Cable One (NYSE: CABO) shares plunged 13.66% in the post-market trading session on Thursday following the release of its first-quarter 2025 financial results, which fell short of analysts' expectations and revealed significant challenges for the company.

The telecommunications company reported a sharp decline in net income, which fell to $2.607 million from $37.35 million in the same quarter last year, missing the IBES estimate of $47.8 million by a wide margin. Earnings per share came in at $0.46, significantly below the analyst consensus estimate of $8.41. Revenue for the quarter declined 5.9% year-over-year to $380.601 million, falling short of the IBES estimate of $386.9 million.

Adding to investors' concerns, Cable One announced the suspension of its quarterly cash dividend, a move that represents approximately $67 million annually that the company plans to allocate towards accelerated debt repayment, refinancing support, and ongoing investment in organic growth initiatives. The company also reported a decrease in residential data subscribers and average revenue per user (ARPU), with residential data ARPU falling 3.1% to $78.84. These factors, combined with the earnings miss and revenue decline, have significantly shaken investor confidence in Cable One's near-term prospects, leading to the sharp stock sell-off.