Optimum Comm.

Optimum carries $26.1B of debt against a roughly $700M market cap. That is not a typo.

If you own this stock, your bet is on survival first and growth second.

optu

communication · media small cap updated mar 6, 2026
$1.47
market cap ~$700M · 52-week range $2–$2
xvary composite: 17 / 100 · weak
our overall rating — combines growth, value, risk, and momentum
Start here if you're new
what it is
Optimum sells home internet, TV, phone, mobile, and business connectivity to about 10 million customers.
how it gets paid
Last year Optimum Comm made $8.6B in revenue. Broadband was the main engine at $4.0B, or 46% of sales.
why growth slowed
Revenue fell 4.1% last year. During the fourth quarter, the company continued to face pressure from subscriber losses, reflecting intensifying competition and a decline in average revenue per user.
what just happened
Latest quarter EPS came in at -$0.15, versus a -$0.06 estimate, while revenue fell 2.3% to $2.18B.
At a glance
C+ balance sheet — struggling to keep the lights on
30/100 earnings predictability — expect surprises
4.0% return on capital — nothing to write home about
-$0.35 fy2027 eps est
$9B fy2029 rev est
xvary composite: 17/100 — weak
What they do
Optimum sells home internet, TV, phone, mobile, and business connectivity to about 10 million customers.
Your internet pipe is sticky. People cancel streaming apps in 10 seconds, but changing home internet takes truck rolls, equipment swaps, and service risk. That helps Optimum keep serving roughly 10 million residential and business customers even while video subscribers leave.
communication small-cap subscription-revenue broadband turnaround
How they make money
$8.6B annual revenue · their business grew -4.1% last year
Broadband
$4.0B
1.0%
Video
$2.2B
8.0%
Telephony
$0.9B
6.0%
Business Services
$1.1B
+1.0%
Advertising, Mobile, and Other
$0.4B
+2.0%
The products that matter
connectivity for business customers
network solutions to SMB
part of an $8.6B revenue base
this sits inside the full $8.6B business, and right now every product line has to carry the weight of a company with revenue down 4.1% from last year.
stability matters
consumer broadband and video brand
Optimum
core brand · 2.1% net margin
Optimum is the name on the door, but the numbers say the real challenge is economics: 2.1% net margin on $8.6B revenue leaves little cushion.
thin cushion
Key numbers
-$0.35
fy2027 eps est
$9B
fy2029 rev est
n/a
trailing p/e
n/a
dividend yield
Financial health
C+
strength
  • balance sheet grade C+ — weak — may struggle to fund operations
  • risk rank 5 — safer than 5% of stocks
  • price stability 5 / 100
  • long-term debt $26.1B (97% of capital)
  • net profit margin 2.1% — keeps 2 cents of every dollar in revenue
  • return on equity 8% — $0.08 profit for every $1 investors have put in
C+ — balance sheet grade and long-term debt are flagged. this stock carries more risk than average.
Total return vs. market

You invested $10,000 in OPTU 3 years ago → it's now worth $3,520.

The index would have given you $13,880.

source: institutional data · total return
What just happened
missed estimates
Latest quarter EPS came in at -$0.15, versus a -$0.06 estimate, while revenue fell 2.3% to $2.18B.
Subscriber losses kept pressuring results in the fourth quarter. Cord-cutting and weaker video demand also weighed on the top line, according to the company summary.
$2.18B
revenue
-$0.15
eps
150.0%
surprise
the number that mattered
The key number was the -$0.15 EPS result versus a -$0.06 estimate, because it shows losses are still arriving faster than expected.
source: company earnings report, 2025

Get this snapshot in your inbox

This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.

weekly updates earnings alerts plain english no spam
What could go wrong

the #1 risk is $26.1B of long-term debt on a business with 2.1% net margins.

med
the debt stack leaves little margin for error
$26.1B of long-term debt equals 97% of capital. When leverage gets that high, small operating misses can matter a lot more than they should.
$26.1B of long-term debt equals 97% of capital. When leverage gets that high, small operating misses can matter a lot more than they should.
med
revenue is already moving the wrong way
annual revenue fell 4.1% to $8.6B. If that decline continues, the turnaround case becomes a financing story instead of an operating one.
annual revenue fell 4.1% to $8.6B. If that decline continues, the turnaround case becomes a financing story instead of an operating one.
med
profitability is too thin to absorb shocks
2.1% net margin means the company keeps about 2 cents on each dollar of revenue. That is not much cushion for a business already carrying this much debt.
2.1% net margin means the company keeps about 2 cents on each dollar of revenue. That is not much cushion for a business already carrying this much debt.
med
the stock itself behaves like a stressed security
price stability is 5/100, the risk rank is 5, and the 3-year $10,000 investment is now $3,520. You are not buying steadiness here.
price stability is 5/100, the risk rank is 5, and the 3-year $10,000 investment is now $3,520. You are not buying steadiness here.
If revenue keeps slipping and losses stick around, the equity stays a thin claim under $26.1B of debt.
source: institutional data · regulatory filings · risk analysis
Pay attention to
capital structure
$26.1B debt vs. $700M equity value
this is the whole movie. The equity is small relative to the liabilities, so you need operations to cooperate.
revenue trend
-4.1% is the number to beat
you need the next updates to show the decline slowing or stopping. A shrinking top line and heavy leverage rarely make a comfortable pair.
earnings path
FY2027 EPS still sits at -$0.35
negative EPS is not fatal by itself. It does mean the turnaround still lives in forecasts, not in delivered profit.
next proof point
watch the next operating update, not the slogan
the next report needs to show better revenue direction and no fresh balance-sheet deterioration. Without that, the long-term $4 target stays theoretical.
Analyst rankings
earnings predictability
30 / 100
earnings can swing around more than you want. in human-speak, analysts do not see this as a clean, stable model right now.
risk rank
5
that means safer than only 5% of stocks in the dataset. You are getting paid for uncertainty here, if you are getting paid at all.
source: institutional data
Institutional activity

institutions have been net selling for 2 consecutive quarters — 47 buyers vs. 52 sellers in 4q2025. total institutional holdings: 0.3B shares. net selling for 2 quarters.

source: institutional data
Price targets
3-5 year target range
$1 $6
$1 current price
$4 target midpoint · +172% from current · 3-5yr high: $4 (+170% · 28% ann'l return)
source: institutional data · analyst targets

Want the deeper analysis?

The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.

see plans from $5/mo
The deep dive
OPTU
xvary deep dive
optu
the full analysis is in the works.
what you'll get
dcf valuation model
bull / base / bear scenarios
competitive moat breakdown
quarterly earnings tracker
operating model projections
risk matrix with kill criteria
original price target + conviction
updated with every earnings
free · no spam · you'll be first to read it