The Q1 beat on EPS is entirely non-operational and non-recurring. The core business is deteriorating faster than expected, with revenue and subscriber losses accelerating. With no guidance and a consensus that is 8% bullish, the stock faces downside risk as the market reprices for continued erosion. Monitor the Q2 2026 10-Q for subscriber trends and any update on the MBI put option exercise.
Price Chart
Executive Summary
Cable One reported Q1 2026 revenue of $352.96M, down 7.3% YoY, and GAAP diluted EPS of $6.12, a sharp improvement from $0.46 in Q1 2025 due to a $26.6M gain on sale of fiber-to-the-tower contract rights and lower equity investment losses. However, core operations weakened further: Adjusted EBITDA fell 9.6% to $183.3M, residential data subscribers declined 6.1% YoY, and the company provided no forward guidance. The net income improvement is non-recurring and masks accelerating revenue erosion.
Key Financial Metrics
Key Facts
- Total revenue declined 7.3% YoY to $352.96M, the steepest drop in recent quarters.
- Residential data revenue fell 5.1% YoY to $213.6M; residential data subscribers down 6.1%.
- Adjusted EBITDA declined 9.6% YoY to $183.3M; Adjusted EBITDA margin contracted 140 bps to 51.9%.
- GAAP diluted EPS of $6.12 vs $0.46 in Q1 2025, driven by a $26.6M gain on sale of fiber-to-the-tower contract rights and $32.9M lower equity investment losses.
- No guidance provided; the company faces persistent subscriber losses and competitive pressure.
- Debt balance reduced to $3.12B from $3.21B at year-end 2025; $575M revolver drawn to retire convertible notes.
- Operating cash flow was essentially flat at $118.2M vs $116.3M; Adjusted EBITDA less capex fell 12.7% to $114.9M.
Financial Impact
Revenue decline of $27.6M (-7.3% YoY); Adjusted EBITDA decline of $19.4M (-9.6% YoY); GAAP net income of $35.8M vs $2.6M (non-recurring gains).
Risk Factors
- Accelerating residential data subscriber losses (6.1% YoY) signal competitive pressure from fiber and fixed wireless.
- No forward guidance increases uncertainty; consensus estimates may be too optimistic.
- The $26.6M gain on asset sale is non-recurring; Q2 EPS will revert to underlying weakness.
- High leverage (debt of $3.12B vs market cap of $511M) leaves limited financial flexibility.
- MBI put option exercise on Jan 2, 2026 creates cash obligation and integration risk.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001632127-26-000021 |
| Document: cabo-20260430.htm | 0001632127-26-000021 |
| Document: 0001632127-26-000021-index-headers.html | 0001632127-26-000021 |
| Document: 0001632127-26-000021-index.html | 0001632127-26-000021 |
| Document: 0001632127-26-000021.txt | 0001632127-26-000021 |
| 8-K Data (Synthetic) | 0001632127-26-000021 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 14, 2026 7w ago | 8-K | $34.48 $20.44 | ▼ −40.72% | ▼ −38.73% | $12.21 (−64.59%) |
Aug 7, 2026 8w ago | Institutional Cluster | $37.32 $25.47 | ▲ +31.75% | ▲ +31.36% | $12.21 (+67.28%) |
Jul 9, 2026 12w ago | 8-K | $35.27 $44.48 | ▼ −26.11% | ▼ −23.87% | $12.21 (+65.38%) |
Jun 11, 2026 16w ago | Institutional Cluster | $41.57 $35.27 | ▼ −15.16% | ▼ −17.05% | $12.21 (−70.63%) |
Apr 30, 2026 22w ago | 8-K | $75.01 $51.34 | ▲ +31.56% | ▲ +36.82% | $12.21 (+83.72%) |
US Market Status
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