Cable One Q2 Loss Balloons to $1.16B on $598M Impairment; Equity Nearly Wiped Out
CABO sits 21% above its 52-week low of $33.375.
Summary
Cable One reported a $1.16 billion Q2 net loss after $598 million in asset impairments, collapsing stockholders' equity to $326 million. The core broadband business continues to shrink, and the pending MBI acquisition will add substantial debt.
Key Events · Earnings and Guidance · CABO
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Massive Q2 Net Loss
Net loss of $1.16 billion, or $204.35 per share, driven by $597.7 million in non-cash asset impairments and a $444.0 million non-cash loss on the MBI option fair value adjustment.
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Equity Nearly Wiped Out
Stockholders' equity fell to $326.4 million from $1.43 billion at year-end 2025, primarily due to the net loss and reclassification of the MBI option to a $426 million current liability.
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Core Business Deteriorating
Revenue declined 8.4% YoY to $348.9 million; residential data subscribers fell 6.6% YoY to 870,000. Adjusted EBITDA dropped 14.6% to $173.5 million.
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MBI Acquisition Adds Leverage Risk
The Put Option was exercised in January 2026; estimated Put Price of ~$480 million and MBI's total net indebtedness of ~$920 million upon closing, expected October 1, 2026. The company is actively exploring financing options.
Analysis · CABO · Technology
Cable One's Q2 2026 results reveal a company under severe financial strain. A $1.16 billion net loss — driven by $597.7 million in non-cash impairments to franchise agreements and goodwill, plus a $444 million non-cash loss on the MBI option — has slashed stockholders' equity from $1.43 billion to just $326.4 million. The core business continues to deteriorate: revenue fell 8.4% and residential data subscribers dropped 6.6%. The looming MBI acquisition, with an estimated $480 million put price and $920 million in assumed debt, adds significant leverage risk to an already fragile balance sheet. While the impairments are non-cash, they reflect management's view that future cash flows have materially weakened, and the equity erosion raises real concerns about covenant compliance and financial flexibility.
At the time of this filing, CABO was trading at $40.25 on NYSE in the Technology sector, with a market capitalization of approximately $252.3M. The 52-week trading range was $33.38 to $180.74. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.