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- **Subscriber Momentum**: Q3 residential data decline (-1.2%) offset by October connect growth, with churn returning to pre-migration levels.
- **ARPU Stability**: Q3 ARPU increase driven by promotional roll-offs, with stable guidance for Q4 despite retention initiatives.
- **Strategic Growth**: Mobile pilot launch in November and Tech Assist adoption exceed expectations, positioning for long-term customer retention.
- **Debt Reduction**: $313M debt paid in 2025, targeting leverage below 4x as MBI transaction nears completion.
- **Video Transition**: Video subscriber decline continues, but IP conversion and spectrum reallocation support data growth.

**【CEO Summary Section】**
- **Subscriber Trends**: Residential data customers declined by 21,600 in Q3, driven by macroeconomic factors, competitive pressures, and billing migration. However, connects showed year-over-year growth in August, September, and October, with churn improving in October to pre-migration levels.
- **ARPU Stability**: ARPU increased due to promotional roll-offs and pricing changes, but management expects stable ARPU for the remainder of the year, with some downward pressure from retention initiatives.
- **Strategic Initiatives**: Launched a simplified pricing structure, Tech Assist support service (exceeding adoption expectations), and a mobile pilot launching in November. Lift product targeting price-sensitive customers showed strong retention rates.
- **Leadership Transition**: CEO Julia Laulis will retire in 2026, with a search underway for her successor to ensure smooth execution of growth strategies.

**【CFO Financial Commentary】**
- **Revenue Performance**: Total Q3 revenue $376M (-4.5% YoY), driven by video subscriber churn (-16.2%) and data revenue decline (-1.2%).
- **Cost Management**: Operating expenses decreased 8% YoY due to reduced programming costs, while SG&A rose 20% due to non-cash stock comp and platform investments.
- **Free Cash Flow**: Adjusted EBITDA $201.9M (53.7% of revenue), free cash flow $130.1M (64.4% of EBITDA). Debt reduced by $313M in 2025, targeting leverage below 4x.
- **Balance Sheet**: Total debt $3.3B, with $1.2B revolver liquidity. Monetized equity investments ($124M pretax) and repaid $200M debt during the quarter.

**【Q&A Highlights】**
- **Competitive Pressures**: FWA (e.g., AT&T Air) impacting connects, but October connects up YoY and sequential. Mobile pilot expected to reduce churn and enhance customer lifetime value.
- **ARPU and Churn**: ARPU stability expected, with Q3 churn spike (due to billing migration) resolved in October. Q4 gross adds momentum could stabilize broadband losses.
- **Capital Allocation**: Prioritize debt repayment, with $300M+ paid in 2025. Mobile and Tech Assist initiatives to drive long-term growth.
- **Video Decline**: Video subscribers continue to decline, but focus on IP conversion and reallocating spectrum to data capacity.

Cable One, Inc. (CABO) Q3 2025 Earnings Call Transcript

Revenue

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Financing Services Revenue

Other Revenue

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Cost of Financing Services

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Operating Expenses

Selling, General and Administrative Expenses

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CABO

CABO fundamentals

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