Nov 5, 2026, 4:18 PM ETCommunication Services

Cable One — Third Quarter 2026 Earnings Summary

CABOCABLE ONE INC

Financial Performance

Total revenues were $332.2 million for the quarter ended September 30, 2026, a decrease of 11.7% from $376.0 million in the prior year period.
Net loss was $431.8 million compared to net income of $86.5 million in the prior year quarter.
Net profit margin was (130.0)% compared to 23.0% in the prior year quarter.
Adjusted EBITDA was $159.8 million, a decrease of 20.8% from $201.9 million in the prior year quarter.
Adjusted EBITDA margin was 48.1%, down from 53.7% in the prior year quarter.
Net cash provided by operating activities was $92.6 million, a decrease of 40.8% from $156.5 million in the prior year quarter.
Capital expenditures totaled $77.9 million, an increase of 8.6% from $71.8 million in the prior year quarter.
Adjusted EBITDA less capital expenditures was $81.9 million, a decrease of 37.1% from $130.1 million in the prior year quarter.
The quarter included $412.1 million in non-cash asset impairment charges, consisting of $159.0 million for indefinite-lived franchise agreements and $253.1 million for goodwill.
The quarter also included a $39.7 million non-cash fair value adjustment loss on the put option to acquire MBI and a $20.0 million non-cash impairment of the MBI equity investment.

Management expressed confidence in the long-term opportunity, citing meaningful progress in customer trends, best residential data subscriber results in seven quarters, and highest connect activity in three years.
The Company believes existing cash balances, senior credit facilities, and operating cash flows will provide adequate support for funding requirements within 12 months.
The Company intends to coordinate payment of the MBI Acquisition purchase price with the closing of one or more financing transactions addressing outstanding debt maturities.
The Company has no assurances it will be able to consummate financing transactions to address debt maturities.
If unable to address near-term debt maturities on acceptable terms or at all, or if a default occurs that cannot be cured, the Company may need to seek relief under Chapter 11 of the U.S. Bankruptcy Code.

Residential data revenues were $204.1 million, a decrease of 10.3% year-over-year, driven by declines in subscribers and ARPU.
Residential video revenues were $35.7 million, a decrease of 20.7% year-over-year, driven by a decline in subscribers, partially offset by rate adjustments.
Business data revenues were $53.6 million, a decrease of 6.7% year-over-year, driven by declines in subscribers and business services ARPU.
Residential customers decreased 6.2% to 876.7 thousand, and data PSUs decreased 5.3% to 862.5 thousand.
Business customers decreased 2.8% to 105.0 thousand, and business data PSUs decreased 1.9% to 97.8 thousand.
Total customers decreased 5.8% to 981.7 thousand.
Residential data ARPU was $78.48, down 4.5% from $82.17 in the prior year quarter.
Business services ARPU was $211.48, down 7.0% from $227.50 in the prior year quarter.
Capital expenditures by category included $27.1 million for customer premise equipment, $4.2 million for commercial, $4.9 million for scalable infrastructure, $10.1 million for line extensions, $8.4 million for upgrade/rebuild, and $23.2 million for support capital.

The Company operates as a leading broadband provider serving approximately 1 million residential and business customers across 24 states.
The Company faces rising levels of competition from historical and new entrants in its markets.
The Company is dedicated to bridging the digital divide and fostering a connected world through its Sparklight® brand.

The Company's existing sources of liquidity and cash flows from operations are insufficient to repay debt maturing in 2027 and 2028, including MBI's term loans ($916.2 million) and the Company's revolving credit facility ($1.25 billion), convertible notes ($345.0 million), and senior secured term loan ($694.3 million).
The Company's ability to address debt maturities depends on consummating financing transactions or extending debt maturities, which are not entirely within its control.
A breach of financial covenants could result in an event of default, acceleration of debt repayment, and potential acceleration of other debt under cross-default provisions.
If the MBI Acquisition is consummated and MBI's debt cannot be refinanced, the Company may not be able to consummate the acquisition, potentially leading to claims for monetary damages or specific performance.
Risks include the potential for Chapter 11 bankruptcy if financing transactions are not consummated or defaults cannot be cured.
The Company is in compliance with financial covenants as of September 30, 2026, but may not maintain compliance if operating performance deteriorates or market conditions worsen.

Jim Holanda, Chief Executive Officer, stated the Company made "meaningful progress in customer trends" and highlighted the best residential data subscriber results in seven quarters and highest connect activity in three years.
Management remains focused on building momentum, citing the strength of the network and meaningful cash flow generation as sources of confidence in the long-term opportunity.

At September 30, 2026, the Company held $674.8 million in cash and cash equivalents, compared to $152.8 million at December 31, 2025.
Gross debt balance was $3.55 billion at September 30, 2026, compared to $3.21 billion at December 31, 2025.
The Company borrowed $500.0 million, net of repayments, under its revolving credit facility during the quarter.
As of September 30, 2026, the Company had $1,050.0 million of borrowings and $200.0 million of nominal availability under its revolving credit facility.
The weighted average cost of debt was 4.8% for the third quarter of 2026.
The Company intends to hold MBI separate from the balance of its operations to preserve flexibility and mitigate adverse impacts if MBI's debt cannot be refinanced.
A temporary restraining order entered on October 9, 2026, regarding the MBI Acquisition was noted; the Company has sufficient liquidity to satisfy the purchase price if the order is dissolved.
The Company sold certain fiber-to-the-tower contract rights in March 2026 for $42.0 million in cash proceeds.
The Company hosted a conference call on November 5, 2026, to discuss results.