In This Article:
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Total Revenue: $380.6 million in Q1 2025, down from $404.3 million in Q1 2024.
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Residential Data Revenue: Decreased by $10.7 million or 4.5% year over year.
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Residential Video Revenue: Decreased by $9.6 million or 15.8% year over year.
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Business Data Revenue: Increased by 1.2% compared to Q1 2024.
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Operating Expenses: $99.9 million or 26.2% of revenues in Q1 2025, down from $106.5 million or 26.3% in Q1 2024.
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SG&A Expenses: $95.4 million in Q1 2025, up from $90.4 million in Q1 2024.
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Net Income: $2.6 million in Q1 2025, down from $37.4 million in Q1 2024.
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Adjusted EBITDA: $203 million in Q1 2025, with a 53.3% margin, compared to $217 million and a 53.7% margin in Q1 2024.
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Capital Expenditures: $71.1 million in Q1 2025, up 8% from Q1 2024.
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Free Cash Flow: Adjusted EBITDA less capital expenditures was $131.6 million in Q1 2025.
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Debt Repayment: Nearly $45 million repaid in the quarter, with total debt repayment exceeding $450 million since Q2 2023.
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Cash and Cash Equivalents: Approximately $149 million as of March 31, 2025.
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Total Debt: Approximately $3.6 billion as of March 31, 2025.
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Net Leverage Ratio: Just north of 4 times on a last quarter annualized basis.
Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Cable One Inc (NYSE:CABO) is executing a multiyear plan aimed at achieving sustained profitable growth in a competitive environment.
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The company has introduced new products like FlexConnect and Internet Lift, targeting value-conscious customers and providing incremental broadband revenue opportunities.
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Cable One Inc (NYSE:CABO) is leveraging strategic infrastructure innovations to support long-term growth, including reengineering new builds for more efficient customer acquisition.
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The company has implemented a homegrown AI-driven churn propensity model to enhance customer retention by identifying and engaging at-risk customers.
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Cable One Inc (NYSE:CABO) has a strong focus on customer retention, with historically low churn rates and deliberate actions to maintain these levels.
Negative Points
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Cable One Inc (NYSE:CABO) experienced a decline in total revenues for Q1 2025, with residential data revenues decreasing by 4.5% year over year.
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The company faced unusual churn events in Q1 2025, including billing migration issues and weather-related disruptions, impacting customer numbers.
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Cable One Inc (NYSE:CABO) reported a decrease in ARPU due to factors like promotional offers and credits issued to customers affected by third-party fiber cuts.
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The decision to suspend the quarterly cash dividend was made to accelerate debt reduction, which may concern some investors seeking regular income.
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Net income for Q1 2025 significantly decreased to $2.6 million from $37.4 million in the same quarter of the previous year, driven by lower income from operations.