Financial Performance - Liberty Broadband's net loss from continuing operations for the year ended December 31, 2025, was $2.331 billion, compared to a net income of $796 million in 2024[345]. - Charter's revenue decreased by $311 million to $54,774 million for the year ended December 31, 2025, primarily due to lower customers and higher seamless entertainment allocation[356]. - Consolidated operating loss improved by $14 million for the year ended December 31, 2025, compared to 2024[348]. - Net cash provided by (used in) operating activities was $(327) million for the year ended December 31, 2025, compared to $(174) million in 2024[369]. - The effective income tax rate increased to 28% for the year ended December 31, 2025, compared to 19% in 2024[363]. - Share of losses from affiliate increased by $4,385 million during the year ended December 31, 2025, primarily due to a $4.4 billion impairment loss on equity method investment in Charter[352]. Expenses and Costs - General and administrative expenses decreased by $4 million to $31 million in 2025, primarily due to reduced professional service fees related to the Transactions[346]. - Stock-based compensation expense decreased by $10 million to $5 million in 2025, attributed to decreased grant activity under the Merger Agreement[347]. - Operating costs and expenses, excluding depreciation and amortization, decreased by $139 million during the year ended December 31, 2025[357]. - Interest expense decreased by $35 million during the year ended December 31, 2025, due to lower interest rates on variable rate debt[351]. - Interest expense and preferred stock dividends total $1,062 million, with $92 million due within one year[376]. Investments and Financing - Net cash provided by (used in) investing activities was $1,207 million for the year ended December 31, 2025, primarily related to the sale of Charter Class A common stock[370]. - Net cash flows used in financing activities were primarily to settle the 3.125% Debentures due 2054 for $952 million during the year ended December 31, 2025[371]. - Total material cash requirements amount to $2,997 million, with $1,755 million in debt due within one year[376]. - The company's variable rate debt amounts to $790 million with a weighted average interest rate of 5.5%, while fixed rate debt is $965 million with a weighted average interest rate of 3.1%[388]. Market and Risk Factors - The company is exposed to market risk from adverse changes in stock prices and interest rates, which could impact future earnings[385]. - The company evaluates declines in fair value of equity method investments to determine if they are other than temporary, which could lead to impairment charges[381]. - The company has established policies and procedures to manage market risks associated with its financial activities[385]. - The company’s investment in Charter is publicly traded and subject to market risk not directly reflected in financial statements[388]. - The company’s total debt is expected to vary due to future requirements and market conditions[386]. Corporate Structure and Ownership - Liberty Broadband controls 25.01% of the aggregate voting power of Charter, with an economic ownership interest of approximately 32.8% as of December 31, 2025[322][334]. - The GCI Divestiture was completed on July 14, 2025, with Liberty Broadband distributing 0.20 shares of GCI Liberty's common stock for each share of Liberty Broadband common stock held[329]. - The corporate level tax liability from the GCI Divestiture is estimated to be significantly less than $420 million, with Charter bearing the tax liability upon completion of the Combination[327]. Business Operations - Charter added 1.9 million mobile lines during the year ended December 31, 2025, while improving Internet and video losses compared to the prior year[338]. - Charter spent $2.2 billion on its subsidized rural construction initiative in 2025, activating approximately 483,000 subsidized rural passings[342]. - Charter's revenue is primarily derived from monthly fees, with additional income from installation fees and advertising sales, focusing on customer retention and cross-selling[335]. - Charter's network evolution initiative aims to deliver symmetrical and multi-gigabit speeds across its entire footprint, enhancing service offerings[342]. Accounting and Estimates - The company’s accounting estimates and assumptions are critical to its financial statements, affecting reported amounts of assets and liabilities[377]. - The company recorded a $4.4 billion impairment loss on its equity method investment in Charter due to a sustained decline in share price[383].

Before going into the investment thesis for this article, a quick introduction may be useful about Liberty Broadband Corporation ( LBRDA )( LBRDB )( LBRDK ), especially for readers whoTMT sector professional. Over 20 years of experience working in the sector in Europe and outside Europe. Decade of investing experience to keep in close touch with companies and themes that are relevant for my work. Education in Corporate Finance.Companies where I worked are among others: KPN, Chellomedia, Liberty Global, UPC ...

Core Insights - The performance of the Southeastern Small-Cap Fund has been mixed, with the underlying developments of holdings being better than stock price returns, particularly in a challenging market environment [2][3] - The fund's portfolio has a lower percentage of big winners compared to the Russell 2000, with only 15% of its holdings up an average of 30% compared to over 35% of the index's holdings up 70%+ [3] - The fund has maintained a strong position in the mid-range performance category, outperforming the Russell 2000 in that segment [4] - The fund's exposure to decliners was limited, with only 10% of the portfolio in this category, resulting in lower average losses compared to the index [5] Performance Analysis - The fund's average performance in the -20% to +20% return bucket was better than the Russell 2000's 0% return, with key holdings like White Mountains, CNX, and Rayonier contributing positively [4] - The fund's cash position and stable investments like Kodak initially provided safety but later became performance headwinds [6] - The fund's leverage rules have been effective in avoiding pitfalls, and adjustments to the overweight rule have been made to enhance performance [7][8] Notable Contributors - Beclé, a tequila and whiskey manufacturer, was a significant contributor due to its undervaluation and strong market position [9] - GCI Liberty, a communications company in Alaska, benefited from its unique market position and insider support from John Malone [10] - Graham Holdings showed strong performance due to growth in its education and healthcare segments [11] - Mattel has positioned itself well with strong brand power and a robust balance sheet, leading to significant stock repurchases [12] - Oscar Health experienced above-market growth but was exited due to emerging industry risks [14] Notable Detractors - Boston Beer faced challenges due to declining volumes in its major brands, although management is actively addressing these issues [15] - Clearwater Paper struggled with a weak market for solid bleached sulfate paperboard, but management is focusing on share repurchases [16] - Park Hotels & Resorts was impacted by macroeconomic concerns affecting leisure travel, leading to a decision to exit the position [18] Portfolio Activity - The fund made seven new purchases during the year, including GCI Liberty and Beclé, while exiting eight positions, including Kodak and Oscar Health [20][19] Outlook - The fund anticipates continued engagement through research perspectives and podcasts, focusing on quality investments amid market volatility [21] - The fund's strategy emphasizes owning resilient, free cash flow-generating assets to navigate market fluctuations effectively [22]

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]

Core Insights - Baupost Group's latest 13F filing reveals a highly selective and concentrated portfolio, focusing on durable businesses with long-term cash generation potential [1][2] Investment Moves - **Restaurant Brands International (QSR)**: Increased by 4,203,300 shares to 8,252,862 shares, representing a $529.3 million position (11.05% of the portfolio). This is now Baupost's largest equity holding, indicating a belief in significant mispricing relative to its stable franchise model and cash flows [3][4] - **Elevance Health (ELV)**: Increased by 703,000 shares to 1,319,000 shares, totaling a $426.2 million position (8.90%). The increase suggests confidence in the company's predictable cash flows and resilience in a politically noisy sector [5][6] - **Union Pacific (UNP)**: Newly established position with 1,496,204 shares, valued at $353.7 million (7.38%). The railroad's high barriers to entry and pricing power align with Baupost's focus on downside protection [7][8] - **Alphabet (GOOG)**: Reduced by 775,850 shares to 1,858,138 shares, now a $452.6 million position (9.45%). The reduction reflects portfolio risk management rather than a loss of conviction [9] - **CRH plc (CRH)**: Trimmed by 442,000 shares to 3,383,395 shares, valued at $405.7 million (8.47%). The trim indicates a disciplined approach to valuation, despite the long-term thesis remaining intact [10] - **Full Exits**: Baupost exited several positions entirely, including Viasat, Liberty Broadband, ICON plc, and Amcor, signaling a shift in risk-reward balance [11][12] Strategic Focus - The quarter was characterized by conviction-driven capital redeployment into high-confidence ideas, particularly in sectors like restaurants, railroads, healthcare, and materials [13][14] - Trimming positions like GOOG and CRH reflects a focus on risk management and valuation discipline rather than a bearish outlook [15] - The top 10 positions account for over 75% of disclosed assets, emphasizing Baupost's belief in concentration as a strategy against ignorance [16] - The portfolio prioritizes downside protection, with upside driven by business durability rather than macroeconomic bets [17]

Core Points - Liberty Broadband Corporation's Board of Directors declared a quarterly cash dividend of $0.43750001 per share for its Series A Cumulative Redeemable Preferred Stock [1] - The dividend will be payable in cash on January 15, 2026, to holders of record as of December 31, 2025 [1] Company Overview - Liberty Broadband Corporation's principal asset is its interest in Charter Communications [2]

Financial Performance - Liberty Broadband's operating income for the three months ended September 30, 2025, was a loss of $8 million, compared to a loss of $11 million in the same period of 2024[152]. - The net earnings from continuing operations for the nine months ended September 30, 2025, were $845 million, compared to $523 million for the same period in 2024[152]. - Liberty Broadband's share of earnings from its affiliate, Charter, was $295 million for the three months ended September 30, 2025, down from $346 million in the same period of 2024[152]. - Net earnings from continuing operations were $255 million and $845 million for the three and nine months ended September 30, 2025, respectively[175]. - Operating income decreased by $204 million and $82 million for the three and nine months ended September 30, 2025, respectively[167]. Revenue and Expenses - Revenue decreased by $123 million during the three months ended September 30, 2025, while remaining relatively constant for the nine months ended September 30, 2025[164]. - Selling, general and administrative expenses increased by $9 million for the three and nine months ended September 30, 2025, compared to the prior year periods[154]. - Operating expenses, excluding depreciation and amortization, increased by $66 million and $84 million for the three and nine months ended September 30, 2025, respectively[165]. - Other expenses, net decreased by $58 million and $123 million for the three and nine months ended September 30, 2025, respectively[168]. - Stock-based compensation expense decreased by $2 million and $7 million for the three and nine months ended September 30, 2025, respectively[155]. Investments and Financing Activities - Charter spent $582 million on its subsidized rural construction initiative in the third quarter of 2025, activating approximately 124,000 subsidized rural passings[150]. - Net cash provided by investing activities was $907 million for the nine months ended September 30, 2025, primarily related to the sale of Charter Class A common stock[181]. - During the nine months ended September 30, 2024, net cash flows used in financing activities included repurchases of approximately $300 million in 3.125% Debentures due 2053 and net repayments of approximately $670 million on the Margin Loan Facility[185]. - The company issued $860 million in 3.125% Exchangeable Senior Debentures due 2054, partially offsetting cash flows used in financing activities[185]. - Net cash flows used in financing activities also included repurchases of Liberty Broadband Series A and Series C common stock totaling $89 million[185]. Corporate Structure and Divestitures - The GCI Divestiture was completed on July 14, 2025, resulting in GCI Liberty becoming an independent, publicly traded company[144]. - Liberty Broadband controls 25.01% of the aggregate voting power of Charter, which is a significant equity method investment[134]. - The corporate level tax liability from the GCI Divestiture is estimated to be significantly less than $420 million[138]. Market Risks and Cash Management - The company is exposed to market risk due to changes in stock prices and interest rates, which could affect fair values, cash flows, and future earnings[187]. - The company manages interest rate exposure by maintaining a mix of fixed and variable rate debt to mitigate risks[188]. - As of September 30, 2025, the company has $840 million in variable rate debt with a weighted average interest rate of 5.9% and $965 million in fixed rate debt with a weighted average interest rate of 3.1%[189]. - Projected cash uses for the remainder of 2025 include approximately $20 million for interest payments and approximately $3 million for dividends on Liberty Broadband preferred stock[186]. - Corporate cash and other available sources of liquidity are expected to cover corporate expenses for the foreseeable future[186].

Core Points - The call includes forward-looking statements as per the Private Securities Litigation Reform Act of 1995, with actual results potentially differing due to various risks and uncertainties [1] - GCI Liberty will discuss non-GAAP financial measures such as adjusted OIBDA, adjusted OIBDA margin, and free cash flow, with definitions and reconciliations available in the earnings press release [2] - Key executives participating in the call include Ron Duncan, CEO of GCI Liberty, and Brian Wendling, Chief Accounting and Principal Financial Officer [3]

Core Viewpoint - John Malone, the longtime chairman of Liberty Media and Liberty Global, is expected to step down from both positions, marking a significant transition in the media industry [1][2]. Company Developments - Malone has been consolidating control and divesting for some time, indicating a strategic shift in his involvement with the companies he has led [2]. - Liberty Media, which includes Formula 1, and Liberty Global, a European telecom and cable company, are both impacted by Malone's decision to step down [2]. Industry Impact - Malone remains influential in the media industry despite stepping down, as he continues to engage in discussions and decisions related to various media topics [3]. - His departure from the board of Warner Brothers Discovery highlights a broader trend of leadership changes within major media companies [3].

Group 1 - The article discusses Liberty Broadband's pending merger with Charter Communications, highlighting the importance of distinguishing it from Charter's other merger activities [1] - The author, Max Greve, has a diverse academic background and writes on various topics including stock market trends and macroeconomic issues [1] Group 2 - There is a disclosure regarding the author's long position in Verizon (VZ) and T-Mobile (TMUS), indicating a personal investment interest [2] - The article emphasizes that past performance does not guarantee future results and that no specific investment advice is being provided [3]