分组1 - Lumen Technologies, Inc. reported a 4Q25 non-GAAP EPS of $0.23, exceeding analyst expectations by approximately $0.50 [1] - Revenue for the quarter was $3.04 billion, representing a year-over-year decline of about 8.7%, but still aligned with consensus estimates [1] 分组2 - The earnings beat indicates potential operational improvements or cost management strategies within the company [1]

Group 1 - The author has been active in the markets for several years, focusing primarily on long/short equities [1] - The author holds a Bachelor of Science Degree from Lehigh University, majoring in Finance and Accounting, with a minor in History [1] - The author has experience managing portfolios, including serving as the Head Portfolio Manager of the Investment Management Group at Lehigh University [1] Group 2 - The article emphasizes the importance of conducting proper due diligence before making any investment decisions [3] - Investors are encouraged to seek advice from brokers or financial advisers when considering investments [3] - The article states that past performance is not indicative of future results, highlighting the uncertainty in investment outcomes [4]

Core Insights - Lumen reported a revenue of $3.04 billion for Q4 2025, reflecting an 8.7% year-over-year decline, while EPS increased to $0.23 from $0.09 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $3.08 billion, resulting in a surprise of -1.4%, but the EPS exceeded expectations with a surprise of +209.52% compared to the consensus estimate of -$0.21 [1] Financial Performance Metrics - Total Business Segment Revenue was $2.43 billion, below the estimated $2.47 billion, marking an 8.8% decline year-over-year [4] - Total Mass Markets Revenue reached $616 million, slightly below the estimated $617.38 million, with an 8.1% year-over-year decrease [4] - Wholesale Business Segment Revenue was $661 million, compared to the estimated $672.36 million, reflecting a 7.7% decline year-over-year [4] - International and Other Revenue totaled $77 million, below the estimated $85.7 million, showing a significant year-over-year decline of 16.3% [4] - Mid-Market Enterprise Revenue was $472 million, slightly below the estimated $483.11 million, but showed a year-over-year increase of 4.4% [4] - Public Sector Revenue was $457 million, below the estimated $485.35 million, representing a 17.5% decline year-over-year [4] - Large Enterprise Revenue reached $758 million, exceeding the estimated $740.71 million, but still reflecting a 10.3% year-over-year decline [4] Stock Performance - Lumen's shares have returned +18% over the past month, outperforming the Zacks S&P 500 composite, which saw a +1.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

分组1 - Lumen reported quarterly earnings of $0.23 per share, exceeding the Zacks Consensus Estimate of a loss of $0.21 per share, and showing an increase from earnings of $0.09 per share a year ago, resulting in an earnings surprise of +209.52% [1] - The company posted revenues of $3.04 billion for the quarter ended December 2025, which was 1.4% below the Zacks Consensus Estimate and a decrease from $3.33 billion in the same quarter last year [2] - Lumen has surpassed consensus EPS estimates in all four of the last quarters and has topped consensus revenue estimates two times during the same period [2] 分组2 - Lumen shares have increased by approximately 14.9% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for investors [4] - The current consensus EPS estimate for the upcoming quarter is -$0.27 on revenues of $3.06 billion, and for the current fiscal year, it is -$0.98 on revenues of $11.49 billion [7] 分组3 - The Zacks Industry Rank indicates that the Diversified Communication Services sector is in the top 34% of over 250 Zacks industries, suggesting that companies in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8] - Another company in the same industry, BCE, is expected to report quarterly earnings of $0.46 per share, reflecting a year-over-year decline of -17.9%, with revenues projected at $4.71 billion, an increase of 2.7% from the previous year [9][10]

Financial Data and Key Metrics Changes - Total reported revenue declined 8.7% to $3.041 billion, with business segment revenue down 8.8% to $2.425 billion, impacted by one-time dark fiber and elevated public sector harvest revenue growth in the previous year [24][26] - Adjusted EBITDA was $767 million, with a margin of 25.2%, and free cash flow was negative $765 million, affected by a delay in a $400 million tax refund expected in the first half of 2026 [24][27] - The company reduced annual interest expense by nearly $500 million, with total debt now under $13 billion and net leverage reduced to below 4x [4][21][22] Business Line Data and Key Metrics Changes - North American enterprise revenue grew to 52% of total revenue, surpassing nurture and harvest revenues, indicating an improving business revenue mix [6][19] - The company reported strong performance in PCF sales, with total signed deals reaching nearly $13 billion, contributing $41 million in revenue for the fourth quarter and $116 million for the full year [25][72] - The NaaS business saw a 31% increase in fiber ports deployed, reflecting growing enterprise adoption of Lumen's programmable network [13] Market Data and Key Metrics Changes - North American business revenue, including wholesale, declined 8.6%, while international revenue fell 16.3%, primarily due to declines in Managed Services, VPN, and Voice [26] - The company expects organic business revenue declines to improve by roughly 75 basis points in 2026 compared to 2025, as it focuses on growth products [28] Company Strategy and Development Direction - The company aims to become the trusted network for AI, focusing on serving public and private enterprises and reducing capital intensity by over $1 billion through the divestiture of its fiber to the home business [5][9] - Lumen's three-pillar strategy includes building the AI backbone, cloudifying telecom, and expanding its connected ecosystem, with significant investments in network upgrades and partnerships [10][12][15] - The company is transitioning to a new reporting structure that separates strategic growth from legacy revenues, enhancing transparency and aligning with its enterprise-first strategy [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to business revenue growth by 2028, supported by a strong pipeline of PCF deals and improvements in the revenue mix [19][33] - The company remains cautiously optimistic about the market's ability to absorb changes in critical infrastructure, emphasizing the need for change management for customers [49] - Management highlighted the importance of structural changes in network architectures to align with customer needs in a multi-cloud, AI-first world [9][12] Other Important Information - The company has achieved over $400 million in run rate cost reductions, targeting $700 million by the end of 2026 as part of its modernization and simplification program [7][19] - Lumen has signed 16 Connected Ecosystem partnerships, yielding over 180 potential sales opportunities, enhancing its commercial reach [15] Q&A Session Summary Question: Can you share how the recent PCF deals may differ from previous ones regarding margins and returns? - The recent $2.5 billion deals have a similar economic profile to previous deals, as they utilize existing network conduit [38][39] Question: Can you provide insights on the guidance for 2028 business revenue growth? - Management is being conservative in their estimates due to the long-term nature of infrastructure changes, but they acknowledge the potential for upside as digital adoption accelerates [45][49] Question: How should we think about the pacing of EBITDA and cost items in 2026? - The company will provide more visibility on the impact of PCF sales on revenue and EBITDA at the upcoming Investor Day, with a focus on cost savings and modernization efforts [54][56] Question: What measures are being taken to avoid construction delays? - The company leverages its scale across the supply chain and workforce to ensure timely delivery, with favorable contracts and performance bonuses for faster execution [92][96]

Financial Data and Key Metrics Changes - Total reported revenue declined 8.7% to $3.041 billion, with business segment revenue down 8.8% to $2.425 billion [24] - Adjusted EBITDA was $767 million, with a margin of 25.2%, and free cash flow was negative $765 million [24][27] - Annual interest expense has been reduced by nearly $500 million in the last 12 months [21][22] Business Line Data and Key Metrics Changes - North American enterprise revenue grew to 52%, surpassing nurture and harvest revenues [6] - Total business grow revenue was roughly flat year-over-year and quarter-over-quarter, impacted by one-time revenue items [25] - The number of active customers grew by 29% quarter-over-quarter, and the number of NaaS fiber ports deployed increased by 31% [13] Market Data and Key Metrics Changes - North American business revenue declined 8.6%, with wholesale revenue down approximately 7.8% year-over-year [26] - International and other revenue declined 16.3%, primarily due to managed services, VPN, and voice declines [26] Company Strategy and Development Direction - The company aims to become the trusted network for AI, focusing on serving public and private enterprises [4] - A three-pillar strategy is being implemented to build the backbone for AI, cloudify telecom, and expand the connected ecosystem [9] - The company is transitioning from legacy revenue streams to strategic growth products, with a focus on digital services [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to business revenue growth by 2028 and total revenue growth by 2029 [18] - The company is cautiously optimistic about the market's ability to absorb changes in critical infrastructure due to the AI and Cloud 2.0 catalysts [50] - The future outlook remains positive, with expectations for improved margins and free cash flow as digital revenue increases [33] Other Important Information - The company closed the transaction with AT&T for $5.75 billion, using proceeds to pay down super priority bonds [20] - The company has achieved over $400 million in run rate cost reductions, targeting $700 million by the end of 2026 [19][29] Q&A Session Summary Question: Can you share how the recent PCF deals may differ from previous ones regarding margins and returns? - The structure of the recent $2.5 billion deals is similar to previous ones, as they utilize existing network conduit, maintaining a similar economic profile [39] Question: Can you provide insights on the guidance for 2028 business revenue growth? - Management is being cautiously optimistic about the market's ability to absorb changes, with a focus on gradual adoption and potential upside in revenue [50][51] Question: How should we think about the pacing of EBITDA growth in 2026? - The range for Adjusted EBITDA in 2026 is estimated to be $3.1 billion to $3.3 billion, indicating growth compared to 2025 [28][31]

Financial Data and Key Metrics Changes - Total reported revenue declined 8.7% to $3.041 billion, with business segment revenue down 8.8% to $2.425 billion [22][24] - Adjusted EBITDA was $767 million, with a margin of 25.2%, compared to approximately $1.052 billion in the year-ago quarter [24][25] - Free cash flow was negative $765 million, impacted by a delay in a $400 million tax refund expected in the first half of 2026 [25][26] Business Line Data and Key Metrics Changes - North American enterprise revenue grew slightly, driven by strength in IP, while overall North American business revenue declined 8.6% [24] - The business revenue mix improved, with 52% of North American enterprise revenue now coming from growth products, up from the mid-40% range in 2024 [17][22] - The company recognized revenue of approximately $41 million in Q4 and $116 million for the full year from nearly $13 billion in PCF deals [23][24] Market Data and Key Metrics Changes - Wholesale revenue declined approximately 7.8% year-over-year, in line with expectations, while international and other revenue declined 16.3% [24] - The company reported a strong performance in NaaS business, with active customers growing by 29% quarter-over-quarter and NaaS fiber ports deployed increasing by 31% [11][24] Company Strategy and Development Direction - The company aims to become the trusted network for AI, focusing on serving public and private enterprises [3][4] - A three-pillar strategy is being implemented to build the backbone for AI, cloudify telecom, and expand the connected ecosystem [7][10] - The company is transitioning from legacy revenue streams to strategic growth products, with a focus on digital services and programmable networks [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to business revenue growth by 2028 and total revenue growth by 2029 [16][26] - The company anticipates a significant reduction in capital intensity and an improvement in margins and free cash flow due to ongoing cost optimization efforts [30] - Management highlighted the urgent need for structural change in network architectures to align with customer needs in a multi-cloud, AI-first world [7][10] Other Important Information - The company closed the transaction with AT&T for $5.75 billion, using proceeds to pay down super priority bonds, reducing annual cash interest expense by an additional $300 million [18][19] - The company achieved over $400 million in run rate cost reductions in 2025, targeting $700 million by the end of 2026 [17][26] Q&A Session Summary Question: Can you share how the recent PCF deals may differ from previous ones regarding margins and returns? - The structure of the recent $2.5 billion deals is similar to previous ones, utilizing existing network conduit, thus maintaining a similar economic profile [34][35] Question: What is the timing of CapEx investments and cash receipts relative to the recent deals? - The company expects a significant reduction in capital intensity, with a projected CapEx intensity profile roughly half of the previous year [36][37] Question: Can you provide insights on the guidance for 2028 business revenue growth? - Management remains cautiously optimistic about growth, acknowledging the need for structural change in the industry while projecting conservative estimates [41][45] Question: How should we think about the EBITDA guide for 2026? - The range of $3.1 billion-$3.3 billion for 2026 is expected to reflect growth compared to 2025, though not every quarter will show growth [93]

Core Insights - AIGH Capital Management LLC has completely sold its stake in Lumen Technologies, with the transaction valued at approximately $15.61 million based on quarterly average pricing [1][2]. Company Overview - Lumen Technologies is a prominent provider of telecommunications and technology solutions, utilizing a vast fiber network and advanced services to facilitate digital transformation for businesses and consumers [6]. - As of February 2, 2026, Lumen's stock price was $8.82, with a market capitalization of $9.05 billion and a total revenue of $12.69 billion over the trailing twelve months (TTM) [4]. - The company reported a net income loss of $1.65 billion (TTM) [4]. Recent Performance - Lumen Technologies' stock has increased by 78.5% over the past year, significantly outperforming the S&P 500 by 64.2 percentage points [8]. - The company has successfully leveraged its fiber network to support major artificial intelligence (AI) companies with data center connectivity, contributing to its recent stock surge [10]. Strategic Moves - Lumen Technologies has made strategic investments in fiber and cloud capabilities to enhance its competitive position in the evolving communications and enterprise markets [6]. - The company sold its mass market fiber business to AT&T for $5.75 billion, which has helped fund its new buildout initiatives [10].

February 3, 2026 Fourth Quarter 2025 Results Non-GAAP Measures This presentation includes certain historical and forward-looking non-GAAP financial measures, including but not limited to adjusted EBITDA, adjusted EBITDA margin, and free cash flow, each excluding the effects of special items, and adjustments to GAAP and other non-GAAP measures to exclude the effect of special items. In addition to providing key metrics for management to evaluate the company's performance, we believe these measurements assist ...

Lumen Technologies Reports Solid Fourth Quarter and Full Year 2025 Results; Completes AT&T Transaction, Strengthening Balance Sheet and Advancing Enterprise Focus Delivers revenue, Adjusted EBITDA and free cash flow in line with expectations as Lumen sharpens focus on high-value enterprise growth Signs additional $2.5B in PCF contracts and grows NaaS customer base, showing continued momentum on company's return to growth DENVER, Feb. 3, 2026 — Lumen Technologies (NYSE: LUMN) reported results for the fourth ...