Cable One, Inc.
For the period ended Sep 30, 2025. Filed Nov 7, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 7, 2025
CABO$4.30-16.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-01.
0001632127-25-000094
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-07.
0001632127-25-000100
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 146 previous paragraphs and 148 current paragraphs.
87 unchanged; 50 reworded; 11 added; 6 removed; 3 previous and 0 current paragraphs rearranged.
Tables are not compared: 13 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (11)
Current report
During the third quarter of 2025, we signed an agreement with a mobile virtual network enabler to launch a pilot mobile service offering in several of our markets. Through this focused initiative, we will explore whether a mobile offering can complement our wired broadband product by delivering added convenience and greater flexibility while strengthening our long-term customer relationships with the ultimate goals of enhancing customer lifetime value, reducing churn and supporting packaging opportunities to reinforce our core broadband business. We currently expect the pilot to launch during the fourth quarter of 2025.
Current report
Business data revenues increased $0.2 million, or 0.4%, with the fiber and carrier portions of the business continuing to experience growth.
Current report
Other revenues decreased $2.4 million, or 9.1%, due primarily to a decrease in regulatory and advertising revenues.
Current report
Income Tax Provision
Current report
Income tax provision was $25.8 million and $15.9 million for the three months ended September 30, 2025 and 2024, respectively, and our effective tax rate was 19.2% and 19.5% for the three months ended September 30, 2025 and 2024, respectively. The increase in income tax provision was due primarily to the tax impact from the sales of equity investments in the current quarter.
Current report
Net Income
Current report
Net income was $86.5 million and $44.2 million for the three months ended September 30, 2025 and 2024, respectively.
Current report
Comparison of Nine Months Ended September 30, 2025 to Nine Months Ended September 30, 2024
Current report
Business data revenues increased $1.6 million, or 0.9%, with the fiber and carrier portions of the business continuing to experience growth.
Current report
Other revenues decreased $3.1 million, or 4.2%, due primarily to a decrease in regulatory and advertising revenues.
Current report
We paid $17.1 million to repurchase $20.4 million aggregate principal amount of outstanding Senior Notes during the three months ended September 30, 2025 and $30.1 million to repurchase $37.3 million aggregate principal amount of outstanding Senior Notes during the nine months ended September 30, 2025. As a result, we recognized $3.2 million and $7.0 million of gains on debt extinguishments during the three and nine months ended September 30, 2025, respectively, within other income in the condensed consolidated statements of operations and comprehensive income (loss).
Removed paragraphs (6)
Previous report
Business data revenues increased $0.7 million, or 1.2%.
Previous report
Comparison of Six Months Ended June 30, 2025 to Six Months Ended June 30, 2024
Previous report
Business data revenues increased $1.4 million, or 1.2%.
Previous report
Income Tax Provision (Benefit)
Previous report
Net Income (Loss)
Previous report
We paid $13.0 million to repurchase $16.9 million of outstanding Senior Notes during the three months ended June 30, 2025 and recognized a $3.9 million gain within other income in the condensed consolidated statements of operations and comprehensive income (loss).
Reworded paragraphs (50)
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®, the brand our customers know and trust, 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 June 30, 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 2.9 million passings as of June 30, 2025. Of these customers, approximately 1,031,000 subscribed to data services, 102,000 subscribed to video services and 99,000 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®, the brand our customers know and trust, 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 September 30, 2025, approximately 76% of our customers were located in seven states: Arizona, Idaho, Mississippi, Missouri, Oklahoma, South Carolina and Texas. We provided services to approximately 1.0 million residential and business customers out of approximately 2.9 million passings as of September 30, 2025. Of these customers, approximately 1,010,000 subscribed to data services, 95,000 subscribed to video services and 97,000 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 six months of 2025, they are residential data (59.7%), business data (15.1%) and residential video (13.0%). 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 nine months of 2025, they are residential data (60.0%), business data (15.1%) and residential video (12.7%). 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
•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 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.
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. In recent periods, we have experienced subscriber losses as a result of increased competition in certain of our markets but believe the 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 potentially capture additional market share. Our broadband plant generally consists of a fiber-to-the-premises ("fiber") 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 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
In recent years, we have made investments in several broadband-centric providers serving non-urban markets that follow various strategies similar to our own. Such strategic investments capitalize on opportunities that may not have existed under a full ownership model, allow us to participate more aggressively in the fiber expansion business and may potentially provide future acquisition or investment opportunities, while allowing our management team to focus on our core business and without burdening our cash flow.
Current wording
In recent years, we have made investments in several broadband-centric providers serving non-urban markets that follow various strategies similar to our own. Such strategic investments were intended to capitalize on opportunities that may not have existed under a full ownership model, in order to allow us to participate more aggressively in the fiber expansion business and potentially provide future monetization, acquisition or investment opportunities, while allowing our management team to focus on our core business and without burdening our cash flow.
Previous wording
The following table summarizes certain key measures of our results of operations (dollars in thousands):
Current wording
The following tables summarize certain key measures of our results of operations (dollars in thousands):
Previous wording
(2)Adjusted EBITDA is a non-GAAP measure. Refer to "Use of Adjusted EBITDA" below for a definition of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net income (loss).
Current wording
(1)Adjusted EBITDA is a non-GAAP measure. Refer to "Use of Adjusted EBITDA" below for a definition of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net income (loss), the most directly comparable GAAP financial measure.
Previous wording
(1)Includes $586.0 million of non-cash asset impairment charges. Refer tothe section entitled "Critical Accounting Policies and Estimates - Impairment Assessments" for further information on these expenses.
Current wording
(2)Amount for the nine months ended September 30, 2025 includes $586.0 million of non-cash asset impairment charges. Refer to the section entitled "Critical Accounting Policies and Estimates - Impairment Assessments" for further information on these expenses.
Previous 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.
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 estimated number of serviceable and marketable homes and businesses passed by our active plant based on available information. 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
Residential data service revenues decreased $1.1 million, or 0.5%, due primarily to a decrease in residential data subscribers, partially offset by a 2.4% increase in ARPU.
Current wording
Residential data service revenues decreased $2.8 million, or 1.2%, due primarily to a decrease in residential data subscribers, partially offset by a 3.2% increase in ARPU.
Previous wording
Residential video service revenues decreased $9.0 million, or 15.8%, due primarily to a decrease in residential video subscribers, partially offset by a rate adjustment enacted during the first quarter of 2025.
Current wording
Residential video service revenues decreased $8.7 million, or 16.2%, due primarily to a decrease in residential video subscribers, partially offset by a rate adjustment enacted during the first quarter of 2025.
Previous wording
Residential voice service revenues decreased $1.5 million, or 17.9%, due primarily to a decrease in residential voice subscribers.
Current wording
Residential voice service revenues decreased $1.1 million, or 13.8%, due primarily to a decrease in residential voice subscribers.
Previous wording
Business other revenues decreased $2.1 million, or 11.5%, due primarily to a decrease in business video subscribers.
Current wording
Business other revenues decreased $2.8 million, or 15.7%, due primarily to a decrease in business video subscribers.
Previous wording
Operating expenses (excluding depreciation and amortization) were $102.4 million for the three months ended June 30, 2025 and decreased $3.5 million, or 3.3%, compared to the three months ended June 30, 2024. The decrease in operating expenses was primarily attributable to $5.2 million of lower programming and franchise costs as a result of video customer losses and a $1.1 million decrease in health insurance costs, partially offset by increases of $1.3 million in maintenance costs, $1.0 million in software costs and $0.7 million in professional services fees. Operating expenses as a percentage of revenues were 26.9% and 26.8% for the three months ended June 30, 2025 and 2024, respectively.
Current wording
Operating expenses (excluding depreciation and amortization) were $96.0 million for the three months ended September 30, 2025 and decreased $8.6 million, or 8.2%, compared to the three months ended September 30, 2024. The decrease in operating expenses was primarily attributable to decreases of $6.7 million in programming and franchise costs as a result of video customer losses, $1.7 million in property and other taxes, $0.7 million in labor and other compensation-related costs and $0.6 million in health insurance costs, partially offset by a $1.2 million increase in maintenance costs. Operating expenses as a percentage of revenues were 25.5% and 26.6% for the three months ended September 30, 2025 and 2024, respectively.
Previous wording
Selling, general and administrative expenses were $92.0 million for the three months ended June 30, 2025 and increased $1.2 million, or 1.4%, compared to the three months ended June 30, 2024. The increase in selling, general and administrative expenses was primarily attributable to a $5.0 million increase in billing system conversion costs, partially offset by a $3.9 million decrease in labor and other compensation-related costs. Selling, general and administrative expenses as a percentage of revenues were 24.1% and 23.0% for the three months ended June 30, 2025 and 2024, respectively.
Current wording
Selling, general and administrative expenses were $100.8 million for the three months ended September 30, 2025 and increased $12.4 million, or 14.0%, compared to the three months ended September 30, 2024. The increase in selling, general and administrative expenses was primarily attributable to increases of $6.6 million in labor and other compensation-related costs driven by non-cash stock-based compensation, $3.8 million in billing system conversion costs and $1.8 million in software costs, partially offset by a $1.1 million decrease in rebranding expenses. Selling, general and administrative expenses as a percentage of revenues were 26.8% and 22.5% for the three months ended September 30, 2025 and 2024, respectively.
Previous wording
Depreciation and amortization expense was $86.1 million for the three months ended June 30, 2025 and increased $0.8 million, or 0.9%, compared to the three months ended June 30, 2024. Depreciation and amortization expense as a percentage of revenues was 22.6% and 21.6% for the three months ended June 30, 2025 and 2024, respectively.
Current wording
Depreciation and amortization expense was $83.3 million for the three months ended September 30, 2025 and decreased $1.8 million, or 2.1%, compared to the three months ended September 30, 2024. Depreciation and amortization expense as a percentage of revenues was 22.2% and 21.6% for the three months ended September 30, 2025 and 2024, respectively.
Previous wording
Interest expense, net, was $33.9 million for the three months ended June 30, 2025 and decreased $1.1 million, or 3.0%, compared to the three months ended June 30, 2024 due primarily to a decrease in interest rates and lower outstanding debt balances.
Current wording
Interest expense, net, was $32.0 million for the three months ended September 30, 2025 and decreased $2.2 million, or 6.4%, compared to the three months ended September 30, 2024 due primarily to lower outstanding debt balances and a decrease in interest rates.
Previous wording
Other expense, net, was $11.4 million for the three months ended June 30, 2025 and consisted primarily of a $15.3 million non-cash loss on fair value adjustment associated with the New MBI Net Option, partially offset by a $3.9 million gain on extinguishments of debt. Other expense, net, was $0.6 million for the three months ended June 30, 2024 and consisted primarily of an $8.4 million non-cash loss on fair value adjustment associated with the Old MBI Net Option, partially offset by a $7.7 million gain related to C-band spectrum relocation funding received from the federal government.
Current wording
Other income, net, was $71.8 million for the three months ended September 30, 2025 and consisted primarily of $67.4 million of gains on sales of equity investments, a $3.2 million gain on debt extinguishments and a $2.1 million non-cash gain on fair value adjustment associated with the New MBI Net Option. 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 Old MBI Net Option.
Previous wording
Equity method investment loss, net, was $21.0 million for the three months ended June 30, 2025 and consisted primarily of our $22.6 million proportionate share of net loss from our Clearwave Fiber investment, partially offset by our $1.4 million proportionate share of net income from our Nextlink investment. Equity method investment loss was $22.3 million for the three months ended June 30, 2024 and consisted of our $21.1 million and $1.3 million proportionate share of net losses from our Clearwave Fiber and MBI investments, respectively.
Current wording
Equity method investment loss, net, was $22.2 million for the three months ended September 30, 2025 and consisted primarily of our $23.5 million proportionate share of net loss from our Clearwave Fiber investment, partially offset by our $1.5 million proportionate share of net income from our Nextlink investment. 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.
Previous wording
Unrealized loss on cash flow hedges and other, net of tax, was $25.1 million for the six months ended June 30, 2025 compared to a $17.6 million unrealized gain for the six months ended June 30, 2024. The $42.7 million change was due to due to a decline in forward interest rates during the six months ended June 30, 2025 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 $3.1 million and $31.2 million for the three months ended September 30, 2025 and 2024, respectively. The $28.1 million decrease was due primarily to a smaller decline in forward interest rates during the three months ended September 30, 2025 compared to the prior year quarter.
Previous wording
Revenues by service offering for the six months ended June 30, 2025 and 2024, together with the percentages of total revenues that each item represented for the periods presented, were as follows (dollars in thousands):
Current wording
Revenues by service offering for the nine months ended September 30, 2025 and 2024, together with the percentages of total revenues that each item represented for the periods presented, were as follows (dollars in thousands):
Previous wording
ARPU for the indicated service offerings for the six months ended June 30, 2025 and 2024 were as follows:
Current wording
ARPU for the indicated service offerings for the nine months ended September 30, 2025 and 2024 were as follows:
Previous wording
Residential data service revenues decreased $11.8 million, or 2.5%, due primarily to a decrease in residential data subscribers.
Current wording
Residential data service revenues decreased $14.5 million, or 2.1%, due primarily to a decrease in residential data subscribers, partially offset by a 0.8% increase in ARPU.
Previous wording
Residential video service revenues decreased $18.6 million, or 15.8%, due primarily to a decrease in residential video subscribers, partially offset by a rate adjustment enacted during the first quarter of 2025.
Current wording
Residential video service revenues decreased $27.3 million, or 15.9%, due primarily to a decrease in residential video subscribers, partially offset by a rate adjustment enacted during the first quarter of 2025.
Previous wording
Residential voice service revenues decreased $3.0 million, or 17.8%, due primarily to a decrease in residential voice subscribers.
Current wording
Residential voice service revenues decreased $4.1 million, or 16.5%, due primarily to a decrease in residential voice subscribers.
Previous wording
Business other revenues decreased $4.4 million, or 11.8%, due primarily to a decrease in business video subscribers.
Current wording
Business other revenues decreased $7.3 million, or 13.0%, due primarily to a decrease in business video subscribers.
Previous wording
Operating expenses (excluding depreciation and amortization) were $202.2 million for the six months ended June 30, 2025 and decreased $10.2 million, or 4.8%, compared to the six months ended June 30, 2024. The decrease in operating expenses was primarily attributable to $10.7 million of lower programming and franchise costs as a result of video customer losses, a $2.0 million decrease in labor and other compensation-related costs and a $1.3 million reduction in network backbone costs, partially offset by increases of $1.4 million in professional services fees, $1.4 million in maintenance costs and $1.2 million in software costs. Operating expenses as a percentage of revenues were 26.5% and 26.6% for the six months ended June 30, 2025 and 2024, respectively.
Current wording
Operating expenses (excluding depreciation and amortization) were $298.2 million for the nine months ended September 30, 2025 and decreased $18.7 million, or 5.9%, compared to the nine months ended September 30, 2024. The decrease in operating expenses was primarily attributable to decreases of $17.3 million in programming and franchise costs as a result of video customer losses, $2.7 million in property and other taxes, $2.7 million in labor and other compensation-related costs and $1.3 million in network backbone costs, partially offset by increases of $2.6 million in maintenance costs, $1.6 million in software costs and $1.2 million in professional services fees. Operating expenses as a percentage of revenues were 26.2% and 26.6% for the nine months ended September 30, 2025 and 2024, respectively.
Previous wording
Selling, general and administrative expenses were $187.4 million for the six months ended June 30, 2025 and increased $6.3 million, or 3.4%, compared to the six months ended June 30, 2024. The increase in selling, general, and administrative expenses was primarily attributable to an $8.6 million increase in billing system conversion costs, a $1.1 million increase in insurance costs and a $0.9 million increase in acquisition-related costs, partially offset by a $3.9 million decrease in labor and other compensation-related costs and a $1.1 million decrease in bad debt expense. Selling, general and administrative expenses as apercentage of revenues were 24.6% and 22.7% for the six months ended June 30, 2025 and 2024, respectively.
Current wording
Selling, general and administrative expenses were $288.2 million for the nine months ended September 30, 2025 and increased $18.6 million, or 6.9%, compared to the nine months ended September 30, 2024. The increase in selling, general, and administrative expenses was primarily attributable to increases of $12.4 million in billing system conversion costs, $2.7 million in labor and other compensation-related costs driven by non-cash stock-based compensation, $2.3 million in software costs and $1.2 million in acquisition-related costs. Selling, general and administrative expenses as apercentage of revenues were 25.3% and 22.6% for the nine months ended September 30, 2025 and 2024, respectively.
Previous wording
Depreciation and amortization expense was $171.6 million for the six months ended June 30, 2025 and increased $0.6 million, or 0.4%, compared to the six months ended June 30, 2024. Depreciation and amortization expense as a percentage of revenues was 22.5% and 21.4% for the six months ended June 30, 2025 and 2024, respectively.
Current wording
Depreciation and amortization expense was $254.9 million for the nine months ended September 30, 2025 and decreased $1.2 million, or 0.5%, compared to the nine months ended September 30, 2024. Depreciation and amortization expense as a percentage of revenues was 22.4% and 21.5% for the nine months ended September 30, 2025 and 2024, respectively.
Previous wording
Asset impairments totaled $586.0 million for the three months ended June 30, 2025, consisting of $497.2 million and $88.8 million of non-cash impairments related to our indefinite-lived franchise agreements and goodwill, respectively. Refer to the section entitled "Critical Accounting Policies and Estimates - Impairment Assessments" for further information.
Current wording
Asset impairments totaled $586.0 million for the nine months ended September 30, 2025, consisting of $497.2 million and $88.8 million of non-cash impairments related to our indefinite-lived franchise agreements and goodwill, respectively, recognized during the second quarter of 2025. Refer to the section entitled "Critical Accounting Policies and Estimates - Impairment Assessments" for further information.
Previous wording
Interest expense, net, was $68.4 million for the six months ended June 30, 2025 and decreased $2.4 million, or 3.4%, compared to the six months ended June 30, 2024 due primarily to a decrease in interest rates and lower outstanding debt balances.
Current wording
Interest expense, net, was $100.4 million for the nine months ended September 30, 2025 and decreased $4.6 million, or 4.4%, compared to the nine months ended September 30, 2024 due primarily to lower outstanding debt balances and a decrease in interest rates.
Previous wording
Other expense, net, was $12.8 million for the six months ended June 30, 2025 and consisted primarily of a $19.9 million non-cash loss on fair value adjustment associated with the New MBI Net Option, partially offset by a $3.9 million gain on extinguishments of debt and a $3.2 million gain on sale of an equity investment. Other expense, net, was $7.8 million for the six months ended June 30, 2024 and consisted primarily of a $15.6 million non-cash loss on fair value adjustment associated with the Old MBI Net Option, partially offset by a $7.7 million gain related to C-band spectrum relocation funding received from the federal government.
Current wording
Other income, net, was $59.0 million for the nine months ended September 30, 2025 and consisted primarily of $70.6 million of gains on sales of equity investments and a $7.0 million gain on debt extinguishments, partially offset by a $17.8 million non-cash loss on fair value adjustment associated with the New MBI Net Option. Other expense, net, was $2.5 million for the nine months ended September 30, 2024 and consisted primarily of a $17.1 million non-cash loss on fair value adjustment associated with the Old MBI Net Option, partially offset by a $7.7 million gain related to C-band spectrum relocation funding received from the federal government and a $6.9 million non-cash gain associated with our Nextlink equity investment.
Previous wording
Income tax benefit was $117.6 million and income tax provision was $14.1 million for the three months ended June 30, 2025 and 2024, respectively, and our effective tax rate was (22.0)% and 18.9% for the three months ended June 30, 2025 and 2024, respectively. The decrease in the effective tax rate was due primarily to a decrease in income tax expense of $129.8 million resulting from the asset impairments recognized in the second quarter of 2025.
Current wording
Income tax benefit was $91.6 million and income tax provision was $47.5 million for the nine months ended September 30, 2025 and 2024, respectively, and our effective tax rate was (26.9)% and 20.4% for the nine months ended September 30, 2025 and 2024, respectively. The decrease in effective tax rate was due primarily to a decrease in income tax expense of $129.6 million resulting from asset impairments recognized in the second quarter of 2025.
Previous wording
Equity method investment loss, net, was $77.9 million for the six months ended June 30, 2025 and consisted of our $77.5 million and $3.3 million proportionate share of net losses from our Clearwave Fiber and MBI investments, respectively, partially offset by our $2.9 million proportionate share of net income from our Nextlink investment. Equity method investment loss was $44.3 million for the six months ended June 30, 2024 and consisted of our $42.8 million and $1.6 million proportionate share of net losses from our Clearwave Fiber and MBI investments, respectively.
Current wording
Equity method investment loss, net, was $100.2 million for the nine months ended September 30, 2025 and consisted of our $101.0 million and $3.5 million proportionate share of net losses from our Clearwave Fiber and MBI investments, respectively, partially offset by our $4.3 million proportionate share of net income from our Nextlink investment. Equity method investment loss, net, was $65.6 million for the nine months ended September 30, 2024 and consisted primarily of our $62.9 million and $2.8 million proportionate share of net losses from our Clearwave Fiber and MBI investments, respectively.
Previous wording
Net loss was $438.0 million for the three months ended June 30, 2025 compared to net income of $38.2 million for the three months ended June 30, 2024, driven largely by the non-cash asset impairments totaling $456.2 million, net of tax, discussed above.
Current wording
Net loss was $348.8 million for the nine months ended September 30, 2025 compared to net income of $119.7 million for the nine months ended September 30, 2024, driven largely by the non-cash asset impairments totaling $456.2 million, net of tax, recognized in the second quarter of 2025.
Previous wording
Unrealized loss on cash flow hedges and other, net of tax, was $10.1 million and $0.7 million for the three months ended June 30, 2025 and 2024, respectively. The $9.4 million increase was due to a larger decline in forward interest rates during the three months ended June 30, 2025 compared to the prior year period.
Current wording
Unrealized loss on cash flow hedges and other, net of tax, was $28.2 million and $13.6 million for the nine months ended September 30, 2025 and 2024, respectively. The $14.6 million increase was due primarily to a larger decline in forward interest rates during the nine months ended September 30, 2025 compared to the prior year period.
Previous wording
Adjusted EBITDA is defined as net income (loss) plus net interest expense, income tax provision (benefit), 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, net equity method investment (income) loss, asset impairments, executive search costs, 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.
Current wording
Adjusted EBITDA is defined as net income (loss) plus net interest expense, income tax provision (benefit), 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, asset impairments, executive search costs, legal settlement of alleged patent infringement, 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
MBI's total revenues for the twelve months ended June 30, 2025 were approximately $320 million and MBI had approximately 210,000 residential and business data customers and a network footprint with approximately 675,000 passings as of June 30, 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 $460 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, 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.
Current wording
MBI's total revenues for the twelve months ended September 30, 2025 were approximately $310 million and MBI had approximately 210,000 residential and business data customers and a network footprint with approximately 675,000 passings as of September 30, 2025. Based on currently available information, if the Call Option or Put Option is exercised and closing occurs on October 1, 2026, 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 $475 million and $495 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 preliminary financial information, past performance and current forecasts and are subject to numerous assumptions and risks including, without limitation, factors that could impact MBI, 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, or if closing occurs earlier or later than October 1, 2026, 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 $59.0 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.
Current wording
The $78.7 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 $32.1 million year-over-year decrease in net cash used in investing activities was due primarily to $20.0 million of cash paid for an equity investment in the prior year period that did not recur, $10.7 million of proceeds from the sale of an equity investment during the current year period and a $3.3 million reduction in cash paid for capital expenditures.
Current wording
The $163.6 million year-over-year decrease in net cash used in investing activities was due primarily to $133.9 million of proceeds from sales of equity investments during the current year period and a $20.0 million equity investment made in the prior year period that did not recur.
Previous wording
The $14.9 million year-over-year decrease in net cash used in financing activities was due primarily to the suspension of the Company's dividend in the second quarter of 2025, partially offset by higher debt repayments.
Current wording
The $108.2 million year-over-year increase in net cash used in financing activities was due primarily to a $142.1 million increase in debt repayments, partially offset by a $33.7 million reduction in dividends as a result of the suspension of the Company's dividend beginning in the second quarter of 2025.
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Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
Asset impairments totaled $586.0 million for the six months ended June 30, 2025, consisting of $497.2 million and $88.8 million of non-cash impairments related to our indefinite-lived franchise agreements and goodwill, respectively. Refer to the section entitled "Critical Accounting Policies and Estimates - Impairment Assessments" for further information.
Previous report — wording carried elsewhere
Income tax benefit was $117.4 million and income tax provision was $31.6 million for the six months ended June 30, 2025 and 2024, respectively, and our effective tax rate was (24.7)% and 20.9% for the six months ended June 30, 2025 and 2024, respectively. The decrease in the effective tax rate was due primarily to a decrease in income tax expense of $129.8 million resulting from the asset impairments recognized in the second quarter of 2025.
Previous report — wording carried elsewhere
Net loss was $435.4 million for the six months ended June 30, 2025 compared to net income of $75.5 million for the six months ended June 30, 2024, driven largely by the non-cash asset impairments totaling $456.2 million, net of tax, discussed above.