Cable One, Inc.
For the period ended Sep 30, 2026. Filed Nov 5, 2026.
View on SEC.govAbout this filing
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, 2026 · Filed Nov 5, 2026
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 2026-06-30; filed 2026-08-06.
0001632127-26-000033
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-05.
0001632127-26-000038
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 153 previous paragraphs and 154 current paragraphs.
85 unchanged; 54 reworded; 14 added; 14 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 16 previous and 16 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 (14)
Current report
Residential data service revenues decreased $23.5 million, or 10.3%, due primarily to a decrease in subscribers and a decline in ARPU as a result of elevated competitive pricing and promotional activity.
Current report
Business data revenues decreased $3.9 million, or 6.7% due primarily to a decrease in subscribers and a decline in business services ARPU.
Current report
Income Tax Provision (Benefit)
Current report
Net Income (Loss)
Current report
Net loss was $431.8 million and net income was $86.5 million for the three months ended September 30, 2026 and 2025, respectively.
Current report
Comparison of Nine Months Ended September 30, 2026 to Nine Months Ended September 30, 2025
Current report
Residential data service revenues decreased $51.8 million, or 7.6%, due primarily to a decrease in subscribers and a decline in ARPU as a result of elevated competitive pricing and promotional activity.
Current report
Business data revenues decreased $8.7 million, or 5.0%, due primarily to a decrease in subscribers and a decline in business services ARPU.
Current report
Our primary funding requirements are for our ongoing operations, capital expenditures, the MBI Acquisition (discussed below) and debt repayment. We believe that our existing cash balances, our Senior Credit Facilities and operating cash flows will provide adequate support for these funding requirements that are expected to arise within 12 months from the filing of this Quarterly Report on Form 10-Q. If the MBI Acquisition is consummated, MBI’s $22.0 million of outstanding borrowings under a revolving credit facility will come due August 2027. Beyond the next 12 months, additional significant amounts of indebtedness will come due at varying times over the subsequent 12-month period, namely: (i) if the MBI Acquisition is consummated, MBI’s $916.2 million of outstanding term loans maturing on November 12, 2027, (ii) our $1.25 billion revolving credit facility maturing in February 2028 (of which $1.05 billion was drawn and outstanding as of September 30, 2026), (iii) our $345.0 million of 1.125% convertible notes due 2028 maturing in March 2028 and (iv) our $694.3 million of outstanding Term Loan B-4 maturing in May 2028. Our existing sources of liquidity and cash flows from operations will be insufficient to repay the debt described above on the applicable maturity dates. Our ability to address these forthcoming debt maturities primarily will depend on our ability to consummate one or more financing transactions and/or to extend the maturity date of the relevant debt through a consensual amendment and extension transaction with the relevant holders of the debt, which transactions are not entirely in our control. We have been and continue to be engaged in discussions to raise capital and address certain of our debt maturities. However, we make no assurances that we will be able to consummate any financing transactions. While we were in compliance with our financial covenants as of September 30, 2026, and expect to remain in compliance for the next 12 months, we may not be able to maintain compliance if operating performance deteriorates or market conditions worsen, particularly if we do not consummate any financing transactions. If we breach a financial covenant and are unable to obtain an amendment or waiver from the applicable lenders or bondholders, the breach could result in an event of default under the terms of our indebtedness and permit our creditors to accelerate repayment of such debt and potentially trigger acceleration of other debt under applicable cross-default or cross-acceleration provisions. If we become obligated to close the MBI Acquisition and are unable to address our forthcoming debt maturities, it is possible that we will not consummate the MBI Acquisition, which could result in a breach under the purchase agreement for the MBI Acquisition and MBI’s limited liability company agreement. In that event, we could become subject to claims by other members of MBI seeking monetary damages and/or specific performance of our obligations…
Excerpt shortened here; the source contains the full paragraph.
Current report
If we are unable to consummate a financing transaction and address near-term debt maturities on acceptable terms or at all, or if a default occurs under our debt instruments that we are unable to timely cure, it may become necessary for us to seek relief under Chapter 11 of the U.S. Bankruptcy Code.
Current report
We intend to hold MBI separate from the balance of our operations to preserve flexibility and mitigate adverse impacts to us in the event that the MBI Acquisition is consummated and MBI’s revolver borrowings and term loans are unable to be refinanced or restructured prior to their respective maturity dates. Over the next 12 months, our ability to utilize the funding sources mentioned previously to fund ongoing operations, make capital expenditures, complete the MBI Acquisition and repay debt 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 report
On October 1, 2026, we and certain affiliates of GTCR LLC agreed to extend the previously anticipated October 1, 2026 closing date of the MBI Acquisition to October 9, 2026. On October 9, 2026, the United States District Court for the Southern District of New York entered an ex parte temporary restraining order that temporarily prohibits us from consummating the MBI Acquisition. The action was commenced by CoBank, a lender under our existing credit agreement. The complaint alleges that our payment of the purchase price for the MBI Acquisition would constitute a constructive fraudulent transfer. CoBank is seeking, among other things, an injunction prohibiting us from closing the MBI Acquisition. On October 13, 2026, we responded to, and simultaneously moved to dissolve, the TRO on the basis that CoBank failed to establish a basis for injunctive relief. A hearing on that motion and on the TRO is currently scheduled for November 13, 2026. On November 2, 2026, we received a letter from MBI and GTCR Fund XII/B LP, Mega Broadband Splitter LP, and GTCR Co-Invest XII LP (collectively, the “GTCR Investors”) alleging that we and Major Merger Sub LLC (“Merger Sub”) breached our obligations under: (i) the Third Amended and Restated Limited Liability Company Agreement dated as of December 20, 2024 by and among MBI and the Unitholders; and (ii) the Purchase Agreement dated as of January 3, 2026, by and among us, Merger Sub, MBI, Mega Broadband Blocker, LLC, GTCR Fund XII/C LP, and GTCR Fund XII/B LP (collectively, the “Agreements”). Specifically, MBI and the GTCR Investors allege that we and Merger Sub failed to use our reasonable best efforts to contest and resist the CoBank Action, and to have the related TRO vacated or lifted as promptly as practicable. MBI and the GTCR Investors have indicated that they may seek to intervene in the CoBank Action as soon as November 6, 2026. We believe that these claims are without merit and are prepared to vigorously dispute such claims to the extent litigation arises. Under the terms of the purchase agreement, we are not obligated to close the MBI Acquisition if and for so long as any legal restraint prohibiting the closing (including the TRO) is in effect. Although we have sufficient liquidity to satisfy the purchase price for the MBI Acquisition in full if the TRO is dissolved, we currently intend to coordinate any payment of the purchase price with the closing of one or more financing transactions that address at least some of our outstanding debt maturities. We have been and continue to be engaged in discussions to raise capital and address our near-term debt maturities. However, we make no assurances that we will be able to consummate any financing transactions.
Current report
The Put Price for the equity interests of MBI that we do not already own was determined to be approximately $480 million. As of September 30, 2026, MBI had $22.0 million of revolver borrowings due August 11, 2027 and $916.2 million of outstanding term loans with a scheduled maturity of November 12, 2027.
Current report
On October 8, 2026, we borrowed the remaining $200.0 million available under the Revolving Credit Facility.
Removed paragraphs (14)
Previous report
Residential data service revenues decreased $16.7 million, or 7.3%, due primarily to a decrease in residential data subscribers.
Previous report
Business data revenues decreased $3.8 million, or 6.6% due primarily to a decrease in business data subscribers.
Previous report
Comparison of Six Months Ended June 30, 2026 to Six Months Ended June 30, 2025
Previous report
Residential data service revenues decreased $28.3 million, or 6.2%, due primarily to a decrease in residential data subscribers.
Previous report
Business data revenues decreased $4.8 million, or 4.2%, due primarily to a decrease in business data subscribers.
Previous report
Income Tax Benefit
Previous report
Net Loss
Previous report
Net losses were $1.13 billion and $435.4 million for the six months ended June 30, 2026 and 2025, respectively, driven largely by the non-cash impairments and fair value adjustments discussed above.
Previous report
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Previous report
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Previous report
Our primary funding requirements are for our ongoing operations, capital expenditures, the MBI acquisition (discussed below), 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 that are expected to arise over the next 12 months. However, our ability to utilize those funding sources to fund ongoing operations, make capital expenditures, complete the MBI acquisition, 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 report
Based on currently available information and the expected closing of October 1, 2026, (i) the Put Price payable by us for the equity interests of MBI that we do not already own will be approximately $480 million; and (ii) we estimate that MBI’s total net indebtedness that will be outstanding at the time it becomes a wholly-owned subsidiary will be approximately $920 million (in the form of term loans maturing in November 2027). This estimate of MBI's total indebtedness is based on MBI's preliminary financial information, past performance and current forecasts and is 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.” Should the underlying assumptions prove incorrect, or if any of those risks materialize, the amount of MBI’s total net indebtedness outstanding at that time may differ from the estimated range described above.
Previous report
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 Put Price payable at the closing of the Put Option exercise. However, we may also opportunistically pursue additional incremental financing transactions depending on market conditions and other factors.
Previous report
NM = Not meaningful
Reworded paragraphs (54)
Previous wording
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, 2026, 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 2.8 million passings as of June 30, 2026. Of these customers, approximately 968,000 subscribed to data services, 78,000 subscribed to video services and 87,000 subscribed to voice services.
Current wording
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, 2026. Approximately 75% of our customers were located in seven states: Arizona, Idaho, Mississippi, Missouri, Oklahoma, South Carolina and Texas, as of September 30, 2026. We provided services to approximately 1.0 million residential and business customers out of approximately 2.8 million passings as of September 30, 2026. Of these customers, approximately 960,000 subscribed to data services, 71,000 subscribed to video services and 84,000 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 2026, they are residential data (60.7%), business data (15.7%) and residential video (11.3%). 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 nine months of 2026, they are residential data (61.0%), business data (15.8%) and residential video (11.1%). 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 focus on growing residential data customers and revenues and expect this product line to grow over the long-term, supplemented by growth in related services, such as intelligent Wi-Fi, technology support and network security solutions. In recent periods, we have experienced subscriber losses as a result of increased competition in 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 to earn a consistent 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 (“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.
Current wording
•Residential data. We focus on growing residential data customers and revenues and expect this product line to grow over the long-term, supplemented by growth in related services, such as intelligent Wi-Fi, technology support and network security solutions. In recent periods, we have experienced subscriber losses as a result of increased competition in 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 to earn a consistent 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 are equal to or exceed that of our competitors in most of our markets and best position us to meet the continuously increasing consumption demands of customers.
Previous 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 half of our markets and currently offer Gigabit download data service to all of our passings. We are currently deploying DOCSIS 4.0 capabilities, which, together with Sparklight TV, further increases our network capacity and enables future growth in our residential data and business data product lines. As a result of multi-year investments in our plant and network, we increased broadband capacity and reliability, which has enabled and will continue to enable us to offer even higher download speeds and to support the continually increasing data usage by customers. We believe these investments will reinforce our competitive strength in this area.
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 half of our markets and currently offer Gigabit download data service to all of our passings. We are currently deploying DOCSIS 4.0 capabilities, which, together with Sparklight TV, further increase our network capacity and enable future growth in our residential data and business data product lines. As a result of multi-year investments in our plant and network, we increased broadband capacity and reliability, which has enabled and will continue to enable us to offer even higher download speeds and to support the continually increasing data usage by customers. We believe these investments will reinforce our competitive strength in this area.
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 loss, the most directly comparable GAAP financial measure.
Current 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), the most directly comparable GAAP financial measure.
Previous wording
(1)Amounts for the three and six months ended June 30, 2026 reflect $597.7 million of non-cash asset impairment charges. Refer to the section entitled "Critical Accounting Policies and Estimates — Impairment Assessments" for further information. Amounts for the three and six months ended June 30, 2025 reflect $586.0 million of non-cash asset impairment charges.
Current wording
(3)Amounts for the nine months ended September 30, 2026 and 2025 include $1.01 billion and $586.0 million of non-cash asset impairment charges. Refer to the section entitled "Critical Accounting Policies and Estimates — Impairment Assessments" for further information.
Previous wording
Residential video service revenues decreased $9.7 million, or 20.1%, due primarily to a decrease in residential video subscribers, partially offset by a rate adjustment enacted in the second half of 2025.
Current wording
Residential video service revenues decreased $9.3 million, or 20.7%, due primarily to a decrease in subscribers, partially offset by a rate adjustment.
Previous wording
Residential voice service revenues decreased $0.5 million, or 6.9%, due primarily to a decrease in residential voice subscribers.
Current wording
Residential voice service revenues decreased $0.8 million, or 11.7%, due primarily to a decrease in subscribers.
Previous wording
Business other revenues decreased $5.0 million, or 14.9%, due primarily to a decrease in business video subscribers.
Current wording
Business other revenues decreased $1.8 million, or 12.1%, due primarily to decreases in business video and business voice subscribers.
Previous wording
Operating expenses (excluding depreciation and amortization) were $98.7 million for the three months ended June 30, 2026 and decreased $3.6 million, or 3.5%, compared to the three months ended June 30, 2025. 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 and $1.6 million in maintenance costs, partially offset by a $4.3 million increase in software costs. Operating expenses as a percentage of revenues were 28.3% and 26.9% for the three months ended June 30, 2026 and 2025, respectively.
Current wording
Operating expenses (excluding depreciation and amortization) were $98.7 million for the three months ended September 30, 2026 and increased $2.7 million, or 2.8%, compared to the three months ended September 30, 2025. The increase in operating expenses was primarily attributable to increases of $4.7 million in software costs and $2.6 million in contract labor costs, partially offset by a $3.7 million decrease in programming and franchise costs as a result of video customer losses. Operating expenses as a percentage of revenues were 29.7% and 25.5% for the three months ended September 30, 2026 and 2025, respectively.
Previous wording
Selling, general and administrative expenses were $87.6 million for the three months ended June 30, 2026 and decreased $4.3 million, or 4.7%, compared to the three months ended June 30, 2025. The decrease in selling, general and administrative expenses was primarily attributable to decreases of $6.1 million in labor and other compensation-related costs and $5.6 million in billing system conversion costs, partially offset by increases of $2.3 million in software costs, $1.3 million in bad debt expense, $1.2 million in marketing costs and $0.9 million in health insurance costs. Selling, general and administrative expenses as a percentage of revenues were 25.1% and 24.1% for the three months ended June 30, 2026 and 2025, respectively.
Current wording
Selling, general and administrative expenses were $82.3 million for the three months ended September 30, 2026 and decreased $18.5 million, or 18.4%, compared to the three months ended September 30, 2025. The decrease in selling, general and administrative expenses was primarily attributable to decreases of $14.4 million in labor and other compensation-related costs and $4.8 million in billing system conversion costs. Selling, general and administrative expenses as a percentage of revenues were 24.8% and 26.8% for the three months ended September 30, 2026 and 2025, respectively.
Previous wording
Depreciation and amortization expense was $81.8 million for the three months ended June 30, 2026 and decreased $4.3 million, or 5.0%, compared to the three months ended June 30, 2025. Depreciation and amortization expense as a percentage of revenues was 23.4% and 22.6% for the three months ended June 30, 2026 and 2025, respectively.
Current wording
Depreciation and amortization expense was $81.0 million for the three months ended September 30, 2026 and decreased $2.3 million, or 2.8%, compared to the three months ended September 30, 2025. Depreciation and amortization expense as a percentage of revenues was 24.4% and 22.2% for the three months ended September 30, 2026 and 2025, respectively.
Previous wording
Asset impairments totaled $597.7 million for the six months ended June 30, 2026, consisting of $526.0 million and $71.7 million of non-cash impairments of our indefinite-lived franchise agreements asset and goodwill, respectively. Refer to the section entitled "Critical Accounting Policies and Estimates - Impairment Assessments" for further information. 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 franchise agreements asset and goodwill, respectively.
Current wording
Asset impairments totaled $412.1 million for the three months ended September 30, 2026, consisting of $159.0 million and $253.1 million of non-cash impairments of our indefinite-lived franchise agreements asset and goodwill, respectively. Refer to the section entitled "Critical Accounting Policies and Estimates - Impairment Assessments" for further information.
Previous wording
Interest expense, net, was $64.0 million for the six months ended June 30, 2026 and decreased $4.4 million, or 6.4%, compared to the six months ended June 30, 2025 due primarily to lower outstanding debt balances, partially offset by a higher average interest rate.
Current wording
Interest expense, net, was $34.6 million for the three months ended September 30, 2026 and increased $2.6 million, or 8.2%, compared to the three months ended September 30, 2025 due primarily to a higher average interest rate and higher average debt balances.
Previous wording
Other expense, net, was $431.6 million for the three months ended June 30, 2026 and consisted primarily of a $444.0 million non-cash loss on fair value adjustment associated with the MBI option and a $7.6 million revaluation loss on our Point equity investment, partially offset by $19.9 million of gains on debt extinguishments. 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 MBI Net Option, partially offset by $3.9 million of gains on debt extinguishments.
Current wording
Other expense, net, was $67.0 million for the three months ended September 30, 2026 and consisted primarily of a $52.9 million non-cash loss on fair value adjustment associated with the MBI option, the write-off of $7.0 million of costs associated with abandoned financing deals and $6.9 million of strategic advisory costs. Other expense, 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, $3.2 million of gains on debt extinguishments and a $2.1 million non-cash gain on fair value adjustment associated with the MBI Net Option.
Previous wording
Income tax benefit was $109.5 million and $117.6 million for the three months ended June 30, 2026 and 2025, respectively, and our effective tax benefit rate was 11.1% and 22.0% for the three months ended June 30, 2026 and 2025, respectively. The decrease in the effective tax benefit rate was due primarily to an increase in deferred tax expense resulting from additional valuation allowance recorded in the second quarter of 2026, partially offset by a decrease in deferred tax expense resulting from impairments recognized in the second quarter of 2026.
Current wording
Income tax benefit was $47.2 million and income tax provision was $25.8 million for the three months ended September 30, 2026 and 2025, respectively, and our effective tax benefit rate was 10.6% and effective tax rate was 19.2% for the three months ended September 30, 2026 and 2025, respectively. The change in income tax provision was due primarily to a decrease in deferred tax expense resulting from the asset impairments recognized during the three months ended September 30, 2026.
Previous wording
Equity method investment loss, net, was $283.9 million for the three months ended June 30, 2026 and consisted primarily of a $349.8 million non-cash impairment to the carrying value of our MBI equity investment, partially offset by a $67.7 million upward revaluation of our Clearwave Fiber investment in connection with the Point-Clearwave Fiber Transaction. 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.
Current wording
Equity method investment loss, net, was $34.5 million for the three months ended September 30, 2026 and consisted primarily of a $26.7 million non-cash impairment to the carrying value of our MBI equity investment and our $5.1 million and $4.2 million proportionate shares of MBI and Point net losses, respectively, partially offset by our $1.5 million proportionate share of net income from our Nextlink investment. 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.
Previous wording
Unrealized gain on cash flow hedges and other, net of tax, was $6.4 million for the three months ended June 30, 2026 compared to a $10.1 million loss for the three months ended June 30, 2025. The $16.5 million change was due primarily to an increase in forward interest rates during the three months ended June 30, 2026 compared to a decrease in the prior year period.
Current wording
Unrealized gain on cash flow hedges and other, net of tax, was $13.8 million for the three months ended September 30, 2026 compared to a $3.1 million loss for the three months ended September 30, 2025. The $16.9 million change was due primarily to an increase in forward interest rates during the three months ended September 30, 2026 compared to a decrease in the prior year period.
Previous wording
Revenues by service offering for the six months ended June 30, 2026 and 2025, 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, 2026 and 2025, 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, 2026 and 2025 were as follows:
Current wording
ARPU for the indicated service offerings for the nine months ended September 30, 2026 and 2025 were as follows:
Previous wording
Residential video service revenues decreased $19.7 million, or 19.9%, due primarily to a decrease in residential video subscribers, partially offset by rate adjustments enacted during 2025.
Current wording
Residential video service revenues decreased $29.0 million, or 20.2%, due primarily to a decrease in subscribers, partially offset by rate adjustments.
Previous wording
Residential voice service revenues decreased $1.0 million, or 7.3%, due primarily to a decrease in residential voice subscribers.
Current wording
Residential voice service revenues decreased $1.8 million, or 8.7%, due primarily to a decrease in subscribers.
Previous wording
Business other revenues decreased $2.3 million, or 14.0%, due primarily to a decrease in business video subscribers.
Current wording
Business other revenues decreased $6.8 million, or 14.0%, due primarily to decreases in business video and business voice subscribers.
Previous wording
Operating expenses (excluding depreciation and amortization) were $192.6 million for the six months ended June 30, 2026 and decreased $9.6 million, or 4.7%, compared to the six months ended June 30, 2025. The decrease in operating expenses was primarily attributable to decreases of $13.5 million in programming and franchise costs as a result of video customer losses, $2.0 million in health insurance costs and $1.1 million in professional fees, partially offset by increases of $6.1 million in software costs and $2.4 million in labor and other compensation-related costs. Operating expenses as a percentage of revenues were 27.4% and 26.5% for the six months ended June 30, 2026 and 2025, respectively.
Current wording
Operating expenses (excluding depreciation and amortization) were $291.3 million for the nine months ended September 30, 2026 and decreased $6.9 million, or 2.3%, compared to the nine months ended September 30, 2025. 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 health insurance costs, $1.7 million in backbone costs and $1.4 million in maintenance costs, partially offset by increases of $10.8 million in software costs and $5.4 million in labor and other compensation-related costs. Operating expenses as a percentage of revenues were 28.2% and 26.2% for the nine months ended September 30, 2026 and 2025, respectively.
Previous wording
Selling, general and administrative expenses were $174.8 million for the six months ended June 30, 2026 and decreased $12.6 million, or 6.7%, compared to the six months ended June 30, 2025. The decrease in selling, general, and administrative expenses was primarily attributable to decreases of $9.9 million in labor and other compensation-related costs, $9.2 million in billing system conversion costs and $2.1 million in health insurance costs, partially offset by increases of $3.7 million in software costs, $1.6 million in bad debt expense and $1.4 million in marketing costs. Selling, general and administrative expenses as apercentage of revenues were 24.9% and 24.6% for the six months ended June 30, 2026 and 2025, respectively.
Current wording
Selling, general and administrative expenses were $257.1 million for the nine months ended September 30, 2026 and decreased $31.1 million, or 10.8%, compared to the nine months ended September 30, 2025. The decrease in selling, general, and administrative expenses was primarily attributable to decreases of $24.3 million in labor and other compensation-related costs, $14.1 million in billing system conversion costs and $3.2 million in health insurance costs, partially offset by increases of $5.1 million in software costs, $2.3 million in bad debt expense and $1.8 million in acquisition-related costs. Selling, general and administrative expenses as apercentage of revenues were 24.9% and 25.3% for the nine months ended September 30, 2026 and 2025, respectively.
Previous wording
Depreciation and amortization expense was $164.3 million for the six months ended June 30, 2026 and decreased $7.3 million, or 4.3%, compared to the six months ended June 30, 2025. Depreciation and amortization expense as a percentage of revenues was 23.4% and 22.5% for the six months ended June 30, 2026 and 2025, respectively.
Current wording
Depreciation and amortization expense was $245.3 million for the nine months ended September 30, 2026 and decreased $9.6 million, or 3.8%, compared to the nine months ended September 30, 2025. Depreciation and amortization expense as a percentage of revenues was 23.7% and 22.4% for the nine months ended September 30, 2026 and 2025, respectively.
Previous wording
Asset impairments totaled $597.7 million for the three months ended June 30, 2026, consisting of $526.0 million and $71.7 million of non-cash impairments of our indefinite-lived franchise agreements asset and goodwill, respectively. Refer to the section entitled "Critical Accounting Policies and Estimates - Impairment Assessments" for further information. 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 franchise agreements asset and goodwill, respectively.
Current wording
Asset impairments totaled $1.01 billion for the nine months ended September 30, 2026, consisting of $685.0 million and $324.8 million of non-cash impairments of our indefinite-lived franchise agreements asset and goodwill, respectively, recognized during the second and third quarters of 2026. Refer to the section entitled "Critical Accounting Policies and Estimates - Impairment Assessments" for further information. 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.
Previous wording
Interest expense, net, was $33.7 million for the three months ended June 30, 2026 and decreased $0.2 million, or 0.5%, compared to the three months ended June 30, 2025 due primarily to lower outstanding debt balances, partially offset by a higher average interest rate.
Current wording
Interest expense, net, was $98.7 million for the nine months ended September 30, 2026 and decreased $1.7 million, or 1.7%, compared to the nine months ended September 30, 2025 due primarily to lower average debt balances, partially offset by a higher average interest rate.
Previous wording
Other expense, net, was $408.6 million for the six months ended June 30, 2026 and consisted primarily of a $457.8 million non-cash loss on fair value adjustment associated with the MBI option and a $7.6 million revaluation loss on our Point equity investment, partially offset by a $27.6 million gain on sale of fiber-to-the-tower contract rights and $29.7 million of gains on debt extinguishments. 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 MBI Net Option, partially offset by $3.9 million of gains on debt extinguishments and a $3.2 million gain on sale of an equity investment.
Current wording
Other expense, net, was $475.6 million for the nine months ended September 30, 2026 and consisted primarily of a $510.7 million non-cash loss on fair value adjustment associated with the MBI option, $29.7 million of gains on debt extinguishments and a $27.6 million gain on sale of fiber-to-the-tower contract rights, partially offset by the write-off of $7.9 million of costs associated with abandoned financing deals, a $7.6 million revaluation loss on our Point equity investment and $6.9 million of strategic advisory costs. 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 MBI Net Option.
Previous wording
Income tax benefit was $90.1 million and $117.4 million for the six months ended June 30, 2026 and 2025, respectively, and our effective tax benefit rate was 9.9% and 24.7% for the six months ended June 30, 2026 and 2025, respectively. The decrease in the effective tax benefit rate was due primarily to an increase in deferred tax expense resulting from additional valuation allowance recorded in the second quarter of 2026, partially offset by a decrease in deferred tax expense resulting from impairments recognized in the second quarter of 2026.
Current wording
Income tax benefit was $137.3 million and $91.6 million for the nine months ended September 30, 2026 and 2025, respectively, and our effective tax benefit rate was 10.1% and 26.9% for the nine months ended September 30, 2026 and 2025, respectively. The increase in income tax benefit was due primarily to an increase in deferred tax benefit resulting from higher impairment charges during the nine months ended September 30, 2026 compared to the same period in 2025.
Previous wording
Equity method investment loss, net, was $308.0 million for the six months ended June 30, 2026 and consisted primarily of a $349.8 million non-cash impairment to the carrying value of our MBI equity investment and our $24.1 million proportionate share of Clearwave Fiber's net loss, partially offset by a $67.7 million upward revaluation of our Clearwave Fiber investment in connection with the Point-Clearwave Fiber Transaction. 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.
Current wording
Equity method investment loss, net, was $342.4 million for the nine months ended September 30, 2026 and consisted primarily of $376.4 million of non-cash impairments to the carrying value of our MBI equity investment and our $24.1 million, $10.0 million and $4.2 million proportionate shares of Clearwave Fiber, MBI and Point net losses, respectively, partially offset by a $67.7 million upward revaluation of our Clearwave Fiber investment in connection with the Point-Clearwave Fiber Transaction and our $4.5 million proportionate share of net income from our Nextlink investment. 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 shares 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.
Previous wording
Net losses were $1.16 billion and $438.0 million for the three months ended June 30, 2026 and 2025, respectively, driven largely by the non-cash impairments and fair value adjustments discussed above.
Current wording
Net losses were $1.56 billion and $348.8 million for the nine months ended September 30, 2026 and 2025, respectively, driven largely by the non-cash asset impairments discussed above.
Previous wording
Unrealized gain on cash flow hedges and other, net of tax, was $10.5 million for the six months ended June 30, 2026 compared to a $25.1 million loss for the six months ended June 30, 2025. The $35.6 million change was due primarily to an increase in forward interest rates during the six months ended June 30, 2026 compared to a decrease in the prior year period.
Current wording
Unrealized gain on cash flow hedges and other, net of tax, was $24.3 million for the nine months ended September 30, 2026 compared to a $28.2 million loss for the nine months ended September 30, 2025. The $52.5 million change was due primarily to an increase in forward interest rates during the nine months ended September 30, 2026 compared to a decrease in 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, net equity method investment (income) loss, asset impairments, executive search and transition costs, MBI integration costs, net other (income) expense and any special items, as applicable, provided in the reconciliation tables below. Executive search and transition costs consist of expenses incurred in connection with changes in executive leadership, including make-whole payment, severance and other separation benefits and costs related to executive search and onboarding. MBI integration costs consist of expenses for planning and implementing system conversion, rebranding, employee-related costs (including severance and retention) and other professional fees incurred in connection with the integration of MBI. These costs are associated with discrete events and are incremental to normal, recurring operating expenses and as such, are excluded from Adjusted EBITDA. Adjusted EBITDA 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, net equity method investment (income) loss, asset impairments, executive search and transition costs, legal settlement of alleged patent infringement, MBI integration costs, net other (income) expense and any special items, as applicable, provided in the reconciliation tables below. Executive search and transition costs consist of expenses incurred in connection with changes in executive leadership, including make-whole payment, severance and other separation benefits and costs related to executive search and onboarding. MBI integration costs consist of expenses for planning and implementing system conversion, rebranding, employee-related costs (including severance and retention) and other professional fees incurred in connection with preparing for the potential integration of MBI. These costs are associated with discrete events and are incremental to normal, recurring operating expenses and as such, are excluded from Adjusted EBITDA. Adjusted EBITDA 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
In December 2024, we amended our agreement with MBI, to, among other things, (i) reinstate the expired call option to acquire the Call Option; (ii) amend the put option to establish the Put Option; (iii) require us to make the Upfront Payment, which was paid on December 20, 2024; and (iv) provide for the other members of MBI to immediately receive, indirectly, the New MBI Debt. The Put Price payable by us upon the closing of the Put Option exercise is 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. The aggregate amount of the Upfront Payment and the impact of the New MBI Debt will reduce the Put Price payable upon the closing of the Put Option exercise and the impact of the New MBI Debt (and the associated interest and fees) will be excluded from the calculation of MBI's total net indebtedness for purposes of determining such purchase price. Further, if the closing of the Put Option exercise occurs prior to October 1, 2026, the Put Price payable will be discounted, from October 1, 2026 to the closing, at a per annum rate of 12%. The Put Option was exercised on January 2, 2026 and the terms of the Put Option contemplate that the transaction will close on or before October 1, 2026. We may fund the Put Price with a combination of cash resources and indebtedness, and we are actively exploring potential financing options. Further, we are analyzing strategic options available to us, including raising additional funds, amending existing debt agreements, among other financing transactions.
Current wording
In December 2024, we amended our agreement with MBI, to, among other things, (i) reinstate the expired call option to acquire the Call Option; (ii) amend the put option to establish the Put Option; (iii) require us to make the Upfront Payment, which was paid on December 20, 2024; and (iv) provide for the other members of MBI to immediately receive, indirectly, the New MBI Debt. The Put Price payable by us upon the closing of the Put Option exercise was 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. The aggregate amount of the Upfront Payment and the impact of the New MBI Debt reduced the Put Price payable upon the closing of the Put Option exercise and the impact of the New MBI Debt (and the associated interest and fees) was excluded from the calculation of MBI's total net indebtedness for purposes of determining such purchase price. The Put Option was exercised on January 2, 2026 and the terms of the Put Option contemplated that the transaction would close on or before October 1, 2026.
Previous wording
In June 2026, we commenced an offer (the “MBI Term Loan Exchange Offer”) to the term lenders under MBI’s credit agreement to exchange their MBI term loans for a combination of cash and new debt of the Company. As of the expiration of the MBI Term Loan Exchange Offer, we received irrevocable lender acceptances from MBI lenders holding approximately 34% of all outstanding MBI term loans. Although no final determination has been made, we currently expect to exercise our right not to consummate the MBI Term Loan Exchange Offer and will continue to explore all potential options at our discretion.
Current wording
In June 2026, we commenced an offer (the “MBI Term Loan Exchange Offer”) to the term lenders under MBI’s credit agreement to exchange their MBI term loans for a combination of cash and new debt of the Company. As of the expiration of the MBI Term Loan Exchange Offer, we received irrevocable lender acceptances from MBI lenders holding approximately 34% of all outstanding MBI term loans. We did not consummate the MBI Term Loan Exchange Offer.
Previous wording
The $22.2 million year-over-year decrease in net cash provided by operating activities was primarily attributable to a decrease in Adjusted EBITDA, partially offset by favorable changes in working capital.
Current wording
The $86.1 million year-over-year decrease in net cash provided by operating activities was primarily attributable to a decrease in Adjusted EBITDA, partially offset by favorable changes in working capital.
Previous wording
The $29.2 million year-over-year decrease in net cash used in investing activities was due primarily to $42.0 million of proceeds received from the sale of fiber-to-the-tower contract rights during the first quarter of 2026, partially offset by a $9.6 million reduction in proceeds from sales of equity investments.
Current wording
The $94.3 million year-over-year increase in net cash used in investing activities was due primarily to a $132.8 million reduction in proceeds from sales of equity investments, partially offset by $42.0 million of proceeds received from the sale of fiber-to-the-tower contract rights during the first quarter of 2026.
Previous wording
The $7.2 million year-over-year decrease in net cash used in financing activities was due primarily to a $17.2 million dividend payment in the prior year that did not recur, partially offset by an $11.4 million increase in net debt repayments.
Current wording
The $689.3 million year-over-year change in net cash provided by (used in) financing activities was due primarily to a $678.4 million increase in net debt proceeds received and a $17.2 million dividend payment in the prior year that did not recur.
Previous 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 June 30, 2026. Additional purchases under the Share Repurchase Program may be made from time to time on the open market and in privately negotiated transactions, and we may opportunistically and prudently consider buying back shares under our remaining share repurchase authorization. The size and timing of any additional purchases are based on a number of factors, including share price, trading levels and business and market conditions. Since we first became publicly traded in 2015 through June 30, 2026, we have repurchased 646,244 shares of our common stock at an aggregate cost of $556.9 million. We did not repurchase any shares during the six months ended June 30, 2026 or 2025.
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 September 30, 2026. Additional purchases under the Share Repurchase Program may be made from time to time on the open market and in privately negotiated transactions, and we may opportunistically and prudently consider buying back shares under our remaining share repurchase authorization. The size and timing of any additional purchases are based on a number of factors, including share price, trading levels and business and market conditions. Since we first became publicly traded in 2015 through September 30, 2026, we have repurchased 646,244 shares of our common stock at an aggregate cost of $556.9 million. We did not repurchase any shares during the nine months ended September 30, 2026 or 2025.
Showing the first 40 of 54 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
(1)Amount for the three months ended September 30, 2026 includes $412.1 million of non-cash asset impairment charges. Refer to the section entitled "Critical Accounting Policies and Estimates — Impairment Assessments" for further information.