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What changed in Optimum Communications, Inc.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Optimum Communications, Inc.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+489 added−412 removedSource: 10-K (2026-02-13) vs 10-K (2025-02-13)

Top changes in Optimum Communications, Inc.'s 2025 10-K

489 paragraphs added · 412 removed · 353 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

116 edited+31 added−19 removed147 unchanged
Biggest changeHuman Capital Resources As of December 31, 2024, we had approximately 10,900 employees. Approximately 400 of our employees were represented by unions as of such date. Approximately 89% of our employees are U.S. based. Our employees perform work in a variety of environments, including customers’ homes or businesses, in the field, and on site in retail stores, centers or offices.
Biggest changeOur employees perform work in a variety of environments, including customers’ homes or businesses, in the field, and on site in retail stores, centers or offices. Compensation and Benefits We are committed to providing a competitive total incentive program that is conducive to attracting and retaining our talent.
In 2019, we launched a mobile service using our own core infrastructure and our infrastructure mobile virtual network operator ("iMVNO") agreements with Sprint (now T-Mobile) and other roaming partners, including AT&T.
Mobile Service. In 2019, we launched a mobile service using our own core infrastructure and our infrastructure mobile virtual network operator ("iMVNO") agreements with Sprint (now T-Mobile) and other roaming partners, including AT&T.
The FCC can aggressively enforce compliance with its regulations and consumer protection policies, including through the imposition of substantial monetary sanctions. It is possible that Congress or the FCC will expand or modify its regulations of cable systems in the future, and we cannot predict at this time how that might impact our business. Broadband Regulatory Classification.
The FCC can aggressively enforce compliance with its regulations and consumer protection policies, including through the imposition of substantial monetary sanctions. It is possible that Congress or the FCC will expand or modify its regulations of cable systems in the future, and we cannot predict at this time how that might impact our business. 15 Broadband Regulatory Classification.
Competition We operate in a highly competitive, consumer-driven industry and we compete against a variety of broadband, video, mobile, fixed wireless broadband and fixed-line telephony providers and delivery systems, including broadband communications companies, wireless data and telephony providers, fiber-based service providers, satellite delivered video signals, Internet-delivered video content and broadcast television signals available to residential and business customers in our service areas.
Competition We operate in a highly competitive, consumer-driven industry and we compete against a variety of broadband, video, mobile, fixed wireless broadband and fixed-line telephony providers and delivery systems, including broadband communications companies, wireless data and telephony providers, fiber-based service providers, satellite-based connectivity providers, Internet-delivered video content and broadcast television signals available to residential and business customers in our service areas.
Accordingly, we make a concerted effort to continually improve each customer interaction and have made significant investments in our people, processes and technology to enhance our customers' experience and to reduce the need for customers to contact us. 7 The insights from operational customer service metrics and our customer surveys help us focus our product, technology, process, and network improvement efforts.
Accordingly, we make a concerted effort to continually improve each customer interaction and have made significant investments in our people, processes, and technology to enhance our customers' experience and to reduce the need for customers to contact us. The insights from operational customer service metrics and our customer surveys help us focus our product, technology, process, and network improvement efforts.
We do not charge early termination fees. We 12 currently charge for service in whole-month increments other than where prohibited by state law, so the adoption of this proposal would affect our customer service practices. We cannot predict whether these rules and restrictions, if adopted, would affect our cable revenue and subscribership.
We do not charge early termination fees. We currently charge for service in whole-month increments other than where prohibited by state law, so the adoption of this proposal would affect our customer service practices. We cannot predict whether these rules and restrictions, if adopted, would affect our cable revenue and subscribership.
We pay fees for rented circuits based on the amount of capacity available to it and pay for Internet connectivity based on the amount of IP-based traffic received from and sent over the other carrier's network. Mobile Voice and Data Equipment We purchase for resale mobile handsets from a number of original equipment manufacturers including Apple, Samsung and Motorola.
We pay fees for rented circuits based on the amount of capacity available to it and pay for Internet connectivity based on the amount of IP-based traffic received from and sent over the other carrier's network. Mobile Voice and Data Equipment We purchase for resale mobile handsets from a number of original equipment manufacturers including Apple and Motorola.
Classification of our VoIP services as telecommunications services could result in additional regulatory requirements and compliance costs. In 2025, in response to increased regulation of VoIP providers in California, several providers petitioned the FCC to preempt California’s rules; the FCC has not yet taken action on that petition either. Universal Service.
Classification of our VoIP services as telecommunications services could result in additional regulatory requirements and compliance costs. In 2025, in response to increased regulation of VoIP providers in 17 California, several providers petitioned the FCC to preempt California’s rules; the FCC has not yet taken action on that petition either. Universal Service.
Other Services We may provide other services and features over our cable system, such as games and interactive advertising, which may be subject to a range of federal, state and local laws, such as privacy and consumer protection regulations and 18 federal and state standards and regulations. We also maintain various websites that provide information and content regarding our businesses.
Other Services We may provide other services and features over our cable system, such as games and interactive advertising, which may be subject to a range of federal, state and local laws, such as privacy and consumer protection regulations and federal and state standards and regulations. We also maintain various websites that provide information and content regarding our businesses.
Our mobile wireless strategy depends on the availability of wholesale access to radio access networks ("RAN") from one or more network-based providers with whom we are likely to compete. Our mobile service is vulnerable to 10 constraints on the availability of wholesale access or increases in price from the incumbents.
Our mobile wireless strategy depends on the availability of wholesale access to radio access networks ("RAN") from one or more network-based providers with whom we are likely to compete. Our mobile service is vulnerable to constraints on the availability of wholesale access or increases in price from the incumbents.
In addition, the FCC is currently considering whether to require VoIP providers to maintain backup power for certain network equipment, and California has adopted rules requiring VoIP providers to maintain seventy- 17 two hours of network backup power in certain areas of the state facing elevated fire risks.
In addition, the FCC is currently considering whether to require VoIP providers to maintain backup power for certain network equipment, and California has adopted rules requiring VoIP providers to maintain seventy-two hours of network backup power in certain areas of the state facing elevated fire risks.
Government Subsidies. The FCC and other federal agencies, as well as some states, direct subsidies to entities deploying broadband to areas deemed to be "unserved" or "underserved." Federal legislation and state programs have substantially increased the amount of such subsidies in recent years.
The FCC and other federal agencies, as well as some states, direct subsidies to entities deploying broadband to areas deemed to be "unserved" or "underserved." Federal legislation and state programs have substantially increased the amount of such subsidies in recent years.
Customer Experience We believe the customer experience is a cornerstone of our business. Our call center strategy is to demonstrate that we are reliable support experts, that are simple to interact with and work to the best of our ability to resolve the issue in the first attempt.
Customer Experience We believe the customer experience is a cornerstone of our business. Our call center strategy is to demonstrate that we are reliable support experts, that are simple to interact with and work to the best of our ability to resolve the issue 7 in the first attempt.
See "Risk Factors—Risk Factors Relating to Our Business—We depend on third-party vendors for certain equipment, hardware, licenses and services in the conduct of our business." Broadband and Telephone Connectivity We deliver broadband and telephony services through our HFC and FTTH network.
See "Risk Factors—Risk Factors Relating to Our Business and Our Indebtedness—We depend on third-party vendors for certain equipment, hardware, licenses, and services in the conduct of our business." Broadband and Telephone Connectivity We deliver broadband and telephony services through our HFC and FTTH network.
The Communications Act requires most utilities to provide cable systems with 13 access to poles and conduits to attach such facilities at regulated rates, but does not extend these requirements to other entities, such as municipalities and electric cooperatives.
The Communications Act requires most utilities to provide cable systems with access to poles and conduits to attach such facilities at regulated rates, but does not extend these requirements to other entities, such as municipalities and electric cooperatives.
Our collection, use, disclosure and other handling of information is subject to a variety of federal and state privacy requirements, including those imposed specifically on cable operators and telecommunications service providers by the Communications Act.
Our collection, use, disclosure and other handling of information is subject to a variety of federal and 14 state privacy requirements, including those imposed specifically on cable operators and telecommunications service providers by the Communications Act.
In order to provide our services, we must seek approval from the state regulatory commission or be registered to provide services in each state where we operate and may at times require local approval to construct facilities.
In order to provide our services, we must seek approval from the state regulatory commission or be registered to provide services in each 18 state where we operate and may at times require local approval to construct facilities.
See also "Risk Factors—Risk Factors Relating to Our Business—We operate in a highly competitive business environment which could materially adversely affect our business, financial condition, results of operations and liquidity." Broadband Services Competition Our broadband services face competition from broadband communications companies' digital subscriber line ("DSL"), FTTH/Fiber to the Premises ("FTTP") and wireless broadband offerings, as well as from a variety of companies that offer other forms of online services, including satellite-based broadband services.
See also "Risk Factors—Risk Factors Relating to Our Business and Our Indebtedness—We operate in a highly competitive business environment which could materially adversely affect our business, financial condition, results of operations, and liquidity." 9 Broadband Services Competition Our broadband services face competition from broadband communications companies' digital subscriber line ("DSL"), FTTH/Fiber to the Premises ("FTTP"), and wireless broadband offerings, as well as from a variety of companies that offer other forms of online services, including satellite-based broadband services.
For more information, see "Risk Factors—Risk Factors Relating to Our Business—Programming and retransmission costs are increasing and we may not have the ability to pass these increases on to our customers.
For more information, see "Risk Factors—Risk Factors Relating to Our Business and Our Indebtedness—Programming and retransmission costs are increasing and we may not have the ability to pass these increases on to our customers.
Available Information and Website We make available free of charge, through our investor relations section at our website, http://www.alticeusa.com, our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K and all amendments to those reports as soon as reasonably practicable after such material is electronically filed with or furnished to the U.S.
Available Information and Website We make available free of charge, through our investor relations section at our website, http://www.optimum.com, our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and our Current Reports on Form 8-K and all amendments to those reports as soon as reasonably practicable after such material is electronically filed with or furnished to the U.S.
("AT&T"), Appalachian Wireless and US Cellular. 8 Information Technology Our information technology ("IT") systems consist of billing, customer relationship management, business and operational support and sales force management systems.
("AT&T"), Appalachian Wireless and US Cellular. Information Technology Our information technology ("IT") systems consist of billing, customer relationship management, business and operational support and sales force management systems.
Together, these video offerings help make up Optimum’s modern video model, bringing to life the new vision of Optimum TV, which helps break conventional all-or-nothing options to better provide content geared toward customers’ unique and modern viewing preferences.
Together, these video offerings help make up our modern video model, bringing to life the new vision of Optimum TV, which helps break conventional all-or-nothing options to better provide content geared toward customers’ unique and modern viewing preferences.
Website references and social media channels in this report are provided as a convenience and do not constitute, and should not be viewed as, incorporation by reference of the information contained on, or available through, the sources. Therefore, such information should not be considered part of this report. 19
Website references and social media channels in this report are provided as a convenience and do not constitute, and should not be viewed as, incorporation by reference of the information contained on, or available through, the sources. Therefore, such information should not be considered part of this report. 20
Current offers include symmetrical speeds up to 8 Gbps for our residential customers. Our FTTH broadband service is available to approximately 3.0 million homes, offering multi-gig symmetrical speed tiers to substantially all our FTTH customers and we plan to continue this expansion.
Current offers include symmetrical speeds up to 8 Gbps for our residential customers. Our FTTH broadband service is available to approximately 3.1 million homes, offering multi-gig symmetrical speed tiers to substantially all our FTTH customers and we plan to continue this expansion.
Suppliers typically insist that their most popular and attractive services be distributed to a minimum number or percentage of customers, which limits our ability to provide consumers with full purchasing flexibility. Our cable programming costs for broadcast stations and cable networks have increased in excess of customary inflationary and cost-of-living type increases.
Suppliers typically insist that their most popular and attractive services be distributed to a minimum number or percentage of customers or in a particular package or tier, which limits our ability to provide consumers with full purchasing flexibility. Our cable programming costs for broadcast stations and cable networks have increased in excess of customary inflationary and cost-of-living type increases.
We also offer additional options designed to meet our customers' needs, including directory assistance, voicemail services and international calling. Mobile We offer a mobile service providing data, talk and text to consumers in or near our service footprint.
We also offer additional options designed to meet our customers' needs, including directory assistance, voicemail services, and international calling. Mobile We offer a mobile service providing data, talk, and text to consumers and business customers in or near our service footprint.
We principally provide broadband communications and video services in the United States and market our services under the Optimum brand. We deliver broadband, video, telephony and mobile services to approximately 4.6 million residential and business customers across our footprint.
We principally provide broadband communications and video services in the United States and market our services under the Optimum brand. We deliver broadband, video, telephony, and mobile services to approximately 4.3 million residential and business customers across our footprint.
Video Services We currently offer a variety of video services through Optimum TV, which include delivery of broadcast stations and cable networks, over the top ("OTT") services such as Netflix, Amazon Prime, YouTube and others, advanced digital video services, such as video-on-demand ("VOD"), HD channels, digital video recorder ("DVR") and pay-per-view, to our residential markets.
Video Services We currently offer a variety of video services through Optimum TV, which include delivery of broadcast stations and cable networks, over the top ("OTT") services such as Netflix, Amazon Prime, YouTube, and others, advanced digital video services, such as video-on-demand ("VOD"), HD channels, and digital video recorder ("DVR"), to our residential markets.
The FCC also requires interconnect VoIP providers to report network outages that exceed a specified threshold. We provide traditional telecommunications services in various states through our operating subsidiaries, and those services are largely governed under rules established for CLECs under the Communications Act.
The FCC also requires interconnect VoIP providers to report network outages that exceed a specified threshold. We provide traditional telecommunications services in various states through our operating subsidiaries and third-party service providers, and those services are largely governed under rules established for CLECs under the Communications Act.
To the extent that we are unable to reach an agreement with certain programmers on terms that we believe are reasonable, we have been, and may in the future be, forced to remove such programming channels from our line-up, which may result in a loss of customers.
To the extent that we are unable to reach agreements with certain programmers on terms that we believe are reasonable, we have been, and may in the future be, forced to remove such programming channels from our line-up, which may result in a loss of customers.
Telephony Services Competition Our telephony service competes with wireline, wireless and VoIP phone service providers, such as Vonage, Skype, Facetime, WhatsApp and magicJack, as well as companies that sell phone cards at a cost per minute for both national and international service.
Telephony Services Competition Our telephony service competes with wireline, wireless, and VoIP phone service providers, such as Vonage, Microsoft Teams, Facetime, WhatsApp, and magicJack, as well as companies that sell phone cards at a cost per minute for both national and international service.
Additionally, we provide 3 app based solutions for TV, including a companion mobile app that allows viewing of television content on iOS or Android devices, as well as the available Optimum TV app on Apple TV, and on Optimum Stream for eligible customers.
Additionally, we provide app based solutions for TV, including companion mobile apps that allows viewing of television content on iOS or Android devices, as well as the available Optimum TV app on Apple TV, and on Optimum Stream for eligible customers.
Our Products and Services We provide broadband, video, telephony and mobile services to both residential and business customers. We also provide enterprise-grade fiber connectivity, bandwidth and managed services to enterprise and hyperscaler customers and provide advertising time and services to advertisers. In 2024, we had approximately 3.0 million homes and businesses passed with our state-of-the-art FTTH network.
Our Products and Services We provide broadband, video, telephony, and mobile services to both residential and business customers. We also provide enterprise-grade fiber connectivity, bandwidth, and managed services to enterprise and hyperscaler customers and provide advertising time and services to advertisers. In 2025, we had approximately 3.1 million homes and businesses passed with our state-of-the-art FTTH network.
Franchise agreements are usually for a term of five to fifteen years from the date of grant, however, approximately 490 of Altice USA’s communities are located in states (Connecticut, Kansas, Missouri, Nevada, North Carolina and Texas) where by law franchise agreements do not have an expiration date.
Franchise agreements are usually for a term of five to fifteen years from the date of grant, however, approximately 490 of Optimum Communications’ communities are located in states (Connecticut, Kansas, Missouri, Nevada, North Carolina, and Texas) where by law franchise agreements do not have an expiration date.
In recent years, local fiber providers and fixed wireless broadband providers have become more competitive in the business telecommunications services market. Advertising Services Competition We provide advertising and advanced advertising services on television and digital platforms, both directly and indirectly, within and outside our television service area.
In recent years, local fiber providers and fixed wireless broadband providers have become more competitive in the business telecommunications services market. Advertising Services Competition We provide advertising and advanced advertising services across television, streaming and digital platforms, both directly and indirectly, within and outside our cable service area.
Our ongoing FTTH network build passes approximately 3.0 million homes and businesses as of December 31, 2024, and has enabled us to deliver multi-gig broadband speeds to meet the growing data needs of residential and business customers.
Our ongoing FTTH network build passes approximately 3.1 million homes and businesses as of December 31, 2025, and has enabled us to deliver multi-gig broadband speeds to meet the growing data needs of residential and business customers.
The FCC or other regulatory authorities may adopt new or different regulations that apply to our services or similarly situated providers, impose new taxes or fees, or modify the obligations of other network-based carriers to provide wholesale RAN access to providers like Altice USA.
The FCC or other regulatory authorities may adopt new or different regulations that apply to our services or similarly situated providers, impose new taxes or fees, or modify the obligations of other network-based carriers to provide wholesale RAN access to providers like Optimum Communications.
Depending on the market and level of service, customers have access to local broadcast networks and independent television stations, news, information, sports and entertainment channels, regional sports networks, international channels and premium services such as Max, Showtime and Starz.
Depending on the market and level of service, customers have access to local broadcast networks and independent television stations, news, information, sports, and entertainment channels, regional sports networks, 3 international channels, and premium services such as HBO Max, Paramount+ with Showtime channels, and Starz.
As such, we have certain compliance obligations with EU member state, as well as UK laws and regulations, including compliance obligations under the GDPR and UK GDPR, and bear potential enforcement risks and fines if we fail to comply, even as the application of those regulations to some of our operations are unclear or are unknown.
As such, we have certain compliance obligations with EU member state, as well as UK laws and regulations, including compliance obligations under the General Data Protection Regulation 19 ("GDPR") and UK GDPR, and bear potential enforcement risks and fines if we fail to comply, even as the application of those regulations to some of our operations are unclear or are unknown.
Our footprint extends across 21 states (primarily in the New York metropolitan area and various markets in the south-central United States) through a fiber-rich hybrid-fiber coaxial ("HFC") broadband network and a fiber-to-the-home ("FTTH") network with approximately 9.8 million total passings as of December 31, 2024. Additionally, we offer news programming and advertising services.
Our footprint extends across 21 states (primarily in the New York metropolitan area and various markets in the south-central United States) through a fiber-rich hybrid-fiber coaxial ("HFC") broadband network and a fiber-to-the-home ("FTTH") network with approximately 10.0 million total passings as of December 31, 2025. Additionally, we offer news programming and advertising services.
Our CLEC subsidiaries' telecommunications services are subject to other FCC requirements, including protecting the use and disclosure of customer proprietary network information; meeting certain notice requirements in the event of service termination; compliance with disabilities access requirements; compliance with CALEA standards; outage reporting; and the payment of fees to fund local number portability administration and the North American Numbering Plan.
Telecommunications services provided through our CLEC subsidiaries and third-party service providers are subject to other FCC requirements, including protecting the use and disclosure of customer proprietary network information; meeting certain notice requirements in the event of service termination; compliance with disabilities access requirements; compliance with CALEA standards; outage reporting; and the payment of fees to fund local number portability administration and the North American Numbering Plan.
Depending on the service area and market, customers may receive either a set-top box DVR with the ability to record, pause and rewind live television or an enhanced Cloud DVR with remote-storage capability to record 15 shows simultaneously while watching any live or pre-recorded show, and pause and rewind live television with three storage capacity options to select from.
Depending on the service area and market, customers may receive either a set-top box DVR with the ability to record or an enhanced Cloud DVR with the ability to pause and rewind live television and remote-storage capability to record 15 shows simultaneously with three storage capacity options to select from.
We estimate that Verizon, together with other fiber-based service providers, are able to sell fiber-based services to approximately two-thirds of the households in our footprint in New York, New Jersey and Connecticut combined and that AT&T and other fiber-based service providers are able to sell fiber products to more than one-third of the households in various markets in our south-central United States service area.
We estimate that Verizon, together with other fiber-based service providers, is able to sell fiber-based services to over two-thirds of the households in our footprint in New York, New Jersey, and Connecticut combined and that AT&T and other fiber-based service providers are able to sell fiber products to approximately half of the households in various markets in our south-central United States service area.
Verizon has constructed a FTTH network that passes a significant number of households in our New York metropolitan service area; and AT&T has constructed a FTTP/Fiber to the Node infrastructure in various markets in our south-central United States service area.
Verizon has constructed a FTTH network that passes a significant number of households in our New York metropolitan service area, including through fiber assets acquired from Frontier; and AT&T has constructed a FTTP/Fiber to the Node infrastructure in various markets in our south-central United States service area.
Under the FCC's intercarrier compensation rules, we are entitled, in some cases, to compensation from carriers when they use our network to terminate or originate calls and in other cases are required to compensate another carrier for using its network to originate or terminate traffic.
Under the FCC's intercarrier compensation rules, we (directly or through third-party service providers) are entitled, in some cases, to compensation from carriers when they use our network to terminate or originate calls and in other cases are required to compensate another carrier for using its network to originate or terminate traffic.
Further, our Optimum Media business conducts limited business with customers that advertise in the EU and in the United Kingdom ("UK").
Our Optimum Media business conducts limited business with customers that advertise in the European Union ("EU") and in the United Kingdom ("UK").
Some of our programming contracts include such provisions. Exclusive Access to Multitenant Buildings. The FCC prohibits cable operators from entering into or enforcing exclusive agreements with owners of multitenant buildings under which the operator is the only multichannel video programming distributor ("MVPD") with access to the building.
The FCC prohibits cable operators from entering into or enforcing exclusive agreements with owners of multitenant buildings under which the operator is the only multichannel video programming distributor ("MVPD") with access to the building.
Business Services We offer a wide and growing variety of products and services to both large enterprise and small and medium-sized business ("SMB") customers, including broadband, telephony, networking and video services. As of December 31, 2024, we served approximately 376.6 thousand SMB customers across our footprint.
Business Services We offer a wide and growing variety of products and services to both large enterprise and small and medium-sized business ("SMB") customers, including broadband, telephony, networking, and video services. As of December 31, 4 2025, we served approximately 369.9 thousand SMB customers across our footprint.
Our video services also face competition from a number of other sources, including companies that deliver movies, television shows and other video programming, including extensive on demand, live content, serials, exclusive and original content, over broadband Internet connections to televisions, computers, tablets and mobile devices, such as Netflix, Hulu, Disney+, Apple TV+, YouTube TV, Amazon Prime, Sling TV, DirecTV Stream and others.
Our video services also face intense competition from companies that deliver movies, television shows, live sports, and other video programming, including extensive on demand, live content, serials, exclusive and original content, over broadband Internet connections to televisions, computers, tablets, and mobile devices, such as Netflix, Hulu, Disney+, Apple TV, YouTube TV, Amazon Prime, Sling TV, DirecTV (including its streaming service), and others.
News 12 also includes a streaming OTT regional news channel, News 12 New York, that showcases top stories and events from across the tri-state area. News 12 has been widely recognized by the news industry with numerous prestigious honors and awards, including multiple Emmy Awards, Edward R.
News 12 Networks also includes a streaming OTT regional news channel, News 12 New York, which showcases top stories and events from across the tri-state area. News 12 has been widely recognized by the news industry with numerous prestigious honors and awards, including multiple Emmy Awards, Edward R. Murrow Awards, NY Press Club Awards, and more.
In 2024, Kentucky, among other states, passed a comprehensive consumer privacy law. As with existing state consumer privacy laws in California, Virginia, and Connecticut, among other states, this law creates disclosure requirements, privacy protections, and consumer privacy rights for covered businesses. The Kentucky law will take effect January 1, 2026.
As with existing state consumer privacy laws in California, Virginia, and Connecticut, among other states, this law creates disclosure requirements, privacy protections and consumer privacy rights for covered businesses. The Kentucky law will take effect January 1, 2026. Similarly, the New Jersey legislature passed a comprehensive consumer privacy law in January 2024, which took effect January 16, 2025.
Consolidation among wholesale RAN access providers could impair our ability to sustain our mobile service and be competitive. Business Services Competition We operate in highly competitive business telecommunications market and compete primarily with local incumbent telephone companies, especially AT&T, Frontier, Lumen Technologies, Inc. ("Lumen") and Verizon, as well as with a variety of other national and regional business services competitors.
Consolidation among wholesale RAN access providers could impair our ability to sustain our mobile service and be competitive. Business Services Competition We operate in highly competitive business telecommunications market and compete primarily with local incumbent telephone companies, especially AT&T, Lumen Technologies, Inc.
For more information regarding risks related to our franchises, see "Risk Factors—Risk Factors Relating to Regulatory and Legislative Matters—Our cable system franchises are subject to non-renewal or termination." The failure to renew a franchise in one or more key markets could adversely affect our business.
For more information regarding risks related to our franchises, see "Risk Factors—Risk Factors Relating to Regulatory and Legislative Matters—Our cable system franchises are subject to non-renewal or termination." The failure to renew a franchise in one or more key markets could adversely affect our business. Proposals to streamline cable franchising have been adopted at both the federal and state levels.
The online content we provide is also subject to some of these laws. 16 Other forms of regulation of broadband Internet access service currently being considered by the FCC, Congress or state legislatures include consumer protection requirements, billing and notifications requirements, cybersecurity requirements, consumer service standards, requirements to contribute to universal service programs and requirements to protect personally identifiable customer data from theft.
Other forms of regulation of broadband Internet access service currently being considered by the FCC, Congress or state legislatures include consumer protection requirements, billing and notifications requirements, cybersecurity requirements, consumer service standards, requirements to contribute to universal service programs and requirements to protect personally identifiable customer data from theft.
Various other federal and state laws apply to providers of services that are accessible through broadband Internet access service, including copyright laws, telemarketing laws, prohibitions on obscenity, a ban on unsolicited commercial e-mail, and privacy and data security laws.
Various other federal and state laws apply to providers of services that are accessible through broadband Internet access service, including copyright laws, telemarketing laws, prohibitions on obscenity, a ban on unsolicited commercial e-mail, and privacy and data security laws. The online content we provide is also subject to some of these laws.
News and Advertising News 12 Our News 12 networks consist of seven 24-hour local news channels in the New York metropolitan area—the Bronx, Brooklyn, Connecticut, Hudson Valley, Long Island, New Jersey and Westchester—providing each with complete access to hyper-local breaking news, traffic, weather, sports, community news, and more.
News and Advertising News 12 News 12 Networks operates seven 24-hour local news channels across the New York tri-state area, including the Bronx, Brooklyn, Connecticut, Hudson Valley, Long Island, New Jersey, and Westchester, providing our viewers with complete access to hyper-local breaking news, traffic, weather, sports, community news, and more.
December 31, 2024 2023 2022 (in thousands) Total residential customer relationships: 4,173.7 4,363.1 4,498.5 Broadband 3,999.9 4,169.0 4,282.9 Video 1,880.1 2,172.4 2,439.0 Telephony 1,269.2 1,515.3 1,764.1 The following table shows our revenues for broadband, video, telephony and mobile services provided to residential customers.
December 31, 2025 2024 2023 (in thousands) Total residential customer relationships: 3,963.8 4,173.7 4,363.1 Broadband 3,811.4 3,999.9 4,169.0 Video 1,628.4 1,880.1 2,172.4 Telephony 1,041.6 1,269.2 1,515.3 The following table shows our revenues for broadband, video, telephony, and mobile services provided to residential customers.
Communications with our customers are also subject to FCC, FTC and state regulations on telemarketing and the sending of unsolicited commercial e-mail and fax messages, as well as additional privacy and data security requirements. State Regulation. Our CLEC subsidiaries' telecommunications services are subject to regulation by state commissions in each state where we provide services.
Communications with our customers are also subject to FCC, FTC and state regulations on telemarketing and the sending of unsolicited commercial e-mail and fax messages, as well as additional privacy and data security requirements. State Regulation.
We generally carry cable networks pursuant to written programming contracts, which continue for a fixed period of time, usually from two to five years, and are subject to negotiated renewal.
We obtain programming from a number of suppliers, including broadcast and cable networks. We generally carry cable networks pursuant to written programming contracts, which continue for a fixed period of time, typically from one to five years, and are subject to negotiated renewal.
Frontier offers DSL and FTTH broadband service and competes with us in most of our Connecticut service area, as well as parts of our Texas and West Virginia service areas.
As a result of Verizon's acquisition of Frontier, Verizon now offers DSL and FTTH broadband service and competes with us in most of our Connecticut service area, as well as parts of our Texas, West Virginia, Arizona, and California service areas.
AT&T, Frontier 9 Communications Parent, Inc. ("Frontier") and Verizon Communications Inc.'s ("Verizon") Fios are our primary fiber-based competitors. T-Mobile fixed wireless, Verizon fixed wireless and AT&T Internet Air are our primary wireless broadband competitors.
Our primary fiber-based competitors include AT&T and Verizon Communications Inc.'s ("Verizon") Fios (including the assets recently acquired from Frontier Communications Parent, Inc. ("Frontier")). T-Mobile fixed wireless, Verizon fixed wireless, and AT&T Internet Air are our primary wireless broadband competitors.
As of December 31, 2024, Lightpath had approximately 16,800 locations connected to its fiber network, which currently includes approximately 11,300 unique route miles (in each case, comprised of route miles that are owned by Lightpath or currently utilized by Lightpath pursuant to indefeasible right of use agreements with Altice USA and other parties).
As of December 31, 2025, Lightpath had approximately 17,700 locations connected to its fiber network, which includes approximately 12,000 unique route miles (in each case, comprised of route miles that are owned by Lightpath or currently utilized by Lightpath pursuant to indefeasible right of use agreements with Optimum Communications and other parties).
The FCC recently affirmed its existing ownership rules and extended the rule prohibiting the same television licensee from acquiring an affiliation with more than one of the "top four" networks in the same local market to include affiliation via a low power television station or one of the licensee's available programming streams on its broadcast signal.
Eighth Circuit Court of Appeals invalidated the FCC's rule prohibiting the same television licensee from acquiring an affiliation with more than one of the "top four" networks in the same local market to include affiliation via a low power television station or one of the licensee's available programming streams on its broadcast signal.
The following table presents certain financial data and metrics for Altice USA: Years ended December 31, 2024 2023 2022 (in thousands, except percentage data) Customer Relationships (a) 4,550.3 4,743.5 4,879.7 Revenue $ 8,954,417 $ 9,237,064 $ 9,647,659 Adjusted EBITDA (b) $ 3,413,181 $ 3,608,890 $ 3,866,537 Adjusted EBITDA as % of Revenue 38.1 % 39.1 % 40.1 % Net income (loss) attributable to Altice USA, Inc. stockholders $ (102,918) $ 53,198 $ 194,563 (a) Customer metrics do not include mobile-only customers.
The following table presents certain financial data and metrics for Optimum Communications: Years ended December 31, 2025 2024 2023 (in thousands, except percentage data) Customer Relationships (a) 4,333.6 4,550.3 4,743.5 Revenue $ 8,590,467 $ 8,954,417 $ 9,237,064 Adjusted EBITDA (b) $ 3,335,633 $ 3,413,181 $ 3,608,890 Adjusted EBITDA as % of Revenue 38.8 % 38.1 % 39.1 % Net income (loss) attributable to Optimum Communications stockholders $ (1,869,024) $ (102,918) $ 53,198 (a) Customer metrics do not include mobile-only customers.
Years Ended December 31, 2024 2023 2022 Residential revenue: (in thousands) Broadband $ 3,645,460 $ 3,824,472 $ 3,930,667 Video 2,896,600 3,072,011 3,281,306 Telephony 277,938 300,198 332,406 Mobile 117,084 77,012 61,832 Broadband Services We provide a variety of broadband service tiers tailored to meet the needs of our customers.
Years Ended December 31, 2025 2024 2023 Residential revenue: (in thousands) Broadband $ 3,542,230 $ 3,645,460 $ 3,824,472 Video 2,590,790 2,896,600 3,072,011 Telephony 253,677 277,938 300,198 Mobile 164,568 117,084 77,012 Broadband Services We provide a variety of broadband service tiers tailored to meet the needs of our customers.
We serve enterprise customers primarily through Cablevision Lightpath LLC ("Lightpath"), our 50.01% owned subsidiary. 4 Enterprise Customers Lightpath, our fiber enterprise business, provides ethernet, data transport, IP-based virtual private networks, Internet access, telephony services, including session-initiated protocol ("SIP") trunking and VoIP services to the business market primarily in the New York, Boston and Miami metropolitan areas.
Enterprise Customers Lightpath, our fiber enterprise business, provides ethernet, data transport, IP-based virtual private networks, Internet access, telephony services, including session-initiated protocol ("SIP") trunking and VoIP services to the business market primarily in the New York, Boston, and Miami metropolitan areas , and dark fiber and transport services in Phoenix, Columbus, and eastern Pennsylvania.
In 2015, the FCC adopted a rule establishing a presumption against rate regulation absent an affirmative showing by the franchising authority that there is an absence of effective competition. Based on the 2015 FCC rule, none of our video customers are currently subject to basic rate regulation.
In 2015, the FCC adopted a rule establishing a presumption against rate regulation absent an affirmative showing by the franchising authority that there is an absence of effective competition.
Cable network programming is usually 6 made available to us for a license fee, which is generally paid based on the number of customers who subscribe to the level of service that provides such programming. Such license fees may include "volume" discounts available for higher numbers of customers, as well as discounts for channel placement or service penetration.
Cable network programming is usually made available to us for a license fee, which is generally paid based on the number of customers who subscribe to the 6 level of service that provides such programming.
We compete for advertising revenue against, among others, local broadcast stations, national cable and broadcast networks, radio stations, print media, social network platforms (such as Facebook and Instagram), online advertising companies (such as Google), content providers (such as Disney), connected TV providers, advertising agencies (such as Omnicom Group), measurement platforms, and digital advertising platforms.
Competitors include local broadcast stations, national cable and broadcast networks, radio stations, print media, digital and social media platforms (such as Facebook and Instagram), online advertising companies (such as Google), retail media networks (such as Amazon), content providers (such as Disney), connected TV providers, advertising agencies (such as Omnicom Group), measurement platforms, digital advertising platforms and data providers.
Learning and Development We provide our leaders with development programs through the Optimum Leader framework, focusing on our three guiding principles: to set clear expectations and do what is right, drive ONE Optimum, and make it happen.
Learning and Development We provide our leaders with development programs through the Optimum Leader framework, focusing on our three guiding principles: to set clear expectations and do what is right, drive ONE Optimum, and make it happen. We also provide employees with tuition benefits to ensure access to educational resources they need to continue their development and pursue their goals.
In the wake of the Sixth Circuit decision, Congress may consider legislation codifying some form of “net neutrality” rules. The FCC or Congress could also address the extent to which states may also impose such rules or otherwise regulate broadband service. Digital Discrimination.
These state requirements currently remain in place notwithstanding the court decision overturning the FCC’s net neutrality rules. In the wake of the Sixth Circuit decision, Congress may consider legislation codifying some form of “net neutrality” rules. The FCC or Congress could also address the extent to which states may also impose such rules or otherwise regulate broadband service.
We may also charge additional fees for pay-per-view programming and events, DVR and certain VOD services. We also provide advanced services, such as pay-per-view and VOD, that give residential video customers control over when they watch their favorite programming.
We may also charge additional fees for pay-per-view programming and events, DVR, and certain VOD services. We also provide advanced services, such as VOD and pay-per-view, that give residential video customers control over when they watch their favorite programming. Our VOD service provides on-demand access to movies, special events, free prime time content, and general interest titles.
We have earned certifications by Great Place to Work®, a global authority on workplace culture, employee experience, and effective leadership. Additionally, we earned recognition from the Cablefax Top Ops Awards earning the Work Culture Award, and Built In included us among multiple Best Places to Work 2025 lists.
Additionally, we earned recognition from the Cablefax Top Ops Awards earning the Work Culture Award, and Built In included us among multiple Best Places to Work 2025 lists.
To support our mobile business, we have a nationwide mobile core network with multiple interconnection points (including Texas, California, Illinois, and two in New York), as well as the necessary interconnection points for our network partners T-Mobile and AT&T Inc.
This reclaimed analog bandwidth is being repurposed for other advanced services such as additional HDTV services and faster Internet access speeds. 8 To support our mobile business, we have a nationwide mobile core network with multiple interconnection points (including Texas, California, Illinois, and two in New York), as well as the necessary interconnection points for our network partners T-Mobile and AT&T Inc.
We also provide employees with tuition benefits to ensure access to educational resources they need to continue their development and pursue their goals. 11 Regulation General Company Regulation Our cable and other services are subject to a variety of federal, state and local law and regulations, as well as, in instances where we operate outside of the U.S., the laws and regulations of the countries and regions where we operate.
Regulation General Company Regulation Our cable and other services are subject to a variety of federal, state and local law and regulations, as well as, in instances where we operate outside of the U.S., the laws and regulations of the countries and regions where we operate.
Similarly, we must obtain music rights for locally originated programming and advertising from the major music performing rights organizations. These licensing fees have been the source of litigation in the past, and we cannot predict with certainty whether license fee disputes may arise in the future.
These licensing fees have been the source of litigation in the past, and we cannot predict with certainty whether license fee disputes may arise in the future.
We also offer our customers the ability to interact with us and get support through digital channels, whether via our website, chat, interactive voice support, text messaging, mobile app, or social media (X and Meta).
We also offer our customers the ability to interact with us and get support through digital channels, whether via our website, chat, interactive voice support, text messaging, mobile app, or social media. Customers can use our customer portal website and mobile app to manage and pay their bill online, obtain service and account information, and get self-help troubleshooting support.
Lightpath also provides managed services to businesses, including hosted telephony services (cloud based SIP-based private branch exchange), managed WiFi, managed desktop and server backup and managed collaboration services including audio and web conferencing.
In 2024, Lightpath acquired a fiber network between New York City and Ashburn, Virginia, as well as a metro network in New York City and New Jersey. Lightpath also provides managed services to businesses, including hosted telephony services (cloud based SIP-based private branch exchange), managed WiFi, managed desktop and server backup and managed collaboration services including audio and web conferencing.
The Communications Act includes a provision that requires the FCC to take certain steps to support the development of a retail market for "navigation devices," such as cable set-top boxes. Several years ago, the FCC began a proceeding to consider requiring cable operators to accommodate third-party navigation devices, which have imposed substantial development and operating requirements on the industry.
Several years ago, the FCC began a proceeding to consider requiring cable operators to accommodate third-party navigation devices, which have imposed substantial development and operating requirements on the industry.
Mobile Wireless Competition Our mobile wireless service faces competition from a number of national incumbent network-based mobile service providers, such as AT&T, T-Mobile and Verizon and smaller regional service providers, as well as a number of reseller or MVNO providers, such as Tracfone, Boost Mobile and Cricket Wireless, among others.
The increased number of technologies capable of carrying telephony services and the number of alternative communication options available to customers have intensified the competitive environment in which we operate our telephony services. 10 Mobile Wireless Competition Our mobile wireless service faces competition from a number of national incumbent network-based mobile service providers, such as AT&T, T-Mobile, and Verizon, and smaller regional service providers, as well as a number of reseller or MVNO providers, such as Tracfone, Boost Mobile, and Cricket Wireless, among others.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeRisk Factors Relating to Our Business • We operate in a highly competitive business environment. • We face significant risks as a result of rapid changes in technology, consumer expectations and behavior. • Programming and retransmission costs are increasing and disputes with programmers and the inability to retain or obtain popular programming can adversely affect our relationship with customers. • We may not be able to successfully implement our growth strategy. • The financial markets are subject to volatility and disruptions, which may adversely affect our business. • We are highly leveraged and have substantial indebtedness and may incur additional indebtedness. • We have in past periods incurred substantial losses from operations, and we may do so in the future. • A lowering or withdrawal of the ratings assigned to our subsidiaries' debt securities and credit facilities by ratings agencies may increase our future borrowing costs and reduce our access to capital. • Our subsidiaries' ability to meet obligations under their indebtedness may be restricted by limitations on our other subsidiaries' ability to send funds. • We are subject to significant restrictive covenants under the agreements governing our indebtedness. • We will need to raise significant amounts of funding over the next several years to fund capital expenditures, repay existing obligations and meet other obligations; we may also engage in extraordinary transactions that involve the incurrence of large amounts of indebtedness. • Changes or uncertainty in respect of interest rate benchmarks may affect our sources of funding. • We depend on third-party vendors for certain equipment, hardware, licenses and services in the conduct of our business. • Changes to trade policy, to the extent applicable to equipment we or our customers use, could adversely affect our business and results of operations. • Disruptions to our networks, infrastructure and facilities could impair our operating activities and negatively impact our reputation and financial results. • If we experience a significant cybersecurity incident or fail to detect and appropriately respond to a significant cybersecurity incident, our results of operations and reputation could suffer. • Issues related to the use of AI in our business could give rise to legal or regulatory action, damage our reputation or otherwise materially harm our business. • The terms of existing or new collective bargaining agreements can increase our expenses.
Biggest changeWe need to refinance or repay our debt obligations as they come due and otherwise comply with our obligations under the governing agreements, and failure to do so could materially adversely affect our business, financial condition, liquidity, and results of operations. • We have in past periods incurred substantial losses from operations, and we may do so in the future. • A lowering or withdrawal of the ratings assigned to our or our subsidiaries' debt securities and credit facilities by ratings agencies may increase our future borrowing costs and reduce our access to capital. • Our subsidiaries' ability to meet obligations under their indebtedness may be restricted by limitations on our other subsidiaries' ability to send funds. • We are subject to significant restrictive covenants under the agreements governing our indebtedness. • We will need to raise significant amounts of funding over the next several years to fund capital expenditures, repay existing indebtedness obligations and meet other obligations; we may also engage in extraordinary transactions that involve the incurrence of large amounts of indebtedness. • Changes or uncertainty in respect of interest rate benchmarks may affect our sources of funding. • We depend on third-party vendors for certain equipment, hardware, licenses, and services in the conduct of our business. • Changes to trade policy, to the extent applicable to equipment we or our customers use, could adversely affect our business and results of operations. • Disruptions to our networks, infrastructure, and facilities could impair our operating activities and negatively impact our reputation and financial results. • If we experience a significant cybersecurity incident or fail to detect and appropriately respond to a significant cybersecurity incident, our results of operations and reputation could suffer. • Issues related to the use of AI in our business could give rise to legal or regulatory action, damage our reputation or otherwise materially harm our business. • The terms of existing or new collective bargaining agreements can increase our expenses.
If we do not repay or refinance our debt obligations when they become due and do not otherwise comply with the covenants and restrictions in our indentures, credit facilities and other agreements governing our indebtedness, we would be in default under those agreements and the underlying debt could be declared immediately due and payable.
If we do not repay or refinance our debt obligations when they become due or do not otherwise comply with the covenants and restrictions in our indentures, credit facilities, and other agreements governing our indebtedness, we would be in default under those agreements and the underlying debt could be declared immediately due and payable.
A lowering or withdrawal of the ratings assigned to our subsidiaries' debt securities and credit facilities by ratings agencies may increase our future borrowing costs and reduce our access to capital. Credit rating agencies continually revise their ratings for companies they follow.
A lowering or withdrawal of the ratings assigned to our or our subsidiaries' debt securities and credit facilities by ratings agencies may increase our future borrowing costs and reduce our access to capital. Credit rating agencies continually revise their ratings for companies they follow.
Severe weather events and other natural disasters, including storms, floods, fires, tornadoes, rising sea levels, solar events, electromagnetic events, could result in severe business disruptions, property damage, prolonged service disruption, significant decreases in revenues and earnings, or significant additional costs, reputational and regulatory consequences.
Severe weather events and other natural disasters, including storms, floods, fires, tornadoes, rising sea levels, solar events, and electromagnetic events, could result in severe business disruptions, property damage, prolonged service disruption, significant decreases in revenues and earnings, or significant additional costs, reputational and regulatory consequences.
Our ability to undertake such actions could be restricted by regulatory and legislative efforts to impose so-called "net neutrality" requirements on broadband communication providers like us that provide broadband services. For more information, see "Regulation—Broadband." Our business depends on intellectual property rights and on not infringing on the intellectual property rights of others.
Our ability to undertake such actions could be restricted by regulatory and legislative efforts to impose so-called "net neutrality" requirements on broadband communication providers like us that provide broadband services. For more information, see "Business—Regulation—Broadband." Our business depends on intellectual property rights and on not infringing on the intellectual property rights of others.
Our overall leverage and the terms of our financing arrangements could also: • make it more difficult for us to satisfy obligations under our outstanding indebtedness; • limit our ability to obtain additional debt or equity financing in the future, including for working capital, capital expenditures or acquisitions, and increase the costs of such financing; • limit our ability to refinance our indebtedness on terms acceptable to us or at all; • limit our ability to adapt to changing market conditions; • restrict us from making strategic acquisitions or cause us to make non-strategic divestitures; • require us to dedicate a significant portion of our cash flow from operations to paying the principal of and interest on our indebtedness, thereby limiting the availability of our cash flow to fund future capital expenditures, working capital, research and development, and other corporate purposes; • increase our vulnerability to or limit our flexibility in planning for, or reacting to, changes in our business and the broadband communications industry generally as well as general economic conditions, including the risk of increased interest rates; • place us at a competitive disadvantage compared with competitors that have a less significant debt burden; and • adversely affect public perception of us and our brands.
Our overall leverage and the terms of our financing arrangements could also: • make it more difficult for us to satisfy obligations under our outstanding indebtedness; 28 • limit our ability to obtain additional debt or equity financing in the future, including for working capital, capital expenditures or acquisitions, and increase the costs of such financing; • limit our ability to refinance our indebtedness on terms acceptable to us or at all; • limit our ability to adapt to changing market conditions; • restrict us from making strategic acquisitions or cause us to make non-strategic divestitures; • require us to dedicate a significant portion of our cash flow from operations to paying the principal of and interest on our indebtedness, thereby limiting the availability of our cash flow to fund future capital expenditures, working capital, research and development, and other corporate purposes; • increase our vulnerability to or limit our flexibility in planning for, or reacting to, changes in our business and the broadband communications industry generally as well as general economic conditions, including the risk of increased interest rates; • place us at a competitive disadvantage compared with competitors that have a less significant debt burden; and • adversely affect public perception of us and our brands.
Risk Factors Relating to Regulatory and Legislative Matters • Our business is subject to extensive governmental legislation and regulation. • Our cable system franchises are subject to non-renewal or termination. • Our cable system franchises are non-exclusive. • Local franchising authorities have the ability to impose additional regulatory constraints on our business. • Further regulation of the cable industry could restrict our marketing options or impair our ability to raise rates. • We may be materially adversely affected by regulatory changes related to pole attachments and the regulatory environment related to pole attachments could impede our ability to expand into new markets. • Changes in channel carriage regulations could impose significant additional costs on us. • Increasing regulation of our Internet-based products and services could adversely affect our ability to provide new products and services. • Offering telephone services may subject us to additional regulatory burdens, causing us to incur additional costs. • Our mobile service exposes us to regulatory risk. • We may be materially adversely affected by regulatory, legal and economic changes relating to our physical plant. • We may be adversely affected if other parties are able to get government subsidies to overbuild our plant, or if subsidies we receive to construct facilities or support low-income subscribers are modified or run out .
Risk Factors Relating to Regulatory and Legislative Matters • Our business is subject to extensive governmental legislation and regulation. • Our cable system franchises are subject to non-renewal or termination. • Our cable system franchises are non-exclusive. • Local franchising authorities have the ability to impose additional regulatory constraints on our business. • Further regulation of the cable industry could restrict our marketing options or impair our ability to raise rates. • We may be materially adversely affected by regulatory changes related to pole attachments and the regulatory environment related to pole attachments could impede our ability to expand into new markets. • Changes in channel carriage regulations could impose significant additional costs on us. • Increasing regulation of our Internet-based products and services could adversely affect our ability to provide new products and services. • Offering telephone services may subject us to additional regulatory burdens, causing us to incur additional costs. • Our mobile service exposes us to regulatory risk. • We may be materially adversely affected by regulatory, legal, and economic changes relating to our physical plant. • We may be adversely affected if other parties are able to receive government subsidies to overbuild our plant, or if subsidies we receive to construct facilities or support low-income subscribers are modified or run out .
Our future growth, profitability and results of operations depend upon our ability to successfully implement our business strategy, which, in turn, is dependent upon a number of factors, including our ability to continue to: • simplify and optimize our organization; • reinvest in infrastructure and content; • invest in sales, marketing and innovation; • enhance the customer experience; • drive revenue and cash flow growth; and • opportunistically grow through value-accretive acquisitions.
Our future growth, profitability, and results of operations depend upon our ability to successfully implement our business strategy, which, in turn, is dependent upon a number of factors, including our ability to continue to: • simplify and optimize our organization; • reinvest in infrastructure and content; • invest in sales, marketing and innovation; • enhance the customer experience; • drive revenue and cash flow growth; and 26 • opportunistically grow through value-accretive acquisitions.
Under these rules, a company of which more than 50% of the voting power is held by an individual, group or another company is a "controlled company" and may elect not to comply with certain corporate governance requirements, including: • the requirement that a majority of our Board of Directors consists of "independent directors" as defined under the rules of the NYSE; and • the requirement that we have a governance and nominating committee.
Under these rules, a company of which more 44 than 50% of the voting power is held by an individual, group or another company is a "controlled company" and may elect not to comply with certain corporate governance requirements, including: • the requirement that a majority of our Board of Directors consists of "independent directors" as defined under the rules of the NYSE; and • the requirement that we have a governance and nominating committee.
To the extent we are unable to reach agreement with certain programmers on terms we believe are reasonable, we may be forced to, or determine for strategic or business reasons to, cease negotiations with such 24 programmers and remove the associated programming channels from our line-up and may decide to replace such programming channels with other programming channels, which may not be available on acceptable terms or be as attractive to customers.
To the extent we are unable to reach agreement with certain programmers on terms we believe are reasonable, we may be forced to, or determine for strategic or business reasons to, cease negotiations with such programmers and remove the associated programming channels from our line-up and may decide to replace such programming channels with other programming channels, which may not be available on acceptable terms or be as attractive to customers.
Moreover, expansion of our business into new areas, including areas where poles are operated by electric cooperatives or municipalities not subject to FCC or state regulation, may be frustrated by delays, capacity constraints, "makeready" 37 demands or the general inability to secure appropriate pole or conduit rights, as well as higher pole and conduit access costs.
Moreover, expansion of our business into new areas, including areas where poles are operated by electric cooperatives or municipalities not subject to FCC or state regulation, may be frustrated by delays, capacity constraints, "makeready" demands or the general inability to secure appropriate pole or conduit rights, as well as higher pole and conduit access costs.
Our video services also face competition from broadcast television stations, entities that make digital video recorded movies and programs available for home rental or sale, satellite master antenna television ("SMATV") systems, which generally serve large MDUs under an agreement with the landlord and service providers and open video 22 system operators.
Our video services also face competition from broadcast television stations, entities that make digital video recorded movies and programs available for home rental or sale, satellite master antenna television ("SMATV") systems, which generally serve large MDUs under an agreement with the landlord and service providers and open video system operators.
Labor disruptions could adversely affect our business, financial condition and results of operations. • A significant amount of our book value consists of intangible assets that may not generate cash in the event of a voluntary or involuntary sale. • We have engaged and may in the future engage in acquisitions, dispositions and other strategic transactions and the integration of such acquisitions, the sales of assets and other strategic transactions could materially adversely affect our business, financial condition and results of operations. • Significant unanticipated increases in the use of bandwidth-intensive Internet-based services could increase our costs. • Our business depends on intellectual property rights and on not infringing on others' intellectual property rights. • We may be liable for the material that content providers distribute over our networks. • If we are unable to retain and hire new key employees, our ability to manage our business could be adversely affected. 20 • Impairment of the Altice brand or Mr.
Labor disruptions could adversely affect our business, financial condition, and results of operations. • A significant amount of our book value consists of intangible assets that may not generate cash in the event of a voluntary or involuntary sale. • We have engaged and may in the future engage in acquisitions, dispositions, and other strategic transactions and the integration of such acquisitions, the sales of assets, and other strategic transactions could materially adversely affect our business, financial condition, and results of operations. • Significant unanticipated increases in the use of bandwidth-intensive Internet-based services could increase our costs. • Our business depends on intellectual property rights and on not infringing on others' intellectual property rights. • We may be liable for the material that content providers distribute over our networks. 21 • If we are unable to retain and hire new key employees, our ability to manage our business could be adversely affected. • Impairment of the Altice brand or Mr.
This could 39 over time reduce the number of shares of Class B common stock outstanding and potentially further concentrate voting power with remaining holders of Class B common stock. Our stockholders' percentage ownership in us may be diluted by future issuances of capital stock, which could reduce their influence over matters on which stockholders vote.
This could over time reduce the number of shares of Class B common stock outstanding and potentially further concentrate voting power with remaining holders of Class B common stock. Our stockholders' percentage ownership in us may be diluted by future issuances of capital stock, which could reduce their influence over matters on which stockholders vote.
From December 31, 2021 through June 1, 2024, the ACP provided broadband providers with a monthly reimbursement of up to $30 (up to $75 in Tribal areas) to offset the costs of providing a subscriber bill credit for broadband service to qualified ACP-enrolled low-income households. Funding for the ACP ended on June 1, 2024.
From December 31, 2021 through June 1, 2024, the ACP provided broadband providers with a monthly reimbursement of up to $30 (up to $75 in Tribal areas) to offset the costs of providing a subscriber bill credit for 41 broadband service to qualified ACP-enrolled low-income households. Funding for the ACP ended on June 1, 2024.
Among other things, the limitation of copyright liability for network 33 operators with respect to materials transmitted over their networks is conditioned upon the network operators’ terminating the accounts of repeat infringers in certain circumstances, and the law is unsettled as to the circumstances in which such termination is required to maintain the operator’s limitation of liability.
Among other things, the limitation of copyright liability for network operators with respect to materials transmitted over their networks is conditioned upon the network operators’ terminating the accounts of repeat infringers in certain circumstances, and the law is unsettled as to the circumstances in which such termination is required to maintain the operator’s limitation of liability.
Our 27 credit rating (including the credit rating assigned to our subsidiaries’ debt securities and credit facilities) has in the past been and may continue to be impacted by a number of factors, including the state of the U.S. economy, factors affecting the broadband communications and video service industry, our operating performance and our financing activities.
Our credit rating (including the credit rating assigned to our subsidiaries’ debt securities and credit facilities) has in the past been and may continue to be impacted by a number of factors, including the state of the U.S. economy, factors affecting the broadband communications and video service industry, our operating performance, and our financing activities.
Additionally, in order 34 to contain this problem, we may have to implement elaborate and costly security and antipiracy measures, which could result in significant expenses and losses of revenue. There can be no assurance that even the highest levels of security and anti-piracy measures will prevent piracy.
Additionally, in order to contain this problem, we may have to implement elaborate and costly security and antipiracy measures, which could result in significant expenses and losses of revenue. There can be no assurance that even the highest levels of security and anti-piracy measures will prevent piracy.
In response to recent data breaches and increasing concerns regarding the protection of consumers' personal information, Congress, states, and regulatory agencies are considering the adoption of new privacy and data security laws and regulations that could result in additional privacy, as well as network and information security, requirements for our business.
In response to recent data breaches and increasing concerns regarding the protection of 37 consumers' personal information, Congress, states and regulatory agencies are considering the adoption of new privacy and data security laws and regulations that could result in additional privacy, as well as network and information security, requirements for our business.
Federal and state law and regulations require ILECs to enter into such agreements and provide facilities and services necessary for connection, at prices subject to regulation. The specific price, terms and conditions of each agreement, however, depend on the outcome of negotiations between us and each ILEC.
Federal and state law and regulations 24 require ILECs to enter into such agreements and provide facilities and services necessary for connection, at prices subject to regulation. The specific price, terms, and conditions of each agreement, however, depend on the outcome of negotiations between us and each ILEC.
Our smaller customer base relative to our competitors may limit our ability to negotiate lower per-customer programming costs, which could result in reduced operating margins relative to our competitors with a larger customer base. The expiration dates of our various programming contracts are staggered, which results in the expiration of a portion of our programming contracts throughout each year.
Our smaller customer base relative to our competitors may limit our ability to negotiate lower per-customer 25 programming costs, which could result in reduced operating margins relative to our competitors with a larger customer base. The expiration dates of our various programming contracts are staggered, which results in the expiration of a portion of our programming contracts throughout each year.
Our advertising business faces competition from traditional and non-traditional media outlets, such as television and radio stations, traditional print media and the Internet, including Meta, Google and others. 23 We face significant risks as a result of rapid changes in technology, consumer expectations and behavior.
Our advertising business faces competition from traditional and non-traditional media outlets, such as television and radio stations, traditional print media, and the Internet, including Meta, Google, and others. We face significant risks as a result of rapid changes in technology, consumer expectations and behavior.
These developments may cause us to renegotiate some of these agreements and may have an adverse effect on our financial condition and results of operations. We depend on third-party vendors for certain equipment, hardware, licenses and services in the conduct of our business.
These developments could cause us to renegotiate some of these agreements and may have an adverse effect on our financial condition and results of operations. We depend on third-party vendors for certain equipment, hardware, licenses and services in the conduct of our business.
However, if such measures were to become necessary, there can be no assurance that we would be able 26 to sell sufficient assets or raise strategic investment capital sufficient to meet our scheduled debt maturities as they come due.
However, if such measures were to become necessary, there can be no assurance that we would be able to sell sufficient assets or raise strategic investment capital sufficient to meet our scheduled debt maturities as they come due.
In the United 29 States, the Alternative Reference Rates Committee proposed the Term Secured Overnight Financing Rate ("Term SOFR") as an alternative to LIBOR for use in contracts that were indexed to U.S. dollar LIBOR and proposed a phased market transition plan to Term SOFR.
In the United States, the Alternative Reference Rates Committee proposed the Term Secured Overnight Financing Rate ("Term SOFR") as an alternative to LIBOR for use in contracts that were indexed to U.S. dollar LIBOR and proposed a phased market transition plan to Term SOFR.
These and other economic factors could adversely affect demand for our products, which in turn could adversely affect our financial condition and results of operations. Online piracy of entertainment and media content could result in reduced revenues and increased expenditures which could materially harm our business, financial condition and results of operations.
These and other economic factors could adversely affect demand for our products, which in turn could adversely affect our financial condition and results of operations. 36 Online piracy of entertainment and media content could result in reduced revenues and increased expenditures which could materially harm our business, financial condition, and results of operations.
It remains unclear precisely to what extent federal and state regulators will subject VoIP services to traditional telephone service regulation. Expanding our 38 offering of these services may require us to obtain certain authorizations, including federal and state licenses.
It remains unclear precisely to what extent federal and state regulators will subject VoIP services to traditional telephone service regulation. Expanding our offering of these services may require us to obtain certain authorizations, including federal and state licenses.
While neither the FCC nor states currently regulate the price for broadband services generally, the state of New York enacted legislation that would regulate the price and terms for the broadband service offered to low-income households.
While neither the FCC nor states currently regulate the price for broadband services generally, the state of 40 New York enacted legislation that would regulate the price and terms for the broadband service offered to low-income households.
The FCC has adopted rules that streamline entry for new competitors (including 36 those affiliated with telephone companies) and reduce franchising burdens for these new entrants.
The FCC has adopted rules that streamline entry for new competitors (including those affiliated with telephone companies) and reduce franchising burdens for these new entrants.
The FCC subsequently extended more modest relief to incumbent cable operators like us, affirming that the Communications Act bars states and localities from exercising their cable franchising authority to regulate cable operators’ non-cable services, and subjecting certain fees for access to the right-of-way and certain in-kind payments obligations to the statutory cap on franchise fees.
The FCC subsequently extended more modest relief to incumbent cable operators like Optimum Communications, affirming that the Communications Act bars states and localities from exercising their cable franchising authority to regulate cable operators’ non-cable services, and subjecting certain fees for access to the right-of-way and certain in-kind payments obligations to the statutory cap on franchise fees.
Any of these events, if experienced by or directed at us or technologies or assets upon which we depend, could have adverse consequences on our network, infrastructure or facilities, as well as our customers and business, including 30 degradation of service, service disruption, excessive call volume to call centers, and damage to our or our customers’ equipment and data.
Any of these events, if experienced by or directed at us or technologies or assets upon which we depend, could have adverse consequences on our network, infrastructure or facilities, as well as our customers and business, including 32 degradation of service, service disruption, excessive call volume to call centers, and damage to our or our customers’ equipment and data.
Risk Factors Relating to Ownership of Our Class A Common Stock and Class B Common Stock • An active, liquid trading market for our Class B common stock has not developed and we cannot assure you that an active, liquid trading market will develop in the future. • Our stockholders' percentage ownership in us may be diluted by future issuances of capital stock. • We have no current plans to pay cash dividends on our Class A common stock or Class B common stock for the foreseeable future. • Future sales, or the perception of future sales, by us or our existing stockholders in the public market could cause the market price of our Class A common stock to decline. • The tri-class structure of Altice USA common stock has the effect of concentrating voting control with Next Alt. • Next Alt controls us and its interests may conflict with ours or our stockholders in the future. • Anti-takeover provisions in our organizational documents could prevent a change of control transaction. • Holders of a single class of Altice USA common stock may not have any remedies if an action by our directors has an adverse effect on only that class of Altice USA common stock. • We are a "controlled company" within the meaning of the rules of the New York Stock Exchange ("NYSE"). • If securities or industry analysts do not publish research or reports about our business, if they adversely change their recommendations regarding our Class A common stock, or if our operating results do not meet their expectations, the market price of our Class A common stock could decline. • We have been subject to securities class action litigation in the past and could be subject to securities class action litigation in the future. • Our amended and restated bylaws provide that the Court of Chancery of the State of Delaware is the exclusive forum for substantially all disputes between us and our stockholders. 21 Risk Factors Relating to Our Business We operate in a highly competitive business environment which could materially adversely affect our business, financial condition, results of operations and liquidity.
Risk Factors Relating to Ownership of Our Class A Common Stock and Class B Common Stock • An active, liquid trading market for our Class B common stock has not developed and we cannot assure you that an active, liquid trading market will develop in the future. • Our stockholders' percentage ownership in us may be diluted by future issuances of capital stock. • We have no current plans to pay cash dividends on our Class A common stock or Class B common stock for the foreseeable future. • Future sales, or the perception of future sales, by us or our existing stockholders in the public market could cause the market price of our Class A common stock to decline. • The tri-class structure of Optimum Communications common stock has the effect of concentrating voting control with Next Alt. • Next Alt controls us and its interests may conflict with ours or our stockholders in the future. • Anti-takeover provisions in our organizational documents could prevent a change of control transaction. • Holders of a single class of Optimum Communications common stock may not have any remedies if an action by our directors has an adverse effect on only that class of Optimum Communications common stock. • We are a "controlled company" within the meaning of the rules of the New York Stock Exchange ("NYSE"). • If securities or industry analysts do not publish research or reports about our business, if they adversely change their recommendations regarding our Class A common stock, or if our operating results do not meet their expectations, the market price of our Class A common stock could decline. • We have been subject to securities class action litigation in the past and could be subject to securities class action litigation in the future. • Our amended and restated bylaws provide that the Court of Chancery of the State of Delaware is the exclusive forum for substantially all disputes between us and our stockholders. 22 Risk Factors Relating to Our Business and Our Indebtedness We operate in a highly competitive business environment which could materially adversely affect our business, financial condition, results of operations, and liquidity.
In the longer term, our ability to fund our operations, make planned capital expenditures, make scheduled payments on our indebtedness and repay our indebtedness depends on our future operating performance and cash flows and our ability to access the capital markets, which, in turn, are subject to prevailing economic conditions and to financial, business and other factors, some of which are beyond our control.
Our ability to fund our operations, make planned capital expenditures, make scheduled payments on our indebtedness and repay our indebtedness depends on our future operating performance and cash flows and our ability to access the capital markets, which, in turn, are subject to prevailing economic conditions and to financial, business, and other factors, some of which are beyond our control.
In addition, certain telephone companies and competitive broadband providers have obtained or are seeking authority to operate in communities through a local franchise or other form of right-of-way authority. As a result, competing operators may build systems in areas in which we hold franchises.
In addition, certain telephone companies, wholesale infrastructure providers and competitive broadband providers have obtained or are seeking authority to operate in communities through a local franchise or other form of right-of-way authority. As a result, competing operators may build systems in areas in which we hold franchises.
We operate in all of these industries and are therefore subject to, among other things: • rules governing the provisioning and marketing of cable equipment and compatibility with new digital technologies; • rules governing the manner in which we advertise, market or price our products and services in the marketplace, and how we position those products and services against competing products and services; • rules and regulations relating to data protection and customer and employee privacy; • rules establishing limited rate regulation of video service; • rules governing the copyright royalties that must be paid for retransmitting broadcast signals; • rules governing when a cable system must carry a particular broadcast station and when it must first obtain retransmission consent to carry a broadcast station; • rules governing the provision of channel capacity to unaffiliated commercial leased access programmers; • rules limiting the ability to enter into exclusive agreements with MDUs and control inside wiring; • rules for cable franchise renewals and transfers; • other requirements covering a variety of operational areas such as equal employment opportunity, emergency alert systems, disability access, technical standards and customer service and consumer protection requirements; • rules, regulations and regulatory policies relating to the provision of broadband service, including "net neutrality" requirements; • rules, regulations and regulatory policies relating to the provision of telephony services; and • rules, regulations and regulatory policies relating to licensed mobile network operators, wholesale access to mobile networks by resellers or MVNOs, and regulation of the prices, terms, or service provided by mobile operators.
We operate in all of these industries and are therefore subject to, among other things: • rules governing the provisioning and marketing of cable equipment and compatibility with new digital technologies; • rules governing the manner in which we advertise, market or price our products and services in the marketplace, and how we position those products and services against competing products and services; • rules and regulations relating to data protection and customer and employee privacy; • rules establishing limited rate regulation of video service; • rules governing the copyright royalties that must be paid for retransmitting broadcast signals; • rules governing when a cable system must carry a particular broadcast station and when it must first obtain retransmission consent to carry a broadcast station; • rules governing the provision of channel capacity to unaffiliated commercial leased access programmers; • rules limiting the ability to enter into exclusive agreements with MDUs and control inside wiring; • rules for cable franchise renewals and transfers; • other requirements covering a variety of operational areas such as equal employment opportunity, emergency alert systems, disability access, technical standards and customer service and consumer protection requirements; • rules, regulations, and regulatory policies relating to the provision of broadband service, including requirements to participate in programs offering reduced broadband prices to low-income households and "net neutrality" requirements; • rules, regulations, and regulatory policies relating to the provision of telephony services; and • rules, regulations, and regulatory policies relating to licensed mobile network operators, wholesale access to mobile networks by resellers or MVNOs, and regulation of the prices, terms, or service provided by mobile operators.
New York and New Jersey each has in place an executive order that requires entities contracting with state agencies to commit to and certify compliance with net neutrality principles across the market. These state net neutrality requirements currently remain in place notwithstanding the court decision overturning the FCC’s net neutrality rules.
New York and New Jersey each have in place an executive order that requires entities contracting with state agencies to commit to and certify compliance with net neutrality principles across the market. These state net neutrality requirements currently remain in place notwithstanding the court decision overturning the FCC’s net neutrality rules.
We may increase our consolidated indebtedness for various business reasons, which might include, among others, financing acquisitions or other strategic transactions, funding prepayment premiums, if any, on the debt we refinance, funding distributions to our shareholders or general corporate purposes.
We may increase our consolidated indebtedness for various business reasons, which might include, among others, financing acquisitions or other strategic transactions and initiatives, funding prepayment premiums, if any, on the debt we refinance, funding distributions to our shareholders or general corporate purposes.
We also compete against VoIP providers like Vonage, Skype, Facetime, WhatsApp and magicJack that do not own networks but can provide service to any person with a broadband connection, in some cases free of charge. Our telephony services also face competition from substitute services such as SMS, chat, Apple Messaging, WhatsApp and similar communications services.
We also compete against VoIP providers like Vonage, Microsoft Teams, Facetime, WhatsApp, and magicJack that do not own networks but can provide service to any person with a broadband connection, in some cases free of charge. Our telephony services also face competition from substitute services such as SMS, chat, Apple Messaging, WhatsApp and similar communications services.
In addition, any significant reduction in necessary capital expenditures could adversely affect our ability to retain our existing customer base and obtain new customers, which would adversely affect our business, financial position and results of operations.
In addition, any significant reduction in necessary operating or capital expenditures could adversely affect our ability to retain our existing customer base and obtain new customers, which would adversely affect our business, financial position, and results of operations.
In addition, we compete against ILECs, other CLECs and long-distance voice-service companies for large commercial and enterprise customers. While we compete with the ILECs, we also enter into interconnection agreements with ILECs so that our customers can make and receive calls to and from customers served by the ILECs and other telecommunications providers.
In addition, we compete against ILECs, other CLECs, IP-enabled communications service providers, and long-distance voice-service companies for large commercial and enterprise customers. While we compete with the ILECs, we also enter into interconnection agreements with ILECs so that our customers can make and receive calls to and from customers served by the ILECs and other telecommunications providers.
Interconnection agreements are also subject to approval by the state regulatory commissions, which may arbitrate negotiation impasses. We have entered into interconnection agreements with Verizon for New York, New Jersey and portions of Connecticut, and with Frontier for portions of Connecticut, which have been approved by the respective state commissions.
Interconnection agreements are also subject to approval by the state regulatory commissions, which may arbitrate negotiation impasses. We have entered into interconnection agreements with Verizon for New York, New Jersey, and portions of Connecticut (including agreements with former Frontier operations for portions of Connecticut), which have been approved by the respective state commissions.
The Permanent Internet Tax Freedom Act prohibits many taxes on Internet access service and the Federal Communications Commission has issued orders affirming that states and localities may not exercise their franchising authority to regulate our non-cable services, but certain states and localities are considering new taxes and fees on our provision of cable, broadband, and telecommunications taxes that could increase operating expenses.
The Permanent Internet Tax Freedom Act prohibits many taxes on Internet access service and the FCC has issued orders affirming that states and localities may not exercise their franchising authority to regulate our non-cable services, but certain states and localities are considering new taxes and fees on our provision of cable, broadband and telecommunications taxes that could increase operating expenses.
Drahi, will be able to significantly influence the composition of our Board of Directors and thereby influence our policies and operations, including the appointment of management, future issuances of Altice USA common stock or other securities, the payment of dividends, if any, on Altice USA common stock, the incurrence or modification of debt by us, amendments to our amended and restated certificate of incorporation and amended and restated bylaws and the entering into extraordinary transactions, and their interests may not in all cases be aligned with our stockholders' interests.
Drahi, will be able to significantly influence the composition of our Board of Directors and thereby influence our policies and operations, including the appointment of management, future issuances of Optimum Communications common stock or other securities, the payment of dividends, if any, on Optimum Communications common stock, the incurrence or modification of debt by us, amendments to our amended and restated certificate of incorporation and amended and restated bylaws and the entering into extraordinary transactions, and their interests may not in all cases be aligned 43 with our stockholders' interests.
We operate in a highly competitive, consumer-driven industry and we compete against a variety of broadband, video and telephony providers and delivery systems, including broadband communications companies, wireless data and telephony providers, fiber-based service providers, satellite-delivered video providers, Internet-delivered video content and broadcast television signals available to residential and business customers in our service areas.
We operate in a highly competitive, consumer-driven industry and we compete against a variety of broadband, video, mobile, fixed wireless broadband and fixed-line telephony providers and delivery systems, including broadband communications companies, wireless data and telephony providers, fiber-based service providers, satellite-based connectivity providers, Internet-delivered video content and broadcast television signals available to residential and business customers in our service areas.
Thereafter, the interest rate on outstanding synthetic USD LIBOR-linked borrowings will become linked to the alternate base rate, where the alternative base rate is the greater of (x) the prime rate or (y) the federal funds effective rate plus 50 basis points.
Thereafter, the interest rate on outstanding synthetic USD LIBOR-linked borrowings became linked to the alternate base rate, where the alternative base rate is the greater of (x) the prime rate or (y) the federal funds effective rate plus 50 basis points.
Volatility in the capital markets may be impacted by a number of factors. Some of the main factors which have recently contributed to capital markets volatility include, but are not limited to, inflationary pressures, the outlook for interest rates, and the military conflicts 25 between Russia and Ukraine and in the Middle East.
Volatility in the capital markets may be impacted by a number of factors. Some of the main factors which have recently contributed to capital markets volatility include, but are not limited to, inflationary pressures, the outlook for interest rates, the military conflicts between Russia and Ukraine and in the Middle East, and other geopolitical events.
Our business has grown significantly as a result of acquisitions, which entail numerous risks including: • distraction of our management team in identifying potential acquisition targets, conducting due diligence and negotiating acquisition agreements; • difficulties in integrating the operations, personnel, products, technologies and systems of acquired businesses; • difficulties in enhancing our customer support resources to adequately service our existing customers and the customers of acquired businesses; • the potential loss of key employees or customers of the acquired businesses; • unanticipated liabilities or contingencies of acquired businesses; • unbudgeted costs which we may incur in connection with pursuing potential acquisitions which are not consummated; • failure to achieve projected cost savings or cash flow from acquired businesses, which are based on projections that are inherently uncertain; • fluctuations in our operating results caused by incurring considerable expenses to acquire and integrate businesses before receiving the anticipated revenues expected to result from the acquisitions; and • difficulties in obtaining regulatory approvals required to consummate acquisitions, or costs associated with obtaining such approvals in the form of additional expenses or ongoing conditions on the operation of the business. 32 We also participate in competitive bidding processes, some of which may involve significant cable systems.
Our business has grown significantly as a result of acquisitions, which entail numerous risks including: • distraction of our management team in identifying potential acquisition targets, conducting due diligence, and negotiating acquisition agreements; • difficulties in integrating the operations, personnel, products, technologies, and systems of acquired businesses; • difficulties in enhancing our customer support resources to adequately service our existing customers and the customers of acquired businesses; • the potential loss of key employees or customers of the acquired businesses; • unanticipated liabilities or contingencies of acquired businesses; • unbudgeted costs which we may incur in connection with pursuing potential acquisitions which are not consummated; • failure to achieve projected cost savings or cash flow from acquired businesses, which are based on projections that are inherently uncertain; • fluctuations in our operating results caused by incurring considerable expenses to acquire and integrate businesses before receiving the anticipated revenues expected to result from the acquisitions; and 34 • difficulties in obtaining regulatory approvals required to consummate acquisitions, or costs associated with obtaining such approvals in the form of additional expenses or ongoing conditions on the operation of the business.
These 5G FWB services from T-Mobile and Verizon, for example, in addition to services such as 4G, LTE and other 5G (and variants) wireless broadband services and WiFi networks, and devices such as wireless data cards, tablets and smartphones, and mobile wireless routers that connect to such devices, also compete with our broadband services both for in premises broadband service and mobile broadband.
These 5G FWA services from T-Mobile and Verizon, for example, in addition to services such as 4G, LTE, and other 5G (and variants) wireless broadband services and WiFi networks, as well as devices such as wireless data cards, tablets, and smartphones, and mobile wireless routers that connect to such devices, also compete with our broadband services both for on premises broadband service and mobile broadband.
We estimate that Verizon, together with other fiber-based service providers, are able to sell fiber-based services to approximately two-thirds of the households in our footprint in New York, New Jersey and Connecticut combined and may expand these and other service offerings to more customers in the future.
We estimate that Verizon, together with other fiber-based service providers, is able to sell fiber-based services to over two-thirds of the households in our footprint in New York, New Jersey, and Connecticut combined and may expand these and other service offerings to more customers in the future.
There can be no assurance that market conditions will not continue to be volatile or worsen in the future.
There can be no assurance that market conditions will not be volatile or worsen in the future.
The disparate voting rights of Altice USA common stock may also prevent or discourage unsolicited acquisition proposals or offers for our capital stock that our stockholders may feel are in their best interest as one of our stockholders.
The disparate voting rights of Optimum Communications common stock may also prevent or discourage unsolicited acquisition proposals or offers for our capital stock that our stockholders may feel are in their best interest as one of our stockholders.
Under Delaware law, the board of directors has a duty to act with due care and in the best interests of all of our stockholders, including the holders of all classes of Altice USA common stock.
Under Delaware law, the board of directors has a duty to act with due care and in the best interests of all of our stockholders, including the holders of all classes of Optimum Communications common stock.
As a result, in some circumstances, our Board of Directors may be required to make a decision that could be viewed as adverse to the holders of one class of Altice USA common stock.
As a result, in some circumstances, our Board of Directors may be required to make a decision that could be viewed as adverse to the holders of one class of Optimum Communications common stock.
Holders of a single class of Altice USA common stock may not have any remedies if an action by our directors has an adverse effect on only that class of Altice USA common stock.
Holders of a single class of Optimum Communications common stock may not have any remedies if an action by our directors has an adverse effect on only that class of Optimum Communications common stock.
We also face increasing competition from AT&T and other fiber-based service providers in various markets in our south-central United States service area, who we estimate are currently able to sell fiber products to more than one-third of these households.
We also face increasing competition from AT&T and other fiber-based service providers in various markets in our south-central United States service area, who we estimate are currently able to sell fiber products to approximately half of these households.
Our ability to attract and retain customers depends, in part, upon the external perceptions of Altice USA, which in turn may be affected by the Altice brand and Mr. Drahi's reputation and the quality of Altice products outside the U.S. and corporate and management integrity.
Our ability to attract and retain customers depends, in part, upon the external perceptions of Optimum Communications, which in turn may be affected by the Altice brand and Mr. Drahi's reputation and the quality of Altice products outside the U.S. and corporate and management integrity due to our historic Altice brand affiliation.
As of February 7, 2025, Next Alt and other entities controlled by Patrick Drahi own or have the right to vote approximately 41% of our issued and outstanding Class A and Class B common stock, which represents approximately 94% of the voting power of our outstanding capital stock.
As of February 6, 2026, Next Alt and other entities controlled by Patrick Drahi own or have the right to vote approximately 40% of our issued and outstanding Class A and Class B common stock, which represents approximately 94% of the voting power of our outstanding capital stock.
Decreases in our revenues or increases in operating costs (and corresponding reduction in our cash flows) would therefore adversely affect our ability to make interest or principal payments on our indebtedness as they come due.
Decreases in our revenues combined with stable or increased operating costs (and corresponding reduction in our cash flows) would therefore adversely affect our ability to make interest or principal payments on our indebtedness as they come due.
As of December 31, 2024, approximately 400 of our employees were represented by either the Communications Workers of America ("CWA") or the International Brotherhood of Electrical Workers ("IBEW").
As of December 31, 2025, approximately 380 of our employees were represented by either the Communications Workers of America ("CWA") or the International Brotherhood of Electrical Workers ("IBEW").
If any infringement or other intellectual property claim made against us by any third-party is successful, if we are required to indemnify a customer with respect to a claim against the customer, or if we fail to modify our business, develop non-infringing technology, use alternate technology or license the proprietary rights on commercially reasonable terms and conditions, our business, financial condition and results of operations could be materially adversely affected.
If any infringement or other intellectual property claim made against us by any third-party is successful, if we are required to indemnify a customer with respect to a claim against the customer, or if we fail to modify our business, develop non-infringing technology, use alternate technology or license the proprietary rights on commercially reasonable terms and conditions, our business, financial condition, and results of operations could be materially adversely affected. 35 We may be liable for the material that content providers distribute over our networks.
A significant amount of our book value consists of intangible assets that may not generate cash in the event of a voluntary or involuntary sale. At December 31, 2024, we reported approximately $31.7 billion of consolidated total assets, of which approximately $22.2 billion were intangible.
A significant amount of our book value consists of intangible assets that may not generate cash in the event of a voluntary or involuntary sale. At December 31, 2025, we reported approximately $30.7 billion of consolidated total assets, of which approximately $20.3 billion were intangible.
For example, we face intense competition from Verizon, which has constructed FTTH network infrastructure that passes a significant number of households in our New York metropolitan service area.
For example, we face intense competition from Verizon, which has constructed FTTH network infrastructure that passes a significant number of households in our New York metropolitan service area, including through fiber assets acquired from Frontier.
Economic downturns may also impact our ability to comply with the covenants and restrictions in our indentures, credit facilities and other agreements governing our indebtedness and may impact our ability to pay or refinance our indebtedness as it comes due.
Further, downturns in our business, our industry or the economy generally may also impact our ability to comply with the covenants and restrictions in our indentures, credit facilities, and other agreements governing our indebtedness and may impact our ability to pay or refinance our indebtedness as it comes due.
Additionally, AI technologies are complex and rapidly evolving. While we aim to develop and use AI responsibly and attempt to identify and mitigate ethical and legal issues presented by its use, we may be unsuccessful in identifying or resolving issues before they arise.
While we aim to develop and use AI responsibly and attempt to identify and mitigate ethical and legal issues presented by its use, we may be unsuccessful in identifying or resolving issues before they arise.
If immigration laws are changed or if new and more restrictive government regulations are enacted or enforcement is increased, our access to qualified and skilled professionals may be limited. Impairment of the Altice brand or Mr. Drahi's reputation could adversely affect current and future customers' perception of Altice USA.
If immigration laws are changed or if new and more restrictive government regulations are enacted or enforcement is increased, our access to qualified and skilled professionals may be limited. Impairment of the Altice brand or Mr. Drahi's reputation could adversely affect current and future customers' and other stakeholders' perception of Optimum Communications, which was formerly known as Altice USA.
We have existing collective bargaining agreements with the CWA and IBEW that cover these unionized employees in New York, New Jersey and West Virginia, which expire at various times between February 2026 through April 2027.
We have existing collective bargaining agreements (each, a "CBA") with the CWA and IBEW, which cover the majority of the unionized employees in New York, New Jersey, and West Virginia, and which expire at various times between February 2026 through April 2027.
Such disruptions could require us to take measures to conserve cash or impede or delay potential acquisitions, strategic transactions and refinancing transactions until the markets stabilize or until alternative credit arrangements or other funding for our business needs can be arranged. We are highly leveraged and have substantial indebtedness, which reduces our capability to withstand adverse developments or business conditions.
Such disruptions could require us to take measures to conserve cash or impede or delay potential acquisitions, strategic transactions, and refinancing transactions until the markets stabilize or until alternative credit arrangements or other funding for our business needs can be arranged. 27 We are highly leveraged and have substantial indebtedness, which must be repaid or refinanced periodically.
Drahi's reputation could adversely affect current and future customers', regulators', investors' and others' perception of Altice USA. Macroeconomic developments may adversely affect our business. Our performance is subject to global economic conditions and the related impact on consumer spending levels.
Drahi's reputation could adversely affect current and future customers', regulators', investors', and others' perception of Optimum Communications during and after its transition from the Altice USA affiliation to the Optimum brand. Macroeconomic developments may adversely affect our business. Our performance is subject to global economic conditions and the related impact on consumer spending levels.
In addition, we have become aware that certain of our creditors (collectively, the “Co-Op”) have entered into a cooperation agreement, which we believe restricts such creditors from participating in financing transactions with us, except as approved by the Co-Op.
In addition, certain of our creditors (collectively, the “Co-Op”) have entered into a cooperation agreement, which may restrict such creditors from participating in financing transactions with us, except as approved by the Co-Op.
The tri-class structure of Altice USA common stock has the effect of concentrating voting control with Next Alt.
The tri-class structure of Optimum Communications common stock has the effect of concentrating voting control with Next Alt.
In 2024, S&P downgraded our credit rating to “CCC+” and Moody’s Investors Service downgraded our credit rating to “Caa2.” A deterioration of our financial position or a further downgrade of our or our subsidiaries' ratings for any reason may impact our ability to access debt markets in the future or increase our cost of future debt which could have a material adverse effect on our business, financial condition and results of operations, which in return may adversely affect the market price of shares of our Class A common stock.
A deterioration of our financial position or a further downgrade of our or our subsidiaries' ratings for any reason may impact our ability to access debt markets in the future or increase our cost of future debt which could have a material adverse effect on our business, financial 29 condition, and results of operations, which in return may adversely affect the market price of shares of our Class A common stock.
We may be liable for the material that content providers distribute over our networks. The law in most cases limits the liability of private network operators for information carried on, stored on or disseminated through their networks. However, these limitations on liability are subject to certain exceptions and the contours of those exceptions are not fully settled.
The law in most cases limits the liability of private network operators for information carried on, stored on or disseminated through their networks. However, these limitations on liability are subject to certain exceptions and the contours of those exceptions are not fully settled.
Some of our competitors include AT&T, DirecTV, DISH, Frontier, Lumen and Verizon. In addition, our video services compete with all other sources of leisure, news, information and entertainment, including movies, sporting or other live events, radio broadcasts, home-video services, console games, print media and the Internet.
In addition, our video services compete with all other sources of leisure, news, information and entertainment, including movies, sporting or other live events, radio broadcasts, home-video services, console games, print media, and the Internet.
We are currently lawfully operating in this franchise area under temporary authority recognized by the State of New York. In addition, Lightpath holds a franchise from New York City that expired on December 20, 2008 and the renewal process is pending.
As of December 31, 2025, our largest franchise, New York City, comprising approximately 255 thousand video customers was expired. We are currently lawfully operating in this franchise area under temporary authority recognized by the State of New York. In addition, Lightpath holds a franchise from New York City that expired on December 20, 2008 and the renewal process is pending.
Drahi's reputation could adversely affect current and future customers' perception of Altice USA. • Macroeconomic developments may adversely affect our business. • Online piracy could result in reduced revenues and increased expenditures.
Drahi's reputation could adversely affect current and future customers' and other stakeholders' perception of Optimum Communications, which was formerly known as Altice USA. • Macroeconomic developments may adversely affect our business. • Online piracy could result in reduced revenues and increased expenditures.
Additionally, federal legislation has substantially increased the amount of subsidies to entities deploying broadband to areas deemed to be "unserved" or "underserved" in recent years, which could result in increased competition for our broadband services. Mobile broadband providers increasingly provide Fixed Wireless Broadband ("FWB") services that can substitute for our fixed broadband service.
Additionally, federal legislation has substantially increased the amount of subsidies to entities deploying broadband to areas deemed to be "unserved" or "underserved" in recent years, which could result in increased competition for our broadband services.
In 2024 the FCC reclassified broadband service as a common carrier telecommunications service and reinstituted net neutrality rules substantially similar to those in the 2015 Order. The 2024 Order was stayed and, in 2025, vacated by the Sixth Circuit Court of Appeals. The court’s decision may be appealed.
In 2024 the FCC reclassified broadband service as a common carrier telecommunications service and reinstituted net neutrality rules substantially similar to those in the 2015 Order. The 2024 Order was stayed and, in 2025, vacated by the U.S. Sixth Circuit Court of Appeals. The Sixth Circuit denied a request for en banc rehearing, and that decision was not appealed.
Asserted claims and initiated litigation can include claims against us or our manufacturers, suppliers or customers, alleging infringement of their proprietary rights with respect to our existing or future products or services or components of those products or services.
Asserted claims and initiated litigation can include claims against us or our manufacturers, suppliers or customers, alleging infringement of their proprietary rights with respect to our existing or future products or services or components of those products or services. Our use or adoption of new and emerging technologies may also increase our exposure to intellectual property claims.
Any issuance of additional securities in connection with investments or acquisitions may result in additional dilution to our stockholders. 40 In addition, to the extent large holders of our common stock pledge some or all of the shares they own as collateral for loans, the forced sale of the common stock subject to a pledge into the market in a short period could negatively impact the market price of our common stock.
In addition, to the extent large holders of our common stock pledge some or all of the shares they own as collateral for loans, the forced sale of the common stock subject to a pledge into the market in a short period could negatively impact the market price of our common stock.
These restrictions could affect how we provide, and limit, customer equipment used in connection with our services and how we provide access to video programming beyond conventional cable delivery.
It is possible that new marketing restrictions could be adopted in the future. These restrictions could affect how we provide, and limit, customer equipment used in connection with our services and how we provide access to video programming beyond conventional cable delivery.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

3 edited+1 added−0 removed9 unchanged
Biggest changeOur corporate information security organization, led by our Chief Information Security Officer ("CISO"), develops and directs our information security strategy and policy, security engineering, operations and cyber threat detection and response. 43 Our CISO has 23 years of experience in cybersecurity and 17 years in cybersecurity management, received a Bachelor of Science in Management Information Systems and a Master of Business Administration from Rochester Institute of Technology, and is a Certified Information Systems Security Professional.
Biggest changeOur CISO has 24 years of experience in cybersecurity and 18 years in cybersecurity management, received a Bachelor of Science in Management Information Systems and a Master of Business Administration from Rochester Institute of Technology, and is a Certified Information Systems Security Professional.
Item 1C. Cybersecurity Safeguarding the security and integrity of our systems, networks and data is an important element of our business activities. We continually invest in the development and implementation of various cybersecurity programs and processes that are designed to assess, identify and manage material risks from cybersecurity threats and to address the constantly evolving cybersecurity landscape.
Item 1C. Cybersecurity Safeguarding the security and integrity of our systems, networks, and data is an important element of our business activities. We continually invest in the development and implementation of various cybersecurity programs and 45 processes that are designed to assess, identify and manage material risks from cybersecurity threats and to address the constantly evolving cybersecurity landscape.
Cybersecurity strategy and updates are reviewed by our executive leadership team on a monthly basis and are presented to other internal committees. The audit committee receives a regularly scheduled report on cybersecurity matters and related risk exposure from our CISO.
Cybersecurity strategy and updates are reviewed by our executive leadership team on a periodic basis and are presented to other internal committees. The audit committee receives a regularly scheduled report on cybersecurity matters and related risk exposure from our CISO.
Added
Our corporate information security organization, led by our Chief Information Security Officer ("CISO"), develops and directs our information security strategy and policy, security engineering, operations and cyber threat detection and response.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeIn addition, we operate a network operations center that monitors our network 24 hours a day, seven days a week, helping to ensure a high quality of service and reliability for both our residential and commercial customers. We own most of our service vehicles.
Biggest changeIn addition, we operate a network operations center 46 that monitors our network 24 hours a day, seven days a week, helping to ensure a high quality of service and reliability for both our residential and commercial customers. We own most of our service vehicles.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

6 edited+3 added−1 removed4 unchanged
Biggest changeAdditionally, the market capitalizations of many of the companies included in the Peer Group are quite different from ours. The common stocks of the following companies have been included in the Peer Group Index: AT&T, Charter, Comcast, DISH (included through December 31, 2023 due to its merger with Echostar Corporation in January 2024), Frontier, Lumen, T-Mobile, and Verizon.
Biggest changeThe common stocks of the following companies have been included in the Peer Group Index: AT&T, Charter, Comcast, Echostar (which replaced DISH due to the merger of the two companies in January 2024), Frontier (included through December 31, 2025 due to its merger with Verizon in January 2026), Lumen, T-Mobile, and Verizon.
The graph assumes $100 was invested on December 31, 2019 in our Class A common stock and in each of the following indices and reflects reinvestment of dividends and market capitalization weighting.
The graph assumes $100 was invested on December 31, 2020 in our Class A common stock and in each of the following indices and reflects reinvestment of dividends and market capitalization weighting.
If dividends are paid on the Altice USA common stock, holders of the Altice USA Class A common stock and Altice USA Class B common stock are entitled to receive dividends, and other distributions in cash, stock or property, equally on a per share basis, except that, subject to certain exceptions, stock dividends with respect to Altice USA Class A common stock may be paid only with shares of Altice USA Class A common stock and stock dividends with respect to Altice USA Class B common stock may be paid only with shares of Altice USA Class B common stock.
If dividends are paid on the Optimum Communications common stock, holders of the Optimum Communications Class A common stock and Optimum Communications Class B common stock are entitled to receive dividends, and other distributions in cash, stock or property, equally on a per share basis, except that, subject to certain exceptions, stock dividends with respect to Optimum Communications Class A common stock may be paid only with shares of Optimum Communications Class A common stock and stock dividends with respect to Optimum Communications Class B common stock may be paid only with shares of Optimum Communications Class B common stock.
Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Altice USA Class A common stock is listed for trading on the NYSE under the symbol "ATUS." Altice USA Class B common stock is not listed for trading on any stock exchange.
Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Optimum Communications Class A common stock is listed for trading on the NYSE under the symbol "OPTU." Optimum Communications Class B common stock is not listed for trading on any stock exchange.
Unregistered Sales of Equity Securities and Use of Proceeds None. 45 Altice USA Stock Performance Graph The graph below compares the performance of our Class A common stock with the performance of the S&P 500 Index and a Peer Group Index by measuring the changes in our Class A common stock prices from December 31, 2019 through December 31, 2024.
Unregistered Sales of Equity Securities and Use of Proceeds None. 48 Optimum Communications Stock Performance Graph The graph below compares the performance of our Class A common stock with the performance of the S&P 500 Index and a Peer Group Index by measuring the changes in our Class A common stock prices from December 31, 2020 through December 31, 2025.
As of February 7, 2025, there were six holders of record of Altice USA Class A common stock and two holders of record of ATUS Class B common stock. Stockholder Dividends and Distributions We may pay dividends on our capital stock only from net profits and surplus as determined under Delaware law.
Stockholder Dividends and Distributions We may pay dividends on our capital stock only from net profits and surplus as determined under Delaware law.
Removed
Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2023 Dec. 31, 2024 ALTICE USA CLASS A $ 100.00 $ 138.51 $ 59.18 $ 16.83 $ 11.89 $ 8.81 S&P 500 Index $ 100.00 $ 116.26 $ 147.52 $ 118.84 $ 147.64 $ 182.05 Peer Group Index $ 100.00 $ 107.80 $ 102.04 $ 86.61 $ 95.28 $ 112.19 46
Added
Prior to November 19, 2025, our Class A common stock was traded on the NYSE under the ticker symbol "ATUS". As of February 6, 2026, there were seven holders of record of Optimum Communications Class A common stock and two holders of record of ATUS Class B common stock.
Added
Additionally, the market capitalizations of many of the companies included in the Peer Group are quite different from ours.
Added
Dec. 31, 2020 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2023 Dec. 31, 2024 Dec. 31, 2025 Optimum Communications CLASS A $ 100.00 $ 42.73 $ 12.15 $ 8.58 $ 6.36 $ 6.36 S&P 500 Index $ 100.00 $ 126.89 $ 102.22 $ 126.99 $ 156.59 $ 182.25 Peer Group Index $ 100.00 $ 94.70 $ 81.20 $ 89.87 $ 106.42 $ 106.17 49

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

91 edited+55 added−24 removed68 unchanged
Biggest changeWe believe this measure is useful to investors in evaluating our ability to service our debt and make continuing investments with internally generated funds, although it may not be directly comparable to similar measures reported by other companies. 50 Results of Operations - Altice USA Years Ended December 31, Favorable (Unfavorable) 2024 2023 Revenue: Broadband $ 3,645,460 $ 3,824,472 $ (179,012) Video 2,896,600 3,072,011 (175,411) Telephony 277,938 300,198 (22,260) Mobile 117,084 77,012 40,072 Residential revenue 6,937,082 7,273,693 (336,611) Business services and wholesale 1,471,764 1,467,149 4,615 News and advertising 486,172 447,742 38,430 Other 59,399 48,480 10,919 Total revenue 8,954,417 9,237,064 (282,647) Operating expenses: Programming and other direct costs 2,896,570 3,029,842 133,272 Other operating expenses 2,711,828 2,646,258 (65,570) Restructuring, impairments and other operating items 23,696 214,727 191,031 Depreciation and amortization 1,642,231 1,644,297 2,066 Operating income 1,680,092 1,701,940 (21,848) Other income (expense): Interest expense, net (1,763,166) (1,639,120) (124,046) Gain on investments and sale of affiliate interests, net 670 180,237 (179,567) Loss on derivative contracts, net — (166,489) 166,489 Gain on interest rate swap contracts, net 18,632 32,664 (14,032) Gain (loss) on extinguishment of debt and write-off of deferred financing costs (12,901) 4,393 (17,294) Other income (expense), net (5,675) 4,940 (10,615) Income (loss) before income taxes (82,348) 118,565 (200,913) Income tax benefit (expense) 4,071 (39,528) 43,599 Net income (loss) (78,277) 79,037 (157,314) Net income attributable to noncontrolling interests (24,641) (25,839) 1,198 Net income (loss) attributable to Altice USA, Inc. stockholders $ (102,918) $ 53,198 $ (156,116) 51 The following is a reconciliation of net income (loss) to Adjusted EBITDA (unaudited): Years Ended December 31, 2024 2023 Net income (loss) $ (78,277) $ 79,037 Income tax expense (benefit) (4,071) 39,528 Other expense (income), net 5,675 (4,940) Gain on interest rate swap contracts, net (18,632) (32,664) Loss on derivative contracts, net — 166,489 Gain on investments and sale of affiliate interests, net (670) (180,237) Loss (gain) on extinguishment of debt and write-off of deferred financing costs 12,901 (4,393) Interest expense, net 1,763,166 1,639,120 Depreciation and amortization 1,642,231 1,644,297 Restructuring, impairments and other operating items 23,696 214,727 Share-based compensation 67,162 47,926 Adjusted EBITDA $ 3,413,181 $ 3,608,890 The following is a reconciliation of net cash flow from operating activities to Free Cash Flow (unaudited): Years Ended December 31, 2024 2023 Net cash flows from operating activities $ 1,582,401 $ 1,826,398 Less: Capital expenditures (cash) 1,433,013 1,704,811 Free Cash Flow $ 149,388 $ 121,587 The following table sets forth certain customer metrics (unaudited): December 31, Increase (Decrease) 2024 2023 (in thousands) Total passings (a) 9,830.8 9,628.7 202.1 Total customer relationships (b) 4,550.3 4,743.5 (193.2) Residential 4,173.7 4,363.1 (189.4) SMB 376.6 380.3 (3.7) Residential customers: Broadband 3,999.9 4,169.0 (169.1) Video 1,880.1 2,172.4 (292.3) Telephony 1,269.2 1,515.3 (246.1) Penetration of total passings (c) 46.3 % 49.3 % (3.0) % Average revenue per user ("ARPU") (d) $ 133.95 $ 136.01 $ (2.06) SMB customers: Broadband 346.1 348.9 (2.8) Video 81.0 89.6 (8.6) Telephony 194.5 203.2 (8.7) Total mobile lines (e) 459.6 322.2 137.4 FTTH total passings (f) 2,961.8 2,735.2 226.6 FTTH customer relationships (g) 538.2 341.4 196.8 FTTH Residential 523.4 333.8 189.6 FTTH SMB 14.7 7.6 7.1 Penetration of FTTH total passings (h) 18.2 % 12.5 % 5.7 % 52 (a) Represents the estimated number of single residence homes, apartments and condominium units passed by our HFC and FTTH network in areas serviceable without further extending the transmission lines.
Biggest changeWe believe this measure is useful to investors in evaluating our ability to service our debt and make continuing investments with internally generated funds, although it may not be directly comparable to similar measures reported by other companies. 53 Results of Operations - Optimum Communications Years Ended December 31, Favorable (Unfavorable) 2025 2024 Revenue: Broadband $ 3,542,230 $ 3,645,460 $ (103,230) Video 2,590,790 2,896,600 (305,810) Telephony 253,677 277,938 (24,261) Mobile 164,568 117,084 47,484 Residential revenue 6,551,265 6,937,082 (385,817) Business services and wholesale 1,489,061 1,471,764 17,297 News and advertising 471,800 486,172 (14,372) Other 78,341 59,399 18,942 Total revenue 8,590,467 8,954,417 (363,950) Operating expenses: Programming and other direct costs 2,637,181 2,896,570 259,389 Other operating expenses 2,681,740 2,711,828 30,088 Restructuring, impairments and other operating items 1,687,130 23,696 (1,663,434) Depreciation and amortization 1,696,974 1,642,231 (54,743) Operating income (112,558) 1,680,092 (1,792,650) Other income (expense): Interest expense, net (1,791,462) (1,763,166) (28,296) Gain on investments and sale of affiliate interests 5 670 (665) Gain on interest rate swap contracts, net 613 18,632 (18,019) Loss on extinguishment of debt and write-off of deferred financing costs (23,502) (12,901) (10,601) Other expense, net (3,051) (5,675) 2,624 Loss before income taxes (1,929,955) (82,348) (1,847,607) Income tax benefit 96,908 4,071 92,837 Net loss (1,833,047) (78,277) (1,754,770) Net income attributable to noncontrolling interests (35,977) (24,641) (11,336) Net loss attributable to Optimum Communications stockholders $ (1,869,024) $ (102,918) $ (1,766,106) The following is a reconciliation of net loss to Adjusted EBITDA (unaudited): Years Ended December 31, 2025 2024 Net loss $ (1,833,047) $ (78,277) Income tax benefit (96,908) (4,071) Other expense, net 3,051 5,675 Gain on interest rate swap contracts, net (613) (18,632) Gain on investments and sale of affiliate interests (5) (670) Loss on extinguishment of debt and write-off of deferred financing costs 23,502 12,901 Interest expense, net 1,791,462 1,763,166 Depreciation and amortization 1,696,974 1,642,231 Restructuring, impairments and other operating items 1,687,130 23,696 Share-based compensation 64,087 67,162 Adjusted EBITDA $ 3,335,633 $ 3,413,181 54 The following is a reconciliation of net cash flow from operating activities to Free Cash Flow (Deficit) (unaudited): Years Ended December 31, 2025 2024 Net cash flows from operating activities $ 1,228,457 $ 1,582,401 Less: Capital expenditures (cash) 1,347,294 1,433,013 Free Cash Flow (Deficit) $ (118,837) $ 149,388 The following table sets forth certain customer metrics (unaudited): December 31, Increase (Decrease) 2025 2024 (in thousands) Total passings (a) 10,008.2 9,830.8 177.3 Total customer relationships (b) 4,333.6 4,550.3 (216.6) Residential 3,963.8 4,173.7 (209.9) SMB 369.9 376.6 (6.7) Residential customers: Broadband 3,811.4 3,999.9 (188.4) Video 1,628.4 1,880.1 (251.7) Telephony 1,041.6 1,269.2 (227.7) Penetration of total passings (c) 43.3 % 46.3 % (3.0) % Average revenue per user ("ARPU") (d) $ 134.49 $ 133.95 $ 0.54 SMB customers: Broadband 342.0 346.1 (4.1) Video 72.6 81.0 (8.5) Telephony 182.5 194.5 (12.0) Total mobile lines (e) 622.5 459.6 162.9 FTTH total passings (f) 3,096.0 2,961.8 134.2 FTTH customer relationships (g) 715.9 538.2 177.8 FTTH Residential 694.8 523.4 171.3 FTTH SMB 21.2 14.7 6.4 Penetration of FTTH total passings (h) 23.1 % 18.2 % 5.0 % 55 (a) Represents the estimated number of single residence homes, apartments, and condominium units passed by our HFC and FTTH network in areas serviceable without further extending the transmission lines.
In counting bulk residential customers, such as an apartment building, we count each subscribing unit within the building as one customer, but do not count the master account for the entire building as a customer. We count a bulk commercial customer, such as a hotel, as one customer, and do not count individual rooms at that hotel.
In counting bulk residential customers, such as an apartment building, we count each subscribing unit within the building as one customer, but do not count the master account for the entire building as a customer. We count a bulk commercial customer, such as a hotel, as one customer, and do not count individual rooms at that hotel.
In addition, important factors that could cause our actual results to differ materially from those in our forward-looking statements include: • competition for broadband, video and telephony customers from existing competitors (such as broadband communications companies, DBS providers, wireless data and telephony providers, and Internet-based providers) and new fiber-based competitors entering our footprint; • changes in consumer preferences, laws and regulations or technology that may cause us to change our operational strategies; • increased difficulty negotiating programming agreements on favorable terms, if at all, resulting in increased costs to us and the loss of popular programming; • increasing programming costs and delivery expenses related to our products and services; • our ability to achieve anticipated customer and revenue growth, to successfully introduce new products and services and to implement our growth strategy; • our ability to complete our capital investment plans on time and on budget, including our plan to build a parallel FTTH network; • our ability to develop mobile voice and data services and our ability to attract customers to these services; • the effects of economic conditions or other factors which may negatively affect our customers’ demand for our current and future products and services; • the effects of industry conditions; • demand for digital and linear advertising products and services; • our substantial indebtedness and debt service obligations; • adverse changes in the credit market; • changes as a result of any tax reforms that may affect our business; • financial community and rating agency perceptions of our business, operations, financial condition and the industries in which we operate; • the restrictions contained in our financing agreements; • our ability to generate sufficient cash flow to meet our debt service obligations; • fluctuations in interest rates which may cause our interest expense to vary from quarter to quarter; • technical failures, equipment defects, physical or electronic break-ins to our services, computer viruses and similar problems; • cybersecurity incidents as a result of hacking, phishing, denial of service attacks, dissemination of computer viruses, ransomware and other malicious software, misappropriation of data, and other malicious attempts; 47 • disruptions to our networks, infrastructure and facilities as a result of natural disasters, power outages, accidents, maintenance failures, telecommunications failures, degradation of plant assets, terrorist attacks and similar events; • our ability to obtain necessary hardware, software, communications equipment and services and other items from our vendors at reasonable costs; • our ability to effectively integrate acquisitions and to maximize expected operating efficiencies from our acquisitions, if any; • significant unanticipated increases in the use of bandwidth-intensive Internet-based services; • the outcome of litigation, government investigations and other proceedings; and • other risks and uncertainties inherent in our cable and broadband communications businesses and our other businesses, including those listed under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" contained herein.
In addition, important factors that could cause our actual results to differ materially from those in our forward-looking statements include: • competition for broadband, video, and telephony customers from existing competitors (such as broadband communications companies, DBS providers, wireless data and telephony providers and Internet-based providers) and new fiber-based competitors entering our footprint; • changes in consumer preferences, laws and regulations or technology that may cause us to change our operational strategies; • increased difficulty negotiating programming agreements on favorable terms, if at all, resulting in increased costs to us and the loss of popular programming; • increasing programming costs and delivery expenses related to our products and services; • our ability to achieve anticipated customer and revenue growth, to successfully introduce new products and services and to implement our growth strategy; • our ability to complete our capital investment plans on time and on budget, including our plan to build a parallel FTTH network; • our ability to develop mobile voice and data services and our ability to attract customers to these services; • the effects of economic conditions or other factors which may negatively affect our customers’ demand for our current and future products and services; • the effects of industry conditions; • demand for digital and linear advertising products and services; • our substantial indebtedness and debt service obligations; • adverse changes in the credit market and availability of capital to refinance or repay future debt obligations; • changes as a result of any tax reforms that may affect our business; • financial community and rating agency perceptions of our business, operations, financial condition, and the industries in which we operate; • the restrictions contained in our financing agreements; • our ability to generate sufficient cash flow to meet our debt service obligations; • fluctuations in interest rates which may cause our interest expense to vary from quarter to quarter; • technical failures, equipment defects, physical or electronic break-ins to our services, computer viruses, and similar problems; • cybersecurity incidents as a result of hacking, phishing, denial of service attacks, dissemination of computer viruses, ransomware and other malicious software, misappropriation of data, and other malicious attempts; 50 • disruptions to our networks, infrastructure, and facilities as a result of natural disasters, power outages, accidents, maintenance failures, telecommunications failures, degradation of plant assets, terrorist attacks, and similar events; • our ability to obtain necessary hardware, software, communications equipment and services and other items from our vendors at reasonable costs; • our ability to effectively integrate acquisitions and to maximize expected operating efficiencies from our acquisitions, if any; • significant unanticipated increases in the use of bandwidth-intensive Internet-based services; • the outcome of litigation, government investigations and other proceedings; and • other risks and uncertainties inherent in our cable and broadband communications businesses and our other businesses, including those listed under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" contained herein.
The revenue related to these business customers is reflected in business services and wholesale in the table above. (f) Represents the estimated number of single residence homes, apartments and condominium units passed by the FTTH network in areas serviceable without further extending the transmission lines. In addition, it includes commercial establishments that have connected to our FTTH network.
The service revenue related to these business customers is reflected in business services and wholesale in the table above. (f) Represents the estimated number of single residence homes, apartments, and condominium units passed by the FTTH network in areas serviceable without further extending the transmission lines. In addition, it includes commercial establishments that have connected to our FTTH network.
We operate in a highly competitive consumer-driven industry and we compete against a variety of broadband, video, mobile, fixed wireless broadband and fixed-line telephony providers and delivery systems, including broadband communications companies, wireless data and telephony providers, fiber-based service providers, satellite delivered video signals, Internet-delivered video content and broadcast television signals available to residential and business customers in our service areas.
We operate in a highly competitive, consumer-driven industry and we compete against a variety of broadband, video, mobile, fixed wireless broadband and fixed-line telephony providers and delivery systems, including broadband communications companies, wireless data and telephony providers, fiber-based service providers, satellite-based connectivity providers, Internet-delivered video content and broadcast television signals available to residential and business customers in our service areas.
Our programming costs, which are the most significant component of our operating expenses, are impacted by increases in contractual rates, changes in the number of customers receiving certain programming services, new channel launches, and channel drops. We expect contractual rates to increase in the future.
Our programming costs, which are the most significant component of our operating expenses, are impacted by changes in contractual rates, changes in the number of customers receiving certain programming services, new channel launches, and channel drops. We expect contractual rates to increase in the future.
Fair value estimates are made at a specific point in time, based on relevant information. These estimates are subjective in nature and involve uncertainties and matters of significant judgments. Changes in assumptions could significantly affect the estimates.
Fair value estimates are made at a specific 71 point in time, based on relevant information. These estimates are subjective in nature and involve uncertainties and matters of significant judgments. Changes in assumptions could significantly affect the estimates.
Departmental activities supporting the connection process are capitalized based on time-weighted activity allocations of costs. These installation costs are amortized over the estimated useful lives of the CPE.
Departmental activities supporting the connection process are capitalized based on time-weighted activity allocations of costs. These installation costs are amortized over the estimated useful 72 lives of the CPE.
These costs are impacted by increases in contractual rates, changes in the number of customers receiving certain programming services, new channel launches and channel drops.
These costs are impacted by changes in contractual rates, changes in the number of customers receiving certain programming services, new channel launches, and channel drops.
In addition, we derive revenue from the sale of advertising inventory available on the programming carried on our cable television systems, as well as other systems (linear revenue), digital advertising, data analytics and affiliation fees for news programming, which accounted for approximately 5% of our consolidated revenue for the year ended December 31, 2024.
In addition, we derive revenue from the sale of advertising inventory available on the programming carried on our cable television systems, as well as other systems (linear revenue), digital advertising, data analytics and affiliation fees for news programming, which accounted for approximately 5% of our consolidated revenue for the year ended December 31, 2025.
Contractual Obligations and Off Balance Sheet Commitments Our contractual obligations as of December 31, 2024 consist primarily of our debt obligations, purchase obligations which primarily include contractual commitments with various programming vendors to provide video services to our customers and minimum purchase obligations to purchase goods or services, operating and finance lease obligations, outstanding letters of credit, and guarantees.
Contractual Obligations and Off Balance Sheet Commitments Our contractual obligations as of December 31, 2025 consist primarily of our debt obligations, purchase obligations which primarily include contractual commitments with various programming vendors to provide video services to our customers and minimum purchase obligations to purchase goods or services, operating and finance lease obligations, outstanding letters of credit and guarantees.
A hypothetical 10% reduction in the fair value of our franchise rights would result in an impairment charge of approximately $1,200,000. 67 Capitalization of Costs Costs incurred in the construction of our cable systems, including line extensions to, and upgrade of, our HFC infrastructure and construction of the parallel FTTH infrastructure, are capitalized.
A hypothetical 10% reduction in the fair value of our franchise rights would result in an impairment charge of approximately $1,160,000. Capitalization of Costs Costs incurred in the construction of our cable systems, including line extensions to, and upgrade of, our HFC infrastructure and construction of the parallel FTTH infrastructure, are capitalized.
As of December 31, 2024, Lightpath was in compliance with applicable financial covenants under each respective indenture by which the senior secured notes and senior notes were issued.
As of December 31, 2025, Lightpath was in compliance with applicable financial covenants under each respective indenture by which the senior secured notes and senior notes were issued.
The decrease in Adjusted EBITDA for the year ended December 31, 2024 as compared to the prior year was due to the decrease in revenue, partially offset by a decrease in operating expenses during 2024 (excluding depreciation and amortization, restructuring, impairments and other operating items and share-based compensation), as discussed above.
The decrease in Adjusted EBITDA for the year ended December 31, 2025 as compared to the prior year was due to the decrease in revenue, partially offset by a net decrease in operating expenses during 2025 (excluding depreciation and amortization, share-based compensation, restructuring, impairments and other operating items), as discussed above.
Most of these accounts are also not entirely free, as they typically generate revenue through pay-per-view or other pay services and certain equipment fees. Free status is not granted to regular customers as a promotion.
Most of these accounts are also not entirely free, as they typically generate revenue through other pay services and certain equipment fees. Free status is not granted to regular customers as a promotion.
Discussions of the results of operations for the year ended December 31, 2022 and comparisons of the 2023 results to the 2022 results can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2023 as filed on February 15, 2024 .
Discussions of the results of operations for the year ended December 31, 2024 and comparisons of the 2024 results to the 2023 results can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024 as filed on February 13, 2025 .
In addition, it includes commercial establishments that have connected to our HFC and FTTH network. Broadband services were not available to approximately 30 thousand passings and telephony services were not available to approximately 500 thousand passings. (b) Represents number of households/businesses that receive at least one of our fixed-line services.
In addition, it includes commercial establishments that have connected to our HFC and FTTH network. Broadband services were not available to approximately 26 thousand passings and telephony services were not available to approximately 460 thousand passings. (b) Represents number of households/businesses that receive at least one of our fixed-line services.
We expect to utilize Free Cash Flow and availability under the CSC Holdings Restricted Group and Lightpath revolving credit facilities, as well as future refinancing transactions, to further extend the maturities of, or reduce the principal on, our debt obligations. The timing and terms of any refinancing transactions will be subject to, among other factors, market conditions.
We expect to utilize Free Cash Flow and availability under the CSC Holdings revolving credit facility, as well as future refinancing transactions, to further extend the maturities of, or reduce the principal on, our debt obligations. The timing and terms of any refinancing transactions will be subject to, among other factors, market conditions.
It includes the following sections: • Our Business • Key Factors Impacting Operating Results and Financial Condition • Consolidated Results of Operations • Non-GAAP Financial Measures • Reconciliation of CSC Holdings Results of Operations to Altice USA's Results of Operations • CSC Holdings Restricted Group Financial Information • Liquidity and Capital Resources • Critical Accounting Policies and Estimates In this Item 7, we discuss the results of operations for the years ended December 31, 2024 and 2023 and comparisons of the 2024 results to the 2023 results.
It includes the following sections: • Our Business • Key Factors Impacting Operating Results and Financial Condition • Consolidated Results of Operations • Non-GAAP Financial Measures • Reconciliation of CSC Holdings Results of Operations to Optimum Communications' Results of Operations • CSC Holdings Restricted Group Financial Information • Liquidity and Capital Resources • Critical Accounting Policies and Estimates In this Item 7, we discuss the results of operations for the years ended December 31, 2025 and 2024 and comparisons of the 2025 results to the 2024 results.
Our Business We principally provide broadband communications and video services in the United States and market our services under the Optimum brand. We deliver broadband, video, telephony, and mobile services to approximately 4.6 million 48 residential and business customers across our footprint.
Our Business We principally provide broadband communications and video services in the United States and market our services under the Optimum brand. We deliver broadband, video, telephony, and mobile services to approximately 4.3 million 51 residential and business customers across our footprint.
We believe existing cash balances, operating cash flows and availability under the CSC Holdings Restricted Group and Lightpath revolving credit facilities will provide adequate funds to support our current operating plan, make planned capital expenditures and fulfill our debt service requirements for the next twelve months.
We believe existing cash balances, operating cash flows and availability under the CSC Holdings revolving credit facility will provide adequate funds to support our current operating plan, make planned capital expenditures and fulfill our debt service requirements for the next twelve months.
Our footprint extends across 21 states (primarily in the New York metropolitan area and various markets in the south-central United States) through a fiber-rich HFC broadband network and a FTTH network with approximately 9.8 million total passings as of December 31, 2024. Additionally, we offer news programming and advertising services.
Our footprint extends across 21 states (primarily in the New York metropolitan area and various markets in the south-central United States) through a fiber-rich HFC broadband network and a FTTH network with approximately 10.0 million total passings as of December 31, 2025. Additionally, we offer news programming and advertising services.
Non-GAAP Financial Measures We define Adjusted EBITDA, which is a non-GAAP financial measure, as net income (loss) excluding income taxes, non-operating income or expenses, gain (loss) on extinguishment of debt and write-off of deferred financing costs, gain (loss) on interest rate swap contracts, gain (loss) on derivative contracts, gain (loss) on investments and sale of affiliate interests, interest expense, net, depreciation and amortization, share-based compensation, restructuring, 49 impairments and other operating items (such as significant legal settlements and contractual payments for terminated employees).
Adjusted EBITDA is a non-GAAP measure that is defined as net income (loss) excluding income taxes, non-operating income or expenses, gain (loss) on extinguishment of debt and write-off of deferred financing costs, gain (loss) on interest rate swap contracts, gain (loss) on derivative contracts, gain (loss) on investments and sale of affiliate interests, interest expense, net, depreciation and amortization, share-based compensation, restructuring, impairments and other operating items (such as significant legal settlements and contractual payments for terminated employees).
Offsetting these credits was an expense, net of insurance recoveries, in connection with the settlement of other significant litigation. We may incur additional contractual payments for terminated employee related costs and facility realignment costs in the future as we continue to analyze our organizational structure.
Offsetting these credits was an expense, net of insurance recoveries, in connection with the settlement of other significant litigation. (e) Represent costs to early terminate contracts with vendors. We may incur additional contractual payments for terminated employee related costs and facility realignment costs in the future as we continue to analyze our organizational structure.
Lightpath Sources of cash for Lightpath include existing cash balances, operating cash flows from its operating subsidiaries and availability under the revolving credit facility. 63 Lightpath Credit Facility Lightpath is party to a credit agreement which provides a term loan in an aggregate principal amount of $700,000, as amended ($676,000 outstanding at December 31, 2024) and revolving loan commitments in an aggregate principal amount of $115,000, as amended.
Lightpath Sources of cash for Lightpath include existing cash balances, operating cash flows from its operating subsidiaries and availability under the revolving credit facility. 68 Lightpath Credit Facility Lightpath is party to a credit agreement which provides a term loan in an aggregate principal amount of $700,000, as amended ($669,183 outstanding at December 31, 2025) and revolving loan commitments in an aggregate principal amount of $115,000, as amended.
We intend to raise significant amounts of funding over the next several years to fund capital expenditures, repay existing obligations and meet other obligations, and the failure to do so successfully could adversely affect our business.
We intend to raise significant amounts of funding over the next several years to fund capital expenditures, repay existing obligations and meet other obligations, and the failure to do so successfully could adversely affect our business, financial condition, liquidity, and results of operations.
(e) Mobile lines represent the number of residential and business customers’ wireless connections, which include mobile phone handsets and other mobile wireless connected devices. An individual customer relationship may have multiple mobile lines. The 2024 and 2023 ending lines include approximately 4.4 thousand and 2.8 thousand lines related to business customers, respectively.
(e) Mobile lines represent the number of residential and business customers’ wireless connections, which include mobile phone handsets, and other mobile wireless connected devices. An individual customer relationship may have multiple mobile lines. The 2025 and 2024 ending lines include approximately 17.6 thousand and 4.4 thousand lines related to business customers, respectively.
Although we currently believe amounts available under the CSC Holdings Restricted Group and Lightpath revolving credit facilities will be available when, and if, needed, we can provide no assurance that access to such funds will not be impacted by adverse conditions in the financial markets or other conditions.
Although we currently believe amounts available under the CSC Holdings revolving credit facility will be available when, and if, needed, we can provide no assurance that access to such funds will not be impacted by adverse conditions in the financial markets or other conditions beyond our control.
CSC Holdings Credit Facilities In October 2015, a wholly-owned subsidiary of Altice USA, which merged with and into CSC Holdings on June 21, 2016, entered into a senior secured credit facility, which, as amended, currently provides for U.S. dollar term loans in an aggregate principal of $5,001,942, comprising (i) an incremental term loan amount of $3,000,000 ($2,857,500 outstanding as of December 31, 2024) (“Incremental Term Loan B-5”) and (ii) an incremental term loan in an aggregate principal amount of $2,001,942 ($1,966,908 outstanding as of December 31, 2024) (“Incremental Term Loan B-6”), and U.S. dollar revolving loan commitments in an aggregate principal amount of $2,475,000 ($1,700,000 outstanding as of December 31, 2024) (the "CSC Revolving Credit Facility" and, together with the Incremental Term Loan B-5 and Incremental Term B-6, the "CSC Credit Facilities"), which are governed by a credit facilities agreement entered into by, inter alios, CSC Holdings, certain lenders party thereto and JPMorgan Chase Bank, N.A. as administrative agent and security agent (as amended, restated, supplemented or otherwise modified from time to time, the "CSC Credit Facilities Agreement").
CSC Holdings Credit Facilities In October 2015, a wholly-owned subsidiary of Optimum Communications, which merged with and into CSC Holdings on June 21, 2016, entered into a senior secured credit facility, which, as amended, currently provides for U.S. dollar term loans in an aggregate principal of $5,001,942, comprising (i) an incremental term loan amount of $3,000,000 ($2,827,500 outstanding as of December 31, 2025) ("Incremental Term Loan B-5"), (ii) an incremental term loan in an aggregate principal amount of $2,001,942 ($0 outstanding as of December 31, 2025) ("Incremental Term Loan B-6"), and (iii) an incremental term loan in an aggregate principal amount of $2,000,000 ($0 outstanding as of December 31, 2025) ("Incremental Term Loan B-7"), and U.S. dollar revolving loan commitments in an aggregate principal amount of $2,475,000 ($2,125,000 outstanding as of December 31, 2025) (the "CSC Revolving Credit Facility" and, together with the Incremental Term Loan B-5, Incremental Term B-6, Incremental Term B-7, the "CSC Credit Facilities"), which are governed by a credit facilities agreement entered into by, inter alios, CSC Holdings, certain lenders party thereto and JPMorgan Chase Bank, N.A. as administrative agent and security agent (as amended, restated, supplemented, or otherwise modified from time to time, the "CSC Credit Facilities Agreement").
Our other revenue, which includes mobile equipment revenue, for the year ended December 31, 2024 accounted for approximately 1% of our consolidated revenue.
Our other revenue for the year ended December 31, 2025, primarily includes mobile equipment revenue, accounted for approximately 1% of our consolidated revenue.
See Note 16 . CSC HOLDINGS RESTRICTED GROUP For financing purposes, CSC Holdings is structured as a restricted group (the "Restricted Group") and an unrestricted group, which includes certain designated subsidiaries and investments (the "Unrestricted Group"). The Restricted Group is comprised of CSC Holdings and substantially all of its wholly-owned operating subsidiaries.
See Note 16 . CSC HOLDINGS RESTRICTED GROUP For financing purposes, CSC Holdings is structured as a "Restricted Group" and an "Unrestricted Group." The Restricted Group was historically comprised of CSC Holdings and substantially all of its wholly-owned operating subsidiaries.
(h) Represents the number of total FTTH customer relationships divided by FTTH total passings. 53 Comparison of Results for the Year Ended December 31, 2024 to Results for the Year Ended December 31, 2023 Broadband Revenue Broadband revenue for the years ended December 31, 2024 and 2023 was $3,645,460 and $3,824,472, respectively.
(h) Represents the number of total FTTH customer relationships divided by FTTH total passings. 56 Comparison of Results for the Year Ended December 31, 2025 to Results for the Year Ended December 31, 2024 Broadband Revenue Broadband revenue for the years ended December 31, 2025 and 2024 was $3,542,230 and $3,645,460, respectively.
The increase was primarily due to higher mobile equipment sales during 2024 as compared to 2023. 54 Programming and Other Direct Costs Programming and other direct costs for the years ended December 31, 2024 and 2023 amounted to $2,896,570 and $3,029,842, respectively.
The increase was primarily due to higher mobile equipment sales during 2025 as compared to 2024. Programming and Other Direct Costs Programming and other direct costs for the years ended December 31, 2025 and 2024 amounted to $2,637,181 and $2,896,570, respectively.
The gain for the year ended December 31, 2024 is net of a $52,943 loss related to the early termination of the CSC Holdings interest rate swap agreements with an aggregate notional value of $3,000,000. Our swap contracts are not designated as hedges for accounting purposes.
The gain for the year ended December 31, 2024 is net of a $52,943 loss related to the early termination of the CSC Holdings interest rate swap agreements with an aggregate notional value of $3,000,000.
At December 31, 2024, $163,738 of the CSC Revolving Credit Facility was restricted for certain letters of credit issued on our behalf and $611,262 was undrawn and available, subject to covenant limitations. As of December 31, 2024, CSC Holdings was in compliance with applicable financial covenants under its credit facility.
At December 31, 2025, $183,514 of the CSC Revolving Credit Facility was restricted for certain letters of credit issued on our behalf and $166,486 was undrawn and available, subject to covenant limitations. As of December 31, 2025, CSC Holdings was in compliance with applicable financial covenants under its credit facility.
As of December 31, 2024, there were no borrowings outstanding under the Lightpath revolving credit facility. See Note 11 to our consolidated financial statements for further information regarding the Lightpath credit agreement.
As of December 31, 2025, there were no borrowings outstanding under the Lightpath revolving credit facility. See Note 11 to our consolidated financial statements for further information regarding the Lightpath credit agreement. As of December 31, 2025, Lightpath was in compliance with applicable financial covenants under its credit agreement.
Our competitors include AT&T, DirecTV, DISH, Frontier, Lumen Technologies, Inc., T-Mobile, and Verizon. Consumers' selection of an alternate source of service, whether due to economic constraints, technological advances, or preference, negatively impacts the demand for our services. For more information on our competitive landscape, see "Risk Factors" and "Business-Competition" included herein.
Consumers' selection of an alternate source of service, whether due to economic constraints, technological advances, or preference, negatively impacts the demand for our services. For more information on our competitive landscape, see "Risk Factors" and "Business—Competition" included herein.
These CSC Holdings Restricted Group subsidiaries are subject to the covenants and restrictions of CSC Holdings' credit facility and indentures governing the notes issued by CSC Holdings.
These Restricted Group subsidiaries are subject to the covenants and restrictions of the CSC Holdings' Credit Facility and the indentures governing the notes issued by CSC Holdings. The Unrestricted Group includes certain designated subsidiaries and investments (the "Unrestricted Group") which are not subject to such covenants.
Depreciation and Amortization Depreciation and amortization for the years ended December 31, 2024 and 2023 amounted to $1,642,231 and $1,644,297, respectively.
Depreciation and Amortization Depreciation and amortization for the years ended December 31, 2025 and 2024 amounted to $1,696,974 and $1,642,231, respectively.
Interest Expense, Net Interest expense, net was $1,763,166 and $1,639,120 for the years ended December 31, 2024 and 2023, respectively.
Interest Expense, Net Interest expense, net was $1,791,462 and $1,763,166 for the years ended December 31, 2025 and 2024, respectively.
The proceeds from the sale of these notes were used to (i) repay the outstanding principal balance of the Term Loan B, (ii) repay the outstanding principal balance of the Incremental Term Loan B-3, and (iii) pay the fees, costs and expenses associated with these transactions.
In November 2025, the proceeds from the issuance of the Incremental Term Loan B-7 were used to (i) repay the outstanding principal balance of the Incremental Term Loan B-6 and (ii) pay the fees, costs and expenses associated with these transactions.
In 2024, our financing activities consisted primarily of the repayment of debt of $4,223,233, and principal payments on finance lease obligations of $127,349, partially offset by net proceeds from long-term debt of $4,214,750. 65 In 2023, our financing activities consisted primarily of the repayment of debt of $2,688,009, and principal payments on finance lease obligations of $149,297, partially offset by net proceeds from long-term debt of $2,700,000.
In 2024, our financing activities consisted primarily of the repayment of debt of $4,225,233, and principal payments on finance lease obligations of $127,349, offset by net proceeds from long-term debt of $4,214,750.
Gain (Loss) on Extinguishment of Debt and Write-off of Deferred Financing Costs Gain (loss) on extinguishment of debt and write-off of deferred financing costs amounted to $(12,901) and $4,393 for the years ended December 31, 2024 and 2023, respectively. 57 The following table provides a summary of the gain (loss) on extinguishment of debt and the write-off of deferred financing costs recorded by us: Years ended December 31, 2024 2023 Settlement of collateralized debt $ — $ 4,393 Incremental borrowing on Lightpath's Term Loan Facility (5,866) — Repayment of CSC Holdings Term Loan B and Incremental Term Loan B-3 (2,598) Redemption of 5.250% Senior Notes and 5.250% Series B Senior Notes due June 2024 (4,437) $ (12,901) $ 4,393 Other Income (Expense), Net Other income (expense), net amounted to $(5,675) and $4,940 for the years ended December 31, 2024 and 2023, respectively.
Loss on Extinguishment of Debt and Write-off of Deferred Financing Costs Loss on extinguishment of debt and write-off of deferred financing costs amounted to $23,502 and $12,901 for the years ended December 31, 2025 and 2024, respectively. 60 The following table provides a summary of the loss on extinguishment of debt and the write-off of deferred financing costs recorded by us: Years ended December 31, 2025 2024 Incremental borrowing on Lightpath's Term Loan Facility $ — $ (5,866) Repayment of CSC Holdings Term Loan B and Incremental Term Loan B-3 — (2,598) Redemption of 5.250% Senior Notes and 5.250% Series B Senior Notes due June 2024 — (4,437) Repayment of CSC Holdings Term Loan B-6 (21,809) — Early termination of certain finance leases (1,693) — $ (23,502) $ (12,901) Other Expense, Net Other expense, net amounted to $3,051 and $5,675 for the years ended December 31, 2025 and 2024, respectively.
Income Tax Benefit (Expense) We recorded an income tax benefit of $4,071 for the year ended December 31, 2024, resulting in an effective tax rate of 4.9% and an income tax expense of $(39,528) for the year ended December 31, 2023, resulting in an effective tax rate of 33% (See Note 14 ).
Income Tax Benefit We recorded an income tax benefit of $96,908 for the year ended December 31, 2025, resulting in an effective tax rate of 5.0% and an income tax benefit of $4,071 for the year ended December 31, 2024, resulting in an effective tax rate of 4.9% (See Note 14 ).
Our effective tax rate in 2024 includes the impact of tax deficiencies on share-based compensation and the increase in our uncertain tax positions reserve.
The effective tax rate in 2025 includes the nondeductibility of the impairment of our indefinite-lived cable franchises, the impact of tax deficiencies on share-based compensation, and the increase in our uncertain tax positions reserve.
During the year ended December 31, 2024, CSC Holdings borrowed $2,025,000 under the CSC Revolving Credit Facility and repaid $1,150,000 of amounts outstanding under the CSC Revolving Credit Facility.
During the year ended December 31, 2025, CSC Holdings borrowed $875,000 under the CSC Revolving Credit Facility and repaid $450,000 of amounts outstanding under the CSC Revolving Credit Facility.
The goodwill related to our Telecommunications reporting unit was recorded primarily in connection with the Cequel Acquisition in 2015 and the Cablevision Acquisition in 2016.
The goodwill balance as of December 31, 2025 relates to our Telecommunications reporting unit and was recorded primarily in connection with the Cequel Acquisition in 2015 and the Cablevision Acquisition in 2016.
Our residential broadband, video, telephony and mobile services accounted for approximately 41%, 32%, 3%, and 1% respectively, of our consolidated revenue for the year ended December 31, 2024. We also derive revenue from the sale of a wide and growing variety of products and services to both large enterprise and SMB customers, including broadband, telephony, networking, video and mobile services.
We also derive revenue from the sale of a wide and growing variety of products and services to both large enterprise and SMB customers, including broadband, telephony, networking, video, and mobile services. For the year ended December 31, 2025, 17% of our consolidated revenue was derived from these business services.
Financing Activities Net cash used in financing activities amounted to $171,978 and $122,591 for the years ended December 31, 2024 and 2023.
Financing Activities Net cash provided by (used in) financing activities amounted to $949,364 and $(171,978) for the years ended December 31, 2025 and 2024.
Financing Activities Net cash used in financing activities amounted to $81,552 and $122,591 for the years ended December 31, 2024 and 2023, respectively. In 2024, our financing activities consisted primarily of the repayment of long-term debt of $4,225,233, and principal payments on finance lease obligations of $127,349, partially offset by net proceeds from long-term debt of $4,214,750.
In 2024, our financing activities consisted primarily of the repayment of debt of $4,223,233, and principal payments on finance lease obligations of $127,349, offset by net proceeds from long-term debt of $4,214,750. CSC Holdings Operating Activities Net cash provided by operating activities amounted to $1,234,127 and $1,481,774 for the years ended December 31, 2025 and 2024, respectively.
Cash Flow Discussion Altice USA Operating Activities Net cash provided by operating activities amounted to $1,582,401 and $1,826,398 for the years ended December 31, 2024, and 2023, respectively.
Cash Flow Discussion Optimum Communications Operating Activities Net cash provided by operating activities amounted to $1,228,457 and $1,582,401 for the years ended December 31, 2025, and 2024, respectively.
The Lightpath silo includes all of its operating subsidiaries which are subject to the covenants and restrictions of the Lightpath credit facility and indentures governing the notes issued by Lightpath. 62 CSC Holdings Restricted Group Sources of cash for the CSC Holdings Restricted Group include primarily cash flow from the operations of the businesses in the CSC Holdings Restricted Group, borrowings under its credit facility and issuance of securities in the capital markets, contributions from its parent, and, from time to time, distributions or loans from its subsidiaries.
CSC Holdings Restricted Group Sources of cash for the CSC Holdings Restricted Group include primarily cash flow from the operations of the businesses in the CSC Holdings Restricted Group, borrowings under its credit facility and issuance of securities in the capital markets, contributions from its parent, and, from time to time, distributions or loans from its subsidiaries.
As of the annual impairment test date, goodwill amounted to $8,044,716 all of which is related to our Telecommunications reporting unit and indefinite-lived cable franchise rights amounted to $13,216,355. 66 The assessment of recoverability may first consider qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit or our indefinite-lived cable franchise rights is less than its carrying amount.
The assessment of recoverability may first consider qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit or our indefinite-lived cable franchise rights is less than its carrying amount.
Support and other capital expenditures include costs associated with the replacement or enhancement of non-network assets, such as software systems, vehicles, facilities, and office equipment. Business services capital expenditures include primarily equipment, support and other costs related to our fiber-based telecommunications business serving enterprise customers.
Support and other capital expenditures include costs associated with the replacement or enhancement of non-network assets, such as software systems, vehicles, facilities, and office equipment.
Business services and wholesale revenue is derived primarily from the sale of fiber-based telecommunications services to the business market, and the sale of broadband, video, telephony, and mobile services to SMB customers. Business services and wholesale revenue increased $4,615 for the year ended December 31, 2024 compared to the year ended December 31, 2023.
Business Services and Wholesale Revenue Business services and wholesale revenue for the years ended December 31, 2025 and 2024 was $1,489,061 and $1,471,764, respectively. Business services and wholesale revenue is derived primarily from the sale of fiber-based telecommunications services to the business market, and the sale of broadband, video, telephony, and mobile services to SMB customers.
We may incur greater than anticipated capital expenditures in connection with these initiatives, fail to realize anticipated benefits, experience delays and business disruptions or encounter other challenges to executing them as planned. See "Liquidity and Capital Resources-Capital Expenditures" for additional information regarding our capital expenditures.
Finally, we offer a full service mobile offering to consumers across our footprint. We may incur greater than anticipated capital expenditures in connection with these initiatives, fail to realize anticipated benefits, experience delays and business disruptions, or encounter other challenges to executing them as planned.
Storm Impact In September 2024, the rain, wind and flooding from Hurricane Helene impacted our Western North Carolina service area, resulting in power outages and service disruptions to customers as well as damage to our cable network in the area.
Business services capital expenditures include primarily equipment, support and other costs related to our fiber-based telecommunications business serving enterprise customers. 69 Storm Impact In September 2024, the rain, wind, and flooding from Hurricane Helene impacted our Western North Carolina service area, resulting in power outages and service disruptions to customers as well as damage to our cable network in the area.
The decrease was due primarily to a decline in video customers, partially offset by higher average recurring video revenue per video customer, primarily driven by certain rate increases. Telephony Revenue Telephony revenue for the years ended December 31, 2024 and 2023 was $277,938 and $300,198, respectively.
Video revenue decreased $305,810 (11%) for the year ended December 31, 2025 compared to the year ended December 31, 2024. The decrease was due primarily to a decline in video customers, partially offset by higher average recurring video revenue per video customer, primarily driven by certain rate increases.
Based on the quantitative assessment performed as of our impairment test date, the estimated fair value of our Telecommunications reporting unit exceeded its carrying value and no impairment was recorded.
Based on a quantitative assessment performed as of September 30, 2025, the estimated fair value of our Telecommunications reporting unit exceeded its carrying value and no impairment was recorded. A qualitative test as of our annual impairment test date was also performed which did not result in an impairment charge.
The following is a reconciliation of CSC Holdings' net income (loss) to Adjusted EBITDA (unaudited): CSC Holdings Years ended December 31, 2024 2023 Net income (loss) $ (77,420) $ 75,988 Income tax expense (benefit) (8,272) 42,577 Other expense (income), net 5,675 (4,940) Gain on interest rate swap contracts, net (18,632) (32,664) Loss on derivative contracts, net — 166,489 Gain on investments and sale of affiliate interests, net (670) (180,237) Loss (gain) on extinguishment of debt and write-off of deferred financing costs 12,901 (4,393) Interest expense, net 1,764,696 1,639,120 Depreciation and amortization 1,642,231 1,644,297 Restructuring, impairments and other operating items 23,696 214,727 Share-based compensation 67,162 47,926 Adjusted EBITDA $ 3,411,367 $ 3,608,890 Refer to Altice USA's Management's Discussion and Analysis of Financial Condition and Results of Operations herein. 59 The following is a reconciliation of CSC Holdings' net cash flow from operating activities to Free Cash Flow (unaudited): CSC Holdings Years ended December 31, 2024 2023 Net cash flows from operating activities $ 1,481,774 $ 1,826,398 Less: Capital expenditures (cash) (1,433,013) (1,704,811) Free Cash Flow $ 48,761 $ 121,587 The differences in Adjusted EBITDA and Free Cash Flow between CSC Holdings and Altice USA relate to the transfer of certain workers' compensation, general and automobile liability liabilities to the Captive during 2024.
The following is a reconciliation of CSC Holdings' net income (loss) to Adjusted EBITDA (unaudited): CSC Holdings Years ended December 31, 2025 2024 Net loss $ (1,845,379) $ (77,420) Income tax benefit (100,175) (8,272) Other expense, net 3,051 5,675 Gain on interest rate swap contracts, net (613) (18,632) Gain on investments and sale of affiliate interests, net (5) (670) Loss on extinguishment of debt and write-off of deferred financing costs 23,502 12,901 Interest expense, net 1,797,008 1,764,696 Depreciation and amortization 1,696,974 1,642,231 Restructuring, impairments and other operating items 1,687,130 23,696 Share-based compensation 64,087 67,162 Adjusted EBITDA $ 3,325,580 $ 3,411,367 Refer to Optimum Communications' Management's Discussion and Analysis of Financial Condition and Results of Operations herein. 62 The following is a reconciliation of CSC Holdings' net cash flow from operating activities to Free Cash Flow (Deficit) (unaudited): CSC Holdings Years ended December 31, 2025 2024 Net cash flows from operating activities $ 1,234,127 $ 1,481,774 Less: Capital expenditures (cash) (1,347,294) (1,433,013) Free Cash Flow (Deficit) $ (113,167) $ 48,761 The differences in Adjusted EBITDA and Free Cash Flow (Deficit) between CSC Holdings and Optimum Communications relate to the transfer of certain workers' compensation, general and automobile liability liabilities to the Captive during 2024.
Adjusted EBITDA Adjusted EBITDA amounted to $3,413,181 and $3,608,890 for the years ended December 31, 2024 and 2023, respectively. 56 Adjusted EBITDA is a non-GAAP measure that is defined as net income (loss) excluding income taxes, non-operating income or expenses, gain (loss) on extinguishment of debt and write-off of deferred financing costs, gain (loss) on interest rate swap contracts, gain (loss) on derivative contracts, gain (loss) on investments and sale of affiliate interests, interest expense, net, depreciation and amortization, share-based compensation, restructuring, impairments and other operating items (such as significant legal settlements and contractual payments for terminated employees).
See "—Liquidity and Capital Resources—Capital Expenditures" for additional information regarding our capital expenditures. 52 Non-GAAP Financial Measures We define Adjusted EBITDA, which is a non-GAAP financial measure, as net income (loss) excluding income taxes, non-operating income or expenses, gain (loss) on extinguishment of debt and write-off of deferred financing costs, gain (loss) on interest rate swap contracts, gain (loss) on derivative contracts, gain (loss) on investments and sale of affiliate interests, interest expense, net, depreciation and amortization, share-based compensation, restructuring, impairments and other operating items (such as significant legal settlements and contractual payments for terminated employees).
Free Cash Flow Free Cash Flow was $149,388 and $121,587 for the years ended December 31, 2024 and 2023, respectively. The increase in Free Cash Flow in 2024 as compared to 2023 is primarily due to a decrease in cash capital expenditures, partially offset by a decrease in cash from operating activities driven by timing of cash receipts and disbursements.
Free Cash Flow (Deficit) Free Cash Flow was $(118,837) and $149,388 for the years ended December 31, 2025 and 2024, respectively. The decrease in Free Cash Flow in 2025 as compared to 2024 was due to a decrease in net cash provided by operating activities, partially offset by a decrease in capital expenditures.
See Note 12 of our consolidated financial statements for further details of our outstanding interest rate swap contracts. 64 Capital Expenditures The following table presents our capital expenditures: Years Ended December 31, 2024 2023 Customer premise equipment $ 407,898 $ 277,194 Network infrastructure 530,162 924,476 Support and other 285,636 242,235 Business services 209,317 260,906 Capital expenditures (cash basis) 1,433,013 1,704,811 Right-of-use assets acquired in exchange for finance lease obligations 38,830 133,056 Notes payable for the purchase of equipment and other assets 50,642 213,325 Change in accrued and unpaid purchases and other 64,277 (169,953) Capital expenditures (accrual basis) $ 1,586,762 $ 1,881,239 Customer premise equipment includes expenditures for drop cable, fiber gateways, modems, routers, and other equipment installed at customer locations.
Capital Expenditures The following table presents our capital expenditures: Years Ended December 31, 2025 2024 Customer premise equipment $ 349,366 $ 407,898 Network infrastructure 504,368 530,162 Support and other 254,173 285,636 Business services 239,387 209,317 Capital expenditures (cash basis) 1,347,294 1,433,013 Right-of-use assets acquired in exchange for finance lease obligations 63,498 38,830 Notes payable for the purchase of equipment and other assets — 50,642 Change in accrued and unpaid purchases and other (40,178) 64,277 Capital expenditures (accrual basis) $ 1,370,614 $ 1,586,762 Customer premise equipment includes expenditures for drop cable, fiber gateways, modems, routers and other equipment installed at customer locations.
Telephony revenue is derived principally through monthly charges to residential customers of our telephony services. Telephony revenue decreased $22,260 (7%) for the year ended December 31, 2024 compared to the year ended December 31, 2023. The decrease was due to a decline in telephony customers, partially offset by higher average recurring telephony revenue per telephony customer.
Telephony revenue decreased $24,261 (9%) for the year ended December 31, 2025 compared to the year ended December 31, 2024. The decrease was due to a decline in telephony customers, partially offset by higher average recurring telephony revenue per telephony customer.
Other revenue includes revenue from sales of mobile equipment and other miscellaneous revenue streams. Other revenue increased $10,919 (23%) for the year ended December 31, 2024 compared to the year ended December 31, 2023.
Other Revenue Other revenue for the years ended December 31, 2025 and 2024 was $78,341 and $59,399, respectively. Other revenue includes revenue from sales of mobile equipment and other miscellaneous revenue streams. 57 Other revenue increased $18,942 (32%) for the year ended December 31, 2025 compared to the year ended December 31, 2024.
Other Operating Expenses Other operating expenses for the years ended December 31, 2024 and 2023 amounted to $2,711,828 and $2,646,258, respectively. Other operating expenses include staff costs and employee benefits including salaries of company employees and related taxes, benefits and other employee related expenses, as well as third-party labor costs.
Other operating expenses include staff costs and employee benefits including salaries of company employees and related taxes, benefits, and other employee related expenses, as well as third-party labor costs.
Our ongoing FTTH network build has enabled us to deliver multi-gig broadband speeds to FTTH customers in order to meet the growing data needs of residential and business customers. In addition, we offer a full service mobile offering to consumers across our footprint.
Our ongoing FTTH network build has enabled us to deliver multi-gig broadband speeds to FTTH customers in order to meet the growing data needs of residential and business customers. Additionally, we are investing in our HFC network which includes a multi-gig network upgrade plan through targeted mid-split upgrades.
See Note 10 for additional information. (b) Represent costs to early terminate contracts with vendors. (c) Includes a credit resulting from the waiver of a payment obligation in June 2024 related to a patent infringement settlement agreement reached in the fourth quarter of 2022 and a credit resulting from the indemnification from a supplier related to this matter.
(d) 2024 amount includes a credit resulting from the waiver of a payment obligation in June 2024 related to a patent infringement settlement agreement reached in the fourth quarter of 2022 (of which $65,000 of the settlement was paid in 2022) and a credit resulting from the indemnification from a supplier related to this matter.
Our effective tax rate in 2023 includes the impact of the capital loss recognized from the sale of our Cheddar News business in December 2023 and the impact of the impairment of goodwill related to our News and Advertising business that was not deductible for tax purposes. 58 CSC HOLDINGS, LLC The consolidated statements of operations of CSC Holdings are essentially identical to the consolidated statements of operations of Altice USA, except for the following: CSC Holdings Years ended December 31, 2024 2023 (in thousands) Net income (loss) attributable to Altice USA stockholders $ (102,918) $ 53,198 Adjustments to reconcile to net income (loss) attributable to CSC Holdings' sole member: Income tax benefit (expense) 4,201 (3,049) Interest expense, net (1,530) — Other operating expenses (1,814) — Net income (loss) attributable to CSC Holdings' sole member $ (102,061) $ 50,149 CSC Holdings Years ended December 31, 2024 2023 (in thousands) Altice USA Adjusted EBITDA $ 3,413,181 $ 3,608,890 Adjustments to reconcile to CSC Holdings' Adjusted EBITDA: Other operating expenses (1,814) — CSC Holdings Adjusted EBITDA $ 3,411,367 $ 3,608,890 Refer to Altice USA's Management's Discussion and Analysis of Financial Condition and Results of Operations herein.
Our effective tax rate in 2024 includes the impact of tax deficiencies on share-based compensation and the increase in our uncertain tax positions reserve. 61 CSC HOLDINGS, LLC The consolidated statements of operations of CSC Holdings are essentially identical to the consolidated statements of operations of Optimum Communications, except for the following: CSC Holdings Years ended December 31, 2025 2024 (in thousands) Net loss attributable to Optimum Communications stockholders $ (1,869,024) $ (102,918) Adjustments to reconcile to net loss attributable to CSC Holdings' sole member: Income tax benefit 3,267 4,201 Interest expense, net (5,546) (1,530) Other operating expenses (10,053) (1,814) Net loss attributable to CSC Holdings' sole member $ (1,881,356) $ (102,061) CSC Holdings Years ended December 31, 2025 2024 (in thousands) Optimum Communications Adjusted EBITDA $ 3,335,633 $ 3,413,181 Adjustments to reconcile to CSC Holdings' Adjusted EBITDA: Other operating expenses (10,053) (1,814) CSC Holdings Adjusted EBITDA $ 3,325,580 $ 3,411,367 Refer to Optimum Communications' Management's Discussion and Analysis of Financial Condition and Results of Operations herein.
The increase was primarily due to increases in ethernet and managed router revenue from our Lightpath business, partially offset by a decrease in wholesale revenue and a decrease in SMB customers. News and Advertising Revenue News and advertising revenue for the years ended December 31, 2024 and 2023 was $486,172 and $447,742, respectively.
Business services and wholesale revenue increased $17,297 (1%) for the year ended December 31, 2025 compared to the year ended December 31, 2024. The increase was primarily due to increases in ethernet and indefeasible right of use revenue from our Lightpath business, partially offset by a decrease in wholesale revenue and a decrease in SMB customers.
These Restricted Group subsidiaries are subject to the covenants and restrictions of CSC Holdings’ credit facility and indentures governing the notes issued by CSC Holdings. Presented below is financial information that reflects a reconciliation of net income (loss) to Adjusted EBITDA for the years ended December 31, 2024 and 2023.
Presented below is financial information that reflects a reconciliation of net income (loss) to Adjusted EBITDA for the years ended December 31, 2025 and 2024.
In 2023, our financing activities consisted primarily of the repayment of long-term debt of $2,688,009, and principal payments on finance lease obligations of $149,297, partially offset by net proceeds from long-term debt of $2,700,000.
In 2025, our financing activities consisted primarily of proceeds from long-term debt of $3,835,000, offset by the repayment of debt of $2,560,602, additions to deferred financing costs of $170,544, and principal payments on finance lease obligations of $103,241.
For more information, see "Risk Factors" and "Business-Competition" included herein. We derive revenue principally through monthly charges to residential customers of our broadband, video, telephony and mobile services. We also derive revenue from DVR, VOD, pay-per-view, installation and home shopping commissions.
For more information, see "Risk Factors" and "Business—Competition" included herein. We derive revenue principally through monthly charges to residential customers of our broadband, video, telephony, and mobile services. Our residential broadband, video, telephony, and mobile services accounted for approximately 41%, 30%, 3%, and 2% respectively, of our consolidated revenue for the year ended December 31, 2025.
Video Revenue Video revenue for the years ended December 31, 2024 and 2023 was $2,896,600 and $3,072,011, respectively. Video revenue is derived principally through monthly charges to residential customers of our video services. Video revenue decreased $175,411 (6%) for the year ended December 31, 2024 compared to the year ended December 31, 2023.
Broadband revenue is derived principally through monthly charges to residential subscribers of our broadband services. Broadband revenue decreased $103,230 (3%) for the year ended December 31, 2025 compared to the year ended December 31, 2024.
Broadband revenue is derived principally through monthly charges to residential subscribers of our broadband services. Broadband revenue decreased $179,012 (5%) for the year ended December 31, 2024 compared to the year ended December 31, 2023. The decrease was primarily due to decreases in broadband customers and lower average recurring broadband revenue per broadband customer.
The decrease was due primarily to decreases in broadband customers, partially offset by higher average recurring broadband revenue per broadband subscriber, primarily driven by certain rate increases. Video Revenue Video revenue for the years ended December 31, 2025 and 2024 was $2,590,790 and $2,896,600, respectively. Video revenue is derived principally through monthly charges to residential customers of our video services.
See Note 16 . See Note 11 to our consolidated financial statements for further information regarding our outstanding debt.
See Note 16 . The amounts in the table above do not include the effects of the January 2026 debt transactions discussed in Note 11 . See Note 11 to our consolidated financial statements for further information regarding our outstanding debt.
For financing purposes, we have two debt silos: CSC Holdings and Lightpath. The CSC Holdings silo is structured as a restricted group (the "CSC Holdings Restricted Group") and an unrestricted group, which includes Lightpath and certain designated subsidiaries. The CSC Holdings Restricted Group is comprised of CSC Holdings and substantially all of its wholly-owned operating subsidiaries excluding Lightpath.
The CSC Holdings silo is structured as a restricted group (the "CSC Holdings Restricted Group") and an unrestricted group, which includes certain designated subsidiaries.
The decrease in depreciation and amortization of $2,066 for the year ended December 31, 2024 as compared to 2023 was due to lower expense resulting from certain assets becoming fully amortized, offset by higher depreciation expense resulting from increased asset additions in 2024, including losses related to the disposal of plant and equipment and accelerated depreciation.
The increase in depreciation and amortization of $54,743 for the year ended December 31, 2025 as compared to 2024 was due to increased depreciation related to asset additions in 2025 and 2024, partially offset by decreased expense related to assets that had become fully depreciated.
In February 2024, we redeemed the CSC Holdings 5.250% Senior Notes due 2024 and 5.250% Series B Senior Notes due 2024 with proceeds of borrowings under the CSC Revolving Credit Facility. See Note 11 of our consolidated financial statements for further details of our outstanding senior guaranteed notes and senior notes.
See Note 11 to our consolidated financial statements for further information regarding the CSC Credit Facilities Agreement. CSC Holdings Senior Guaranteed Notes and Senior Notes See Note 11 of our consolidated financial statements for further details of our outstanding senior guaranteed notes and senior notes.
The decrease in cash provided by operating activities of $344,624 in 2024 as compared to 2023 resulted from a decrease in income from continuing operations before depreciation and amortization and other non-cash items of $455,345, partially offset by an increase of $110,721 due to changes in working capital (increases due to the timing of payments for accounts payable and prepaid expense and other assets, net of increases in tax payments of $55,058 and interest payments of $38,784, and a decrease from the collections of accounts receivable, among other items.) Investing Activities Net cash used in investing activities for the years ended December 31, 2024 and 2023 was $1,455,513 and $1,706,523, respectively, and consisted primarily of capital expenditures of $1,433,013 and $1,704,811 , respectively, primarily relating to network infrastructure and customer premise equipment.
The decrease in cash provided by operating activities of $247,647 in 2025 as compared to 2024 resulted from a decrease of $263,459 due to changes in working capital (decreases due to the timing of payments for accounts payable and prepaid expense and other assets, a decrease from the collections of accounts receivable and an increase in interest payments of $164,911, offset by a decrease in tax payments of $96,118, among other items), partially offset by an increase in income from continuing operations before depreciation and amortization and other non-cash items of $15,812.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeAs of December 31, 2024, we did not hold and have not issued derivative instruments for trading or speculative purposes.
Biggest changeIn November 2024, Lightpath entered into an interest rate swap contract on a notional amount of $95,000, whereby Lightpath pays interest of 3.979% and it receives interest based on one-month SOFR through December 2026. As of December 31, 2025, we did not hold and have not issued derivative instruments for trading or speculative purposes. Item 8.
See Note 12 to our consolidated financial statements for a summary of interest rate swap contracts outstanding at December 31, 2024 . Our outstanding interest rate swap contracts are not designated as hedges for accounting purposes. Accordingly, the changes in the fair value of these interest rate swap contracts are recorded through the statements of operations.
See Note 12 to our consolidated financial statements for a summary of interest rate swap contracts outstanding at December 31, 2025 . Our outstanding interest rate swap contracts are not designated as hedges for accounting purposes. Accordingly, the changes in the fair value of these interest rate swap contracts are recorded through the statements of operations.
The effect of a hypothetical 100 basis point decrease in interest rates prevailing at December 31, 2024 would increase the estimated fair value of our fixed rate debt by $489,655 to $13,869,910. This estimate is based on the assumption of an immediate and parallel shift in interest rates across all maturities.
The effect of a hypothetical 100 basis point decrease in interest rates prevailing at December 31, 2025 would increase the estimated fair value of our fixed rate debt by $380,601 to $14,137,762. This estimate is based on the assumption of an immediate and parallel shift in interest rates across all maturities.
For the year ended December 31, 2024 , we recorded a gain on interest rate swap contracts of $18,632, and had a fair value at December 31, 2024 of $8,466 recorded as other assets, long-term on the consolidated balance sheet .
For the year ended December 31, 2025 , we recorded a gain on interest rate swap contracts of $613, and had a fair value at December 31, 2025 of $2,274 recorded as prepaid expenses and other current assets, and a fair value of $1,342 recorded as other current liabilities on the consolidated balance sheet .
In connection with these early terminations, we received cash of $43,182 presented in operating activities in our consolidated statements of cash flows and incurred a loss of $52,943 which is included in the net gain on interest rate swap contracts reflected in our consolidated statements of operations. 68 In November 2024, Lightpath entered into an interest rate swap contract on a notional amount of $95,000, whereby Lightpath pays interest of 3.979% and it receives interest based on one-month SOFR through December 2026.
In connection with these early terminations, we received cash of $43,182 presented in operating activities in our consolidated statements of cash flows and incurred a loss of $52,943 which is included in the net gain on interest rate swap contracts reflected in our consolidated statements of operations.
Fair Value of Debt At December 31, 2024, the fair value of our fixed rate debt, comprised of senior guaranteed and senior secured notes, senior notes, and supply chain financing of $13,380,255 was lower than its carrying value of $17,755,137 by $4,374,882.
Fair Value of Debt At December 31, 2025, the fair value of our fixed rate debt, comprised of senior guaranteed and senior secured notes, senior notes, unsub group credit facility, and receivables facility loan of $13,757,161 was lower than its carrying value of $20,486,993 by $6,729,832.
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Financial Statements and Supplementary Data For information required by Item 8, refer to the Index to Financial Statements on page F-1.

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