Cable One — Second Quarter 2026 Earnings Summary

Financial Performance

• Total revenues were $348.9 million in the second quarter of 2026, a decrease of 8.4% year-over-year from $381.1 million in the second quarter of 2025.
• Net loss was $1.16 billion for the quarter, compared to a net loss of $438.0 million in the prior year period.
• Net profit margin was (333.8)% in the second quarter of 2026, compared to (114.9)% in the second quarter of 2025.
• Adjusted EBITDA was $173.5 million, a decrease of 14.6% year-over-year from $203.2 million.
• Adjusted EBITDA margin was 49.7% in the second quarter of 2026, down from 53.3% in the prior year quarter.
• Net cash provided by operating activities was $120.9 million, a 16.6% decrease from $144.9 million in the second quarter of 2025.
• Adjusted EBITDA less capital expenditures was $99.5 million, a 26.2% decrease from $134.8 million in the prior year quarter.
• Capital expenditures totaled $74.0 million, an 8.2% increase from $68.4 million in the second quarter of 2025.
• Gross debt balance was $3.06 billion as of June 30, 2026, down from $3.21 billion as of December 31, 2025.
• Cash and cash equivalents were $166.2 million as of June 30, 2026, compared to $152.8 million at December 31, 2025.
• The weighted average cost of debt was 4.6% for the second quarter of 2026.

Business Segments and Product Lines

• Residential data revenues were $212.6 million, a 7.3% decrease year-over-year, driven primarily by a decrease in residential data subscribers.
• Residential video revenues were $38.5 million, a 20.1% decrease year-over-year, attributed to a decline in residential video subscribers.
• Business data revenues were $53.6 million, a 6.6% decrease year-over-year, primarily due to a decrease in business data subscribers.
• Total residential customers decreased 7.2% to 887.4 thousand from 955.8 thousand in the prior year.
• Business customers increased 1.2% to 105.9 thousand from 104.7 thousand in the prior year.
• Total customers decreased 6.3% to 993.3 thousand from 1,060.5 thousand in the prior year.
• Data PSUs (residential and business combined) decreased 6.1% to 968.2 thousand from 1,031.3 thousand in the prior year.
• Video PSUs decreased 24.2% to 77.6 thousand from 102.3 thousand in the prior year.
• Voice PSUs decreased 12.1% to 87.4 thousand from 99.4 thousand in the prior year.
• Residential data ARPU was $80.56, a 0.8% decrease from $81.23 in the prior year.
• Residential video ARPU was $169.33, a 4.2% increase from $162.52 in the prior year.
• Residential voice ARPU was $40.05, a 13.1% increase from $35.41 in the prior year.
• Business services ARPU was $212.75, a 9.4% decrease from $234.93 in the prior year.

Risks and Challenges

• The company recognized $597.7 million in non-cash asset impairment charges, consisting of $526.0 million for indefinite-lived franchise agreements and $71.7 million for goodwill, triggered by a decline in the company's stock price.
• The second quarter included a $262.3 million non-cash impairment of the Mega Broadband Investments Holdings LLC ("MBI") equity investment and a $333.0 million non-cash fair value adjustment loss on the put option associated with remaining equity interests in MBI.
• Total equity method investment loss was $283.9 million, compared to a loss of $21.0 million in the prior year.
• Other income (expense), net was a loss of $431.6 million, compared to a loss of $11.4 million in the prior year.
• The company faces risks related to rising competition, technology changes, regulatory changes, and the ability to renew cable system franchises.
• Risks include the potential for increased programming costs, retransmission fees, and pole attachment costs.
• The company faces risks regarding the exercise of the Put Option and the acquisition and integration of MBI.
• Risks include the impact of security breaches, cyber-attacks, and the integrity of network and information systems.
• The company's ability to grow residential data and business data revenues and customer base is a key risk factor.
• Risks include the potential adverse effect of the company's level of indebtedness and the possibility of rising interest rates.

Management Commentary and Tone

• Jim Holanda, Chief Executive Officer, stated the company has a strong network, attractive markets, meaningful cash flow generation, and significant potential to improve operating performance.
• Management believes the company's strengths combined with current penetration levels provide a compelling opportunity for long-term growth and value creation.

Other Key Points

• The company paid down an aggregate $62.8 million in debt during the second quarter, consisting of $45.6 million in repurchases of senior notes, $12.8 million in term loan prepayments, and $4.4 million in scheduled amortization payments.
• The company recognized $19.9 million in gains on debt extinguishments during the quarter.
• The company voluntarily repurchased $45.6 million aggregate principal amount of outstanding senior notes and prepaid $12.8 million of outstanding term loan borrowings.
• In March 2026, the company sold certain fiber-to-the-tower contract rights for cash proceeds of $42.0 million.
• 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.
• Deferred revenue decreased to $17.2 million as of June 30, 2026, from $22.7 million as of December 31, 2025.
• The company recorded $2.96 million in severance and contract termination costs and $2.10 million in MBI integration costs for the quarter.
• The company recognized $190,000 in executive search and transition costs.
• The company has approximately 1 million residential and business customers across 24 states.
• The company operates under the Sparklight® brand.