When we refer to free cash flow during today's call, we mean adjusted EBITDA less capital expenditures as defined in our earnings release. Reconciliations of non-GAAP financial measures discussed on this call to the most directly comparable GAAP measures can be found in our earnings release or on our website at ir.cableone.net. During the fourth quarter, residential broadband connect activity showed year-over-year growth, while disconnects improved significantly compared to the previous quarter. With a considerable amount of the foundational work largely behind us, our focus is on defending our existing customer base, capitalizing on profitable growth opportunities, and executing on key efficiency initiatives.

As we've noted previously, some of our go-to-market customer acquisition and retention initiatives will put downward pressure on ARPU. Our fiber-based wired network delivers greater reliability, higher speeds, lower latency, and substantial scalable capacity for our broadband customers who continue to demonstrate growing demand for our services. Utilization trends continue to demonstrate that our network is well-suited to meet growing consumer demand. Despite this growth, peak hour downstream and upstream utilization remained at or below 20%, demonstrating that network capacity remains well ahead of demand and will not be a barrier to growth.

Following Verizon's acquisition of Frontier, our overlap with Frontier remains less than 10% of our footprint, and a meaningful portion of that overlap has already been upgraded to fiber over the past several years. Importantly, we view this as a complementary product that strengthens our overall value proposition, increases customer lifetime value, and supports both retention and acquisition within residential broadband. Early engagement has been encouraging, and we believe this channel can drive incremental revenue and deepen our presence in targeted commercial verticals over time. Average monthly installs during the final three months of 2025 increased compared to the prior year period, reflecting improved execution and growing demand across these solutions.

What went well
  • Net residential data losses improved to ~10,700 from 21,600 in Q3, with disconnects down significantly and connects up year-over-year
  • eero adoption reached more than a third of the broadband base (over 80% sell-in), supporting retention
  • Record average data usage of ~835 GB per customer (over 30% exceeding 1 TB) with peak utilization at or below 20%, showing ample network headroom
  • Reduced total debt by $403.4 million in 2025, ending the year with the $1.25 billion revolver fully undrawn and net leverage of 3.9x
  • Generated $516.5 million of full-year free cash flow, with ~85% of debt at fixed or swap-fixed rates below current market
  • Advanced strategic transactions: the MBI put option was exercised (close expected in October, ~$480 million) and the Point Broadband/Clearwave Fiber merger was pending
  • Strengthened leadership with new CEO Jim Holanda and the appointment of Ed Butler as SVP, Business Services, plus a new broker and agent sales channel
What went wrong
  • Fourth-quarter revenue fell 6.1% year-over-year to $363.7 million and adjusted EBITDA declined 8.1% to $193.9 million (margin down 120 bps to 53.3%)
  • Full-year revenue declined to $1.5 billion from $1.58 billion and adjusted EBITDA fell to $801.7 million from $854 million
  • Net subscriber results remained negative amid fixed-wireless and fiber-overbuild competition, with nearly 60% of passings facing gig-capable wired competitors
  • Full-year free cash flow declined to $516.5 million from $567.6 million in 2024
  • Residential video revenue continued to fall on video subscriber churn
  • Fourth-quarter adjusted EBITDA less capital expenditures dropped to $119.9 million from $139.1 million a year earlier

More on Cable One, Inc.

Reported 2026-02-26 · figures from the Cable One, Inc. Q4 2025 earnings call.

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