Group 1 - The stock of ATN International, Inc. (ATNI) is experiencing significant attention due to high implied volatility in the options market, particularly the Sept. 19, 2025 $5 Put option [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant change in ATN International's stock price, potentially due to an upcoming event [2] - ATN International holds a Zacks Rank 3 (Hold) in the Wireless National industry, which is in the top 44% of the Zacks Industry Rank, with mixed earnings estimate revisions from analysts over the last 60 days [3] Group 2 - The high implied volatility surrounding ATN International may indicate a developing trading opportunity, as options traders often seek to sell premium on such options to capitalize on time decay [4]

[Cautionary Statement Regarding Forward-Looking Statements](index=4&type=section&id=CAUTIONARY%20STATEMENT%20REGARDING%20FORWARD%20LOOKING%20STATEMENTS) This statement advises that the report contains forward-looking information, subject to risks that could cause actual results to differ materially, and the Company disclaims any obligation to update these statements [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section details that the report includes forward-looking statements about future performance and plans, listing various risk factors that could cause actual outcomes to differ, with no obligation for the Company to update them - The report contains forward-looking statements about future financial performance, business goals, strategic investment plans, revenues, operating income, cash flows, and capital investments[8](index=8&type=chunk) - Actual future events and results could differ materially due to factors such as general operational performance, reliance on key suppliers, ability to satisfy major carrier customers, network expansion capabilities, technological changes, access to capital, government regulations, economic downturns, management transitions, and increased competition[8](index=8&type=chunk) - The Company undertakes no obligation to update these forward-looking statements, except as required by law[8](index=8&type=chunk) [PART I—FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) This part presents the Company's unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations [Item 1. Unaudited Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for ATN International, Inc. and its subsidiaries, providing a snapshot of the company's financial health and performance [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the unaudited condensed consolidated balance sheets, detailing assets, liabilities, and equity for the specified periods Condensed Consolidated Balance Sheets (In Thousands) | ASSETS (June 30, 2025) | Amount ($) | ASSETS (December 31, 2024) | Amount ($) | | :----------------------- | :--------- | :--------------------------- | :--------- | | Cash and cash equivalents | 98,965 | Cash and cash equivalents | 73,393 | | Total current assets | 327,752 | Total current assets | 309,161 | | Fixed assets, net | 1,010,631 | Fixed assets, net | 1,040,193 | | Total assets | 1,707,006 | Total assets | 1,727,103 | | **LIABILITIES & EQUITY** | | **LIABILITIES & EQUITY** | | | Total current liabilities| 269,024 | Total current liabilities | 267,314 | | Long-term debt, excluding current portion | 568,548 | Long-term debt, excluding current portion | 549,130 | | Total liabilities | 1,060,519 | Total liabilities | 1,055,349 | | Total equity | 567,772 | Total equity | 595,451 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section presents the unaudited condensed consolidated statements of operations, outlining revenues, expenses, and net income (loss) for the specified periods Condensed Consolidated Statements of Operations (In Thousands, Except Per Share Data) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenue | $181,300 | $183,281 | $360,594 | $370,076 | | Total operating expenses | $181,067 | $158,965 | $357,694 | $341,186 | | Income from operations | $233 | $24,316 | $2,900 | $28,890 | | Income (loss) before income taxes | $(13,036) | $11,541 | $(24,614) | $5,213 | | NET INCOME (LOSS) | $(9,260) | $11,337 | $(20,647) | $3,391 | | NET INCOME (LOSS) ATTRIBUTABLE TO ATN INTERNATIONAL, INC. STOCKHOLDERS | $(7,026) | $9,003 | $(15,954) | $2,690 | | Basic EPS | $(0.56) | $0.50 | $(1.25) | $— | | Diluted EPS | $(0.56) | $0.50 | $(1.25) | $— | | Dividends per share | $0.275 | $0.24 | $0.515 | $0.48 | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) This section presents the unaudited condensed consolidated statements of comprehensive income (loss), including net income (loss) and other comprehensive income (loss) Condensed Consolidated Statements of Comprehensive Income (Loss) (In Thousands) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) | $(9,260) | $11,337 | $(20,647) | $3,391 | | Other comprehensive income (loss) | $426 | $290 | $857 | $1,722 | | Comprehensive income (loss) | $(8,834) | $11,627 | $(19,790) | $5,113 | | Comprehensive loss attributable to ATN International, Inc. | $(6,600) | $9,293 | $(15,097) | $4,412 | [Condensed Consolidated Statements of Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) This section presents the unaudited condensed consolidated statements of equity, detailing changes in common stock, retained earnings, and total equity Condensed Consolidated Statements of Equity (In Thousands) | Equity Component | Balance, March 31, 2025 | Balance, June 30, 2025 | Balance, March 31, 2024 | Balance, June 30, 2024 | | :----------------- | :---------------------- | :--------------------- | :---------------------- | :--------------------- | | Common Stock | $180 | $181 | $173 | $173 | | Treasury Stock | $(103,143) | $(103,183) | $(92,463) | $(102,379) | | Additional Paid-In Capital | $214,362 | $216,856 | $207,551 | $209,944 | | Retained Earnings | $350,728 | $333,231 | $405,031 | $409,043 | | Accumulated Other Comprehensive Income/(Loss) | $11,208 | $11,634 | $9,700 | $9,990 | | Total ATNI Stockholders' Equity | $473,335 | $458,719 | $529,992 | $526,771 | | Noncontrolling Interests | $107,385 | $109,053 | $98,724 | $101,994 | | Total Equity | $580,720 | $567,772 | $628,716 | $628,765 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the unaudited condensed consolidated statements of cash flows, categorizing cash movements from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (In Thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------- | :----------------------------- | :----------------------------- | | Operating Activities | $59,843 | $58,410 | | Investing Activities | $(45,636) | $(46,843) | | Financing Activities | $9,864 | $(481) | | Net change in cash, cash equivalents, and restricted cash | $24,071 | $11,086 | | Total cash, cash equivalents, and restricted cash, end of period | $113,315 | $73,253 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes explaining the accounting policies, significant estimates, and specific financial statement line items [1. Organization and Business Operations](index=11&type=section&id=1.%20ORGANIZATION%20AND%20BUSINESS%20OPERATIONS) This note describes ATN International, Inc.'s business as a digital infrastructure and communications provider, its operating segments, and recent operational developments - ATN International, Inc. provides digital infrastructure and communications services in rural/remote US and international markets (Bermuda, Cayman Islands, Guyana, US Virgin Islands)[23](index=23&type=chunk)[28](index=28&type=chunk) - The Company operates two segments: US Telecom (fixed, carrier, managed services in Alaska and western US) and International Telecom (fixed, carrier, mobility, managed services in Bermuda, Cayman Islands, Guyana, US Virgin Islands)[26](index=26&type=chunk)[28](index=28&type=chunk) - Rebranding efforts include GTT in Guyana to 'One Communications' (OneGY) in 2024 and Viya in US Virgin Islands to 'One Communications' (OneVI) in Q2 2025[29](index=29&type=chunk) - As of June 30, 2025, **$7.8 million** of US Telecom telecommunication licenses were reclassified as assets held for sale, with an expected pre-tax gain of approximately **$6.0 million** upon completion in H2 2025[31](index=31&type=chunk) Restructuring and Reorganization Expenses (In Thousands) | Segment | Three months ended June 30, 2025 | Six months ended June 30, 2025 | | :---------------- | :------------------------------- | :----------------------------- | | International Telecom | $1,385 | $2,891 | | US Telecom | $2,357 | $2,491 | | Corporate and Other | $1,165 | $1,355 | | **Total** | **$4,907** | **$6,737** | [2. Basis of Presentation](index=14&type=section&id=2.%20BASIS%20OF%20PRESENTATION) This note explains the basis for preparing the unaudited condensed consolidated financial statements, including compliance with SEC rules and GAAP, and recent accounting pronouncements - The financial statements are unaudited, prepared in accordance with SEC rules and GAAP, and include normal recurring adjustments[34](index=34&type=chunk) - The Company is assessing the impact of ASU 2023-09 (Enhancements to Income Tax Disclosures), effective for annual periods after December 15, 2024, and ASU 2024-03 (Disaggregation of Income Statements Expenses), effective for annual periods after December 15, 2026[36](index=36&type=chunk)[37](index=37&type=chunk) [3. Revenue Recognition and Receivables](index=15&type=section&id=3.%20REVENUE%20RECOGNITION%20AND%20RECEIVABLES) This note details the Company's revenue recognition policies, disaggregated revenue, contract assets and liabilities, and allowance for credit losses Total Revenue by Segment and Recognition Timing (In Thousands) | Segment/Type | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | International Telecom (ASC 606) | $93,304 | $93,889 | $186,332 | $185,483 | | US Telecom (ASC 606) | $73,180 | $75,477 | $144,791 | $156,791 | | Total Revenue (ASC 606) | $166,484 | $169,366 | $331,123 | $342,274 | | Operating lease income | $2,048 | $2,111 | $4,031 | $4,217 | | Government support revenue | $12,768 | $11,804 | $25,440 | $23,585 | | **Total Revenue** | **$181,300** | **$183,281** | **$360,594** | **$370,076** | Contract Assets and Liabilities (In Thousands) | Item | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :---------------------- | :------------ | :---------------- | :--------- | :--------- | | Contract asset – current | $3,526 | $3,920 | $(394) | (10.1)% | | Contract asset – noncurrent | $4,701 | $5,368 | $(667) | (12.4)% | | Contract liability – current | $(30,917) | $(28,932) | $(1,985) | 6.9% | | Contract liability – noncurrent | $(51,393) | $(55,116) | $3,723 | (6.8)% | | Net contract liability | $(74,083) | $(74,760) | $677 | (0.9)% | - Remaining performance obligations totaled **$580 million** at June 30, 2025, with approximately **44%** expected to be satisfied within 24 months and **$60 million** annually from 2027-2032[44](index=44&type=chunk) Allowance for Credit Losses Activity (In Thousands) | Item | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Balance at beginning of period | $15,132 | $16,362 | | Current period provision for expected losses | $4,135 | $2,855 | | Write-offs charged against the allowance | $(5,326) | $(2,918) | | Recoveries collected | $147 | $133 | | Balance at end of period | $14,088 | $16,432 | [4. Leases](index=18&type=section&id=4.%20LEASES) This note provides information on the Company's operating and financing leases, including costs, cash flows, and weighted-average terms and discount rates Total Operating and Finance Lease Costs (In Thousands) | Lease Type | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :----------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total operating lease cost | $9,195 | $8,078 | $18,388 | $15,677 | | Total finance lease cost | $2,120 | $1,245 | $4,376 | $2,156 | Weighted-Average Lease Terms and Discount Rates | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Weighted-average remaining lease term (Operating) | 12.0 years | 12.6 years | | Weighted-average remaining lease term (Financing) | 5.8 years | 11.5 years | | Weighted-average discount rate (Operating) | 7.0% | 6.8% | | Weighted-average discount rate (Financing) | 8.5% | 7.4% | - For the six months ended June 30, 2025, the Company recorded **$4.0 million** in lease income as a lessor, primarily from Carrier Services revenue[59](index=59&type=chunk) [5. Use of Estimates](index=21&type=section&id=5.%20USE%20OF%20ESTIMATES) This note explains that financial statement preparation involves management estimates and assumptions, which may differ from actual results - Financial statements rely on management estimates and assumptions, particularly for revenue recognition, goodwill, long-lived intangible assets, income taxes, and contingencies[61](index=61&type=chunk) - Estimates are based on historical experience and reasonable assumptions, but actual results may differ significantly[61](index=61&type=chunk) [6. Fair Value Measurements and Investments](index=21&type=section&id=6.%20FAIR%20VALUE%20MEASUREMENTS%20AND%20INVESTMENTS) This note details fair value measurements for assets and liabilities, categorizing them by input observability, and discusses other investments and debt valuation Assets and Liabilities Measured at Fair Value (In Thousands) | Description | June 30, 2025 (Total) | December 31, 2024 (Total) | | :------------------------------------------ | :-------------------- | :------------------------ | | Short term investments | $395 | $300 | | Employee benefit plan investments | $2,199 | $2,768 | | Interest rate swap | $98 | $(723) | | Warrants on Alaska Communications redeemable common units | $0 | $(249) | | **Total assets and liabilities measured at fair value** | **$2,692** | **$2,096** | - The Company holds **$41.956 million** in investments without a readily determinable fair value as of June 30, 2025, included in other assets[67](index=67&type=chunk) - Redeemable common units and warrants are recorded at the higher of historical cost or fair value, with Alloy common units carried at historical cost (**$10.0 million** at June 30, 2025) exceeding fair value[68](index=68&type=chunk) Fair Value vs. Book Value of Debt (In Millions) | Debt Type | June 30, 2025 (Fair Value) | June 30, 2025 (Book Value) | December 31, 2024 (Fair Value) | December 31, 2024 (Book Value) | | :-------------------------------- | :--------------------------- | :--------------------------- | :----------------------------- | :----------------------------- | | Long-term debt | $590.4 | $583.4 | $564.4 | $557.4 | | Customer receivable credit facility | $39.9 | $40.2 | $42.7 | $44.2 | [7. Long-Term Debt](index=26&type=section&id=7.%20LONG-TERM%20DEBT) This note outlines the Company's various long-term debt facilities, including terms, interest rates, covenants, and maturity schedules - The 2023 CoBank Credit Facility includes a **$170 million** revolving credit facility and a **$130 million** term loan, with **$124.3 million** outstanding on the term loan and **$76.6 million** on the revolving loan as of June 30, 2025[73](index=73&type=chunk)[78](index=78&type=chunk) The Company was in compliance with all financial covenants[78](index=78&type=chunk) - The 2024 Alaska Credit Facility provides a **$300 million** term loan and a **$90 million** revolving facility, with **$300.0 million** outstanding on the term loan and **$5.0 million** on the revolving loan as of June 30, 2025[81](index=81&type=chunk)[82](index=82&type=chunk) The Company is not a guarantor for this debt[91](index=91&type=chunk) - The FirstNet Receivables Credit Facility has **$40.5 million** outstanding as of June 30, 2025, secured by AT&T receivables under the FirstNet Agreement[100](index=100&type=chunk) - OneGY entered into 2025 IDB Credit Facilities for a **$10.0 million** revolving facility and up to **$30.0 million** term loan, with **$5.0 million** outstanding on the revolving facility as of June 30, 2025[102](index=102&type=chunk)[108](index=108&type=chunk) - The Sacred Wind Term Debt has **$23.2 million** outstanding as of June 30, 2025, with fixed interest rates from **0.88% to 5.0%**[111](index=111&type=chunk) Sacred Wind was in compliance with its corrective action plan for a financial covenant[112](index=112&type=chunk) - The OneVI Debt has **$60.0 million** outstanding as of June 30, 2025, with a fixed interest rate of **4.0%** and maturity on July 1, 2026[113](index=113&type=chunk)[115](index=115&type=chunk) The Net Leverage Ratio covenant was amended to **7.0 to 1.0** and the Company was in compliance as of December 31, 2024[116](index=116&type=chunk) NCSC issued a commitment letter to extend the maturity to July 1, 2035[116](index=116&type=chunk) Annual Maturities of Debt Instruments (In Thousands) | Amounts Maturing During | US Telecom | International Telecom | Corporate and Other | Total Debt | Customer Receivable Credit Facility | | :-------------------------------- | :--------- | :-------------------- | :------------------ | :--------- | :---------------------------------- | | July 1, 2025 through December 31, 2025 | $1,778 | $5,000 | $3,250 | $10,028 | $3,960 | | Year ending December 31, 2026 | $5,469 | $60,000 | $8,125 | $73,594 | $8,409 | | Year ending December 31, 2027 | $13,098 | $— | $9,750 | $22,848 | $8,807 | | Year ending December 31, 2028 | $18,858 | $— | $86,370 | $105,228 | $9,229 | | Year ending December 31, 2029 | $282,749 | $— | $93,438 | $376,187 | $6,041 | | Thereafter | $6,239 | $— | $— | $6,239 | $4,085 | | **Total** | **$328,191** | **$65,000** | **$200,933** | **$594,124** | **$40,531** | | Debt Discounts | $(7,719) | $(100) | $(2,906) | $(10,725) | $(309) | | **Book Value as of June 30, 2025** | **$320,472** | **$64,900** | **$198,027** | **$583,399** | **$40,222** | [8. Government Support and Spectrum Matters](index=37&type=section&id=8.%20GOVERNMENT%20SUPPORT%20AND%20SPECTRUM%20MATTERS) This note details the Company's participation in government funding programs, including USF, construction grants, and the Replace and Remove Program, outlining funding and obligations - The Company receives federal USF support, including **$25.6 million** annually from the Alaska Connect Fund (ACF) until 2028, approximately **$105 million** over 14 years from Enhanced Alternative Connect America Model (E-ACAM), and **$8.0 million** annually from Connect America Fund II (CAF II) in the rural southwest until July 2028[119](index=119&type=chunk) - The Company was awarded **$2.3 million** annually from the Rural Digital Opportunity Fund Phase I (RDOF) auction through 2031, but transferred **$1.3 million** and returned **$0.7 million** of these awards by June 2025, incurring a **$1.9 million** loss related to RDOF transfers[119](index=119&type=chunk)[121](index=121&type=chunk) Communication Services Revenue from Government Programs (In Thousands) | Program | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :---------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | High cost support | $4,471 | $4,876 | $8,899 | $9,723 | | CAF II (including ACF) | $8,227 | $6,784 | $16,397 | $13,571 | | RDOF | $69 | $145 | $144 | $290 | | ECF | $— | $498 | $— | $7,312 | | RHC | $4,353 | $3,682 | $8,715 | $7,119 | | Other | $1,571 | $1,862 | $3,212 | $8,877 | | **Total** | **$18,691** | **$17,847** | **$37,367** | **$46,892** | - The Company was awarded **$103.8 million** in construction grants as of June 30, 2025, after new grants of **$15.8 million** and rescinded grants of **$52.5 million** (including **$51 million** from NTIA's BEAD Program)[127](index=127&type=chunk)[128](index=128&type=chunk) - As a sub-recipient, the Company is involved in tribal government grants (TBCP, ReConnect) totaling **$239 million** as of June 30, 2025, having received **$23.5 million** in funding and spent **$25.4 million** on construction[129](index=129&type=chunk) - The Replace and Remove Program allocation increased to approximately **$517 million** (from **$207 million**) in December 2024, with a project completion deadline extended to Q2 2026[131](index=131&type=chunk) Replace and Remove Program Expenditures and Reimbursements (In Thousands) | Item | Capital (June 30, 2025) | Operating (June 30, 2025) | Total (June 30, 2025) | Capital (June 30, 2024) | Operating (June 30, 2024) | Total (June 30, 2024) | | :-------------------------- | :---------------------- | :------------------------ | :-------------------- | :---------------------- | :------------------------ | :-------------------- | | Total spend | $167,827 | $32,657 | $200,484 | $87,388 | $24,654 | $112,042 | | Total reimbursements | $(135,480) | $(32,267) | $(167,747) | $(54,194) | $(15,075) | $(69,269) | | Amount pending reimbursement | $32,347 | $390 | $32,737 | $33,194 | $9,579 | $42,773 | [9. Retirement Plans](index=43&type=section&id=9.%20RETIREMENT%20PLANS) This note describes the Company's multi-employer and noncontributory defined benefit pension and postretirement plans, including net periodic benefit costs - The Company participates in the Alaska Electrical Pension Fund (AEPF), a multi-employer defined benefit plan, which was not in endangered or critical status[133](index=133&type=chunk) - The Company also has noncontributory defined benefit pension and postretirement plans, with most benefits frozen and no new participants allowed[134](index=134&type=chunk) Net Periodic Pension and Postretirement Benefit Costs (In Thousands) | Benefit Type | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :----------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net periodic pension expense (benefit) | $22 | $106 | $44 | $214 | | Net periodic postretirement expense (benefit) | $54 | $33 | $109 | $67 | [10. Income Taxes](index=43&type=section&id=10.%20INCOME%20TAXES) This note details the Company's effective tax rates, income tax expenses/benefits, and key factors influencing these rates, such as valuation allowances and discrete items Income Tax Rates and Impact (In Millions) | Period | Pretax Income (Loss) | Income Tax Expense (Benefit) | Effective Tax Rate | | :------------------------------- | :------------------- | :--------------------------- | :----------------- | | Three months ended June 30, 2025 | $(13.0) | $(3.8) | 29.0% | | Three months ended June 30, 2024 | $11.5 | $0.2 | 1.8% | | Six months ended June 30, 2025 | $(24.6) | $(4.0) | 16.1% | | Six months ended June 30, 2024 | $5.2 | $1.8 | 35.0% | - For Q2 2025, the effective tax rate was impacted by a **$4.9 million** benefit from reversing an unrecognized tax position, a **$0.6 million** expense for interest on uncertain tax positions, and a **$1.0 million** benefit from releasing a capital loss carryover valuation allowance[138](index=138&type=chunk)[140](index=140&type=chunk) - For Q2 2024, the effective tax rate was impacted by a **$2.4 million** expense from a foreign land sale gain, a **$3.7 million** benefit from reversing an unrecognized tax position, and a **$0.8 million** expense for interest on unrecognized tax positions[141](index=141&type=chunk) [11. Earnings Per Share and Redeemable Noncontrolling Interests](index=46&type=section&id=11.%20EARNINGS%20PER%20SHARE%20AND%20REDEEMABLE%20NONCONTROLLING%20INTERESTS) This note reconciles basic and diluted earnings per share and explains the accounting for redeemable noncontrolling interests, including their allocation of net income/loss Earnings Per Share Reconciliation (In Thousands, Except Per Share Data) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss attributable to ATN International, Inc. stockholders- Basic | $(7,026) | $9,003 | $(15,954) | $2,690 | | Less: Preferred dividends | $(1,507) | $(1,376) | $(2,965) | $(2,727) | | Net loss attributable to ATN International, Inc. common stockholders- Diluted | $(8,533) | $7,627 | $(18,919) | $(37) | | Weighted-average shares outstanding- Basic | 15,223 | 15,254 | 15,177 | 15,346 | | Weighted-average shares outstanding- Diluted | 15,223 | 15,255 | 15,177 | 15,346 | - The Company allocated losses of **$5.1 million** and **$2.7 million** to redeemable common units for the three months ended June 30, 2025 and 2024, respectively, and **$8.7 million** and **$6.2 million** for the six months ended June 30, 2025 and 2024, respectively[151](index=151&type=chunk) Roll Forward of Redeemable Noncontrolling Interests (In Thousands) | Item | Redeemable Preferred Units (June 30, 2025) | Redeemable Common Units (June 30, 2025) | Total Redeemable Noncontrolling Interests (June 30, 2025) | | :-------------------- | :----------------------------------------- | :---------------------------------------- | :-------------------------------------------------------- | | Balance, Dec 31, 2024 | $65,704 | $10,599 | $76,303 | | Accrued preferred dividend | $2,965 | $— | $2,965 | | Allocated net loss | $— | $(8,746) | $(8,746) | | Change in fair value | $— | $8,193 | $8,193 | | **Balance, June 30, 2025** | **$68,669** | **$10,046** | **$78,715** | [12. Segment Reporting](index=49&type=section&id=12.%20SEGMENT%20REPORTING) This note provides detailed financial information for the International Telecom and US Telecom segments, including revenue, operating income, and capital expenditures Segment Revenue and Operating Income (Three Months Ended June 30, 2025, In Thousands) | Segment | Total Revenue | Income (loss) from operations | | :---------------- | :------------ | :---------------------------- | | International Telecom | $94,894 | $16,221 | | US Telecom | $86,406 | $(5,533) | | Corporate and Other | $— | $(10,455) | | **Consolidated** | **$181,300** | **$233** | Segment Revenue and Operating Income (Six Months Ended June 30, 2025, In Thousands) | Segment | Total Revenue | Income (loss) from operations | | :---------------- | :------------ | :---------------------------- | | International Telecom | $189,390 | $30,970 | | US Telecom | $171,204 | $(7,948) | | Corporate and Other | $— | $(20,122) | | **Consolidated** | **$360,594** | **$2,900** | Selected Segment Balance Sheet Data (June 30, 2025, In Thousands) | Segment | Cash, cash equivalents, and restricted cash | Total assets | Total debt, including current portion | | :---------------- | :------------------------------------------ | :----------- | :------------------------------------ | | International Telecom | $66,726 | $701,302 | $64,900 | | US Telecom | $44,866 | $914,121 | $320,472 | | Corporate and Other | $1,723 | $91,583 | $198,027 | | **Consolidated** | **$113,315** | **$1,707,006** | **$583,399** | Capital Expenditures by Segment (Six Months Ended June 30, In Thousands) | Segment | 2025 Capital Expenditures | 2024 Capital Expenditures | | :---------------- | :------------------------ | :------------------------ | | International Telecom | $20,270 | $28,951 | | US Telecom | $67,650 | $77,498 | | Corporate and Other | $2 | $1,579 | | **Consolidated** | **$87,922** | **$108,028** | [13. Commitments and Contingencies](index=55&type=section&id=13.%20COMMITMENTS%20AND%20CONTINGENCIES) This note outlines the Company's involvement in regulatory and litigation matters, including spectrum fee disputes, international bypass allegations, tax claims, and an FCC settlement - OneGY is engaged in ongoing disputes with the Telecommunications Authority (TA) in Guyana regarding spectrum fee calculation methodology since 2006[169](index=169&type=chunk) - OneGY has filed lawsuits against Digicel for alleged international bypass in violation of exclusive license rights, with cases pending in the Court of Appeals in Guyana[170](index=170&type=chunk) - OneGY is involved in tax claims with the Guyana Revenue Authority (GRA) dating back to 1991, primarily concerning the deductibility of intercompany advisory fees[171](index=171&type=chunk) - Alaska Communications settled with the FCC Enforcement Bureau for **$6.3 million** (a **$5.3 million** cash payment and **$1.0 million** receivable forgiveness) regarding the Rural Health Care Support Program, and entered a three-year compliance agreement[172](index=172&type=chunk) - The Company has accrued **$15.3 million** as of June 30, 2025, for probable adverse outcomes in these and other legal/regulatory matters[173](index=173&type=chunk) [14. Subsequent Events](index=56&type=section&id=14.%20SUBSEQUENT%20EVENTS) This note discloses the signing of the One Big Beautiful Bill Act and the Company's assessment of its non-material financial impact for FY2025 - The One Big Beautiful Bill Act was signed into law on July 4, 2025[174](index=174&type=chunk) The Company is evaluating its impact but does not anticipate material financial statement impacts for FY2025[174](index=174&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=58&type=section&id=Item%202%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial condition and results of operations, analyzing revenue, expenses, and segment performance [Overview](index=58&type=section&id=Overview) This section provides an overview of ATN International's business, operating segments, key agreements (FirstNet, Verizon CMS), and participation in government support programs - ATN International is a leading provider of digital infrastructure and communications services, focusing on rural and remote markets in the US and internationally (Bermuda, Cayman Islands, Guyana, US Virgin Islands)[176](index=176&type=chunk)[179](index=179&type=chunk)[181](index=181&type=chunk) - The Company operates two segments: US Telecom (fixed, carrier, managed services in Alaska and western US) and International Telecom (fixed, carrier, mobility, managed services in international markets)[179](index=179&type=chunk) - The FirstNet Agreement involves building AT&T's network in the western US, with **$77 million** in construction revenue recorded through June 30, 2025, and an expected **$6 million** more by the end of 2025[183](index=183&type=chunk) - The Verizon CMS Agreement involves upgrading wireless service and providing network, infrastructure, and technical services to Verizon in the southwestern US, with an initial term ending in 2030[185](index=185&type=chunk)[187](index=187&type=chunk) - The Company receives various USF high-cost support, including **$25.6 million** annually from ACF (Alaska Connect Fund) until 2028, approximately **$105 million** over 14 years from E-ACAM, and **$8 million** annually from CAF II until July 2028[192](index=192&type=chunk) - As of June 30, 2025, the Company was awarded **$103.8 million** in construction grants and is a sub-recipient of tribal government grants totaling **$239 million**[194](index=194&type=chunk)[196](index=196&type=chunk) - The Replace and Remove Program allocation increased to approximately **$517 million**, with **$200.5 million** incurred in expenditures by June 30, 2025, and **$37.0 million** in reimbursements received during the six months ended June 30, 2025[197](index=197&type=chunk)[198](index=198&type=chunk)[199](index=199&type=chunk) [Selected Segment Financial Information](index=65&type=section&id=Selected%20Segment%20Financial%20Information) This section presents selected financial data for the International Telecom and US Telecom segments, including total revenue and income (loss) from operations Selected Segment Financial Information (Three Months Ended June 30, 2025, In Thousands) | Segment | Total Revenue | Income (loss) from operations | | :---------------- | :------------ | :---------------------------- | | International Telecom | $94,894 | $16,221 | | US Telecom | $86,406 | $(5,533) | | Corporate and Other | $— | $(10,455) | | **Consolidated** | **$181,300** | **$233** | Selected Segment Financial Information (Three Months Ended June 30, 2024, In Thousands) | Segment | Total Revenue | Income (loss) from operations | | :---------------- | :------------ | :---------------------------- | | International Telecom | $95,357 | $32,405 | | US Telecom | $87,924 | $884 | | Corporate and Other | $— | $(8,973) | | **Consolidated** | **$183,281** | **$24,316** | [Comparison of Segment Results (Three Months)](index=70&type=section&id=Comparison%20of%20Segment%20Results%20%28Three%20Months%29) This section analyzes the changes in revenue and operating income/loss for the International Telecom and US Telecom segments for the three months ended June 30 - International Telecom revenue decreased by **$0.5 million (0.5%)** to **$94.9 million**, primarily due to declines in Mobility, Fixed, and Carrier Services, partially offset by ancillary services[207](index=207&type=chunk) - International Telecom operating expenses increased by **$15.7 million (24.9%)** to **$78.7 million**, largely due to a **$15.8 million** gain on asset disposition in the prior year and **$1.4 million** in restructuring expenses in the current period[208](index=208&type=chunk) - International Telecom operating income decreased by **$16.2 million (50.0%)** to **$16.2 million**[209](index=209&type=chunk) - US Telecom revenue decreased by **$1.5 million (1.7%)** to **$86.4 million**, mainly due to a **$1.1 million** reduction in Fixed revenues (impacted by ECF and ACP conclusion), **$0.3 million** in Carrier Services, and **$0.8 million** in Mobility, partially offset by a **$1.4 million** increase in construction revenue[210](index=210&type=chunk) - US Telecom operating expenses increased by **$4.9 million (5.6%)** to **$91.9 million**, driven by **$2.4 million** in restructuring expenses and a **$2.6 million** increase in loss on asset disposition[211](index=211&type=chunk) - US Telecom operating income shifted to a loss of **$5.5 million** from an income of **$0.9 million**[212](index=212&type=chunk) [Comparison of Consolidated Results (Three Months)](index=71&type=section&id=Comparison%20of%20Consolidated%20Results%20%28Three%20Months%29) This section provides a consolidated comparison of key financial metrics, including revenue, operating expenses, and net income (loss), for the three months ended June 30 Consolidated Results (Three Months Ended June 30, In Thousands) | Metric | 2025 | 2024 | Amount of Increase (Decrease) | Percent Increase (Decrease) | | :------------------------------------------ | :----- | :----- | :---------------------------- | :-------------------------- | | Communication services revenue | $174,874 | $177,365 | $(2,491) | (1.4)% | | Construction revenue | $2,216 | $820 | $1,396 | 170.2% | | Other revenue | $4,210 | $5,096 | $(886) | (17.4)% | | **Total revenue** | **$181,300** | **$183,281** | **$(1,981)** | **(1.1)%** | | Total operating expenses | $181,067 | $158,965 | $22,102 | 13.9% | | Income from operations | $233 | $24,316 | $(24,083) | (99.0)% | | Income (loss) before income taxes | $(13,036) | $11,541 | $(24,577) | (213.0)% | | NET INCOME (LOSS) | $(9,260) | $11,337 | $(20,597) | (181.7)% | | NET INCOME (LOSS) ATTRIBUTABLE TO ATN INTERNATIONAL, INC. STOCKHOLDERS | $(7,026) | $9,003 | $(16,029) | (178.0)% | [Communications Services Revenue](index=72&type=section&id=Communications%20Services%20Revenue) This section details changes in Mobility, Fixed, Carrier Services, and Other Communications Services revenue for the three months ended June 30, by segment - Mobility revenue decreased by **$1.3 million (4.7%)** to **$26.3 million** for Q2 2025, driven by a **$0.5 million** decrease in International Telecom (business and consumer) and a **$0.8 million** decrease in US Telecom due to the conclusion of retail mobility services[216](index=216&type=chunk)[219](index=219&type=chunk) - Fixed revenue decreased by **$1.6 million (1.4%)** to **$113.1 million** for Q2 2025, primarily due to a **$0.5 million** decrease in International Telecom and a **$1.1 million** decrease in US Telecom, impacted by the conclusion of ECF and ACP programs[219](index=219&type=chunk)[220](index=220&type=chunk) - Carrier Services revenue decreased by **$0.5 million (1.5%)** to **$33.2 million** for Q2 2025, with a **$0.2 million** decrease in International Telecom (roaming) and a **$0.3 million** decrease in US Telecom (transition to carrier service management contracts)[225](index=225&type=chunk)[228](index=228&type=chunk) - Other Communications Services revenue increased by **$0.8 million (57.1%)** to **$2.2 million** for Q2 2025, due to increased ancillary services in International Telecom, partially offset by reduced non-recurring project revenue in US Telecom[226](index=226&type=chunk) [Construction Revenue](index=76&type=section&id=Construction%20Revenue) This section discusses the increase in construction revenue, primarily driven by completed FirstNet cell sites, for the three months ended June 30 - Construction revenue increased to **$2.2 million** for Q2 2025 from **$0.8 million** for Q2 2024, a **170.2%** increase, primarily due to an increase in completed FirstNet cell sites[214](index=214&type=chunk)[229](index=229&type=chunk) The build is expected to be substantially complete by the end of 2025[229](index=229&type=chunk) [Other Revenue](index=76&type=section&id=Other%20Revenue) This section details the decrease in Managed Services revenue for the three months ended June 30, across both International and US Telecom segments - Managed Services revenue decreased by **$0.9 million (17.6%)** to **$4.2 million** for Q2 2025, with decreases of **$0.4 million** in International Telecom and **$0.5 million** in US Telecom[230](index=230&type=chunk)[231](index=231&type=chunk) [Operating Expenses](index=76&type=section&id=Operating%20Expenses) This section analyzes changes in cost of communication services, construction revenue, SG&A, restructuring, depreciation, and asset disposition for the three months ended June 30 - Cost of communication services and other increased by **$1.1 million (1.45%)** to **$77.2 million** for Q2 2025[233](index=233&type=chunk) International Telecom remained consistent, while US Telecom increased by **$1.1 million** due to cell site rents, partially offset by cost savings and ECF program conclusion[233](index=233&type=chunk) - Cost of construction revenue increased to **$2.2 million** for Q2 2025 from **$0.8 million** for Q2 2024, a **168.5%** increase, due to more completed FirstNet sites[214](index=214&type=chunk)[236](index=236&type=chunk) - Selling, general and administrative expenses decreased by **$1.5 million (2.6%)** to **$56.2 million** for Q2 2025, driven by cost containment initiatives across all segments (International Telecom: **$0.4M** decrease, US Telecom: **$0.3M** decrease, Corporate Overhead: **$0.8M** decrease)[238](index=238&type=chunk)[242](index=242&type=chunk) - Restructuring and reorganization expenses totaled **$4.9 million** for Q2 2025 (International Telecom: **$1.4M**, US Telecom: **$2.4M**, Corporate and Other: **$1.2M**), with no such expenses in Q2 2024[214](index=214&type=chunk)[245](index=245&type=chunk)[246](index=246&type=chunk) - Depreciation and amortization expenses decreased by **$1.7 million (4.8%)** to **$33.9 million** for Q2 2025, due to reduced capital expenditures and fully depreciated assets in International Telecom (**$1.1M** decrease) and US Telecom (**$1.4M** decrease)[214](index=214&type=chunk)[247](index=247&type=chunk)[250](index=250&type=chunk) - Loss on disposition of assets and transfers was **$2.7 million** for Q2 2025 (International Telecom: **$0.1M**, US Telecom: **$2.6M**), compared to a **$15.9 million** gain in Q2 2024 (primarily from real estate sale in International Telecom)[214](index=214&type=chunk)[249](index=249&type=chunk)[251](index=251&type=chunk) [Other Income (Expense)](index=82&type=section&id=Other%20Income%20%28Expense%29) This section discusses changes in interest expense and other expenses, including foreign currency transaction losses, for the three months ended June 30 - Interest expense increased by **$0.5 million (3.8%)** to **$12.8 million** for Q2 2025, due to increased borrowings under credit facilities[214](index=214&type=chunk)[254](index=254&type=chunk) - Other expense was **$0.6 million** for Q2 2025, primarily from foreign currency transaction losses[255](index=255&type=chunk) [Income Taxes](index=82&type=section&id=Income%20Taxes) This section details the effective tax rates and income tax expenses/benefits for the three months ended June 30, highlighting influencing factors - The effective tax rate for Q2 2025 was **29.0%** (benefit of **$3.8 million** on a pretax loss of **$13.0 million**), compared to **1.8%** for Q2 2024 (expense of **$0.2 million** on a pretax income of **$11.5 million**)[255](index=255&type=chunk)[256](index=256&type=chunk)[257](index=257&type=chunk) [Net (income) loss attributable to noncontrolling interests, net of tax](index=84&type=section&id=Net%20%28income%29%20loss%20attributable%20to%20noncontrolling%20interests%2C%20net%20of%20tax) This section explains the allocation of net income or loss to noncontrolling interests for the three months ended June 30, by segment - Net loss attributable to noncontrolling interests was an allocation of **$2.2 million** in losses for Q2 2025, compared to **$2.3 million** in income for Q2 2024[260](index=260&type=chunk) - International Telecom's net income attributable to noncontrolling interests decreased by **$2.8 million** to an allocation of **$2.3 million** of income, largely due to the **$15.9 million** gain on asset disposition in Q2 2024[262](index=262&type=chunk) - US Telecom's net loss attributable to noncontrolling interests increased by **$1.7 million** to an allocation of **$4.5 million** in losses, due to increased losses at less than wholly owned subsidiaries[262](index=262&type=chunk) [Net income (loss) attributable to ATN International, Inc. stockholders](index=84&type=section&id=Net%20income%20%28loss%29%20attributable%20to%20ATN%20International%2C%20Inc.%20stockholders) This section presents the net income (loss) attributable to ATN International, Inc. stockholders and diluted EPS for the three months ended June 30 - Net loss attributable to ATN International, Inc. stockholders was **$7.0 million** for Q2 2025, compared to income of **$9.0 million** for Q2 2024[260](index=260&type=chunk) - Diluted EPS was a loss of **$0.56** for Q2 2025, compared to income of **$0.50** for Q2 2024, negatively impacted by preferred dividends of **$1.5 million** and **$1.4 million**, respectively[261](index=261&type=chunk) [Comparison of Segment Results (Six Months)](index=89&type=section&id=Comparison%20of%20Segment%20Results%20%28Six%20Months%29) This section analyzes the changes in revenue and operating income/loss for the International Telecom and US Telecom segments for the six months ended June 30 - International Telecom revenue increased by **$1.0 million (0.5%)** to **$189.4 million**, driven by ancillary services, partially offset by reductions in Mobility and Fixed revenue[266](index=266&type=chunk) - International Telecom operating expenses increased by **$14.1 million (9.8%)** to **$158.4 million**, influenced by a **$15.8 million** gain on asset disposition in the prior year and a **$1.7 million** increase in restructuring expenses[267](index=267&type=chunk) - International Telecom operating income decreased by **$13.2 million (29.9%)** to **$31.0 million**[268](index=268&type=chunk) - US Telecom revenue decreased by **$10.5 million (5.8%)** to **$171.2 million**, primarily due to a **$7.4 million** reduction in Fixed revenues (ECF and ACP conclusion), **$1.6 million** in Mobility, and **$1.1 million** in Carrier Services, partially offset by a **$0.9 million** increase in construction revenue[269](index=269&type=chunk) - US Telecom operating expenses decreased by **$1.0 million (0.6%)** to **$179.2 million**, due to reduced direct costs of services and cost savings initiatives[270](index=270&type=chunk) - US Telecom operating income shifted to a loss of **$7.9 million** from an income of **$1.5 million**[271](index=271&type=chunk) [Comparison of Consolidated Results (Six Months)](index=90&type=section&id=Comparison%20of%20Consolidated%20Results%20%28Six%20Months%29) This section provides a consolidated comparison of key financial metrics, including revenue, operating expenses, and net income (loss), for the six months ended June 30 Consolidated Results (Six Months Ended June 30, In Thousands) | Metric | 2025 | 2024 | Amount of Increase (Decrease) | Percent Increase (Decrease) | | :------------------------------------------ | :----- | :----- | :---------------------------- | :-------------------------- | | Communication services revenue | $348,905 | $358,633 | $(9,728) | (2.7)% | | Construction revenue | $3,262 | $2,406 | $856 | 35.6% | | Other revenue | $8,427 | $9,037 | $(610) | (6.8)% | | **Total revenue** | **$360,594** | **$370,076** | **$(9,482)** | **(2.6)%** | | Total operating expenses | $357,694 | $341,186 | $16,508 | 4.8% | | Income from operations | $2,900 | $28,890 | $(25,990) | (90.0)% | | Income (loss) before income taxes | $(24,614) | $5,213 | $(29,827) | (572.2)% | | NET INCOME (LOSS) | $(20,647) | $3,391 | $(24,038) | (708.9)% | | NET INCOME (LOSS) ATTRIBUTABLE TO ATN INTERNATIONAL, INC. STOCKHOLDERS | $(15,954) | $2,690 | $(18,644) | (693.1)% | [Communications Services Revenue](index=90&type=section&id=Communications%20Services%20Revenue) This section details changes in Mobility, Fixed, Carrier Services, and Other Communications Services revenue for the six months ended June 30, by segment - Mobility revenue decreased by **$2.1 million (3.9%)** to **$52.4 million** for H1 2025, due to a **$0.4 million** decrease in International Telecom (consumer equipment sales) and a **$1.6 million** decrease in US Telecom (conclusion of retail mobility services)[274](index=274&type=chunk)[276](index=276&type=chunk) - Fixed revenue decreased by **$7.8 million (3.3%)** to **$226.1 million** for H1 2025, primarily due to a **$0.4 million** decrease in International Telecom (business customers) and a **$7.4 million** decrease in US Telecom (conclusion of ECF and ACP programs)[277](index=277&type=chunk)[281](index=281&type=chunk) - Carrier Services revenue decreased by **$0.9 million (1.3%)** to **$66.4 million** for H1 2025, with a **$0.1 million** increase in International Telecom (roaming) offset by a **$1.1 million** decrease in US Telecom (transition to carrier service management contracts)[277](index=277&type=chunk)[281](index=281&type=chunk) - Other Communications Services revenue increased by **$1.1 million (37.9%)** to **$4.0 million** for H1 2025, due to increased project-related and ancillary services in International Telecom, partially offset by reduced non-recurring project revenue in US Telecom[278](index=278&type=chunk) [Construction Revenue](index=92&type=section&id=Construction%20Revenue) This section discusses the increase in construction revenue, primarily driven by completed FirstNet cell sites, for the six months ended June 30 - Construction revenue increased to **$3.3 million** for H1 2025 from **$2.4 million** for H1 2024, a **35.6%** increase, primarily due to an increase in completed FirstNet cell sites[273](index=273&type=chunk)[279](index=279&type=chunk] The build is expected to be substantially complete by the end of 2025[279](index=279&type=chunk) [Other Revenue](index=92&type=section&id=Other%20Revenue) This section details the decrease in Managed Services revenue for the six months ended June 30, across both International and US Telecom segments - Managed Services revenue decreased by **$0.6 million (6.7%)** to **$8.4 million** for H1 2025, with decreases of **$0.2 million** in International Telecom and **$0.4 million** in US Telecom[280](index=280&type=chunk) [Operating Expenses](index=92&type=section&id=Operating%20Expenses) This section analyzes changes in cost of communication services, construction revenue, SG&A, restructuring, depreciation, and asset disposition for the six months ended June 30 - Cost of communication services and other decreased by **$1.1 million (0.7%)** to **$155.4 million** for H1 2025[273](index=273&type=chunk)[284](index=284&type=chunk] International Telecom increased by **$0.7 million** (transport, doubtful accounts, maintenance), while US Telecom decreased by **$2.0 million** (cost savings, ECF program conclusion)[284](index=284&type=chunk) - Cost of construction revenue increased to **$3.7 million** for H1 2025 from **$2.4 million** for H1 2024, a **54.7%** increase, due to more completed FirstNet sites[273](index=273&type=chunk)[285](index=285&type=chunk) - Selling, general and administrative expenses decreased by **$7.6 million (6.4%)** to **$111.4 million** for H1 2025, due to cost containment initiatives across all segments (International Telecom: **$2.9M** decrease, US Telecom: **$2.8M** decrease, Corporate Overhead: **$1.8M** decrease)[273](index=273&type=chunk)[286](index=286&type=chunk)[289](index=289&type=chunk) - Transaction-related charges increased significantly to **$1.6 million** for H1 2025 from a nominal amount in H1 2024[273](index=273&type=chunk)[290](index=290&type=chunk) - Restructuring and reorganization expenses totaled **$6.7 million** for H1 2025 (International Telecom: **$2.9M**, US Telecom: **$2.5M**, Corporate and Other: **$1.4M**), compared to **$1.2 million** in H1 2024 (International Telecom)[273](index=273&type=chunk)[291](index=291&type=chunk)[292](index=292&type=chunk) - Depreciation and amortization expenses decreased by **$1.5 million (2.2%)** to **$68.4 million** for H1 2025, due to reduced capital expenditures and fully depreciated assets in International Telecom (**$1.9M** decrease) and US Telecom (**$1.3M** decrease)[273](index=273&type=chunk)[292](index=292&type=chunk)[296](index=296&type=chunk) - Loss on disposition of assets and transfers was **$3.4 million** for H1 2025 (International Telecom: **$0.4M**, US Telecom: **$3.0M**), compared to a **$16.4 million** gain in H1 2024 (primarily from real estate sale in International Telecom and renewable energy assets)[273](index=273&type=chunk)[294](index=294&type=chunk)[295](index=295&type=chunk) [Other Income (Expense)](index=98&type=section&id=Other%20Income%20%28Expense%29) This section discusses changes in interest income, interest expense, and other expenses, including foreign currency transaction losses, for the six months ended June 30 - Interest income decreased by **$0.2 million (31.1%)** to **$0.4 million** for H1 2025[273](index=273&type=chunk)[295](index=295&type=chunk) - Interest expense increased by **$0.9 million (3.8%)** to **$24.8 million** for H1 2025, due to increased borrowings[273](index=273&type=chunk)[298](index=298&type=chunk) - Other expense increased significantly to **$3.2 million** for H1 2025, primarily due to a non-operating employee-related matter and **$1.0 million** in foreign currency transaction losses[273](index=273&type=chunk)[298](index=298&type=chunk) [Income Taxes](index=98&type=section&id=Income%20Taxes) This section details the effective tax rates and income tax expenses/benefits for the six months ended June 30, highlighting influencing factors - The effective tax rate for H1 2025 was **16.1%** (benefit of **$4.0 million** on a pretax loss of **$24.6 million**), compared to **35.0%** for H1 2024 (expense of **$1.8 million** on a pretax income of **$5.2 million**)[299](index=299&type=chunk)[300](index=300&type=chunk)[301](index=301&type=chunk) [Net (income) loss attributable to noncontrolling interests, net of tax](index=98&type=section&id=Net%20%28income%29%20loss%20attributable%20to%20noncontrolling%20interests%2C%20net%20of%20tax) This section explains the allocation of net income or loss to noncontrolling interests for the six months ended June 30, by segment - Net loss attributable to noncontrolling interests was an allocation of **$4.7 million** in losses for H1 2025, compared to **$0.7 million** in income for H1 2024[273](index=273&type=chunk)[303](index=303&type=chunk) - International Telecom's net income attributable to noncontrolling interests decreased by **$2.8 million** to an allocation of **$3.8 million** of income, largely due to the **$15.9 million** gain on asset disposition in H1 2024[303](index=303&type=chunk) - US Telecom's net loss attributable to noncontrolling interests increased by **$2.6 million** to an allocation of **$8.5 million** in losses, due to increased losses at less than wholly owned subsidiaries[304](index=304&type=chunk) [Net loss attributable to ATN International, Inc. stockholders](index=100&type=section&id=Net%20loss%20attributable%20to%20ATN%20International%2C%20Inc.%20stockholders) This section presents the net loss attributable to ATN International, Inc. stockholders and diluted EPS for the six months ended June 30 - Net loss attributable to ATN International, Inc. stockholders was **$16.0 million** for H1 2025, compared to **$2.7 million** for H1 2024[304](index=304&type=chunk) - Diluted EPS was a loss of **$1.25** for H1 2025, compared to break-even for

Financial Data and Key Metrics Changes - Revenue for the second quarter was $181.3 million, down 1% year over year, primarily due to the wind down of subsidy programs and decommissioning of legacy services [15][19] - Adjusted EBITDA decreased by 6% to $45.8 million, reflecting lower U.S. telecom revenues [17][19] - Net loss for the quarter was $7 million, or $0.56 per share, compared to a net income of $9 million, or $0.50 per share in the prior year [16][19] - Net cash from operations rose 2% to approximately $60 million, driven largely by working capital improvements [4][21] Business Segment Performance - International segment revenues were approximately $95 million, essentially flat year over year, with growth in fiber services offset by declines in legacy services [18] - Adjusted EBITDA for the International segment remained flat at $33.3 million, reflecting cost containment efforts [19] - Domestic segment revenues were $86.4 million, down 1.7% year over year, impacted by the conclusion of subsidy programs and decommissioning of legacy services [19] - Adjusted EBITDA for the domestic segment decreased by 16.7% to $18.3 million, primarily due to revenue performance [20] Market Data and Key Metrics Changes - In the largest mobile market, postpaid subscribers grew by 4% year over year, with a 25% increase in data plan purchases [7] - High-speed data average revenue per user (ARPU) improved by 3% year over year, while subscriber churn also improved by 3% [8] - Consumer broadband subscriber base grew by over 10% in the quarter, with positive trends in ARPU [10] Company Strategy and Industry Competition - The company remains committed to its long-term strategy of expanding fiber and fiber-fed services in underserved markets [6][12] - Strategic investments have led to an 8% increase in broadband homes passed by high-speed data services [5] - The company is focused on transitioning its U.S. business by growing fiber and carrier services while phasing out non-strategic legacy products [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to absorb short-term effects from evolving subsidy programs and regulatory changes [11] - The company reaffirmed its full-year guidance, expecting revenue to align with 2024 levels of $725 million, excluding construction revenue [22] - Management noted that the second half of the year is expected to contribute a larger share of full-year results, with improvements anticipated in operational efficiency and cash flow [22] Other Important Information - The Board of Directors approved a 15% increase in the quarterly dividend, raising it to $0.0275 per share, reflecting confidence in cash flow resilience [5] - The company ended the quarter with $113.3 million in cash, up from $97.3 million at the end of Q1 [20] Q&A Session Summary Question: Impact of the one triple B bill - Management indicated that the bill has not had an impact yet, but they are monitoring it closely [32][33] Question: Competition and access to labor and materials in fiber deployment - Management noted that expedited permitting policies will help speed up deployment, and currently, there is sufficient labor supply to meet needs [35][39] Question: Potential for fiber business to be converted into a REIT structure - Management stated that this is not something they have explored yet, although they acknowledge the opportunities in digital infrastructure [42] Question: When might growth in fiber-led services offset declines in legacy services? - Management is optimistic about improvements in the second half of the year, with a decent pipeline and increased demand from carriers [45][47] Question: Changes in competitive dynamics in the mobile market - Management acknowledged ongoing competitive pressures but noted improvements in subscriber quality and data consumption trends [48][50]

Second Quarter 2025 Earnings Call August 8, 2025 1 Safe Harbor and Non-GAAP Financial Measures Definition Q1 FY 2025 Cautionary Language Concerning Forward-Looking Statements This presentation contains forward-looking statements relating to, among other matters, the Company's future financial performance, business goals and objectives, and results of operations, expectations regarding the transition of its US Telecom business, its future revenues, operating income, cash flows, network and operating costs, A ...

[Report Overview & Key Highlights](index=1&type=section&id=Report%20Overview%20%26%20Key%20Highlights) [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) ATN reports Q2 2025 revenue decreased 1% to $181.3 million year-over-year, operating income significantly dropped to $0.2 million, with a net loss of $(7.0) million, and Adjusted EBITDA decreased 6% | Metric (in Millions) | Q2 2025 | Q2 2024 | Change | | :----- | :------ | :------ | :----- | | Revenues | $181.3 | $183.3 | -1% | | Operating Income | $0.2 | $24.3 | -99.2% | | Net Loss | $(7.0) | $9.0 (Net Income) | N/A | | EPS | $(0.56) | $0.50 | N/A | | Adjusted EBITDA | $45.8 | $48.7 | -6% | - High-speed broadband homes passed increased by **8%**, and total high-speed subscribers increased by **1%**[4](index=4&type=chunk) [Reaffirmed Outlook for Full Year 2025](index=1&type=section&id=Reaffirmed%20Outlook%20for%20Full%20Year%202025) ATN reaffirms its FY2025 outlook, expecting revenue (excluding construction) and Adjusted EBITDA to be essentially flat at $725 million and $184 million respectively, with capital expenditures projected between $90 million and $100 million | Metric (in Millions) | Full Year 2025 Outlook | Full Year 2024 Result | Expected Change | | :----- | :--------------------- | :-------------------- | :-------------- | | Revenue (excl. construction) | ~$725 | $725 | In line | | Adjusted EBITDA | ~$184 | $184 | Essentially flat | | Capital Expenditures (net) | $90 - $100 | $110.4 | Decrease | | Net Debt Ratio | Flat to slight improvement | 2.54x | Flat to slight improvement | [Remarks by Brad Martin, ATN Chief Executive Officer](index=2&type=section&id=Remarks%20by%20Brad%20Martin,%20ATN%20Chief%20Executive%20Officer) CEO Brad Martin states Q2 results met expectations, reflecting efforts in cost structure optimization and long-term strategy execution, with international operations showing positive growth while US operations improve despite challenges - Second quarter results met expectations, reflecting the company's efforts in optimizing its cost structure and executing its long-term strategy[6](index=6&type=chunk) - The International segment is focused on enhancing its mobile network, improving service quality, expanding its post-paid subscriber base, and increasing operational efficiency[6](index=6&type=chunk) - US operations revenue performance was impacted by the termination of a subsidy program and the transition from legacy consumer services, but is beginning to show sequential improvement as the company focuses on providing best-in-class carrier and enterprise solutions and expanding fiber and fiber-fed fixed wireless deployments[6](index=6&type=chunk) - The company's business-wide focus on simplification, operational stability, and prudent capital allocation is driving stronger cash generation[7](index=7&type=chunk) [Consolidated Financial Results](index=2&type=section&id=Consolidated%20Financial%20Results) [Second Quarter 2025 Consolidated Performance](index=2&type=section&id=Second%20Quarter%202025%20Financial%20Results) Q2 2025 consolidated revenue decreased 1% year-over-year to $181.3 million, with operating income significantly dropping to $0.2 million due to asset disposal losses and restructuring charges, resulting in a net loss of $(7.0) million | Metric (in Thousands) | Q2 2025 | Q2 2024 | Change (%) | | :----- | :--------------------- | :--------------------- | :--------- | | Total Revenue | $181,300 | $183,281 | -1.08% | | Operating Income (Loss) | $233 | $24,316 | -99.04% | | Net Income (Loss) attributable to ATN | $(7,026) | $9,003 | N/A | | Diluted EPS | $(0.56) | $0.50 | N/A | | Adjusted EBITDA | $45,792 | $48,670 | -5.89% | - The significant decrease in operating income was primarily due to a **$15.9 million net gain on asset disposals in Q2 2024** compared to a **$2.7 million loss in Q2 2025**, partially offset by cost control measures, and impacted by **$4.9 million in restructuring charges**[8](index=8&type=chunk) [Six Months Ended June 30, 2025 Consolidated Performance](index=9&type=section&id=Six%20Months%20Ended%20June%2030,%202025%20Consolidated%20Performance) For the six months ended June 30, 2025, total revenue decreased 2.56% to $360.6 million, operating income significantly dropped to $2.9 million, and the company reported a net loss of $(16.0) million | Metric (in Thousands) | 6 Months 2025 | 6 Months 2024 | Change (%) | | :----- | :--------------------------- | :--------------------------- | :--------- | | Total Revenue | $360,594 | $370,076 | -2.56% | | Operating Income (Loss) | $2,900 | $28,890 | -89.96% | | Net Income (Loss) attributable to ATN | $(15,954) | $2,690 | N/A | | Diluted EPS | $(1.25) | $(0.00) | N/A | [Segment Operating Results](index=3&type=section&id=Segment%20Operating%20Results) ATN's operations are divided into International Telecom, US Telecom, and Corporate and Other segments, with International Telecom maintaining stable revenue and positive contributions, while US Telecom faces revenue decline and operating losses due to subsidy program termination and legacy service transition [Segment Results for Three Months Ended June 30, 2025](index=3&type=section&id=For%20Three%20Months%20Ended%20June%2030,%202025) In Q2 2025, International Telecom reported $94.9 million in revenue, $16.2 million in operating income, and $33.3 million in Adjusted EBITDA, while US Telecom had $86.4 million in revenue, an operating loss of $(5.5) million, and Adjusted EBITDA of $18.3 million | Metric (in Thousands) | International Telecom | US Telecom | Corporate and Other | Total ATN | | :-------------------- | :-------------------- | :--------- | :------------------ | :-------- | | Total Revenue | $94,894 | $86,406 | $- | $181,300 | | Operating Income (Loss) | $16,221 | $(5,533) | $(10,455) | $233 | | Adjusted EBITDA | $33,274 | $18,262 | $(5,744) | $45,792 | [Segment Results for Three Months Ended June 30, 2024](index=3&type=section&id=For%20Three%20Months%20Ended%20June%2030,%202024) In Q2 2024, International Telecom reported $95.4 million in revenue, $32.4 million in operating income, and $33.3 million in Adjusted EBITDA, while US Telecom had $87.9 million in revenue, $0.9 million in operating income, and $21.9 million in Adjusted EBITDA | Metric (in Thousands) | International Telecom | US Telecom | Corporate and Other | Total ATN | | :-------------------- | :-------------------- | :--------- | :------------------ | :-------- | | Total Revenue | $95,357 | $87,924 | $- | $183,281 | | Operating Income (Loss) | $32,405 | $884 | $(8,973) | $24,316 | | Adjusted EBITDA | $33,285 | $21,919 | $(6,534) | $48,670 | [Segment Results for Six Months Ended June 30, 2025](index=3&type=section&id=For%20Six%20Months%20Ended%20June%2030,%202025) For the six months ended June 30, 2025, International Telecom reported $189.4 million in revenue, $31.0 million in operating income, and $65.7 million in Adjusted EBITDA, while US Telecom had $171.2 million in revenue, an operating loss of $(7.9) million, and Adjusted EBITDA of $35.8 million | Metric (in Thousands) | International Telecom | US Telecom | Corporate and Other | Total ATN | | :-------------------- | :-------------------- | :--------- | :------------------ | :-------- | | Total Revenue | $189,390 | $171,204 | $- | $360,594 | | Operating Income (Loss) | $30,970 | $(7,948) | $(20,122) | $2,900 | | Adjusted EBITDA | $65,665 | $35,774 | $(11,308) | $90,131 | [Segment Results for Six Months Ended June 30, 2024](index=3&type=section&id=For%20Six%20Months%20Ended%20June%2030,%202024) For the six months ended June 30, 2024, International Telecom reported $188.4 million in revenue, $44.1 million in operating income, and $62.6 million in Adjusted EBITDA, while US Telecom had $181.7 million in revenue, $1.5 million in operating income, and $42.6 million in Adjusted EBITDA | Metric (in Thousands) | International Telecom | US Telecom | Corporate and Other | Total ATN | | :-------------------- | :-------------------- | :--------- | :------------------ | :-------- | | Total Revenue | $188,416 | $181,660 | $- | $370,076 | | Operating Income (Loss) | $44,090 | $1,482 | $(16,682) | $28,890 | | Adjusted EBITDA | $62,558 | $42,622 | $(12,992) | $92,188 | [Operating Metrics](index=4&type=section&id=Operating%20Metrics) ATN's Q2 2025 operating metrics show high-speed data broadband homes passed increased 8% and high-speed data broadband customers grew 1%, while total broadband customers decreased 5% and total mobile subscribers declined 1% | Metric | Q2 2025 | Q2 2024 | YoY Change | | :-------------------------------- | :------ | :------ | :--------- | | High-Speed Data Broadband Homes Passed | 427,500 | 396,100 | 8% | | High-Speed Data Broadband Customers | 141,900 | 140,600 | 1% | | Broadband Homes Passed | 803,400 | 798,300 | 1% | | Broadband Customers | 200,300 | 211,400 | -5% | | Fiber Route Miles | 11,957 | 11,880 | 1% | | International Mobile Pre-Paid Subscribers | 332,300 | 339,000 | -2% | | International Mobile Post-Paid Subscribers | 60,200 | 57,900 | 4% | | International Mobile Total Subscribers | 392,500 | 396,900 | -1% | | Blended Churn | 3.09% | 3.44% | -0.35 pp | [Balance Sheet and Cash Flow Analysis](index=4&type=section&id=Balance%20Sheet%20and%20Cash%20Flow%20Analysis) [Balance Sheet Highlights](index=4&type=section&id=Balance%20Sheet%20Highlights) As of June 30, 2025, ATN's total cash, cash equivalents, and restricted cash increased to $113.3 million, total debt rose to $583.4 million, resulting in a net debt ratio of 2.58x, while total assets slightly decreased to $1,707.0 million | Metric (in Thousands) | June 30, 2025 | December 31, 2024 | Change | | :-------------------- | :------------ | :---------------- | :----- | | **Assets:** | | | | | Cash and cash equivalents | $98,965 | $73,393 | | | Restricted cash | $14,350 | $15,851 | | | Total current assets | $327,752 | $309,161 | | | Property, plant and equipment, net | $1,010,631 | $1,040,193 | | | Total assets | $1,707,006 | $1,727,103 | -1.16% | | **Liabilities & Equity:** | | | | | Current portion of long-term debt | $14,851 | $8,226 | | | Total current liabilities | $269,024 | $267,314 | | | Long-term debt, net of current portion | $568,548 | $549,130 | | | Total liabilities | $1,060,519 | $1,055,349 | +0.49% | | Total stockholders' equity | $567,772 | $595,451 | | [Cash Flow Highlights](index=4&type=section&id=Cash%20Flow%20Highlights) For the six months ended June 30, 2025, net cash provided by operating activities increased 2% to $59.8 million, primarily due to improved working capital, while capital expenditures (net of reimbursements) decreased to $42.0 million | Metric (in Thousands) | 6 Months 2025 | 6 Months 2024 | Change (%) | | :-------------------- | :------------ | :------------ | :--------- | | Net cash provided by operating activities | $59,843 | $58,410 | +2.45% | | Capital expenditures (net of reimbursements) | $42,016 | $61,830 | -32.04% | - Net cash provided by operating activities increased primarily due to improved working capital[20](index=20&type=chunk) [Capital Allocation & Debt](index=4&type=section&id=Capital%20Allocation%20%26%20Debt) [Quarterly Dividends and Stock Repurchases](index=4&type=section&id=Quarterly%20Dividends%20and%20Stock%20Repurchases) In Q2 2025, the quarterly dividend increased 15% to $0.275 per share, paid on July 7, 2025, with no stock repurchases made during the quarter - Quarterly dividend increased by **15% to $0.275 per share**[21](index=21&type=chunk) - The company did not repurchase any shares during the quarter ended June 30, 2025[23](index=23&type=chunk) [Net Debt Ratio](index=16&type=section&id=Net%20Debt%20Ratio) As of June 30, 2025, the net debt ratio was 2.58x, calculated as net debt of $470.1 million divided by Adjusted EBITDA of $182.0 million for the trailing four quarters | Metric (in Thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Total debt | $583,399 | $557,356 | | Less: Cash, cash equivalents and restricted cash | $113,315 | $89,244 | | Net Debt | $470,084 | $468,112 | | Adjusted EBITDA - for the four quarters ended | $182,027 | $184,084 | | Net Debt Ratio | 2.58 | 2.54 | [2025 Business Outlook](index=5&type=section&id=2025%20Business%20Outlook) ATN reaffirms its FY2025 guidance, expecting revenue (excluding construction) and Adjusted EBITDA to be essentially flat at $725 million and $184 million respectively, with capital expenditures projected between $90 million and $100 million, and the net debt ratio expected to remain stable or slightly improve - ATN reaffirms its 2025 guidance, confident in creating long-term value through prudent execution and strategic focus[23](index=23&type=chunk) | Metric (in Millions) | Full Year 2025 Outlook | Full Year 2024 Result | Expected Change | | :----- | :--------------------- | :-------------------- | :-------------- | | Revenue (excl. construction) | ~$725 | $725 | In line | | Adjusted EBITDA | ~$184 | $184 | Essentially flat | | Capital expenditures (net) | $90 - $100 | $110.4 | Decrease | | Net Debt Ratio | Flat to slight improvement | 2.54x | Flat to slight improvement | [Company Information & Non-GAAP Measures](index=6&type=section&id=Company%20Information%20%26%20Non-GAAP%20Measures) [About ATN](index=6&type=section&id=About%20ATN) ATN International, Inc. is a leading digital infrastructure and communication services provider headquartered in Beverly, Massachusetts, operating in the US and internationally, focusing on rural and remote markets with growing infrastructure investment needs - ATN International, Inc. is a leading digital infrastructure and communication services provider, headquartered in Beverly, Massachusetts[26](index=26&type=chunk) - The company operates in the US and internationally, including the Caribbean, focusing on rural and remote markets with growing infrastructure investment needs[26](index=26&type=chunk) - Primary business includes providing advanced wireless and wireline connectivity services to residential, commercial, and government customers, as well as carrier and enterprise communication services[26](index=26&type=chunk) [Use of Non-GAAP Financial Measures and Definition of Terms](index=6&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures%20and%20Definition%20of%20Terms) This section defines ATN's non-GAAP financial measures, including EBITDA, Adjusted EBITDA, Net Debt, and Net Debt Ratio, which are used to help investors understand core operating performance and facilitate comparisons - EBITDA is defined as operating income (loss) before depreciation and amortization expense[28](index=28&type=chunk) - Adjusted EBITDA is defined as operating income (loss) before depreciation and amortization expense, transaction-related expenses, restructuring and reorganization expenses, one-time impairment or special charges, gain or loss on asset disposals and transfers, and non-cash stock-based compensation expense[28](index=28&type=chunk) - Net Debt is defined as total debt less cash and cash equivalents and restricted cash[29](index=29&type=chunk) - The Net Debt Ratio is defined as Net Debt divided by the sum of Adjusted EBITDA for the trailing four quarters ended as of the measurement date[30](index=30&type=chunk) [Cautionary Language Concerning Forward-Looking Statements](index=7&type=section&id=Cautionary%20Language%20Concerning%20Forward-Looking%20Statements) This section warns that the press release contains forward-looking statements based on estimates and assumptions, which are not guarantees of future events or results, and actual outcomes may differ materially due to various factors - This press release contains forward-looking statements based on estimates, projections, beliefs, and assumptions, which are not guarantees of future events or results[33](index=33&type=chunk) - Actual future events and results may differ materially due to various factors, including operational performance, government subsidy programs, personnel recruitment, reliance on key suppliers, customer demand, fiber market expansion, network capacity, technology upgrades, capital market access, US telecom business growth, economic downturn risks, investment opportunities, and natural disasters and increased competition[33](index=33&type=chunk) [Contact Information](index=7&type=section&id=Contact) Provides contact information for Michele Satrowsky, Corporate Treasurer, and Adam Rogers, Investor Relations, for inquiries - Contact information is provided for Michele Satrowsky, Corporate Treasurer, and Adam Rogers, Investor Relations[34](index=34&type=chunk) [Detailed Financial Statements & Reconciliations](index=8&type=section&id=Detailed%20Financial%20Statements%20%26%20Reconciliations) [Unaudited Condensed Consolidated Balance Sheets](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) The consolidated balance sheets provide a snapshot of ATN's financial position as of June 30, 2025, and December 31, 2024, detailing assets, liabilities, and stockholders' equity | (in Thousands) | June 30, 2025 | December 31, 2024 | | :------------- | :------------ | :---------------- | | **Assets:** | | | | Cash and cash equivalents | $98,965 | $73,393 | | Restricted cash | $14,350 | $15,851 | | Total current assets | $327,752 | $309,161 | | Property, plant and equipment, net | $1,010,631 | $1,040,193 | | Total assets | $1,707,006 | $1,727,103 | | **Liabilities & Equity:** | | | | Current portion of long-term debt | $14,851 | $8,226 | | Total current liabilities | $269,024 | $267,314 | | Long-term debt, net of current portion | $568,548 | $549,130 | | Total liabilities | $1,060,519 | $1,055,349 | | Total stockholders' equity | $567,772 | $595,451 | [Unaudited Condensed Consolidated Statements of Operations](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) The consolidated statements of operations present ATN's revenue, expenses, and net income (loss) for the three and six months ended June 30, 2025, and 2024 | (in Thousands, Except per Share Data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenue | $181,300 | $183,281 | $360,594 | $370,076 | | Total operating expenses | $181,067 | $158,965 | $357,694 | $341,186 | | Operating income (loss) | $233 | $24,316 | $2,900 | $28,890 | | Loss before income taxes | $(13,036) | $11,541 | $(24,614) | $5,213 | | Net income (loss) attributable to ATN International, Inc. stockholders | $(7,026) | $9,003 | $(15,954) | $2,690 | | Diluted EPS | $(0.56) | $0.50 | $(1.25) | $(0.00) | [Unaudited Condensed Consolidated Cash Flow Statements](index=10&type=section&id=Unaudited%20Condensed%20Consolidated%20Cash%20Flow%20Statements) The consolidated cash flow statements detail ATN's sources and uses of cash from operating, investing, and financing activities for the six months ended June 30, 2025, and 2024 | (in Thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------- | :----------------------------- | :----------------------------- | | Net loss | $(20,647) | $3,391 | | Net cash provided by operating activities | $59,843 | $58,410 | | Net cash used in investing activities | $(45,636) | $(46,843) | | Net cash (used) provided by financing activities | $9,864 | $(481) | | Net change in total cash, cash equivalents and restricted cash | $24,071 | $11,086 | | Total cash, cash equivalents and restricted cash, end of period | $113,315 | $73,253 | [Selected Segment Financial Information](index=11&type=section&id=Selected%20Segment%20Financial%20Information) This section provides detailed segmented data for ATN's International Telecom, US Telecom, and Corporate and Other segments, including revenue, operating income (loss), and non-GAAP metrics like EBITDA and Adjusted EBITDA, for the three and six months ended June 30, 2025, and 2024 **Three Months Ended June 30, 2025 (in Thousands):** | Metric | International Telecom | US Telecom | Corporate and Other | Total | | :----- | :-------------------- | :--------- | :------------------ | :---- | | Total Revenue | $94,894 | $86,406 | $- | $181,300 | | Operating income (loss) | $16,221 | $(5,533) | $(10,455) | $233 | | Adjusted EBITDA | $33,274 | $18,262 | $(5,744) | $45,792 | **Three Months Ended June 30, 2024 (in Thousands):** | Metric | International Telecom | US Telecom | Corporate and Other | Total | | :----- | :-------------------- | :--------- | :------------------ | :---- | | Total Revenue | $95,357 | $87,924 | $- | $183,281 | | Operating income (loss) | $32,405 | $884 | $(8,973) | $24,316 | | Adjusted EBITDA | $33,285 | $21,919 | $(6,534) | $48,670 | **Six Months Ended June 30, 2025 (in Thousands):** | Metric | International Telecom | US Telecom | Corporate and Other | Total | | :----- | :-------------------- | :--------- | :------------------ | :---- | | Total Revenue | $189,390 | $171,204 | $- | $360,594 | | Operating income (loss) | $30,970 | $(7,948) | $(20,122) | $2,900 | | Adjusted EBITDA | $65,665 | $35,774 | $(11,308) | $90,131 | **Six Months Ended June 30, 2024 (in Thousands):** | Metric | International Telecom | US Telecom | Corporate and Other | Total | | :----- | :-------------------- | :--------- | :------------------ | :---- | | Total Revenue | $188,416 | $181,660 | $- | $370,076 | | Operating income (loss) | $44,090 | $1,482 | $(16,682) | $28,890 | | Adjusted EBITDA | $62,558 | $42,622 | $(12,992) | $92,188 | [Reconciliation of Non-GAAP Measures](index=15&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section provides detailed reconciliation tables for operating income (loss) to EBITDA and Adjusted EBITDA, presented by segment, for the three and six months ended June 30, 2025, and 2024 **Three Months Ended June 30, 2025 (in Thousands):** | Metric | International Telecom | US Telecom | Corporate and Other | Total | | :----- | :-------------------- | :--------- | :------------------ | :---- | | Operating income (loss) | $16,221 | $(5,533) | $(10,455) | $233 | | Depreciation expense | $15,154 | $17,850 | $859 | $33,863 | | Amortization of intangibles | $251 | $975 | $- | $1,226 | | EBITDA | $31,626 | $13,292 | $(9,596) | $35,322 | | ADJUSTED EBITDA | $33,274 | $18,262 | $(5,744) | $45,792 | **Three Months Ended June 30, 2024 (in Thousands):** | Metric | International Telecom | US Telecom | Corporate and Other | Total | | :----- | :-------------------- | :--------- | :------------------ | :---- | | Operating income (loss) | $32,405 | $884 | $(8,973) | $24,316 | | Depreciation expense | $16,277 | $19,234 | $47 | $35,558 | | Amortization of intangibles | $252 | $1,693 | $- | $1,945 | | EBITDA | $48,934 | $21,811 | $(8,926) | $61,819 | | ADJUSTED EBITDA | $33,285 | $21,919 | $(6,534) | $48,670 | **Six Months Ended June 30, 2025 (in Thousands):** | Metric | International Telecom | US Telecom | Corporate and Other | Total | | :----- | :-------------------- | :--------- | :------------------ | :---- | | Operating income (loss) | $30,970 | $(7,948) | $(20,122) | $2,900 | | Depreciation expense | $30,531 | $36,134 | $1,725 | $68,390 | | Amortization of intangibles | $503 | $1,949 | $- | $2,452 | | EBITDA | $62,004 | $30,135 | $(18,397) | $73,742 | | ADJUSTED EBITDA | $65,665 | $35,774 | $(11,308) | $90,131 | **Six Months Ended June 30, 2024 (in Thousands):** | Metric | International Telecom | US Telecom | Corporate and Other | Total | | :----- | :-------------------- | :--------- | :------------------ | :---- | | Operating income (loss) | $44,090 | $1,482 | $(16,682) | $28,890 | | Depreciation expense | $32,400 | $37,372 | $125 | $69,897 | | Amortization of intangibles | $503 | $3,421 | $- | $3,924 | | EBITDA | $76,993 | $42,275 | $(16,557) | $102,711 | | ADJUSTED EBITDA | $62,558 | $42,622 | $(12,992) | $92,188 |

Core Insights - ATN International, Inc. reported a consolidated revenue of $181.3 million for Q2 2025, a decrease of 1% compared to $183.3 million in Q2 2024, primarily due to the wind-down of subsidy programs and exit from legacy consumer solutions [4][6][7] - The company experienced a net loss of $7.0 million, or $0.56 per share, compared to a net income of $9.0 million, or $0.50 per diluted share, in the same quarter last year [6][7][30] - Adjusted EBITDA for Q2 2025 was $45.8 million, down 6% from $48.7 million in Q2 2024 [6][7][30] Financial Performance - Operating income for Q2 2025 was $0.2 million, significantly lower than $24.3 million in Q2 2024, which had benefited from a net gain of $15.9 million from asset dispositions [5][6][30] - Selling, general, and administrative costs were reduced, partially offsetting restructuring expenses of $4.9 million in the current quarter [5][6] - Net cash provided by operating activities increased by 2% to $59.8 million for the year-to-date period [7][15] Segment Performance - International Telecom revenue was $94.9 million in Q2 2025, slightly down from $95.4 million in Q2 2024, while US Telecom revenue decreased to $86.4 million from $87.9 million [9][36] - The company expanded high-speed broadband homes passed by 8% and grew total high-speed subscribers by 1% [7][12] - The total number of international mobile subscribers decreased by 1% to 392,500, with a 4% increase in post-paid subscribers [12][36] Business Outlook - The company reaffirmed its full-year 2025 guidance, expecting revenue excluding construction revenue to align with last year's result of $725 million and adjusted EBITDA to be flat at approximately $184 million [22][17] - Capital expenditures are projected to be between $90 million and $100 million for the year, compared to $110.4 million in 2024 [22][17] - The net debt ratio is expected to remain flat, with a slight potential improvement by the end of 2025 compared to 2.54x at the end of 2024 [22][17]

Core Points - ATN International, Inc. announced a change in the start time for its second quarter 2025 financial results conference call, now scheduled for 9:00 a.m. ET on August 8, 2025, which is one hour earlier than previously planned [1] - The company provides a live audio webcast of the conference call, with a replay available starting at approximately 1:00 p.m. ET on the same day [2] - ATN International operates in the digital infrastructure and communications services sector, focusing on rural and remote markets, offering advanced wireless and wireline connectivity, as well as carrier and enterprise communications services [4]

Company Overview - ATN International, Inc. is a leading provider of digital infrastructure and communications services, headquartered in Beverly, Massachusetts [4] - The company operates in the United States and internationally, focusing on rural and remote markets with increasing demand for infrastructure investments [4] - ATN's services include advanced wireless and wireline connectivity, high-speed Internet, data services, fixed and mobile wireless solutions, video and voice services, as well as carrier and enterprise communications services [4] Upcoming Financial Results - ATN will release its second quarter 2025 results on August 7, 2025, after market close [1] - A conference call to discuss the results will be held on August 8, 2025, at 10:00 a.m. ET [1] - The call will be accessible via a live audio webcast, with a replay available shortly after the call [2] Participation Details - Participants must register through a provided link to receive dial-in numbers and a unique PIN for the live call [3] - If participants forget their PIN or lose the registration confirmation, they can re-register to obtain a new PIN [3] Additional Information - An investor presentation will be available as a supplement to the conference call on the company's Investor Relations website [2] - For further information, the company can be contacted through its corporate treasurer or investor relations [6]

Core Points - ATN International, Inc. announced a quarterly dividend increase of 15% to $0.275 per share, payable on July 7, 2025 [1] - The decision to increase the dividend reflects the company's confidence in its financial strength and future cash flow generation [2] - The company is focused on monetizing investments made during a recent three-year strategic capital spending cycle, supported by cost management and efficiency initiatives [2] Company Overview - ATN International, Inc. is headquartered in Beverly, Massachusetts, and provides digital infrastructure and communications services in the U.S. and internationally, particularly in rural and remote markets [3] - The company's services include advanced wireless and wireline connectivity, high-speed Internet, data services, and carrier and enterprise communications services [3]

Financial Performance - Total revenue for the three months ended March 31, 2025, was $179.294 million, a decrease of 4.0% from $186.794 million in the same period of 2024[14]. - Communication services revenue decreased to $174.031 million from $181.268 million, reflecting a decline of 4.0% year-over-year[14]. - Net loss attributable to ATN International, Inc. stockholders for Q1 2025 was $8.928 million, compared to a net loss of $6.315 million in Q1 2024, representing an increase in loss of 41.5%[14]. - Basic and diluted net loss per share for Q1 2025 was $(0.69), compared to $(0.50) in Q1 2024, indicating a worsening in per-share performance[14]. - The company reported comprehensive loss attributable to ATN International, Inc. of $8.497 million for Q1 2025, compared to $4.883 million in Q1 2024, indicating a significant increase in comprehensive loss[17]. - For the three months ended March 31, 2025, the company reported a net loss of $11,387,000, compared to a net loss of $7,948,000 for the same period in 2024, indicating a year-over-year increase in losses of approximately 43%[22]. - The company reported a total comprehensive loss of $10,956,000 for the three months ended March 31, 2025, compared to a total comprehensive loss of $6,516,000 for the same period in 2024, indicating a 68.0% increase in losses[22]. - The effective tax rate for the three months ended March 31, 2025 was 1.7%, a significant improvement from the effective tax rate of (25.6%) for the same period in 2024[137][138]. Assets and Liabilities - Total current assets decreased slightly to $305.707 million as of March 31, 2025, from $309.161 million at December 31, 2024[12]. - Total liabilities decreased to $1,049.174 million as of March 31, 2025, from $1,055.349 million at December 31, 2024[12]. - Cash and cash equivalents increased to $83.452 million as of March 31, 2025, compared to $73.393 million at December 31, 2024, showing a growth of 13.9%[12]. - Total assets as of March 31, 2025, were $1,707,449 million, compared to $1,727,103 million at the end of 2024, showing a decrease of approximately 1.1%[157]. - Total debt, including current portion, was $562,384 million as of March 31, 2025, slightly up from $557,356 million at the end of 2024[157]. Cash Flow and Expenditures - The company generated net cash provided by operating activities of $35,905,000 for the three months ended March 31, 2025, compared to $23,176,000 for the same period in 2024, reflecting a year-over-year increase of approximately 55%[22]. - Capital expenditures for the three months ended March 31, 2025, were $20,832,000, a decrease from $36,016,000 in the same period of 2024, indicating a reduction of approximately 42%[22]. - The company declared dividends of $3,652,000 on common stock for the three months ended March 31, 2025, compared to $3,720,000 in the same period of 2024, showing a slight decrease of about 2%[22]. Strategic Focus and Investments - The company continues to focus on strategic investment plans and expansion of its customer base, despite facing challenges in operating margins and subscriber growth[8]. - The company is actively evaluating investment opportunities and strategic transactions to enhance its telecommunications business and generate excess operating cash flows[24]. - The company is focused on expanding its digital infrastructure and communications services in rural and remote markets in the U.S. and internationally, including Bermuda and the Caribbean[23]. Revenue Recognition and Performance Obligations - Revenue recognized under ASC 606 for services transferred over time was $158.221 million for Q1 2025, up from $166.603 million in Q1 2024, indicating a decline of about 5.0%[40]. - Remaining performance obligations totaled $595 million as of March 31, 2025, with approximately 43% expected to be satisfied within the next 24 months[47]. - The company recognized $18.3 million in revenue related to contract liabilities during the three months ended March 31, 2025[45]. - Government support revenue for the three months ended March 31, 2025, was $12.672 million, compared to $11.780 million for the same period in 2024, showing an increase of approximately 7.5%[40]. Operational Segments - Operating income for the International Telecom segment was $14.750 million for the three months ended March 31, 2025, while the US Telecom segment reported an operating loss of $2.415 million[154]. - The company’s operating segments include US Telecom and International Telecom, focusing on providing digital infrastructure and communication services in rural and remote markets[23][26].