NYSE:CABO
Cable One, Inc.
Connecticut and Rhode Island-based residential broadband provider expanding fiber-optic connectivity with mobile services.
Key Metrics
Investment Thesis
Bull Case
Despite recent losses, the company maintains strong operating cash flow of $563.3M which could support a turnaround if cost-cutting measures take effect or new revenue streams emerge from mobile services. The existing fiber infrastructure in two states represents a valuable asset base that could be monetized more effectively if market conditions improve or strategic partnerships are formed.
Bear Case
The company recorded a significant net loss of -$356.5M in 2025 after years of profitability, raising serious concerns about its ability to sustain operations without external financing. High debt obligations and large capital expenditure requirements have severely constrained liquidity, with cash reserves dropping to $152.8M against total liabilities of $4.15B.
About Cable One, Inc.
Cable One, Inc. (CABO) operates as a residential broadband internet service provider primarily serving customers in Connecticut and Rhode Island. The company delivers high-speed internet access through its extensive fiber-optic network while offering mobile services to complement its core connectivity offerings. With a total revenue of $1.50B and significant capital expenditures of $285.3M, the company continues to invest heavily in infrastructure despite facing recent profitability challenges.
Analysis
Management Discussion
The company's financial performance in 2025 deteriorated sharply with a net profit of -$356.5M compared to a positive $14.5M the prior year, driven by substantial non-operating losses and discontinued operations totaling -$137.9M. While operating revenue declined from $1.58B in 2024 to $1.50B in 2025, cash flow from operations remained robust at $563.3M, largely offset by massive capital expenditures of $285.3M and debt repayments of $390.1M.
Industry Overview
The US residential broadband industry is currently undergoing a transition where traditional cable operators face increasing pressure from over-the-top streaming services and new fiber-based competitors. Companies are shifting focus toward bundled mobile services and expanding network coverage to maintain subscriber retention in a saturated market.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $1.71B | $1.68B | $1.58B | $1.50B |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $1.71B | $1.68B | $1.58B | $1.50B |
| Operating Expenses | $1.17B | $1.15B | $1.14B | $1.71B |
| Operating Income | $539.0M | $526.9M | $441.9M | $-207.4M |
| G&A | $350.3M | $354.7M | $366.0M | $381.1M |
| Stock-Based Comp | $22.5M | $29.4M | $31.7M | $42.6M |
| D&A | $350.5M | $342.9M | $341.8M | $338.5M |
| Depreciation | $266.6M | — | — | — |
| Amortization | $83.9M | $73.5M | $66.2M | $61.3M |
| Other OpEx | $816.7M | $796.5M | $771.7M | $1.33B |
| Non-Operating Income | $-163.6M | $-115.5M | $-197.7M | $-99.0M |
| Interest Expense | $137.7M | $170.1M | — | — |
| Interest Income | — | — | — | $7.2M |
| Pre-Tax Income | $375.4M | $411.4M | $244.2M | $-306.4M |
| Income Tax | $126.3M | $89.7M | $25.2M | $-87.9M |
| Continuing Ops | $249.0M | $321.7M | $219.0M | $-218.5M |
| Discontinued Ops | $-14.9M | $-54.3M | $-204.5M | $-137.9M |
| Net Income | $234.1M | $267.4M | $14.5M | $-356.5M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $234.1M | $267.4M | $14.5M | $-356.5M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $346.7M | $342.4M | $279.2M | $306.6M |
| Cash & Equivalents | $215.2M | $190.3M | $153.6M | $152.8M |
| Accounts Receivable | $49.0M | — | — | — |
| Prepaid Expenses | $57.2M | $58.1M | $67.9M | $95.2M |
| Other Current Assets | $25.4M | $94.0M | $57.7M | $58.6M |
| Long-Term Assets | $6.57B | $6.50B | $6.25B | $5.28B |
| Intangibles | $2.67B | $2.60B | $2.53B | $1.97B |
| Goodwill | $928.9M | $928.9M | $929.6M | $840.8M |
| Operating Leases | $11.3M | $10.7M | $8.1M | $7.1M |
| Other LT Assets | $1.95B | $2.04B | $2.08B | $1.91B |
| Total Assets | $6.91B | $6.85B | $6.53B | $5.59B |
| Current Liabilities | $244.2M | $202.8M | $213.9M | $759.3M |
| Accounts Payable | — | $45.0M | $31.9M | $28.1M |
| Current Leases | — | $3.4M | $2.8M | $2.6M |
| Deferred Revenue | $23.7M | $27.2M | $27.9M | $22.7M |
| Taxes Payable | $13.0M | $2.6M | $1.7M | $1.2M |
| Other Current Liab | $207.4M | $124.7M | $149.6M | $704.7M |
| Long-Term Liabilities | $4.91B | $4.77B | $4.52B | $3.40B |
| LT Operating Leases | — | $6.8M | $4.9M | $3.9M |
| Other LT Liab | — | $4.75B | $4.50B | $3.38B |
| Total Liabilities | $5.16B | $4.97B | $4.73B | $4.15B |
| Shareholders' Equity | $1.76B | $1.87B | $1.80B | $1.43B |
| Paid-In Capital | $578.2M | $607.6M | $639.3M | $681.9M |
| Retained Earnings | $1.62B | $1.83B | $1.71B | $1.33B |
| AOCI | $50.0M | $36.7M | $48.1M | $19.4M |
| Treasury Stock | $494.7M | — | — | — |
| Total L&E | $6.91B | $6.85B | $6.53B | $5.59B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $234.1M | $267.4M | $14.5M | $-356.5M |
| Non-Cash Adjustments | $575.8M | $393.8M | $590.9M | $797.1M |
| Working Capital Changes | $-71.8M | $2.0M | $58.8M | $122.7M |
| Cash from Operations | $738.0M | $663.2M | $664.1M | $563.3M |
| Capital Expenditures | $414.1M | $371.0M | $286.4M | $285.3M |
| Cash from Investing | $-448.3M | $-341.9M | $-564.4M | $-154.2M |
| Debt Issuances | $0 | $638.0M | $175.0M | $0 |
| Debt Repayments | $38.8M | $807.6M | $239.0M | $390.1M |
| Share Buybacks | $353.3M | $99.6M | $0 | $0 |
| Dividends Paid | $66.3M | $66.3M | $67.9M | $17.2M |
| Cash from Financing | $-463.4M | $-346.1M | $-136.3M | $-410.0M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-173.7M | $-24.9M | $-36.7M | $-862.0K |
| Beginning Cash | $388.8M | $215.2M | $190.3M | $153.6M |
| Ending Cash | $215.2M | $190.3M | $153.6M | $152.8M |
Frequently Asked Questions
How does Cable One, Inc. make money?
Residential Broadband Internet Services, Mobile Communications Services, and Potential Commercial or Enterprise Connectivity Solutions.
What are the main risks for CABO?
Sustained net losses of $356.5M in 2025 indicating severe profitability erosion, heavy capital expenditure burden of $285.3M impacting free cash flow, high debt levels with significant repayments of $390.1M affecting solvency, and intense competition from national fiber providers like Verizon FiOS and Google Fiber.
What is CABO's competitive advantage?
Deep penetration in the Connecticut and Rhode Island markets with a high-density customer base, extensive legacy fiber-optic infrastructure requiring low marginal costs per user, and strong regulatory relationships facilitating local deployment rights.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.