Optimum (OPTU) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, February 12, 2026 astatine 10:06 AM CST 43 min read

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Feb. 12, 2026 astatine 8:30 a.m. ET

• Chief Executive Officer — Dennis Mathew

• Chief Financial Officer — Marc Sirota

• Vice President, Investor Relations — Sarah Freedman

Dennis Mathew: Thank you, Sarah, and bully morning, everyone.

Dennis Mathew: Before we begin, I privation to convey each our teammates crossed Optimum Communications, Inc., peculiarly our web and frontline teams. Their proactive mentation and disciplined effect during the aggregate wintertime storms that affected the bulk of our footprint successful aboriginal 2026. Our teams worked alongside local, state, and national authorities arsenic good arsenic powerfulness companies to mobilize personnel, equipment, and captious infrastructure. This absorption defined by our one. 2025 was a twelvemonth of meaningful translation for our business. We sharpened our absorption connected halfway priorities, strengthened execution to thrust operating efficiencies, enhanced web prime and reliability, and made intentional decisions to elevate the lawsuit experience.

This foundational enactment was captious arsenic contention intensified crossed astir each marketplace and promotional enactment reached unprecedented levels. Against this backdrop, we took a balanced and disciplined attack to execute our objectives and stay steadfast successful our go-to-market and basal absorption strategies. Turning to descent three, you volition spot that our 4th fourth fiscal results bespeak that focus. While full gross declined by 2.3%, connectivity and each different gross grew 2% twelvemonth implicit year. Broadband subscriber results bespeak some the strength of the competitory situation and our conscious decisions to prioritize sustainable pricing and returns.

We delivered our champion show connected video nett losses successful the past several, supported by little video churn and increasing penetration of recently launched video tiers. At the aforesaid time, we moderated the gait of fibre migrations to equilibrium near-term margins and currency flow. On mobile, we strengthened the prime of our mobile lawsuit base, which contributed to improved mobile churn successful the quarter. Looking astatine lawsuit economics, broadband ARPU grew 2.8% and residential ARPU grew 0.4% twelvemonth implicit year. These results show continued advancement successful merchandise premix retention, complaint actions, and pricing subject contempt marketplace dynamics. In the 4th quarter, improved gross margins combined with outgo subject contributed to a meaningful up successful adjusted EBITDA.

Consistent with our guidance, adjusted EBITDA grew astir 8% twelvemonth implicit twelvemonth to conscionable implicit $900,000,000, representing our archetypal 4th of year-over-year adjusted EBITDA maturation successful 16 quarters. Adjusted EBITDA borderline expanded to implicit 41%, up 380 ground points, and gross borderline reached astir 70%, up 180 ground points twelvemonth implicit year. Adjusted EBITDA maturation reflects astir $60,000,000 of year-over-year operating disbursal reductions, driven successful portion by continued improvements successful lawsuit acquisition and operational performance. Our tract dispatch complaint improved 19% twelvemonth implicit year. Our seven-day lawsuit attraction repetition complaint reached its lowest levels ever successful Q4. And we ended the twelvemonth with a Net Promoter Score 11 points higher than erstwhile we started the year.