Cable One Inc. (CABO) reported its fourth‑quarter and full‑year 2025 financial results, showing a sharp improvement in its loss profile but a continued decline in revenue and a significant earnings miss. For the quarter ended December 31, 2025, revenue fell 6.1% to $363.7 million, driven by a 4.2% drop in residential data revenue as subscriber losses offset a modest 1.2% increase in average revenue per user. The company’s adjusted EBITDA declined 8.1% to $193.9 million, a margin of 53.3% versus 54.5% in Q4 2024, reflecting tighter pricing power amid competitive pressure. Net loss narrowed dramatically from $105.2 million in Q4 2024 to $7.6 million, largely due to lower revenue and disciplined cost management.
The full‑year 2025 results continued the downward trend. Total revenue was $1.50 billion, a 4.9% decline from $1.58 billion in 2024, and the company posted a net loss of $356.5 million compared with a $14.5 million profit in 2024. Operating cash flow for the year was $145.5 million, down 13.2% from $167.6 million in 2024, while capital expenditures rose to $74.0 million from $71.9 million. Debt at year‑end fell to $3.21 billion from $3.62 billion, indicating ongoing deleveraging.
Cable One’s earnings per share for Q4 2025 were a loss of $1.35, a miss of more than $7.00 against consensus estimates ranging from $6.30 to $7.60. The miss reflects the combined impact of lower revenue, subscriber erosion, and the company’s high cost base. Revenue also missed the consensus estimate of $369.25 million by roughly 1.5%, underscoring the difficulty of maintaining market share in a competitive broadband environment.
Management emphasized that the company is focusing on defending its customer base and capitalizing on profitable growth. Chief Financial Officer Todd Koetje noted that “the fourth quarter reflected year‑over‑year residential data connect activity growth and a significant improvement in disconnects compared to the third quarter, which together resulted in net subscriber results that were better than the declining trends we experienced earlier in 2025.” Chief Executive Officer Jim Holanda said, “Mobile is integral. We are exploring how to retain customers and add value through mobile services, following the example of competitors.”
The company’s adjusted EBITDA less capital expenditures for Q4 2025 was $119.9 million, down 13.8% from $139.1 million in Q4 2024, reflecting the impact of lower revenue and higher CapEx. Despite the earnings miss, the company’s strong adjusted EBITDA margin and debt reduction suggest that it remains focused on cost discipline and financial flexibility as it navigates subscriber erosion and competitive pressure.
The results highlight the challenges Cable One faces in sustaining revenue growth while maintaining profitability. The company’s strategy of defending its customer base, pursuing mobile services, and continuing to deleverage debt positions it to weather short‑term headwinds, but the significant EPS miss and revenue decline signal that further execution will be required to stabilize its financial performance.
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