What were the key takeaways from Optimum's earnings call?

Did Optimum beat or miss consensus estimates last quarter?

What is Optimum's latest dividend and current dividend yield?

What guidance did Optimum's management provide for the next earnings period?

What is Optimum's gross profit margin?

What factors drove the changes in Optimum's revenue and profit?

What is the market's earnings forecast for Optimum next quarter?

What does Optimum do and what are its main business segments?

- **Gross Margin Milestone**: Gross margin hit 69.7%, 160 bps YoY expansion, driven by video mix shift and programming cost savings.
- **Disciplined Subscriber Growth**: Lost 58K broadband subs Q3, but maintained margin discipline with 900 bps churn improvement in mobile.
- **2025 EBITDA Target**: On track for $3.4B, with Q4 expected to deliver first YoY EBITDA growth since 2023.
- **AI and Automation**: Service call resolution rates at all-time highs, with AI tools reducing touchpoints by 30%.
- **Hyperscaler Growth**: Lightpath awarded $100M+ in new contracts, contributing to 2026+ revenue acceleration.

**【CEO Summary】**
- **Revenue Growth and Margin Expansion**: Q3 revenue declined 5.4% YoY, driven by video cord-cutting, but gross margin reached an all-time high of 69.7% due to mix shift away from video and disciplined programming agreements. Adjusted EBITDA margin expanded 70 bps YoY to 39.4%.
- **Broadband Challenges**: Lost 58,000 broadband subscribers Q3, with competitive intensity accelerating in September. Maintained margin discipline by avoiding uneconomic gross adds, prioritizing quality growth.
- **Strategic Initiatives**: Launched 2G HFC speeds in first market, expanded Lightpath hyperscaler contracts, and introduced new video tiers (Entertainment TV, Extra TV) with 13% residential penetration. Mobile ARPU improved, with churn down 900 bps YoY.
- **2025 Outlook**: Reaffirmed $3.4B EBITDA target, with Q4 expected to be first quarter of YoY growth, driven by ARPU management and cost savings.

**【CFO Financial Commentary】**
- **Financial Performance**: Q3 adjusted EBITDA of $831M (-3.6% YoY), with margin expansion to 39.4%. GAAP net loss included $1.6B noncash impairment of cable franchise rights. Full-year EBITDA guidance of $3.4B reflects moderation in residential video decline and cost control.
- **Cost Management**: Operating expenses improved 2.4% YoY, with OpEx on track for 4-6% reduction in 2026. Programming costs down 14% YoY, offsetting video revenue declines. Service call and truck roll rates improved 6% and 20% YoY, respectively.
- **Capital Allocation**: 2025 capex projected at $1.3B, with focus on Lightpath hyperscaler builds and HFC upgrades. Debt leverage at 7.8x, with $1B ABR facility supporting liquidity.

**【Q&A Highlights】**
- **Competitive Dynamics**: CEO emphasized disciplined approach to subscriber acquisition, avoiding aggressive promotions despite competitors' $500+ incentives. Q4 expected to see continued competitive intensity, with focus on scaling hyperlocal strategies.
- **Cost Structure**: CFO noted Q3 OpEx moderation (down $16M YoY) and 2026 target of 4-6% OpEx reduction. Marginal political ad revenue in Q4 may offset video declines.
- **MDU Strategy**: Expanded exclusive bulk agreements in multifamily buildings, targeting 2M+ homes passed. Mobile and value-added services (e.g., Total Care) positioned to offset video ARPU headwinds.
- **2027 Maturities**: Management declined to comment on debt refinancing plans, focusing on operational execution.


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