Cable One Q2 Earnings Call Highlights

Cable One NYSE: CABO reported second-quarter 2026 revenue and adjusted EBITDA declines as elevated residential broadband churn continued to pressure subscriber results, while management pointed to improving customer acquisition activity and ongoing investments in retention, network capabilities and mobile services.

Total revenue was $348.9 million in the quarter, down from $381.1 million a year earlier. Adjusted EBITDA fell to $173.5 million, or 49.7% of revenue, from $203.2 million, or 53.3% of revenue, in the prior-year period.

CEO Jim Holanda said the company’s operating priorities remain focused on retaining existing broadband customers, expanding sales channels and improving its value proposition in markets facing increased competition.

Cable One reported a loss of 17,000 residential broadband customers during the second quarter, which Holanda attributed to elevated churn. He described customer retention as the company’s most important operational priority. The company is using additional speed upgrades, more gradual promotional roll-offs, enhanced retention tools and a broader portfolio of services to address churn.

Residential broadband average revenue per user increased sequentially, supported by promotional roll-offs, changes to the company’s AutoPay Plus program and adoption of higher-value products and services. Those benefits were partly offset by retention initiatives and increased uptake of value-oriented offerings.

Holanda said Cable One expects to use increasingly targeted pricing and retention actions based on the competitive conditions in individual markets. CFO Todd Koetje said the company is willing to accept some pressure on “enterprise ARPU” as it works to acquire more customers and improve longer-term customer growth.

Residential data revenue declined $16.7 million, or 7.3% year over year, as subscriber count fell 6.6% while ARPU remained relatively flat from the prior-year period. On a sequential basis, residential data revenue declined $1 million, or 0.5%.

Management said customer connects improved sequentially in the second quarter and increased in each month of the quarter. Holanda said digital and direct-sales channels represented roughly 35% of sales in the second quarter, compared with less than 10% a year earlier. Digital accounted for about 25% of sales, and Holanda said he expects that channel could rise to 35% to 40% over the next 12 to 18 months.

While direct sales are more expensive than inbound channels, Holanda said he expects the overall customer acquisition cost to increase only slightly and not materially affect margins.

Cable One said competitive pressure remains elevated, particularly in markets with fiber overbuild activity. Management expects the broadband market to include wir...