Cable One Posts $431.8 Million Q3 Loss and Warns of Debt Maturities

Cable One (NYSE: CABO) reported a net loss of $431.8 million for the third quarter of 2026, compared with net income of $86.5 million a year earlier, in a press release furnished with an 8-K filed Thursday, Nov. 5. The filing also warns that the company may have to seek relief under Chapter 11 of the U.S. Bankruptcy Code if it cannot complete financing or extend near-term debt.

Revenue and cash flow decline

Total revenue was $332.2 million, down from $376.0 million, or 11.7%. Residential data revenue fell 10.3% to $204.1 million, and business data revenue fell 6.7% to $53.6 million. Residential data subscribers and average revenue per unit both declined. Adjusted EBITDA was $159.8 million, down 20.8%, and its margin narrowed to 48.1% from 53.7%. Net cash from operating activities was $92.6 million, down from $156.5 million. Capital expenditures rose 8.6% to $77.9 million.

Chief Executive Jim Holanda said the company made meaningful progress in customer trends, with its best residential data subscriber results in seven quarters and its highest connect activity in three years.

Impairments drive the loss

The loss was driven largely by $412.1 million in non-cash asset impairments. The company said it ran an interim impairment test after a decline in its stock price during the quarter. It recorded $159.0 million on indefinite-lived franchise agreements and $253.1 million on goodwill. The filing also cites a $39.7 million, net of tax, fair value loss on a put option tied to its planned acquisition of the remaining stake in Mega Broadband Investments Holdings LLC (MBI), and a $20.0 million, net of tax, impairment of its MBI equity investment. The company said the impairments do not affect its cash flows or operating strategy.

Debt maturities loom

Cable One had $674.8 million of cash at Sept. 30, up from $152.8 million at the end of 2025. Gross debt rose to $3.55 billion from $3.21 billion, after the company borrowed $500.0 million net under its revolving credit facility during the quarter. Its weighted average cost of debt was 4.8%.

The filing lists debt coming due in the next two years. If the MBI acquisition closes, MBI's $916.2 million of term loans mature Nov. 12, 2027. Cable One's $1.25 billion revolver matures in February 2028, with $1.05 billion drawn. Its $345.0 million of 1.125% convertible notes mature in March 2028, and $694.3 million of its senior secured term loan mature in May 2028. The company says its existing liquidity and cash flow will be insufficient to repay that debt on the maturity dates.

Next steps and the MBI acquisition

The company says it is in discussions to raise capital and to extend some maturities, but it makes no assurances that any financing will be completed. It also said it was in compliance with its financial covenants at Sept. 30 and expects to stay in compliance for the next 12 months, while warning that a breach could trigger defaults and cross-default provisions.

Cable One says it has enough liquidity to pay the full MBI purchase price if a temporary restraining order entered Oct. 9, 2026 is dissolved, but it intends to coordinate that payment with one or more financing transactions. The filing says that if the company cannot complete the MBI deal, it could face claims from other MBI members. The filing dates both that temporary restraining order and litigation brought by CoBank, ACB to Oct. 9, 2026. The company plans to hold MBI separate from its other operations. The company will hold a conference call on the results at 5 p.m. ET on Thursday, Nov. 5.