Cable One, Inc. (CABO) · Nov 5, 2026 · Earnings
Miss — Revenue $332.2M vs ~$341.3M consensus
Cable One’s Q3 earnings missed on revenue and showed sharper EBITDA and cash-flow declines, while management disclosed financing risk that could lead to Chapter 11.
Cable One is a rural and regional broadband operator trying to stabilize falling subscriber counts while pursuing the acquisition of the remaining stake in Mega Broadband Investments; its second-quarter results already showed declining residential data revenue, weaker EBITDA and rising financing pressure. The operating miss deepened rather than stabilized. Third-quarter revenue fell 11.7% to $332.2 million, below the published consensus of roughly $341.3 million, while residential data revenue dropped 10.3% and data PSUs fell 5.3%. The CEO highlighted the best residential data subscriber result in seven quarters, but the underlying customer base was still shrinking and residential data ARPU also fell 4.5%.
| Metric | Q3 2026 | Q3 2025 | Consensus |
|---|---|---|---|
| Revenue (Financial Highlights) | $332.2M (-11.7%) | $376.0M | ~$341.3M |
| Adjusted EBITDA (Financial Highlights) | $159.8M (-20.8%) | $201.9M | |
| Adjusted EBITDA margin (Financial Highlights) | 48.1% | 53.7% | |
| Operating cash flow (Cash Flow statement) | $92.6M (-40.8%) | $156.5M | |
| Adjusted EBITDA less capex (Reconciliations) | $81.9M (-37.1%) | $130.1M | |
| Total customers (Operating statistics) | 981.7K (-5.8%) | 1,042.3K |
The impairment is not the main problem; the business deterioration and financing need are. Cable One recorded $412.1 million of non-cash impairments after its stock-price decline, including goodwill and franchise agreements. That explains the $431.8 million GAAP loss, but it does not explain the 20.8% Adjusted EBITDA decline, the 40.8% operating-cash-flow decline or the heavier capital burden.
Liquidity has become the decisive issue. Cash rose to $674.8 million after $700 million of new borrowings, but gross debt also increased to $3.55 billion, with $1.05 billion drawn on the revolving facility and only $200 million of nominal availability. The filing says existing liquidity and operating cash flow will not be enough to repay the major 2027–2028 maturities, and it explicitly identifies Chapter 11 as a possible outcome if financing or amendments cannot be secured. 〔0〕 〔1〕
MBI now adds execution risk instead of simply adding scale. Cable One says it has enough liquidity to fund the purchase price if the legal restriction is removed, but intends to coordinate closing with financing that also addresses debt maturities. That makes the acquisition dependent on a financing solution that is not fully within the company's control, while MBI itself carries substantial debt due beginning in 2027. The direction of the liquidity problem was already visible before this release, so the financing warning is partly known; the new information is how directly the company links the acquisition, refinancing and potential bankruptcy risk.
Bottom line: This was not merely a noisy impairment quarter. Cable One missed on revenue, operating performance weakened again, and the filing makes financing—not subscriber momentum—the central condition for keeping the current strategy intact.
Financing transaction to address near-term debt maturities
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