Cable One (NYSE:CABO) Posts Earnings Results, Misses Expectations By $1.65 EPS

Cable One (NYSE:CABO) issued its quarterly earnings results on Thursday. The company reported $6.12 EPS for the quarter, missing analysts’ consensus estimates of $7.77 by ($1.65), FiscalAI reports. Cable One had a positive return on equity of 7.36% and a negative net margin of 23.74%.The company had revenue of $352.96 million during the quarter, compared to the consensus estimate of $359.59 million.

Here are the key takeaways from Cable One’s conference call:

• In Q1 total revenue fell to $353 million from $380.6 million a year ago, with residential data revenue down ~5.1% (driven by a ~6.1% subscriber decline) and 12,600 net residential broadband losses sequentially, pressuring adjusted EBITDA to $183.3 million.
• The business generated roughly $115 million of free cash flow in Q1 and ~$500 million LQA, repaid the $575 million convertible, voluntarily paid down ~$90.6 million of debt, and finished the quarter with ~$700 million undrawn revolver capacity and a ~4x net leverage LQA.
• Management is rolling out operational fixes—targeted retention programs (AI tools, stepped promo roll-offs, speed upgrades), a new CRM later this year, an MSO-wide mobile launch (2 months in) with encouraging early response, and plans to expand multi‑gig capability from 53% to most markets by year‑end.
• The planned MBI acquisition remains on track to close in early Q4 with the purchase consideration locked at $480 million, and management now expects assumed/refinanced MBI debt of about $895–$925 million, which will modestly increase leverage but is described as manageable with proactive refinancing plans.
• Competitive intensity remains high—about 80% of the footprint faces one or more FWA competitors and satellite/LEO offers are increasing—driving elevated churn concentrated in ~15% of markets and expected back‑book ARPU pressure (management cited a $2–$5 potential adjustment over time).

Cable One Stock Down 12.8%

CABO stock traded down $11.68 during midday trading on Friday, hitting $79.82. The company’s stock had a trading volume of 256,615 shares, compared to its average volume of 152,705. The company has a market cap of $452.55 million, a PE ratio of -1.26 and a beta of 0.69. Cable One has a 12 month low of $70.37 and a 12 month high of $196.64. The company has a current ratio of 0.40, a quick ratio of 0.40 and a debt-to-equity ratio of 1.81. The firm’s 50-day moving average is $100.54 and its 200-day moving average is $111.62.

Analysts Set New Price Targets

CABO has been the topic of a number of analyst reports. Wells Fargo & Company dropped their price target on Cable One from $90.00 to $70.00 and set an “underweight” rating on the stock in a research report on Friday. BNP Paribas Exane cut Cable One from a “neutral” rating to an “underperform” rating and set a $80.00 price target on the stock. in a research report on Tuesday, February 24th. TD Cowen dropped their price target on Cable One from $142.00 to $111.00 and set a “hold” rating on the stock in a research report on Friday. Weiss Ratings reissued a “sell (d-)” rating on shares of Cable One in a research report on Monday, April 20th. Finally, Zacks Research cut Cable One from a “strong-buy” rating to a “hold” rating in a research report on Thursday, April 16th. Five equities research analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, Cable One presently has an average rating of “Reduce” and a consensus price target of $101.50.

Hedge Funds Weigh In On Cable One

Several hedge funds and other institutional investors have recently added to or reduced their stakes in CABO. AQR Capital Management LLC lifted its position in Cable One by 172.6% in the 1st quarter. AQR Capital Management LLC now owns 16,947 shares of the company’s stock valued at $4,482,000 after acquiring an additional 10,731 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in Cable One by 4.7% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 3,361 shares of the company’s stock valued at $893,000 after acquiring an additional 151 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Cable One by 16.7% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 17,268 shares of the company’s stock valued at $4,589,000 after acquiring an additional 2,467 shares in the last quarter. Creative Planning lifted its position in Cable One by 59.7% in the 2nd quarter. Creative Planning now owns 3,238 shares of the company’s stock valued at $440,000 after acquiring an additional 1,210 shares in the last quarter. Finally, Federated Hermes Inc. lifted its position in Cable One by 16,600.0% in the 2nd quarter. Federated Hermes Inc. now owns 1,002 shares of the company’s stock valued at $136,000 after acquiring an additional 996 shares in the last quarter. 89.92% of the stock is owned by institutional investors.

Cable One News Roundup

Here are the key news stories impacting Cable One this week:

• Positive Sentiment: Management is rolling out multi‑gig capability in most markets by year‑end and is targeting a $2–$5 “back‑book” price reset, which could lift ARPU and offset subscriber headwinds if executed successfully. Cable One expects multi‑gig capability…
• Neutral Sentiment: Management is pursuing a strategic overhaul in response to subscriber losses and margin pressure; this is a necessary defensive step but outcomes and timing are uncertain. CABO Q1 deep dive: Subscriber losses…
• Neutral Sentiment: Full Q1 earnings and the conference call transcript are available for review; they provide detail on subscriber trends, margin drivers and capital plans that investors should read. Cable One (CABO) Q1 2026 Earnings Transcript
• Negative Sentiment: Q1 results missed estimates: EPS $6.12 vs. consensus $7.77 and revenue $352.96M vs. $359.6M est.; the quarter showed a negative net margin and lower profitability metrics, which directly pressured the share price. Cable One issues quarterly earnings data
• Negative Sentiment: Wells Fargo cut its price target to $70 and moved to an “underweight” rating, signaling analyst skepticism about near‑term recovery and applying additional downward pressure. Wells Fargo lowers price target
• Negative Sentiment: Index and ETF flows (Russell 1000 rebalancing commentary) have contributed to selling and revenue/ownership shifts, which can amplify near‑term share price moves independent of fundamentals. Cable One Declines on Revenue Shift In Russell 1000 ETF Market View

Cable One Company Profile

Cable One, Inc (NYSE:CABO) is an American provider of broadband communications services, offering a suite of residential and business solutions over a hybrid fiber-coaxial network. The company delivers high-speed internet access, digital video, voice communications and mobile services, alongside advanced managed Wi-Fi and cybersecurity tools. Cable One’s infrastructure supports both traditional cable offerings and converged IP-based platforms designed to meet evolving customer needs.

In addition to consumer-focused services, Cable One caters to small and medium-sized enterprises with dedicated business-class connectivity, Ethernet solutions and cloud-based voice applications.