Cable One (NYSE:CABO) Q4 2025 Earnings call February 26, 2026 05:00 PM ET Company ParticipantsCraig Moffett - Partner and Senior Managing DirectorJames Holanda - CEOJordan Morkert - VP of Investor RelationsSam McHugh - Head of Telecom Equity ResearchTodd Koetje - Chief Financial Officer and Interim CEOConference Call ParticipantsBrandon Nispel - Director and Equity Research AnalystFrank Louthan - Managing Director and Senior Equity Research AnalystGregory Williams - Director and Senior Equity Research Analy ...

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 declined by 2.3% year-over-year, with full year revenue at approximately $8.6 billion [4][8] - Adjusted EBITDA grew nearly 8% year-over-year to just over $900 million, marking the first quarter of year-over-year adjusted EBITDA growth in 16 quarters [5][26] - Adjusted EBITDA margin expanded to over 41%, up 380 basis points year-over-year, while gross margin reached approximately 70%, up 180 basis points [5][25] - Full year 2025 adjusted EBITDA was $3.4 billion, excluding the divested i24NEWS business [9] Business Line Data and Key Metrics Changes - Connectivity and all other revenue grew by 2% year-over-year, while video revenue declined almost 10% [22][23] - Broadband ARPU grew by 2.8% year-over-year to $76.71, the highest quarterly broadband ARPU in 14 quarters [24] - Mobile lines reached 623,000, representing 35% year-over-year growth, with mobile churn improving by over 700 basis points [19] - Video subscribers decreased by 13% year-over-year, with a net loss of 49,000 video subscribers in Q4, the lowest quarterly video net losses in over five years [20] Market Data and Key Metrics Changes - The competitive environment intensified, with unprecedented levels of promotional activity impacting subscriber growth [4][18] - The company experienced heightened price sensitivity among customers, contributing to fewer gross additions and higher churn year-over-year [18] - Lightpath revenue reached $468 million in full year 2025, representing 13% growth year-over-year, driven by demand from hyperscale customers [30] Company Strategy and Development Direction - The company is focused on simplifying operations to enhance customer and employee experiences, with priorities including improving broadband trajectory and maintaining financial discipline [10][11] - Investments in AI and automation are being leveraged to enhance operational efficiency and customer experience [12][13] - The company aims to balance capital expenditures with long-term economics, emphasizing fiber expansion and targeted network upgrades [16][17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the hypercompetitive landscape and emphasized the importance of disciplined execution and operational improvements made in 2025 [39][41] - The company is optimistic about its ability to improve broadband trends and stabilize EBITDA in 2026, supported by the foundational work done in 2025 [41][42] - Management highlighted ongoing efforts to optimize costs without compromising network performance or customer experience [14][33] Other Important Information - Cash capital expenditures for full year 2025 totaled approximately $1.3 billion, with a capital intensity of less than 16%, the most efficient in the last four years [27] - The company completed several debt refinancings in 2025, improving liquidity and expanding financial flexibility [32] Q&A Session All Questions and Answers Question: Can you unpack the broadband subscriber trends and expectations for 2026? - Management noted that Q4 faced unprecedented competitive pressures, but emphasized the foundational work done in 2025 to position for future improvements [37][39] Question: What is the update on the balance sheet and debt management? - Management highlighted the importance of meaningful debt reduction and a reset of the balance sheet to support long-term goals, with recent refinancings enhancing liquidity [46][47] Question: Can you discuss the strength of residential broadband ARPU? - Management confirmed that residential ARPU grew 0.4% year-over-year, driven by broadband expansion despite video headwinds [49][50] Question: What are the expectations around programming costs per subscriber? - Management reported a 16% reduction in programming costs for the quarter, emphasizing a disciplined approach to negotiations and cost management [57][58] Question: How is the competitive landscape evolving? - Management indicated that competitive intensity remains high, particularly from Verizon in the East, but expressed confidence in the company's product offerings and pricing strategies [66][67]

NON-GAAP FINANCIAL MEASURES We define Adjusted EBITDA, which is a non-GAAP financial measure, as net income (loss) excluding income taxes, non-operating income or expenses, gain (loss) on extinguishment of debt and write-off of deferred financing costs, gain (loss) on interest rate swap contracts, gain (loss) on derivative contracts, gain (loss) on investments and sale of affiliate interests, interest expense, net, depreciation and amortization, share-based compensation, restructuring, impairments and other ...

Core Viewpoint - La Caisse intends to sell nearly 11% of its shares in Cogeco Communications at a gross price of $67.45 per share, generating approximately $229 million in gross proceeds [1][2]. Group 1: Transaction Details - The sale of shares is part of La Caisse's periodic portfolio rebalancing [2]. - The transaction will result in La Caisse remaining the largest holder of subordinate shares in Cogeco Communications, which serves 1.6 million customers in Canada and the United States [2]. Group 2: Historical Investment and Support - La Caisse has been a supporter of Cogeco Communications since 2013, having invested in various transactions, including a $350 million share purchase in 2023 [3]. - Initial investment included a $50 million loan in 2013 and a contribution of USD 315 million for acquiring MetroCast cable systems in 2017 [3]. Group 3: La Caisse Overview - La Caisse, formerly known as CDPQ, has a dual mandate to generate long-term returns for its depositors and contribute to Québec's economic development [4]. - As of June 30, 2025, La Caisse's net assets totaled CAD 496 billion, indicating its significant presence in major financial markets, private equity, infrastructure, real estate, and private credit [5].

Core Insights - Comcast's Xfinity has launched a new loyalty program called Xfinity Membership, which combines rewards, benefits, and experiences for customers [1][2] - All eligible Xfinity customers will automatically become members, gaining access to enhanced perks and discounts based on their service tenure and number of services [2][8] Membership Details - Xfinity Membership includes automatic status with no additional cost or enrollment required, and over 30% of current Xfinity Rewards members will be upgraded to a higher tier [2][8] - Membership tiers are categorized as Silver, Gold, Platinum, and Diamond, rewarding customers based on their tenure and the number of services they use [8] Benefits and Experiences - Members will enjoy weekly perks, discounts on mobile and streaming services, and exclusive experiences such as VIP event access [8][9] - The program features a concert series in San Francisco, offering complimentary tickets and VIP experiences for members [4][5][6] Ongoing Engagement - New perks and experiences will be added regularly throughout the year, ensuring continuous engagement and value for members [7][8] - The membership aims to provide seamless access to benefits through the Xfinity app, enhancing customer experience [3][9]

Core Insights - Comcast has opened its first Xfinity Store in Chehalis, Washington, located in the Twin City Town Center West [1] - The new store features an interactive design aimed at providing local residents with a convenient location to explore Xfinity products and services, including Xfinity Mobile [1] - The store also offers opportunities for local businesses to discuss their technology needs with Comcast Business experts [1]

Group 1: Novo Nordisk - Novo Nordisk's shares fell 41% in 2025 due to leadership changes and reduced guidance, but there is optimism for recovery in the near future [3][5] - The company launched a GLP-1 oral pill for obesity, which is easier to take and cheaper to produce than its injectable counterpart, Wegovy [4] - The stock trades at approximately $55 with a forward P/E ratio of 14, significantly lower than the S&P 500 average of 22, and offers a dividend yield of 3.3% [6] Group 2: Comcast - Comcast's stock is trading around $28 per share with a forward P/E ratio of 7, indicating it is undervalued, and it provides a high dividend yield of 4.5% [7] - The company recently spun off Versant to focus on its core growth areas, including streaming, theme parks, broadband, and wireless, which may enhance its growth prospects [8]

Core Viewpoint - Charter Communications, Inc. plans to offer senior unsecured notes to raise funds for various corporate purposes, including debt repayment and potential stock buybacks [1][2]. Group 1: Offering Details - The offering will involve senior unsecured notes from CCO Holdings, LLC and CCO Holdings Capital Corp [1]. - Proceeds from the offering will be used to fully redeem the 5.500% Senior Notes due 2026 and partially redeem the 5.125% Senior Notes due 2027, as well as to fund potential buybacks of Charter Class A common stock [2]. - The notes will be sold to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S, and they have not been registered under the Securities Act of 1933 [3]. Group 2: Company Overview - Charter Communications, Inc. is a leading broadband connectivity company serving 58 million homes and businesses across 41 states through its Spectrum brand [5]. - The company has evolved from providing cable TV to offering a range of services including streaming, high-speed Internet, and mobile experiences [5].

Group 1: Executive Appointment - Comcast has entered into a new employment agreement with Michael Cavanagh as co-CEO alongside Brian Roberts starting January 2, 2024, securing his employment through January 1, 2029 [1] - Cavanagh's annual base salary will be $2.75 million, with a performance-based cash bonus target of 300% of his base salary, and he received performance-based restricted stock units valued at approximately $35 million [2] Group 2: Versant Media Spin-off - Comcast officially spins off Versant Media Group into a standalone public company, set to begin trading on Nasdaq under the symbol VSNT on January 5, 2024, which includes NBCU cable networks (excluding Bravo) and digital assets like Fandango and Rotten Tomatoes [4] - Versant expects to generate $6.6 billion in revenue, $2.2 billion in EBITDA, and $1.4 billion in free cash flow for 2025, launching with $3 billion in gross debt, $750 million in cash, and $1.5 billion in total liquidity [6] Group 3: Industry Trends - Following Comcast's announcement, Warner Bros. Discovery plans to separate its linear television into a new entity called Discovery Global, and has struck a deal to sell its Warner Bros. studios and streaming to Netflix [5] - The new company, Versant, aims to shift its revenue mix towards areas with stronger growth potential, including a direct-to-consumer offering for MS Now and new FAST channels [6]

Core Insights - The US home broadband market is facing challenges for cable operators due to increasing net broadband subscriber losses driven by competition from fiber and fixed wireless access [1] - Mobile services are becoming essential for cable companies, with Comcast and Charter reporting significant net mobile line additions in Q3 2025 [2] Group 1: Comcast's Performance - Comcast achieved its best quarterly mobile line additions in Q3 2025, with 414,000 net mobile line adds, bringing its total to 8.94 million mobile lines and over 14% penetration of its broadband base [3] - A significant portion of Comcast's new subscribers came from a free-line bundling strategy, which contributed to the increase in net additions [3] - Comcast is focusing on converting free lines into paying customers to capture convergence revenue growth, especially as promotional offers expire in H2 2026 [4] Group 2: Charter's Performance - Charter experienced year-over-year declines in total revenue (-0.9%), residential revenue (-1.1%), and adjusted EBITDA (-1.5%) in Q3 2025, despite a slight increase in broadband revenue by 1.7% [6] - Mobile services are highlighted as a growth engine for Charter, providing a positive aspect amidst overall revenue challenges [6]