Optimum to restate 2025-26 results after tax errors
OPTU will restate multiple 2025–2026 periods for deferred tax errors, reducing reported net losses but revealing a material weakness in tax-related internal controls.
Rhea-AI Filing Summary
Optimum Communications, Inc. (OPTU) announced that its Audit Committee, in consultation with management, determined that several previously issued consolidated financial statements should no longer be relied upon due to errors in accounting for deferred income taxes related to earlier non-cash impairments of indefinite-lived cable franchise rights. The company plans to restate its audited financial statements for the year ended December 31, 2025 and its unaudited financial statements for the quarters and year-to-date periods ended September 30, 2025, March 31, 2026, and June 30, 2026, as well as corresponding statements of its subsidiary CSC Holdings, LLC. The restatements are expected to reduce previously reported net losses by correcting understatements of deferred tax benefits and overstatements of a related deferred tax liability by approximately $430 million for the 2025 periods and $720 million for the March 31 and June 30, 2026 periods. These changes will affect total liabilities, accumulated deficit, and total stockholders’ deficiency but will not change previously reported cash balances, revenues, capital expenditures, cash flows, EBITDA, or loss before income taxes. Management is assessing internal control implications and expects to report a material weakness in internal control over financial reporting related to income tax accounting.
Positive
- Restatements are expected to reduce previously reported net losses by approximately $430 million for 2025 periods and $720 million for early 2026.
- The error is non-cash and will not affect previously reported cash balances, revenues, capital expenditures, cash flows, EBITDA or loss before income taxes.
Negative
- OPTU determined that previously issued financial statements for 2025 and early 2026 should no longer be relied upon due to tax accounting errors.
- The company expects to report a material weakness in internal control over financial reporting related to accounting for income taxes during the affected periods.
- Restatements will also affect total liabilities, accumulated deficit, and total stockholders’ deficiency, signaling prior balance sheet misstatements.
- Management warns that additional errors may be identified as it completes the restated filings, which could further impact reported results or filing timing.
Filing Explained
KPMG’s 2025 internal-control opinion is no longer reliable, while the planned restated filings and final error amounts remain pending.
The company says its
The company describes the error identification and expected corrections as preliminary and says additional errors or changes may be identified while it prepares the restated filings.
The next specified resolution is amended filings for the affected Form 10-K and Form 10-Q periods, together with the company’s final assessment of internal-control effectiveness.
8-K Event Classification
3 items: 2.02, 4.02, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 4.02
Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review
Governance
Previously issued financial statements, a related audit report, or a completed interim review should no longer be relied upon.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Net loss reduction (2025 periods): $430 million
Net loss reduction (early 2026): $720 million
Affected metrics (unchanged): 6 metrics
+2 more
5 metrics
Net loss reduction (2025 periods)
$430 million
Expected reduction in previously reported net losses for the three- and nine-month periods ended September 30, 2025 and year ended December 31, 2025
Net loss reduction (early 2026)
$720 million
Expected reduction in previously reported net losses for the quarter ended March 31, 2026 and six months ended June 30, 2026
Affected metrics (unchanged)
6 metrics
Cash balances, revenues, capital expenditures, cash flows, EBITDA, and loss before income taxes remain unchanged by the restatement
Affected fiscal year
2025
Audited consolidated financial statements for the year ended December 31, 2025 determined to be unreliable and to be restated
Material weakness
1 reported area
Expected material weakness in internal control over financial reporting related to accounting for income taxes
Key Terms
deferred tax benefits, deferred tax liability, indefinite-lived cable franchise rights, material weakness in internal control over financial reporting, +1 more
5 terms
deferred tax benefits financial
"failed to recognize non-cash deferred tax benefits associated with two previous non-cash impairment charges"
deferred tax liability financial
"understatements of deferred tax benefits and overstatements of a related deferred tax liability"
An accounting entry showing taxes a company will owe in the future because its financial reporting and tax rules record income or expenses at different times. Think of it like a bill the company has postponed: it can make current profits look higher but means cash taxes may be higher later. Investors watch it to understand true earnings quality and potential future cash outflows that could affect returns.
indefinite-lived cable franchise rights financial
"two previous non-cash impairment charges of its indefinite-lived cable franchise rights"
Indefinite-lived cable franchise rights are long-term permissions granted by governments or municipalities that let a cable operator use public streets and infrastructure to provide television, internet or related services, without a set expiration date. Investors care because these rights are treated as permanent assets on a company’s balance sheet, like owning a durable lease, affecting valuations and the risk of future charges if regulators change rules or a court finds the rights impaired.
material weakness in internal control over financial reporting regulatory
"expects to report in its amended filings that a material weakness in its internal control over financial reporting"
non-reliance on previously issued financial statements regulatory
"concluded that certain previously issued consolidated financial statements ... should no longer be relied upon"
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What did Optimum Communications, Inc. (OPTU) announce in this 8-K?
OPTU reported that its Audit Committee concluded certain 2025 and 2026 financial statements should no longer be relied upon because of errors in deferred tax benefits and related deferred tax liabilities, and it plans to file restated financial statements for those periods.
Which OPTU financial periods will be restated according to this filing?
The company intends to restate audited financial statements for the year ended December 31, 2025 and unaudited statements for periods ended September 30, 2025, March 31, 2026, and June 30, 2026, including corresponding statements for subsidiary CSC Holdings, LLC.
How will the restatement affect OPTU’s reported net losses?
The restatements are expected to reduce previously reported net losses by about $430 million for the three- and nine-month periods ended September 30, 2025 and full-year 2025, and by about $720 million for the quarter ended March 31, 2026 and six months ended June 30, 2026.
Will the OPTU restatement change cash or operating performance metrics?
The company states the restatement will not affect previously reported cash balances, revenues, capital expenditures, cash flows, EBITDA or loss before income taxes, because the errors relate to non-cash deferred tax benefits and a related deferred tax liability.
What internal control issues did OPTU disclose in connection with the restatement?
Management is assessing internal control impacts and expects to report that a material weakness in internal control over financial reporting related to accounting for income taxes existed during the affected periods; prior internal control reports and the auditor’s opinion for 2025 should no longer be relied upon.
Which auditor is involved in OPTU’s restatement discussion?
The Audit Committee and management discussed the matters with KPMG LLP, the company’s independent registered public accounting firm, including the need for restated financial statements and the internal control implications.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
September 21, 2026 (September 16, 2026 )
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(516 ) 803-2300
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
The information appearing below under Item 4.02 regarding certain previously reported financial information of Optimum Communications, Inc. (the "Company") for the fiscal year ended December 31, 2025, and the fiscal quarters and year-to-date periods ended September 30, 2025, March 31, 2026, and June 30, 2026, is incorporated herein by reference.
The information appearing below under Item 4.02(a) refers to certain financial statements that the Company intends to restate. The Company identified that it inadvertently failed to recognize non-cash deferred tax benefits associated with two previous non-cash impairment charges of its indefinite-lived cable franchise rights during the periods described above. The restatement will not affect the Company's previously reported cash balances, revenues, capital expenditures, cash flows, EBITDA or loss before income taxes.
Item 4.02(a). Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review
On September 16, 2026, the Audit Committee of the Board of Directors (the “Audit Committee”) of the Company, in consultation with management, concluded that certain previously issued consolidated financial statements of the Company (and related earnings releases, shareholder communications, investor presentations or other materials describing relevant portions of such financial statements) should no longer be relied upon because of errors in such financial statements related to understatements of deferred tax benefits and overstatements of a related deferred tax liability.
The audited consolidated financial statements as of and for the fiscal year ended December 31, 2025, contained within the Annual Report on Form 10-K for such year (and the associated audit report of the Company’s independent registered public accounting firm) and the unaudited consolidated financial statements contained within the Quarterly Reports on Form 10-Q for the interim periods ended September 30, 2025, March 31, 2026, and June 30, 2026, were impacted by these errors.
Accordingly, the Company intends to restate these financial statements by amending its Annual Report on Form 10-K for the year ended December 31, 2025, along with the applicable quarterly reports on Form 10-Q (the “Restated Filings”), as soon as reasonably practicable. Additionally, because the errors also impact the consolidated financial statements of the Company’s wholly-owned subsidiary, CSC Holdings, LLC, the Company intends to restate those consolidated financial statements for the corresponding periods.
Subsequent to the issuance of the Company’s consolidated financial statements as of and for the three and six months ended June 30, 2026, the Company identified that it inadvertently failed to recognize non-cash deferred tax benefits associated with two previous non-cash impairment charges of its indefinite-lived cable franchise rights during the periods described above. Such errors resulted in understatements of deferred income tax benefits and overstatements of the related deferred tax liability, which accordingly also impacted total liabilities, accumulated deficit, total stockholders’ deficiency and net loss. This identification of errors is preliminary, unaudited and may be subject to change (including the potential identification of additional errors) as we complete our procedures and prepare the Restated Filings.
The Audit Committee, along with management, discussed with KPMG LLP, the Company’s independent registered public accounting firm, the matters disclosed in this filing pursuant to this Item 4.02(a).
Summary of Impacts
The restatements are expected to reduce our previously reported net losses by correcting understatements of deferred tax benefits and overstatements of a related deferred tax liability of (i) approximately $430 million for the three and nine-month periods ended September 30, 2025, and for the year ended December 31, 2025, and (ii) approximately $720 million for the quarter ended March 31, 2026, and the six-month period ended June 30, 2026. These restatements will have corresponding impacts to total liabilities, accumulated deficit, and total stockholders’ deficiency; however, will not affect the Company's previously reported cash balances, revenues, capital expenditures, cash flows, EBITDA or loss before income taxes.
Controls and Procedures
Management is assessing the effect of the restatements on the Company’s internal control over financial reporting and disclosure controls and procedures and expects to report in its amended filings that a material weakness in its internal control over financial reporting related to accounting for income taxes existed during the affected periods. Accordingly, the Audit Committee concluded that management’s report on internal control over financial reporting as of December 31, 2025, and KPMG LLP’s opinion on the effectiveness of the Company’s internal control over financial reporting as of December 31, 2025, should no longer be relied upon.
Cautionary Statement Regarding Forward-Looking Statements
This current report contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those expressed or implied by these statements. You can generally identify forward-looking statements by the words “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “might,” “objective,” “outlook,” “plan,” “potential,” “predict,” “projection,” “seek,” “should,” “target,” “trend,” “will,” “would” or the negative version of these words or other comparable words. These forward-looking statements include, among others, the anticipated timing of the filing of the Restated Filings; the financial statements to be restated and the filings in which such restated financial statements will appear; and the Company's expectation that it will report a material weakness in its internal control over financial reporting. Such forward-looking statements are subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors include, but are not limited to, the risk that the Company might not be able to complete the restatement and Restated Filings as currently planned or within the time periods currently anticipated, the risk that additional information may become known prior to the expected filing with the SEC of the Restated Filings or that other subsequent events may occur that would require the Company to make additional adjustments to its financial statements, which could be material, or delay the filing of the corrected or future periodic reports with the SEC, risks related to the timing and results of the Company’s review of the effectiveness of internal control over financial reporting and related disclosure controls and procedures, remediation of the control deficiencies identified and our ability to implement and maintain effective internal control over financial reporting in the future, which may adversely affect the accuracy and timeliness of our financial reporting, identification of errors in our financial reporting in the future that require us to restate previously issued financial statements, which may subject us to unanticipated costs or regulatory penalties and could cause investors to lose confidence in the accuracy and completeness of our financial statements, the factors described under “Risk Factors” in the Company’s annual report on Form 10-K for the period ended December 31, 2025 and the Company’s other filings with the SEC, uncertainties, assumptions and changes in circumstances that may cause the Company’s actual results, performance or achievements to differ materially from those expressed or implied in any forward-looking statement. Each forward-looking statement contained herein speaks only as of the date of this current report, and the Company undertakes no obligation to update or revise any forward-looking statements whether as a result of new information, future developments or otherwise, except as required by law.
Item 9.01 Financial Statement and Exhibits
(d) | Exhibits. | ||||||||||
Exhibit | Description | ||||||||||
104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. | ||||||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| OPTIMUM COMMUNICATIONS, INC. | |||||||||||
| Dated: September 21, 2026 | By: | /s/ Michael E. Olsen | |||||||||
| Michael E. Olsen | |||||||||||
| General Counsel & Chief Corporate Responsibility Officer | |||||||||||