Cable One (CABO) investor relations material

Executive summary

• Revenues declined 7.3% year-over-year to $353 million, mainly due to lower residential video and data revenues, reflecting ongoing competitive pressures and economic headwinds, though early signs of improvement are visible in new connects and mobile launch traction.

• Net income surged to $35.8 million from $2.6 million, driven by a $26.6 million gain on sale of fiber-to-the-tower contract rights and reduced equity investment losses.

• Free cash flow remains strong at $115 million for Q1 and $500 million over the past four quarters, supporting debt reduction and disciplined capital allocation.

• Leadership is focused on improving execution, retention, and consistency across markets, with operational initiatives underway but not yet fully reflected in results.

• Net cash from operating activities increased 1.6% to $118.2 million.

Financial highlights

• Total Q1 2026 revenues were $353 million, down from $380.6 million in Q1 2025, mainly due to lower residential video and data revenues.

• Adjusted EBITDA was $183.3 million (51.9% margin), down from $202.7 million (53.3%) year-over-year.

• Capital expenditures were $68.4 million, 3.8% lower year-over-year and 37.3% of Adjusted EBITDA.

• Adjusted EBITDA less CapEx totaled $114.9 million, down 12.7% year-over-year.

• Operating income declined 9.5% to $86.6 million.

Outlook and guidance

• ARPU trends are expected to remain broadly stable for the year, despite some quarter-to-quarter variability due to competitive offers and retention initiatives.

• Full-year CapEx is tracking toward 2025 levels.

• The MBI acquisition is expected to close in Q4 2026, with integration planning underway.