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. In the first quarter, we generated approximately $115 million of free cash flow and $500 million over the past four quarters, providing meaningful flexibility to allocate capital in a disciplined manner. Today, approximately 53% of our markets are multi-gig capable, and we expect to expand that capability to most markets by year-end, reinforcing our ability to meet growing customer demand across the footprint.

The durability of our cash flow allows us to continue prioritizing debt reduction while maintaining the flexibility to invest in the business and support long-term shareholder value creation. Adjusted EBITDA for Q1 of 2026 was $183.3 million or 51.9% of revenues, compared to $202.7 million or 53.3% of revenues in Q1 of 2025. Capital expenditures were $68.4 million in the first quarter, a decrease of 3.8% year-over-year. Adjusted EBITDA less CapEx totaled $114.9 million for Q1 of 2026, compared to $131.6 million in Q1 of last year.

We also had $700 million of undrawn capacity under our $1.25 billion revolving credit facility at quarter end, providing us additional committed capital. For the fourth quarter of 2025, these businesses generated approximately $542 million of LQA revenue and $262 million of LQA adjusted EBITDA, representing year-over-year growth of roughly 17% and 36% respectively. These businesses also grew broadband customers by approximately 22,900 or 7.9% and added over 80,000 new fiber passings during the year. Before we open it up for questions, I'd reiterate that while the current environment remains competitive, the business continues to generate strong cash flow, and we remain focused on disciplined execution and capital allocation.

What went well
  • First-quarter connects improved year-over-year, aided by value-conscious segments and gains in e-commerce and direct-sales channels
  • Generated roughly $115 million of free cash flow in the quarter and about $500 million over the trailing four quarters
  • Operating expenses fell 6% and SG&A declined to 24.7% of revenue from 25.1% on lower programming, labor and billing-conversion costs
  • Repaid $575 million of matured convertible notes and paid down $90.6 million of debt ($86.1 million voluntarily, at attractive discounts)
  • Completed the sale of certain fiber-to-the-tower contract rights for $42 million, recognizing a $26.6 million gain
  • Business-services performance improved through the back half of the quarter under new SVP Ed Butler, across fiber, carrier and enterprise channels
  • Roughly 53% of markets were multi-gig capable, with a target of most markets by year-end, and early customer response to the MSO-wide mobile launch was encouraging
What went wrong
  • Net residential broadband losses of 12,600 with churn concentrated in more competitive markets
  • Total revenue fell 7.3% year-over-year to $353.0 million, with residential data revenue down 5.1% on a 6.1% subscriber decline
  • Adjusted EBITDA declined to $183.3 million (51.9% margin) from $202.7 million (53.3%)
  • Adjusted EBITDA less capital expenditures fell to $114.9 million from $131.6 million a year earlier
  • Net leverage ratio ticked up to 4.0x
  • Management acknowledged that the changes underway were early and not yet meaningfully reflected in results

More on Cable One, Inc.

Reported 2026-04-30 · figures from the Cable One, Inc. Q1 2026 earnings call.

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