Cable ONE’s Earnings Call: Mixed Signals Amid New Initiatives

Cable ONE, Inc ((CABO)) has held its Q3 earnings call. Read on for the main highlights of the call.

Cable ONE, Inc. recently held its earnings call, revealing a mixed sentiment regarding its financial performance and strategic initiatives. The company highlighted significant achievements in debt reduction and improvements in customer connections and churn rates. However, challenges such as subscriber losses, revenue decline, and increased operating expenses were also discussed. While the launch of new mobile services and successful product offerings like Tech Assist are promising, the overall financial performance remains under pressure.

Mobile Service Launch

Cable ONE is set to introduce unlimited mobile plans starting at $25 per line in select markets this November. This strategic move aims to reduce churn, deepen service adoption, and increase customer lifetime value, marking a significant step in the company’s efforts to diversify its offerings and strengthen customer relationships.

Debt Reduction

In a noteworthy financial maneuver, Cable ONE successfully paid down nearly $200 million of debt in the third quarter of 2025. This included $173 million of revolver borrowings and over $20 million of senior notes at a favorable discount, showcasing the company’s commitment to improving its financial health and reducing leverage.

Improved Connects and Churn

The company reported positive trends in customer connections, with August, September, and October outperforming the previous year. Additionally, churn rates in October returned to pre-migration levels, indicating a stabilization in customer retention efforts.

Tech Assist Product Success

Cable ONE’s Tech Assist program, designed to support Wi-Fi connected products, has surpassed expectations. The company plans to launch new versions of this successful product, further enhancing its service portfolio and customer satisfaction.

Subscriber Losses

Despite these successes, Cable ONE faced a decline of 21,600 residential data customers in the third quarter. This was attributed to macroeconomic factors, competitive pressures, promotional roll-offs, and billing migration activities, posing a challenge to the company’s growth trajectory.

Revenue Decline

The third quarter of 2025 saw total revenues fall to $376 million, down from $393.6 million in the same period of 2024. This decline was driven by decreases in residential video and data revenues, highlighting the need for strategic adjustments to counteract these trends.

Increased Churn

The quarter also experienced increased churn, primarily due to promotional roll-offs and billing migration impacts, leading to higher customer losses. This underscores the importance of effective customer retention strategies.

SG&A Expenses Rise

Selling, general, and administrative expenses rose to $100.8 million for Q3 of 2025, compared to $88.4 million in the prior year. This increase was driven by noncash stock-based compensation and other labor costs, impacting the company’s overall expense management.

Forward-Looking Guidance

Looking ahead, Cable ONE provided guidance on key metrics, anticipating stable Average Revenue Per User (ARPU) for the rest of the year. Despite a decline in residential data revenues, ARPU improved, and operating expenses decreased to $96 million, or 25.5% of revenues. Capital expenditures are projected to reach the high $200 million range for the full year, with a focus on cash flow optimization and debt repayment.

In conclusion, Cable ONE’s earnings call painted a picture of both challenges and opportunities. While the company has made strides in debt reduction and customer retention, it faces hurdles in subscriber growth and revenue generation. The introduction of new services and strategic financial management are key to navigating these challenges and achieving long-term success.