Cable One (NYSE: CABO) reported Q2 2026 revenue of $348.9 million, down 8.4% year over year, and a diluted net loss of $204.35 per share versus $77.70 a year earlier. Subscriber declines across residential data, residential video and business data weakened operating results, while large non-cash charges drove the GAAP net loss to $1.16 billion.
Core earnings data
Revenue declined by $32.1 million as lower operating and selling, general and administrative expenses failed to offset weakness across Cable One’s main service categories. Adjusted EBITDA fell faster than revenue, while operating cash flow decreased and capital expenditures increased.
GAAP results were also heavily affected by asset impairments and MBI-related charges, making adjusted EBITDA more useful for separating operating performance from the quarter’s non-cash accounting losses.
| Metric | Q2 2026 | Q2 2025 | Year-over-year change |
|---|---|---|---|
| Revenue | $348.9 million | $381.1 million | -8.4% |
| Operating loss | -$524.9 million | -$489.3 million | Loss widened 7.3% |
| Net loss | -$1.16 billion | -$438.0 million | Loss widened 165.9% |
| Net profit margin | -333.8% | -114.9% | Worsened |
| Diluted loss per share | -$204.35 | -$77.70 | Loss widened 163.0% |
| Adjusted EBITDA | $173.5 million | $203.2 million | -14.6% |
| Adjusted EBITDA margin | 49.7% | 53.3% | Down about 3.6 percentage points |
| Operating cash flow | $120.9 million | $144.9 million | -16.6% |
| Capital expenditures | $74.0 million | $68.4 million | +8.2% |
| Adjusted EBITDA less capital expenditures | $99.5 million | $134.8 million | -26.2% |
Adjusted EBITDA, adjusted EBITDA margin and adjusted EBITDA less capital expenditures are company-defined non-GAAP measures and should be considered alongside the corresponding GAAP results.
Revenue mix and subscriber pressure
The revenue decline was concentrated in Cable One’s three largest data and video categories. Together, residential data, residential video and business data accounted for approximately $30.2 million of the company’s $32.1 million year-over-year revenue reduction.
- Residential data revenue fell 7.3% to $212.6 million, primarily because of fewer subscribers. It also declined $1.0 million, or 0.5%, from the preceding quarter.
- Residential video revenue decreased 20.1% to $38.5 million as subscriber losses outweighed the benefit of a rate adjustment implemented in the second half of 2025.
- Business data revenue declined 6.6% to $53.6 million, also primarily because of lower subscriber numbers.
- Residential voice revenue fell 6.9% to $6.3 million, while business other revenue declined 14.0% to $14.2 million.
- Other revenue was the only reported category to grow, rising 3.6% to $23.8 million, but the increase was too small to offset weakness elsewhere.
The declines in both residential and business data indicate that the pressure was not limited to the structurally shrinking video business. Residential data remained the company’s largest revenue source, making subscriber stabilization in that category particularly important.
Non-cash charges dominate the GAAP loss, but operations also weakened
Cable One conducted an interim impairment assessment after a decline in its stock price during the quarter. It recognized $597.7 million of pre-tax asset impairments, consisting of $526.0 million related to indefinite-lived franchise agreements and $71.7 million related to goodwill. On an after-tax basis, these asset impairment charges reduced earnings by $462.3 million.
The net loss also included a $262.3 million after-tax impairment of the company’s MBI equity investment and a $333.0 million after-tax fair-value adjustment loss on the put option associated with the remaining MBI interests. The three disclosed after-tax non-cash charges totaled approximately $1.06 billion, accounting for most of the $1.16 billion GAAP net loss.
The company said the franchise and goodwill impairments did not affect cash flow, operating strategy, growth initiatives or its intent and ability to renew existing franchise agreements. However, the 14.6% decline in adjusted EBITDA and the reduction in adjusted EBITDA margin show that operating performance deteriorated independently of the accounting charges.
Cash flow and balance sheet
Operating cash flow remained positive at $120.9 million but declined 16.6%. At the same time, capital expenditures increased 8.2% to $74.0 million, contributing to the 26.2% decline in the company-defined adjusted EBITDA less capital expenditures measure.
Customer premise equipment spending rose to $20.2 million from $11.1 million and support capital increased to $24.3 million from $22.9 million. Line-extension spending moved in the opposite direction, declining to $13.4 million from $17.4 million.
Cable One ended June 2026 with $166.2 million of cash and cash equivalents, compared with $152.8 million at the end of 2025. Gross debt decreased to $3.06 billion from $3.21 billion over the same period.
During the quarter, the company repaid $62.8 million of principal, consisting of $45.6 million of senior-note repurchases, $12.8 million of term-loan prepayments and $4.4 million of scheduled amortization. It had $550.0 million borrowed under its revolving credit facility and another $700.0 million available at quarter-end. Its weighted average cost of debt was 4.6% for the quarter.
Recent insider transactions
The supplied insider transaction history shows that nine of the ten most recent reported transactions were stock awards. The only purchase among these records was a $99,960 transaction by Chief Financial Officer Todd M. Koetje; all ten transactions were reported as direct holdings.
| Date | Insider and role | Transaction | Price per share | Reported value |
|---|---|---|---|---|
| May 14, 2026 | Katharine B. Weymouth, Director | Stock award | $51.13 | $154,975 |
| May 14, 2026 | Robert P. Bartolo, Director | Stock award | $51.13 | $154,975 |
| May 14, 2026 | Mary E. Meduski, Director | Stock award | $51.13 | $257,440 |
| May 14, 2026 | Sherrese M. Smith, Director | Stock award | $51.13 | $244,964 |
| May 14, 2026 | Wallace R. Weitz, Director | Stock award | $51.13 | $254,934 |
| May 14, 2026 | Brad D. Brian, Director | Stock award | $51.13 | $199,969 |
| May 14, 2026 | Deborah J. Kissire, Director | Stock award | $51.13 | $154,975 |
| March 3, 2026 | Todd M. Koetje, Chief Financial Officer | Purchase | $100.16 | $99,960 |
| February 2, 2026 | Kenneth E. Johnson, Chief Operating Officer | Stock award | $87.70 | $119,009 |
| February 2, 2026 | Margaret Masoner Detz, Officer | Stock award | $87.70 | $124,709 |
These records describe the transactions but do not establish insiders’ views about Cable One’s valuation or future performance.
Risks investors should watch
- Continued subscriber attrition: Residential data, residential video and business data revenue all declined because of lower subscriber counts. Further losses would continue to pressure the company’s main recurring revenue streams.
- Operating margin pressure: Adjusted EBITDA declined faster than revenue, reducing the adjusted EBITDA margin from 53.3% to 49.7%. Expense reductions have not yet offset the effect of lower sales.
- Weaker cash generation alongside higher investment: Operating cash flow fell while capital expenditures increased, reducing the funds available before debt service and other financing needs.
- MBI valuation and transaction exposure: The MBI investment impairment and put-option fair-value loss had a major effect on Q2 GAAP results. The company also identifies the put-option transaction, its funding and MBI integration as ongoing areas of uncertainty.
- Substantial debt: Gross debt remained $3.06 billion despite recent repayments, and the revolving credit facility had $550.0 million outstanding. This debt load may limit financial flexibility if operating results continue to weaken.
Bottom line
Cable One’s second quarter was defined by subscriber-led revenue declines and lower adjusted profitability, while non-cash asset and MBI-related charges made the GAAP loss substantially larger. The company continued to produce positive operating cash flow and repay debt, but higher capital spending, contracting margins and a still-significant debt balance make subscriber trends, cash generation and MBI-related obligations the main issues to monitor.
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