CABO · Cable One, Inc.

Cable One's Q1 2026 results showed revenue pressure from declining residential data subscribers (down 5.1% to $213.6 million) and residential video revenues (down 19.8% to an implied lower figure due to subscriber losses), partially offset by modest ARPU gains and rate adjustments. Business data revenues dipped 1.8% to $56.3 million. Despite revenue contraction, net income improved dramatically to $35.8 million (10.1% margin) from $2.6 million (0.7% margin), primarily driven by a $26.6 million gain on the fiber-to-the-tower contract sale and $32.9 million lower equity investment losses. Adjusted EBITDA declined to $183.3 million (51.9% margin) from $202.7 million (53.3% margin), reflecting revenue headwinds. CEO Jim Holanda emphasized sharpening execution in go-to-market strategies, customer retention, and product simplification to leverage the company's resilient model, high-capacity network, and cash flow generation. Operating cash flow edged up 1.6% to $118.2 million, supporting $68.4 million in capex (down 3.8%) and robust debt reduction of $90.6 million, including $33.7 million senior note repurchases, $27.4 million term loan prepayments, $25.0 million revolver paydowns, and $4.4 million amortization. The $42.0 million asset sale proceeds accelerated deleveraging, with total debt at $3.12 billion (down from $3.21 billion year-end), cash at $165.6 million, and weighted average cost of debt at 3.7%. Revolver utilization was $550.0 million with $700.0 million available. Capital expenditures broke down into customer premise equipment ($19.6 million), commercial ($3.0 million), scalable infrastructure ($7.3 million), line extensions ($14.3 million), upgrade/rebuild ($4.2 million), and support capital ($20.1 million), signaling sustained network investment amid competitive pressures.