Lumen Technologies Inc

Latest Results (04.01.2026):

Lumen Technologies, Inc. reported results for the second quarter of 2025 (quarter ended June 30, 2025). Total revenue was $3.092 billion (down 5% year-over-year). The company reported a GAAP net loss of $915 million (diluted loss per share $0.92), which included a $628 million non-cash goodwill impairment; excluding Special Items, diluted loss per share was $0.03. Adjusted EBITDA was $725 million on a reported basis and $877 million excluding Special Items. Management announced the agreed sale of its Mass Markets consumer fiber business to AT&T for $5.75 billion and completed financing actions to extend maturities and reduce interest expense while increasing its 2025 exit run-rate cost-reduction target to $350 million.

Revenue

Total revenue for Q2 2025 was $3.092 billion, down 5% versus Q2 2024. Business segment revenue was $2.490 billion (down 3% YoY) and Mass Markets revenue was $602 million (down 13% YoY).

Profitability (GAAP and Non‑GAAP)

GAAP net loss was $915 million in Q2 2025 (includes $628M goodwill impairment). Adjusted EBITDA was $725 million reported and $877 million excluding Special Items (compared with $1.011 billion ex-Special Items in Q2 2024). GAAP diluted loss per share was $(0.92); excluding Special Items diluted loss per share was $(0.03).

Cash Flow and Liquidity

Net cash provided by operating activities was $570 million in Q2 2025. Free Cash Flow was negative: $(321) million reported and $(209) million excluding cash Special Items. Capital expenditures were $891 million for the quarter. Cash and cash equivalents stood at $1.568 billion as of June 30, 2025.

Major Transaction — AT&T Consumer Fiber Sale

Lumen announced a definitive agreement to sell its Mass Markets fiber-to-the-home business (about 95% of Quantum Fiber in 11 states) to AT&T for $5.75 billion in cash, refocusing Lumen on enterprise customers and unlocking financial flexibility.

Debt Refinancing and Interest Savings

The company completed a $2.0 billion bond offering (extending maturities to 2033) and expects to reduce annual interest expense by approximately $50 million. Management reported other 2025 debt refinancings and net proceeds/repayments consistent with balance‑sheet actions during the quarter.

Goodwill Impairment

Lumen recorded a $628 million non‑cash goodwill impairment in Q2 2025 driven by the post‑divestiture fair value of the Mass Markets reporting unit compared with its carrying value as of the impairment test date.

Modernization, Cost Reductions and Special Items

Management increased the 2025 exit run‑rate cost‑reduction target from $250 million to $350 million, citing momentum in modernization and simplification. Q2 included $152 million of Special Items impacting Adjusted EBITDA and $112 million of cash Special Items during the quarter (including one-time RDOF givebacks of about $46 million).

2025 Outlook

Lumen reiterated Adjusted EBITDA guidance of $3.2–$3.4 billion for full‑year 2025 and upgraded Free Cash Flow outlook to $1.2–$1.4 billion (driven by a $400 million expected tax refund, lower capex, improved EBITDA and lower interest). Management expects to be near the high end of the Adjusted EBITDA range.