- Cable One warned bankruptcy is a real possibility after reporting a $431.8 million Q3 net loss and $3.55 billion in debt
- Optimum lost 57,900 residential broadband customers sequentially and posted a $2.86 billion Q3 net loss
- Both cable operators face looming debt maturities
There’s trouble in cable land. Cable operators Cable One and Optimum appear to be fighting for their lives, reporting steep losses in Q3 and debt maturities looming on the horizon.
In its Q3 report, Cable One outright warned it may be forced to file for bankruptcy if it is unable to secure a financing deal to address its debt.
“The Company's existing sources of liquidity and cash flows from operations will be insufficient to repay the debt described above on the applicable maturity dates,” it noted in a press release. “If the Company is unable to consummate a financing transaction and address near-term debt maturities on acceptable terms or at all, or if a default occurs under its debt instruments that it is unable to timely cure, it may become necessary for the Company to seek relief under Chapter 11 of the U.S. Bankruptcy Code.”
The warning came as Cable One reported a nearly 12% year on year decline in revenue to $332 million in Q3 and a net loss of $431.8 million. The company said it has $3.55 billion in debt and a cash balance of $674.8 million.
And while it had its best subscriber performance in seven quarters, it still lost nearly 48,000 residential broadband customers year on year (7,500 sequentially) and ARPU declined 4.5% to $78.48.
Mega Broadband mess
As the company works to revamp its sales channels and go-to-market strategy, it’s contending with legal troubles related to the Mega Broadband deal it announced in January.
The deal was intended to give Cable One full ownership of the Vyve Broadband parent company, but a judge put it on hold in October after Cable One lender CoBank filed suit to stop the transaction. Cable One responded to the lawsuit with a motion to dissolve the temporary restraining order. A hearing on that motion is scheduled for this Friday, November 13.
Following the lawsuit, Mega Broadband and private equity firm GTCR alleged Cable One breached its contractual obligations in failing to adequately head off CoBank’s actions and have the restraining order lifted. Cable One contested those assertions and noted it is not obligated to close the Mega Broadband deal as long as the restraining order is in place.
“Put simply, we think they are trying to negotiate their way out (with GTCR and creditors), with no guarantee of success, and if they can't find an agreement it may become necessary to 'seek relief under Chapter 11 of the US Bankruptcy Code,’” BNP Paribas’ Sam McHugh wrote to investors.
Optimum about to hit a wall
Optimum, meanwhile, skipped its Q3 2026 earnings call altogether, opting instead to release its results via a 10-Q filing with the Securities and Exchange Commission. That filing showed a net loss of $2.86 billion on $2 billion in revenue for the quarter.
It lost 212,900 residential broadband customers year on year and 57,900 sequentially, ending Q3 with 3.66 million. Optimum reported nearly 3.2 fiber to the home passings, but just 764,200 fiber customers (including 739,500 residential fiber customers). ARPU fell nearly $2 year on year to $131.37.
The decision to forego an earnings call came after The Wall Street Journal reported last month that Optimum was preparing to file for bankruptcy before the end of the year.
Optimum has been beleaguered for some time, fighting legal battles with its creditors since late last year. In June, it created a new subsidiary to protect its Optimum East Cable assets, a move which prompted its creditors to sue the operator in September.
New Street Research’s Vikash Harlalka wrote in a note to investors that the company’s quarterly results don’t hold as much weight as they once did.
“We don’t think these results matter anymore as the survival of the company is on the line” Harlalka wrote. “The company has only a few months before they hit a wall of debt maturities. They need to secure a deal with creditors soon or bankruptcy may be the only path forward.”
For what it's worth, they're not the only legacy cable players in hot water. Charter Communications last week announced a $2 billion cost cutting scheme after losing 233,000 subscribers and posting a $2.4 billion net loss in Q3.
Read more about Optimum and Cable One on Fierce Network:
Judge halts Cable One’s $480M Mega Broadband deal
Cable One makes big move to expand Clearwave Fiber
Lenders sue Optimum over debt maneuvering
Optimum loses 40,000 more broadband subs in Q2 2026
Optimum moves to protect Eastern US assets as debt standoff drags on