Cable One Warns It May Seek Chapter 11 Amid Near-Term Debt Maturities
Key Facts
Cable One warned that seeking protection under Chapter 11 of the U.S. Bankruptcy Code could become necessary if it cannot complete a financing transaction and address near-term debt maturities on acceptable terms, or if a default occurs that it cannot resolve in time. The warning came in its third-quarter 2026 report, as results showed declining revenue and a swing to a net loss. The company directly linked the possibility of bankruptcy to its ability to secure financing and manage debt maturities, and did not present it as inevitable. It said available liquidity and cash flows from operations would not be sufficient to meet obligations as they come due. The warnings put refinancing or extending debt maturities at the center of the company’s efforts to avoid a liquidity crisis.
Cable One’s revenue was $332.2 million in the third quarter of 2026, compared with $376.0 million in the same period of 2025. The company posted a net loss of $431.8 million, after reporting net income of $86.5 million a year earlier. Third-quarter noncash impairments included $159.0 million related to franchise agreements and $253.1 million related to goodwill. The quarterly loss therefore included large noncash accounting items, alongside declining revenue. Those items do not eliminate the financing pressures the company identified in its report.
The revenue decline came as residential customer data revenue fell $23.5 million, or 10.3% year over year, which the company attributed mainly to a drop in subscribers and lower average revenue per user. Residential video revenue also fell $9.3 million, or 20.7%, due to a decline in service subscribers. On its balance sheet, Cable One said it had $674.8 million in cash and cash equivalents as of September 30, 2026, against total debt of $3.55 billion. It had drawn $1,050.0 million under its revolving credit facility, which had nominal availability of $200.0 million. The figures show some revenue sources weakening as the company carries substantial financing obligations.
Cable One identified several maturities in 2028: a $1.25 billion revolving credit facility due in February, $345.0 million in convertible notes due in March, and $694.3 million in borrowings under a secured term loan due in May. The company said existing liquidity and operating cash flows would not be sufficient to meet these obligations when due. On October 12, it said it had reached a preliminary agreement with GTCR and other lenders on the key terms of a financing solution that it expects to address $2.45 billion in obligations and near-term maturities. But implementation of part of the arrangement faces litigation tied to the acquisition of Mega Broadband. CoBank brought the lawsuit that led to a temporary restraining order, alleging that payment for the transaction would constitute a constructive fraudulent transfer.
A hearing is scheduled for November 13, 2026, to consider Cable One’s request to lift the temporary restraining order blocking its acquisition of Mega Broadband. The company said it received a letter on November 2 from Mega Broadband and investors affiliated with GTCR accusing it of breaching obligations under the transaction agreements. It also disclosed receiving written communications from lawyers for a group of its creditors threatening claims similar to those raised by CoBank. These legal developments add uncertainty around the transaction and the financing tied to it. Cable One shares closed at $4.3 on November 6, 2026.
Optimum, which is separate from Cable One, faces more immediate maturity pressures: it said it has about $4.1 billion in principal due in April 2027 and about $2.2 billion in July of the same year. It said cash, projected operating cash flows and committed financing or other finalized arrangements would not be sufficient to cover these payments, raising substantial doubt about its ability to continue as a going concern. Its cash and cash equivalents totaled $1,100,796 thousand as of September 30, 2026, against principal due of $4,115,000 thousand in April and $2,225,000 thousand in July. It said addressing the obligations would depend on restructuring, refinancing, extending maturities or raising additional capital, while warning there was no assurance these efforts would succeed. Cable One, meanwhile, tied the possibility of seeking Chapter 11 to its ability to complete financing and address its maturities, with the November 13 hearing on the transaction approaching.