimum Communications, Inc. pays dividends, with $1.1M distributed to shareholders in the trailing twelve months.
Where can I find OPTU SEC filings?
Official SEC filings for Optimum Communications, Inc. (CIK: 0001702780) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is OPTU's EPS?
Optimum Communications, Inc. has a diluted EPS of $-6.10.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is OPTU's fundamental grade?
Based on our AI fundamental analysis in May 2026, Optimum Communications, Inc. has a D grade with 90% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is OPTU stock overvalued or undervalued?
Valuation metrics for OPTU: ROE of N/A (sector avg: 15%), net margin of -139.6% (sector avg: 14%). Compare these metrics with sector averages to assess valuation.
What is OPTU's AI grade for 2026?
Our dual AI analysis gives Optimum Communications, Inc. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is OPTU's free cash flow?
Optimum Communications, Inc.'s operating cash flow is $170.3M, with capital expenditures of $307.7M. FCF margin is -6.7%.
How does OPTU compare to other Telecom stocks?
Vs Telecom sector averages: Net margin -139.6% (avg: 14%), ROE N/A (avg: 15%), current ratio 0.85 (avg: 1).