Core Insights - Longleaf Partners Small-Cap Fund's Q4 2025 performance was below the benchmarks, returning 1.13% compared to 2.40% for the Russell 3000 Index and 2.19% for the Russell 2000 Index [1] - The Fund's annual return was 7.56%, significantly lower than the 17.15% and 12.81% returns of the respective indexes [1] - The Fund emphasized the importance of investing in companies with strong free cash flow rather than speculative trends during market volatility [1] Company Focus: GCI Liberty, Inc. - GCI Liberty, Inc. (NASDAQ:GLIBK) is a communication services company with a one-month return of 8.00% and a year-to-date gain of 5.21% [2] - As of February 24, 2026, GCI Liberty's stock closed at $39.15 per share, with a market capitalization of $1.559 billion [2] - GCI Liberty holds a dominant position in Alaska's broadband market and possesses irreplicable assets due to the region's unique geography [3] - The company is expected to generate significant free cash flow in the near term, with potential for growth similar to Liberty Media [3] - John Malone, a notable figure in the industry, remains Chairman and has shown confidence in GCI through insider purchases and a $300 million rights offering [3] - Despite its strong competitive position, GCI Liberty trades at a discount compared to Lower 48 telecom assets [3]

Financial Performance - For the full year 2025, GCI revenue increased by 3% to $1 billion, with Adjusted OIBDA growing by 12% to $403 million[3]. - GCI's operating loss for 2025 was $347 million, primarily due to a non-cash impairment charge of $525 million recognized in Q3 2025[10]. - In Q4 2025, GCI's revenue was flat at $262 million, while Adjusted OIBDA increased by 7% to $90 million[3]. - Revenue for the year ended December 31, 2025, was $1,046 million, an increase from $1,016 million in 2024[39]. - Operating loss for 2025 was $347 million, compared to an operating income of $140 million in 2024[39]. - Net loss for 2025 was $309 million, resulting in a basic net loss per share of $9.97[39]. - GCI Liberty's Adjusted OIBDA for 2025 was $403 million, compared to $360 million in 2024[35]. - Net earnings for 2025 were a loss of $309 million, compared to a profit of $70 million in 2024[40]. Cash Flow and Investments - GCI generated net cash provided by operating activities of $370 million and free cash flow of $146 million for the full year 2025[13]. - Free cash flow for the year ended December 31, 2025, was $146 million, up from $85 million in 2024[37]. - Cash provided by operating activities increased to $370 million in 2025 from $278 million in 2024, reflecting a growth of 33%[40]. - The company reported a net cash increase of $354 million in 2025, compared to a decrease of $22 million in 2024[40]. - Cash, cash equivalents, and restricted cash at the end of the period rose to $429 million, up from $75 million in the previous year[40]. - The net cash used in investing activities was $218 million in 2025, compared to $193 million in 2024[40]. Consumer and Business Segments - Consumer revenue decreased by 2% for both the full year and Q4, driven by the exit from the video business and data subscriber losses[15]. - GCI Business revenue grew by 7% for the full year and 1% in Q4, with data revenue from service upgrades offsetting lower wireless roaming revenue[20]. - Consumer cable modem subscribers declined by 3% to 151,200, while consumer wireless lines in service increased by 2% to 199,000[16]. - GCI Consumer gross margin increased to 70.7% for the year, a 220 bps increase from the previous year[19]. Capital Expenditures and Debt - Capital expenditures for 2025 totaled $224 million, primarily for improvements to wireless and data networks in rural Alaska[12]. - Capital expenditures remained stable at $248 million in 2025, slightly up from $247 million in 2024[40]. - Total debt as of December 31, 2025, was $985 million, with a leverage ratio of 2.3x for GCI and 1.6x for GCI Liberty[28]. - Borrowings of debt surged to $691 million in 2025, a significant increase from $155 million in 2024[40]. Corporate Actions - GCI completed a $300 million rights offering in December 2025, which will be used for general corporate purposes and potential strategic acquisitions[4]. - The company issued $10 million of non-voting preferred stock with a 12% dividend rate in Q3 2025[26]. - Dividends paid to former parent were eliminated in 2025, as opposed to $150 million paid in 2024[40]. - GCI Liberty's total assets decreased to $3,234 million as of December 31, 2025, from $3,382 million in 2024[38]. - GCI Liberty's current assets increased to $615 million as of December 31, 2025, from $319 million in 2024[38]. - The company received $91 million in state indemnification from Liberty Broadband, which was not reported in the previous year[40]. Impairments - Impairment of goodwill and intangible assets amounted to $525 million in 2025, with no such impairment reported in 2024[40].

Financial Performance - Consolidated revenue increased by $30 million to $1,046 million for the year ended December 31, 2025, compared to $1,016 million in 2024 [347]. - Operating income decreased by $487 million, resulting in an operating loss of $347 million for the year ended December 31, 2025 [364]. - Adjusted OIBDA increased by $43 million to $403 million for the year ended December 31, 2025, compared to $360 million in 2024 [367]. - For the year ended December 31, 2025, the company reported net losses of $309 million compared to net earnings of $70 million for 2024, reflecting fluctuations in revenue and expenses [371]. Revenue Breakdown - GCI Holdings' revenue is driven by monthly fees for data, wireless, voice, and managed services, as well as universal service subsidies from the FCC [319]. - Consumer data revenue decreased by $8 million to $239 million for the year ended December 31, 2025, primarily due to a decline in subscribers [350]. - Consumer wireless revenue increased by $16 million to $208 million for the year ended December 31, 2025, driven by increased wireless USF support for high-cost areas [351]. - Business data revenue increased by $43 million to $503 million for the year ended December 31, 2025, primarily due to service upgrades with existing healthcare and education customers [353]. Expenses and Impairments - The impairment of goodwill and intangible assets was recorded at $525 million, consisting of a goodwill impairment of $108 million and an intangible asset impairment of $417 million [363]. - Operating expenses decreased by $16 million to $523 million for the year ended December 31, 2025, compared to $539 million in 2024 [355]. - Interest expense decreased by $4 million to $45 million for the year ended December 31, 2025, due to lower interest rates and reduced amounts outstanding on the Senior Credit Facility [369]. - The company recorded impairments of $401 million for cable certificates, $16 million for other indefinite-lived intangible assets, and $108 million for goodwill during the year ended December 31, 2025 [395]. Cash Flow and Liquidity - As of December 31, 2025, the company had a cash and cash equivalents balance of $416 million, with substantial investments in U.S. Treasury securities and other highly rated financial instruments [376][374]. - Net cash provided by operating activities increased to $370 million in 2025 from $278 million in 2024, driven by increased operating income [377][380]. - The company’s total material cash requirements as of December 31, 2025, amounted to $1.666 billion, with $275 million due within one year [373]. - Net cash flows used in investing activities were primarily related to capital expenditures of $224 million in 2025, compared to $193 million in 2024 [380]. - Financing activities in 2025 generated net cash of $202 million, mainly from a rights offering of $299 million, partially offset by net debt repayments of $88 million [381]. - The company expects to use approximately $290 million for net capital expenditures and $50 million for interest payments on outstanding debt in 2026 [382]. Corporate Developments - GCI Liberty completed a rights offering, distributing approximately 11,059,127 shares of GLIBK, raising about $300 million for general corporate purposes, including potential strategic acquisitions [317]. - GCI Holdings exited the video business and discontinued service for all video customers as of December 31, 2025 [318]. - The company expects to incur corporate overhead expenses of approximately $5 million annually related to being a standalone public company [315]. - The company is monitoring the impact of potential changes to the Universal Service Fund programs, which could materially affect revenue [332]. - GCI Holdings has faced legal challenges regarding the constitutionality of the FCC Universal Service Support Programs, with ongoing litigation that could impact operations [329]. Market Conditions - The Alaska economy, which GCI Holdings is heavily reliant on, is subject to recessionary pressures due to volatility in oil prices and inflation [324]. - The company has experienced inflation-sensitive cost pressures, including increased costs of materials and labor, impacting its margins [325]. - The number of cable modem subscribers decreased to 151,200 in 2025 from 155,700 in 2024, while wireless lines in service increased to 199,000 from 195,500 [348]. Taxation - The effective income tax rate for 2025 was 20%, down from 28% in 2024, primarily due to state income taxes and an impairment of goodwill that is not deductible for tax purposes [370]. Debt Structure - As of December 31, 2025, the company’s debt included $371 million in variable rate debt with a weighted average interest rate of 5.8% and $600 million in fixed rate debt with a weighted average interest rate of 4.8% [401].

Group 1 - Baron Discovery Fund focuses on long-term, competitively positioned companies with significant potential in untapped markets [1] - In Q4 2025, the Fund generated a return of 0.19%, underperforming the Russell 2000 Growth Index by 1.03 percentage points [1] - For the entire year, the Fund posted a return of 10.96%, while the Index returned 13.01% [1] - The top 10 holdings comprised 26.7% of the Fund's net assets, with cash making up 3.3% [1] - The Fund maintains strong optimism for a high-growth, low-inflation environment in 2026 [1] Group 2 - GCI Liberty, Inc. is highlighted as a key investment, providing a range of communication services [2] - GCI Liberty, Inc. had a one-month return of 1.92% and a three-month return of 9.50% [2] - As of January 3, 2026, GCI Liberty, Inc. stock closed at $38.17 per share, with a market capitalization of $1.519 billion [2] - GCI is the leading broadband cable provider in Alaska, with an estimated 70% to 80% market share of high-speed broadband [3] - Approximately 97% of Alaskans live within GCI's network footprint, and about 80% have access to high-speed tiers [3] - GCI operates its own mobile network, competing with AT&T and Verizon, with revenues evenly split between residential and business customers [3]

Core Viewpoint - Liberty Broadband Corporation is inviting shareholders and analysts to participate in a quarterly Q&A session following the fourth quarter earnings conference call of GCI Liberty, Inc, scheduled for February 11 at 11:15 a.m. E.T [1] Group 1 - The conference call will cover the financial performance and outlook of Liberty Broadband and GCI Liberty, along with other forward-looking matters [1] - Interested participants can join the call by phone using specific numbers and a confirmation code, and are advised to call at least 10 minutes prior to the start [2] - A webcast of the conference call will be available on Liberty Broadband's investor relations site, with a replay accessible after the call [3] Group 2 - Liberty Broadband's principal asset is its interest in Charter Communications [3]

Group 1 - GCI Liberty, Inc. will host a conference call on February 11, 2025, at 11:15 a.m. E.T. to discuss its fourth-quarter results [1] - A press release detailing the financial performance and outlook will be issued before market trading on the same day [1] - The conference call will include a Q&A session for management to address questions regarding GCI Liberty and Liberty Broadband Corporation [1] Group 2 - GCI Liberty, Inc. is comprised of its wholly owned subsidiary GCI, which is Alaska's largest communications provider [4] - GCI serves over 200 communities in Alaska, offering data, voice, and managed services to both consumer and business customers [4] - The company has invested $4.7 billion in its Alaska network and facilities over the past 45 years to enhance connectivity and address the digital divide [4]

Core Viewpoint - GCI Liberty, Inc. has successfully completed its rights offering, raising approximately $300 million for various corporate purposes, including potential strategic acquisitions and debt management [1][2]. Group 1: Rights Offering Details - The rights offering was fully subscribed, resulting in the issuance of 11,059,127 shares of Series C GCI Group common stock [2]. - Approximately 95% of the shares were subscribed through validly exercised basic subscription privileges, with remaining shares allocated pro rata to oversubscribing rightsholders [2]. - The shares purchased in the rights offering were issued on December 23, 2025, with refunds for unfulfilled oversubscriptions expected to be distributed around the same date [3]. Group 2: Company Background - GCI Liberty, Inc. is the parent company of GCI, LLC, which is Alaska's largest communications provider, serving over 200 communities [5]. - The company has invested $4.7 billion in its network and facilities in Alaska over the past 45 years, focusing on expanding and strengthening its statewide network infrastructure [5][6].

Core Points - GCI Liberty, Inc. announced the terms for a rights offering to distribute subscription rights to holders of its Series A, B, and C common stock to acquire Series C GCI Group common stock [1][2] - The rights distribution date is set for November 25, 2025, with a record date of November 24, 2025 [1][3] - Each holder will receive 0.3838 of a Series C GCI Group Right for each share held, with fractional rights rounded up [1][2] - The subscription price for each whole Series C GCI Group Right is $27.20, representing a 20% discount to the average trading price for the ten days ending November 21, 2025 [2] - The ex-dividend date is expected to be November 26, 2025, coinciding with the commencement of the rights offering [3] Company Overview - GCI Liberty, Inc. operates through its wholly owned subsidiary GCI, LLC, which is Alaska's largest communications provider [8][9] - GCI has invested $4.7 billion in its network and facilities over the past 45 years, aiming to enhance connectivity and close the digital divide in Alaska [9]

Group 1 - Madison Mid Cap Fund reported a return of 1.9% in Q3 2025, underperforming the Russell Midcap Index which increased by 5.3% [1] - The Information Technology sector led the performance for both the quarter and year-to-date [1] - The fund's top five holdings were highlighted as key picks for 2025 [1] Group 2 - GCI Liberty, Inc. (NASDAQ:GLIBK) experienced a one-month return of -6.56% and a three-month decline of 12.56%, closing at $33.75 per share with a market capitalization of $968.552 million on November 20, 2025 [2] - Madison Mid Cap Fund sold its holding in GCI Liberty, Inc. due to mediocre growth prospects and its small market capitalization, which was deemed immaterial to the portfolio [3] Group 3 - GCI Liberty, Inc. is not among the 30 most popular stocks among hedge funds, with a belief that certain AI stocks present greater upside potential and lower downside risk [4]

Core Points - GCI Liberty will participate in a Q&A session during the Liberty Media annual Investor Meeting on November 20, 2025, hosted by John Malone and Derek Chang [1][2] - GCI Liberty is a subsidiary of GCI, LLC, which is Alaska's largest communications provider, serving over 200 communities [3] - GCI has invested $4.7 billion in its network and facilities in Alaska over the past 45 years to enhance connectivity and address the digital divide [3] Company Information - GCI Liberty, Inc. trades on Nasdaq under the symbols GLIBA and GLIBK [4][8] - The company is involved in telecommunications, providing data, voice, and managed services [5] - GCI Liberty has announced a $300 million rights offering for Series C GCI Group common stock, with subscription rights distributed to holders of Series A, B, and C common stock [7]