Quarterly Report for Quarter Ending June 30, 2025 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations

Cautionary Statement Concerning Forward-Looking Statements

This Quarterly Report on Form 10-Q and the documents incorporated by reference herein contain forward-looking statements regarding future events and results that are subject to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, are statements that could be deemed forward-looking statements. These statements are based on current expectations, estimates, forecasts, and projections about the industries in which we operate and the beliefs and assumptions of our management. Words such as "expects," "anticipates," "predicts," "projects," "intends," "plans," "believes," "seeks," "estimates," "continues," "endeavors," "strives," "may," "will," "proposes," "potential," "could," "should," "outlook" or variations of such words and similar expressions are intended to identify such forward-looking statements. In addition, any statements that refer to projections of future financial performance, anticipated growth and trends in businesses, and other characterizations of future events or circumstances are forward-looking statements. Readers are cautioned these forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties, which could cause actual results to differ materially and adversely from those reflected in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in this Quarterly Report on Form 10-Q and, in particular, the risks discussed under the caption "Risk Factors" in Part II, Item 1A, and those discussed in other documents the Company filed with the Securities and Exchange Commission ("SEC"). Actual results may differ materially and adversely from those expressed in any forward-looking statements. The Company undertakes no obligation to revise or update any forward-looking statements for any reason.

Introduction

This Management's Discussion and Analysis section provides an overview of Cincinnati Bell Inc.'s financial condition as of June 30, 2025 and the results of operations for the three and six months ended June 30, 2025 and 2024. This discussion should be read in conjunction with the accompanying Condensed Consolidated Financial Statements and accompanying notes as well as the Company's Annual Report on Form 10-K for the year ended December 31, 2024. Results for interim periods may not be indicative of results for the full year or any other interim period.

Business Overview

Cincinnati Bell Inc. and its consolidated subsidiaries ("Cincinnati Bell," "we," "our," "us" or the "Company") provide integrated communications that keep consumer and enterprise customers connected with each other and with the world. We provide Data, Video, and Voice solutions to consumer and enterprise customers over an expanding fiber network and a legacy copper network. The Company serves customers in two distinct regions. These regions are defined by the Company as 1) Greater Cincinnati, which includes Cincinnati, Ohio, a radius of approximately 25 miles around Cincinnati, Ohio, including parts of northern Kentucky and southeastern Indiana, Dayton, Ohio, and Columbus, Ohio that is served through our altafiber brand and 2) Hawaii, which includes the island of Oahu and the neighboring islands that is served through our Hawaiian Telcom brand. The Company operates its businesses through one reportable business segment.

During 2025, the U.S. announced a variety of trade-related actions, including the imposition of tariffs on imports from several countries. In response, many countries announced their own retaliatory tariffs. Certain tariffs were paused for a period of time but have not been withdrawn. The global trade environment continues to be volatile. The likelihood of the U.S. or its trading partners resuming tariffs, imposing new or reciprocal tariffs, or other forms of trade-related sanctions is highly uncertain. We do not yet know the impact of the recent government actions or the potential changes in global political conditions on our business due to uncertainties as the situation continues to evolve.

Sale of IT Services Business

On February 2, 2024, the Company entered into a definitive purchase agreement (the "Purchase Agreement") with TowerBrook Capital Partners ("TowerBrook") which provided that TowerBrook would acquire the CBTS and OnX businesses (the "Disposal Group") from the Company for a purchase price of $670.0 million (the "Proceeds"). Management evaluated the criteria to report the Disposal Group as held for sale and concluded that all of the criteria were met as of February 2024. As a result, the Company reported the assets and the liabilities included in the Disposal Group as held for sale and the operations as discontinued for interim periods and comparable prior year periods.

On December 2, 2024 (the "Closing Date"), upon the terms and subject to the conditions set forth in the Purchase Agreement, the divestiture of the Disposal Group was completed. The Proceeds from the Purchase Agreement included cash from TowerBrook in the amount of $688.4 million. The Company recorded a preliminary pre-tax gain on sale of the Disposal Group of $93.7 million upon closing of the sale which was the amount of cash proceeds received (net of cash divested) less costs to sell in excess of the Disposal Group's carrying value. In the first quarter of 2025, the Proceeds were adjusted for post-closing adjustments as defined in the Purchase Agreement, and the Company recorded a liability of $14.5 million that was paid to TowerBrook in April 2025. The pre-tax gain of $93.7 million recorded in the prior year was reduced by a pre-tax loss of $14.5 million recorded in the first quarter of 2025, for a net pre-tax gain on sale of the Disposal Group of $79.2 million. The proceeds received in 2024 were used to pay on the Closing Date (1) $180.0 million of existing debt and accrued interest under the Credit Agreement, (2) $214.3 million of existing debt and accrued interest under the Company's Network and CBTS Receivables Facilities, (3) $23.9 million of consideration payable for transaction-related bonuses, and (4) transaction costs of $7.1 million primarily consisting of legal and transaction-related advisory fees associated with the sale.

Discussion of Results of Operations

The Company provides products and services that can be categorized as Data, Video, Voice or Other to both residential and commercial customers. These products and services are further categorized by management as Strategic, Legacy, or Other. Cincinnati Bell Telephone Company LLC ("CBT"), a subsidiary of the Company, is the incumbent local exchange carrier ("ILEC") for a geography that covers a radius of approximately 25 miles around Cincinnati, Ohio, and includes parts of northern Kentucky and southeastern Indiana. CBT has operated in this territory for over 150 years. In 2022, the Company announced that we will begin doing business as "altafiber" and started our network expansion outside of this territory to provide fiber services to adjacent markets. Voice and data services that are delivered beyond the Company's ILEC territory, particularly in Dayton, Mason, and Columbus, Ohio, are provided through the operations of Cincinnati Bell Extended Territories LLC ("CBET"), a subsidiary of CBT. On July 2, 2018, the Company acquired Hawaiian Telcom. Hawaiian Telcom is the ILEC for the State of Hawaii and the largest full-service provider of communications services and products in the state. Originally incorporated in Hawaii in 1883 as Mutual Telephone Company, Hawaiian Telcom has a strong heritage of over 140 years as Hawaii's communications carrier. Its services are offered on all of Hawaii's major islands, with recent expansion of its video service from Oahu to all of the major islands. On May 2, 2022, the Company acquired Agile, based in Canton, Ohio. Agile leases wireless infrastructure assets to third parties and provides connectivity through hybrid fiber wireless data networks primarily to customers in Ohio and Pennsylvania. On April 17, 2023, the Company acquired Ohio Transparent Telecom Inc. ("OTT"). OTT provides network security, data connectivity, and unified communications solutions to commercial and enterprise customers across multiple sectors throughout Ohio and Michigan.

Strategic revenue include internet access for speeds that meet or exceed 100 megabits per second and Enterprise Fiber, each categorized below as Data as well as Video. The Company is able to deliver speeds of up to six gigabits per second to approximately 80% of the Cincinnati ILEC operating territory and speeds up to one gigabit or more per second to nearly 65% of Hawaii's total addressable market. Enterprise Fiber products include metro-ethernet, dedicated internet access, wavelength, IRU contracts, connectivity services provided by Agile, and wireless backhaul to macro-towers and small cells. Hawaiian Telcom Enterprise Fiber revenue also includes revenue from the SEA-US cable system. As enterprise customers migrate from legacy products and copper-based technology, our metro-ethernet product becomes the preferred method of transport due to its ability to support multiple applications on a single physical connection.

Legacy revenue include internet access for speeds of less than 100 megabits per second, traditional voice lines, consumer and business long distance, switched access, digital trunking, DSL, DS0, DS1, DS3, and other value-added services such as caller identification, voicemail, call waiting and call return. Legacy products also include certain communications services including data and VoIP services, tailored solutions that include converged IP communications of data, voice and mobility applications, MPLS (Multi-Protocol Label Switching) and conferencing services.

Other revenue is comprised of wire care, time and materials projects, advertising, management of distributed antenna systems, certain pass-through fees such as franchise fees and regulatory fees, other fees that are not billed on a monthly recurring basis, and subsidized fiber build project revenue related to extending the Company's fiber network in the Greater Cincinnati territory subsidized through our UniCity program and in Hawaii subsidized through a customer contract. Other revenue also includes revenue contributed by Hawaiian Telcom for the sale of hardware and maintenance contracts as well as installation projects and cloud services which include storage, SLA-based monitoring and management, cloud computing and cloud consulting.

* Internet speeds of 100mbps or more

** Fiber-to-the-Premise (FTTP).

*** Internet speeds of less than 100mbps

* Internet speeds of 100mbps or more

** Fiber-to-the-Premise (FTTP); includes units passed for both consumer and business on Oahu and neighboring islands

*** Internet speeds of less than 100mbps

**** In the first quarter of 2025, the Company updated its definition and reporting method in Hawaii. Voice Lines as of June 30, 2024 has also been updated to reflect the change in definition and reporting method.

Revenue

Total Network revenue

Revenue totaling $274.8 million and $551.2 million for the three and six months ended June 30, 2025 increased $2.0 million and $6.8 million, respectively, compared to the same periods in 2024 primarily due to increased Strategic revenue from growth in the Strategic Internet subscriber base which more than offset the decrease in Video, Legacy Internet and Legacy Voice revenue.

Strategic

Strategic revenue for the three and six months ended June 30, 2025 increased $14.7 million and $28.7 million, respectively, compared to the same periods in 2024 primarily due to the increase in the subscriber base for internet. The internet subscriber base continues to increase as we focus attention on growing the strategic internet subscriber base, adding 12,400 strategic internet subscribers in Greater Cincinnati and 10,800 strategic internet subscribers in Hawaii in the six months ended June 30, 2025. In Greater Cincinnati, we passed 21,300 and 35,500 addresses in the three and six months ended June 30, 2025 primarily related to multi-dwelling units and single family homes in Dayton, Ohio and in Columbus, Ohio. In Hawaii, our accelerated fiber build pace enabled us to pass 16,700 and 34,300 addresses in the three and six months ended June 30, 2025. The Average Revenue Per User ("ARPU") for the three and six months ended June 30, 2025 increased for internet in both Greater Cincinnati and Hawaii compared to the same period in 2024 primarily due to price increases and more customers subscribing to higher broadband tiers.

Enterprise Fiber revenue for the three and six months ended June 30, 2025 increased $2.2 million and $3.9 million, respectively, compared to the same periods in 2024 primarily due to customers migrating from legacy product offerings to higher bandwidth fiber solutions as evidenced by the 16% and 27% increases in Ethernet Bandwidth in Greater Cincinnati and Hawaii, respectively. In addition, revenue in Hawaii increased $0.9 million and $1.9 million, respectively, associated with the IRU contract related to the SEA-US cable system.

Legacy

Legacy revenue for the three and six months ended June 30, 2025 decreased $8.4 million and $17.9 million, respectively, compared to the same periods in 2024 due to the decline in voice lines and internet subscribers. Voice lines declined 11% and 9% in Greater Cincinnati and Hawaii, respectively, as traditional voice lines become less relevant. Legacy internet subscribers continue to decrease in Greater Cincinnati and Hawaii as subscribers demand the higher speeds that can be provided by fiber. In addition, declines in DS1, DS3 and digital trunking have contributed to the Legacy revenue decline for the three and six months ended June 30, 2025 compared to the same periods in 2024 as customers migrate away from these solutions to fiber-based solutions.

Other

Other revenue for the three and six months ended June 30, 2025 decreased $4.3 million and $4.0 million, respectively, compared to the same periods in the prior year primarily due to decreased revenue from subsidized fiber build projects in the second quarter of 2025 impacting both comparable periods.

Operating Costs and Expenses

Cost of services and products decreased $11.3 million for the three months ended June 30, 2025 compared to the same period in the prior year primarily due to decreases in payroll related costs of $7.0 million due to headcount reductions executed in the prior year, video content costs of $2.6 million, and network related expenses of $2.1 million related to the decommissioning of certain copper assets as customers continue to migrate from copper-based services to fiber-based services. The decrease was partially offset by a $1.0 million increase in software development expenses due to higher software support fees.

Cost of services and products decreased $22.7 million for the six months ended June 30, 2025 compared to the same period in the prior year primarily due to decreases in payroll related costs of $12.8 million, video content costs of $6.4 million, and $3.9 million of network related expenses related to similar trends that impacted the quarter. The decrease was partially offset by higher software development expenses of $1.4 million.

SG&A expenses decreased $7.2 million for the three months ended June 30, 2025 compared to the same period in the prior year primarily due to decreased payroll related costs of $5.3 million, decreased contract services and legal fees of $1.4 million and decreased advertising expense of $0.3 million. The decrease in payroll related costs is primarily due to headcount reductions made during restructuring initiatives that were executed in the fourth quarter of 2024. The decrease in contract services and legal costs is primarily due to lower expenses incurred in 2025 related to the wildfires in Hawaii compared to 2024 as additional expenses are now partially covered by our insurance policies.

SG&A expenses decreased $14.2 million for the six months ended June 30, 2025 compared to the same period in the prior year primarily due to decreased payroll related costs of $9.5 million, contract services and legal fees of $2.6 million, and advertising expenses of $2.5 million. The decreases in payroll related costs and contract services and legal costs are related to similar trends that impacted the quarter.

Depreciation and amortization expense increased $7.0 million and $14.2 million for the three and six months ended June 30, 2025, respectively, compared to the same period in 2024 primarily due to increased additions from capital invested to expand and upgrade the Company's fiber network and related capacity.

Restructuring and severance charges of $3.5 million were recorded for the six months ended June 30, 2025 related to a continuation of the 2024 Voluntary Severance Plan offered to certain employees that was finalized in the first quarter of 2025.

Capital Expenditures

Capital expenditures are incurred to expand our fiber network, upgrade and increase capacity for our networks, and to maintain our fiber and copper networks. The Company is focused on building FTTP addresses, and in the three and six months ended June 30, 2025, we passed 21,300 and 35,500 FTTP addresses, respectively, in Greater Cincinnati. As of June 30, 2025, the Company is able to deliver internet speeds up to six gigabits or more to 934,200 residential and commercial addresses, or approximately 80% of our operating territory in Greater Cincinnati. Greater Cincinnati capital expenditures for the three and six months ended June 30, 2025 decreased $8.8 million and $17.2 million, respectively, compared to the comparable periods in the prior year due to network upgrades that were completed in 2024 and timing of equipment purchases related to customer installations. Additionally, Agile capital expenditures for the three and six months ended June 30, 2025 decreased by $4.3 million and $7.5 million, respectively, primarily related to tower build projects in 2024 that did not recur in 2025.

In Hawaii, we passed 16,700 and 34,300 FTTP addresses in the three and six months ended June 30, 2025. Hawaii capital expenditures for the three and six months ended June 30, 2025 increased $17.0 million and $10.5 million, respectively, compared to the comparable periods in the prior year due to construction expenditures related to a specific IRU agreement to provide dedicated fiber routes and vehicle purchases in the first quarter of 2024 partially offset by equipment purchases for customer installations in the first quarter of 2025. As of June 30, 2025, the Company is able to deliver internet speeds up to six gigabits or more to 435,100 residential and commercial addresses, or nearly 65% of Hawaii's total addressable market.

Corporate

Corporate is comprised primarily of general and administrative costs that have not been allocated to the Network business segment and transaction and integration costs. Corporate costs totaled $6.2 million and $11.8 million in the three and six months ended June 30, 2025, respectively, compared to $6.4 million and $13.0 million in three and six months ended June 30, 2024, respectively. Corporate costs decreased in both comparable periods primarily due to expenses related to the Disposal Group incurred by Corporate in 2024 that did not recur in 2025 as well as higher bank fees related to the sale of certain receivables under the terms of the factoring agreement in the first quarter of 2024. These increased expenses in 2024 were partially offset by increased expenses of $1.4 million and $3.2 million in the three and six months ended June 30, 2025, respectively, related to an ongoing project to replace certain of the Company's legacy financial systems.

Interest expense decreased $12.1 million and $20.6 million, respectively, for the three and six months ended June 30, 2025 compared to the same period in 2024 primarily due to less interest expense incurred on the Network Receivables Facility and on the Credit Agreement's revolving credit facility which both were not drawn on during the first half of 2025. The decrease in interest expense was partially offset by increased debt of $300 million on the Term B-4 Loan that the Company entered into in the second quarter of 2024.

Other components of pension and postretirement benefit plans benefit increased for the three and six months ended June 30, 2025 compared to the same period in 2024 primarily due to settlement gains of $1.0 million and $0.2 million, respectively, recorded in the first and second quarters of 2025 related to lump sum payments funded by the Hawaii defined benefit plan for union employees.

Other income, net totaled $3.1 million and $10.2 million for the three and six months ended June 30, 2025, respectively, primarily due to interest income of $2.8 million and $6.4 million in the three and six months ended June 30, 2025, respectively. In addition, the Company recorded a patronage distribution of $6.7 million from one of the syndicated lenders of the Term B-1 Loans and Term B-3 Loans in the Company's Credit Agreement. Income was partially offset by a net loss associated with the Company's interest rate swap agreements and interest rate cap agreements of $2.8 million in the six months ended June 30, 2025.

Other income, net totaled $6.5 million and $36.5 million for the three and six months ended June 30, 2024, respectively, primarily due to recording gains associated with the Company's interest rate swap agreements and interest rate cap agreements of $6.4 million and $27.3 million in the three and six months ended June 30, 2024, respectively. In addition, in the six months ended June 30, 2024, the Company recorded a patronage distribution of $6.1 million from one of the syndicated lenders of the Term B-1 Loans and Term B-3 Loans in the Company's Credit Agreement and received insurance reimbursements of $3.0 million related to the physical loss and damage claims filed as a result of the wildfires in Hawaii.

Loss from continuing operations before income taxes totaled $17.5 million for the three months ended June 30, 2025 resulting in a decrease in the loss of $22.5 million compared to the same period in 2024 due to operating income generated in addition to lower interest expense in the three months ended June 30, 2025 compared to the same period in the prior year.

Loss from continuing operations before income taxes totaled $31.4 million for the six months ended June 30, 2025 resulting in a decrease in the loss of $22.5 million compared to the same period in 2024 due to operating income generated and lower interest expense, partially offset by an unfavorable change to other income, net in the six months ended June 30, 2025 compared to the same period in the prior year.

The income tax provision for the three months ended June 30, 2025 for continuing operations was an expense of $0.6 million, despite a loss before income tax of $17.5 million. The tax expense reported is significantly lower than the $3.7 million benefit expected at statutory rates, due primarily to valuation allowances on additional deferred tax assets related to disallowed interest expense deductions.

The tax expense reported in the three months ended June 30, 2025 for continuing operations is higher than the tax benefit in the comparable period of 2024 for continuing operations due to a lower loss before tax, with valuation allowances recorded against net operating loss deferred tax assets recorded in both periods.

The income tax provision for the six months ended June 30, 2025 for continuing operations was an expense of $1.1 million, despite a loss before income tax of $31.4 million. The tax expense reported is significantly lower than the $6.6 million benefit expected at statutory rates, due primarily to valuation allowances on additional deferred tax assets related to disallowed interest expense deductions.

In the six months ended June 30, 2024, a significant tax expense was reported in continuing operations, despite a loss before income tax, due most notably to additional valuation allowances recorded in that comparable period. Additionally, a discrete tax expense item was recorded in the comparable period in order to record a deferred tax liability for the tax effect of the difference between book basis and tax basis in the Disposal Group.

Financial Condition, Liquidity, and Capital Resources

As of June 30, 2025, the Company had an accumulated deficit of $526.5 million and $1,721.4 million of outstanding indebtedness.

The Company's primary source of cash is generated by operations. The Company generated $70.0 million and $128.7 million of cash flows from operations during the six months ended June 30, 2025 and 2024, respectively. As of June 30, 2025, the Company had $617.2 million of short-term liquidity, comprised of $188.4 million of cash and cash equivalents, $400.0 million of undrawn capacity on our Revolving Credit Facility due 2028 and $28.8 million available under the Network Receivables Facility.

As of June 30, 2025, the Company had no borrowings and $26.7 million of letters of credit outstanding under the Network Receivables Facility, leaving $28.8 million remaining availability on the total borrowing capacity of $55.5 million. Capacity on the Network Receivables Facility is calculated and will continue to be calculated based on the quantity and quality of outstanding accounts receivables.

In May 2024, the Company entered into an amendment (the "Amendment No. 3") to the Credit Agreement to provide for (i) a $300 million incremental increase to the existing Term B-2 Loans (as defined in the Credit Agreement) (the "Incremental Term B-2 Loans") and (ii) the extension of the maturity date for the commitments under the Company's Revolving Credit Facility to August 2028. The Incremental Term B-2 Loans are part of the same class of Loans as the existing Term B-2 Loans and have the same terms as such Term B-2 Loans. The proceeds of the Incremental Term B-2 Loans were used (a) to repay the outstanding loans under the Revolving Credit Facility, (b) to repay a portion of borrowings under the Company's accounts receivable securitization facility, (c) to pay fees, expenses and other transaction costs related to Amendment No. 3 and the transactions contemplated thereby and (d) for working capital and other general corporate purposes. The other material terms, conditions and covenants of the Credit Agreement were unchanged by Amendment No. 3.

In June 2024, the Company entered into an amendment (the "Amendment No. 4") to the Credit Agreement to provide for a reduction in the interest rate margin applicable to the Term B-3 Loans under the Credit Agreement. The other material terms, conditions and covenants of the Credit Agreement were unchanged by Amendment No. 4.

In December 2024, the Company entered into an amendment (the "Amendment No. 5") to the Credit Agreement to provide for (i) a reduction in the interest rate margin applicable to the Term B-1 Loans and the Term B-3 Loans under the Credit Agreement and (ii) the incurrence of a new tranche of $930,590,472 senior secured term loans (the "Term B-4 Loans"). The proceeds of the Term B-4 Loans were used to refinance in full the outstanding aggregate principal amount of the Term B-2 Loans and to pay fees and expenses in connection with the refinancing of the Term B-2 Loans.

In March 2025, the Company executed an amendment to the Network Receivables Facility that increased the maximum borrowing limit for loans and letters of credit to $60.0 million, extended the termination date to March 2028 and extended the renewal date to March 2027.

One of the syndicated lenders of the Term B-1 Loans and Term B-3 Loans in the Credit Agreement is a cooperative bank owned by its customers. Annually, this bank distributes patronage in the form of cash and stock in the cooperative based on the Company's average outstanding loan balance. The Company will recognize the patronage, generally as declared, in "Other income, net." The stock component will be recognized at its stated cost basis. The Company received $6.7 million and $6.1 million in patronage dividends in the six months ended June 30, 2025 and 2024, respectively.

The Company's primary uses of cash are for working capital requirements, capital expenditures and debt service and, to a lesser extent, to fund pension and retiree medical obligations. The Company believes that cash on hand, operating cash flows, its Revolving Credit Facility due 2028, its Network Receivables Facility, and the expectation that the Company will continue to have access to capital markets to refinance debt and other obligations as they mature and come due, should allow the Company to meet its cash requirements for the foreseeable future.

As of June 30, 2025, the Company was in compliance with the Credit Agreement covenants and ratios.

Cash Flows

Cash provided by operating activities during the six months ended June 30, 2025 totaled $70.0 million, a decrease of $58.7 million compared to the same period in the prior year. The decrease is primarily due to cash flows associated with the Disposal Group that are included in the prior year period but excluded in the current period as a result of the completion of the sale transaction in December 2024. Additionally, restructuring payments of $40.7 million in 2025 associated with initiatives executed in the fourth quarter of 2024 and first half of 2025, an increase of $28.5 million compared to payments of $12.2 million in the same period in the prior year, contributed to lower operating cash flows. These decreases to operating cash flows were partially offset by lower interest payments of $19.6 million, primarily due to no borrowings on the Network Receivables Facility or the Credit Agreement's revolving credit facility in the first half of 2025.

Cash used in investing activities during the six months ended June 30, 2025 totaled $294.7 million, an increase of $0.3 million compared to the same period in the prior year. Increase is due to $14.5 million of proceeds previously received from the sale of CBTS in 2024 that was remitted back to TowerBrook in the second quarter of 2025 related to post-closing adjustments as defined in the Purchase Agreement. This increase was partially offset by decreased capital expenditures of $10.3 million primarily due to expenditures incurred by the Disposal Group in the prior year comparable period and proceeds from the sale of property received in the six months ended June 30, 2025.

Cash used in financing activities during the six months ended June 30, 2025 totaled $48.6 million primarily due to the extinguishment of the Company's existing Paniolo financing arrangement of $21.4 million and a repayment of $18.9 million to resolve a temporary bank overdraft resulting from a miscommunication on payroll dates and related funding requirements.

Cash provided by financing activities during the six months ended June 30, 2024 totaled $170.6 million primarily due to the issuance of $300.0 million of Incremental Term B-2 Loans which was partially offset by net payments on the Revolving Credit Facility due 2028 and receivables facilities of $105.5 million and $10.7 million, respectively.

Regulatory Matters

Refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2024 for a complete description of regulatory matters. There are no material changes for the six months ended June 30, 2025.

Contingencies

In the normal course of business, the Company is subject to various regulatory and tax proceedings, lawsuits, claims and other matters. The Company believes adequate provision has been made for all such asserted and unasserted claims in accordance with accounting principles generally accepted in the United States. Such matters are subject to many uncertainties and outcomes that are not predictable with assurance.

Critical Accounting Policies

The Company's consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. Application of these principles requires management to make estimates or judgments that affect the amounts reported in the accompanying Condensed Consolidated Financial Statements and information available as of the date of the financial statements. As this information changes, the financial statements could reflect different estimates or judgments.

The Company's most critical accounting policies and estimates are described in our Annual Report on Form 10-K for the year ended December 31, 2024.

Recently Issued Accounting Standards

The adoption of new accounting standards did not have a material impact on the Company's financial results for the six months ended June 30, 2025. Furthermore, accounting standards that have been issued or proposed by the FASB or other standard-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company's condensed consolidated financial statements upon adoption.