Financial Performance - Operating revenue for the year ended December 31, 2024, was $13.1 billion, a decrease of 10% from $14.6 billion in 2023[362]. - The net loss for 2024 was $55 million, compared to a net loss of $10.3 billion in 2023, indicating a substantial improvement in financial performance[362]. - The company recorded a basic and diluted loss per common share of $0.06 for 2024, a significant recovery from a loss of $10.48 per share in 2023[362]. - Comprehensive income for 2024 was $32 million, compared to a comprehensive loss of $10,009 million in 2023[365]. - The accumulated deficit at the end of 2024 was $17,962 million, slightly higher than $17,907 million at the end of 2023[374]. - Total stockholders' equity increased to $464 million in 2024 from $417 million in 2023, reflecting improved financial stability[374]. - The company recorded $348 million in net gain on early retirement of debt for 2024, compared to $618 million in 2023[362]. - Cash provided by operating activities increased to $4,333 million in 2024, up from $2,160 million in 2023[370]. - Long-term debt decreased to $17,494 million in 2024 from $19,831 million in 2023, indicating a reduction in leverage[368]. - Total current assets decreased to $4,394 million in 2024 from $4,775 million in 2023, primarily due to a reduction in cash and cash equivalents[368]. Debt and Financing - As of December 31, 2024, total assets amounted to $33,496 million, a decrease from $34,018 million in 2023[33]. - Total long-term debt decreased to $17,906 million from $19,988 million, indicating a reduction of approximately 10.4%[33]. - The company has approximately $737 million of unused borrowing capacity under its revolving credit facilities[161]. - Lumen Technologies, Inc. has approximately $2.7 billion in debt owed to Level 3 Financing, Inc., including $1.2 billion under a secured revolving loan and $1.5 billion under an unsecured revolving loan[166]. - A substantial portion of Lumen Technologies, Inc.'s funded indebtedness has been asserted to violate certain debt covenants, increasing the risk of future claims from creditors[172]. - The company's complex debt structure may impact the rights of its investors, with roughly three-quarters of its debt guaranteed by principal domestic subsidiaries[165]. - Lumen Technologies, Inc. relies heavily on its subsidiaries for cash flow, which is necessary to meet its long-term debt obligations[176]. - Lumen Technologies, Inc. incurred substantial transaction expenses and agreed to higher interest levels and more restrictive debt covenants during its 2024 debt transactions, which may adversely affect its financial performance[174]. Operational Challenges - The company faces challenges in integrating and modernizing existing applications and systems, which could negatively affect service delivery and operational cost reduction projections[110]. - The company is experiencing challenges in providing transition services to purchasers of divested operations, which may lead to disputes and increased costs[184]. - The company continues to face pricing pressure due to competition from large communications companies and systems integrators offering high-speed fiber services[62]. - Competitive pressures have commoditized pricing for some products and services, leading to downward pressure on market pricing[115]. - The company must accurately predict and respond to technological changes to remain competitive, as failure to do so could adversely impact business and financial performance[118]. - The company is vulnerable to outages in its network and various platforms, which could disrupt operations and lead to customer loss and regulatory fines[131]. - The company faces significant competition for skilled employees, exacerbated by a relatively low stock trading price, which diminishes the attractiveness of equity incentive compensation programs[119]. - The company has experienced a prolonged systemic decline in local voice, long-distance voice, network access, and private line revenues, leading to declining consolidated revenues for an extended period[132]. Regulatory and Compliance Issues - The company must comply with various data privacy laws, including GDPR in the EU, which could significantly impact operations if violated[93]. - The company’s overseas operations are subject to various regulations that may affect pricing and service delivery[95]. - The company is subject to extensive regulatory frameworks that could create operational or compliance costs, impacting profitability[143]. - Media reports regarding the company’s legacy infrastructure have led to regulatory inquiries and potential compliance costs[159]. - The company has been involved in various legal proceedings that could have a material adverse effect on its business and financial condition[152]. - In mid-2024, a federal appellate court ruled that the FCC's universal service funding system was unlawful, which may impact the company due to pending judicial and legislative proceedings[88]. Employee and Workforce Dynamics - The company had approximately 25,000 employees worldwide, with around 3,400 located outside the U.S.[36]. - Approximately 21% of the U.S. workforce was represented by a union as of December 31, 2024[42]. - Over half of the company's employees work fully from home, which may impair the collaborative and innovative culture and lower workforce productivity[120]. - The company has approximately 21,000 active employee participants in its benefit plans and 52,000 individuals eligible for post-retirement healthcare benefits, with significant underfunding in its domestic pension plans[178]. - Approximately 21% of the company’s employees are represented by labor unions, which could lead to disruptions if collective bargaining agreements are not successfully negotiated[156]. Strategic Initiatives - The company is focused on enhancing its digital self-service ordering platforms and expanding product offerings to meet customer needs[37]. - The Quantum Fiber buildout project aims to expand fiber optic infrastructure to provide services to several million additional urban and suburban locations[56]. - The company’s Quantum Fiber buildout initiatives are part of its strategy to enhance network capacity and reliability[63]. - The company is focusing on building a digital networking services ecosystem to meet the growing demand for higher transmission speeds and advanced networking services[113]. - The company’s sales and marketing approach includes a focus on solving complex customer problems with advanced technology and network solutions[67]. - The company has exceeded its 2018-2025 science-based GHG emissions-reduction targets ahead of schedule[50]. Market and Economic Conditions - The company faces risks from unfavorable economic conditions, including potential impacts from trade wars, pandemics, and political instability[186]. - The company faces risks related to high inflation, which could lead to lower revenue, reduced profit margins, and increased interest costs[181]. - The company faces risks associated with severe weather events, which have previously disrupted operations and could lead to substantial damages and lost revenues[139]. - Climate changes may increase the frequency of natural disasters, potentially disrupting the supply chain and increasing operational costs[140]. - Cyber-attacks pose a constant threat, with incidents in 2023 and 2024 highlighting vulnerabilities, although no material adverse impact on operations has been reported[126][129]. - The company relies on key suppliers and vendors for network infrastructure, and disruptions in these relationships could materially affect operations[133][135].

Group 1 - Lumen Technologies' CFO Chris Stansbury will participate in several upcoming investor conferences, including the JP Morgan Global High Yield & Leveraged Finance Conference on February 25 and the Raymond James Annual Institutional Investors Conference on March 3 [1][3] - The company emphasizes its role in enhancing business growth by connecting people, data, and applications, positioning itself as a trusted network for AI [2] - Lumen's services include metro connectivity, long-haul data transport, edge cloud, security, managed services, and digital platform capabilities, catering to current customer needs and future developments [2] Group 2 - Live webcasts of the investor presentations will be accessible on the Lumen Investor Relations website [1][3] - Additional news and insights about Lumen Technologies can be found on various social media platforms and their news website [3]

Core Insights - Lumen Technologies, Inc. reported adjusted earnings of 9 cents per share for Q4 2024, exceeding the Zacks Consensus Estimate of a loss of 8 cents and up from 8 cents in the prior-year quarter [1] - Total revenues for Q4 2024 were $3.329 billion, a decline of 5.4% year over year, primarily due to divestitures and the sale of the CDN business, but still beating the Zacks Consensus Estimate by 3.4% [2] - For the full year 2024, total revenues were $13.1 billion, down 10% from 2023 [3] Revenue and Segment Performance - Business revenues fell 5.1% to $2.659 billion, Large Enterprises revenues dropped 5.5% to $845 million, and Mid-Market Enterprise revenues declined 9.8% to $452 million [7] - Public Sector revenues increased by 11% to $554 million, while North America's Enterprise Channels revenues decreased by 2.2% to $1.851 billion [7] - Revenues from Mass Markets were down 6.3% year over year to $670 million [9] Strategic Developments - Lumen secured $8.5 billion in PCF deals in 2024, driven by AI-fueled connectivity demand, partnering with major tech companies like Microsoft, Amazon, Google Cloud, and Meta Platforms [4] - The company is focused on "cloudifying" telecom and promoting its network-as-a-service solutions [4] Financial Health - Lumen repaid $1.6 billion of debt in 2024 and plans to eliminate $1 billion in operating expenses by 2027, expecting a run-rate cost benefit of over $250 million in the current year [5] - Total operating expenses decreased by 40% year over year to $3,175 million, with operating income at $154 million compared to a loss of $1.776 billion in the prior-year quarter [11] Cash Flow and Liquidity - In Q4, Lumen generated $688 million of net cash from operations, down from $784 million in the prior-year quarter, with free cash outflow of $174 million compared to free cash flow of $50 million in the prior-year quarter [12] - As of December 31, 2024, the company had $1.889 billion in cash and cash equivalents and $17.494 billion in long-term debt [13] Future Outlook - For 2025, Lumen expects adjusted EBITDA between $3.2 billion and $3.4 billion, with capital expenditures projected between $4.1 billion and $4.3 billion [14] - The company anticipates EBITDA to rebound significantly in 2026, exceeding $3.5 billion, with growth expected thereafter [14] Market Performance - Following better-than-expected results, LUMN stock rose by 10.7% in pre-market trading, with shares gaining 305.2% over the past year compared to the Technology Services industry's growth of 67% [6]

Shares of Lumen Technologies (LUMN -4.07%) are down Wednesday. The firm's stock lost 3.4% as of 1 p.m. ET, but was down as much as 5.8% earlier in the day. The loss comes as the S&P 500 (^GSPC 0.15%) gained 0.1% and the Nasdaq Composite (^IXIC -0.09%) lost 0.1%.Lumen, a telecom company that provides data center networking technology, reported earnings on Tuesday. While it was a mostly positive quarter, too many unknowns remain, and investors remain cautious.The numbersLumen reported a Q4 net income of $85 m ...

Chris Lau is an individual investor and economist with 30 years of experience covering life science, technology, and dividend-growth income stocks. He has degrees in Microbiology and Economics. Chris runs the investing group DIY Value Investing where he shares his top stock picks of undervalued stocks with catalysts for upside, dividend-income recommendations with quant and payment calendar tracking, high upside plays, and research requests to help you become a better do-it-yourself investor. Learn more.Top ...

Core Insights - Lumen reported $3.33 billion in revenue for Q4 2024, a year-over-year decline of 5.4%, but exceeded the Zacks Consensus Estimate by 3.36% [1] - The company's EPS for the quarter was $0.09, a significant increase of 212.50% compared to the consensus estimate of -$0.08 [1] Revenue Breakdown - Total Business Segment Revenue was $2.66 billion, surpassing the average estimate of $2.55 billion, but reflecting a year-over-year decline of 4.6% [4] - Total Mass Markets Revenue reached $670 million, slightly above the estimate of $669.32 million, marking an 8.1% decrease year-over-year [4] - Wholesale Business Segment Revenue was $716 million, exceeding the average estimate of $696.68 million, with a year-over-year decline of 3.4% [4] - International and Other Revenue totaled $92 million, slightly below the average estimate of $93 million [4] - Mid-Market Enterprise Revenue was $452 million, below the estimate of $469.47 million, reflecting a year-over-year decline of 7.9% [4] - Public Sector Revenue was $554 million, significantly above the estimate of $465.10 million, showing an 11.9% increase year-over-year [4] - Large Enterprise Revenue was $845 million, slightly below the estimate of $826.71 million, with a substantial year-over-year decline of 20.4% [4] Stock Performance - Lumen's shares have returned -16.3% over the past month, contrasting with the Zacks S&P 500 composite's +1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Reconciliations of non-GAAP financial measures to the most comparable GAAP measures are included in the financial schedules to the Company's accompanying earnings release. Reconciliation of information and additional non-GAAP historical financial measures that may be discussed during the call, along with further descriptions of non-GAAP financial measures, will be available in the Investor Relations portion of the company's website at http://ir.lumen.com. Non-GAAP measures are not presented to be replacemen ...

Core Insights - Lumen (LUMN) reported quarterly earnings of $0.09 per share, exceeding the Zacks Consensus Estimate of a loss of $0.08 per share, and showing an earnings surprise of 212.50% [1] - The company posted revenues of $3.33 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.36%, although this represents a decline from $3.52 billion in the same quarter last year [2] - Lumen has surpassed consensus EPS estimates two times over the last four quarters and topped consensus revenue estimates three times during the same period [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.25 on revenues of $3.11 billion, and for the current fiscal year, it is -$0.94 on revenues of $12.31 billion [7] - The estimate revisions trend for Lumen is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Market Performance - Lumen shares have declined approximately 8.3% since the beginning of the year, contrasting with the S&P 500's gain of 1.9% [3] - The outlook for the industry, particularly the Technology Services sector, is currently in the top 36% of over 250 Zacks industries, suggesting a favorable environment for stocks in this category [8]

Adjusted EBITDA and Adjusted EBITDA excluding Special Items for the fourth quarter and full year 2023 includes $14 million and $125 million, respectively, from the EMEA business (defined below), divested on Nov. 1, 2023 and $10 million and $56 million, respectively, from those of our Content Delivery Network ("CDN") customer contracts sold Oct. 10, 2023, which will not recur in subsequent periods. The net post-closing financial impact of actual amounts received or paid by the Company under its post-closing ...

Core Insights - Lumen Technologies made significant progress in strengthening its financial position and transforming corporate functions, aiming to support the AI economy in 2025 [2][7] - The company reported a net income of $85 million for Q4 2024, a substantial recovery from a net loss of $1.995 billion in Q4 2023, which included a non-cash goodwill impairment charge [7][23] - Lumen's total revenue for Q4 2024 was $3.329 billion, down 5% from $3.517 billion in Q4 2023, with a full-year revenue decline of 10% from $14.557 billion in 2023 to $13.108 billion in 2024 [23][37] Financial Performance - Adjusted EBITDA for Q4 2024 was $1.052 billion, a decrease of 4% from $1.099 billion in Q4 2023, while full-year Adjusted EBITDA fell 15% from $4.628 billion in 2023 to $3.939 billion in 2024 [7][37] - The company reported a negative free cash flow of $(174) million for Q4 2024, compared to a positive free cash flow of $50 million in Q4 2023 [25][37] - Lumen's capital expenditures for Q4 2024 were $915 million, an increase of 11% from $821 million in Q4 2023, with full-year capital expenditures rising from $3.100 billion in 2023 to $3.231 billion in 2024 [37][41] Business Segments - Revenue from the Large Enterprise segment was $845 million in Q4 2024, down 5% from $894 million in Q4 2023, while full-year revenue decreased 7% from $3.618 billion in 2023 to $3.379 billion in 2024 [6][19] - The Mid-Market Enterprise segment saw a 10% decline in Q4 2024 revenue to $452 million, and a full-year decrease of 8% to $1.887 billion [6][19] - Public Sector revenue increased by 11% in Q4 2024 to $554 million, with a 3% increase for the full year to $1.849 billion [6][19] Liquidity and Outlook - As of December 31, 2024, Lumen had cash and cash equivalents of $1.889 billion and plans to redeem approximately $202 million of unsecured senior notes by February 15, 2025 [26][38] - The company updated its financial outlook for 2025, projecting Adjusted EBITDA between $3.2 billion and $3.4 billion, and Free Cash Flow between $700 million and $900 million [27][28]