Altice USA Inc.

Company Overview

Business Model: Optimum Communications, Inc. is a holding company that, through its subsidiaries, is one of the largest broadband communications and video services providers in the United States. The company delivers high-speed broadband, video, mobile, and advertising services to residential and business customers. It also offers news programming and advertising services. Operations are conducted through a fiber-rich hybrid-fiber coaxial ("HFC") broadband network and a fiber-to-the-home ("FTTH") network.

Market Position: Optimum Communications holds a leading market position within its footprint, leveraging a technologically advanced network infrastructure, including an ongoing FTTH build-out. The company's evolving video services, mobile service, and focus on enhancing the customer experience are key competitive differentiators. Optimum Communications is controlled by Patrick Drahi through Next Alt. S.à.r.l.

Recent Strategic Developments:

• Corporate Rebranding: In November 2025, the company changed its corporate name from Altice USA, Inc. to Optimum Communications, Inc.
• Network Expansion & Upgrades: Continued expansion of its FTTH network, reaching approximately 3.1 million homes and businesses as of December 31, 2025, with plans for further deployment. The existing HFC network is also being upgraded with Data Over Cable Service Interface Specification ("DOCSIS") 3.1 technology.
• Video Service Modernization: In 2025, the company expanded the availability of new video offerings, including Entertainment TV, Extra TV, and Everything TV, along with Optimum Stream, to additional markets.
• Mobile Service Enhancements: Expanded mobile service offerings in 2024 to include Mobile Device Protection, connection-back-up service, and the ability to purchase additional mobile equipment such as Apple iPads.
• Lightpath Acquisitions: In 2024, Cablevision Lightpath LLC acquired a fiber network between New York City and Ashburn, Virginia, and a metro network in New York City and New Jersey.
• Asset Dispositions: In July 2025, the company completed the sale of certain tower assets for $59,908, resulting in a gain of $55,114. In December 2025, the company transferred its interest in i24 NEWS to an entity under common control.

Geographic Footprint: Optimum Communications operates across 21 states, primarily in the New York metropolitan area and various markets in the south-central United States. Its FTTH network passes approximately 3.1 million homes and businesses. Cablevision Lightpath LLC primarily serves the New York, Boston, and Miami metropolitan areas, with dark fiber and transport services in Phoenix, Columbus, and eastern Pennsylvania. News 12 Networks operates across the New York tri-state area.

Financial Performance

Revenue Analysis

Profitability Metrics (2025):

• Gross Margin: 69.3%
• Operating Margin: -1.3%
• Net Margin: -21.3%

Investment in Growth (2025):

• Software Development Investment: $219,177
• Capital Expenditures: $1,347,294
• Strategic Investments: The company continues to invest in its FTTH network build and HFC network upgrades. In 2024, Cablevision Lightpath LLC acquired a fiber network between New York City and Ashburn, Virginia, and a metro network in New York City and New Jersey.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: Not explicitly detailed as a significant program; treasury stock at cost is $10.
• Dividend Payments: No cash dividends were paid in 2025, 2024, or 2023.
• Dividend Yield: Not applicable.
• Future Capital Return Commitments: The company has no current plans to pay cash dividends for the foreseeable future, intending to retain future earnings for operations, expansion, and debt repayment.

Balance Sheet Position (as of December 31, 2025):

• Cash and Equivalents: $1,012,201
• Total Debt: $26,206,214 (carrying value, net of unamortized deferred financing costs, discounts, and premiums)
• Net Cash Position: $(25,194,013)
• Credit Rating: S&P lowered the issuer credit rating to CCC+ in May 2024, and Moody's Investors Service lowered CSC Holdings, LLC's corporate family rating to Caa2 in May 2024. These ratings remained unchanged as of January 2026 for S&P and December 2025 for Moody's.
• Debt Maturity Profile: As of December 31, 2025, $7,364,940 of long-term debt is maturing in 2027. Management is pursuing refinancing or raising additional capital, but there is no assurance of success. Failure to secure committed funding by April 2026 may raise substantial doubt about the company's ability to continue as a going concern.

Cash Flow Generation (2025):

• Operating Cash Flow: $1,228,457
• Free Cash Flow: $(118,837) (Deficit)
• Cash Conversion Metrics: Not explicitly detailed.

Operational Excellence

Production & Service Model: Optimum Communications delivers broadband, video, telephony, and mobile services through a converged fixed and mobile network. The company utilizes a fiber-rich hybrid-fiber coaxial ("HFC") broadband network and an expanding fiber-to-the-home ("FTTH") network. FTTH offers symmetrical speeds up to 8 Gbps, while most of the HFC footprint provides up to 1 Gbps. Advanced services include Smart WiFi 6 and 6E routers, Optimum TV (with broadcast, cable, and OTT services like Netflix, Amazon Prime, YouTube), video-on-demand ("VOD"), high-definition ("HD") channels, and digital video recorder ("DVR"). Telephony services are provided via Voice over Internet protocol ("VoIP"). Mobile service is delivered over a nationwide network with Long Term Evolution ("LTE") and 5G coverage through an infrastructure-based mobile virtual network operator ("MVNO") agreement with T-Mobile U.S., Inc., leveraging the Optimum Wi-Fi network for traffic offloading.

Supply Chain Architecture: Key Suppliers & Partners:

• Customer Premise and Network Equipment: Altice Labs, Sagemcom, and Ubee (from a limited number of vendors).
• Mobile Network Partners: T-Mobile U.S., Inc., AT&T Inc., Appalachian Wireless, and US Cellular.
• Mobile Handset Manufacturers: Apple and Motorola.
• Programming Vendors: Numerous broadcast and cable networks.

Facility Network:

• Headquarters: Leased office space in Long Island City, New York, with an option to extend the lease through 2037.
• Administrative Offices: Owned building in Bethpage, New York.
• Operational Facilities: Owns or leases real estate across its operating areas for call centers, corporate facilities, business offices, retail stores (branded Optimum), earth stations, transponders, microwave towers, warehouses, headend equipment, hub sites, access studios, and microwave receiving antennae.
• Network Operations Center: Operates a 24/7 network operations center to monitor network performance and ensure service reliability.

Operational Metrics (as of December 31, 2025):

• Total Passings: 10,008.2 thousand
• Total Customer Relationships: 4,333.6 thousand
• Penetration of total passings: 43.3%
• FTTH total passings: 3,096.0 thousand
• FTTH customer relationships: 715.9 thousand
• Penetration of FTTH total passings: 23.1%
• Average Revenue Per User ("ARPU") (Residential): $134.49

Market Access & Customer Relationships

Go-to-Market Strategy: Distribution Channels:

• Direct Sales: Utilizes mass media (television, online video, radio, print, outdoor advertising), highly targeted digital tactics (search, social marketing, 1:1 digital campaigns), direct mail, outbound telemarketing, and door-to-door sales.
• Customer Interaction Points: Inbound call centers, e-commerce website, and retail stores (Optimum stores) where sales teams use AI-assisted technologies.
• Channel Partners: Engages in "Interconnects" with other video platform operators, such as NY Interconnect, LLC (a joint venture with Charter Communications, Inc. and Comcast Corporation), to jointly sell local advertising and expand geographic reach.
• Digital Platforms: Online sales channels and e-commerce initiatives are integral to customer acquisition.

Customer Portfolio (as of December 31, 2025): Residential Customers:

• Total residential customer relationships: 3,963.8 thousand
• Broadband: 3,811.4 thousand
• Video: 1,628.4 thousand
• Telephony: 1,041.6 thousand
• Mobile lines: 622.5 thousand (including 604.9 thousand residential lines)

Business Customers:

• Total Small and Medium-sized Business ("SMB") customers: 369.9 thousand
• SMB Broadband: 342.0 thousand
• SMB Video: 72.6 thousand
• SMB Telephony: 182.5 thousand
• SMB Mobile lines: 17.6 thousand
• Enterprise Customers: Served primarily through Cablevision Lightpath LLC, a 50.01% owned subsidiary. Lightpath's fiber network connects approximately 17,700 locations, serving health care, financial, education, legal and professional services, public sector, communication providers, incumbent local exchange carriers ("ILEC"), competitive local exchange carriers ("CLEC"), and hyperscaler customers.

Geographic Revenue Distribution (2025):

• Residential broadband: 41% of total revenue
• Residential video: 30% of total revenue
• Residential telephony: 3% of total revenue
• Residential mobile: 2% of total revenue
• Business services and wholesale: 17% of total revenue
• News and advertising: 5% of total revenue
• Other: 1% of total revenue

Competitive Intelligence

Market Structure & Dynamics

Industry Characteristics: Optimum Communications operates in a highly competitive, consumer-driven industry characterized by rapid technological change and evolving consumer preferences. Key trends include the proliferation of Internet-delivered video content (Over-the-Top, "OTT"), content owners prioritizing direct-to-consumer streaming, and increasing consolidation in the broadcast television sector. Government subsidies for broadband deployment in "unserved" or "underserved" areas are also intensifying competition.

Competitive Positioning Matrix:

Direct Competitors

Primary Competitors:

• Broadband Services: Verizon Communications Inc. (including former Frontier Communications Parent, Inc. operations), AT&T Inc., T-Mobile U.S., Inc. (fixed wireless), Charter Communications, Inc., Comcast Corporation, Lumen Technologies, Inc. (CenturyLink and Quantum Fiber), Tachus, T-Fiber, and emerging satellite-based broadband providers.
• Video Services: Other cable providers, direct broadcast satellite ("DBS") providers (DirecTV, DISH Network, a wholly-owned subsidiary of EchoStar Corporation), and a wide array of Internet-delivered video content providers (Netflix, Hulu, Disney+, Apple TV, YouTube TV, Amazon Prime, Sling TV, streaming services from Warner Bros. Discovery, Paramount Global, The Walt Disney Company), as well as broadcast television.
• Telephony Services: Wireline, wireless, and Voice over Internet protocol ("VoIP") phone service providers (Vonage, Microsoft Teams, Facetime, WhatsApp, magicJack), and alternative communication options like text messaging and social networking services.
• Mobile Wireless Services: National incumbent network-based mobile service providers (AT&T Inc., T-Mobile U.S., Inc., Verizon Communications Inc.), and reseller or MVNO providers (Tracfone, Boost Mobile, Cricket Wireless).
• Business Services: Local incumbent telephone companies (AT&T Inc., Lumen Technologies, Inc., Verizon Communications Inc.), other national and regional business services competitors, local fiber providers, and fixed wireless broadband providers.
• Advertising Services: Local broadcast stations, national cable and broadcast networks, radio stations, print media, digital and social media platforms (Meta, Google), online advertising companies (Google), retail media networks (Amazon), content providers (Disney), connected TV providers, advertising agencies (Omnicom Group), measurement platforms, and digital advertising platforms.

Emerging Competitive Threats: New fiber providers (Tachus, T-Fiber), large national providers (Comcast Corporation, Charter Communications, Inc.) deploying significant fiber and network overbuilds, 5G Fixed Wireless Access ("FWA") services from mobile broadband providers, and content owners increasingly prioritizing direct-to-consumer streaming.

Competitive Response Strategy: Optimum Communications aims to compete by leveraging its advanced network infrastructure, expanding FTTH build-out, evolving video services, mobile service, and enhancing the customer experience. The company invests in its services, products, and marketing to maintain competitiveness.

Risk Assessment Framework

Strategic & Market Risks

Market Dynamics: The company operates in a highly competitive, consumer-driven industry facing intense competition from various broadband, video, mobile, fixed wireless, and fixed-line telephony providers. Rapid technological changes, evolving consumer preferences (e.g., shift to OTT video), and increasing government subsidies for competitors in "unserved" or "underserved" areas pose significant risks. Consolidation in the broadcast sector may increase programming costs and reduce negotiation leverage. Technology Disruption: Failure to anticipate and successfully implement new technologies for products and services could adversely affect customer attraction and retention. The proliferation of diverse video content delivery systems and rapidly evolving wireless Internet solutions present ongoing technological challenges.

Operational & Execution Risks

Supply Chain Vulnerabilities: The company relies on a limited number of third-party vendors for critical equipment, hardware, licenses, and services. Disruptions in these relationships due to contractual disagreements, operational failures, tariffs, or inability to access the latest technology could impair service delivery and increase costs. Geographic Concentration: Portions of the company's service areas are susceptible to severe weather events and natural disasters, which can cause significant service disruptions, property damage, and increased costs, as experienced during Hurricane Helene in Western North Carolina in September 2024. Capacity Constraints: Unanticipated increases in the use of bandwidth-intensive Internet-based services could necessitate higher expenses for network expansion or lead to suboptimal customer experiences. Network Disruptions: Risks include natural disasters, power outages, accidents, maintenance failures, cyber attacks, and terrorist attacks, which could lead to service degradation, outages, and reputational damage. Cybersecurity Incidents: The company is a regular target of cyber intrusions (e.g., hacking, phishing, denial of service attacks, ransomware). Successful attacks could damage IT systems, misappropriate customer/employee data, result in costly government enforcement actions, litigation, and negative publicity. AI Use: The incorporation of Artificial Intelligence ("AI") technology in business operations presents risks such as flawed algorithms, unintended consequences, and potential legal or regulatory actions, which could harm the company's reputation and business. Labor Relations: Approximately 380 employees are represented by unions (Communications Workers of America and International Brotherhood of Electrical Workers). Collective bargaining agreements expire between February 2026 and April 2027, posing risks of increased expenses or labor disruptions.

Financial & Regulatory Risks

Market & Financial Risks: Optimum Communications is highly leveraged, with approximately $26.2 billion in total indebtedness as of December 31, 2025. A substantial amount of $7.4 billion of long-term debt matures in 2027. The company's ability to refinance this debt or raise additional capital is uncertain, and failure to secure funding by April 2026 may raise substantial doubt about its ability to continue as a going concern. Volatility in financial markets, rising interest rates, and a cooperation agreement among certain creditors (the "Co-Op") may restrict access to capital markets. Credit & Liquidity: The company's ability to fund operations, capital expenditures, and debt service depends on future operating performance and access to capital markets. Downturns could lead to lower demand, reduced advertising, and increased customer payment defaults, impacting cash flows and potentially leading to covenant breaches. Regulatory & Compliance Risks: The business is subject to extensive federal, state, and local regulation across cable, telephone, mobile, and broadband industries. Key risks include: * Franchising: Non-renewal or termination of cable system franchises (e.g., New York City franchise expired December 2025), non-exclusive franchises leading to overbuilds, and potential for new, more restrictive requirements from local authorities. * Pricing & Packaging: Potential for new rate regulation on video services or other services, and restrictions on marketing options. State-level price regulation for low-income broadband services (New York, Connecticut). * Programming: Increasing programming and retransmission costs, potential disputes with programmers leading to service blackouts, and regulatory changes affecting channel carriage. * Broadband: Uncertainty regarding regulatory classification of broadband services, state-level "net neutrality" rules, digital discrimination regulations, and consumer label requirements. * Telephony: Potential for additional regulatory burdens and compliance costs if VoIP services are formally classified as telecommunications services. * Privacy & Data Security: Increasing federal and state privacy regulations (e.g., California Consumer Privacy Act, California Privacy Rights Act, Virginia Consumer Data Protection Act, Colorado, Utah, Texas, Kentucky, New Jersey laws, General Data Protection Regulation, UK GDPR) and data breach notification obligations. * Copyright Liability: Potential liability for content distributed over networks, as evidenced by ongoing litigation (e.g., Warner Records Inc. et al. v. Optimum Communications, Inc.). * Government Subsidies: Risk of competitors receiving government subsidies to overbuild existing plant, or the expiration of subsidies for low-income subscribers (e.g., Affordable Connectivity Program ended June 1, 2024).

Innovation & Technology Leadership

Research & Development Focus: Core Technology Areas:

• Fiber-to-the-Home (FTTH) Network: Significant investment in building out a state-of-the-art FTTH network to deliver multi-gig broadband speeds.
• Hybrid-Fiber Coaxial (HFC) Network: Ongoing upgrades to the existing HFC network through digital deployment and Data Over Cable Service Interface Specification ("DOCSIS") 3.1 technology.
• Wireless Technology: Deployment of Smart WiFi 6 and 6E routers for whole-home WiFi coverage and a nationwide mobile core network supporting LTE and 5G.
• Information Technology: Continuous investment in IT infrastructure, including AI, machine learning, and automation, to improve system reliability, functionality, scalability, and customer service capabilities.

Innovation Pipeline: The company's strategy includes the continued expansion of its FTTH network, deployment of advanced WiFi routers, and the introduction of modern video offerings (Entertainment TV, Extra TV, Everything TV, and Optimum Stream) to cater to evolving customer viewing preferences.

Intellectual Property Portfolio: Optimum Communications relies on its patents, copyrights, trademarks, and trade secrets, as well as licenses and agreements with vendors. The company also leverages access to proprietary technology from Altice Group Lux S.à.r.l. ("Altice Europe"), including through Altice Labs, and holds licenses to the "Altice" name and its derivatives from Next Alt. S.à.r.l.

Technology Partnerships: Strategic alliances include Altice Labs, Altice Europe's technology, services, and innovation center, which provides equipment and software development services.

Leadership & Governance

Executive Leadership Team

Leadership Continuity: Not explicitly detailed in the filing.

Board Composition: The Board of Directors includes Dennis Mathew, Marc Sirota, Maria Bruzzese, David Drahi, Patrick Drahi, Dexter Goei, Mark Mullen, Dennis Okhuijsen, Susan C. Schnabel, Charles Stewart, and Raymond Svider. Optimum Communications is a "controlled company" under New York Stock Exchange ("NYSE") rules, as Next Alt. S.à.r.l. controls a majority of the voting power. Consequently, the company is exempt from certain corporate governance requirements, such as having a majority of independent directors or a governance and nominating committee.

Human Capital Strategy

Workforce Composition (as of December 31, 2025):

• Total Employees: Approximately 9,500
• Geographic Distribution: Approximately 89% of employees are U.S. based.
• Skill Mix: Employees perform work in various environments, including customer homes/businesses, field operations, retail stores, centers, and offices.
• Union Representation: Approximately 380 employees are represented by either the Communications Workers of America ("CWA") or the International Brotherhood of Electrical Workers ("IBEW").

Talent Management: Acquisition & Retention:

• Hiring Strategy: Focused on attracting and retaining talent through competitive total incentive programs.
• Retention Strategies: Offers market-competitive and inclusive benefits, including healthcare, life and disability insurance, a 401(k) plan with company matching contributions, and paid time off.
• Employee Value Proposition: Committed to fostering a "best-in-class employee experience" by promoting an environment where employees can demonstrate expertise, create community, and take ownership. The company values recognition and has programs to celebrate employee achievements.

Diversity & Development:

• Diversity Metrics: Committed to fostering a workplace that embraces equal opportunity for all and reflects the diverse communities served.
• Development Programs: Provides leaders with development programs through the "Optimum Leader" framework and offers tuition benefits to employees for educational resources.
• Culture & Engagement: Earned certifications from Great Place to Work® and recognition from the Cablefax Top Ops Awards (Work Culture Award) and Built In (Best Places to Work 2025 lists).

Environmental & Social Impact

Environmental Commitments: Climate Strategy: The company's business operations are subject to environmental laws and regulations concerning the use, storage, disposal of, and exposure to hazardous materials, pollutant release, and contamination remediation. These regulations are becoming more stringent over time. Supply Chain Sustainability: Not explicitly detailed in the filing.

Social Impact Initiatives:

• Community Investment: Engages in initiatives and sponsorships focused on digital equity and supporting future innovators through educational programs related to Science, Technology, Engineering and Math ("STEM") and robotics.
• Product Impact: Not explicitly detailed in the filing.

Business Cyclicality & Seasonality

Demand Patterns: The company's performance is sensitive to global economic conditions and consumer spending levels. Macroeconomic factors such as inflation, job losses, foreclosures, bankruptcies, increased fuel and energy costs, higher interest rates, higher taxes, reduced access to credit, and lower home values can negatively affect demand for products and services. Historically, economic downturns have led to lower demand for video services, reduced television advertising, and an increased incidence of customers' inability to pay for services. Planning & Forecasting: The company's long-term plan, which includes estimated future cash flows, is subject to changes in macroeconomic conditions and competitive environments.

Regulatory Environment & Compliance

Regulatory Framework: Optimum Communications' cable, Internet, voice, and mobile services are subject to extensive federal, state, and local laws and regulations, including the Communications Act of 1934, as amended, and rules from the Federal Communications Commission ("FCC"), as well as consumer protection and privacy laws.

Industry-Specific Regulations:

• Cable Television:
  • Franchising: Operates under non-exclusive franchises from state and local authorities, typically for 5-15 years, with some states having no expiration date. Franchise fees are capped at 5% of certain cable service revenues. The New York City franchise, comprising approximately 255 thousand video customers, expired in December 2025, and the company is operating under temporary authority.
  • Pricing and Packaging: Rate regulation is limited to "basic" cable service, with a presumption against regulation unless effective competition is absent. FCC rules require "all-in" price disclosure in bills and advertising. Proposed rules may restrict early termination fees and require prorated billing for the final month of service.
  • Must-Carry/Retransmission Consent: Required to carry certain local broadcast stations ("must-carry") or negotiate for carriage ("retransmission consent"), which often involves substantial compensation increases. Disputes can lead to programming blackouts.
  • Ownership Limitations: FCC reviews broadcast ownership rules every four years, with ongoing consideration of eliminating or modifying caps, which could lead to further industry consolidation and increased leverage for broadcasters.
  • Set-Top Boxes: FCC rules support a retail market for navigation devices, potentially impacting the company's ability to capture user interactions and provide consistent customer support.
  • PEG and Leased Access: Obligations to support public, educational, or governmental ("PEG") channels and provide commercial leased access channels at regulated rates.
  • Pole Attachments: Extensive use of utility poles and conduits, subject to regulated rates by the FCC or states, but not always by municipalities or electric cooperatives.
• Broadband:
  • Regulatory Classification: The FCC reclassified broadband service as a common carrier telecommunications service in 2024, but this order was vacated by the U.S. Sixth Circuit Court of Appeals in 2025. State-level "net neutrality" rules remain in effect in California, New York, and New Jersey.
  • Digital Discrimination: FCC rules adopted in 2023 (effective March 2024) aim to prevent digital discrimination of access based on income, race, ethnicity, etc.
  • Consumer Labels: FCC rules effective in 2024 require broadband providers to display consumer labels with information on prices, rates, data allowances, and speeds.
  • Government Subsidies: Federal and state subsidies for broadband deployment in "unserved" or "underserved" areas could increase competition. The Affordable Connectivity Program ("ACP") ended in June 2024.
  • State Regulation: New York enacted legislation to regulate broadband prices for low-income households, and Connecticut enacted similar legislation in 2025 (effective 2026).
• Telephony Services:
  • VoIP Regulation: Interconnected VoIP services are subject to FCC regulations for E911, local number portability, disability access, outage reporting, and Universal Service Fund ("USF") contributions. Formal classification as a telecommunications service could increase regulatory requirements.
  • Intercarrier Compensation: FCC rules have phased down intercarrier compensation for terminating traffic to a "bill-and-keep" regime.
  • CLEC Subsidiaries: Traditional telecommunications services provided through CLEC subsidiaries are regulated by the FCC and states, requiring compliance with tariffs, reporting, network resiliency, and USF contributions.
• Mobile Service: Subject to FCC and consumer protection regulations similar to network-based wireless carriers (E911, local number portability, privacy, billing, advertising).

Trade & Export Controls: Changes in United States and foreign trade policy, including new or increased tariffs on imported goods, could increase operating costs.

Legal Proceedings:

• Copyright Infringement: The company is a defendant in Warner Records Inc. et al. v. Optimum Communications, Inc., alleging contributory and vicarious copyright infringement by Internet subscribers. The case is stayed pending a Supreme Court decision.
• Breach of Contract: United States Technologies Communication Corp. d/b/a Netceed filed suit alleging breach of contract, which the company is vigorously defending.
• Patent/Copyright Claims: The company receives notices and is named in lawsuits claiming infringement of various patents or copyrights related to its businesses.

Tax Strategy & Considerations

Tax Profile:

• Effective Tax Rate: The effective tax rate was 5.0% for 2025 and 4.9% for 2024.
• Rate Drivers (2025): The 2025 effective tax rate includes the nondeductibility of the $1,611,308 impairment of indefinite-lived cable franchise rights, the impact of tax deficiencies on share-based compensation, and an increase in the uncertain tax positions reserve.
• Geographic Tax Planning: Optimum Communications files a federal consolidated and certain state combined income tax returns with its 80% or more owned subsidiaries. CSC Holdings, LLC and its subsidiaries are included in these consolidated federal income tax returns.
• Tax Reform Impact: The 2025 Omnibus Broadband Bill Act ("OBBBA") permanently increases the deductibility of interest expense based on an EBITDA standard and eliminates the requirement to capitalize and amortize U.S.-based research and experimental expenditures over five years, making them fully deductible in the period incurred.

Insurance & Risk Transfer

Risk Management Framework: Optimum Communications maintains a robust cybersecurity program that utilizes various risk mitigation techniques, including network segmentation, deployment of detection tools, and monitoring compliance with security standards. The company conducts cybersecurity risk assessments, penetration tests, purple team exercises, and data restoration testing with internal and third-party experts. The program aligns with the National Institute of Standards and Technology Cybersecurity Framework ("NIST Framework"). Senior management oversees cybersecurity strategy, with board-level oversight from the audit committee. Insurance Coverage: The company maintains insurance for cyber incidents, though coverage may not apply in all cases or be adequate to cover all liabilities. Risk Transfer Mechanisms: To manage interest rate risk, the company has historically entered into interest rate swap contracts. These contracts are not designated as hedges for accounting purposes, and changes in their fair value are recognized in the consolidated statements of operations. As of December 31, 2025, the company did not hold or issue derivative instruments for trading or speculative purposes.