Cable One (CABO)
NYSECommunication ServicesTelecommunications ServicesSnapshot 2026-09-04
$25.47-2.26%
Close 2026-09-04 · 1-day change
NYSECommunication ServicesTelecommunications ServicesSnapshot 2026-09-04
Broken: Primary pillar broken — Net income improves to at least $35.8M quarterly: Q2 FY2026 GAAP EPS -204.4 vs target $35.8M net income.
Cable One improved net income to $35.8M in 2026-Q1 from a loss last year. Management focuses on sharpening execution and managing debt, with $90M repayments in 2026-Q1. Free cash flow supports debt management. The company maintains a stable dividend of $2.95 per share.
Revenue declined 7.3% year-over-year in 2026-Q1, and cash from operations fell to $118.2M. Broadband trends are weak, leading Moody's to cut the rating. Earnings estimates have been revised down recently. The company is under market pressure with a 63% drawdown.
The market prices in about 1.5% revenue growth and a cautious outlook with an 84% discount to our fair value. Our view is more optimistic on turnaround potential but acknowledges current execution risks and weak demand.
Breaks if: debt repayments fall below $90M
Continue active management of debt by repaying principal, refinancing, and optimizing capital structure to support financial stability.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround story with a focus on improving operational performance. The current thesis state is weakened due to recent earnings misses and declining financial performance.
The market appears to have priced in a low expectations gap, suggesting that investors are not overly optimistic about CABO's near-term recovery. Valuation is considered cheap compared to peers, but this may reflect the underlying risks.
Fundamentals are likely to remain under pressure in the near term, especially given the elevated risk of another earnings miss. Management's focus on execution and debt management shows mixed results, which may hinder performance.
The thesis hinges on management's ability to improve execution and stabilize financial performance. Additionally, the performance of sector bellwethers like VZ, TMUS, and T will be crucial in shaping CABO's trajectory.
The most important moves since the prior daily snapshot.
Yes, our read has weakened. The latest earnings missed expectations significantly. This suggests ongoing execution issues. CABO also faced pressure from creditors regarding debt management. However, cash from operations has improved. This supports long-term value despite recent challenges.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated as a priority in 3 of last 3 quarters. The Company repaid $90.2 million in 2025-Q4, $90.6 million in 2026-Q1, and $62.8 million in 2026-Q2 through various debt repayments and repurchases. This consistent debt reduction activity aligns with management's stated focus on managing debt and capital structure, indicating ongoing delivery.
“The Company paid down an aggregate $62.8 million principal amount of debt during the second quarter of 2026.”
“The Company paid down an aggregate $90.6 million principal amount of debt during the first quarter of 2026.”
“The Company paid down an aggregate $90.2 million principal amount of debt during the fourth quarter of 2025.”
Breaks if: net income falls below $35.8M
Focus on improving operational execution, customer retention, and simplifying product offerings to enhance performance and create long-term value.
Stated as a priority in 2 of last 2 quarters. Revenues declined from $380.6 million in 2025-Q1 to $348.9 million in 2026-Q2, and Adjusted EBITDA fell from $202.7 million to $173.5 million over the same period. CEO emphasized sharpening execution and customer retention to improve performance, but financials show declining revenue and EBITDA, indicating limited progress so far.
“CEO: 'This is a business with a strong network, attractive markets, meaningful cash flow generation and a significant potential to improve operating performance.'”
“CEO: 'Our focus now is on sharpening execution across the business, particularly in how we go to market, retain customers and simplify our product offering.'”
Breaks if: operating cash flow falls below $118.2M
Breaks if: quarterly revenue falls below $353M
Focus on improving operational execution, customer retention, and simplifying product offerings to enhance performance and create long-term value.
Stated as a priority in 2 of last 2 quarters. Revenues declined from $380.6 million in 2025-Q1 to $348.9 million in 2026-Q2, and Adjusted EBITDA fell from $202.7 million to $173.5 million over the same period. CEO emphasized sharpening execution and customer retention to improve performance, but financials show declining revenue and EBITDA, indicating limited progress so far.
“CEO: 'This is a business with a strong network, attractive markets, meaningful cash flow generation and a significant potential to improve operating performance.'”
“CEO: 'Our focus now is on sharpening execution across the business, particularly in how we go to market, retain customers and simplify our product offering.'”
Over the next 1 to 3 years, CABO's outlook will depend on its operational improvements and external sector conditions. Not investment advice.