Cable One 2025 Q1 Earnings Misses Targets as Net Income Falls 93%
Friday, May 2, 2025 7:22 am ET
3min read Cable One (CABO) reported its fiscal 2025 Q1 earnings on May 01st, 2025. The total revenue of cable one decreased by 5.9% to $380.60 million in 2025 Q1, down from $404.31 million in 2024 Q1. Cable One's EPS declined 93.1% to $0.46 in 2025 Q1 from $6.65 in 2024 Q1. Meanwhile, the company's net income declined to $2.61 million in 2025 Q1, down 93.0% from $37.35 million reported in 2024 Q1. The stock price of Cable One has edged down 2.67% during the latest trading day, has edged up 1.45% during the most recent full trading week, and has edged down 1.42% month-to-date.
The revenue for Cable One in Q1 2025 stood at $380.60 million, reflecting a 5.9% decrease from the previous year. Residential data services generated $225.12 million, while residential video contributed $50.80 million. Residential voice services brought in $7.04 million. Business services, including data and other services, combined for $74.18 million, with business data alone accounting for $57.29 million. The 'other' category added $23.45 million. Altogether, these segments contributed to the total revenue of $380.60 million.
Cable One's EPS dropped significantly by 93.1% to $0.46 in Q1 2025 from $6.65 in Q1 2024. The company's net income also saw a dramatic decline, falling to $2.61 million, marking a 93.0% decrease from the $37.35 million reported in Q1 2024. This result indicates a challenging quarter for the company, with substantial declines in earnings.
The post-earnings price action review for Cable One (CABO) reveals a generally negative short-to-medium-term impact on the stock price following earnings releases. Historically, the stock price has shown a tendency to decline after earnings announcements, with a 3-day win rate of 38.10%, a 10-day win rate of 42.86%, and a 30-day win rate of 23.81%. The average returns over these periods were -2.27%, -2.50%, and -4.74%, respectively, indicating continued downward pressure on the stock price. Even when the stock price does rise, the gains are modest, with a maximum return of only -0.57% observed. Consequently, investors may need to exercise caution and consider these factors when making investment decisions around CABO's earnings events.
CEO Commentary
“We are executing on a multi-year plan to achieve sustained profitable growth in a rapidly changing and more competitive environment,” said Julie Laulis, Cable One President and CEO. Despite a decrease in residential data subscribers during the quarter, the company believes it has the appropriate resources to develop a customer acquisition engine that will foster long-term growth. The decline in residential video revenues reflects the ongoing transition in their video product lifecycle, while business data revenues continue to show durability, indicating a balanced approach to navigating current challenges.
Guidance
The company expects to leverage its existing resources and strategies to build a robust customer acquisition engine that will drive meaningful growth in the long term. Cable One emphasizes a commitment to sustained profitable growth, with a focus on adapting to competitive market dynamics while managing the decline in residential video revenues. The leadership remains optimistic about the potential for future growth despite current challenges.
Additional News
Recently, Cable One made strategic changes to its capital allocation, deciding to suspend its quarterly cash dividend to focus on accelerating debt repayment. This move is expected to free up approximately $67 million annually, allowing the company to allocate more resources to debt reduction and support refinancing efforts. Additionally, the company continues to leverage its strategic partnership with Mega Broadband Investments Holdings LLC (MBI). Cable One has a call option to acquire the remaining stake in MBI, which it can exercise after the availability of MBI's financials for June 30, 2025. This strategic realignment is intended to enhance Cable One's financial flexibility and sustain its growth trajectory in an increasingly competitive broadband market.
The revenue for Cable One in Q1 2025 stood at $380.60 million, reflecting a 5.9% decrease from the previous year. Residential data services generated $225.12 million, while residential video contributed $50.80 million. Residential voice services brought in $7.04 million. Business services, including data and other services, combined for $74.18 million, with business data alone accounting for $57.29 million. The 'other' category added $23.45 million. Altogether, these segments contributed to the total revenue of $380.60 million.
Cable One's EPS dropped significantly by 93.1% to $0.46 in Q1 2025 from $6.65 in Q1 2024. The company's net income also saw a dramatic decline, falling to $2.61 million, marking a 93.0% decrease from the $37.35 million reported in Q1 2024. This result indicates a challenging quarter for the company, with substantial declines in earnings.
The post-earnings price action review for Cable One (CABO) reveals a generally negative short-to-medium-term impact on the stock price following earnings releases. Historically, the stock price has shown a tendency to decline after earnings announcements, with a 3-day win rate of 38.10%, a 10-day win rate of 42.86%, and a 30-day win rate of 23.81%. The average returns over these periods were -2.27%, -2.50%, and -4.74%, respectively, indicating continued downward pressure on the stock price. Even when the stock price does rise, the gains are modest, with a maximum return of only -0.57% observed. Consequently, investors may need to exercise caution and consider these factors when making investment decisions around CABO's earnings events.
CEO Commentary
“We are executing on a multi-year plan to achieve sustained profitable growth in a rapidly changing and more competitive environment,” said Julie Laulis, Cable One President and CEO. Despite a decrease in residential data subscribers during the quarter, the company believes it has the appropriate resources to develop a customer acquisition engine that will foster long-term growth. The decline in residential video revenues reflects the ongoing transition in their video product lifecycle, while business data revenues continue to show durability, indicating a balanced approach to navigating current challenges.
Guidance
The company expects to leverage its existing resources and strategies to build a robust customer acquisition engine that will drive meaningful growth in the long term. Cable One emphasizes a commitment to sustained profitable growth, with a focus on adapting to competitive market dynamics while managing the decline in residential video revenues. The leadership remains optimistic about the potential for future growth despite current challenges.
Additional News
Recently, Cable One made strategic changes to its capital allocation, deciding to suspend its quarterly cash dividend to focus on accelerating debt repayment. This move is expected to free up approximately $67 million annually, allowing the company to allocate more resources to debt reduction and support refinancing efforts. Additionally, the company continues to leverage its strategic partnership with Mega Broadband Investments Holdings LLC (MBI). Cable One has a call option to acquire the remaining stake in MBI, which it can exercise after the availability of MBI's financials for June 30, 2025. This strategic realignment is intended to enhance Cable One's financial flexibility and sustain its growth trajectory in an increasingly competitive broadband market.
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