Cable One (CABO) Q2 2026 earnings summary

Executive summary

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

• Adjusted EBITDA fell 14.6% to $173.5M (49.7% margin), reflecting lower revenues and higher asset impairments.

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

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

• Cash flows from operating activities decreased 16.6% to $120.9M.

Financial highlights

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

• Adjusted EBITDA less CapEx was $99.5M, down 26.2% year-over-year.

• Net loss was $1.16B, compared to $438.0M in Q2 2025, mainly due to $597.7M in non-cash asset impairments and a $444.0M loss on the MBI option.

• Capital expenditures were $74M, up 8.2% year-over-year, focused on advanced Wi-Fi and security solutions.

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

Outlook and guidance

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

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

• Q3 is expected to be seasonally stronger for subscriber trends, with ongoing focus on balancing ARPU and subscriber growth.

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