Cable One (CABO) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenues declined 7.3% year-over-year to $353 million, mainly due to lower residential video and data revenues, while net income rose 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% to $183.3 million (51.9% margin), reflecting lower revenues and heightened competition, but operating cash flow increased to $118.2 million.

• Leadership is focused on improving execution, strengthening retention, simplifying product offerings, and driving consistency across markets, with a strategic emphasis on higher-margin data services.

• Substantial free cash flow generation continues, supporting debt reduction and long-term shareholder value.

• The company completed a $42 million fiber-to-the-tower contract sale, using proceeds to accelerate debt repayment.

Financial highlights

• Q1 2026 total revenues were $353 million, down from $380.6 million in Q1 2025, with residential data revenues at $213.6 million (down 5.1%) and residential video revenues at $40.8 million (down 19.8%).

• Adjusted EBITDA was $183.3 million (51.9% margin), compared to $202.7 million (53.3%) in Q1 2025.

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

• Capital expenditures were $68.4 million, down 3.8% year-over-year.

• Net income increased by $33.17 million, benefiting from a $26.6 million gain on asset sales and $9.8 million in debt extinguishment gains.

Outlook and guidance

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

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

• The MBI acquisition is expected to close in Q4 2026, with integration planning underway and a Put Price of ~$480 million.

• Full-year CapEx is tracking toward 2025 levels.

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