Cable One (CABO) investor relations material

Executive summary

• Revenues declined 7.3% year-over-year to $353.0 million, mainly due to lower residential video and data revenues, while net income surged to $35.8 million from $2.6 million, driven by a $26.6 million gain on asset sales and reduced equity investment losses.

• Adjusted EBITDA fell 9.6% year-over-year to $183.3 million (51.9% margin), reflecting lower revenues and heightened competition, but operating cash flow increased slightly to $118.22 million.

• Leadership is focused on improving execution, retention, and conversion, with operational changes underway but not yet fully reflected in financial results.

• The company continues to focus on higher-margin residential and business data services, while de-emphasizing video and voice due to industry trends.

• Substantial free cash flow generation continues, supporting debt reduction and disciplined capital allocation.

Financial highlights

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

• Net income increased by $33.17 million, benefiting from a $26.6 million gain on sale of fiber-to-the-tower contract rights and $9.8 million in debt extinguishment gains.

• Operating expenses fell 6.0% year-over-year to $93.9 million, and SG&A expenses dropped 8.6% to $87.2 million.

• Interest expense, net, decreased 12.2% to $30.3 million due to lower debt balances and rates.

• Free cash flow for Q1 was approximately $115 million, with $500 million generated over the past four quarters.

Outlook and guidance

• ARPU trends are expected to remain broadly stable for the year, despite some quarter-to-quarter variability.

• Expansion of multi-gig capabilities to most markets is targeted by year-end.

• The acquisition of the remaining 55% of MBI is expected to close October 1, 2026, with a Put Price of ~$480 million and anticipated net indebtedness of $875–$925 million.

• Management believes existing cash, credit facilities, and operating cash flows will support funding needs, including the MBI acquisition.

• The company expects continued pressure on video and voice revenues, with a strategic focus on growing data services and investing in network upgrades.