Cable One Reports 5.9% Revenue Decline and 93% Drop in Net Income for Q1 2025

Cable One, Inc. reported a decline in financial performance for the first quarter of 2025, with revenues totaling $380.6 million, down 5.9% from $404.3 million in the same period last year. The company's net income also saw a significant drop, falling to $2.6 million compared to $37.4 million in the prior year, marking a 93% decrease. This decline in profitability was attributed to a combination of reduced customer counts in key service areas and increased operational costs, particularly in selling, general, and administrative expenses, which rose to $95.4 million from $90.4 million year-over-year.

In terms of customer metrics, Cable One reported approximately 1.1 million total residential and business customers as of March 31, 2025, a decrease from 1.1 million in the previous year. The company experienced a notable decline in residential video subscribers, which fell by 19.4% to 101,300, while residential voice subscribers decreased by 15% to 64,600. Conversely, business data subscribers increased slightly to 99,800, reflecting a 0.8% growth. The company’s focus on higher-margin residential data and business data services continues to shape its strategic direction, as it aims to offset declines in video and voice services.

Operationally, Cable One has been investing in its infrastructure to enhance service offerings and customer experience. The company reported capital expenditures of $71.1 million for the quarter, an increase of 8% from $65.9 million in the prior year. These investments are aimed at expanding high-speed data services and improving network reliability, particularly in underserved markets. The company has rolled out multi-Gigabit download data service to over 40% of its markets and is actively deploying DOCSIS 4.0 technology to further enhance its broadband capabilities.

Looking ahead, Cable One has indicated a strategic shift in its capital allocation, including the suspension of its quarterly cash dividend to redirect funds towards debt repayment and growth initiatives. The company anticipates that this approach will strengthen its financial position and support ongoing investments in infrastructure and service enhancements. Despite the challenges faced in the current fiscal period, Cable One remains committed to its long-term growth strategy, focusing on expanding its residential data and business data revenues while managing costs effectively.