Cable One (CABO) Financials

Cable One’s latest results show resilient cash generation but continued pressure on revenue, operating earnings and equity. Q2 2026 revenue was $348.9 million, down from $381.1 million in Q2 2025 and $429.1 million in Q2 2022. This reflects a persistent multiyear decline in the top line, although the company continues to produce substantial operating cash flow.

• Operating cash flow remains positive. Cable One generated $120.9 million from operating activities in Q2 2026, compared with $118.2 million in Q1 2026 and $144.9 million in Q2 2025. Cash flow has remained positive in every quarter provided, despite recent reported net losses.
• Underlying cash generation still supports capital investment. Q2 operating cash flow exceeded $74.0 million of capital expenditures, producing approximately $46.9 million of cash flow before financing activities. This compares with approximately $49.8 million in Q2 2025.
• Total debt has declined from prior-year and historical levels. Short- and long-term debt totaled approximately $3.05 billion at June 30, 2026, down from $3.48 billion a year earlier and roughly $3.83 billion in Q2 2022. The company repaid $42.7 million of debt during Q2 2026.
• Operating costs have shown some moderation. Selling, general and administrative expense declined to $186.4 million in Q2 2026 from $194.4 million in Q2 2025 and $209.2 million in Q2 2022. Depreciation expense also eased modestly to $81.8 million.
• The Q2 2026 loss was dominated by unusual and potentially noncash items. Cable One recorded a $597.7 million impairment charge, $431.6 million of other expense and $283.9 million of other losses. These items drove the $1.16 billion net loss, while $1.33 billion of noncash adjustments helped operating cash flow remain positive.
• Balance-sheet classifications changed materially in Q2 2026. Reported net property, plant and equipment fell from $1.78 billion in Q1 2026 to zero in Q2, while other noncurrent operating assets rose sharply. Investors should review the related filing before drawing conclusions about the company’s physical asset base or asset sales.
• Revenue has declined steadily. Quarterly revenue fell approximately 18.7% from Q2 2022 to Q2 2026 and declined 8.4% year over year in the latest quarter. Q2 2026 operating income was negative $524.9 million, compared with positive operating income in earlier periods before impairment charges.
• Profitability and shareholder equity have deteriorated sharply. Cable One reported a Q2 2026 loss attributable to common shareholders of $1.16 billion, or negative $204.35 per share. Total equity declined to $326.4 million from $1.48 billion at the end of Q1 2026 and $1.34 billion in Q2 2025, leaving a much smaller cushion relative to debt.
• Leverage remains high relative to liquidity. Cash and equivalents were $166.2 million at June 30, 2026, versus approximately $3.05 billion of debt. Total current assets of $283.6 million were below total current liabilities of $596.9 million, indicating limited short-term balance-sheet coverage.
• Interest costs continue to absorb a meaningful portion of cash flow. Q2 interest expense was $33.7 million and cash interest paid was $41.0 million. Although debt has declined, continued revenue contraction and weak reported earnings could make refinancing and future debt reduction more challenging.

Overall, Cable One’s cash flow profile remains a relative strength, and debt reduction is constructive. However, the combination of declining revenue, weaker underlying operating profit, high leverage and a sharply reduced equity base leaves the stock exposed to further impairments, customer losses or refinancing pressure.