Cable One, Inc. provides data, video, and voice services to residential and business customers in the United States. Its residential offerings include data services, in-home Wi-Fi signal enhancement, technology support, and network security, along with video services ranging from basic to digital packages with access to hundreds of channels. The company also offers Sparklight TV, an IPTV service with a cloud-based DVR that streams channels through an app on supported devices such as Amazon Firestick, Apple TV, and Android-based smart televisions, without a set-top box. In addition, it provides traditional telecommunications services, residential voice services, fiber optic-based products including dark fiber, E-Line, E-Lan, and E-Access ethernet services, and network-to-network interface connections, as well as data, voice, and video products to business customers such as small to mid-markets, enterprises, and wholesale and carrier customers. Cable One, Inc. was incorporated in 1980 and is headquartered in Phoenix, Arizona.
Cable One's Q2 Collapse, COO Exit, and Mega Broadband Deal Fight
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Q2 earnings miss and subscriber losses Cable One's Q2 revenue fell 8.4% to $348.9M, EPS swung to a $17.60 loss versus an $8.00 profit estimate, and it lost 17,100 residential broadband customers. Adjusted EBITDA dropped to $173.5M from $203.2M. This weakens the profit and growth story that supported its premium valuation, pushing the stock down.
The Q2 miss and subscriber losses are the core fundamental deterioration driving the stock lower.
COO departure adds leadership uncertainty COO Ken Johnson left to become CEO of Bluepeak, sending shares down 8.8%. He oversaw residential and business operations, technology, and digital integration across 24 states. Losing a key executive while the company is struggling with churn and strategy raises doubts about execution, hurting investor confidence.
The COO exit is a new negative event that directly weighed on the stock and adds to management risk.
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Financing talks with GTCR and lenders Cable One is in advanced talks with GTCR and private lenders to raise capital and strengthen its balance sheet, and extended the Mega Broadband purchase deadline to October 9. New money could ease debt worries, but no deal is signed, so uncertainty remains and the stock stays volatile.
The financing talks are a potential lifeline but also highlight the company's capital strain, making the impact mixed.
Lender lawsuit threatens Mega Broadband deal CoBank sued to block Cable One's $480M purchase of a 55% Mega Broadband stake, saying the transfer would deepen insolvency. Shares plunged 35%. The legal fight threatens the deal and raises fears about Cable One's financial health, a major negative for the stock.
The lawsuit is the latest and most severe negative event, directly threatening a key transaction and solvency.
Cable One Plunges 35% After Lender Sues to Block Mega Broadband Deal
Cable One shares cratered 35% after a report that a lender filed a lawsuit seeking to block the cable operator from purchasing a 55% equity stake in Mega Broadband from financial sponsor GTCR. CoBank, which says it holds about $1.1 billion in secured credit issued by Cable One, asked a federal judge in New York to issue an emergency restraining order to prevent the company from transferring about $480 million for the Mega Broadband purchase, according to a Bloomberg report on Friday that cited the lawsuit. Cable One faces a Friday deadline to complete the purchase. The lender said the transfer of funds would make Cable One sink deeper into insolvency and make its remaining assets unreasonably small given its already large debts. Representatives for Cable One, CoBank and GTCR didn't immediately respond to Bloomberg requests for comment.
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CABO · Regulation · Negative Lender CoBank sued to block Cable One's $480M Mega Broadband stake purchase, threatening the deal and deepening insolvency concerns.
CoBank · Regulation · Neutral CoBank filed the lawsuit seeking to block the fund transfer, but the article does not state a clear positive or negative outcome for CoBank itself.
Mega Broadband Investments Holdings LLC · Regulation · Neutral Mega Broadband is the acquisition target whose stake sale is being challenged by the lender's lawsuit; no clear directional impact stated.
GTCR · Regulation · Neutral GTCR is the financial sponsor selling the 55% Mega Broadband stake; the lawsuit could block the sale but no clear directional impact is stated.
Cable One in Advanced Talks on Financing With GTCR and Lenders
Cable One, Inc. announced it is in advanced discussions with GTCR LLC, certain of its existing lenders and a consortium of leading private lending institutions regarding financing transactions to address certain of the Company's forthcoming capital needs. Cable One said it is working towards enhancing its capital structure to position the company to drive growth in shareholder value. Chief Executive Officer Jim Holanda said the contemplated financings are intended to strengthen Cable One's overall financial position, while GTCR Managing Director Stephen J. Jeschke said GTCR has been working closely with Cable One to facilitate a potential transaction that would bring new capital into the business. No definitive agreements have been entered into, and there can be no guarantee that any transaction will materialize. Separately, Cable One and GTCR agreed to extend the deadline for completion of Cable One's purchase of the 55% remaining stake it does not already own in Mega Broadband Investments Holdings LLC to October 9, 2026.
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CABO · Capital · Neutral Cable One is in advanced talks with GTCR and lenders on financing to address forthcoming capital needs and strengthen its capital structure, but no definitive agreements exist.
GTCR · Capital · Positive GTCR is working closely with Cable One to facilitate a potential transaction bringing new capital into the business.
Mega Broadband Investments Holdings LLC · Capital · Neutral The deadline for Cable One's purchase of the remaining 55% stake in Mega Broadband was extended to October 9, 2026.
Cable One Shares Plunge 8.8% as COO Departs to Lead Bluepeak
Cable One shares plunged 8.8% in afternoon trading after broadband provider Bluepeak announced that Cable One's Chief Operating Officer, Ken Johnson, will leave to become Bluepeak's new Chief Executive Officer, effective October 19, 2026. Johnson, who oversaw residential and business operations, technology services, and digital integration across 24 states, will succeed Rich Fish, who is retiring after six years. The leadership transition weighed on investor sentiment, and the stock closed at $23.20, down 8.8% from the previous close. Cable One is down 77.2% since the beginning of the year and trades 86.7% below its 52-week high of $178.48 from October 2025.
CABO · Capital · Negative COO Ken Johnson departs to become CEO of Bluepeak, a leadership loss that weighed on investor sentiment and sent shares down 8.8%.
Bluepeak · Capital · Positive Bluepeak appoints Cable One COO Ken Johnson as its new CEO effective October 19, 2026, a leadership gain for the broadband provider.
Bluepeak Names Ken Johnson as CEO, Rich Fish to Retire
Bluepeak, a fiber internet provider, has named Ken Johnson as its new Chief Executive Officer, effective October 19, 2026, succeeding Rich Fish, who will retire after six years of leading the company's expansion into a multi-state fiber provider. Johnson joins from Cable One, Inc., where he served as Chief Operating Officer, bringing over 30 years of telecommunications experience. During Fish's tenure, Bluepeak expanded into 28 new markets across six states, now passing over 515,000 homes, and offers speeds up to 5 Gig for residential and 10 Gig for businesses. Johnson will focus on completing the fiber transformation and expanding connectivity in the communities Bluepeak serves.
Cable One Q2 Earnings Call Highlights Analyst Questions
Cable One reported second quarter results that missed analyst expectations, with revenue of $348.9 million versus estimates of $350.2 million and a GAAP loss per share of $204.35 compared to the expected $4.91 profit. The company attributed the weak performance to continued residential broadband subscriber losses and elevated churn, with CEO Jim Holanda calling customer retention the most important operational priority. During the earnings call, analysts pressed management on improving penetration rates, financing transactions, customer acquisition costs, ARPU trajectory, and subscriber trend stabilization. Cable One currently trades at $34.04, down from $44.48 just before the earnings release.
Cable One reported second quarter 2026 results with total revenues of $348.9 million, down from $381.1 million a year earlier, and adjusted EBITDA of $173.5 million, or 49.7% of revenues, compared to $203.2 million, or 53.3%, in the prior-year quarter. The company lost 17,000 residential broadband customers during the quarter as elevated churn continued to pressure subscriber results, while residential data revenues declined 7.3% year-over-year. CEO Jim Holanda said improving customer retention is the most important operational priority, and the company is investing in digital and direct sales channels, which now account for roughly 35% of sales, up from less than 10% a year ago. CFO Todd Koetje noted the company reduced debt by $63 million in the quarter and nearly $130 million in the first half of the year, with gross debt at $3.06 billion and cash of $166.2 million at quarter end. Cable One also reaffirmed that full-year capital expenditures are expected to remain consistent with the prior year.
Cable One reports Q2 loss of $17.60 per share, revenue beats estimates
Cable One posted a second-quarter loss of $17.60 per share, far wider than the Zacks Consensus Estimate of a loss of $8.00 per share and a swing from earnings of $3.23 per share a year ago. Revenue came in at $348.93 million, edging past the consensus by 0.33% but down from $381.07 million in the prior-year quarter. The company has missed consensus EPS estimates in each of the last four quarters and beaten revenue estimates only once over that span. Shares have fallen about 61.6% year to date, compared with a 12.8% gain for the S&P 500.
Sparklight No-Contract Home Internet Plans Now Reach Speeds Up to 6 Gig
Sparklight now offers no-contract home internet plans with speeds up to 6 Gig in a growing number of markets, with unlimited data included on all residential plans. The provider serves approximately 1 million residential and business customers across 24 states, concentrating on smaller cities and towns where its associates live and work. Every plan is month to month, with no annual commitment and no early termination fee, allowing households to change speeds or cancel as needs change. Multi-Gig tiers of 2 Gig and 6 Gig are available over the company's fiber-powered network in an expanding footprint, while 300 Mbps and 1 Gig are available across all markets. Sparklight also offers eero WiFi routers for lease, including the eero Pro 7 and, for Multi-Gig customers, the eero Max 7, and provides a low-cost 200 Mbps plan with modem included for eligible families.
CABO · Technology · Positive Sparklight, a subsidiary of Cable One, announces speed upgrades up to 6 Gig and fiber network expansion, enhancing its competitive position.
Cable One’s Sparklight Invested Nearly $1 Billion in Fiber Network Over Three Years
Cable One’s brand Sparklight announced on June 4 that it invested nearly $1 billion over the past three years to expand and enhance its fiber-rich network across a 24-state footprint. The network spans more than 31,000 route miles and is intended to support faster connectivity and greater capacity for residential and business customers. The investment is part of Cable One’s broadband recovery challenge, as the company seeks to stabilize customer trends and improve service quality in smaller U.S. markets. While the stock’s average analyst price target implies 69.19% upside, the consensus rating is Sell, making this more a valuation-recovery setup than a broad bullish call.
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CABO · Capital · Positive Nearly $1B fiber investment over three years to expand network and improve service quality, supporting long-term growth and valuation recovery.
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