Optimum Communications (OPTU) risk factors, FY2025 10-K

Other

1. 01In addition, certain of our competitors own directly or are affiliated with companies that own programming content or have exclusive arrangements with content providers that may enable them to obtain lower programming costs or offer exclusive programming that may be attractive to prospective customers37% rewritten
2. 02We face significant risks as a result of rapid changes in technology, consumer expectations and behavior51% rewritten
3. 03programming costs, which could result in reduced operating margins relative to our competitors with a larger customer baseNew
4. 04We may not be able to successfully implement our growth strategy
5. 05The financial markets are subject to volatility and disruptions, which have in the past, and may in the future, adversely affect our business, including by affecting the cost of new capital and our ability to fund acquisitions or other strategic transactions83% rewritten
6. 06Persistent disruptions in the capital markets as well as the broader global financial market could increase our interest expense, adversely affecting our business, financial position, results of operations, and liquidity86% rewritten
7. 07We have in past periods incurred substantial losses from operations, and we may do so in the future, which may reduce our ability to raise needed capital
8. 08A 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 capital38% rewritten
9. 09Our subsidiaries' ability to meet obligations under their indebtedness may be restricted by limitations on our other subsidiaries' ability to send funds
10. 10We are subject to significant restrictive covenants under the agreements governing our indebtedness68% rewritten
11. 11Changes or uncertainty in respect of interest rate benchmarks may affect our sources of funding28% rewritten
12. 12Changes to trade policy, to the extent applicable to equipment we or our customers use, could adversely affect our business and results of operations
13. 13Our network, infrastructure, and facilities are critical to our operating activities
14. 14In the conduct of our business, we rely on systems, networks and infrastructure to provide our services to our customers. Additionally, the nature of our business involves the receipt and storage of information about our customers and employees
15. 15Issues 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
16. 16A significant amount of our book value consists of intangible assets that may not generate cash in the event of a voluntary or involuntary sale24% rewritten
17. 17We 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
18. 18Significant unanticipated increases in the use of bandwidth-intensive Internet-based services could increase our costs
19. 19Our business depends on intellectual property rights and on not infringing on the intellectual property rights of others
20. 20We may be liable for the material that content providers distribute over our networks
21. 21If we are unable to retain and hire new key employees, our ability to manage our business could be adversely affected
22. 22Impairment 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 USA30% rewritten
23. 23Macroeconomic developments may adversely affect our business
24. 24Online 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
25. 25Our business is subject to extensive governmental legislation and regulation, which could adversely affect our business, increase our operational and administrative expenses and limit our revenues
26. 26Our 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
27. 27Our cable system franchises are non-exclusive. Accordingly, local and state franchising authorities can grant additional franchises and create competition in market areas where none existed previously, resulting in overbuilds, which could adversely affect our results of operations
28. 28Local franchising authorities have the ability to impose additional regulatory constraints on our business, which could reduce our revenues or increase our expenses
29. 29Further regulation of the cable industry could restrict our marketing options or impair our ability to raise rates to cover our increasing costs
30. 30We 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
31. 31Changes in channel carriage regulations could impose significant additional costs on us30% rewritten
32. 32Increasing regulation of our Internet-based products and services could adversely affect our ability to provide new products and services26% rewritten
33. 33Offering telephone services may subject us to additional regulatory burdens, causing us to incur additional costs
34. 34Our mobile service exposes us to regulatory risk
35. 35We may be materially adversely affected by regulatory, legal, and economic changes relating to our physical plant
36. 36We 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 run out
37. 37Risk Factors Relating to Ownership of Our Class A Common Stock and Class B Common Stock
38. 38Our 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
39. 39Because we have no current plans to pay cash dividends on our Class A common stock or Class B common stock for the foreseeable future, our stockholders may not receive any return on investment unless they sell their Class A common stock or Class B common stock
40. 40Future 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 decline25% rewritten
41. 41Any shares held by our affiliates, as that term is defined under Rule 144 ("Rule 144") of the Securities Act of 1933, as amended (the "Securities Act"), including Next Alt and its affiliates, may be sold only in compliance with certain limitations
42. 42In 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
43. 43Each share of Class B common stock is entitled to twenty-five votes per share and each share of Class A common stock is entitled to one vote per share. If we issue any shares of Class C common stock, they will be non-voting
44. 44Next Alt controls us and its interests may conflict with ours or our stockholders in the future
45. 45Anti-takeover provisions in our organizational documents could delay or prevent a change of control transaction
46. 46Holders 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
47. 47We are a "controlled company" within the meaning of the rules of the NYSE. As a result, we qualify for, and rely on, exemptions from certain corporate governance requirements that would otherwise provide protection to stockholders of other companies
48. 48If 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
49. 49We have been subject to securities class action litigation in the past and could be subject to securities class action litigation in the future