Cable One's Q4 Earnings: A Wake-Up Call for Investors!

Ladies and gentlemen, buckle up! We're diving headfirst into the wild world of Q4 earnings, and today's star of the show is Cable One (NYSE:CABO). This isn't your average earnings report—it's a rollercoaster ride of revenue drops, profit plummets, and strategic pivots. So, grab your popcorn and let's get started!



First things first: Cable One's Q4 2024 earnings are out, and they're a mixed bag. Total revenues took a nosedive, plunging 6% year-over-year to $387.2 million. Ouch! That's a steep drop, folks. But here's the kicker: residential data revenues decreased by 5.4%, while business data revenues actually increased by 2.3%. So, what's the deal? Is Cable One's residential business in free fall, or is there a silver lining in the business data segment?

Now, let's talk about profitability. Cable One reported a net loss of $105.2 million for Q4 2024, compared to a net income of $103.5 million in Q4 2023. That's a staggering $208.7 million swing! But before you hit the panic button, remember that this loss is primarily due to non-cash, non-operating charges related to the MBI investment. Still, it's a red flag that investors can't ignore.

But wait, there's more! Cable One's adjusted EBITDA for Q4 2024 was $211 million, a 7% year-over-year decrease. And the adjusted EBITDA margin? It dropped to 54.5% from 55.1% in Q4 2023. Not good, folks. Not good at all.



Now, let's talk about customer acquisition. Cable One's residential data customer base increased by approximately 2,200 subscribers for the year, excluding the impact of customer losses from the expiration of the Affordable Connectivity Program (ACP) and customer gains from a small acquisition. That's a modest increase, but it's better than nothing, right? Wrong! The discontinuation of the ACP led to a loss of approximately 10,000 residential data PSUs. That's a massive hit, folks. A massive hit!

But here's where things get interesting. Cable One has implemented several strategic initiatives to stabilize its residential ARPU. And guess what? It worked! The residential data ARPU was $79.72 for the fourth quarter of 2024, a $0.11 sequential increase from the third quarter of 2024. That's a win, folks. A win!

And the company didn't stop there. Cable One completed significant rebranding and unified billing system migrations, which are expected to yield operational efficiencies and cost savings. Plus, they reported a 25% year-over-year increase in adjusted EBITDA less capital expenditures for Q4 2024, indicating improved capital efficiency. That's a double win, folks. A double win!

But here's the thing: Cable One's performance in Q4 2024 is a wake-up call for investors. The company is facing significant challenges, and its competitors are not. For instance, if a peer company in the cable sector reported a revenue increase or a smaller decline, it would indicate better performance relative to Cable One. And if a competitor reported a net income of $100 million for the same period, it would suggest that Cable One is facing more severe financial difficulties.

So, what's the verdict? Should you buy, sell, or hold Cable One? That's the million-dollar question, folks. But one thing's for sure: Cable One's Q4 2024 earnings are a wake-up call for investors. The company is facing significant challenges, and its competitors are not. So, do your homework, stay informed, and make the right call. Because in the world of investing, there's no room for error. None!