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PHOENIX--(BUSINESS WIRE)--Cable One, Inc. (NYSE: CABO) (the “Company” or “Cable One”) today reported financial and operating results for the quarter ended June 30, 2026.
|
| Three Months Ended June 30, |
|
|
|
| |||||||||
(dollars in thousands) |
| 2026 |
| 2025 |
| $ Change |
| % Change | |||||||
Revenues |
| $ | 348,926 |
|
| $ | 381,072 |
|
| $ | (32,146 | ) |
| (8.4 | )% |
Net loss |
| $ | (1,164,576 | ) |
| $ | (437,976 | ) |
| $ | (726,600 | ) |
| 165.9 | % |
Net profit margin |
|
| (333.8 | )% |
|
| (114.9 | )% |
|
|
|
| |||
Cash flows from operating activities |
| $ | 120,857 |
|
| $ | 144,942 |
|
| $ | (24,085 | ) |
| (16.6 | )% |
Adjusted EBITDA(1) |
| $ | 173,460 |
|
| $ | 203,214 |
|
| $ | (29,754 | ) |
| (14.6 | )% |
Adjusted EBITDA margin(1) |
|
| 49.7 | % |
|
| 53.3 | % |
|
|
|
| |||
Capital expenditures |
| $ | 74,002 |
|
| $ | 68,374 |
|
| $ | 5,628 |
|
| 8.2 | % |
Adjusted EBITDA less capital expenditures(1) |
| $ | 99,458 |
|
| $ | 134,840 |
|
| $ | (35,382 | ) |
| (26.2 | )% |
“This is a business with a strong network, attractive markets, meaningful cash flow generation and a significant potential to improve operating performance,” said Jim Holanda, Chief Executive Officer of Cable One. “Combined with our current penetration levels, we believe those strengths provide a compelling opportunity for long-term growth and value creation.”
Second Quarter 2026 Summary:
__________________ | ||
| (1) | Adjusted EBITDA, Adjusted EBITDA margin and Adjusted EBITDA less capital expenditures are defined in the section of this press release entitled “Use of Non-GAAP Financial Measures.” Adjusted EBITDA and Adjusted EBITDA less capital expenditures are reconciled to net income (loss), Adjusted EBITDA margin is reconciled to net profit margin and Adjusted EBITDA less capital expenditures is also reconciled to net cash provided by operating activities. Refer to the “Reconciliations of Non-GAAP Measures” tables within this press release. | |
Second Quarter 2026 Financial Results Compared to Second Quarter 2025
Revenues were $348.9 million in the second quarter of 2026 compared to $381.1 million in the second quarter of 2025. Residential data revenues decreased $16.7 million, or 7.3%, year-over-year due primarily to a decrease in residential data subscribers. Residential video revenues decreased $9.7 million, or 20.1%, year-over-year due primarily to a decrease in residential video subscribers, partially offset by a rate adjustment enacted in the second half of 2025. Business data revenues decreased $3.8 million, or 6.6%, year-over-year due primarily to a decrease in business data subscribers.
Net losses were $1.16 billion and $438.0 million in the second quarter of 2026 and 2025, respectively. The second quarter of 2026 included $462.3 million, net of tax, non-cash asset impairment charges, a $262.3 million, net of tax, non-cash impairment of our MBI equity investment and a $333.0 million, net of tax, non-cash fair value adjustment loss on the Put Option. The second quarter of 2025 included non-cash impairment charges totaling $456.2 million, net of tax. Net profit margin was (333.8)% in the second quarter of 2026 compared to (114.9)% in the prior year quarter.
Adjusted EBITDA was $173.5 million and $203.2 million for the second quarter of 2026 and 2025, respectively. Adjusted EBITDA margin was 49.7% in the second quarter of 2026 compared to 53.3% in the prior year quarter.
Net cash provided by operating activities was $120.9 million in the second quarter of 2026 compared to $144.9 million in the second quarter of 2025. Capital expenditures for the second quarter of 2026 totaled $74.0 million compared to $68.4 million for the second quarter of 2025. Adjusted EBITDA less capital expenditures for the second quarter of 2026 was $99.5 million compared to $134.8 million in the prior year quarter.
Asset Impairments
Triggered by a decline in the Company's stock price during the second quarter, the Company performed an interim intangible asset and goodwill impairment assessment as of June 30, 2026. As a result, the Company recognized asset impairments totaling $597.7 million, consisting of $526.0 million and $71.7 million of non-cash impairments relating to its indefinite-lived franchise agreements and goodwill, respectively. The impairment charges do not have an impact on the Company’s cash flows, operational strategy, growth initiatives or its intent or ability to renew or extend existing franchise agreements.
Liquidity and Capital Resources
At June 30, 2026, the Company had $166.2 million of cash and cash equivalents on hand compared to $152.8 million at December 31, 2025. The Company’s gross debt balance was $3.06 billion and $3.21 billion at June 30, 2026 and December 31, 2025, respectively. The Company had $550.0 million of borrowings and $700.0 million available for borrowing under its revolving credit facility as of June 30, 2026. The Company's weighted average cost of debt was 4.6% for the second quarter of 2026.
The Company voluntarily repurchased $45.6 million aggregate principal amount of outstanding senior notes and prepaid $12.8 million aggregate principal amount of outstanding term loan borrowings during the second quarter of 2026, recognizing $19.9 million of gains on debt extinguishments.
The Company's capital expenditures by category for the three months ended June 30, 2026 and 2025 were as follows (in thousands):
|
| Three Months Ended June 30, | ||||
|
| 2026 |
| 2025 | ||
Customer premise equipment(1) |
| $ | 20,210 |
| $ | 11,104 |
Commercial(2) |
|
| 3,463 |
|
| 5,499 |
Scalable infrastructure(3) |
|
| 7,110 |
|
| 7,211 |
Line extensions(4) |
|
| 13,447 |
|
| 17,366 |
Upgrade/rebuild(5) |
|
| 5,449 |
|
| 4,261 |
Support capital(6) |
|
| 24,323 |
|
| 22,933 |
Total |
| $ | 74,002 |
| $ | 68,374 |
__________________ | ||
| (1) | Customer premise equipment includes costs incurred at customer locations, including installation costs and customer premise equipment (e.g., modems and set-top boxes). | |
| (2) | Commercial includes costs related to securing business services customers and primary service units ("PSUs"), including small and medium-sized businesses and enterprise customers. | |
| (3) | Scalable infrastructure includes costs not related to customer premise equipment to secure growth of new customers and PSUs or provide service enhancements (e.g., headend equipment). | |
| (4) | Line extensions include network costs associated with entering new service areas (e.g., fiber/coaxial cable, amplifiers, electronic equipment, make-ready and design engineering). | |
| (5) | Upgrade/rebuild includes costs to modify or replace existing fiber/coaxial cable networks, including betterments. | |
| (6) | Support capital includes costs associated with the replacement or enhancement of non-network assets due to technological and physical obsolescence (e.g., non-network equipment, land, buildings and vehicles) and capitalized internal labor costs not associated with customer installation activities. | |
Conference Call
Cable One will host a conference call with the financial community to discuss results for the second quarter of 2026 on Thursday, August 6, 2026, at 5 p.m. Eastern Time (ET).
The conference call will be available via an audio webcast on the Cable One Investor Relations website at ir.cableone.net or by dialing 1-833-461-5787 (International: 1-585-542-9983) and using the access code 240349689. Participants should register for the webcast or dial in for the conference call shortly before 5 p.m. ET.
A replay of the call will be available from August 6, 2026 until September 3, 2026 at ir.cableone.net.
Additional Information Available on Website
The information in this press release should be read in conjunction with the condensed consolidated financial statements and notes thereto contained in the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2026, which will be posted on the “SEC Filings” section of the Cable One Investor Relations website at ir.cableone.net when it is filed with the Securities and Exchange Commission (the “SEC”). Investors and others interested in more information about Cable One should consult the Company’s website, which is regularly updated with financial and other important information about the Company.
Use of Non-GAAP Financial Measures
The Company uses certain measures that are not defined by generally accepted accounting principles in the United States (“GAAP”) to evaluate various aspects of its business. Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA less capital expenditures and capital expenditures as a percentage of Adjusted EBITDA are non-GAAP financial measures and should be considered in addition to, not as superior to, or as a substitute for, net income (loss), net profit margin, net cash provided by operating activities or capital expenditures as a percentage of net income (loss) reported in accordance with GAAP. Adjusted EBITDA and Adjusted EBITDA less capital expenditures are reconciled to net income (loss), Adjusted EBITDA margin is reconciled to net profit margin and capital expenditures as a percentage of Adjusted EBITDA is reconciled to capital expenditures as a percentage of net income (loss). Adjusted EBITDA less capital expenditures is also reconciled to net cash provided by operating activities. These reconciliations are included in the “Reconciliations of Non-GAAP Measures” tables within this press release.
“Adjusted EBITDA” is defined as net income (loss) plus net interest expense, income tax provision (benefit), depreciation and amortization, equity-based compensation, severance and contract termination costs, acquisition-related costs, net (gain) loss on asset sales and disposals, system conversion costs, net equity method investment (income) loss, asset impairments, executive search and transition costs, MBI integration costs, net other (income) expense and any special items, as applicable, as provided in the “Reconciliations of Non-GAAP Measures” tables within this press release. Executive search and transition costs consist of expenses incurred in connection with changes in executive leadership, including make-whole payment, severance and other separation benefits and costs related to executive search and onboarding. MBI integration costs consist of expenses for planning and implementing system conversion, rebranding, employee-related costs (including severance and retention) and other professional fees incurred in connection with the integration of MBI. These costs are associated with discrete events and are incremental to normal, recurring operating expenses and as such, are excluded from Adjusted EBITDA. Adjusted EBITDA eliminates the significant non-cash depreciation and amortization expense that results from the capital-intensive nature of the Company’s business as well as other non-cash or special items and is unaffected by the Company’s capital structure or investment activities. This measure is limited in that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues and the Company’s cash cost of debt financing. These costs are evaluated through other financial measures.
“Adjusted EBITDA margin” is defined as Adjusted EBITDA divided by total revenues.
“Adjusted EBITDA less capital expenditures,” when used as a liquidity measure, is calculated as net cash provided by operating activities excluding the impact of capital expenditures, net interest expense, income tax provision (benefit), changes in operating assets and liabilities, change in deferred income taxes and any special items, as applicable, as provided in the “Reconciliations of Non-GAAP Measures” tables within this press release.
“Capital expenditures as a percentage of Adjusted EBITDA” is defined as capital expenditures divided by Adjusted EBITDA.
The Company uses Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA less capital expenditures and capital expenditures as a percentage of Adjusted EBITDA to assess its performance, and it also uses Adjusted EBITDA less capital expenditures as an indicator of its ability to fund operations and make additional investments with internally generated funds. In addition, Adjusted EBITDA generally correlates to the measure used in the leverage ratio calculations under the Company’s credit agreement and the indenture governing the Company’s non-convertible senior unsecured notes to determine compliance with the covenants contained in the credit agreement and the ability to take certain actions under the indenture governing the non-convertible senior unsecured notes. Adjusted EBITDA, capital expenditures as a percentage of Adjusted EBITDA and Adjusted EBITDA less capital expenditures are also significant performance measures that have been used by the Company in its incentive compensation programs. Adjusted EBITDA does not take into account cash used for mandatory debt service requirements or other non-discretionary expenditures, and thus does not represent residual funds available for discretionary uses.
The Company believes that Adjusted EBITDA, Adjusted EBITDA margin and capital expenditures as a percentage of Adjusted EBITDA are useful to investors in evaluating the operating performance of the Company. The Company believes that Adjusted EBITDA less capital expenditures is useful to investors as it shows the Company’s performance while taking into account cash outflows for capital expenditures and is one of several indicators of the Company’s ability to service debt, make investments and/or return capital to its stockholders.
Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA less capital expenditures, capital expenditures as a percentage of Adjusted EBITDA and similar measures with similar titles are common measures used by investors, analysts and peers to compare performance in the Company’s industry, although the Company’s measures of Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA less capital expenditures and capital expenditures as a percentage of Adjusted EBITDA may not be directly comparable to similarly titled measures reported by other companies.
About Cable One
Cable One, Inc. (NYSE:CABO) is a leading broadband communications provider delivering exceptional service and enabling approximately 1 million residential and business customers across 24 states to thrive and stay connected to what matters most. Through Sparklight®, the brand our customers know and trust, we're not just shaping the future of connectivity–we're transforming it with a commitment to innovation, reliability and customer experience at our core.
Our robust infrastructure and cutting-edge technology don’t just keep our customers connected; they drive progress in education, business and everyday life. We’re dedicated to bridging the digital divide, empowering our communities and fostering a more connected world. When our customers choose Cable One, they are choosing a team that is always working for them–one that believes in the relentless pursuit of reliability, because being a trusted neighbor isn’t just what we do–it’s who we are.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This communication and the related conference call may contain “forward-looking statements” that involve risks and uncertainties. These statements can be identified by the fact that they do not relate strictly to historical or current facts, but rather are based on current expectations, estimates, assumptions and projections about the Company’s industry, business, strategy, technologies, acquisitions and strategic investments, market expansion plans, dividend policy, capital allocation, financing strategy, the purchase price payable pursuant to the Put Option, which was exercised on January 2, 2026 (such purchase price, the “Put Price”) and the anticipated timeline to consummate such transaction, the Company's ability and sources of capital to fund the Put Price, MBI’s future indebtedness and the Company's financial results and financial condition. Forward-looking statements often include words such as “will,” “should,” “anticipates,” “estimates,” “expects,” “projects,” “intends,” “plans,” “believes” and words and terms of similar substance in connection with discussions of future operating or financial performance. As with any projection or forecast, forward-looking statements are inherently susceptible to uncertainty and changes in circumstances. The Company’s actual results may vary materially from those expressed or implied in its forward-looking statements. Accordingly, undue reliance should not be placed on any forward-looking statement made by the Company or on its behalf. Important factors that could cause the Company’s actual results to differ materially from those in its forward-looking statements include government regulation, economic, strategic, political and social conditions and the following factors, which are discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 as filed with the SEC on February 26, 2026 (the "2025 Form 10-K"):
Any forward-looking statements made by the Company in this communication speak only as of the date on which they are made. The Company is under no obligation, and expressly disclaims any obligation, except as required by law, to update or alter its forward-looking statements, whether as a result of new information, subsequent events or otherwise.
CABLE ONE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) | |||||||||||||||
|
| Three Months Ended June 30, |
|
|
|
| |||||||||
(dollars in thousands, except per share data) |
| 2026 |
| 2025 |
| Change |
| % Change | |||||||
Revenues: |
|
|
|
|
|
|
|
| |||||||
Residential data |
| $ | 212,604 |
|
| $ | 229,336 |
|
| $ | (16,732 | ) |
| (7.3 | )% |
Residential video |
|
| 38,487 |
|
|
| 48,158 |
|
|
| (9,671 | ) |
| (20.1 | )% |
Residential voice |
|
| 6,266 |
|
|
| 6,733 |
|
|
| (467 | ) |
| (6.9 | )% |
Business data |
|
| 53,597 |
|
|
| 57,385 |
|
|
| (3,788 | ) |
| (6.6 | )% |
Business other |
|
| 14,199 |
|
|
| 16,515 |
|
|
| (2,316 | ) |
| (14.0 | )% |
Other |
|
| 23,773 |
|
|
| 22,945 |
|
|
| 828 |
|
| 3.6 | % |
Total Revenues |
|
| 348,926 |
|
|
| 381,072 |
|
|
| (32,146 | ) |
| (8.4 | )% |
Costs and Expenses: |
|
|
|
|
|
|
|
| |||||||
Operating (excluding depreciation and amortization) |
|
| 98,725 |
|
|
| 102,356 |
|
|
| (3,631 | ) |
| (3.5 | )% |
Selling, general and administrative |
|
| 87,649 |
|
|
| 91,996 |
|
|
| (4,347 | ) |
| (4.7 | )% |
Depreciation and amortization |
|
| 81,781 |
|
|
| 86,118 |
|
|
| (4,337 | ) |
| (5.0 | )% |
(Gain) loss on asset sales and disposals, net |
|
| 7,973 |
|
|
| 3,908 |
|
|
| 4,065 |
|
| 104.0 | % |
Asset impairments |
|
| 597,715 |
|
|
| 586,017 |
|
|
| 11,698 |
|
| 2.0 | % |
Total Costs and Expenses |
|
| 873,843 |
|
|
| 870,395 |
|
|
| 3,448 |
|
| 0.4 | % |
Loss from operations |
|
| (524,917 | ) |
|
| (489,323 | ) |
|
| (35,594 | ) |
| 7.3 | % |
Interest expense, net |
|
| (33,737 | ) |
|
| (33,905 | ) |
|
| 168 |
|
| (0.5 | )% |
Other income (expense), net |
|
| (431,590 | ) |
|
| (11,372 | ) |
|
| (420,218 | ) |
| NM |
|
Loss before income taxes and equity method investment income (loss), net |
|
| (990,244 | ) |
|
| (534,600 | ) |
|
| (455,644 | ) |
| 85.2 | % |
Income tax benefit |
|
| 109,521 |
|
|
| 117,575 |
|
|
| (8,054 | ) |
| (6.9 | )% |
Loss before equity method investment income (loss), net |
|
| (880,723 | ) |
|
| (417,025 | ) |
|
| (463,698 | ) |
| 111.2 | % |
Equity method investment income (loss), net |
|
| (283,853 | ) |
|
| (20,951 | ) |
|
| (262,902 | ) |
| NM |
|
Net loss |
| $ | (1,164,576 | ) |
| $ | (437,976 | ) |
| $ | (726,600 | ) |
| 165.9 | % |
|
|
|
|
|
|
|
|
| |||||||
Net Loss per Common Share: |
|
|
|
|
|
|
|
| |||||||
Basic |
| $ | (204.35 | ) |
| $ | (77.70 | ) |
| $ | (126.65 | ) |
| 163.0 | % |
Diluted |
| $ | (204.35 | ) |
| $ | (77.70 | ) |
| $ | (126.65 | ) |
| 163.0 | % |
Weighted Average Common Shares Outstanding: |
|
|
|
|
|
|
|
| |||||||
Basic |
|
| 5,698,814 |
|
|
| 5,636,683 |
|
|
| 62,131 |
|
| 1.1 | % |
Diluted |
|
| 5,698,814 |
|
|
| 5,636,683 |
|
|
| 62,131 |
|
| 1.1 | % |
|
|
|
|
|
|
|
|
| |||||||
Unrealized gain (loss) on cash flow hedges and other, net of tax |
|
| 6,439 |
|
|
| (10,108 | ) |
|
| 16,547 |
|
| (163.7 | )% |
Comprehensive loss |
| $ | (1,158,137 | ) |
| $ | (448,084 | ) |
| $ | (710,053 | ) |
| 158.5 | % |
Trish Niemann
Vice President, Communications Strategy
602-364-6372
patricia.niemann@cableone.biz
Todd Koetje
Chief Financial Officer
investor_relations@cableone.biz
| 1 hour | |
| Aug-05 | |
| Jul-23 | |
| Jun-22 | |
| Jun-05 | |
| Jun-04 | |
| May-01 | |
| May-01 | |
| May-01 | |
| Apr-30 | |
| Apr-30 | |
| Apr-30 | |
| Apr-16 | |
| Apr-13 | |
| Mar-10 |
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