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Jun 30
Lumen Q2 2025 Earnings Report
Lumen Technologies reported its second quarter 2025 results, highlighting strong revenue and Adjusted EBITDA despite one-time revenue givebacks, a strategic agreement to sell its consumer fiber business to AT&T, strengthened financial position through a bond offering, and increased cost-reduction targets.
Key Takeaways
Lumen Technologies reported a net loss of $(915) million for Q2 2025, including a significant non-cash goodwill impairment charge. Despite this, the company demonstrated strong Adjusted EBITDA of $877 million (excluding special items) and increased net cash provided by operating activities. Strategic moves include the sale of its Mass Markets fiber-to-the-home business to AT&T for $5.75 billion and a successful $2 billion bond offering, aimed at sharpening its enterprise focus and improving financial flexibility.
Lumen reported a net loss of $(915) million for Q2 2025, primarily due to a $628 million non-cash goodwill impairment charge.
The company announced a definitive agreement to sell its Mass Markets fiber-to-the-home business to AT&T for $5.75 billion, aiming to enhance its enterprise focus.
Adjusted EBITDA, excluding special items, was $877 million, demonstrating strong operational performance despite one-time revenue givebacks.
Lumen successfully completed a $2 billion bond offering, extending maturities to 2033 and reducing annual interest expense by approximately $50 million, strengthening its financial position.
Lumen
Lumen
Lumen Revenue by Segment
Revenue by Segment
Large Enterprise Revenue
CapyFin.comMid-Market Enterprise Revenue
CapyFin.comPublic Sector Revenue
CapyFin.comNorth America Enterprise Channels Revenue
CapyFin.comWholesale Revenue
CapyFin.comNorth America Business Revenue
CapyFin.comInternational and Other Revenue
CapyFin.comBusiness Segment Revenue
CapyFin.comMass Markets Segment Revenue
CapyFin.comGrow Revenue
CapyFin.comNurture Revenue
CapyFin.comHarvest Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Lumen Technologies updated its full-year 2025 financial outlook, expecting Adjusted EBITDA to be near the high end of the range and Free Cash Flow to significantly improve, driven by a tax refund and lower capital expenditures. Net Cash Interest is expected to be near the low end of the range due to recent debt refinancings, and Capital Expenditures are projected to be at the low end of their range.
Positive Outlook
- Adjusted EBITDA is expected to be near the high end of the $3.2 billion to $3.4 billion range, driven by better progress on modernization and simplification initiatives and improved performance from legacy services.
- Free Cash Flow outlook significantly increased to $1.2 billion to $1.4 billion, primarily due to an anticipated $400 million tax refund.
- Lower capital expenditures are expected to contribute to improved Free Cash Flow.
- Better Adjusted EBITDA performance is a positive factor for the Free Cash Flow outlook.
- Lower interest expense, resulting from recent debt refinancings, will also positively impact Free Cash Flow.
Challenges Ahead
- Capital expenditures are expected to be at the low end of the $4.1 billion to $4.3 billion range, primarily due to project timing, which could indicate slower investment in certain areas.
- The goodwill impairment charge of $628 million in Q2 2025 indicates a significant non-cash impact on net income.
- The company's net loss for Q2 2025 was $(915) million, a substantial increase from $(49) million in Q2 2024.
- Diluted loss per share was $(0.92) for Q2 2025, compared to $(0.05) for Q2 2024.
- The outlook excludes the effects of Special Items, goodwill impairment, and unforeseen changes, which could still impact financial performance.