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