Q2 2026 Cable One Inc Earnings Call

August 6, 2026

Operator 2: Hello, everyone. Thank you for joining us. Welcome to the Cable One second quarter Q2 earnings release. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Jordan Morkert, Vice President of Investor Relations. Jordan, please go ahead.

Operator: Hello, everyone. Thank you for joining us. Welcome to the Cable One second quarter Q2 earnings release. After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Jordan Morkert, Vice President of Investor Relations. Jordan, please go ahead.

Speaker #1: to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. I will now hand the conference over to Jordan Morkert, Vice President of Investor Relations.

Speaker #1: Jordan, please go ahead.

Jordan Morkert: Good afternoon. Welcome to Cable One's Q2 2026 Earnings Call. We're glad to have you join us as we review our results.

Speaker #2: and welcome to Cable One, Q2, 2026 earnings call. We're glad to have you join us as we review our results. Before we proceed, I would like to remind you that today's discussion contains forward-looking statements relating to future events that Good afternoon, involve risk and uncertainties.

Jordan Morkert: Before we proceed, I would like to remind you that today's discussion contains forward-looking statements relating to future events that involve risks and uncertainties, including statements regarding future revenue, customer growth, connects, churn rates, and ARPU, the future competitive structure of our markets, the long-term penetration opportunity in our markets, the anticipated benefits of our mobile service offering, new product roll-outs, future customer retention trends, anticipated cost savings and other benefits to be derived from our billing system migration and our other investments in growth enablement platforms, our plans to expand our multi-gig capabilities in more markets, future cash flow and capital expenditures, potential uses for our cash flow, the MBI transaction, including the purchase price, MBI's future debt levels and other related matters, future tax savings, our expectations for monetizing our remaining equity investments, and our future financial performance, capital allocation policy, leverage ratios and related targets, and our potential financing plans.

Speaker #2: Including statements regarding future revenue, customer growth, connects, churn rates in ARPU, the future competitive structure of our markets, the long-term penetration opportunity in our markets, the anticipated benefits of our mobile service offering, new product rollouts, future customer retention trends, anticipated cost savings in other benefits to be derived from our billing system migration and our other investments in growth enablement platforms, our plans to expand our multi-gig capabilities in more markets, future cash flow and capital expenditures, potential uses for our cash flow, the MBI transaction, including the put/purchase price, MBI's future debt levels, and other related matters, future tax savings, our expectations for monetizing our remaining equity investments, and our future financial performance, capital allocation policy, leverage ratios, and related targets.

Speaker #2: And our potential financing plans. You can find factors that could cause Cable One's actual results to differ materially from the forward-looking statements discussed during today's call in today's earnings release and in our SEC filings.

Jordan Morkert: You can find factors that could cause Cable One's actual results to differ materially from the forward-looking statements discussed during today's call in today's earnings release and in our SEC filings, including our 2025 annual report on Form 10-K and our forthcoming Q2 2026 quarterly report on Form 10-Q. Cable One is under no obligation, and expressly disclaims any obligation, except as required by law, to update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise. Additionally, today's remarks will include a discussion of certain financial measures that are not presented in conformity with US generally accepted accounting principles, or GAAP. When we refer to free cash flow during today's call, we mean adjusted EBITDA less capital expenditures as defined in our earnings release.

Speaker #2: Including our 2025 annual report on Form 10-K and our forthcoming Q2, 2026 quarterly report on Form 10-Q. Cable One is under no obligation and expressly disclaims any obligation except as required by law to update or alter its forward-looking statements whether as a result of new information, future events, or otherwise.

Speaker #2: Additionally, today's remarks will include a discussion of certain financial measures that are not presented in conformity with U.S. generally accepted accounting principles or GAAP.

Speaker #2: When we refer to free cash flow during today's call, we mean adjusted EBITDA less capital expenditures as defined in our earnings release. Reconciliations of non-GAAP financial measures discussed on this call to the most directly comparable GAAP measures can be found in our earnings release or on our website at ir.cableone.net.

Jordan Morkert: Reconciliations of non-GAAP financial measures discussed on this call to the most directly comparable GAAP measures can be found in our earnings release or on our website at ir.cableone.net. Joining me on today's call is our CEO, Jim Holanda, and CFO, Todd Koetje. With that, I'll turn the call over to Jim.

Speaker #2: Joining me on today's call is our CEO, Jim Holanda, and CFO, Todd Koetje. With that, I'll turn the call over to Jim.

Speaker #3: Thank you, Jordan, and good afternoon, everyone. We appreciate you joining us today. Last quarter, I spoke about taking the time to listen, learn, and develop a clearer understanding of where we are performing well and where we need to improve.

James Holanda: Thank you, Jordan, and good afternoon, everyone. We appreciate you joining us today. Last quarter, I spoke about taking the time to listen, learn, and develop a clear understanding of where we are performing well and where we need to improve. Three months later, my view remains largely unchanged. This is a business with a strong network, attractive markets, meaningful cash flow generation, and significant potential to improve operating performance. I continue to believe the greatest opportunities in front of us are operational in nature, within our control, and ultimately solvable through consistent execution. Today, I'd like to spend my time discussing what we're seeing in residential broadband, the competitive environment, the investments we're making across the business, and why we remain confident in the long-term outlook. Turning to residential broadband, we reported losses of 17,000 customers during the quarter as elevated churn continued to pressure subscriber results.

Jim Holanda: Thank you, Jordan, and good afternoon, everyone. We appreciate you joining us today. Last quarter, I spoke about taking the time to listen, learn, and develop a clear understanding of where we are performing well and where we need to improve. Three months later, my view remains largely unchanged. This is a business with a strong network, attractive markets, meaningful cash flow generation, and significant potential to improve operating performance. I continue to believe the greatest opportunities in front of us are operational in nature, within our control, and ultimately solvable through consistent execution. Today, I'd like to spend my time discussing what we're seeing in residential broadband, the competitive environment, the investments we're making across the business, and why we remain confident in the long-term outlook. Turning to residential broadband, we reported losses of 17,000 customers during the quarter as elevated churn continued to pressure subscriber results.

Speaker #3: Three months later, my view remains largely unchanged. This is a business with a strong network, attractive markets, meaningful cash flow generation, and significant potential to improve operating performance.

Speaker #3: to believe the greatest opportunities in front of us are operational in nature, within our control, and ultimately solvable through consistent execution. Today, I'd like to spend my time discussing what we're seeing in residential broadband, the competitive environment, the investments we're making across the business, and why we remain confident in the long-term outlook.

Speaker #3: Turning to residential broadband, we reported losses of I continue 17,000 customers during the quarter as elevated churn continued to pressure subscriber results. These results reinforce our belief that improving customer retention is our most important operational priority.

James Holanda: These results reinforce our belief that improving customer retention is our most important operational priority. Achieving that requires continued focus on both enhancing the customer experience and strengthening our overall value proposition. To support these efforts, we continue to augment initiatives across the business, including additional speed upgrades, more gradual promotional roll-offs, and a broader portfolio of products and services designed to deepen customer relationships and improve customer lifetime value, supported by enhanced retention tools. On the acquisition side, connect activity improved sequentially from the prior quarter and in each month of Q2, providing additional confidence that our customer acquisition initiatives are moving in the right direction. We are making progress toward building a more balanced acquisition approach as investments in our people, platforms, and go-to-market capabilities continue to gain traction.

Jim Holanda: These results reinforce our belief that improving customer retention is our most important operational priority. Achieving that requires continued focus on both enhancing the customer experience and strengthening our overall value proposition. To support these efforts, we continue to augment initiatives across the business, including additional speed upgrades, more gradual promotional roll-offs, and a broader portfolio of products and services designed to deepen customer relationships and improve customer lifetime value, supported by enhanced retention tools. On the acquisition side, connect activity improved sequentially from the prior quarter and in each month of Q2, providing additional confidence that our customer acquisition initiatives are moving in the right direction. We are making progress toward building a more balanced acquisition approach as investments in our people, platforms, and go-to-market capabilities continue to gain traction.

Speaker #3: Achieving that requires continued focus on both enhancing the customer experience and strengthening our overall value proposition. To support these efforts, we continue to augment initiatives across the business, including additional speed upgrades, more gradual promotional rollouts, and a broader portfolio of products and services designed to deepen customer relationships and improve customer lifetime value, supported by enhanced retention tools.

Speaker #3: On the acquisition side, Connect activity improved sequentially from the prior quarter and in each month of the second quarter, providing additional confidence that our customer acquisition initiatives are moving in the right direction.

Speaker #3: We are making progress toward building a more balanced acquisition approach as investments in our people, platforms, and go-to-market capabilities continue to gain traction. Over the past year, the contribution from door-to-door sales has more than doubled as a share of our quarterly connects.

James Holanda: Over the past year, the contribution from door-to-door sales has more than doubled as a share of our quarterly connects. We also continue to see encouraging momentum across our digital acquisition channels. These results reflect our efforts to diversify how we acquire new customers and build a more balanced mix of acquisition channels. Residential broadband ARPU increased sequentially during the quarter, benefiting from promotional roll-offs, the implementation of our AutoPay Plus program changes, and continued adoption of higher-value products and services across the customer relationship, partially offset by customer retention initiatives and increased adoption of value-oriented offerings. Going forward, we expect to take an increasingly targeted and segmented approach to pricing and retention initiatives tailored to the competitive dynamics of each market we serve. This approach is designed to balance revenue objectives with long-term customer relationships and lifetime value.

Jim Holanda: Over the past year, the contribution from door-to-door sales has more than doubled as a share of our quarterly connects. We also continue to see encouraging momentum across our digital acquisition channels. These results reflect our efforts to diversify how we acquire new customers and build a more balanced mix of acquisition channels. Residential broadband ARPU increased sequentially during the quarter, benefiting from promotional roll-offs, the implementation of our AutoPay Plus program changes, and continued adoption of higher-value products and services across the customer relationship, partially offset by customer retention initiatives and increased adoption of value-oriented offerings. Going forward, we expect to take an increasingly targeted and segmented approach to pricing and retention initiatives tailored to the competitive dynamics of each market we serve. This approach is designed to balance revenue objectives with long-term customer relationships and lifetime value.

Speaker #3: And we also continue to see encouraging momentum across our digital acquisition channels. These results reflect our efforts to diversify how we acquire new customers and build a more balanced mix of acquisition channels.

Speaker #3: Residential broadband ARPU increased sequentially during the quarter, benefiting from promotional rollouts, the implementation of our autopay plus program changes, and continued adoption of higher-value products and services across the customer relationship, partially offset by customer retention initiatives and increased adoption of value-oriented offerings.

Speaker #3: Going forward, we expect to take an increasingly targeted and segmented approach to pricing and retention initiatives, tailored to the competitive dynamics of each market we serve.

Speaker #3: This approach is designed to balance revenue objectives with long-term customer relationships and lifetime value. Competitive intensity remains across portions of our footprint, particularly in markets experiencing fiber overbuild activity.

James Holanda: Competitive intensity remains across portions of our footprint, particularly in markets experiencing fiber overbuild activity. Looking ahead, we expect the broadband landscape to consist of a mix of wired, fixed wireless, mobile-only, and satellite solutions, with wired broadband continuing to serve the majority of households because of its superior capacity, reliability, and economics. The number of wired gig-capable competitors varies across our footprint. We increasingly tailor our products, marketing strategies, and competitive responses to the local dynamics of each market. While those competitive responses may differ by market, our commitment to the communities we serve and our local operating presence remain unchanged. Our objective is to deliver an experience that earns long-term customer loyalty and positions us to compete effectively over time.

Jim Holanda: Competitive intensity remains across portions of our footprint, particularly in markets experiencing fiber overbuild activity. Looking ahead, we expect the broadband landscape to consist of a mix of wired, fixed wireless, mobile-only, and satellite solutions, with wired broadband continuing to serve the majority of households because of its superior capacity, reliability, and economics. The number of wired gig-capable competitors varies across our footprint. We increasingly tailor our products, marketing strategies, and competitive responses to the local dynamics of each market. While those competitive responses may differ by market, our commitment to the communities we serve and our local operating presence remain unchanged. Our objective is to deliver an experience that earns long-term customer loyalty and positions us to compete effectively over time.

Speaker #3: Looking ahead, we expect the broadband landscape to consist of a mix of wired, fixed wireless, mobile-only, and satellite solutions with wired broadband continuing to serve the majority of households because of its superior capacity, reliability, and economics.

Speaker #3: The number of wired gig-capable competitors varies across our footprint, and we increasingly tailor our products, marketing strategies, and competitive responses to the local dynamics of each market.

Speaker #3: While those competitive responses may differ by market, our commitment to the communities we serve and our local operating presence remain unchanged. Our objective is to deliver an experience that earns long-term customer loyalty and positions us to compete effectively over time.

James Holanda: As we evaluate the competitive environments across our footprint and where we expect them to stabilize over time, we believe our long-term penetration opportunity remains meaningfully above current penetration levels. This analysis reinforces our confidence in the business's long-term growth and value creation potential. Turning to business services, as we noted last quarter, our reported business services results reflect the impact of the previously announced sale of certain fiber to the tower assets, which occurred in late Q1. Within business services, we continue to see encouraging momentum in portions of the business, particularly within our enterprise, wholesale, and carrier offerings, as these higher-value fiber-based offerings benefit from long-term contracts, recurring revenue streams, and attractive customer economics. During Q2, our SMB broadband business remained under pressure.

Jim Holanda: As we evaluate the competitive environments across our footprint and where we expect them to stabilize over time, we believe our long-term penetration opportunity remains meaningfully above current penetration levels. This analysis reinforces our confidence in the business's long-term growth and value creation potential. Turning to business services, as we noted last quarter, our reported business services results reflect the impact of the previously announced sale of certain fiber to the tower assets, which occurred in late Q1. Within business services, we continue to see encouraging momentum in portions of the business, particularly within our enterprise, wholesale, and carrier offerings, as these higher-value fiber-based offerings benefit from long-term contracts, recurring revenue streams, and attractive customer economics. During Q2, our SMB broadband business remained under pressure.

Speaker #3: environments across our footprint and where we expect them to stabilize over time, we believe our long-term penetration opportunity remains meaningfully above current penetration levels.

Speaker #3: This analysis reinforces our confidence in the business's long-term growth and value creation potential. Turning to business services, as we noted last quarter, our reported business services results reflect the impact of the previously announced sale of certain fiber-to-the-tower assets, which occurred in late Q1.

Speaker #3: Within business services, we continue to see encouraging momentum in portions of the business, particularly within our enterprise wholesale and carrier offerings as these higher-value fiber-based offerings benefit from long-term contracts, recurring revenue streams, and attractive customer economics.

Speaker #3: During the second quarter, our SMB broadband business remained under pressure. To strengthen our offering, we expanded our product portfolio with the launch of unified communications as a service or UCaaS, providing customers with a cloud-based communications solution that complements our existing connectivity services.

James Holanda: To strengthen our offering, we expanded our product portfolio with the launch of Unified Communications as a Service, or UCaaS, providing customers with a cloud-based communication solution that complements our existing connectivity services. UCaaS broadens the solutions we offer and represents another step in deepening relationships over time. Combined with improvements in sales execution and our go-to-market approach, we believe we are well-positioned to build on the momentum we're seeing across these higher-value commercial segments. Underpinning both our residential and commercial businesses is the quality and capabilities of our network. Today, essentially all of our network is capable of delivering gigabit speeds, and by the end of this year, the vast majority of our customers will be served by multi-gig capable infrastructure. This progress is not the result of a major new capital program, but rather years of disciplined capital-efficient investment in our network architecture and technology platforms.

Jim Holanda: To strengthen our offering, we expanded our product portfolio with the launch of Unified Communications as a Service, or UCaaS, providing customers with a cloud-based communication solution that complements our existing connectivity services. UCaaS broadens the solutions we offer and represents another step in deepening relationships over time. Combined with improvements in sales execution and our go-to-market approach, we believe we are well-positioned to build on the momentum we're seeing across these higher-value commercial segments. Underpinning both our residential and commercial businesses is the quality and capabilities of our network. Today, essentially all of our network is capable of delivering gigabit speeds, and by the end of this year, the vast majority of our customers will be served by multi-gig capable infrastructure. This progress is not the result of a major new capital program, but rather years of disciplined capital-efficient investment in our network architecture and technology platforms.

Speaker #3: UCaaS broadens the solutions we offer and represents another step in deepening relationships over time. Combined with improvements in sales execution and our go-to-market approach, we believe we are well-positioned to build on the momentum we're seeing across these higher-value commercial segments.

Speaker #3: Underpinning both our residential and commercial businesses is the quality and capabilities of our network. Today, essentially all of our network is capable of delivering gigabit speeds, and by the end of this year, the vast majority of our customers will be served by multi-gig-capable infrastructure.

Speaker #3: This progress is not the result of a major new capital program, but rather years of disciplined, capital-efficient investment in our network architecture and technology platforms.

Speaker #3: We believe these upgrades improve the value we deliver to customers while further strengthening our competitive positions in the markets we serve. More broadly, we continue to invest in technology, automation, and AI-enabled tools designed to improve the customer experience, enhance employee productivity, and drive greater operational efficiency across the business.

James Holanda: We believe these upgrades improve the value we deliver to customers while further strengthening our competitive position in the markets we serve. More broadly, we continue to invest in technology, automation, and AI-enabled tools designed to improve the customer experience, enhance employee productivity, and drive greater operational efficiency across the business. Turning to mobile, we are pleased with the early progress of the business. While it remains small relative to our core broadband operations today, customer adoption trends and the pace of growth across the platform are encouraging. As we've said previously, building awareness and changing customer perception takes time. Customers have known us as a broadband provider for many years, and we expect it will take time for customers to view us as a mobile provider. Across the broadband industry, mobile is an increasingly important part of the customer relationship.

Jim Holanda: We believe these upgrades improve the value we deliver to customers while further strengthening our competitive position in the markets we serve. More broadly, we continue to invest in technology, automation, and AI-enabled tools designed to improve the customer experience, enhance employee productivity, and drive greater operational efficiency across the business. Turning to mobile, we are pleased with the early progress of the business. While it remains small relative to our core broadband operations today, customer adoption trends and the pace of growth across the platform are encouraging. As we've said previously, building awareness and changing customer perception takes time. Customers have known us as a broadband provider for many years, and we expect it will take time for customers to view us as a mobile provider. Across the broadband industry, mobile is an increasingly important part of the customer relationship.

Speaker #3: Turning to mobile, we are pleased with the early progress of the business. While it remains small relative to our core broadband operations today, customer adoption trends and the pace of growth across the platform are encouraging.

Speaker #3: As we've said previously, building awareness and changing customer perception takes time. Customers have known us as a broadband provider for many years, and we expect it will take time for customers to view us as a mobile provider.

Speaker #3: Across the broadband industry, mobile is an increasingly important part of the customer relationship. While it remains early on in our launch, we believe it is an effective way to improve customer acquisition, deepen customer relationships, and strengthen retention over time.

James Holanda: While it remains early on in our launch, we believe it is an effective way to improve customer acquisition, deepen customer relationships, and strengthen retention over time. As penetration grows, we expect those benefits to become more meaningful to customer lifetime value and the economics of the business. As we continue to invest across the business, we remain disciplined in how we allocate capital. Our capital allocation priorities remain unchanged. We will invest in opportunities to improve the customer experience and strengthen our competitive position while pursuing balance sheet flexibility and seeking to reduce leverage over time. Todd will provide additional detail on our balance sheet liquidity position and capital allocation priorities in his remarks. Before I hand it over to Todd, I'd like to reiterate our confidence in the long-term opportunity ahead.

Jim Holanda: While it remains early on in our launch, we believe it is an effective way to improve customer acquisition, deepen customer relationships, and strengthen retention over time. As penetration grows, we expect those benefits to become more meaningful to customer lifetime value and the economics of the business. As we continue to invest across the business, we remain disciplined in how we allocate capital. Our capital allocation priorities remain unchanged. We will invest in opportunities to improve the customer experience and strengthen our competitive position while pursuing balance sheet flexibility and seeking to reduce leverage over time. Todd will provide additional detail on our balance sheet liquidity position and capital allocation priorities in his remarks. Before I hand it over to Todd, I'd like to reiterate our confidence in the long-term opportunity ahead.

Speaker #3: As penetration grows, we expect those benefits to become more meaningful to customer lifetime value and the economics of the business. As we continue to invest across the business, we remain disciplined in how we allocate capital.

Speaker #3: Our capital allocation priorities remain unchanged. We will invest in opportunities to improve the customer experience and strengthen our competitive position while pursuing balance sheet flexibility and seeking to reduce leverage over time.

Speaker #3: Todd will provide additional detail on our balance sheet liquidity position and capital allocation priorities in his remarks. Before I hand it over to Todd, I'd like to reiterate our confidence in the long-term opportunity ahead.

Speaker #3: We're seeing encouraging progress across the number of the initiatives we've discussed today, while continuing to invest in our network, our products, and the capabilities that we believe will strengthen our competitive position.

James Holanda: We're seeing encouraging progress across a number of the initiatives we've discussed today while continuing to invest in our network, our products, and the capabilities that we believe will strengthen our competitive position.

Jim Holanda: We're seeing encouraging progress across a number of the initiatives we've discussed today while continuing to invest in our network, our products, and the capabilities that we believe will strengthen our competitive position.

Speaker #3: Combined with the positive cash flow-generating characteristics of the business and the disciplined approach to capital allocation, we continue to pursue long-term value creation for our stakeholders.

James Holanda: Combined with the positive cash flow-generating characteristics of the business and a disciplined approach to capital allocation, we continue to pursue long-term value creation for our stakeholders. Now Todd will provide a recap of our Q2 financial performance.

Jim Holanda: Combined with the positive cash flow-generating characteristics of the business and a disciplined approach to capital allocation, we continue to pursue long-term value creation for our stakeholders. Now Todd will provide a recap of our Q2 financial performance.

Speaker #3: And now, Todd will provide a recap of our second quarter financial performance.

Speaker #2: Thanks, Jim. Beginning with the top line, total revenues were $348.9 million, the second quarter of 2026, compared to $381.1 million in the second quarter of 2025.

Todd Koetje: Thanks, Jim. Beginning with the top line, total revenues were $348.9 million for Q2 2026, compared to $381.1 million in Q2 2025, with residential video responsible for $9.7 million of the decrease. Residential data revenues decreased $16.7 million, or 7.3% year over year, driven by a 6.6% decrease in subscribers, while ARPU remained relatively flat. On a sequential basis, residential data revenues declined by $1 million, or 0.5%. Data revenues on the business side declined by $3.8 million year over year, or 6.6%. However, $2.2 million of this decline was attributable to the revenues associated with the tower contracts divested during Q1 2026. Operating expenses declined by $3.6 million, or 3.5%, compared to Q2 2025, driven by lower programming costs, offset by ongoing investments in customer experience.

Speaker #2: With residential video responsible for $9.7 million of the decrease. Residential data revenues decreased $16.7 million, or 7.3%, year over year, driven by a 6.6% decrease in subscribers, while our pool remained relatively flat.

Speaker #2: On a sequential basis, residential data revenues declined by $1 million, or 0.5%. Data revenues on the business side declined by 3.8 million, year over year, or 6.6%.

Speaker #2: However, 2.2 million of this decline was attributable to the revenues associated with the tower contracts divested during the first quarter of 2026. Operating expenses declined by 3.6 million, or 3.5%, compared to the second quarter of 2025, driven by lower programming costs, offset by ongoing investments in customer experience.

Speaker #2: OPEX was 28.3% of revenues in Q2 of 2026 versus 26.9% in the prior year quarter. SG&A expenses for the second quarter of 2026 fell by 4.3 million, or 4.7%, year over year, due to lower labor expense and reduced billing system conversion costs.

Todd Koetje: OpEx was 28.3% of revenues in Q2 2026, versus 26.9% in the prior year quarter. SG&A expenses for Q2 2026 fell by $4.3 million, or 4.7% year over year, due to lower labor expense and reduced billing system conversion costs. This was offset by continued investment in customer acquisition channels and related marketing. SG&A represented 25.1% of total revenues in the current quarter, compared to 24.1% in Q2 2025. Adjusted EBITDA for Q2 2026 was $173.5 million, representing 49.7% of revenues, versus $203.2 million, or 53.3% of revenues in Q2 2025. Capital expenditures of $74 million were 42.7% of adjusted EBITDA and increased $5.6 million year over year. This was primarily attributable to our investments in the latest in-home advanced Wi-Fi technologies and security solutions to drive increased customer satisfaction and related loyalty.

Speaker #2: This was offset by continued investment in customer acquisition channels and related marketing. SG&A represented 25.1% of total revenues in the current quarter, compared to 24.1% in the second quarter of last year.

Speaker #2: Adjusted EBITDA for the second quarter of 2026 was $173.5 million, representing 49.7% of revenues, versus $203.2 million, or 53.3%, of revenues in Q2 of 2025.

Speaker #2: Capital expenditures of $74 million were 42.7% of adjusted EBITDA and increased $5.6 million year over year. This was primarily attributable to our investments in the latest in-home advanced Wi-Fi technologies and security solutions to drive increased customer satisfaction and related loyalty.

Speaker #2: We reaffirm our previous guidance that full-year capex is expected to remain consistent with the prior year. We will continue to remain disciplined and balanced on capital allocation priorities that are centered around the highest network reliability standards and debt reduction.

Todd Koetje: We reaffirm our previous guidance that full-year CapEx is expected to remain consistent with the prior year, and we will continue to remain disciplined and balanced on capital allocation priorities that are centered around the highest network reliability standards and debt reduction. Adjusted EBITDA less CapEx was $99.5 million in Q2 2026, versus $134.8 million in Q2 2025. During the quarter, we recognized several non-cash impairment charges and fair value adjustments related to our franchise agreements, goodwill, and our investment in MBI. These accounting charges do not impact our cash flow, liquidity, operating strategy, or long-term growth initiatives. Additional details are included in our earnings release and Form 10-Q. During the quarter, we reduced our debt balances by $63 million, including nearly $60 million of reduction via voluntary repurchases at attractive discounts.

Speaker #2: Adjusted EBITDA less capex was 99.5 million, in the second quarter of 2026, versus $134.8 million, in the second quarter of 2025. During the quarter, we recognized several non-cash impairment charges and fair value adjustments, related to our franchise agreements, goodwill, and our investment in NBI.

Speaker #2: These accounting charges do not impact our cash flow, liquidity, operating strategy, or long-term growth initiatives. Additional details are included in our earnings release and Form 10-Q.

Speaker #2: During the quarter, we reduced our debt balances by 63 million, including nearly $60 million of reduction via voluntary repurchases at attractive discounts. Through the first two quarters of the year, we have reduced our total debt balances by nearly $130 million.

Todd Koetje: Through H1, we have reduced our total debt balances by nearly $130 million. At the end of Q2, we had $166.2 million of cash and equivalents on hand, while our gross debt balance was $3.06 billion, consisting of approximately $1.66 billion of term loans, $550 million of revolver draws, $503 million of unsecured notes, $345 million of convertible notes, and $3 million of finance lease liabilities. We also had $700 million of undrawn capacity under our $1.25 billion revolving credit facility at quarter end. Our net leverage ratio on a last quarter annualized basis was 4.2x. Our balance sheet continues to be supported by committed sources of capital and strong operating liquidity. We remain focused on strengthening it and continue to actively evaluate a range of financing alternatives with the objective of maintaining financial flexibility over the long term.

Speaker #2: At the end of the second quarter, we had $166.2 million of cash and equivalents on hand, while our gross debt balance was $3.06 billion. This consisted of approximately $1.66 billion of term loans, $550 million of revolver draws, $503 million of unsecured notes, $345 million of convertible notes, and $3 million of financed lease liabilities.

Speaker #2: We also had $700 million of undrawn capacity under our $1.25 billion revolving credit facility at quarter end. Our net leverage ratio on the last quarter annualized basis was 4.2 times.

Speaker #2: Our balance sheet continues to be supported by committed sources of capital and strong operating liquidity. We remain focused on strengthening it and continue to actively evaluate a range of financing alternatives with the objective of maintaining financial flexibility over the long term.

Speaker #2: With respect to NBI, we continue to evaluate the appropriate next steps and do not have any additional updates to announce today. As previously announced, during the quarter, two of our unconsolidated equity joint ventures, Point Broadband and Clearway Fiber, merged.

Todd Koetje: With respect to MBI, we continue to evaluate the appropriate next steps and do not have any additional updates to announce today. As previously announced, during the quarter, two of our unconsolidated equity joint ventures, Point Broadband and Clearwave Fiber, merged. Our existing interest in Clearwave Fiber was exchanged for additional equity interest in the surviving Point Broadband entity. Our investment had a $135 million carrying value at 30 June and is now classified as an equity method investment with a one-quarter reporting lag. We continue to assess potential monetization opportunities for our remaining unconsolidated equity investments, whose proceeds could be allocated towards accelerated debt reduction as we have in the past. With that, I'll turn it over for questions.

Speaker #2: Our existing interest in Clearway Fiber was exchanged for additional equity interest in the surviving Point Broadband entity. Our investment had a $135 million carrying value at June 30 and is now classified as an equity method investment with a one-quarter reporting lag.

Speaker #2: We continue to assess potential monetization opportunities for our remaining unconsolidated equity investments, whose proceeds could be allocated towards accelerated debt reduction as we have in the past.

Speaker #2: With that, I'll turn it over for questions.

Speaker #1: We will now begin the question and answer session. If you would like to ask a question, please press star one to raise your hand.

Operator 2: We will now begin the question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Brandon Nispel with KeyBanc. Your line is open. Please go ahead.

Operator: We will now begin the question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Brandon Nispel with KeyBanc. Your line is open. Please go ahead.

Speaker #1: To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality.

Speaker #1: If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Brandon Nispel with KeyBank.

Speaker #1: Your line is open. Please go ahead.

Speaker #3: Hey, guys. Thanks for taking the questions. Two if I could, one for Jim, one for Todd. Jim, you guys talked about having long-term confidence in the business because of the low penetration rate, but that's been sort of the case for a while.

Brandon Nispel: Hey, guys. Thanks for taking the questions. Two, if I could. One for Jim, one for Todd. Jim, you guys talked about having long-term confidence in the business because of the low penetration rate, but that's been sort of the case for a while. Can you talk more specifically about what you guys are doing to change that? On Todd, there's been some reports and you need to get some financing transactions done. Can you give us an update on where you stand with some of those? Thank you.

Speaker #3: So can you talk more specifically about what you guys are doing to change that? And then on Todd, there's been some reports that you need to get some and you need to get some financing transactions done.

Speaker #3: Can you give us an update on where you stand with some of those? Thank you.

Speaker #4: Yeah. Thanks for the question, Brandon. It's Jim. The immediate opportunity five and a half, six months ago when I walked through the door was to really balance and invest in additional sales channels.

James Holanda: Yeah, thanks for the question, Brandon. It's Jim. The immediate opportunity, five and a half, six months ago when I walked through the door, was to really balance and invest in additional sales channels, primarily on the digital and e-commerce side, along with the direct sales side. When you look back over a year ago, those two sales channels accounted for less than 10% of sales. In Q2, they accounted for roughly 35% of sales. That still benchmarks quite significantly under where I would say the rest of the industry is at. We continue to invest in those channels, and as a result, as we stated earlier, we saw strong connect momentum in Q2, which continues into Q3.

Jim Holanda: Yeah, thanks for the question, Brandon. It's Jim. The immediate opportunity, five and a half, six months ago when I walked through the door, was to really balance and invest in additional sales channels, primarily on the digital and e-commerce side, along with the direct sales side. When you look back over a year ago, those two sales channels accounted for less than 10% of sales. In Q2, they accounted for roughly 35% of sales. That still benchmarks quite significantly under where I would say the rest of the industry is at. We continue to invest in those channels, and as a result, as we stated earlier, we saw strong connect momentum in Q2, which continues into Q3.

Speaker #4: Primarily on the digital and e-commerce side along with the direct sales side and when you look back over a year ago, those two sales channels accounted for less than 10% of sales.

Speaker #4: In Q2, they accounted for roughly 35% of sales. And that's still benchmarks quite significantly under where I would say the rest of the industry is at.

Speaker #4: So we continue to invest in those channels. And as a result, as we stated earlier, we saw strong connect momentum in the second quarter.

Speaker #4: Which continues into the third quarter. And then on the retention side, which is the other side of that equation—again, ceding market share to FWA by not having a mobile and a bundled offering strategy—I think set us behind.

James Holanda: On the retention side, which is the other side of that equation, again, ceding market share to FWA by not having a mobile and a bundled offering strategy, I think set us behind. We have worked quickly to close that gap. Mobile officially launched across the footprint in March of this year. As I mentioned, the early results are good. Slow at first here, as we get customers used to the idea of the broadband provider providing mobile. Now we actually have a competitive response, both in terms of price and product set that we didn't have before. Again, the ancillary services that we're using to increase the value proposition for our existing broadband customers, we're highly focused on and deploying in real time.

Jim Holanda: On the retention side, which is the other side of that equation, again, ceding market share to FWA by not having a mobile and a bundled offering strategy, I think set us behind. We have worked quickly to close that gap. Mobile officially launched across the footprint in March of this year. As I mentioned, the early results are good. Slow at first here, as we get customers used to the idea of the broadband provider providing mobile. Now we actually have a competitive response, both in terms of price and product set that we didn't have before. Again, the ancillary services that we're using to increase the value proposition for our existing broadband customers, we're highly focused on and deploying in real time.

Speaker #4: We have worked quickly to close that gap. Mobile officially launched across the footprint in March of this year. As I mentioned, the early results are good.

Speaker #4: Slow at first tiers as we get customers used to the idea of the broadband provider providing mobile, but now we actually have a competitive response, both in terms of price and product set, that we didn't have before.

Speaker #4: And then again, the ancillary services that we're using to increase the value proposition for our existing broadband customers, we're highly focused on and deploying in real time.

Speaker #4: So those are the things that give me confidence in terms of our ability to take advantage of what I perceive certainly as historically being underpenetrated and the opportunity to have a product set and a pricing set to go after all households within our footprint.

James Holanda: Those are the things that give me confidence in terms of our ability to take advantage of what I perceive, certainly, as historically being under-penetrated, and the opportunity to have a product set and a pricing set to go after all households within our footprint.

Jim Holanda: Those are the things that give me confidence in terms of our ability to take advantage of what I perceive, certainly, as historically being under-penetrated, and the opportunity to have a product set and a pricing set to go after all households within our footprint.

Speaker #4: And then Brandon, as it relates to the financing question, in my prepared remarks, I outlined that we remain very focused on strengthening the balance sheet and continue to actively evaluate financing alternatives given the consideration of that active evaluation we are not in a position to answer any questions related to our financing efforts at Cabo or the financing efforts at NBI at this time.

Todd Koetje: Brandon, as it relates to the financing question, as in my prepared remarks, I outlined that we remain very focused on strengthening the balance sheet and continue to actively evaluate financing alternatives. Given the consideration of that active evaluation, we are not in a position to answer any questions related to our financing efforts at Cable One or the financing efforts at MBI at this time. We will continue to explore, evaluate, pursue all potential opportunities, because we know we need to provide clarity and additional stability to the balance sheet.

Speaker #4: But we will continue to explore, evaluate, pursue all potential opportunities because we know we need to provide clarity and additional stability to the balance sheet.

Speaker #3: Got it. Thank you for taking the questions.

Brandon Nispel: Got it. Thank you for taking the questions.

Speaker #4: You bet.

Todd Koetje: You bet.

Speaker #1: Your next question comes from the line of Greg Williams with TD Cowen. Your line is open. Please go ahead.

Operator 2: Your next question comes from the line of Greg Williams with TD Cowen. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Greg Williams with TD Cowen. Your line is open. Please go ahead.

Speaker #5: Great, thanks for taking my questions. My first one is on the cost to acquire. You're changing your go-to-market strategy. You used to be more of an inbound model.

Greg Williams: Great. Thanks for taking my questions. My first one's on the cost to acquire. You changing your go-to-market strategy. You used to be more of an inbound model. Now you're doing, as you said, more direct, more to door to door, which I'd imagine increases your cost to acquire. You noted that your digital mix is now, I think you said 35%, which would help. A few moving parts there. What does that mean to the overall cost to acquire customers? Second question is on ARPU. You pre-announced pretty good ARPU numbers in July, an ARPU rebound, and you mentioned a lot of moving parts. There was promo roll-offs, AutoPay, product adoptions, you have retention, and your front book's pretty aggressive. How do I put that all together in terms of where the ARPU trajectory is going?

Speaker #5: Now you're doing, as you said, more direct. More to door-to-door, which I'd imagine increases your cost to acquire. But then you noted that your digital mix is now I think you said 35%, which would help.

Speaker #5: So if you're moving parts there, what does that mean to the overall cost to acquire customers? Second question is on ARPU. You pre-announced pretty good ARPU numbers in July and ARPU rebound.

Speaker #5: And you mentioned a lot of moving parts, whether it was promo roll-offs, autopay, product adoptions, but then you have retention, and your front book's pretty aggressive.

Speaker #5: How do I put that all together in terms of are the ARPU trajectories going? Is the strategy to maybe have stable ARPU and try to grow subs on that or sacrifice little ARPU going forward, longer term?

Greg Williams: Is the strategy to maybe you have stable ARPU and try to grow subs on that or sacrifice a little ARPU going forward longer term? Thanks.

Speaker #5: Thanks.

Speaker #4: Yeah. Thanks for the questions, Greg. I'll take the cost to acquire question and turn the ARPU question over to Todd. But on the cost to acquire, yes, correct.

James Holanda: Thanks for the questions, Greg. I'll take the cost to acquire question and turn the ARPU question over to Todd. On the cost to acquire, yes, correct that direct sales is a more expensive channel. That's roughly 10% to 12% of sales today. To your point, the digital channel is very efficient. We're seeing strong momentum there. I expect the overall CAC to increase slightly, but not materially to where it really impacts margin overall. To the extent that changes as we continue to beef up those and those mixes changes, we'll be happy to update on future calls.

Jim Holanda: Thanks for the questions, Greg. I'll take the cost to acquire question and turn the ARPU question over to Todd. On the cost to acquire, yes, correct that direct sales is a more expensive channel. That's roughly 10% to 12% of sales today. To your point, the digital channel is very efficient. We're seeing strong momentum there. I expect the overall CAC to increase slightly, but not materially to where it really impacts margin overall. To the extent that changes as we continue to beef up those and those mixes changes, we'll be happy to update on future calls.

Speaker #4: That direct sales is a more expensive channel that's roughly 10 to 12 percent of sales today. And so to your point, the digital channel is very efficient.

Speaker #4: And we're seeing strong momentum there, and so I expect the overall CAC to increase slightly, but not materially to where it really impacts margin overall.

Speaker #4: To the extent that changes as we continue to beef up those and those mixes changes, we'll be happy to update on future calls.

Speaker #2: Greg, ARPU question both for the quarter as you noted as well as how you think about that going forward. The pricing adjustments that we made specifically in this quarter that were related to some of our autopay plus and paperless billing programs did support that ARPU.

Todd Koetje: Greg, ARPU question both for the quarter, as you noted, as well as how you think about that going forward. The pricing adjustments that we made specifically in this quarter that were related to some of our AutoPay Plus and paperless billing programs did support that ARPU. I would say it also, as usual, does result in some heightened customer attrition when you make that, but it supported the incremental ARPU there. The AutoPay Plus program, as we've talked about quite extensively in the past, is something we're very focused on because that set it, forget it also improves the retention qualities of the customers that adopt into that. We save money, of course, because of the paperless billing dynamic associated with that, and so do our customers save money. Everybody benefits from that perspective. We continue to focus on the sell-in.

Speaker #2: I would say it also as usual does result in some heightened customer attrition. When you make that, but it supported the incremental ARPU there.

Speaker #2: The autopay plus program, as we've talked about quite extensively in the past, is something we're very focused on because that set it forget it also improves the retention qualities of the customers that adopt into that.

Speaker #2: And we save money of course. Because of the paperless billing dynamic associated with that. And so do our customers save money. So everybody benefits from that perspective.

Speaker #2: And then we continue to focus on the selling, right? It's not just a binary broadband product. It's a broadband product with the most advanced in-home technology, the eero system, on top of that eero system, the security solutions that honestly every customer should have given the ongoing attacks that are out there on that front.

Todd Koetje: It's not just a binary broadband product. It's a broadband product with the most advanced in-home technology, the eero system. On top of that eero system, the security solutions that honestly every customer should have, given the ongoing attacks that are out there on that front. The sell-in to the full assist solution that we have, that we've been introducing to our customers over the last 3 to 4 quarters, we call Tech Assist, where you basically are supporting everything that our broadband connects in the home that we see adoption and a customer's willingness to pay for, in addition to, of course, then selling in other products like video streaming.

Todd Koetje: It's not just a binary broadband product. It's a broadband product with the most advanced in-home technology, the eero system. On top of that eero system, the security solutions that honestly every customer should have, given the ongoing attacks that are out there on that front. The sell-in to the full assist solution that we have, that we've been introducing to our customers over the last three to four quarters, we call Tech Assist, where you basically are supporting everything that our broadband connects in the home that we see adoption and a customer's willingness to pay for, in addition to, of course, then selling in other products like video streaming.

Speaker #2: The selling to the full assist solution that we have that we've been introducing to our customers over the last three to four quarters. We call it Tech Assist.

Speaker #2: Where you basically are supporting everything that our broadband connects in the home that we see adoption and a customer's willingness to pay for in addition to of course then selling in other products like video streaming.

Speaker #2: Some of those products people will pay for. Some of those products we'll subsidize. To improve the retention side of the equation, because getting more products and more value into this will then continue to support the overall ARPU going forward, as well as improve the retention.

Todd Koetje: Some of those products people will pay for, some of those products we'll subsidize to improve the retention side of the equation, because getting more products and more value into this will then continue to support the overall ARPU going forward, as well as improve the retention. We do have some headwinds there, as well, because you talked about the front book. The customer acquisition strategy is not just an inheritance model anymore. It's not just answer the phones. It's the offensive side that Jim just talked about, we are willing to sell in to new customers at a lower price point. Some of that's a phone ringer to get them to call.

Speaker #2: We do have some headwinds there as well because you talked about the front book. The customer acquisition strategy is not just an inheritance model anymore.

Speaker #2: It's not just answer the phones. It's the offensive side that Jim just talked about. And we are willing to sell in to new customers at a lower price point.

Speaker #2: And some of that's a phone ringer to get them to call. Some of that's an engagement at the front door. But then, working on selling in those additional products, and then the promotional roll-offs help support that ARPU over time.

Todd Koetje: Some of that's an engagement at the front door, working on selling in those additional products, the promotional roll-offs help support that ARPU over time at the right level, not the kind of shock and awe that drives more attrition. I would expect that ARPU, while we continue to focus on expanding the penetration, as Jim outlined in his prepared remarks, will be something that will also then have some pressure on ARPU, but a balanced way in terms of adding customers, a willingness, as we've talked about quite a bit in the past, of giving up some of the enterprise ARPU to drive long-term customer growth.

Speaker #2: At the right level, not the kind of shock and awe that drives more attrition. And I would expect that ARPU while we continue to focus on expanding the penetration as Jim outlined in his prepared remarks, will be something that will also then have some pressure on ARPU.

Speaker #2: But a balanced way in terms of adding customers and a willingness as we've talked about quite a bit in the past of giving up some of the enterprise ARPU to drive long-term customer growth.

Speaker #5: All right. Thank you.

Greg Williams: Great. Thank you.

Speaker #1: Your next question comes from the line of Stephen Cahal with Wells Fargo. Your line is open. Please go ahead.

Operator 2: Your next question comes from the line of Steven Cahall with Wells Fargo. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Steven Cahall with Wells Fargo. Your line is open. Please go ahead.

Speaker #6: Thank you. Kind of rolling it all up, I was wondering if you could just talk a little bit about your expectations for subscriber trends, for the next quarter or two.

Steven Cahall: Thank you. Kind of rolling it all up, I was wondering if you could just talk a little bit about your expectations for subscriber trends for the next quarter or two. You talked about the improvement in gross adds. It sounds like retention is what you are looking to attack next. I know the goal is to start to see some improvement in the year-on-year trend. Is that something you think you can get to by Q3? Which I think is also typically seasonally a little better. With mobile being bundled in maybe a little bit more aggressively, I think, Todd, you were just talking about some of the ARPU impacts. Maybe you can mention how we should think about that trade-off between price and volume that you might be attacking right now.

Speaker #6: I mean, you talked about the improvement in gross ads. It sounds like retention is what you're looking to attack next. I know the goal is to start to see some improvement in the year-on-year trend.

Speaker #6: Is that something you think you can get to by the third quarter? Which I think is also typically seasonally a little better. And then, with mobile being bundled in maybe a little bit more aggressively—I think, Todd, you were just talking about some of the ARPU impacts.

Speaker #6: So maybe you can think about or maybe, sorry, you can mention how we should think about that trade-off between price and volume that you might be attacking right now.

Speaker #2: Yeah. Steve, I mean, similar to what I just said, but I can kind of go I guess a little bit deeper. Subscriber trends, we are encouraged by some of the platforms that we've invested in.

Todd Koetje: Yeah, Steve, similar to what I just said, but I can go, I guess, a little bit deeper. Subscriber trends, we are encouraged by some of the platforms that we have invested in, some of the team that we have continued to invest in, and those go-to-market strategies and that very hyper-local approach in our smaller communities driving some of the new customer acquisition. You are spot on. Retention is the highest priority. The most accretive customer is the one you already have. Focusing that on the incremental value into those existing relationships, like I talked about with the products, like Jim spoke about with the incremental bundling.

Todd Koetje: Yeah, Steven, similar to what I just said, but I can go, I guess, a little bit deeper. Subscriber trends, we are encouraged by some of the platforms that we have invested in, some of the team that we have continued to invest in, and those go-to-market strategies and that very hyper-local approach in our smaller communities driving some of the new customer acquisition. You are spot on. Retention is the highest priority. The most accretive customer is the one you already have. Focusing that on the incremental value into those existing relationships, like I talked about with the products, like Jim spoke about with the incremental bundling.

Speaker #2: Some of the team that we've continued to invest in and those go-to-market strategies and that very hyper-local approach in our smaller communities driving some of the new customer acquisition.

Speaker #2: You're spot on. Retention is the highest priority, the most accretive customer is the one you already have. And focusing that on the incremental value into those existing relationships like I talked about with the products like Jim spoke about with the incremental bundling.

Speaker #2: The third quarter is a seasonally better quarter. And Q2 demonstrated that Q2 is usually the seasonally worst quarter in addition to some of the pricing adjustments that I talked about in addition to just the more intense competitive environment that we continue to operate in.

Todd Koetje: Q3 is a seasonally better quarter, and Q2 demonstrated that Q2 is usually the seasonally worst quarter, in addition to some of the pricing adjustments that I talked about, in addition to just the more intense competitive environment that we continue to operate in. Recall, if you are talking about year-over-year, Q3 of 2025 was definitely not a great quarter for us as we were coming through a lot of the billing system implementation. We did have a heightened churn as a result of that. While I am not giving you guidance, with the momentum we are focused on, I would say that that is a fair assessment, I think, as you outlined.

Speaker #2: And recall if you're talking about year over year, Q3 of 2025 was definitely not a great quarter for us as we were coming through a lot of the billing system implementation.

Speaker #2: We did have a heightened churn as a result of that. So while not giving you guidance with the momentum we're focused on, I would say that that's a fair assessment I think as you outlined.

Speaker #6: Great. And then just wondering if you have seen any increase in satellite competition in parts of the footprint.

Steven Cahall: Great. Then just wondering if you have seen any increase in satellite competition in parts of the footprint.

Speaker #2: No, same as we discussed on the last quarterly call. Again, the offers are in the market for short periods of time. And then, where it's free install and free equipment and a low rate, followed by going back to the $300 equipment fee, $150 install, and normal rack rates.

James Holanda: No, same as we discussed on the last quarterly call. Again, the offers are in the market for short periods of time, then where it's free install and free equipment and a low rate followed by going back to the $300 equipment fee, $150 install, and normal rack rates, that continues. The Opensignal data that we continue to get on a very regular basis, again, while it was 0% at the end of 2025, shows up as 1% here so far in 2026. It hasn't had any materiality in regards to competition. Having said that, we are highly focused on keeping track of that across our geographies on a very regular basis as a prudent step to track to see if that changes, we'll be happy to provide updates on future quarters as well.

Jim Holanda: No, same as we discussed on the last quarterly call. Again, the offers are in the market for short periods of time, then where it's free install and free equipment and a low rate followed by going back to the $300 equipment fee, $150 install, and normal rack rates, that continues. The Opensignal data that we continue to get on a very regular basis, again, while it was 0% at the end of 2025, shows up as 1% here so far in 2026. It hasn't had any materiality in regards to competition. Having said that, we are highly focused on keeping track of that across our geographies on a very regular basis as a prudent step to track to see if that changes, we'll be happy to provide updates on future quarters as well.

Speaker #2: And that continues. And the open signal data that we continue to get on a very regular basis again while it was 0% at the end of '25 shows up as 1% here so far in '26.

Speaker #2: So it hasn't had any materiality in regards to competition. Having said that, we are highly focused on keeping track of that across our geographies on a very regular basis.

Speaker #2: As a prudent step changes and we'll be happy to provide updates on future quarters as well.

Speaker #6: Great. Thank you.

Steven Cahall: Great. Thank you.

Speaker #1: Your next question comes from the line of Sam McHugh with BNP. Your line is open. Please go ahead.

Operator 2: Your next question comes from the line of Sam McHugh with BNP. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Sam McHugh with BNP. Your line is open. Please go ahead.

Speaker #7: Hey. Good afternoon. A couple of related questions I guess. Optimum talked today about walking away from some very low penetration footprint areas. I don't know if you have any similar or would consider the same in some of the super little footprint part one.

Sam McHugh: You can ask me those couple of related questions, I guess. Optimum talked today about walking away from some very low penetration footprint areas. I don't know if you have any similar or would consider the same in some of the super rural footprint, part one. The second question is, you talked about long-term penetration above the current 34%. As we think about your footprint between fiber and non-fiber overbuild market, how should we think about the barbell of market share? Is it like 25% in fiber markets and 45 outside of fiber? Some color there would be too powerful. I have a follow-up in a second on Starlink as well.

Speaker #7: And the second question is you talked about long-term penetration above the current 34%. As we think about your footprint between fiber and non-fiber overbuild markets, how should we think about the barbell of market shares?

Speaker #7: Are you like 25% in fiber markets and 45% outside of fiber? Some color there would be too powerful. I have a follow-up in a second on Starlink as well.

Speaker #2: Let me just say for now, Sam, that I view low-penetration markets as an opportunity. And so, I had not heard that on the Optimum remarks.

James Holanda: Let me just say for now, Sam, that I view low penetration markets as an opportunity. I had not heard that on the Optimum remarks, but certainly in the six months I've been here so far, I have not seen anything that would indicate that that would be a strategy that we would pursue at this time. In terms of fair share and overall penetration where we're the only gig provider versus where we compete against one other gigabit or fibered competitor or two-plus, our penetrations vary quite differently, I think, based on the five family of brands and companies over the last nine years that make up what Sparklight and Cable One are today.

Jim Holanda: Let me just say for now, Sam, that I view low penetration markets as an opportunity. I had not heard that on the Optimum remarks, but certainly in the six months I've been here so far, I have not seen anything that would indicate that that would be a strategy that we would pursue at this time. In terms of fair share and overall penetration where we're the only gig provider versus where we compete against one other gigabit or fibered competitor or two-plus, our penetrations vary quite differently, I think, based on the five family of brands and companies over the last nine years that make up what Sparklight and Cable One are today.

Speaker #2: But certainly in the six months I've been here so far, I have not seen anything that would indicate that that would be a strategy that we would pursue.

Speaker #2: At this time, in terms of fair share and overall penetration where we're the only gig provider versus where we compete against one other gigabit or fibered competitor or two plus, our penetration's very quite differently.

Speaker #2: I think based on the five family of brands and companies over the last nine years that make up what Sparklite and Cable One are today.

Speaker #2: And again, I think there is an opportunity to bring some standardization and some rationalization so that they reflect fair share over the long term.

James Holanda: Again, I think there is an opportunity to bring some standardization and some rationalization so that they reflect fair share over the long term, but that a lot has to do with how those companies performed and how they invested in them prior to our ownership. Those are the kinds of things that we are working on tackling, executing on, and fixing to a large degree. I remain pretty optimistic in terms of our ability to win fair share over the long run based on the investments and the execution that we're putting forth in the business today.

Jim Holanda: Again, I think there is an opportunity to bring some standardization and some rationalization so that they reflect fair share over the long term, but that a lot has to do with how those companies performed and how they invested in them prior to our ownership. Those are the kinds of things that we are working on tackling, executing on, and fixing to a large degree. I remain pretty optimistic in terms of our ability to win fair share over the long run based on the investments and the execution that we're putting forth in the business today.

Speaker #2: But that a lot has to do with how those companies performed and how they invested in them prior to our ownership. And so those are the kinds of things that we are working on tackling, executing on, and fixing to a large degree.

Speaker #2: And so I remain pretty optimistic in terms of our ability to win fair share over the long run based on the investments and the execution that we're putting forth in the business today.

Speaker #7: Got it. And then on you mentioned this 1%. I wasn't sure if that was a Starlink gross handshare or market share in your footprint.

Sam McHugh: Got it. You mentioned this 1%. I wasn't sure if that was a Starlink gross add share or market share in your footprint. I don't know if you could clarify what that 1% was. Thank you.

Speaker #7: I don't know if you could clarify what that 1% was. Thank you.

Speaker #2: That is correct. It's an.

James Holanda: That is correct.

Jim Holanda: That is correct.

Sam McHugh: Which one? Go on.

Speaker #7: Gone.

James Holanda: It's a Opensignal third-party data research estimated market share.

Jim Holanda: It's a Opensignal third-party data research estimated market share.

Speaker #2: It's an OpenSignal third-party data research estimated market share.

Speaker #7: Got it. Thank you.

Sam McHugh: Got it. Thank you.

Speaker #2: But recall. Sorry. Caleb. Recall on that front, right? That's rural edge usually. It doesn't mean that that's an exact overlap of our wired network because they have a product that's great for those rural edges where we don't reach.

James Holanda: recall-

Jim Holanda: Recall—

Operator 2: next-

Operator: Next—

Todd Koetje: Sorry, Caleb. Recall on that front, right? That's rural edge usually doesn't mean that that's an exact overlap of our wired network because they have a product that's great for those rural edges where we don't reach, but some of that has overlap in it. We monitor that, as Jim said, extremely closely.

Jim Holanda: Sorry, Caleb. Recall on that front, right? That's rural edge usually doesn't mean that that's an exact overlap of our wired network because they have a product that's great for those rural edges where we don't reach, but some of that has overlap in it. We monitor that, as Jim said, extremely closely.

Speaker #2: But some of that has overlap in it. But we monitor that as Jim said extremely closely.

Speaker #1: Your next question comes from the line of Frank Luthen with Raymond James. Your line is open. Please go ahead.

Operator 2: Your next question comes from the line of Frank Louthan with Raymond James. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Frank Louthan with Raymond James. Your line is open. Please go ahead.

Speaker #6: Great, thank you. You mentioned you were moving to digital. What percentage of gross ads come from digital currently, and what do you think that can get to?

Frank Louthan: Great, thank you. You mentioned you were moving to digital. What percentage of gross adds come from digital currently, and what do you think that can get to? Maybe I missed this, but did you update what your current overlap with fixed wireless was in your market, and what would that have been a year ago? Thank you.

Speaker #6: And then, maybe I missed this, but did you update what your current overlap with fixed wireless was in your market? And what would that have been a year ago?

Speaker #6: Thank you.

James Holanda: In terms of the digital sales channel, that is now accounting for roughly 25% of sales in Q2. My expectation is that that goes up to 35% to 40% over the next 12 to 18 months if we're following where the rest of the industry and some of my prior experiences would indicate in terms of that. The second piece of the question was?

Jim Holanda: In terms of the digital sales channel, that is now accounting for roughly 25% of sales in Q2. My expectation is that that goes up to 35% to 40% over the next 12 to 18 months if we're following where the rest of the industry and some of my prior experiences would indicate in terms of that. The second piece of the question was?

Speaker #2: In terms of the digital sales channel, that is now accounting for roughly 25% of sales. In Q2, my expectation is that that goes up to 35% to 40% over the next 12 to 18 months, if we're following kind of where the rest of the industry and some of my prior experiences would indicate.

Speaker #2: In terms of that. And then the second piece of the question was.

Frank Louthan: Yeah. Can you just update on your overlap of fixed wireless-

Frank Louthan: Yeah. Can you just update on your overlap of fixed wireless—

Speaker #6: Can you just update on your overlap of fixed wireless with your market? And where would that have been a year ago?

James Holanda: Oh

Jim Holanda: Oh.

Frank Louthan: with your market, and where would that have been a year ago?

Frank Louthan: With your market, and where would that have been a year ago?

Speaker #2: Yeah. Frank, I can take that one. I mean, it's a little over 80% right now based on our third-party research and the data that we have access to.

Todd Koetje: Yeah, Frank, I can take that one. It's a little over 80% right now based on our third-party research and the data that we have access to. It's always a little harder to identify that on a quarter-to-quarter basis. To your question on over the last year, it's moved up a little bit, but it was effectively at those levels this time last year as well.

Speaker #2: It's always a little harder to identify that on a quarter-to-quarter basis. But to your question on an over the last year, it's moved up a little bit.

Speaker #2: But I mean, it was effectively at those levels this time last year as well.

Speaker #6: And would that be the same in India's territory, or would they be a little better or a little worse?

Frank Louthan: Would that be the same in MBI's territory, or would they be a little more or a little worse?

Todd Koetje: A little bit behind us.

Speaker #2: A little bit behind us.

Speaker #6: Okay. Great. Thank you.

Frank Louthan: Okay, great. Thank you.

Speaker #2: You bet.

Todd Koetje: You bet.

Speaker #1: We have reached the end of our Q&A session. I will now turn the call back to Jim for closing remarks.

Operator 2: We have reached the end of our Q&A session. I will now turn the call back to Jim for closing remarks.

Operator: We have reached the end of our Q&A session. I will now turn the call back to Jim for closing remarks.

Speaker #2: Thanks, Caleb. And so as we wrap up, I'd just like to thank our Sparklite teammates for their continued commitment to our customers and to one another.

James Holanda: Thanks, Caleb. As we wrap up, I'd just like to thank our Sparklight teammates for their continued commitment to our customers and to one another. Over the past few months, I've had the opportunity to get out in the field across our footprint and meet our teammates, and those interactions have only reinforced what makes this company really special, and that's talented people who are deeply committed to serving our customers and our communities. It gives me a lot of confidence in terms of what we're trying to execute on here on the road ahead. We appreciate your time today and continued interest in Cable One, and we look forward to speaking with you again next quarter. Thank you, everybody.

Jim Holanda: Thanks, Caleb. As we wrap up, I'd just like to thank our Sparklight teammates for their continued commitment to our customers and to one another. Over the past few months, I've had the opportunity to get out in the field across our footprint and meet our teammates, and those interactions have only reinforced what makes this company really special, and that's talented people who are deeply committed to serving our customers and our communities. It gives me a lot of confidence in terms of what we're trying to execute on here on the road ahead. We appreciate your time today and continued interest in Cable One, and we look forward to speaking with you again next quarter. Thank you, everybody.

Speaker #2: Over the past few months, I've had the opportunity to get out in the field across our footprint and meet our teammates. And those interactions have only reinforced what makes this company really special.

Speaker #2: And that's talented people who are deeply committed to serving our customers and our communities. It gives me a lot of confidence in terms of what we're trying to execute on here and on the road ahead.

Speaker #2: So we appreciate your time today. And continued interest in Cable One. And we look forward to speaking with you again next quarter. Thank you, everybody.

Speaker #1: This concludes today's call. Thank you for attending. You may now disconnect.

Operator 2: This concludes today's call. Thank you for attending. You may now disconnect.

Operator: This concludes today's call. Thank you for attending. You may now disconnect.

Sam McHugh: This event has now concluded. Thank you for joining Cable One Q2 Earnings Release. The line will disconnect automatically.

Operator: This event has now concluded. Thank you for joining Cable One Q2 Earnings Release. The line will disconnect automatically.

Q2 2026 Cable One Inc Earnings Call

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