GCI Liberty Inc.

11/05/2025 | Press release | Distributed by Public on 11/05/2025 13:14

GCI LIBERTY REPORTSTHIRD QUARTER 2025 FINANCIAL RESULTS (Form 8-K)

GCI LIBERTY REPORTS
THIRD QUARTER 2025 FINANCIAL RESULTS

Englewood, Colorado, November 5, 2025 - GCI Liberty, Inc. ("GCI Liberty") (Nasdaq: GLIBA, GLIBK) today reported third quarter 2025 results.

Headlines include(1):

● GCI(2) revenue declined 2% to $257 million, operating loss was $488 million primarily due to a non-cash impairment and Adjusted OIBDA(3) declined 8% to $92 million
o GCI Consumer revenue decreased 4%
o GCI Business revenue was flat year-over-year
● GCI generated net cash provided by operating activities of $357 million and free cash flow(3) of $155 million over the trailing twelve months ended September 30, 2025
● Consumer cable modem subscribers declined 3% to 153,100 and consumer wireless lines in service increased 2% to 207,500
● GCI Liberty to launch $300 million rights offering to all stockholders

"GCI delivered solid results this quarter, reflecting our continued commitment to providing the highest quality connectivity services throughout Alaska," said GCI Liberty CEO, Ron Duncan. "As of the end of the quarter, we have exited our video business, completing our transition to a pure play broadband connectivity provider. We continue to see opportunity in our wireless business and we are actively managing our cost base. GCI was provisionally awarded over $140 million in BEAD grants from the Alaska Broadband Office and we remain steadfast in our commitment to closing the digital divide in Alaska. Additionally, we are announcing today a rights offering that we expect to commence before year-end. We believe this offering will provide an attractive source of liquidity to fund future opportunities at the corporate level."

1

Corporate Updates

On July 14, 2025, Liberty Broadband Corporation ("Liberty Broadband") completed the spin-off of the GCI business into a new entity called GCI Liberty (the "spin-off"). Additional information regarding the spin-off can be found in the prospectus filed by GCI Liberty with the Securities and Exchange Commission on July 2, 2025.

Please refer to the press release issued this morning for detail regarding the proposed rights offering.

Discussion of Results

The following table provides the financial results of GCI Liberty for the third quarter of 2024 and 2025. During the third quarter of 2025, GCI Liberty recognized a $525 million non-cash impairment charge related to intangible assets and goodwill. This impairment relates to intangible assets acquired during Liberty Broadband's 2020 acquisition of GCI Liberty, which were re-evaluated during the spin-off in July 2025. The impairment is included in operating loss presented below and excluded from Adjusted OIBDA.

3Q24

3Q25

% Change

(amounts in millions)

Consolidated Financial Metrics

Revenue

Consumer

$

120

$

115

(4)

%

Business

142

142

-

%

Total revenue

$

262

$

257

(2)

%

Operating expenses (exclusive of depreciation and amortization):

Consumer direct costs

$

(38)

$

(32)

16

%

Business direct costs

(32)

(31)

3

%

Technology expense

(66)

(68)

(3)

%

Total operating expenses (exclusive of depreciation and amortization)

$

(136)

$

(131)

4

%

Selling, general and administrative expense (exclusive of stock-based compensation)

$

(26)

$

(34)

(31)

%

Stock-based compensation

$

(4)

$

(2)

50

%

Depreciation and amortization

$

(55)

$

(53)

4

%

Operating income (loss)(a)

$

41

$

(488)

NM

Operating income margin (%)(a)

15.6%

(189.9%)

NM

Adjusted OIBDA(b)

$

100

$

92

(8)

%

Adjusted OIBDA margin(b) (%)

38.2%

35.8%

(240)

bps

Capital expenditures, net of grant proceeds

$

(39)

$

(52)

(33)

%

(a) During the three months ended September 30, 2025, GCI Liberty incurred a $525 million non-cash impairment charge related to intangible assets and goodwill.
(b) See reconciling schedule 1.

2

GCI revenue decreased 2% in the third quarter of 2025. Consumer revenue decreased 4%, driven primarily by declines in the video business and data subscriber losses, partially offset by growth in wireless. Business revenue was flat as growth in data revenue from service upgrades was offset by a decrease in wireless revenue from lower roaming revenue. GCI has exited the video business as of September 30, 2025.

Operating loss increased $529 million and Adjusted OIBDA decreased $8 million in the third quarter driven by lower revenue and increased selling, general and administrative expenses, partially offset by reduced operating expenses due to lower distribution costs. Selling, general and administrative expenses increased primarily due to higher personnel expenses, including healthcare costs and expenses related to accrued employee incentive payments. Operating loss was also impacted by an impairment charge of $525 million recognized during the third quarter related to intangible assets and goodwill.

Year to date, GCI has spent $152 million, net of grant proceeds, on capital expenditures related primarily to improvements to the wireless and data networks in rural Alaska. GCI's net capital expenditures for the full year 2025 are expected to be between $225 million and $250 million, with the lower end reflecting a delay in timing of additional investments in middle and last mile connectivity. A significant portion of the increased capital expenditures in 2025 are related to fulfilling the build-out requirements of the Federal Communications Commission's Alaska Plan, which is expected to be completed by the end of 2026, as well as continued network expansion in GCI's most important markets in rural Alaska, including the Bethel and AU-Aleutians fiber projects.

On a trailing twelve-month basis through the third quarter of 2025, net cash provided by operating activities totaled $357 million and free cash flow over the same period was $155 million.

3

GCI Consumer

(amounts in millions, except operating metrics)

3Q24

3Q25

% Change

GCI Consumer

Financial Metrics

Revenue

Data

$

61

$

59

(3)

%

Wireless

47

52

11

%

Other

12

4

(67)

%

Total revenue

$

120

$

115

(4)

%

Consumer direct costs

(38)

(32)

16

%

Consumer gross margin

$

82

$

83

1

%

Consumer gross margin (%)

68.3%

72.2%

390

bps

Operating Metrics

Data:

Cable modem subscribers(a)

157,400

153,100

(3)

%

Wireless:

Lines in service(b)

204,000

207,500

2

%

(a) A cable modem subscriber is defined by the purchase of cable modem service regardless of the level of service purchased. Small-to-Medium Business customers, promotional and suspended subscribers are included. If one entity purchases multiple cable modem service access points, each access point is counted as a subscriber.
(b) A wireless line in service is defined as a wireless device with a monthly fee for services. Small-to-Medium Business customers, promotional and suspended lines are included.

GCI Consumer revenue totaled $115 million in the third quarter of 2025, a 4% decrease compared to the prior year period. The decrease was driven primarily by a decline in video and data revenue, offset by growth in wireless. As of September 30, 2025, GCI has exited the video business.

Data revenue totaled $59 million, a 3% decrease, driven primarily by subscriber losses. Consumer cable modem subscribers declined 3% year-over-year bringing total consumer cable modem customers to 153,100. During the third quarter of 2025, GCI lost 1,400 consumer cable modem subscribers. Additionally, subscriber growth in rural areas was adversely impacted by an outage from a fiber break on a third-party network in which GCI uses capacity. As of September 30, 2025, service has been restored on the third-party network.

Wireless revenue totaled $52 million, an 11% increase, driven by an increase in federal wireless subsidies. Consumer wireless lines grew 2% year-over-year, bringing total consumer wireless lines to 207,500. During the third quarter of 2025, GCI added 500 consumer wireless lines.

4

GCI Consumer gross margin was 72.2% in the third quarter of 2025, a 390 bps increase from the same quarter last year. GCI Consumer direct costs decreased 16%, driven by lower video programming costs and temporary cost savings from a fiber break on a third-party network in which GCI uses capacity that has since been fully restored.

GCI Business

(amounts in millions, except operating metrics)

3Q24

3Q25

% Change

GCI Business

Financial Metrics

Revenue

Data

$

123

$

124

1

%

Wireless

11

10

(9)

%

Other

8

8

-

%

Total revenue

$

142

$

142

-

%

Business direct costs

(32)

(31)

3

%

Business gross margin

$

110

$

111

1

%

Business gross margin (%)

77.5%

78.2%

70

bps

GCI Business revenue totaled $142 million in the third quarter of 2025, flat with the prior year period. The increase in business data revenue from service upgrades with existing healthcare and education customers was offset by a decrease in wireless revenue due to lower roaming revenue.

GCI Business gross margin was 78.2% in the third quarter of 2025, a 70 bps increase from the same quarter last year. GCI Business direct costs decreased 3% in the third quarter of 2025, driven primarily by temporary cost savings from a fiber break on a third-party network in which GCI uses capacity that has since been fully restored.

FOOTNOTES

1)

Unless otherwise noted, highlights compare financial information for the three months ended September 30, 2025 to the same period in 2024. GCI Liberty will discuss these highlights and other matters on GCI Liberty's earnings conference call that will begin at 11:15 a.m. (E.T.) on November 5, 2025. For information regarding how to access the call, please see "Important Notice" later in this document.

2)

GCI Liberty's principal operating asset is GCI Holdings, which provides data, mobile, voice and managed services to consumer, business, government and carrier customers throughout Alaska.

3)

For a definition of Adjusted OIBDA, Adjusted OIBDA margin and free cash flow and applicable non-GAAP reconciliations, see the accompanying schedule 1.

5

NOTES

Cash and Debt

The following presentation is provided to separately identify cash, cash equivalents, restricted cash and debt of GCI Liberty as of June 30, 2025 and September 30, 2025.

(amounts in millions)

6/30/2025

9/30/2025

Cash, Cash Equivalents and Restricted Cash:

$

117

$

137

Debt:

Senior Notes(a)

$

600

$

600

Senior Credit Facility

369

368

Tower Obligations and Other(b)

78

77

Total Debt

$

1,047

$

1,045

GCI Leverage(c)

2.3x

2.3x

Unamortized premium and deferred loan costs

14

13

Tower obligations and finance leases (excluded from GAAP Debt)

(74)

(73)

Total Debt (GAAP)

$

987

$

985

Other Financial Obligations:

Preferred Stock(d)

$

-

$

10

(a) Principal amount of Senior Notes.
(b) Includes the Wells Fargo Note Payable and current and long-term obligations under tower obligations and finance leases.
(c) As defined in GCI's credit agreement.
(d) $10 million of non-voting preferred stock of GCI Liberty was issued to Liberty Broadband in the third quarter of 2025 and then sold by Liberty Broadband to third party buyers. The preferred stock has a 12% dividend rate and $1,000 per share liquidation price plus accrued and unpaid dividends. The mandatory redemption date is July 14, 2032.

GCI Liberty cash, cash equivalents and restricted cash increased $20 million in the third quarter of 2025 primarily due to cash from operations, partially offset by capital expenditures, net of grant proceeds.

GCI Liberty debt was flat in the third quarter of 2025.

As of September 30, 2025, GCI's credit facility has undrawn capacity of $377 million (net of letters of credit), and GCI's leverage as defined in its credit agreement is 2.3x.

GCI Liberty Inc. published this content on November 05, 2025, and is solely responsible for the information contained herein. Distributed via Edgar on November 05, 2025 at 19:15 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]