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Sep 30, 2025
Lumen Q3 2025 Earnings Report
Lumen Technologies reported strong third-quarter results, exceeding revenue, Adjusted EBITDA, and Free Cash Flow expectations, and made significant progress on its transformation initiatives.
Key Takeaways
Lumen Technologies delivered strong financial results in the third quarter of 2025, with revenue, Adjusted EBITDA, and Free Cash Flow all surpassing expectations. The company also advanced its transformation agenda, including a successful Phase I ERP implementation and progress on the consumer FTTH sale to AT&T. Strategic investments in Private Connectivity Fabric and NaaS are driving momentum, positioning Lumen for sustainable growth in the AI economy.
Lumen Technologies exceeded revenue, Adjusted EBITDA, and Free Cash Flow expectations for the third quarter of 2025.
The company successfully completed Phase I of its ERP implementation and made progress on the sale of its consumer FTTH business to AT&T, anticipated to close in early 2026.
Lumen signed an additional $1 billion in Private Connectivity Fabric deals in October, bringing the total PCF deal value to over $10 billion, and is scaling its NaaS platform.
The company reported a net loss of $(621) million and diluted loss per share of $(0.62) for the quarter, but Adjusted EBITDA, excluding special items, was $787 million.
Revenue by Segment
Forward Guidance
Lumen Technologies reiterated its full-year 2025 financial outlook, expecting Adjusted EBITDA to be near the high end of the range and Free Cash Flow to be between $1.2 billion and $1.4 billion, driven by modernization initiatives, tax refunds, and lower capital expenditures.
Positive Outlook
- Adjusted EBITDA is expected to be near the high end of the $3.2 billion to $3.4 billion range, primarily due to better progress on modernization and simplification initiatives and improved performance from legacy services.
- Free Cash Flow is projected to be between $1.2 billion and $1.4 billion, driven by an anticipated $400 million tax refund, lower capital expenditures, better Adjusted EBITDA performance, and lower interest expense.
- Net Cash Interest is expected to be near the low end of the $1.2 billion to $1.3 billion range, primarily from recent debt refinancings.
- Capital Expenditures are expected to be at the low end of the $4.1 billion to $4.3 billion range, mainly due to project timing.
- The company anticipates receiving a $400 million refund from recent tax legislation in 2025.
Challenges Ahead
- The outlook excludes the effects of Special Items, goodwill impairment, and future changes in operating or capital allocation plans, which could impact actual results.
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