Sep 19 2026 01:51 AM EST

Altice USA Shares Sink as Revenue Decline and Leverage Raise Concerns

Altice USA, Inc. (NASDAQ: OPTU) has lost almost three‑quarters of its market value in the last half‑year, with the stock down -92.9% over six months. The slide follows a sequence of earnings releases that showed revenue contraction, a modest drop in adjusted EBITDA, and a balance sheet burdened by a debt‑to‑EBITDA ratio above 16‑times. Investors appear to be reassessing the company’s ability to stabilise cash flow while executing its fiber‑overbuild and convergence strategy.

Recent Financial Results

Q2 2026 revenue fell 5.8% year‑over‑year to roughly $2.0 billion. Adjusted EBITDA slipped 2.2% to $786 million, though the margin improved by 140 basis points to 38.8%. The company’s gross margin rose to 71%, up 180 basis points, reflecting a shift toward higher‑margin broadband services.

Subscriber Trends and Operational Metrics

Broadband net subscriber losses narrowed to 40,000 in Q2 2026, leaving an installed base of about 4.0 million. Mobile lines grew by 50,000 net, reaching 724,000 (a 33 % YoY increase). Fiber‑to‑the‑home customers rose by 20,000 to 749,000, a >13 % YoY gain. Convergence ARPU improved 2.4 % YoY to $79.80, while residential ARPU slipped 1.1 % to $1.46.

Balance‑Sheet Pressures

The company carries a debt load of roughly $26 billion, with a net‑debt‑to‑EBITDA multiple of 16.4× as of the 2025 trailing‑12‑month period. Interest coverage is effectively negative (-0.1), and free cash flow to EBITDA is a negative -17.3%. Cash available for operations at the end of Q2 2026 amounted to roughly $970 million (including restricted cash and Lightpath holdings), but a $300 million tender‑offer settlement further reduced liquidity.

Sector and Macro Context

Altice operates in a highly competitive broadband and mobile market where over‑builders and fixed‑wireless rivals are pressuring pricing. A softer advertising environment has also trimmed news‑and‑revenue streams. Inflation‑driven cost pressures have prompted the company to pursue cost‑discipline measures, but the incremental capex required for fiber over‑build (full‑year 2026 capex projected at $1.2‑$1.5 billion) adds to cash‑flow strain.

Key Risks and Uncertainties

The primary risks to Altice’s recovery include continued subscriber churn, especially in the video segment where net losses were 46,000 in Q2 2026, and the ability to generate sustainable cash flow from its fiber‑overbuild program. High leverage limits financial flexibility and makes the company vulnerable to rising interest rates, given a weighted‑average cost of debt of 6.8%. Additionally, any delay in the planned capital‑expenditure schedule or further deterioration in advertising revenue could exacerbate margin pressure.

Analysts have begun to price in a longer‑term turnaround, but the steep share‑price decline of -92.9% over six months reflects lingering doubts about the company’s capacity to reverse the negative earnings trajectory recorded in the 2025 trailing‑12‑month period, where net‑income margin was -21.4%. The next earnings release and any updates on the fiber‑overbuild progress will be closely watched for signs of margin stabilization and cash‑flow improvement.