Cable One Q2 Earnings Call Highlights

Cable One (NYSE:CABO) reported second-quarter 2026 revenue and adjusted EBITDA declines as elevated residential broadband churn continued to pressure subscriber results, while management pointed to improving customer acquisition activity and ongoing investments in retention, network capabilities and mobile services.

Total revenue was $348.9 million in the quarter, down from $381.1 million a year earlier. Adjusted EBITDA fell to $173.5 million, or 49.7% of revenue, from $203.2 million, or 53.3% of revenue, in the prior-year period.

CEO Jim Holanda said the company’s operating priorities remain focused on retaining existing broadband customers, expanding sales channels and improving its value proposition in markets facing increased competition.

Broadband losses and retention efforts

Cable One reported a loss of 17,000 residential broadband customers during the second quarter, which Holanda attributed to elevated churn. He described customer retention as the company’s most important operational priority.

The company is using additional speed upgrades, more gradual promotional roll-offs, enhanced retention tools and a broader portfolio of services to address churn. Residential broadband average revenue per user increased sequentially, supported by promotional roll-offs, changes to the company’s AutoPay Plus program and adoption of higher-value products and services. Those benefits were partly offset by retention initiatives and increased uptake of value-oriented offerings.

Holanda said Cable One expects to use increasingly targeted pricing and retention actions based on the competitive conditions in individual markets. CFO Todd Koetje said the company is willing to accept some pressure on “enterprise ARPU” as it works to acquire more customers and improve longer-term customer growth.

Residential data revenue declined $16.7 million, or 7.3% year over year, as subscriber count fell 6.6% while ARPU remained relatively flat from the prior-year period. On a sequential basis, residential data revenue declined $1 million, or 0.5%.

Management said customer connects improved sequentially in the second quarter and increased in each month of the quarter. Holanda said digital and direct-sales channels represented roughly 35% of sales in the second quarter, compared with less than 10% a year earlier. Digital accounted for about 25% of sales, and Holanda said he expects that channel could rise to 35% to 40% over the next 12 to 18 months.

While direct sales are more expensive than inbound channels, Holanda said he expects the overall customer acquisition cost to increase only slightly and not materially affect margins.

Competition, network and mobile

Cable One said competitive pressure remains elevated, particularly in markets with fiber overbuild activity. Management expects the broadband market to include wired, fixed wireless, mobile-only and satellite providers, but said wired broadband should continue serving most households because of its capacity, reliability and economics.

The company estimates that more than 80% of its footprint currently overlaps with fixed-wireless offerings, a level Koetje said was broadly similar to a year ago. Management said third-party Opensignal data indicated satellite service represented an estimated 1% market share in 2026, compared with 0% at the end of 2025, though the company said satellite had not created a material competitive impact.

Holanda said management views low-penetration markets as an opportunity rather than areas it would consider exiting. He said penetration rates vary across the company’s footprint, reflecting the histories and investment levels of the businesses that now comprise Cable One and its Sparklight brand.

The company said essentially all of its network can deliver gigabit speeds, and it expects the vast majority of customers to be served by multi-gig-capable infrastructure by the end of 2026. Holanda said the expansion stems from years of capital-efficient investments rather than a major new capital program.

Cable One also said its mobile service, which launched across its footprint in March, is showing encouraging early adoption. Management views mobile as a tool to support acquisition, deepen customer relationships and improve retention, though Holanda said it will take time for customers to view the company as a mobile provider.

Business services and financial position

Business data revenue declined $3.8 million, or 6.6%, from a year earlier. Cable One said $2.2 million of that decline was tied to fiber-to-the-tower contracts divested in the first quarter. The company said its small- and medium-sized-business broadband operations remained under pressure, while enterprise, wholesale and carrier offerings showed encouraging momentum.

During the quarter, Cable One introduced unified communications as a service, or UCaaS, to provide cloud-based communications tools alongside its connectivity products.

Operating expenses declined 3.5% year over year to reflect lower programming costs, partly offset by investments in customer experience. Selling, general and administrative expenses declined 4.7%, due to lower labor costs and reduced billing-system conversion expenses, though the company continued to invest in customer acquisition and marketing.

Capital expenditures rose $5.6 million from a year earlier to $74 million, driven primarily by investments in advanced in-home Wi-Fi technology and security solutions. Cable One reaffirmed that it expects full-year Capital expenditures to remain consistent with the prior year. Adjusted EBITDA less Capital expenditures, which the company defines as free cash flow, was $99.5 million, down from $134.8 million a year earlier.

The company reduced debt by $63 million during the quarter, including nearly $60 million in voluntary repurchases at discounts. Through the first half of 2026, debt balances were reduced by nearly $130 million.

• Cash and equivalents: $166.2 million at June 30
• Gross debt: $3.06 billion
• Undrawn revolving-credit capacity: $700 million
• Net leverage ratio: 4.2 times on a last-quarter annualized basis

Koetje said Cable One is evaluating financing alternatives to strengthen the balance sheet and maintain long-term flexibility, but declined to provide further details on its financing efforts or those involving MBI. The company also continues to consider monetization opportunities for unconsolidated equity investments, with potential proceeds available for debt reduction.

Cable One recognized several non-cash impairment charges and fair-value adjustments during the quarter related to franchise agreements, goodwill and its MBI investment. Koetje said the charges do not affect cash flow, liquidity, operating strategy or long-term growth initiatives.

About Cable One (NYSE:CABO)

Cable One, Inc (NYSE:CABO) is an American provider of broadband communications services, offering a suite of residential and business solutions over a hybrid fiber-coaxial network. The company delivers high-speed internet access, digital video, voice communications and mobile services, alongside advanced managed Wi-Fi and cybersecurity tools. Cable One's infrastructure supports both traditional cable offerings and converged IP-based platforms designed to meet evolving customer needs.

In addition to consumer-focused services, Cable One caters to small and medium-sized enterprises with dedicated business-class connectivity, Ethernet solutions and cloud-based voice applications.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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