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Cable One (CABO) investor relations material

Cable One Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 earnings summary6 Nov, 2025

Executive summary

  • Q3 2025 revenue declined 4.5% year-over-year to $376 million, mainly due to lower residential video and data revenues, while net income rose 95.7% to $86.5 million, driven by $67.4 million in gains on equity investment sales and lower expenses, despite subscriber losses.

  • Adjusted EBITDA for Q3 2025 was $201.9 million (53.7% margin), down 5.5% year-over-year; net cash from operating activities fell 11.2% to $156.5 million.

  • For the nine months ended September 30, 2025, revenue was $1.14 billion, down 4.6% year-over-year, and net loss was $348.8 million, driven by $586 million in non-cash asset impairments.

  • Initiatives such as simplified pricing, segmented marketing, and new product launches (TechAssist, LIFT, Flex, and mobile pilot) are aimed at improving customer retention and growth.

  • Leadership transition is underway, with the CEO set to retire by year-end 2025 but remain as a senior advisor through 2026.

Financial highlights

  • Residential data revenues fell 1.2% year-over-year to $227.6 million, with a 3.2% increase in ARPU partially offsetting subscriber losses.

  • Residential video revenues dropped 16.2% to $45 million, reflecting ongoing subscriber declines.

  • Business data revenues grew 0.4% to $57.5 million, with fiber and carrier segments showing growth, while SMB remained soft.

  • Capital expenditures were $71.8 million, down 6.8% year-over-year, with full-year CapEx now expected in the high $200 million range.

  • Free cash flow was $130.1 million (64.4% of adjusted EBITDA), compared to $136.6 million (64%) in Q3 2024.

Outlook and guidance

  • ARPU is expected to remain stable for the rest of 2025, with retention initiatives potentially putting some downward pressure, offset by value-added products.

  • Full-year CapEx guidance revised to high $200 million range, down from previous $300 million estimate.

  • No planned rate adjustments for high-speed data customers in 2026; focus remains on alternative revenue streams.

  • Management expects continued improvement in Connects and churn, with October showing both year-over-year and sequential gains.

  • Capital allocation will prioritize debt repayment, refinancing, and organic growth following the suspension of the dividend in Q2 2025.

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Cable One Inc is a broadband communications company providing internet, cable television, and telephone services. The company operates under several regional brand names and serves residential and business customers across smaller markets in the United States. Cable One Inc is headquartered in Phoenix, Arizona, and its shares are listed on the NYSE.

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