Cable One (CABO) investor relations material

Executive summary

• Q2 2026 revenue was $348.9M, down 8.4% year-over-year, with a net loss of $1.16B driven by significant non-cash impairments and fair value adjustments.

• Adjusted EBITDA for Q2 2026 was $173.5M (49.7% margin), a 14.6% decrease from the prior year, reflecting lower revenues and higher asset impairments.

• The company focused on customer retention, digital and direct sales, and product enhancements, while de-emphasizing video and voice products.

• Mobile service launched in March 2026, showing early positive adoption trends.

• Cash flows from operating activities for the first half of 2026 were $239.1M, down 8.5% year-over-year.

Financial highlights

• Residential data revenues dropped 7.3% year-over-year to $212.6M, video revenues fell 20.1% to $38.5M, and business data revenues decreased 6.6% to $53.6M.

• Adjusted EBITDA less CapEx was $99.5M, down from $134.8M year-over-year.

• Capital expenditures rose 8.2% year-over-year to $74M, mainly for advanced Wi-Fi and security solutions.

• Net profit margin deteriorated to (333.8)% from (114.9)% year-over-year.

• Non-cash impairment charges and fair value adjustments, including $597.7M in asset impairments and $444.0M loss on the MBI option, significantly impacted results.

Outlook and guidance

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

• Full-year CapEx is expected to remain consistent with the prior year, with continued discipline in capital allocation and focus on debt reduction.

• The company anticipates closing the MBI acquisition by October 1, 2026, with a Put Price of approximately $480M and MBI net indebtedness of about $920M.

• Existing cash, credit facilities, and operating cash flows are expected to support near-term funding needs, including the MBI transaction.

• Management remains confident in long-term growth potential, targeting improved customer retention and deeper market penetration.