Cable One, Inc.

What they do

Cable One delivers data, video and voice services over fiber-to-the-premises and hybrid fiber-coaxial networks. As of June 30, 2026, it served approximately 1.0 million residential and business customers across approximately 2.8 million passings, with about 76% of customers in seven states. Substantially all revenue comes from three product lines: residential data, business data and residential video.

Revenue drivers

• Residential data — Largest product line at 60.7% of total revenues through the first six months of 2026; generates recurring subscription revenue from approximately 968,000 data subscribers as of June 30, 2026.
• Business data — Second-largest product line at 15.7% of total revenues through the first six months of 2026; revenue comes from business customers, including enterprise and wholesale accounts.
• Residential video — Third-largest product line at 11.3% of total revenues through the first six months of 2026; serves 78,000 video subscribers but carries low margins because programming and retransmission costs represented 59%-63% of residential video revenues in each of the last three years.

Recent performance

Second quarter 2026 revenues were $348.9 million, down 8.4% from $381.1 million a year earlier, with declines across residential data (-7.3%), business data (-6.6%) and residential video (-20.1%). The net loss was $1.16 billion, driven by $462.3 million of non-cash asset impairment charges and a $262.3 million non-cash impairment of the MBI equity investment, plus a $333.0 million non-cash fair value adjustment loss on the MBI Put Option. Adjusted EBITDA fell 14.6% to $173.5 million and Adjusted EBITDA margin declined to 49.7%. Operating cash flow was $120.9 million, down 16.6% year over year.

Strategy

Cable One focuses on growing higher-margin residential data and business data services while acknowledging industry-wide declines in video profitability and residential voice revenue. The company targets customers likely to produce higher relative value over the life of the relationship, while also pursuing more value-conscious incremental customers. It invests in fiber-based infrastructure and related services such as intelligent Wi-Fi, technology support and network security. Debt reduction is a stated priority, with $62.8 million of principal repaid in the second quarter of 2026.

Risks

• Subscriber losses — Residential and business data subscriber declines drove revenue decreases in the second quarter of 2026, and management attributes recent losses to increased competition.
• MBI Put Option exposure — The Put Option on remaining MBI equity interests produced a $333.0 million non-cash fair value adjustment loss in the second quarter of 2026, and the purchase price and funding sources remain uncertain.
• Video margin pressure — Programming and retransmission fees represented 59%-63% of residential video revenues in each of the last three years, making that product line far less profitable than data services.
• High leverage — Total liabilities were $4.30 billion against $326.4 million of shareholder equity as of June 30, 2026, and long-term debt was $3.06 billion.

Outlook

Management, led by CEO Jim Holanda, describes the business as having a strong network, attractive markets and meaningful cash flow generation with significant potential to improve operating performance. The company believes current penetration levels provide an opportunity for long-term growth and value creation. No specific financial guidance was provided in the latest earnings release.