Cable One (CABO) Q4 2025 earnings summary

Executive summary

• Fourth quarter 2025 revenues declined 6.1% year-over-year to $363.7 million, with residential broadband connect activity improving and disconnects reduced, though net subscriber losses persisted.

• Strategic focus on defending the customer base, profitable growth, and efficiency initiatives amid competitive pressures from fixed wireless and fiber overbuilds.

• Leadership transition with new CEO and SVP of Business Services, emphasizing execution, customer experience, and disciplined capital management.

• Net loss improved to $7.6 million in Q4 2025 from $105.2 million in Q4 2024, mainly due to the absence of a prior-year non-cash impairment charge.

• Full year 2025 revenues fell 4.9% to $1.5 billion, with a net loss of $356.5 million versus net income of $14.5 million in 2024, driven by $456.2 million in non-cash asset impairment charges.

Financial highlights

• Q4 2025 revenues were $363.7M, down 6.1% year-over-year; full-year revenues were $1.5B, down from $1.58B in 2024.

• Adjusted EBITDA for Q4 was $193.9M (down 8.1% YoY); full-year adjusted EBITDA was $801.7M (53.4% margin).

• Free cash flow (adjusted EBITDA less capex) was $119.9M in Q4 and $516.5M for the year, both down from 2024.

• Capital expenditures were $285.3M for 2025, flat year-over-year; Q4 capex was $74.0M.

• Debt reduced by $403.4M in 2025; $1.25B revolver undrawn at year-end.

Outlook and guidance

• 2026 capital expenditures expected to remain consistent with 2025 levels.

• Cash income taxes projected at $40–50M for 2026, with $120M in tax savings anticipated through 2027.

• No formal subscriber guidance for 2026, but early trends in 2026 show continued improvement in connects and churn.

• Management is focused on defending the customer base, pursuing profitable growth, and executing efficiency initiatives in 2026.

• Opportunities identified for market share gains and deeper penetration with higher-value products.