Cable One (CABO) Q2 2025 earnings summary

Executive summary

• Q2 2025 results were shaped by internal pricing and packaging changes, increased promotional activity, competitive pressures, and seasonal softness in college markets.

• Net loss of $438.0 million for Q2 2025, driven by $586.0 million in non-cash asset impairments on franchise agreements and goodwill.

• Revenues declined 3.4% year-over-year to $381.1 million, mainly due to a $9 million (15.8%) drop in residential video revenues and continued declines in video and voice offsetting modest growth in business data.

• Adjusted EBITDA for Q2 2025 was $203.2 million (53.3% of revenues), down 4.3% year-over-year, reflecting lower revenues and higher system conversion costs.

• The final phase of the billing system migration was completed, consolidating legacy programs and enabling future cost savings and operational agility.

Financial highlights

• Total Q2 2025 revenues were $381.1 million, down from $394.5 million in Q2 2024, mainly due to a $9 million (15.8%) drop in residential video revenues.

• Net loss for Q2 2025: $438.0 million, including $456.2 million in non-cash asset impairments.

• Adjusted EBITDA: $203.2 million (53.3% margin), down 4.3% year-over-year.

• Capital expenditures were $68.4 million, a 4.5% year-over-year decrease.

• Free cash flow was $134.8 million, representing 66.4% of adjusted EBITDA.

Outlook and guidance

• ARPU is expected to remain stable for the rest of 2025.

• Total residential broadband customers are not expected to grow in 2025; residential broadband revenue is projected to be flat or decrease modestly year-over-year.

• The billing migration is anticipated to yield several million dollars in annual cost savings starting late 2025.

• The company expects $40 million in cash tax savings in 2025 and $120 million through 2027 due to recent tax legislation.

• Dividend suspended in Q2 2025, with anticipated annual savings of $67 million to be redirected to debt repayment and growth initiatives.