Core Viewpoint - The article emphasizes the importance of value investing and highlights Cable One (CABO) as a strong candidate for value investors due to its favorable financial metrics and Zacks Rank [1][2][7]. Company Analysis - Cable One (CABO) currently holds a Zacks Rank of 2 (Buy) and has a Value grade of A, indicating strong potential for value investors [4]. - The stock has a P/E ratio of 4.01, significantly lower than the industry average P/E of 7.26, suggesting it may be undervalued [4]. - CABO's Forward P/E has fluctuated between 3.61 and 11.51 over the past year, with a median of 7.87, indicating variability in market perception [4]. - The company has a P/B ratio of 0.64, which is also lower than the industry average P/B of 1.54, further supporting the notion of undervaluation [5]. - Over the past 12 months, CABO's P/B ratio has ranged from 0.40 to 1.27, with a median of 0.88, reflecting its market value relative to book value [5]. - The P/S ratio for CABO is 0.6, compared to the industry's average P/S of 0.73, reinforcing its position as a potentially undervalued stock [6]. - Overall, these metrics suggest that CABO is likely undervalued and presents an impressive value opportunity for investors [7].

Core Viewpoint - Cable One reported a significant GAAP net loss of $438.0 million in Q2 2025, primarily due to a $586.0 million non-cash asset impairment, alongside a 3.4% decline in GAAP revenue year over year to $381.1 million, slightly below analyst estimates [1][5][6] Financial Performance - GAAP revenue for Q2 2025 was $381.1 million, down from $394.5 million in Q2 2024, reflecting a 3.4% year-over-year decrease [2][5] - Adjusted EBITDA was $203.2 million, a 4.3% decline from $212.4 million in Q2 2024, with an Adjusted EBITDA margin of 53.3% [2][6] - The company experienced a net loss of $438.0 million compared to a net income of $38.2 million in Q2 2024, largely due to non-cash asset impairment charges [5][6] Subscriber and Revenue Trends - Residential data revenue was $229.3 million, down 0.5% year over year, with residential data subscribers declining by 3.2% [7] - Business data revenues increased by 1.2% year over year, but primary service unit counts for both residential and business customers remained flat or decreased [7] - Legacy cable television and voice service revenues saw significant declines, with residential video revenue down 15.8% and video subscribers down 19.0% year over year [8] Customer Metrics - Total customer counts fell by 3.2% to 1,060,500 as of June 30, 2025, with most losses in the residential segment [9] - Data penetration decreased to 35.9% from 37.8% year over year, indicating increased competition in the broadband market [10] Cost Management and Investments - The company managed to maintain Adjusted EBITDA margins close to previous levels despite a 1.4% increase in selling, general, and administrative costs [11] - Capital expenditures were reduced by approximately 4.5% as part of cost management efforts [11] Product Innovation and Strategy - The company is focusing on innovative products such as FlexConnect and SecurePlus, which have shown early positive results in customer adoption [12][13] - Management emphasized the importance of simplified pricing and targeted marketing campaigns to improve customer response and operational performance [13][14] Future Outlook - No quantitative forward guidance was provided for future revenue, profitability, or customer figures [15] - The company has suspended its dividend to prioritize debt reduction and investment in growth initiatives, indicating a focus on liquidity preservation [16]

Core Insights - Cable One (CABO) reported a revenue of $381.07 million for the quarter ended June 2025, reflecting a year-over-year decline of 3.4% and an EPS of $3.23, down from $8.16 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $380.78 million by 0.08%, while the EPS fell short of the consensus estimate of $8.23 by 60.75% [1] Revenue Breakdown - Residential Video revenue was $48.16 million, below the average estimate of $49.29 million, marking a year-over-year decrease of 15.8% [4] - Other revenues totaled $22.95 million, slightly below the average estimate of $24 million, representing a year-over-year decline of 1.6% [4] - Residential Voice revenue was reported at $6.73 million, compared to the estimated $6.93 million, indicating a year-over-year drop of 17.9% [4] - Residential Data revenue reached $229.34 million, surpassing the average estimate of $226.97 million, with a minimal year-over-year change of -0.5% [4] Stock Performance - Over the past month, Cable One shares have returned -2.6%, contrasting with the Zacks S&P 500 composite's increase of +2.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Company Performance - Cable One reported quarterly earnings of $3.23 per share, missing the Zacks Consensus Estimate of $8.23 per share, and down from $8.16 per share a year ago, representing an earnings surprise of -60.75% [1] - The company posted revenues of $381.07 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.08%, but down from $394.46 million year-over-year [2] - Over the last four quarters, Cable One has surpassed consensus EPS estimates just once and topped consensus revenue estimates two times [2] Stock Performance - Cable One shares have lost about 63.4% since the beginning of the year, while the S&P 500 has gained 8.2% [3] - The current status of estimate revisions translates into a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the coming quarter is $8.67 on revenues of $380.86 million, and for the current fiscal year, it is $30.00 on revenues of $1.52 billion [7] - The outlook for the industry can materially impact the stock's performance, with the Cable Television industry currently in the bottom 9% of over 250 Zacks industries [8]

[PART I: FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%3A%20FINANCIAL%20INFORMATION) This section provides Cable One, Inc.'s unaudited condensed consolidated financial statements and management's discussion and analysis [Item 1. Condensed Consolidated Financial Statements](index=5&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) This section presents Cable One, Inc.'s unaudited condensed consolidated financial statements, highlighting a significant net loss due to asset impairment charges [Condensed Consolidated Balance Sheets](index=5&type=section&id=CABLE%20ONE%2C%20INC.%20CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) This section presents the company's balance sheets, showing a decrease in total assets and stockholders' equity, and a significant increase in current long-term debt **Condensed Consolidated Balance Sheets (in thousands)** | Metric | June 30, 2025 | December 31, 2024 | |:---|:---|:---| | Total Assets | $5,773,584 | $6,525,895 | | Total Liabilities | $4,436,190 | $4,729,863 | | Total Stockholders' Equity | $1,337,394 | $1,796,032 | | Current portion of long-term debt | $593,573 | $18,712 | - Total assets decreased by **$752.3 million**, and total stockholders' equity decreased by **$458.6 million** from December 31, 2024, to June 30, 2025[15](index=15&type=chunk) - The current portion of long-term debt significantly increased from **$18.7 million** at December 31, 2024, to **$593.6 million** at June 30, 2025[15](index=15&type=chunk) [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=6&type=section&id=CABLE%20ONE%2C%20INC.%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20AND%20COMPREHENSIVE%20INCOME%20%28LOSS%29) This section details the company's operating results, reporting a significant net loss for the quarter and six months, primarily due to substantial asset impairment charges **Condensed Consolidated Statements of Operations (in thousands, except per share data)** | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | |:---|:---|:---|:---|:---| | Revenues | $381,072 | $394,461 | $761,673 | $798,774 | | Total Costs and Expenses | $870,395 | $284,324 | $1,155,321 | $568,775 | | Income (loss) from operations | $(489,323) | $110,137 | $(393,648) | $229,999 | | Net income (loss) | $(437,976) | $38,152 | $(435,369) | $75,502 | | Basic Net Income (Loss) per Common Share | $(77.70) | $6.79 | $(77.26) | $13.44 | | Diluted Net Income (Loss) per Common Share | $(77.70) | $6.58 | $(77.26) | $13.04 | - The company reported a net loss of **$438.0 million** for the three months ended June 30, 2025, compared to a net income of $38.2 million in the prior year, primarily due to **$586.0 million** in asset impairments[16](index=16&type=chunk) - Revenues decreased by **3.4%** for the three months ended June 30, 2025, and by **4.6%** for the six months ended June 30, 2025, compared to the respective prior year periods[16](index=16&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=CABLE%20ONE%2C%20INC.%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20STOCKHOLDERS%27%20EQUITY) This section outlines changes in stockholders' equity, primarily reflecting a decrease due to net loss and unrealized losses on cash flow hedges **Changes in Stockholders' Equity (in thousands)** | Metric | Balance at Dec 31, 2024 | Net Loss (H1 2025) | Unrealized Gain (Loss) on Hedges (H1 2025) | Dividends Paid (H1 2025) | Balance at June 30, 2025 | |:---|:---|:---|:---|:---|:---|\ | Total Stockholders' Equity | $1,796,032 | $(435,369) | $(25,094) | $(17,232) | $1,337,394 | - Total stockholders' equity decreased by **$458.6 million** from December 31, 2024, to June 30, 2025, primarily due to the net loss and unrealized losses on cash flow hedges[21](index=21&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=CABLE%20ONE%2C%20INC.%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) This section presents the company's cash flow activities, showing a decrease in operating cash flow and changes in investing and financing activities **Condensed Consolidated Statements of Cash Flows (in thousands)** | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | $ Change | % Change | |:---|:---|:---|:---|:---|\ | Net cash provided by operating activities | $261,274 | $320,298 | $(59,024) | (18.4)% | | Net cash used in investing activities | $(130,593) | $(162,738) | $32,145 | (19.8)% | | Net cash used in financing activities | $(131,436) | $(146,331) | $14,895 | (10.2)% | | Change in cash and cash equivalents | $(755) | $11,229 | $(11,984) | (106.7)% | | Cash and cash equivalents, end of period | $152,876 | $201,518 | $(48,642) | (24.1)% | - Net cash provided by operating activities decreased by **18.4%** year-over-year, primarily due to unfavorable changes in working capital and a decrease in Adjusted EBITDA[24](index=24&type=chunk)[170](index=170&type=chunk) - Net cash used in investing activities decreased by **19.8%** due to the absence of a prior-year equity investment, proceeds from an equity investment sale, and reduced capital expenditures[24](index=24&type=chunk)[171](index=171&type=chunk) - Net cash used in financing activities decreased by **10.2%**, mainly attributable to the suspension of the company's dividend, partially offset by higher debt repayments[24](index=24&type=chunk)[172](index=172&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=10&type=section&id=NOTES%20TO%20THE%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section provides detailed notes supporting the condensed consolidated financial statements, offering further context on various accounts and transactions [Note 1. Description of Business and Basis of Presentation](index=10&type=section&id=1.%20DESCRIPTION%20OF%20BUSINESS%20AND%20BASIS%20OF%20PRESENTATION) This note describes Cable One's business as a broadband provider in 24 U.S. states and its single reportable segment structure - Cable One, Inc. is a fully integrated provider of data, video, and voice services to residential and business customers in 24 Western, Midwestern, and Southern U.S. states[27](index=27&type=chunk) - As of June 30, 2025, the company served approximately **1.1 million** residential and business customers, including **1,031,000 data**, **102,000 video**, and **99,000 voice** subscribers[27](index=27&type=chunk) - The company operates as a single reportable segment, with the chief operating decision maker reviewing performance and allocating resources on a consolidated basis[32](index=32&type=chunk) - The company adopted ASU 2023-09 (Income Taxes) in 2025 and ASU 2023-07 (Segment Reporting) retrospectively in Q4 2024[34](index=34&type=chunk)[35](index=35&type=chunk) [Note 2. Revenues](index=11&type=section&id=2.%20REVENUES) This note details revenues by product line, showing overall declines driven by residential video and voice, despite a modest increase in business data **Revenues by Product Line (in thousands)** | Product Line | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | |:---|:---|:---|:---|:---|\ | Residential Data | $229,336 | $230,404 | $454,457 | $466,223 | | Residential Video | $48,158 | $57,178 | $98,962 | $117,536 | | Residential Voice | $6,733 | $8,203 | $13,777 | $16,763 | | Business Data | $57,385 | $56,687 | $114,678 | $113,328 | | Business Other | $16,515 | $18,663 | $33,399 | $37,849 | | Other | $22,945 | $23,326 | $46,400 | $47,075 | | **Total Revenues** | **$381,072** | **$394,461** | **$761,673** | **$798,774** | - Total revenues decreased by **3.4%** for the three months and **4.6%** for the six months ended June 30, 2025, compared to the prior year periods[37](index=37&type=chunk) - Residential video and voice revenues experienced significant declines, while business data revenues showed a modest increase[37](index=37&type=chunk) [Note 3. Segment Reporting](index=12&type=section&id=3.%20SEGMENT%20REPORTING) This note confirms the company operates as a single reportable segment, with the CEO reviewing consolidated net income for performance and resource allocation - The company operates as a single reportable segment, with the CEO (CODM) reviewing consolidated net income (loss) for performance monitoring and resource allocation[42](index=42&type=chunk) **Significant Expense Categories (in thousands)** | Expense Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | |:---|:---|:---|:---|:---|\ | Direct product costs | $(46,473) | $(51,349) | $(94,910) | $(104,270) | | Labor costs | $(61,382) | $(63,580) | $(122,487) | $(127,141) | | Other items | $(711,193) | $(241,380) | $(979,645) | $(491,861) | [Note 4. Operating Assets and Liabilities](index=12&type=section&id=4.%20OPERATING%20ASSETS%20AND%20LIABILITIES) This note provides details on accounts receivable, prepaid assets, and other noncurrent assets, highlighting changes in their balances **Accounts Receivable, Net (in thousands)** | Metric | June 30, 2025 | December 31, 2024 | |:---|:---|:---|\ | Trade receivables | $46,432 | $43,352 | | Other receivables | $13,982 | $17,310 | | Less: Allowance for credit losses | $(2,888) | $(2,920) | | **Total accounts receivable, net** | **$57,526** | **$57,742** | **Prepaid and Other Current Assets (in thousands)** | Metric | June 30, 2025 | December 31, 2024 | |:---|:---|:---|\ | Prepaid repairs and maintenance | $14,934 | $4,801 | | Interest rate swap asset | $14,170 | $17,659 | | **Total prepaid and other current assets** | **$76,976** | **$67,862** | **Other Noncurrent Assets (in thousands)** | Metric | June 30, 2025 | December 31, 2024 | |:---|:---|:---|\ | Interest rate swap asset | $16,825 | $46,200 | | New MBI Net Option | $64,180 | $84,120 | | **Total other noncurrent assets** | **$129,995** | **$178,429** | - Prepaid and other current assets increased by **$9.1 million**, primarily due to higher prepaid repairs and maintenance[45](index=45&type=chunk) - Other noncurrent assets decreased by **$48.4 million**, mainly due to a reduction in the New MBI Net Option value and interest rate swap asset[46](index=46&type=chunk) [Note 5. Equity Investments](index=15&type=section&id=5.%20EQUITY%20INVESTMENTS) This note details equity investments, showing a decrease in total value, a gain from an equity investment sale, and significant equity method losses **Equity Investments (in thousands)** | Investment Type | June 30, 2025 Carrying Value | December 31, 2024 Carrying Value | |:---|:---|:---|\ | Total cost method investments | $116,253 | $123,412 | | Total equity method investments | $614,460 | $692,400 | | **Total equity investments** | **$730,713** | **$815,812** | - Total equity investments decreased by **$85.1 million** from December 31, 2024, to June 30, 2025[53](index=53&type=chunk) - The company divested an equity investment in March 2025 for **$10.7 million** cash proceeds, recognizing a **$3.2 million** gain[48](index=48&type=chunk)[55](index=55&type=chunk) - The MBI agreement was amended in December 2024, reinstating the Call Option, amending the Put Option, requiring a **$250 million** upfront cash payment, and providing for **$100 million** of new MBI debt[50](index=50&type=chunk) - Equity method investment loss, net, was **$77.9 million** for the six months ended June 30, 2025, primarily from Clearwave Fiber (**$77.5 million** loss, including **$28.0 million** impairment) and MBI (**$3.3 million** loss), partially offset by Nextlink (**$2.9 million** income)[55](index=55&type=chunk) [Note 6. Property, Plant and Equipment](index=17&type=section&id=6.%20PROPERTY%2C%20PLANT%20AND%20EQUIPMENT) This note outlines the net property, plant, and equipment, which remained relatively stable, with a slight increase in depreciation and amortization expense **Property, Plant and Equipment, Net (in thousands)** | Metric | June 30, 2025 | December 31, 2024 | |:---|:---|:---|\ | Property, plant and equipment, gross | $3,748,663 | $3,719,943 | | Less: Accumulated depreciation and amortization | $(1,968,494) | $(1,929,988) | | **Property, plant and equipment, net** | **$1,780,169** | **$1,789,955** | - Net property, plant, and equipment remained relatively stable, decreasing slightly by **$9.8 million** from December 31, 2024, to June 30, 2025[56](index=56&type=chunk) - Depreciation and amortization expense for property, plant, and equipment was **$140.5 million** for the six months ended June 30, 2025, a slight increase from $137.9 million in the prior year[56](index=56&type=chunk) [Note 7. Goodwill and Intangible Assets](index=18&type=section&id=7.%20GOODWILL%20AND%20INTANGIBLE%20ASSETS) This note details significant non-cash impairment charges for indefinite-lived intangible assets and goodwill, triggered by a decline in the company's stock price - During Q2 2025, a decline in the company's common stock price triggered interim impairment assessments for indefinite-lived intangible assets and goodwill[57](index=57&type=chunk) - The company recognized non-cash impairment charges totaling **$586.0 million**, consisting of **$497.2 million** for franchise agreements and **$88.8 million** for goodwill[58](index=58&type=chunk) **Goodwill and Intangible Assets (in thousands)** | Metric | June 30, 2025 | December 31, 2024 | |:---|:---|:---|\ | Goodwill | $840,826 | $929,609 | | Indefinite-Lived Intangible Assets (Franchise agreements) | $1,605,000 | $2,102,233 | | Total intangible assets, net | $2,004,503 | $2,532,855 | - Goodwill decreased by **$88.8 million** and franchise agreements decreased by **$497.2 million** due to impairment charges[59](index=59&type=chunk) [Note 8. Debt](index=19&type=section&id=8.%20DEBT) This note provides details on the company's debt, including a decrease in total debt, a significant increase in the current portion, and compliance with all debt covenants **Long-Term Debt (in thousands)** | Metric | June 30, 2025 | December 31, 2024 | |:---|:---|:---|\ | Senior Credit Facilities | $1,943,808 | $2,042,221 | | Senior Notes | $633,107 | $650,000 | | Convertible Notes | $920,000 | $920,000 | | Total debt | $3,500,023 | $3,616,664 | | Current portion of long-term debt | $(593,573) | $(18,712) | | **Total long-term debt** | **$2,883,909** | **$3,571,536** | - Total debt decreased by **$116.6 million** from December 31, 2024, to June 30, 2025[62](index=62&type=chunk) - The current portion of long-term debt increased significantly to **$593.6 million**, primarily due to the 2026 Notes maturing in March 2026[62](index=62&type=chunk) - The company repaid **$85.0 million** of Revolving Credit Facility borrowings and voluntarily prepaid **$4.4 million** of Term Loan B-4 during the six months ended June 30, 2025[64](index=64&type=chunk) - A **$3.9 million** gain on extinguishments of debt was recognized from repurchasing **$16.9 million** of Senior Notes for **$13.0 million**[68](index=68&type=chunk) - The company was in compliance with all debt covenants as of June 30, 2025[81](index=81&type=chunk) [Note 9. Interest Rate Swaps](index=23&type=section&id=9.%20INTEREST%20RATE%20SWAPS) This note describes the company's interest rate swap agreements used to manage variable rate debt, noting a decrease in the swap asset and an unrealized loss on hedges - The company uses two interest rate swap agreements with a total notional amount of **$1.2 billion** to manage the risk of fluctuations in variable rate SOFR debt[83](index=83&type=chunk) **Interest Rate Swap Asset (in thousands)** | Metric | June 30, 2025 | December 31, 2024 | |:---|:---|:---|\ | Current portion | $14,170 | $17,659 | | Noncurrent portion | $16,825 | $46,200 | | **Total interest rate swap asset** | **$30,995** | **$63,859** | - The total interest rate swap asset decreased by **$32.9 million** from December 31, 2024, to June 30, 2025[83](index=83&type=chunk) - An unrealized loss on cash flow hedges, net of tax, of **$25.1 million** was recognized for the six months ended June 30, 2025, compared to a $17.6 million gain in the prior year, due to a decline in forward interest rates[84](index=84&type=chunk)[155](index=155&type=chunk) [Note 10. Fair Value Measurements](index=24&type=section&id=10.%20FAIR%20VALUE%20MEASUREMENTS) This note presents the fair value of financial assets and liabilities, including money market investments, interest rate swaps, and various debt instruments **Fair Value of Financial Assets and Liabilities (in thousands, June 30, 2025)** | Asset/Liability | Fair Value Hierarchy | Carrying Amount | Fair Value | |:---|:---|:---|:---|\ | Money market investments | Level 1 | $68,137 | $68,137 | | Interest rate swap asset | Level 2 | $30,995 | $30,995 | | New MBI Net Option | Level 3 | $64,180 | $64,180 | | Term loans | Level 2 | $1,715,808 | $1,661,099 | | Revolving Credit Facility | Level 2 | $228,000 | $223,440 | | Senior Notes | Level 2 | $633,107 | $497,939 | | Convertible Notes | Level 2 | $920,000 | $810,808 | - The fair value of the New MBI Net Option (Level 3) decreased to **$64.2 million** at June 30, 2025, from $84.1 million at December 31, 2024[86](index=86&type=chunk) - Fair values of term loans, Revolving Credit Facility, Senior Notes, and Convertible Notes are estimated based on market prices for similar instruments (Level 2)[86](index=86&type=chunk) [Note 11. Stockholders' Equity](index=25&type=section&id=11.%20STOCKHOLDERS%27%20EQUITY) This note details stockholders' equity, including remaining share repurchase authorization and the practice of withholding shares for tax purposes - The company had **$143.1 million** of remaining share repurchase authorization under its Share Repurchase Program as of June 30, 2025[91](index=91&type=chunk) - No common stock was repurchased under the Share Repurchase Program during the six months ended June 30, 2025, or 2024[91](index=91&type=chunk) - Shares are withheld from employees upon vesting of equity awards to cover statutory minimum withholding taxes[92](index=92&type=chunk) [Note 12. Equity-Based Compensation](index=26&type=section&id=12.%20EQUITY-BASED%20COMPENSATION) This note outlines equity-based compensation expense, which increased significantly, primarily due to Restricted Stock awards and accelerated expensing provisions **Equity-Based Compensation Expense (in thousands)** | Award Type | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | $ Change | % Change | |:---|:---|:---|:---|:---|\ | Restricted Stock | $21,106 | $14,169 | $6,937 | 49.0% | | SARs | $253 | $407 | $(154) | (37.8)% | | **Total** | **$21,359** | **$14,576** | **$6,783** | **46.5%** | - Total equity-based compensation expense increased by **46.5%** for the six months ended June 30, 2025, primarily driven by Restricted Stock awards[95](index=95&type=chunk) - New RSU grants beginning in 2025 contain retirement eligibility provisions, resulting in accelerated expensing for eligible associates[94](index=94&type=chunk) - Unrecognized compensation expense related to Restricted Stock was **$44.0 million** as of June 30, 2025, expected to be recognized over a weighted average period of 1.5 years[96](index=96&type=chunk) [Note 13. Income Taxes](index=27&type=section&id=13.%20INCOME%20TAXES) This note presents the income tax provision (benefit) and effective tax rate, showing a significant tax benefit due to asset impairments **Income Tax Provision (Benefit) and Effective Tax Rate** | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | |:---|:---|:---|:---|:---|\ | Income tax (provision) benefit (in thousands) | $117,575 | $(14,069) | $117,372 | $(31,646) | | Effective tax rate | (22.0)% | 18.9% | (24.7)% | 20.9% | - The company reported an income tax benefit of **$117.4 million** for the six months ended June 30, 2025, compared to a provision of $31.6 million in the prior year[99](index=99&type=chunk) - The effective tax rate decreased significantly to **(24.7)%** for the six months ended June 30, 2025, from 20.9% in the prior year, primarily due to the asset impairments recognized in Q2 2025[99](index=99&type=chunk) [Note 14. Other Income and Expense](index=27&type=section&id=14.%20OTHER%20INCOME%20AND%20EXPENSE) This note details other income and expense, primarily driven by a non-cash loss on the New MBI Net Option fair value adjustment, partially offset by gains **Other Income (Expense), Net (in thousands)** | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | |:---|:---|:---|:---|:---|\ | Old MBI Net Option fair value adjustment | $0 | $(8,410) | $0 | $(15,610) | | New MBI Net Option fair value adjustment | $(15,270) | $0 | $(19,940) | $0 | | C-band spectrum relocation funding | $0 | $7,669 | $0 | $7,669 | | Gain on sale of equity investment | $0 | $0 | $3,199 | $0 | | Gain on extinguishments of debt | $3,856 | $0 | $3,856 | $0 | | **Other income (expense), net** | **$(11,372)** | **$(641)** | **$(12,784)** | **$(7,756)** | - Other expense, net, was **$12.8 million** for the six months ended June 30, 2025, primarily due to a **$19.9 million** non-cash loss on fair value adjustment for the New MBI Net Option[100](index=100&type=chunk) - This was partially offset by a **$3.9 million** gain on extinguishments of debt and a **$3.2 million** gain on the sale of an equity investment[100](index=100&type=chunk) [Note 15. Net Income (Loss) Per Common Share](index=28&type=section&id=15.%20NET%20INCOME%20%28LOSS%29%20PER%20COMMON%20SHARE) This note reports a significant basic and diluted net loss per common share for the six months, a decrease from prior year net income **Net Income (Loss) Per Common Share** | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | |:---|:---|:---|:---|:---|\ | Basic | $(77.70) | $6.79 | $(77.26) | $13.44 | | Diluted | $(77.70) | $6.58 | $(77.26) | $13.04 | - The company reported a basic and diluted net loss per common share of **$(77.26)** for the six months ended June 30, 2025, a significant decrease from net income per share in the prior year[103](index=103&type=chunk) - An immaterial error was identified in the diluted EPS calculation for the year ended December 31, 2024, which should have been $2.57 instead of $3.43[103](index=103&type=chunk) [Note 16. Commitments and Contingencies](index=29&type=section&id=16.%20COMMITMENTS%20AND%20CONTINGENCIES) This note states no material changes to contractual obligations, and no existing legal claims are expected to materially affect financial condition - No material changes to contractual obligations were reported since the 2024 Form 10-K, with the exception of debt payments[106](index=106&type=chunk) - The company is subject to various legal proceedings and extensive industry regulations, but no existing claims are expected to have a material adverse effect on its financial condition or results of operations[108](index=108&type=chunk)[109](index=109&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, focusing on data services growth, significant net loss from impairments, and strategic broadband investments [Overview](index=30&type=section&id=Overview) This overview describes Cable One as a broadband provider in non-metropolitan U.S. markets, focusing on high-margin data services and infrastructure investments - Cable One is a leading broadband communications provider serving non-metropolitan, secondary, and tertiary markets in 24 U.S. states[114](index=114&type=chunk) - As of June 30, 2025, the company served approximately **1.1 million** residential and business customers out of **2.9 million** passings[114](index=114&type=chunk) - The company's strategy focuses on growing higher-margin residential data (**59.7%** of H1 2025 revenues) and business data (**15.1%** of H1 2025 revenues) services, while de-emphasizing residential video (**13.0%** of H1 2025 revenues) and residential voice[114](index=114&type=chunk)[115](index=115&type=chunk) - Significant investments are being made in infrastructure, including increasing fiber density, expanding footprint, and deploying DOCSIS 3.1 and 4.0 to enhance network capacity and speeds[117](index=117&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) This section analyzes the company's operating results, highlighting key performance measures, subscriber trends, and revenue changes [Key Performance Measures Summary](index=32&type=section&id=Key%20Performance%20Measures%20Summary) This summary presents key financial metrics, including a net loss due to asset impairments and a decrease in Adjusted EBITDA **Key Performance Measures (in thousands)** | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | $ Change | % Change | |:---|:---|:---|:---|:---|\ | Revenues | $381,072 | $394,461 | $(13,389) | (3.4)% | | Net income (loss) | $(437,976) | $38,152 | $(476,128) | NM | | Adjusted EBITDA | $203,214 | $212,372 | $(9,158) | (4.3)% | | Capital expenditures | $68,374 | $71,592 | $(3,218) | (4.5)% | | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | $ Change | % Change | |:---|:---|:---|:---|:---|\ | Revenues | $761,673 | $798,774 | $(37,101) | (4.6)% | | Net income (loss) | $(435,369) | $75,502 | $(510,871) | NM | | Adjusted EBITDA | $405,927 | $429,425 | $(23,498) | (5.5)% | | Capital expenditures | $139,504 | $137,479 | $2,025 | 1.5% | - The company reported a net loss for both the three and six months ended June 30, 2025, primarily due to **$586.0 million** in non-cash asset impairment charges[122](index=122&type=chunk) - Adjusted EBITDA decreased by **4.3%** for the three months and **5.5%** for the six months ended June 30, 2025[122](index=122&type=chunk) [Primary Service Units ("PSUs") and Customer Counts](index=33&type=section&id=Primary%20Service%20Units%20%28%22PSUs%22%29%20and%20Customer%20Counts) This section details subscriber trends, showing a decrease in total PSUs driven by residential services, while business customer relationships and passings increased **Primary Service Units (PSUs) and Customer Counts (in thousands)** | Metric | As of June 30, 2025 | As of June 30, 2024 | Change | % Change | |:---|:---|:---|:---|:---|\ | Residential data PSUs | 932.0 | 963.2 | (31.2) | (3.2)% | | Residential video PSUs | 96.2 | 118.8 | (22.5) | (19.0)% | | Residential voice PSUs | 62.1 | 72.7 | (10.6) | (14.6)% | | Total residential PSUs | 1,090.4 | 1,154.7 | (64.3) | (5.6)% | | Business data PSUs | 99.3 | 99.6 | (0.3) | (0.3)% | | Total PSUs | 1,233.0 | 1,300.4 | (67.4) | (5.2)% | | Residential customer relationships | 955.8 | 992.9 | (37.1) | (3.7)% | | Business customer relationships | 104.7 | 102.8 | 1.8 | 1.8% | | Passings | 2,870.5 | 2,809.2 | 61.4 | 2.2% | - Total PSUs decreased by **5.2%** year-over-year, driven by declines in residential data, video, and voice services[123](index=123&type=chunk) - Business customer relationships increased by **1.8%**, while passings grew by **2.2%**[123](index=123&type=chunk) [Use of Nonfinancial Metrics and ARPU](index=33&type=section&id=Use%20of%20Nonfinancial%20Metrics%20and%20ARPU) This section explains the use of nonfinancial metrics and ARPU to monitor operating performance, noting increases in residential data and video ARPU - The company uses nonfinancial metrics such as passings, PSUs, and customer relationships, along with Average Revenue Per Unit (ARPU), to measure and monitor operating performance[124](index=124&type=chunk)[127](index=127&type=chunk) **ARPU by Service Offering (Three Months Ended June 30)** | Service | 2025 | 2024 | $ Change | % Change | |:---|:---|:---|:---|:---|\ | Residential data | $81.23 | $79.36 | $1.87 | 2.4% | | Residential video | $162.52 | $155.95 | $6.57 | 4.2% | | Residential voice | $35.41 | $36.75 | $(1.34) | (3.6)% | | Business services | $234.93 | $244.52 | $(9.59) | (3.9)% | - Residential data ARPU increased by **2.4%**, and residential video ARPU increased by **4.2%** for the three months ended June 30, 2025[129](index=129&type=chunk) [Comparison of Three Months Ended June 30, 2025 to Three Months Ended June 30, 2024](index=34&type=section&id=Comparison%20of%20Three%20Months%20Ended%20June%2030%2C%202025%20to%20Three%20Months%20Ended%20June%2030%2C%202024) This comparison highlights revenue declines, increased SG&A, and a significant net loss primarily due to **$586.0 million** in asset impairments **Revenue Changes (Three Months Ended June 30, 2025 vs 2024)** | Product Line | $ Change (in thousands) | % Change | |:---|:---|:---|\ | Residential data | $(1,068) | (0.5)% | | Residential video | $(9,020) | (15.8)% | | Residential voice | $(1,470) | (17.9)% | | Business data | $698 | 1.2% | | Business other | $(2,148) | (11.5)% | | **Total revenues** | **$(13,389)** | **(3.4)%** | - Operating expenses (excluding depreciation and amortization) decreased by **$3.5 million (3.3%)** due to lower programming and franchise costs[133](index=133&type=chunk) - Selling, general and administrative expenses increased by **$1.2 million (1.4%)**, primarily due to a **$5.0 million** increase in billing system conversion costs[134](index=134&type=chunk) - Asset impairments totaled **$586.0 million**, consisting of non-cash impairments related to indefinite-lived franchise agreements (**$497.2 million**) and goodwill (**$88.8 million**)[136](index=136&type=chunk) - Net loss was **$438.0 million**, compared to net income of $38.2 million in the prior year, driven largely by the asset impairments[141](index=141&type=chunk) [Comparison of Six Months Ended June 30, 2025 to Six Months Ended June 30, 2024](index=36&type=section&id=Comparison%20of%20Six%20Months%20Ended%20June%2030%2C%202025%20to%20Six%20Months%20Ended%20June%2030%2C%202024) This comparison shows overall revenue declines, increased SG&A, and a substantial net loss primarily driven by **$586.0 million** in non-cash asset impairments **Revenue Changes (Six Months Ended June 30, 2025 vs 2024)** | Product Line | $ Change (in thousands) | % Change | |:---|:---|:---|\ | Residential data | $(11,766) | (2.5)% | | Residential video | $(18,574) | (15.8)% | | Residential voice | $(2,986) | (17.8)% | | Business data | $1,350 | 1.2% | | Business other | $(4,450) | (11.8)% | | **Total revenues** | **$(37,101)** | **(4.6)%** | - Operating expenses (excluding depreciation and amortization) decreased by **$10.2 million (4.8%)** due to lower programming and franchise costs[146](index=146&type=chunk) - Selling, general and administrative expenses increased by **$6.3 million (3.4%)**, primarily due to an **$8.6 million** increase in billing system conversion costs[147](index=147&type=chunk) - Net loss was **$435.4 million**, compared to net income of $75.5 million in the prior year, driven largely by the **$586.0 million** in non-cash asset impairments[149](index=149&type=chunk)[154](index=154&type=chunk) [Use of Adjusted EBITDA](index=38&type=section&id=Use%20of%20Adjusted%20EBITDA) This section defines Adjusted EBITDA as a non-GAAP measure for performance assessment and debt covenant compliance, noting its decrease for the periods - Adjusted EBITDA is a non-GAAP financial measure used to assess performance, determine compliance with debt covenants, and in incentive compensation programs[157](index=157&type=chunk)[158](index=158&type=chunk) **Adjusted EBITDA (in thousands)** | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | $ Change | % Change | |:---|:---|:---|:---|:---|\ | Adjusted EBITDA | $203,214 | $212,372 | $(9,158) | (4.3)% | | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | $ Change | % Change | |:---|:---|:---|:---|:---|\ | Adjusted EBITDA | $405,927 | $429,425 | $(23,498) | (5.5)% | - Adjusted EBITDA decreased by **4.3%** for the three months and **5.5%** for the six months ended June 30, 2025[160](index=160&type=chunk)[162](index=162&type=chunk) [Financial Condition: Liquidity and Capital Resources](index=40&type=section&id=Financial%20Condition%3A%20Liquidity%20and%20Capital%20Resources) This section assesses the company's liquidity and capital resources, including cash balances, credit facilities, and strategic financial decisions like dividend suspension [Liquidity](index=40&type=section&id=Liquidity) This section confirms adequate liquidity from cash, credit facilities, and operating cash flows, noting the suspension of quarterly cash dividends to support debt repayment - The company believes existing cash balances, Senior Credit Facilities, and operating cash flows will provide adequate liquidity for ongoing operations, capital expenditures, potential acquisitions, debt repayment, and share repurchases over the next 12 months[164](index=164&type=chunk)[168](index=168&type=chunk) - The estimated Call Price or Put Price for the remaining equity interests in MBI is between **$460 million** and **$510 million**, with MBI's total net indebtedness estimated at **$845 million** to **$895 million**[167](index=167&type=chunk) - The company suspended its quarterly cash dividend in Q2 2025, saving approximately **$67 million** annually, to reallocate funds to debt repayment, refinancing support, and organic growth initiatives[174](index=174&type=chunk) - The 'One Big Beautiful Bill Act' (OBBBA), enacted July 4, 2025, is anticipated to reduce current income tax liabilities, with its impact on future financial results currently being assessed[175](index=175&type=chunk) [Financing Activity](index=41&type=section&id=Financing%20Activity) This section details financing activities, including debt repayments, available borrowing capacity, a gain on debt extinguishment, and the use of interest rate swaps - The company repaid **$85.0 million** of Revolving Credit Facility borrowings and voluntarily prepaid **$4.4 million** of Term Loan B-4 during the six months ended June 30, 2025[178](index=178&type=chunk) - As of June 30, 2025, **$228.0 million** was outstanding under the Revolving Credit Facility, with **$1.02 billion** of available borrowing capacity[178](index=178&type=chunk) - A **$3.9 million** gain was recognized from repurchasing **$16.9 million** of Senior Notes for **$13.0 million** during the three months ended June 30, 2025[180](index=180&type=chunk) - The company utilizes two interest rate swap agreements with a total notional amount of **$1.2 billion** to convert variable rate SOFR indebtedness to a fixed rate, recognizing **$10.3 million** in income from these swaps during the six months ended June 30, 2025[185](index=185&type=chunk) - The company was in compliance with all debt covenants as of June 30, 2025[184](index=184&type=chunk) [Capital Expenditures](index=44&type=section&id=Capital%20Expenditures) This section outlines capital expenditures by category, showing a slight increase in total spending, primarily funded by cash on hand and operating cash flows **Capital Expenditures by Category (in thousands)** | Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | |:---|:---|:---|:---|:---|\ | Customer premise equipment | $11,104 | $15,411 | $27,673 | $19,040 | | Commercial | $5,499 | $2,955 | $10,676 | $11,190 | | Scalable infrastructure | $7,211 | $9,472 | $16,393 | $18,006 | | Line extensions | $17,366 | $18,372 | $31,887 | $33,634 | | Upgrade/rebuild | $4,261 | $7,288 | $7,660 | $15,519 | | Support capital | $22,933 | $18,094 | $45,215 | $40,090 | | **Total** | **$68,374** | **$71,592** | **$139,504** | **$137,479** | - Total capital expenditures for the six months ended June 30, 2025, increased by **1.5%** to **$139.5 million**[188](index=188&type=chunk) - Capital expenditures are primarily funded by cash on hand and cash flows from operating activities[188](index=188&type=chunk) [Contractual Obligations and Contingent Commitments](index=44&type=section&id=Contractual%20Obligations%20and%20Contingent%20Commitments) This section reports no material changes to contractual obligations and contingent commitments since the 2024 Form 10-K, except for debt payments - No material changes to contractual obligations and contingent commitments were reported since the 2024 Form 10-K, except for debt payments[189](index=189&type=chunk) [Off-Balance Sheet Arrangements](index=44&type=section&id=Off-Balance%20Sheet%20Arrangements) This section confirms the company has no off-balance sheet arrangements or financing arrangements with special-purpose entities - The company does not have any off-balance sheet arrangements or financing arrangements with special-purpose entities[190](index=190&type=chunk) [Critical Accounting Policies and Estimates](index=44&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section discusses critical accounting policies and estimates, focusing on impairment assessments for indefinite-lived intangible assets and goodwill [Impairment Assessments](index=45&type=section&id=Impairment%20Assessments) This section details the **$586.0 million** non-cash impairment charges for franchise agreements and goodwill, triggered by a decline in the company's stock price - A triggering event occurred in Q2 2025, due to a decline in the company's common stock price, requiring interim impairment assessments of indefinite-lived intangible assets and goodwill[193](index=193&type=chunk) - A non-cash impairment charge of **$497.2 million** was recognized for indefinite-lived franchise agreements, driven by reduced estimated future cash flows and an increased discount rate[195](index=195&type=chunk) - A non-cash goodwill impairment charge of **$88.8 million** was recognized, as the implied fair value of goodwill fell below its carrying value[196](index=196&type=chunk) - Future impairments may occur if estimated future cash flows decline, discount rates increase, or the stock price significantly decreases[197](index=197&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details market risk exposure, primarily interest rate fluctuations affecting fixed-rate debt, with no material changes reported - No material changes to the market risk disclosures were reported from the 2024 Form 10-K[199](index=199&type=chunk) - Changes in interest rates could impact the fair market value of the company's fixed-rate Senior Notes and Convertible Notes[200](index=200&type=chunk) **Fair Market Value of Fixed-Rate Debt (in thousands, as of June 30, 2025)** | Instrument | Aggregate Principal Amount | Fair Market Value | |:---|:---|:---|\ | Senior Notes | $633,107 | $497,939 | | 2026 Notes | $575,000 | $544,800 | | 2028 Notes | $345,000 | $266,000 | [Item 4. Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms effective disclosure controls and procedures, reporting no material changes in internal control over financial reporting [Disclosure Controls and Procedures](index=46&type=section&id=Disclosure%20Controls%20and%20Procedures) This section confirms the effectiveness of the company's disclosure controls and procedures - The company's CEO and CFO concluded that the disclosure controls and procedures were effective as of June 30, 2025[202](index=202&type=chunk) [Changes in Internal Control Over Financial Reporting](index=46&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) This section reports no material changes in internal control over financial reporting during the quarter - No change in the company's internal control over financial reporting materially affected, or is reasonably likely to materially affect, internal control over financial reporting during the quarter ended June 30, 2025[203](index=203&type=chunk) [PART II: OTHER INFORMATION](index=47&type=section&id=PART%20II%3A%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity security sales, and other corporate information [Item 1. Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) This section states that there are no legal proceedings to report - None[206](index=206&type=chunk) [Item 1A. Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) This section highlights new risk factors, including significant impairment of intangible assets and goodwill, and the critical CEO transition - The company recognized **$586.0 million** in non-cash impairment charges for indefinite-lived franchise agreements (**$497.2 million**) and goodwill (**$88.8 million**) in Q2 2025, reducing their carrying values[208](index=208&type=chunk) - Further impairments of intangible assets or goodwill could occur if fair values decline in future periods, adversely impacting earnings and total assets[208](index=208&type=chunk) - The successful identification, hiring, and transition to a new CEO is critical, as the current CEO is retiring by December 31, 2025, and this transition could impact business strategies and operations[209](index=209&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=48&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports minimal share repurchases during the quarter, with a remaining authorization of **$143.1 million** under the Share Repurchase Program - The company had **$143.1 million** of remaining share repurchase authorization under its Share Repurchase Program as of June 30, 2025[210](index=210&type=chunk) - Only 2 shares were purchased during the three months ended June 30, 2025, primarily for tax withholding related to equity awards[210](index=210&type=chunk) [Item 3. Defaults Upon Senior Securities](index=48&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section indicates that there were no defaults upon senior securities - None[211](index=211&type=chunk) [Item 4. Mine Safety Disclosures](index=48&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section states that mine safety disclosures are not applicable to the company - Not applicable[212](index=212&type=chunk) [Item 5. Other Information](index=49&type=section&id=Item%205.%20Other%20Information) This section details the adoption of the Cable One, Inc. 2025 Executive Severance Plan, providing benefits for eligible executives upon qualifying termination events - The Board approved the adoption of the Cable One, Inc. 2025 Executive Severance Plan, effective July 29, 2025[215](index=215&type=chunk) - The Plan provides severance benefits to eligible executives whose employment terminates upon a 'Qualifying Event' (e.g., termination without Cause or voluntary resignation for Good Reason), excluding change-in-control transactions[216](index=216&type=chunk) - Benefits include lump sum cash payments (base salary, target annual bonus), accelerated vesting of outstanding equity awards (granted prior to Jan 1, 2026), and health care coverage premiums[217](index=217&type=chunk) - Benefits are contingent on the participant releasing claims against the company and complying with non-compete, non-solicitation, and other restrictive covenants[218](index=218&type=chunk) [Item 6. Exhibits](index=50&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report on Form 10-Q, including key agreements and certifications - Key exhibits include the Retirement Agreement and General Release of Claims for Julia M. Laulis (Exhibit 10.1) and the Cable One, Inc. 2025 Executive Severance Plan (Exhibit 10.2)[220](index=220&type=chunk) [SIGNATURES](index=51&type=section&id=SIGNATURES) This section contains the official signatures of the company's principal executive and financial officers, certifying the report - The report is signed by Julia M. Laulis, Chair of the Board, President and Chief Executive Officer, and Todd M. Koetje, Chief Financial Officer, on July 31, 2025[224](index=224&type=chunk)

Financial Data and Key Metrics Changes - Total revenues for Q2 2025 were $381.1 million, down from $394.5 million in Q2 2024, primarily due to a $9 million (15.8%) decrease in residential video revenues and a $1.1 million (0.5%) decrease in residential data revenues [20][21] - Adjusted EBITDA was $203.2 million, representing 53.3% of revenues, compared to $212.4 million (53.8% of revenues) in the prior year [22][23] - Capital expenditures were $68.4 million, a decrease of $3.2 million (4.5%) year over year [23] Business Line Data and Key Metrics Changes - Residential broadband revenue increased by 1.9% sequentially, driven by a $2.39 increase in ARPU, despite a decline of 13,000 residential data customers in Q2 [6][10] - Business data revenue was $57.4 million, consistent with Q1 levels, with a year-over-year growth of 1.2% driven by high-value fiber and carrier segments [7][21] Market Data and Key Metrics Changes - Fiber to the home overbuilds now represent approximately 53% of the company's passings, indicating increased competitive pressure [12][13] - The company expects total residential broadband revenue for 2025 to be flat or decrease modestly compared to 2024 [13] Company Strategy and Development Direction - The company is focusing on innovation to simplify customer experience and enhance operational efficiency, including the rollout of AI-powered tools and a unified billing platform [14][15] - A pilot program for mobile services is being launched to complement wired broadband offerings, aiming to enhance customer lifetime value and reduce churn [17][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged competitive headwinds and seasonal softness in college markets but noted early signs of positive impact from new products and pricing strategies [6][13] - The company does not expect to grow total residential broadband customers in 2025 but is optimistic about long-term growth through strategic actions [13][18] Other Important Information - The company expects to realize approximately $40 million in cash tax savings in 2025 due to recent tax legislation [25] - A non-cash impairment charge of $586 million was recognized during the quarter, which does not impact cash flows or operational strategy [22] Q&A Session Summary Question: Competitive overlap with fiber - Management confirmed that competitive overlap with fiber increased from 50% to 53% and noted that losses are primarily due to competition from cell phone Internet [33][34] Question: Promo roll-off and customer retention tactics - Management indicated that promo roll-offs are expected to remain elevated and that retention tactics are being implemented to mitigate churn [40][42] Question: Priority between subscribers and ARPU - Management stated that both subscriber growth and ARPU stability are priorities, with expectations for ARPU to remain stable for the rest of the year [47][49] Question: Mobile service strategy - Management clarified that the mobile service pilot is not only economically viable but also aligns with the company's brand image, aiming to enhance customer convenience and profitability [57][60] Question: Billing system conversion - Management confirmed that the billing migration is complete and has gone through all necessary cycles without significant issues [63][65]

Cable One Reports Second Quarter 2025 Results July 31, 2025 – PHOENIX – (BUSINESS WIRE) – Cable One, Inc. (NYSE: CABO) (the "Company" or "Cable One") today reported financial and operating results for the quarter ended June 30, 2025. Exhibit 99.1 | | | | Three Months Ended June 30, | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | (dollars in thousands) | | 2025 | | 2024 | | $ Change | % Change | | Revenues | $ | 381,072 | $ | 394,461 | $ | (13,389) | (3.4)% | | Net income (loss) | $ | (437,976) ...

Group 1 - Cable One, Inc. (NYSE: CABO) is expected to see increased demand for its services due to the deployment of DOCSIS 4.0, the rise of remote work, and the growth of the IoT industry [1] - The recent decrease in contract termination costs may positively impact Cable One's business model [1] Group 2 - The analysis is based on cash flow statements and unlevered free cash flow figures, with assumptions derived from previous financial data and forecasts about the company's future [1] - The financial models may include various metrics such as cost of capital, cost of debt, WACC, share count, and net debt [1] - The focus is primarily on companies with a long history of reporting financial figures, rather than growth stocks [1]

Core Viewpoint - Cable One, Inc. is under investigation for potential securities fraud and unlawful business practices following disappointing financial results and a significant stock price drop [1][3]. Financial Performance - On May 1, 2025, Cable One reported Q1 2025 earnings that fell significantly short of analyst expectations and announced the suspension of its dividend [3]. - Analysts from Keybanc described the results as "extremely disappointing," while Raymond James criticized management's optimism regarding future growth in broadband revenue and subscribers despite poor performance [3]. - Following the earnings report, Cable One's stock price plummeted by $109.48, or 41.79%, closing at $152.51 per share on May 2, 2025 [3]. Legal Investigation - Pomerantz LLP is investigating claims on behalf of Cable One investors regarding possible securities fraud or other unlawful business practices by the company and its officers/directors [1].

Company Overview - Cable One, Inc. is a broadband communications provider offering high-speed internet, video, and voice services through its brands, including Sparklight, Fidelity, Hargray, and CableAmerica [3] Allegations and Financial Performance - On May 1, 2025, Cable One reported first-quarter earnings that significantly fell short of analyst expectations and announced plans to suspend its anticipated dividend [4] - Analysts from KeyBanc and Raymond James raised concerns about the company's credibility, noting that the results contradicted prior management statements forecasting growth in subscribers and broadband revenue [4] Market Reaction - Following the earnings report, Cable One's stock price dropped by $109.48 per share, or 41.79%, closing at $152.51 per share on May 2, 2025 [5]