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    CABO
    Earnings call· Jun 2026(Q2 FY26)

    Cable One Q2 FY26 earnings call CABO

    Aug 6, 2026 Source

    Executive summary

    Cable One Q2 FY26 — Operational Focus Amidst Competitive Headwinds

    Cable One is navigating a challenging competitive landscape marked by subscriber losses in residential broadband, emphasizing operational improvements and a balanced acquisition strategy. The company is focused on enhancing customer experience, strengthening its value proposition through product diversification, and leveraging its multi-gig capable network. Despite revenue and EBITDA declines, management remains confident in long-term growth by improving retention and expanding sales channels, while maintaining a disciplined capital allocation approach.

    Highlights

    5

    • Connect activity improved sequentially from Q1 FY26 and each month of Q2 FY26, with door-to-door sales more than doubling as a share of quarterly connects.

    • Residential broadband ARPU increased sequentially, benefiting from promotional roll-offs and AutoPayPlus program changes.

    • Mobile service, launched in March FY26, shows encouraging early adoption trends and pace of growth.

    • Reduced debt balances by $63 million in Q2 FY26, including $60 million via voluntary repurchases at attractive discounts, and $130 million year-to-date.

    • Vast majority of customers will be served by multi-gig capable infrastructure by end of FY26, built through disciplined capital-efficient investment.

    Concerns

    5

    • Residential broadband subscriber losses of 17,000 customers in Q2 FY26 due to elevated churn.

    • Total revenues decreased to $348.9 million in Q2 FY26 from $381.1 million in Q2 FY25.

    • Residential data revenues decreased $16.7 million or 7.3% YoY, driven by a 6.6% decrease in subscribers.

    • Adjusted EBITDA declined to $173.5 million (49.7% margin) in Q2 FY26 from $203.2 million (53.3% margin) in Q2 FY25.

    • Competitive intensity remains high, particularly in markets with fiber overbuild activity, with fixed wireless overlap at over 80% of the footprint.

    Guidance & targets

    1
    CategoryTargetConfidence
    Full-year Capital Expenditures
    Consistent with prior year
    high materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Residential Data
    Residential data revenues decreased $16.7 million or 7.3% year-over-year driven by a 6.6% decrease in subscribers, while ARPU remained relatively flat. On a sequential basis, residential data revenues declined by $1 million or 0.5%.
    Subscribers: -6.6% YoYARPU: relatively flat YoY
    		decreased $16.7 million-7.3%-0.5%—
    Business Services
    Data revenues on the business side declined by $3.8 million year-over-year or 6.6%. However, $2.2 million of this decline was attributable to the revenues associated with the tower contracts divested during the first quarter of 2026.
    		declined by $3.8 million-6.6%——

    Operational metrics

    23
    Residential broadband customer losses
    17,000
    Q2 FY26

    due to elevated churn

    Door-to-door sales contribution to connects
    more than doubledYoY
    Q2 FY26

    as a share of quarterly connects

    Digital acquisition channels contribution to sales
    25%
    Q2 FY26

    expected to reach 35-40% over next 12-18 months

    SG&A expenses decline
    $4.3 million4.7% YoY
    Q2 FY26

    due to lower labor expense and reduced billing system conversion costs, offset by investment in customer acquisition channels and marketing

    SG&A as % of revenues
    25.1%vs 24.1% in Q2 FY25
    Q2 FY26

    SG&A represented 25.1% of total revenues in the current quarter compared to 24.1% in the second quarter of last year.

    Capital expenditures increase
    $5.6 millionYoY
    Q2 FY26

    primarily attributable to investments in the latest in-home advanced WiFi technologies and security solutions

    Debt reduction
    $63 million
    Q2 FY26

    reduced debt balances by $63 million, including nearly $60 million of reduction via voluntary repurchases

    Debt reduction YTD
    $130 million
    YTD FY26

    Through the first 2 quarters of the year, we have reduced our total debt balances by nearly $130 million.

    Cash and equivalents
    $166.2 million
    Q2 FY26 end

    on hand

    Gross debt balance
    $3.06 billion
    Q2 FY26 end

    consisting of various debt instruments

    Term loans
    $1.66 billion
    Q2 FY26 end

    component of gross debt

    Revolver draws
    $550 million
    Q2 FY26 end

    component of gross debt

    Unsecured notes
    $503 million
    Q2 FY26 end

    component of gross debt

    Convertible notes
    $345 million
    Q2 FY26 end

    component of gross debt

    Finance lease liabilities
    $3 million
    Q2 FY26 end

    component of gross debt

    Undrawn revolver capacity
    $700 million
    Q2 FY26 end

    under our $1.25 billion revolving credit facility

    Net leverage ratio
    4.2x
    Q2 FY26

    Our net leverage ratio on a last quarter annualized basis was 4.2x.

    Equity method investment carrying value
    $135 million
    June 30

    Our investment had a $135 million carrying value at June 30 and is now classified as an equity method investment with a one quarter reporting lag.

    Satellite competition market share
    1%up from 0% in 2025
    2026

    OpenSignal data shows up as 1% here so far in '26, up from 0% at the end of '25.

    Satellite equipment fee
    $300
    current

    The offers are in the market for short periods of time. And then where it's pre-installed and free equipment and a low rate followed by going back to the $300 equipment fee, 150 install and normal rack rates.

    Fixed wireless overlap
    80%similar to a year ago
    current

    a little over 80% right now based on our third-party research and the data that we have access to, so is a little harder to identify that on a quarter-to-quarter basis. But to your question on over the last year, it's moved up a little bit, but I mean, it was effectively at those levels this time last year as well.

    Fixed wireless overlap
    a little bit behind us
    current

    MBI's territory is a little bit behind Cable One's in terms of fixed wireless overlap.

    Direct sales channel cost
    10% to 12%
    current

    direct sales is a more expensive channel that's roughly 10% to 12% of sales today.

    Industry KPIs

    6
    MetricValueDetails
    Total revenue$348.9 millionUSD
    Adjusted EBITDA$173.5 millionUSD
    CAPEX capital program$74 millionUSD
    Total operating expensesdeclined by $3.6 millionUSD
    Cash marketable securities$166.2 millionUSD
    Free cash flow operating cash flow$99.5 millionUSD

    Product announcements

    2
    ProductTypeDetails
    Unified Communications as a Service (UCaaS)launch
    Mobile Servicelaunch

    Deals & partnerships

    2
    Point Broadband, Clearwave FiberMerger of two unconsolidated equity joint ventures, resulting in Cable One exchanging its existing interest in Clearwave Fiber for additional equity in the surviving Point Broadband entity.

    Cable One's investment in the combined entity had a $135 million carrying value at June 30 and is now classified as an equity method investment with a one-quarter reporting lag.

    UndisclosedSale of certain fiber-to-the-tower assets.

    The sale occurred in late Q1 FY26.

    Risks & headwinds

    4
    Elevated churn in residential broadbandQ2 FY26

    17,000 customer losses in Q2 FY26

    Mitigation: Enhancing customer experience, strengthening value proposition, speed upgrades, gradual promotional roll-offs, broader product portfolio, enhanced retention tools.

    Competitive intensity from fiber overbuilds and fixed wirelessOngoing

    Fixed wireless overlap over 80% of footprint

    Mitigation: Tailoring products, marketing strategies, and competitive responses to local market dynamics; commitment to communities and local operating presence; mobile service launch.

    Pressure on SMB broadband businessQ2 FY26

    Discussed not quantified

    Mitigation: Expanded product portfolio with UCaaS, improvements in sales execution and go-to-market approach.

    Noncash impairment charges and fair value adjustmentsQ2 FY26

    Several noncash impairment charges

    Mitigation: Management stated these do not impact cash flow, liquidity, operating strategy, or long-term growth initiatives.

    What to watch in Q3 FY26

    5

    Residential broadband subscriber trends

    Next quarter (Q3 FY26)
    Current17,000 customer losses in Q2 FY26
    TargetImproved net adds or reduced losses, especially given Q3 is seasonally better and Q3 FY25 was weak.

    Why it matters

    Subscriber trends are a key indicator of the effectiveness of new acquisition strategies and retention initiatives in a competitive market.

    The third quarter is a seasonally better quarter and Q2, demonstrated that Q2 is usually the seasonally worst quarter... Q3 of 2025 was definitely not a great quarter for us as we were coming through a lot of the billing system implementation. We did have a heightened churn as a result of that.

    Q&A highlights

    6

    How is Cable One changing its approach to capitalize on low penetration rates, given this has been a long-standing opportunity?

    Jim Holanda highlighted investments in digital and direct sales channels, which now account for 35% of sales, up from less than 10% a year ago. He also noted the launch of Mobile in March FY26 as a competitive response to FWA and a tool for retention, along with ancillary services to increase value.

    “The immediate opportunity, 5.5, 6 months ago when I walked through the door was to really balance and invest in additional sales channels, primarily on the digital and e-commerce side along with the direct sales side. And when you look back over a year ago, those two sales channels accounted for less than 10% of sales. In Q2, they accounted for roughly 35% of sales.”

    asked by Brandon Nispel · answered by James Holanda

    2 min read7 chapters

    Detailed Narrative

    01

    Operational Priorities and Strategy

    CEO Jim Holanda emphasized that the greatest opportunities are operational, within the company's control, and solvable through consistent execution. Improving customer retention is the most important operational priority, requiring focus on enhancing customer experience and strengthening the value proposition through speed upgrades, gradual promotional roll-offs, and a broader product portfolio. The company is also investing in enhanced retention tools and a more balanced acquisition approach.

    02

    Residential Broadband Performance

    The company reported losses of 17,000 residential broadband customers in Q2 FY26 due to elevated churn. Connect activity improved sequentially from Q1 FY26 and in each month of Q2 FY26, driven by investments in diversified acquisition channels. Door-to-door sales more than doubled as a share of quarterly connects, and digital acquisition channels showed encouraging momentum, reflecting efforts to diversify customer acquisition.

    03

    Competitive Landscape and Market Penetration

    Competitive intensity persists, especially in markets with fiber overbuild activity. Management expects a mixed broadband landscape but believes wired broadband will serve the majority of households due to its superior capacity, reliability, and economics. The company tailors products and marketing to local dynamics and remains confident in a long-term penetration opportunity meaningfully above current levels, despite fixed wireless overlap exceeding 80% of their footprint.

    04

    Business Services and Product Expansion

    Business Services results were impacted by the Q1 FY26 sale of fiber-to-the-tower assets. Encouraging momentum was noted in enterprise, wholesale, and carrier offerings, benefiting from long-term contracts and recurring revenue streams. The company launched Unified Communications as a Service (UCaaS) to strengthen its SMB broadband offering, providing a cloud-based communications solution that complements existing connectivity services and aims to deepen customer relationships.

    05

    Network and Technology Investments

    Cable One's network is essentially all gigabit-capable, and the vast majority of customers will be served by multi-gig capable infrastructure by the end of FY26. This progress was achieved through years of disciplined, capital-efficient investment in network architecture and technology platforms, rather than a major new capital program. The company also invests in technology, automation, and AI-enabled tools to improve customer experience and operational efficiency.

    06

    Mobile Service and Capital Allocation

    The Mobile service, officially launched across the footprint in March FY26, shows encouraging early adoption trends and pace of growth. Management views Mobile as an effective way to improve customer acquisition, deepen relationships, and strengthen retention over time⏳, expecting benefits to become more meaningful as penetration grows. Capital allocation priorities remain focused on customer experience, competitive positioning, balance sheet flexibility, and debt reduction.

    07

    Equity Investments and Debt Management

    The company reduced debt by $63 million in Q2 FY26 ($130 million YTD) and holds $166.2 million cash and equivalents. An equity interest in Clearwave Fiber was exchanged for additional equity in Point Broadband following a merger, now classified as an equity method investment with a $135 million carrying value. Management continues to assess monetization opportunities for remaining unconsolidated equity investments to accelerate debt reduction.

    AI-generated summary of the company’s earnings call. Not investment advice.