Cable One, Inc.CABO
Cable One, Inc. Leases Disclosure
LEASES
As a lessee, the Company has operating leases for buildings, equipment, data centers, fiber optic networks and towers and finance leases for buildings and fiber optic networks. These leases have remaining lease terms ranging from less than one year to 40 years, with some including an option to extend the lease for up to 20 additional years and some including an option to terminate the lease within one year.
As a lessor, the Company has operating leases for the use of its fiber optic networks, towers and customer premise equipment. These leases have remaining lease terms ranging from less than one year to ten years, with some including a lessee option to extend the leases for up to additional years and some including an option to terminate the lease within one year.
Significant judgment is required when determining whether a fiber optic network access contract contains a lease, defining the duration of the lease term and selecting an appropriate discount rate, as discussed below:
•The Company concluded it was the lessee or lessor for fiber optic network access arrangements only when i) the asset is specifically identifiable, ii) substantially all the economic benefit is obtained by the lessee and iii) the lessee’s right to direct the use of the asset exists.
•The Company’s lease terms are only for periods in which there are enforceable rights. For accounting purposes, a lease is no longer enforceable when both the lessee and the lessor each have the right to terminate the lease without requiring permission from the other party with no more than an insignificant penalty. The Company’s lease terms are impacted by options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options.
•Most of the Company’s leases do not contain an implicit interest rate. Therefore, the Company held discussions with lenders, evaluated its published credit rating and incorporated interest rates on currently held debt in determining discount rates that reflect what the Company would pay to borrow on a collateralized basis over similar terms for its lease obligations.
As of December 31, 2025, additional operating leases that have not yet commenced were not material. Additionally, lessor accounting disclosures were not material as of and for the years ended December 31, 2025, 2024 and 2023.
Lessee Financial Information. The Company’s ROU assets and lease liabilities consisted of the following (in thousands):
| As of December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| ROU Assets | ||||||||||||||
| Property, plant and equipment, net: | ||||||||||||||
| $ | 4,551 | $ | 5,999 | |||||||||||
| Other noncurrent assets: | ||||||||||||||
| $ | 7,087 | $ | 8,052 | |||||||||||
| Lease Liabilities | ||||||||||||||
| Accounts payable and accrued liabilities: | ||||||||||||||
| $ | 2,602 | $ | 2,805 | |||||||||||
| Current portion of long-term debt: | ||||||||||||||
| $ | 542 | $ | 675 | |||||||||||
| Long-term debt: | ||||||||||||||
| $ | 2,412 | $ | 3,768 | |||||||||||
| Other noncurrent liabilities: | ||||||||||||||
| $ | 3,891 | $ | 4,871 | |||||||||||
| Total: | ||||||||||||||
| Finance leases | $ | 2,954 | $ | 4,443 | ||||||||||
| Operating leases | $ | 6,493 | $ | 7,676 | ||||||||||
The components of the Company’s lease expense were as follows (in thousands):
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Finance lease expense: | ||||||||||||||||||||
Amortization of ROU assets | $ | 868 | $ | 1,084 | $ | 1,138 | ||||||||||||||
| Interest on lease liabilities | 227 | 326 | 347 | |||||||||||||||||
| Operating lease expense | 3,705 | 4,124 | 4,989 | |||||||||||||||||
| Short-term lease expense | 52 | 98 | 544 | |||||||||||||||||
| Variable lease expense | 24 | 23 | 23 | |||||||||||||||||
| Total lease expense | $ | 4,876 | $ | 5,655 | $ | 7,041 | ||||||||||||||
Amortization of ROU assets is included within depreciation and amortization expense; interest on lease liabilities is included within net interest expense; and operating, short-term and variable lease expense is included within operating expenses and selling, general and administrative expenses in the consolidated statements of operations and comprehensive income (loss).
Supplemental lessee financial information is as follows (in thousands):
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||||||||
| Finance leases - financing cash flows | $ | 735 | $ | 833 | $ | 1,077 | ||||||||||||||
| Finance leases - operating cash flows | $ | 227 | $ | 326 | $ | 347 | ||||||||||||||
| Operating leases - operating cash flows | $ | 3,900 | $ | 4,033 | $ | 4,807 | ||||||||||||||
ROU assets obtained in exchange for lease liabilities: | ||||||||||||||||||||
Finance leases(1) | $ | 877 | $ | 24 | $ | (8) | ||||||||||||||
Operating leases | $ | 2,329 | $ | 765 | $ | 4,244 | ||||||||||||||
(1)The amount for 2023 includes a $2.3 million reversal as a result of the remeasurement of an ROU asset due to a change in estimated remaining renewal periods.
| As of December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| Weighted average remaining lease term: | ||||||||||||||
| Finance leases (in years) | 8.2 | 8.7 | ||||||||||||
| Operating leases (in years) | 3.2 | 3.4 | ||||||||||||
| Weighted average discount rate: | ||||||||||||||
| Finance leases | 7.22 | % | 7.23 | % | ||||||||||
| Operating leases | 5.93 | % | 5.51 | % | ||||||||||
As of December 31, 2025, the future maturities of existing lease liabilities are as follows (in thousands):
| Year Ending December 31, | Finance Leases | Operating Leases | ||||||||||||
| 2026 | $ | 726 | $ | 2,899 | ||||||||||
| 2027 | 538 | 2,069 | ||||||||||||
| 2028 | 464 | 1,307 | ||||||||||||
| 2029 | 385 | 411 | ||||||||||||
| 2030 | 289 | 171 | ||||||||||||
| Thereafter | 1,591 | 254 | ||||||||||||
| Total | 3,993 | 7,111 | ||||||||||||
| Less: Present value discount | (1,039) | (618) | ||||||||||||
| Lease liability | $ | 2,954 | $ | 6,493 | ||||||||||
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 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.