Cable One (CABO) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues declined 5.9% year-over-year to $380.6 million, with net income dropping 93% to $2.6 million, impacted by lower residential video and data revenues and a $28 million non-cash impairment charge.

• Adjusted EBITDA decreased 6.6% to $202.7 million (53.3% margin), reflecting lower subscriber counts and higher costs.

• Residential data and video revenues decreased, while business data revenues grew 1.2% year-over-year.

• The company suspended its quarterly dividend after Q1 2025 to prioritize accelerated debt repayment and organic growth investments, freeing up ~$67 million annually.

• Customer base contracted 2.5% year-over-year, with notable declines in video and voice subscribers.

Financial highlights

• Residential data revenues fell 4.5% to $225.1 million; ARPU decreased 3.1% to $78.84.

• Residential video revenues declined 15.8% to $50.8 million; business data revenues rose 1.2% to $57.3 million.

• Net cash from operating activities was $116.3 million, down 29.4% year-over-year.

• Capital expenditures increased 8% to $71.1 million; Adjusted EBITDA less capex was $131.6 million, down 13% year-over-year.

• Net profit margin was 0.7%, down from 9.2% in Q1 2024.

Outlook and guidance

• Leadership expects residential broadband revenue and subscriber growth in 2025, supported by improved connects, normalized churn, and new product rollouts.

• ARPU is expected to improve through higher-tier product adoption, discount roll-offs, and growth in ancillary products.

• Full-year capital expenditures are projected in the low $300 million range.

• Sufficient liquidity projected for the next 12 months, with flexibility for acquisitions and investments.

• Leverage ratio is expected to remain below four times, even with potential MBI consolidation in late 2026.