Cable One, Inc. Q1 FY2026 earnings call

• Jim has been in role ~70 days, work moving in right direction but not showing in results yet. - Q1 connects improved YOY, early sign strategy gaining traction. Mobile launch ~2 months in, initial response encouraging. - Residential services: 12,600 net broadband customer losses sequentially in Q1; churn elevated in competitive markets; new connects improved driven by value-conscious segments; go-to-market channels like e-commerce and direct sales improved; implementing targeted retention initiatives like speed upgrades, stepped promotional roll-offs, AI tools, new CRM; deepening multi-product relationships; investing in network. - Business services: Under Ed Butler's leadership, moved from assessment to execution, targeted investments in sales enablement, go-to-market discipline, sales training program drove improved results. - Priorities: Strengthen retention and conversion, simplify product set, ensure consistency in go-to-market across footprint; already taking action in these areas to improve customer experience, price value equation, and financial performance.

Total revenues for Q1 2026 were $353 million vs $380.6 million in Q1 2025. Residential video decreased ~$10M, residential data decreased $11.6M (5.1% YOY) due to 6.1% subscriber decline, business data decreased $1M (1.8% YOY). Operating expenses were $93.9M, down 6% YOY. Adjusted EBITDA was $183.3M (51.9% of revenues) vs $202.7M (53.3% of revenues) in Q1 2025. Free cash flow was ~$115M in Q1 2026. Residential services had 12,600 net broadband customer losses sequentially in Q1. Business services showed improvements in the back half of the quarter. Investment partnerships had LQA revenue ~$542M and LQA-adjusted EBITDA ~$262M in Q4 2025 with growth, grew broadband customers ~22,900 and added over 80,000 new fiber passings.

• Focus on strengthening balance sheet, remain proactive in balance sheet management, evaluate markets for optimizing longer term capital solutions. - Merger of Point Broadband with Clearway Fiber on track to close in Q2 2026, anticipate benefits. - Pending acquisition of MBI expected to close in Q4 2026, will remain proactive in balance sheet management related to it. - Work underway will take time to show in results, not expecting full translation in single quarter.

• Forward-looking statements involve risks and uncertainties including those related to future revenue, customer growth, connects, churn rates, ARPU, competitive structure, mobile service benefits, product rollouts, customer retention, billing system migration, network expansion, MBI transaction details, merger of Point Broadband with Clearway Fiber, tax savings, financial performance, capital allocation, leverage ratios, financing plans. - Factors causing actual results to differ from forward-looking statements in earnings release and SEC filings. - Satellite competition and fixed wireless competition pose risks to subscriber base and market share.

Q: Just trying to think about the connects being up year over year, how much from improved offer strategy or expansion of distribution channels and relatedly ARPU dilution from win-back retention efforts.

A: Jim Holanda says connects contributed by expansion of direct sales channel, improvement in e-commerce, targeted segmented offers and price locks in competitive markets; on ARPU, aggressive go-to-market offers and retention efforts impacting ARPU in Q1, still early.

Q: As looking to save customers, pressure on ARPU in back book and color on MBI tracking.

A: Todd says MBI's first quarter net ads down 2,000 but improved from last year, purchase consideration locked in at $480, anticipated debt refinance range $8.95 - $9.25; on ARPU pressure, lower promotional rates and elevated churn in back book put pressure, but focused on adding value to existing customers.

Q: View on satellite broadband competition in rural areas and next steps on balance sheet.

A: Jim says satellite shows up in low quantities but increasing, keep eye on it, competitors formidable; Todd says meaningful debt repayments continued, actively evaluating longer term capital solutions, optimizing balance sheet.

Q: Expecting better subscriber performance while keeping ARPU flat this year and second quarter net add standpoint.

A: Jim says no historical patterns upheld in new competitive environment, opportunities in go-to-market strategies, 40% of footprint still only gig provider, have playbook to defend base.

Q: Sense of gross ads from DSL and EBITDA impact from tower divestment.

A: Jim says over index in connect performance from DSL in 40% footprint, fiber to tower contract sale $42M gross proceeds, revenue disclosed, margin higher than enterprise side.

Q: Updated thoughts on fixed wireless competition and structural market share.

A: Jim says 80% of footprint has one or more FWA competitor, focused on controllable factors, T-Mobile and AT&T deployment slow and steady; structural market share view is wired broadband in ~80% area, other 20% from wireless only, mobile fixed wireless access, satellite.