Cable One Inc. reported first‑quarter 2026 results, posting revenue of $352.96 million, down 7.3% year‑over‑year, and net income of $35.77 million, or $6.12 per share. The company missed consensus revenue estimates of $359.4 million to $366.8 million and EPS estimates that averaged $6.12, with most analysts projecting between $5.70 and $6.27.
The revenue decline was driven by a 57,900‑unit drop in residential broadband subscribers, a 12,600‑unit net loss in residential broadband customers, and weaker performance in the residential data segment. While the business continues to invest in multi‑gigabit and DOCSIS 4.0 rollouts, competition from satellite and fixed‑wireless providers has eroded market share in legacy residential services.
Net profit margin contracted to 10.1% from 11.2% in the same quarter a year earlier, and adjusted EBITDA margin fell to 51.9% from 53.3%. The compression reflects higher operating costs, especially in programming and billing‑system conversion, offset by a one‑time gain of $42 million from the sale of fiber‑to‑the‑tower contract rights that boosted net income.
CEO Jim Holanda said the company has “the right building blocks in place, including a resilient business model, a high‑capacity network, strong local market positions and the ability to generate meaningful cash flow.” CFO Todd Koetje noted that operating expenses fell 6% to $93.9 million, largely due to reduced programming costs, and that SG&A expenses dropped 6% to $87.2 million, driven by lower labor costs and billing‑system conversion savings.
Investors reacted negatively, focusing on the revenue miss and the significant subscriber losses. The market reaction was driven primarily by the $13.8 million shortfall in revenue and the 12,600‑unit net residential broadband customer loss, which underscored ongoing competitive pressure and a slowdown in residential data demand.
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