Cable One Posts $431.8 Million Loss After Impairments

The Tip Desk · November 11, 2026 · 3 min read

Revenue fell 11.7% to $332.2 million as residential data and video declined, and the company said cash would not cover 2027-28 debt maturities.

Cable One, Inc. (CABO), a broadband communications provider, reported a net loss of $431.8 million for the three months ended September 30, 2026, versus net income of $86.5 million a year earlier, after recording $412.1 million of non-cash asset impairments and additional non-cash charges tied to its Mega Broadband Investments Holdings LLC stake.

The company said a decline in its stock price during the third quarter triggered an interim intangible-asset and goodwill impairment test as of September 30, 2026. The resulting impairments were $159.0 million on indefinite-lived franchise agreements and $253.1 million on goodwill. The quarter also included a $39.7 million, net of tax, non-cash fair-value loss on the put option to acquire the remaining equity in MBI and a $20.0 million, net of tax, non-cash impairment of the MBI equity investment. Net profit margin was (130.0)%. Cable One said the impairment charges do not affect cash flows, operational strategy, growth initiatives, or its intent or ability to renew or extend franchise agreements.

Revenue fell 11.7% year-over-year to $332.2 million, a steeper drop than the 8.4% year-over-year decline in the second quarter. Residential data revenue was $204.1 million, down 10.3% from a year earlier, after a 7.3% year-over-year decline in the second quarter. The company attributed the residential data decline primarily to fewer residential data subscribers and a drop in residential data ARPU. Residential video revenue was $35.7 million, down 20.7% year-over-year, due primarily to fewer residential video subscribers, partially offset by a rate adjustment. Business data revenue was $53.6 million, down 6.7% year-over-year, matching the second-quarter level, due primarily to fewer business data subscribers and a decline in business-services ARPU.

Adjusted EBITDA was $159.8 million, down 20.8% year-over-year, after a 14.6% year-over-year decline in the second quarter. Adjusted EBITDA margin compressed to 48.1% from 49.7% sequentially. Cash from operations was $92.6 million, down 40.8% year-over-year. Adjusted EBITDA less capital expenditures was $81.9 million, down 37.1% year-over-year.

Capital expenditures rose to $77.9 million, up 8.6% year-over-year. Customer-premise equipment spending was $27.1 million versus $17.0 million a year earlier. Line-extension spending fell to $10.1 million from $18.1 million.

Chief Executive Officer Jim Holanda said the company made meaningful progress in customer trends, resulting in its best residential data subscriber results in seven quarters and highest connect activity in three years.

Cash and cash equivalents were $674.8 million at September 30, 2026, versus $152.8 million at December 31, 2025, after the company borrowed $500.0 million, net of repayments, under its revolving credit facility. Gross debt was $3.55 billion. The revolver had $1.05 billion drawn and $200.0 million of nominal availability. Weighted average cost of debt was 4.8% for the quarter.

Cable One said existing cash, senior credit facilities and operating cash flows would not be sufficient to repay upcoming maturities, including, if the MBI acquisition closes, MBI term loans of $916.2 million due November 2027, a $1.25 billion revolver due February 2028, $345.0 million of convertible notes due March 2028 and $694.3 million of term loans due May 2028. It said it is in discussions to raise capital and address those maturities, makes no assurances it will consummate financings, and warned that failure to finance or extend debt could require Chapter 11 relief. The company intends to hold MBI separate from the rest of the business if the acquisition closes and currently intends to coordinate any MBI purchase-price payment with financing that addresses at least some outstanding debt maturities, after a temporary restraining order entered October 9, 2026.