Cable One 2025 Q2 Earnings Misses Targets with Net Income Plummeting 1248%

Cable One (CABO) reported its fiscal 2025 Q2 earnings on Jul 31st, 2025. Despite expectations, Cable One's earnings results fell short, marked by a significant net loss driven by asset impairments. The company adjusted its guidance to focus on simplified pricing and targeted marketing to bolster future engagement and operational performance.

Revenue
Cable One's total revenue for the second quarter of 2025 fell by 3.4% year-over-year to $381.07 million, down from $394.46 million in 2024 Q2. Residential data revenue held at $229.34 million, while residential video revenue dropped to $48.16 million. Residential voice revenue contributed $6.73 million, and business data revenue slightly increased to $57.38 million. Business other revenue was reported at $16.52 million, alongside other revenue of $22.95 million, culminating in the overall revenue decline.

Earnings/Net Income
Cable One experienced a dramatic shift in earnings, reporting a loss of $77.70 per share in 2025 Q2 compared to a profit of $6.79 per share in the previous year. The company also recorded a net loss of $437.98 million, a stark contrast to the net income of $38.15 million in 2024 Q2. This significant downturn in earnings underscores the challenges faced by the company.

Price Action
The stock price of Cable One has seen a downward trend, declining by 2.44% during the latest trading day, dropping 16.22% over the past full trading week, and experiencing a 5.77% decrease month-to-date.

Post-Earnings Price Action Review
Cable One's strategy of buying shares following a revenue increase on the earnings report day and holding for 30 days has led to notable underperformance. The strategy yielded a return of -93.61%, starkly contrasted against a benchmark return of 85.57%, resulting in an excess return of -179.18%. The compounded annual growth rate was -42.54%, indicating substantial losses over three years. Despite the significant downturn, the strategy's maximum drawdown of 0.00% suggests the holding period was insufficient to capture potential downside risks. The overall investment approach faced substantial adversity, emphasizing the need for reassessment.

CEO Commentary
"While our broadband customer results didn’t meet our expectations in the quarter, we are encouraged that residential data revenue increased modestly compared to the first quarter and that we continued to see residential broadband customer connects increase sequentially month-over-month during the first half of the year," said Julie Laulis, Cable One President and CEO. "We believe our drive toward simplified pricing, segmented marketing campaigns, and value-enhancing product and service offerings is laying the groundwork for stronger customer response and improved operating performance over time."

Guidance
The company anticipates that ongoing efforts in simplified pricing and targeted marketing will support future growth in customer engagement and operational performance. Cable One aims to enhance its product offerings and service value, which is expected to contribute positively to overall revenue trends moving forward.

Additional News
Cable One has been actively managing its debt and liquidity, with significant strides in debt repayment during Q2 2025. The company repaid $70.8 million in debt, including $45 million in Revolver paydowns and $16.9 million in senior notes retirements. This effort has improved its liquidity position, resulting in $1.02 billion of committed excess liquidity under the Revolver as of June 30, 2025. Furthermore, Cable One's strategic focus on infrastructure and technological innovation continues to drive its growth plans, aiming to enhance customer acquisition and retention through AI-driven tools and streamlined operations. The company remains committed to its transformation efforts amidst a competitive broadband market landscape.