Cable One, Inc.

Previous wording

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and accompanying notes included in this Quarterly Report on Form 10-Q and the audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2023 and the related “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” both of which are contained in our 2023 Form 10-K/A. Our results of operations and financial condition discussed herein may not be indicative of our future results and trends.

Current wording

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and accompanying notes included in this Quarterly Report on Form 10-Q and the audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2024 and the related “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” both of which are contained in our 2024 Form 10-K. Our results of operations and financial condition discussed herein may not be indicative of our future results and trends.

Previous wording

We are a leading broadband communications provider delivering exceptional service and enabling our customers to thrive and stay connected to what matters most. We strive to deliver an effortless experience by offering solutions that make our customers’ lives easier, and by relating to them personally as our neighbors and local business partners. Through Sparklight® and the associated Cable One family of brands, we are transforming the future of connectivity with a commitment to innovation, reliability and customer experience. Our robust infrastructure and cutting-edge technology keep our customers connected and help drive progress in education, business and everyday life. We believe the services we provide are critical to the development of new businesses and drive economic growth in the non-metropolitan, secondary and tertiary markets that we serve in 24 Western, Midwestern and Southern states. As of September 30, 2024, approximately 74% of our customers were located in seven states: Arizona, Idaho, Mississippi, Missouri, Oklahoma, South Carolina and Texas. We provided services to approximately 1.1 million residential and business customers out of approximately 2.8 million homes passed as of September 30, 2024. Of these customers, approximately 1,059,000 subscribed to data services, 119,000 subscribed to video services and 109,000 subscribed to voice services.

Current wording

We are a leading broadband communications provider delivering exceptional service and enabling our customers to thrive and stay connected to what matters most. We strive to deliver an effortless experience by offering solutions that make our customers’ lives easier, and by relating to them personally as our neighbors and local business partners. Through Sparklight® and the associated Cable One family of brands, we are transforming the future of connectivity with a commitment to innovation, reliability and customer experience. We believe our robust infrastructure and cutting-edge technology keep our customers connected and help drive progress in education, business and everyday life. We believe the services we provide are critical to the development of new businesses and drive economic growth in the non-metropolitan, secondary and tertiary markets that we serve in 24 Western, Midwestern and Southern states. As of March 31, 2025, approximately 74% of our customers were located in seven states: Arizona, Idaho, Mississippi, Missouri, Oklahoma, South Carolina and Texas. We provided services to approximately 1.1 million residential and business customers out of approximately 2.8 million passings as of March 31, 2025. Of these customers, approximately 1,045,000 subscribed to data services, 108,000 subscribed to video services and 103,000 subscribed to voice services.

Previous wording

We generate substantially all of our revenues through three primary product lines. Ranked by share of our total revenues through the first nine months of 2024, they are residential data (58.4%), residential video (14.4%) and business data (14.3%). The profit margins, growth rates and/or capital intensity of these three primary product lines vary significantly due to competition, product maturity and relative costs.

Current wording

We generate substantially all of our revenues through three primary product lines. Ranked by share of our total revenues through the first three months of 2025, they are residential data (59.1%), business data (15.1%) and residential video (13.3%). The profit margins, growth rates and/or capital intensity of these three primary product lines vary significantly due to competition, product maturity and relative costs.

Previous wording

We focus on growing our higher margin businesses, namely residential data and business data services. Our strategy acknowledges the industry-wide trends of declining profitability of video services and declining revenues from residential voice services. The declining profitability of video services is due primarily to increasing programming costs and retransmission fees and competition from other streaming content providers, and the declining revenues from residential voice services are due primarily to the increasing use of wireless voice services instead of residential voice services. Separately, we have also historically focused on retaining customers who are likely to produce higher relative value over the life of their service relationships with us, are less attracted by discounting, require less support and churn less. This strategy has focused on increasing Adjusted EBITDA, driving higher margins and delivering attractive levels of Adjusted EBITDA less capital expenditures over the long-term.

Current wording

We focus on growing our higher margin businesses, namely residential data and business data services. Our strategy acknowledges the industry-wide trends of declining profitability of video services and declining revenues from residential voice services. The declining profitability of video services is due primarily to increasing programming costs and retransmission fees and competition from other streaming content providers, and the declining revenues from residential voice services are due primarily to the increasing use of wireless voice services instead of residential voice services. Separately, we have also historically focused on retaining customers who are likely to produce higher relative value over the life of their service relationships with us, are less attracted by discounting, require less support and churn less, while more recently supplementing our growth by targeting a broader scope of incremental customers, including those who are more value-conscious. This strategy has focused on increasing Adjusted EBITDA, driving higher margins and delivering attractive levels of Adjusted EBITDA less capital expenditures over the long-term.

Previous wording

•Residential data. We have experienced significant growth in residential data customers and revenues since 2013 and we expect growth for this product line to continue over the long-term. We believe upgrades made in our broadband capacity, our ability to offer higher access speeds than many of our competitors, the reliability and flexibility of our data service offerings, our Wi-Fi support service and continuously growing data usage by consumers and their demand for higher speeds will enable us to continue to grow average monthly revenue per unit ("ARPU") from our existing customers over the long-term and capture additional market share. Our broadband plant generally consists of a fiber-to-the-premises or hybrid fiber-coaxial network with ample unused capacity, and we offer our data customers internet products at some of the fastest speeds available in our markets. We believe that the capacity and reliability of our networks exceeds that of our competitors in most of our markets and best positions us to meet the continuously increasing consumption demands of customers. We experienced elevated growth in residential data revenues during the first two years of the COVID-19 pandemic, which has subsided in recent quarters due in part to macroeconomic headwinds and competition in certain areas of our footprint.

Current wording

•Residential data. We have experienced significant growth in residential data customers and revenues since 2013 and we expect growth for this product line to continue over the long-term, supplemented by growth in related services, such as intelligent Wi-Fi and network security solutions, that we are focused on growing. We believe upgrades made in our broadband capacity, our ability to offer higher access speeds than many of our competitors, the reliability and flexibility of our data service offerings, our Wi-Fi offerings and continuously growing data usage by consumers and their demand for higher speeds will enable us to continue growing average monthly revenue per unit ("ARPU") from our existing customers over the long-term and capture additional market share. Our broadband plant generally consists of a fiber-to-the-premises ("fiber") or hybrid fiber-coaxial ("HFC") network with ample unused capacity, and we offer our data customers internet products at some of the fastest speeds available in our markets. We believe that the capacity and reliability of our networks is equal to or exceeds that of our competitors in most of our markets and best positions us to meet the continuously increasing consumption demands of customers.

Previous wording

•Business data. We have experienced significant growth in business data customers and revenues since 2013. We attribute this growth to our strategic focus on increasing sales to business customers and our efforts to attract enterprise business customers. We expect to experience continued growth in business data customers and revenues over the long-term. Margins for products sold to business customers have remained attractive, which we expect will continue.

Current wording

•Business data. We have experienced significant growth in business data customers and revenues since 2013. We attribute this growth to our strategic focus on increasing sales to business customers and our efforts to attract enterprise and wholesale business customers. We expect to experience continued growth in business data customers and revenues over the long-term. Margins for products sold to business customers have remained attractive, which we expect will continue.

Previous wording

•Residential video. Residential video service is an increasingly fragmented business, with programming costs and retransmission fees continuing to escalate in the face of a proliferation of streaming content alternatives. We intend to continue our strategy of focusing on the higher-margin businesses of residential data and business data while de-emphasizing our video business. As a result of our video strategy, we expect that residential video customers and revenues will continue to decline. We offer Sparklight TV, an internet protocol-based ("IPTV") video service that allows customers with our Sparklight TV app to stream our video channels from the cloud. This transition from linear to IPTV video service enables us to reclaim bandwidth, freeing up network capacity to increase data speeds and capacity across our network.

Current wording

•Residential video. Residential video service is an increasingly fragmented business, with programming costs and retransmission fees continuing to escalate in the face of a proliferation of streaming content alternatives. We intend to continue our strategy of focusing on the higher-margin businesses of residential data and business data services while de-emphasizing our video business. As a result of our video strategy, we expect that residential video customers and revenues will continue to decline. We offer Sparklight TV, an internet protocol-based ("IPTV") video service that allows customers with our Sparklight TV app to stream our video channels from the cloud. This transition from linear to IPTV video service enables us to reclaim bandwidth, freeing up network capacity to increase data speeds and capacity across our network.

Previous wording

We continue to experience increased competition, particularly from telephone companies; fiber, municipal and cooperative overbuilders; fixed wireless access data providers; and over-the-top video providers. Because of the levels of competition we face, we believe it is important to make investments in our infrastructure. In addition, a key objective of our capital allocation process is to invest in initiatives designed to drive revenue and Adjusted EBITDA expansion. We continue to invest capital to, among other things, increase fiber density and coverage, expand our footprint, increase plant and data capacity, enhance network reliability and improve the customer experience. We have rolled out multi-Gigabit download data service to certain markets and currently offer Gigabit download data service to nearly all of our homes passed. We have deployed DOCSIS 3.1, which, together with Sparklight TV, further increases our network capacity and enables future growth in our residential data and business data product lines.

Current wording

We continue to experience increased competition, particularly from telephone companies; fiber, municipal and cooperative overbuilders; fixed wireless data providers; and over-the-top video providers. Because of the levels of competition we face, we believe it is important to make investments in our infrastructure. In addition, a key objective of our capital allocation process is to invest in initiatives designed to drive revenue and Adjusted EBITDA expansion. We continue to invest capital to, among other things, increase fiber density and coverage, expand our footprint, increase plant and data capacity, enhance network reliability and improve the customer experience. We have rolled out multi-Gigabit download data service to over 40% of our markets and currently offer Gigabit download data service to all of our passings. We have also deployed DOCSIS 3.1 and begun the deployment of DOCSIS 4.0, which, together with Sparklight TV, further increases our network capacity and enables future growth in our residential data and business data product lines.

Previous wording

Our primary goals are to continue growing residential data and business data revenues, to increase profit margins and to deliver strong Adjusted EBITDA and Adjusted EBITDA less capital expenditures over the long-term. To achieve these goals, we intend to continue our disciplined cost management approach, remain focused on customers with expected higher relative value, supplement our growth by targeting a broader scope of incremental customers, including those who are more value-conscious, combat competitive threats in our markets through more targeted pricing and product offerings and follow through with further planned investments in broadband plant upgrades, including the deployment of DOCSIS 4.0 capabilities and new data service offerings for residential and business customers. We also plan to seek broadband-related acquisition and strategic investment opportunities in rural markets in addition to the pursuit of organic growth through market expansion projects. Given our strategic focus on our higher margin residential data and business data product lines, we assess our level of capital expenditures relative to Adjusted EBITDA, unlike others in our industry who may compare their capital expenditures to revenues due to their much larger video customer bases.

Current wording

Our primary financial goals are to continue growing residential data and business data revenues, to increase profit margins and to deliver strong Adjusted EBITDA and Adjusted EBITDA less capital expenditures over the long-term. To achieve these goals, we intend to continue our disciplined cost management approach, remain focused on customers with expected higher relative value, supplement our growth by targeting a broader scope of incremental customers, including those who are more value-conscious, combat competitive threats in our markets through more targeted pricing and product offerings and follow through with further planned investments in broadband plant upgrades, including the continued deployment of DOCSIS 4.0 capabilities and new data service offerings for residential and business customers. We also plan to seek broadband-related acquisition and strategic investment opportunities in rural markets in addition to the pursuit of organic growth through market expansion projects. Given our strategic focus on our higher margin residential data and business data product lines, we assess our level of capital expenditures relative to Adjusted EBITDA, unlike others in our industry who may compare their capital expenditures to revenues due to their much larger residential video customer bases.

Previous wording

Key Performance Measures Summary (As Restated)

Current wording

Key Performance Measures Summary

Previous wording

In recent years, our customer mix has shifted away from double- and triple-play packages combining data, video and/or voice services, which is in line with our strategy of focusing on our higher margin residential data and business data product lines. This is largely because some video customers have defected to direct broadcast satellite services and over-the-top offerings and households continue to discontinue residential voice services. In addition, we have focused on selling data-only packages to new customers rather than cross-selling video to these customers.

Current wording

In recent years, our customer mix has shifted away from double- and triple-play packages combining data, video and/or voice services, which is in line with our strategy of focusing on our higher margin residential data and business data product lines. This is largely because some residential video customers have switched to over-the-top offerings and households continue to discontinue residential voice services. In addition, we have focused on selling data-only packages to new customers rather than cross-selling video to these customers.

Previous wording

We use various nonfinancial metrics to measure, manage and monitor our operating performance on an ongoing basis. Such metrics include homes passed, PSUs and customer relationships. Homes passed represents the number of serviceable and marketable homes and businesses passed by our active plant. A PSU represents a single subscription to a particular service offering. Residential bulk multi-dwelling PSUs are generally classified as residential and are counted at the individual unit level. Business voice customers who have multiple voice lines are counted as a single PSU. A customer relationship represents a single customer who subscribes to one or more PSUs.

Current wording

We use various nonfinancial metrics to measure, manage and monitor our operating performance on an ongoing basis. Such metrics include passings, PSUs and customer relationships. Passings represent the number of serviceable and marketable homes and businesses passed by our active plant. A PSU represents a single subscription to a particular service offering. Residential bulk multi-dwelling PSUs are generally classified as residential and are counted at the individual unit level. Business voice customers who have multiple voice lines are counted as a single PSU. A customer relationship represents a single customer who subscribes to one or more PSUs.

Previous wording

We believe homes passed, PSUs and customer relationship counts are useful to investors in evaluating our operating performance. Similar measures with similar titles are common measures used by investors, analysts and peers to compare performance in our industry, although our measures of homes passed, PSUs and customer relationships may not be directly comparable to similarly titled measures reported by other companies.

Current wording

We believe passings, PSUs and customer relationship counts are useful to investors in evaluating our operating performance. Similar measures with similar titles are common measures used by investors, analysts and peers to compare performance in our industry, although our measures of passings, PSUs and customer relationships may not be directly comparable to similarly titled measures reported by other companies.

Previous wording

Residential data service revenues decreased $17.1 million, or 6.9%, due primarily to a 7.1% decrease in ARPU as a result of the implementation of targeted pricing and product offerings in certain markets, including amongst value-conscious customers.

Current wording

Residential data service revenues decreased $10.7 million, or 4.5%, due primarily to a decrease in residential data subscribers and a 3.1% decrease in ARPU as a result of the implementation of targeted pricing and product offerings in certain markets, including amongst value-conscious customers.

Previous wording

Residential video service revenues decreased $8.6 million, or 13.9%, due primarily to a decrease in residential video subscribers, partially offset by a rate adjustment enacted earlier in 2024.

Current wording

Residential video service revenues decreased $9.6 million, or 15.8%, due primarily to a decrease in residential video subscribers, partially offset by a rate adjustment enacted in early 2025.

Previous wording

Residential voice service revenues decreased $1.3 million, or 14.5%, due primarily to a decrease in residential voice subscribers.

Current wording

Residential voice service revenues decreased $1.5 million, or 17.7%, due primarily to a decrease in residential voice subscribers.

Previous wording

Business data revenues increased $1.6 million, or 2.9%, due primarily to an increase in business data subscribers.

Current wording

Business data revenues increased $0.7 million, or 1.2%, due primarily to an increase in business data subscribers.

Previous wording

Business other revenues decreased $1.9 million, or 9.8%, due primarily to a decrease in business video subscribers.

Current wording

Business other revenues decreased $2.3 million, or 12.0%, due primarily to a decrease in business video subscribers.

Previous wording

Operating expenses (excluding depreciation and amortization) were $104.6 million for the three months ended September 30, 2024 and decreased $5.1 million, or 4.6%, compared to the three months ended September 30, 2023. The decrease in operating expenses was primarily attributable to $7.6 million of lower programming and franchise costs as a result of video customer losses and a decrease in labor and other compensation-related costs, partially offset by higher property and other taxes, software costs, utility expenses and professional services fees. Operating expenses as a percentage of revenues were 26.6% and 26.1% for the three months ended September 30, 2024 and 2023, respectively.

Current wording

Operating expenses (excluding depreciation and amortization) were $99.9 million for the three months ended March 31, 2025 and decreased $6.7 million, or 6.3%, compared to the three months ended March 31, 2024. The decrease in operating expenses was primarily attributable to $5.4 million of lower programming and franchise costs as a result of video customer losses and a $2.7 million decrease in labor and other compensation-related costs, partially offset by $1.6 million in higher health insurance costs. Operating expenses as a percentage of revenues were 26.2% and 26.3% for the three months ended March 31, 2025 and 2024, respectively.

Previous wording

Depreciation and amortization expense was $85.2 million for the three months ended September 30, 2024 and increased $2.2 million, or 2.7%, compared to the three months ended September 30, 2023. Depreciation and amortization expense as a percentage of revenues was 21.6% and 19.7% for the three months ended September 30, 2024 and 2023, respectively.

Current wording

Depreciation and amortization expense was $85.5 million for the three months ended March 31, 2025 and decreased $0.2 million, or 0.2%, compared to the three months ended March 31, 2024. Depreciation and amortization expense as a percentage of revenues was 22.5% and 21.2% for the three months ended March 31, 2025 and 2024, respectively.

Previous wording

Interest expense, net, was $34.2 million for the three months ended September 30, 2024 and decreased $4.3 million, or 11.3%, compared to the three months ended September 30, 2023. The decrease in net interest expense was due primarily to lower outstanding debt balances during the three months ended September 30, 2024 compared to the prior year period.

Current wording

Interest expense, net, was $34.5 million for the three months ended March 31, 2025 and decreased $1.3 million, or 3.7%, compared to the three months ended March 31, 2024. The decrease in net interest expense was due primarily to lower outstanding debt balances and interest rates during the three months ended March 31, 2025 compared to the prior year period.

Previous wording

Other income, net, was $5.3 million for the three months ended September 30, 2024 and consisted primarily of a $6.9 million non-cash gain associated with our Nextlink equity investment, partially offset by a $1.5 million non-cash loss on fair value adjustment associated with the MBI Net Option. Other expense, net, was $25.4 million for the three months ended September 30, 2023 and consisted primarily of a $23.9 million non-cash loss on fair value adjustment associated with the MBI Net Option and a $1.6 million net loss on the sale of equity investments.

Current wording

Other expense, net, was $1.4 million for the three months ended March 31, 2025 and consisted primarily of a $4.7 million non-cash loss on fair value adjustment associated with the New MBI Net Option, partially offset by a $3.2 million gain on sale of an equity investment. Other expense, net, was $7.1 million for the three months ended March 31, 2024 and consisted primarily of a $7.2 million non-cash loss on fair value adjustment associated with the Old MBI Net Option.

Previous wording

Income tax provision was $15.9 million and $17.3 million for the three months ended September 30, 2024 and 2023, respectively, and our effective tax rate was 19.5% and 25.2% for the three months ended September 30, 2024 and 2023, respectively. The decrease in the effective tax rate was due primarily to an increase in income tax benefits of $5.4 million resulting from a change in valuation allowance related to the fair value adjustment of the MBI Net Option in the current period.

Current wording

Income tax provision was $0.2 million and $17.6 million for the three months ended March 31, 2025 and 2024, respectively, and our effective tax rate was 0.3% and 22.8% for the three months ended March 31, 2025 and 2024, respectively. The decrease in the effective tax rate was due primarily to an increase in income tax benefits of $9.3 million from higher equity method investment net losses and a $4.1 million decrease in income tax expense due to a reduction in the blended state tax rate in the current quarter.

Previous wording

Equity Method Investment Income (Loss), Net (As Restated)

Current wording

Equity Method Investment Income (Loss), Net

Previous wording

Equity method investment loss, net, was $21.3 million for the three months ended September 30, 2024 and consisted primarily of our $20.1 million and $1.2 million proportionate share of net losses from our Clearwave Fiber and MBI investments, respectively. Equity method investment loss, net, was $21.1 million for the three months ended September 30, 2023 and consisted primarily of our $20.7 million and $0.4 million proportionate share of net losses from our Clearwave Fiber and MBI investments, respectively.

Current wording

Equity method investment loss, net, was $57.0 million for the three months ended March 31, 2025 and consisted of our $54.9 million and $3.5 million proportionate share of net losses from our Clearwave Fiber and MBI investments, respectively, partially offset by our $1.4 million proportionate share of net income from our Nextlink investment. Our proportionate share of Clearwave Fiber's net loss included $28.0 million of non-cash impairment charges incurred by Clearwave Fiber. Equity method investment loss, net, was $22.0 million for the three months ended March 31, 2024 and consisted of our $21.7 million and $0.3 million proportionate share of net losses from our Clearwave Fiber and MBI investments, respectively.

Previous wording

Unrealized loss on cash flow hedges and other, net of tax, was $31.2 million for the three months ended September 30, 2024 compared to an $18.6 million unrealized gain for the three months ended September 30, 2023. The $49.7 million change was due to a decline in forward interest rates during the three months ended September 30, 2024 compared to an increase in forward interest rates in the prior year period.

Current wording

Unrealized loss on cash flow hedges and other, net of tax, was $15.0 million for the three months ended March 31, 2025 compared to an $18.3 million unrealized gain for the three months ended March 31, 2024. The $33.3 million change was due to a decline in forward interest rates during the three months ended March 31, 2025 compared to an increase in forward interest rates in the prior year period.

Previous wording

Adjusted EBITDA is defined as net income plus net interest expense, income tax provision, depreciation and amortization, equity-based compensation, severance and contract termination costs, acquisition-related costs, net (gain) loss on asset sales and disposals, system conversion costs, rebranding costs, government program exit costs, net equity method investment (income) loss, net other (income) expense and any special items, as provided in the reconciliation tables below. As such, it eliminates the significant non-cash depreciation and amortization expense that results from the capital-intensive nature of our business as well as other non-cash or special items and is unaffected by our capital structure or investment activities. This measure is limited in that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues and our cash cost of debt financing. These costs are evaluated through other financial measures.

Current wording

Adjusted EBITDA is defined as net income plus net interest expense, income tax provision, depreciation and amortization, equity-based compensation, severance and contract termination costs, acquisition-related costs, net (gain) loss on asset sales and disposals, system conversion costs, net equity method investment (income) loss, net other (income) expense and any special items, as applicable, provided in the reconciliation tables below. As such, it eliminates the significant non-cash depreciation and amortization expense that results from the capital-intensive nature of our business as well as other non-cash or special items and is unaffected by our capital structure or investment activities. This measure is limited in that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues and our cash cost of debt financing. These costs are evaluated through other financial measures.

Previous wording

We use Adjusted EBITDA to assess our performance. In addition, Adjusted EBITDA generally correlates to the measure used in the leverage ratio calculations under the New Credit Agreement and the Senior Notes Indenture to determine compliance with the covenants contained in the New Credit Agreement and the ability to take certain actions under the Senior Notes Indenture. Adjusted EBITDA is also a significant performance measure that we have used in connection with our incentive compensation programs. Adjusted EBITDA does not take into account cash used for mandatory debt service requirements or other non-discretionary expenditures, and thus does not represent residual funds available for discretionary uses.

Current wording

We use Adjusted EBITDA to assess our performance. In addition, Adjusted EBITDA generally correlates to the measure used in the leverage ratio calculations under the Credit Agreement and the Senior Notes Indenture to determine compliance with the covenants contained in the Credit Agreement and the ability to take certain actions under the Senior Notes Indenture. Adjusted EBITDA is also a significant performance measure that we have used in our incentive compensation programs. Adjusted EBITDA does not take into account cash used for mandatory debt service requirements or other non-discretionary expenditures, and thus does not represent residual funds available for discretionary uses.

Previous wording

Our primary funding requirements are for our ongoing operations, capital expenditures, potential acquisitions and strategic investments, payments of quarterly dividends and share repurchases. We believe that our existing cash balances, our Senior Credit Facilities and operating cash flows will provide adequate support for these funding requirements over the next 12 months. However, our ability to utilize those funding sources to fund ongoing operations, make capital expenditures, make future acquisitions and strategic investments, pay quarterly dividends and make share repurchases depends on future operating performance and cash flows, which, in turn, are subject to prevailing economic conditions and to financial, business and other factors, some of which are beyond our control.

Current wording

Our primary funding requirements are for our ongoing operations, capital expenditures, potential acquisitions and strategic investments, debt repayment and share repurchases. We believe that our existing cash balances, our Senior Credit Facilities and operating cash flows will provide adequate support for these funding requirements over the next 12 months. However, our ability to utilize those funding sources to fund ongoing operations, make capital expenditures, make future acquisitions and strategic investments, repay debt and make share repurchases depends on future operating performance and cash flows, which, in turn, are subject to prevailing economic conditions and to financial, business and other factors, some of which are beyond our control.

Previous wording

In connection with our investment in MBI, investors affiliated with GTCR LLC, a private equity firm based in Chicago, have the right, but not the obligation, to sell (and to cause all members of MBI other than us to sell) to us and, in such case, we are obligated to purchase all of the direct and indirect equity interests in MBI that we do not already own, pursuant to such right which may be exercised between July 1, 2025 through September 30, 2025 (the "Put Option"). If the Put Option is exercised, the Put Price payable by us will be calculated under a formula based on a multiple of MBI’s adjusted EBITDA for the twelve-month period ended June 30, 2025 and MBI’s total net indebtedness as specified in the definitive documentation governing our investment in MBI. If the Put Option is exercised, we expect the transaction would be consummated within three to nine months thereafter, subject to customary closing conditions and regulatory approvals. Based on currently available information, if the Put Option is exercised, we estimate that (i) the Put Price payable by us for the equity interests of MBI that we do not already own will range between approximately $760 million and $900 million; and (ii) MBI’s total net indebtedness that will be outstanding at the time it becomes a wholly-owned subsidiary will be approximately $775 million to $825 million. These estimates are based on MBI’s past performance and current forecasts and are subject to numerous assumptions and risks including, without limitation, factors that could impact MBI’s performance, such as competition, economic conditions, operating performance and other factors described under“Cautionary Statement Regarding Forward-Looking Statements” in this Quarterly Report on Form 10-Q. Should the underlying assumptions prove incorrect, or risks materialize, the actual Put Price payable if the Put Option is exercised and the amount of MBI’s indebtedness may differ from the estimated amounts described above. MBI's total revenues for the twelve months ended September 30, 2024 were approximately $320 million and MBI had approximately 226,000 residential and business data customers and a network footprint with approximately 674,000 homes passed as of September 30, 2024. We believe that our existing cash balances, the anticipated available capacity under the Revolving Credit Facility at the time of the transaction and our operating cash flows will be sufficient to fund the purchase price payable if the Put Option is exercised without needing to raise additional incremental capital. However, we may also opportunistically pursue additional incremental financing transactions depending on market conditions and other factors.

Current wording

MBI's total revenues for the twelve months ended March 31, 2025 were approximately $320 million and MBI had approximately 220,000 residential and business data customers and a network footprint with approximately 710,000 passings as of March 31, 2025. Based on currently available information, if the Call Option or Put Option is exercised, we estimate that (i) the Call Price or Put Price payable by us for the equity interests of MBI that we do not already own will range between approximately $410 million and $510 million; and (ii) MBI’s total net indebtedness that will be outstanding at the time it becomes a wholly-owned subsidiary will be approximately $845 million to $895 million. These estimates are based on MBI’s past performance and current forecasts and are subject to numerous assumptions and risks including, without limitation, factors that could impact MBI’s performance, such as competition, economic conditions, operating performance and other factors described under“Cautionary Statement Regarding Forward-Looking Statements” in this Quarterly Report on Form 10-Q. Should the underlying assumptions prove incorrect, or if any of those risks materialize, the actual Call Price or Put Price payable upon the closing of an exercise of the Call Option or Put Option and the amount of MBI’s indebtedness outstanding at that time may differ from the estimated amounts described above.

Previous wording

The $15.0 million year-over-year decrease in net cash provided by operating activities was primarily attributable toa decrease in Adjusted EBITDA, partially offset by favorable changes in working capital.

Current wording

The $48.4 million year-over-year decrease in net cash provided by operating activities was primarily attributable to unfavorable changes in working capital and a decrease in Adjusted EBITDA.

Previous wording

The $29.6 million year-over-year increase in net cash used in investing activities was due primarily to $56.7 million of combined proceeds from the sale of equity investments during the prior year period that did not recur, a $4.5 million increase in cash paid for equity investments and $4.3 million paid for the Nova acquisition, partially offset by a $34.5 million decrease in cash paid for capital expenditures.

Current wording

The $13.4 million year-over-year decrease in net cash used in investing activities was due primarily to $10.7 million of proceeds from the sale of an equity investment during the current year and a $4.3 million reduction in cash paid for capital expenditures.

Previous wording

The $56.5 million year-over-year decrease in net cash used in financing activities was due primarily to payments of $99.6 million for share repurchases and $8.1 million for debt issuance costs during the prior year period that did not recur, partially offset by a $49.4 million increase in net debt repayments.

Current wording

The $10.0 million year-over-year decrease in net cash used in financing activities was due primarily to lower debt repayments.

Previous wording

On May 20, 2022, our Board authorized up to $450.0 million of share repurchases (with no cap as to the number of shares of common stock). We had $143.1 million of remaining share repurchase authorization under the Share Repurchase Program as of September 30, 2024. Additional purchases under the Share Repurchase Program may be made from time to time on the open market and in privately negotiated transactions. The size and timing of these purchases are based on a number of factors, including share price and business and market conditions. Since we first became publicly traded in 2015 through September 30, 2024, we have repurchased 646,244 shares of our common stock at an aggregate cost of $556.9 million. We may, from time to time, continue to opportunistically repurchase shares depending on the trading price of our common stock, market conditions and other factors. We did not repurchase any shares during the nine months ended September 30, 2024.

Current wording

On May 20, 2022, the Board authorized up to $450.0 million of share repurchases (with no cap as to the number of shares of common stock). We had $143.1 million of remaining share repurchase authorization under the Share Repurchase Program as of March 31, 2025. Additional purchases under the Share Repurchase Program may be made from time to time on the open market and in privately negotiated transactions. The size and timing of these purchases are based on a number of factors, including share price and business and market conditions. Since we first became publicly traded in 2015 through March 31, 2025, we have repurchased 646,244 shares of our common stock at an aggregate cost of $556.9 million. We may, from time to time, continue to opportunistically repurchase shares depending on the trading price of our common stock, market conditions and other factors. We did not repurchase any shares during the three months ended March 31, 2025 or 2024.

Previous wording

We currently expect to continue to pay comparable quarterly cash dividends on shares of our common stock, subject to approval of the Board. During the third quarter of 2024, the Board approved a quarterly dividend of $2.95 per share of common stock, which was paid on September 13, 2024, resulting in a total dividend distribution of $17.0 million.

Current wording

During the first quarter of 2025, the Board approved a quarterly dividend of $2.95 per share of common stock, which was paid on March 7, 2025, resulting in a total dividend distribution of $17.2 million. In the second quarter of 2025, after careful consideration and extensive review of our capital allocation strategy, we have decided to suspend the quarterly cash dividend paid on common shares. This change represents approximately $67 million annually and over $200 million over the next three years that we will be able to allocate to accelerated debt repayment, refinancing support and ongoing investment in organic growth initiatives.

Previous wording

Prior to February 22, 2023, the Credit Agreement provided for the Term Loan A-2, the Term Loan B-2, the Term Loan B-3, the Term Loan B-4 and the Revolving Credit Facility. The Revolving Credit Facility gives us the ability to issue letters of credit, which reduce the amount available for borrowing under the Revolving Credit Facility.

Current wording

The Credit Agreement provides for the Term Loan B-2, the Term Loan B-3, the Term Loan B-4 and the Revolving Credit Facility. The Revolving Credit Facility also gives us the ability to issue letters of credit, which reduce the amount available for borrowing under the Revolving Credit Facility. No letters of credit were issued under the Revolving Credit Facility as of March 31, 2025.

Previous wording

Under the New Credit Agreement, the interest margins applicable to the Senior Credit Facilities are, at our option, equal to either SOFR or a base rate, plus an applicable margin equal to, (i) with respect to the Revolving Credit Facility, 1.25% to 1.75% plus a 10 basis point credit spread adjustment for SOFR loans and 0.25% to 0.75% for base rate loans, determined on a quarterly basis by reference to a pricing grid based on our Total Net Leverage Ratio (as defined in the New Credit Agreement), (ii) with respect to the Term Loan B-2 and the Term Loan B-3, 2.25% plus a 10 basis point credit spread adjustment for SOFR loans and 1.25% for base rate loans and (iii) with respect to the Term Loan B-4, 2.0% plus an approximately 11.4 to 42.8 basis point credit spread adjustment based on the interest period elected for SOFR loans and 1.0% for base rate loans.

Current wording

Under the Credit Agreement, the interest margins applicable to the Senior Credit Facilities are, at our option, equal to either SOFR or a base rate, plus an applicable margin equal to, (i) with respect to the Revolving Credit Facility, 1.25% to 1.75% plus a 10 basis point credit spread adjustment for SOFR loans and 0.25% to 0.75% for base rate loans, determined on a quarterly basis by reference to a pricing grid based on our Total Net Leverage Ratio (as defined in the Credit Agreement), (ii) with respect to the Term Loan B-2 and the Term Loan B-3, 2.25% plus a 10 basis point credit spread adjustment for SOFR loans and 1.25% for base rate loans and (iii) with respect to the Term Loan B-4, 2.0% plus an approximately 11.4 to 42.8 basis point credit spread adjustment based on the interest period elected for SOFR loans and 1.0% for base rate loans.

Previous wording

As of September 30, 2024, we had approximately $1.75 billion of aggregate outstanding term loans and $188.0 million of borrowings (and $812.0 million available for borrowing) under the Revolving Credit Facility. A summary of our outstanding term loans as of September 30, 2024 is as follows (dollars in thousands):

Current wording

We repaid $40.0 million of outstanding Revolving Credit Facility borrowings during March 2025. As of March 31, 2025, we had $273.0 million of borrowings under the Revolving Credit Facility that bore interest at an average rate of 6.2% per annum, and had $977.0 million available for borrowing under the Revolving Credit Facility. A summary of our outstanding term loans as of March 31, 2025 is as follows (dollars in thousands):

Previous wording

We repaid $150.0 million of the outstanding Revolving Credit Facility borrowings during 2023. In each of February, April and July of 2024, we repaid $50.0 million of the outstanding Revolving Credit Facility borrowings, reducing the outstanding balance to $188.0 million as of September 30, 2024. The borrowings under the Revolving Credit Facility accrued interest at a rate of 6.70% per annum as of September 30, 2024. In October 2024, we repaid an additional $50.0 million of the outstanding Revolving Credit Facility borrowings.

Current wording

In April 2025, we repaid an additional $10.0 million of outstanding Revolving Credit Facility borrowings.

Previous wording

In November 2020, we completed the offering of $650.0 million aggregate principal amount of Senior Notes due 2030. The Senior Notes bear interest at a rate of 4.00% per annum payable semi-annually in arrears on May 15th and November 15th of each year. The Senior Notes are required to be guaranteed on a senior unsecured basis by each of our existing and future wholly owned domestic subsidiaries that guarantees our obligations under our New Credit Agreement or that guarantees certain capital markets debt of ours or a guarantor in an aggregate principal amount in excess of $250.0 million.

Current wording

In November 2020, we completed the offering of $650.0 million aggregate principal amount of Senior Notes due 2030. The Senior Notes bear interest at a rate of 4.00% per annum payable semi-annually in arrears on May 15th and November 15th of each year, beginning on May 15, 2021. The Senior Notes are required to be guaranteed on a senior unsecured basis by each of our existing and future wholly owned domestic subsidiaries that guarantees our obligations under our Senior Credit Facilities or that guarantee certain of our Notes in an aggregate principal amount in excess of $250.0 million.