Optimum Communications is seeing rapid growth in mobile services and higher-speed broadband adoption, with residential mobile service revenue increasing 40% during the second quarter of 2026 and more than half of its residential broadband customers now taking speeds of at least 1 Gig.
Residential mobile service revenue increased to $53 million from $38 million a year earlier. Optimum added 50,000 mobile lines during the quarter, representing its strongest second-quarter mobile net-add performance and bringing total mobile lines to 724,000.
Mobile penetration of Optimum’s broadband customer base increased to 8.9% from 6.9% a year earlier, supporting the company’s strategy of using converged broadband and wireless services to deepen customer relationships.
Higher-speed broadband adoption is also accelerating. Approximately 53% of the residential broadband base was taking speeds of 1 Gig or higher at the end of Q2, up sharply from 38% a year earlier.
The growth comes despite continued pressure on Optimum’s overall broadband subscriber base. The company lost 40,000 broadband primary service units during Q2 and ended the period with approximately 4 million broadband subscribers.
Optimum said it is responding with simpler offers, changes to pricing and packaging, and data-driven customer retention efforts. The company is also investing in digital capabilities and operating improvements aimed at simplifying the customer experience.
Convergence ARPU increased 2.4% to $79.80 even as residential ARPU declined 1.1% to $132.22. Total Q2 revenue declined 5.8% to $2.02 billion, while residential revenue fell 6.7% to $1.54 billion.
Cost reductions helped offset some of the revenue pressure. Gross margin expanded 180 basis points to 71%, while Adjusted EBITDA margin increased 140 basis points to 38.8%. Year-to-date operating expenses excluding share-based compensation declined 5%, supported by lower truck rolls and call volumes, reduced customer-acquisition costs and workforce optimization.
Video economics are also improving. Optimum’s newer tiered video packages reached 18% of the residential video base, up from 10%, while video gross margin has expanded by approximately 1,000 basis points over the past three years.
KEY QUOTES:
“We expanded gross margin and Adjusted EBITDA margin, drove sequential improvement in broadband trends, delivered our best second-quarter mobile line growth to date, grew convergence ARPU year over year, and continued to expand our footprint.”
“We are sharpening our go-to-market approach, deepening customer relationships through convergence, and transforming the customer experience to support stronger broadband performance over time.”
Dennis Mathew, Chairman and Chief Executive Officer of Optimum
