Cable One Reports 7.3% Revenue Decline but Significant Net Income Increase in Q1 2026

Cable One, Inc. reported its financial results for the first quarter of 2026, revealing a revenue decline of 7.3% to $352.96 million, down from $380.60 million in the same period last year. The company's net income saw a significant increase, reaching $35.77 million compared to $2.61 million in the prior year, resulting in a basic earnings per share of $6.29, up from $0.46. This improvement in profitability was attributed to a reduction in operating expenses, which fell by 6.5% to $266.35 million, driven by lower programming costs and decreased selling, general, and administrative expenses.

In terms of operational metrics, Cable One experienced a decline in its customer base, with total primary service units (PSUs) decreasing by 7.6% year-over-year to 1.16 million. The company reported a loss of approximately 57,900 residential data PSUs, a 6.1% decrease, and a 22.9% drop in residential video PSUs. Despite these losses, the average revenue per user (ARPU) for residential data services increased slightly by 0.8% to $79.51, indicating that while customer counts are down, the remaining customers are generating slightly more revenue.

Strategically, Cable One is focusing on enhancing its higher-margin residential and business data services while de-emphasizing its video offerings due to rising programming costs and competition from streaming services. The company has also launched a mobile service to complement its broadband offerings, aiming to improve customer retention and lifetime value. Additionally, Cable One is preparing for the acquisition of the remaining equity interests in Mega Broadband Investments, which is expected to close on October 1, 2026, following the exercise of a put option.

The company’s cash flow from operating activities increased by 1.6% to $118.22 million, while cash used in investing activities decreased significantly by 57.7% to $23.91 million, primarily due to proceeds from the sale of fiber-to-the-tower contract rights. However, cash used in financing activities rose by 26.7% to $81.48 million, reflecting increased debt repayments. As of March 31, 2026, Cable One had $165.60 million in cash and cash equivalents, up from $149.09 million a year earlier, providing a solid liquidity position as it navigates its strategic initiatives and market challenges.