Cable One, Inc.CABO
Cable One, Inc. Commitments Disclosure
COMMITMENTS AND CONTINGENCIES
Contractual Obligations. The Company has obligations to make future payments for goods and services under certain contractual arrangements. These contractual obligations secure the future rights to various goods and services to be used in the normal course of the Company’s operations. In accordance with applicable accounting rules, the future rights and obligations pertaining to firm commitments, such as certain purchase obligations under contracts, are not reflected as assets or liabilities in the consolidated balance sheets.
The following table summarizes the Company’s outstanding contractual obligations as of December 31, 2025 (including amounts associated with data processing services, high-speed data connectivity and fiber-related obligations) and the estimated effect and timing that such obligations are expected to have on the Company’s liquidity and cash flows in future periods (in thousands):
| Year Ending December 31, | Programming Purchase Commitments(1) | Lease Payments(2) | Debt Payments(3) | Other Purchase Obligations(4) | Total | |||||||||||||||||||||||||||
| 2026 | $ | 81,348 | $ | 3,625 | $ | 592,992 | $ | 534,561 | $ | 1,212,526 | ||||||||||||||||||||||
| 2027 | 50,866 | 2,607 | 17,992 | 17,944 | 89,409 | |||||||||||||||||||||||||||
| 2028 | 28,629 | 1,771 | 1,079,700 | 7,834 | 1,117,934 | |||||||||||||||||||||||||||
| 2029 | 11,070 | 796 | 936,128 | 5,707 | 953,701 | |||||||||||||||||||||||||||
| 2030 | 5,682 | 460 | 582,013 | 2,875 | 591,030 | |||||||||||||||||||||||||||
| Thereafter | — | 1,845 | — | — | 1,845 | |||||||||||||||||||||||||||
| Total | $ | 177,595 | $ | 11,104 | $ | 3,208,825 | $ | 568,921 | $ | 3,966,445 | ||||||||||||||||||||||
(1)Programming purchase commitments represent contracts that the Company has with cable television networks and broadcast stations to provide programming services to subscribers. The amounts reported represent estimates of the future programming costs for these purchase commitments based on estimated subscriber numbers, tier placements as of December 31, 2025 and the per-subscriber rates contained in the contracts. Actual amounts due under such contracts may differ from the amounts above based on the actual subscriber numbers and tier placements at the time. Programming purchases pursuant to non-binding commitments are not reflected in the amounts shown.
(2)Lease payments include payment obligations related to the Company’s outstanding finance and operating lease arrangements as of December 31, 2025.
(3)Debt payments include scheduled principal repayment obligations for the Company’s outstanding debt instruments as of December 31, 2025.
(4)Other purchase obligations include purchase obligations related to capital projects and other legally binding commitments. Other purchase orders made in the ordinary course of business are excluded from the amounts shown but are included within accounts payable and accrued liabilities in the consolidated balance sheet. The amount for 2026 also includes an estimate of the Put Price payable upon the close of the MBI acquisition. The timing of such close and the actual Put Price payable had not yet been determined as of December 31, 2025, but for purposes of this table, the Company has assumed an October 1, 2026 close date. Based on currently available information as of the date of this Annual Report on Form 10-K, if closing occurs on October 1, 2026, the Put Price payable by the Company for the equity interests of MBI that it does not already own will be approximately $480 million. Refer to note 5 for further information on the New MBI Net Option.
The Company incurs the following costs as part of its operations, however, they are not included within the contractual obligations table above for the reasons discussed below:
•The Company rents space on utility poles in order to provide services to subscribers. Generally, pole rentals are cancellable on short notice. However, the Company anticipates that such rentals will recur. Rent expense for pole attachments was $15.6 million, $16.8 million and $15.0 million for 2025, 2024 and 2023, respectively.
•Fees imposed on the Company by various governmental authorities, including franchise fees, are passed through on a monthly basis to the Company’s customers and are periodically remitted to authorities. These fees were $16.9 million, $24.1 million and $26.9 million for 2025, 2024 and 2023, respectively. As the Company acts as principal in these arrangements, these fees are reported in video and voice revenues on a gross basis with corresponding expenses included within operating expenses in the consolidated statements of operations and comprehensive income (loss).
•The Company has franchise agreements requiring plant construction and the provision of services to customers within the franchise areas. In connection with these obligations under existing franchise agreements, the Company obtains surety bonds or letters of credit guaranteeing performance to municipalities and public utilities and payment of insurance premiums. Such surety bonds and letters of credit totaled $32.3 million and $38.8 million as of December 31, 2025 and 2024, respectively. Payments under these arrangements are required only in the remote event of nonperformance. The Company does not expect that these contingent commitments will result in any amounts being paid.
Litigation and Legal Matters. The Company is subject to complaints and administrative proceedings and has been a defendant in various civil lawsuits that have arisen in the ordinary course of its business. Such matters include contract disputes; actions alleging negligence, invasion of privacy, trademark, copyright and patent infringement, and violations of applicable wage and hour laws; statutory or common law claims involving current and former employees; and other matters. Although the outcomes of any legal claims and proceedings against the Company cannot be predicted with certainty, based on currently available information, the Company believes that there are no existing claims or proceedings that are likely to have a material adverse effect on its business, financial condition, results of operations or cash flows.
Regulation in the Company’s Industry. The Company’s operations are extensively regulated by the FCC, some state governments and most local governments. The FCC has the authority to enforce its regulations through the imposition of substantial fines, the issuance of cease and desist orders and/or the imposition of other administrative sanctions, such as the revocation of FCC licenses needed to operate certain transmission facilities used in connection with cable operations. Future legislative and regulatory changes could adversely affect the Company’s operations.
Equity Investments. The Company has certain obligations with respect to certain of its equity investments. Refer to note 5 for further information.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2016 | Mar 1, 2017 | |
| 2015 | Mar 7, 2016 | |
About Commitments Disclosures
Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.
Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.