[Overview and Key Highlights](index=1&type=section&id=Overview%20and%20Key%20Highlights) Lumen Technologies reported better-than-expected Q1 2025 results, driven by operational excellence and strategic initiatives, despite a net loss of $201 million - CEO Kate Johnson attributed better-than-expected financial results to operational excellence and emphasized innovation on the fiber network for value creation[5](index=5&type=chunk) - Strategic initiatives included a partnership with Google for direct fiber access to Google Cloud, continued NaaS port adoption, and a term loan refinancing to strengthen the balance sheet[6](index=6&type=chunk) Q1 2025 Key Financial Metrics | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net (Loss) Income | $(201) million | $57 million | | Diluted (Loss) Earnings per Share | $(0.20) | $0.06 | | Adjusted EBITDA (Excl. Special Items) | $929 million | $977 million | | Free Cash Flow (Excl. Special Items) | $354 million | $518 million | [Financial Performance](index=2&type=section&id=Financial%20Performance) Lumen's Q1 2025 total revenue declined 3% year-over-year to $3.182 billion, resulting in a net loss of $201 million and a 5% decrease in Adjusted EBITDA [Revenue Analysis](index=2&type=section&id=Revenue%20Analysis) Total revenue for Q1 2025 decreased 3% year-over-year to $3.182 billion, with declines across most business segments and product categories, except for Public Sector and 'Grow' products Total Revenue Trend | Period | Total Revenue ($ in millions) | YoY Change | | :--- | :--- | :--- | | Q1 2025 | $3,182 | -3% | | Q1 2024 | $3,290 | N/A | Revenue by Sales Channel (YoY Change) | Sales Channel | Q1 2025 Revenue ($M) | YoY Change | | :--- | :--- | :--- | | Large Enterprise | $737 | -4% | | Mid-Market Enterprise | $513 | -11% | | Public Sector | $483 | +15% | | Wholesale | $705 | -4% | Business Revenue by Product Category (YoY Change) | Product Category | Q1 2025 Revenue ($M) | YoY Change | | :--- | :--- | :--- | | Grow | $1,136 | +7% | | Nurture | $666 | -14% | | Harvest | $534 | -8% | [Profitability Analysis](index=2&type=section&id=Profitability%20Analysis) Q1 2025 profitability significantly declined, reporting a net loss of $201 million compared to a net income of $57 million in Q1 2024, with Adjusted EBITDA falling 5% YoY Q1 2025 Profitability Metrics | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net (Loss) Income | $(201) million | $57 million | | Net (Loss) Income Margin | (6.3)% | 1.7% | | Adjusted EBITDA (Excl. Special Items) | $929 million | $977 million | | Adjusted EBITDA Margin (Excl. Special Items) | 29.2% | 29.7% | [Cash Flow and Liquidity](index=3&type=section&id=Cash%20Flow%20and%20Liquidity) Free Cash Flow, excluding special items, decreased to $354 million in Q1 2025, while the company maintained $1.9 billion in cash and successfully refinanced a $2.4 billion term loan - Free Cash Flow, excluding Special Items, was **$354 million** in Q1 2025, a decrease from **$518 million** in Q1 2024[11](index=11&type=chunk) - As of March 31, 2025, Lumen held **$1.9 billion** in cash and cash equivalents, having successfully refinanced its **$2.4 billion** term loan at lower rates with extended maturity[12](index=12&type=chunk) [Operating Metrics](index=11&type=section&id=Operating%20Metrics) Mass Markets fiber broadband subscribers grew to 1.116 million in Q1 2025, but total broadband subscribers decreased to 2.508 million due to declines in copper-based subscribers Mass Markets Broadband Subscribers (in thousands) | Subscriber Type | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Fiber broadband | 1,116 | 1,077 | 952 | | Other broadband | 1,392 | 1,469 | 1,758 | | **Total broadband** | **2,508** | **2,546** | **2,710** | Mass Markets Broadband Enabled Units (in millions) | Unit Type | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Fiber broadband | 4.3 | 4.2 | 3.8 | | Other broadband | 17.7 | 17.8 | 18.0 | | **Total enabled units** | **22.0** | **22.0** | **21.8** | [2025 Financial Outlook](index=4&type=section&id=2025%20Financial%20Outlook) Lumen Technologies reiterated its full-year 2025 outlook, projecting Adjusted EBITDA between $3.2 billion and $3.4 billion, Free Cash Flow between $700 million and $900 million, and capital expenditures of $4.1 billion to $4.3 billion Full-Year 2025 Financial Outlook | Metric | Outlook ($ in billions) | | :--- | :--- | | Adjusted EBITDA | $3.2 to $3.4 | | Free Cash Flow | $0.7 to $0.9 | | Net Cash Interest | $1.2 to $1.3 | | Capital Expenditures | $4.1 to $4.3 | | Cash Income Taxes | $0.1 to $0.2 | [Appendix: Non-GAAP Reconciliations and Financial Statements](index=7&type=section&id=Appendix%3A%20Non-GAAP%20Reconciliations%20and%20Financial%20Statements) This appendix provides definitions for non-GAAP financial measures, their relevance, and comprehensive reconciliation tables, alongside the company's unaudited Consolidated Statements of Operations, Balance Sheets, and Cash Flows [Description of Non-GAAP Metrics](index=12&type=section&id=Description%20of%20Non-GAAP%20Metrics) This section defines key non-GAAP metrics like 'Special Items,' 'Adjusted EBITDA,' and 'Free Cash Flow,' explaining their calculation and management's use in evaluating business trends and debt servicing ability - Special Items are defined as significant costs related to Modernization and Simplification, Transaction and Separation, and Other items, which management believes warrant separate investor consideration[34](index=34&type=chunk)[35](index=35&type=chunk) - Adjusted EBITDA is defined as net income before interest, taxes, D&A, stock-based compensation, and impairments, serving as a key management measure for profitability and operating performance[36](index=36&type=chunk)[37](index=37&type=chunk) - Free Cash Flow, defined as net cash from operating activities less capital expenditures, is a key indicator of the company's ability to generate cash for debt servicing[41](index=41&type=chunk) [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited Consolidated Statements of Operations, Balance Sheets, and Cash Flows for the three months ended March 31, 2025, detailing the company's financial position and performance - The report includes the unaudited Consolidated Statements of Operations for the three months ended March 31, 2025 and 2024[23](index=23&type=chunk) - The report includes the unaudited Consolidated Balance Sheets as of March 31, 2025, and December 31, 2024[25](index=25&type=chunk) - The report includes the unaudited Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2025 and 2024[27](index=27&type=chunk) [Reconciliation Tables](index=14&type=section&id=Reconciliation%20Tables) This section provides detailed reconciliation tables for non-GAAP measures, including 'Special Items,' Adjusted EBITDA, and Free Cash Flow, ensuring transparency between GAAP figures and management's emphasized metrics - A detailed table outlines specific **Special Items** impacting Adjusted EBITDA, Net Income, and Cash Flows for Q1 2025 and Q1 2024, including costs for transactions, modernization, and severance[44](index=44&type=chunk)[45](index=45&type=chunk) - The report provides a reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow and Unlevered Cash Flow, both with and without the effects of cash Special Items[46](index=46&type=chunk)[47](index=47&type=chunk) - A reconciliation from Net (Loss) Income to Adjusted EBITDA details adjustments for taxes, interest, D&A, and other items to derive final Adjusted EBITDA and Adjusted EBITDA excluding Special Items figures[48](index=48&type=chunk)[49](index=49&type=chunk)

Financial Performance - Q1 2025 - Total revenue was $3182 million, a decrease of 33% year-over-year[27] - Adjusted EBITDA was $929 million, a decrease of 49% year-over-year, with an adjusted EBITDA margin of 292%, down 50 basis points[34] - Free cash flow was $354 million[36] Revenue Breakdown - N A Enterprise revenue totaled $1733 million, a decrease of 17% year-over-year[27] - Within N A Enterprise, "Grow" products contributed $834 million, an increase of 99% year-over-year, representing 48% of N A Enterprise revenue[27] - Mass Markets revenue was $658 million, a decrease of 59% year-over-year[27] - Fiber Broadband revenue within Mass Markets was $209 million, an increase of 229% year-over-year, representing 32% of total Mass Markets revenue[29] Mass Markets & Fiber - Fiber-enabled locations reached 43 million, with 112 million subscribers[32] - The company added 39K net fiber subscribers in Q1 2025[32] - Fiber Broadband ARPU (Average Revenue Per User) was approximately $64[33] Strategic Initiatives & Future Outlook - The company is focused on building the backbone for the AI economy, driving operational excellence, and simplifying its network and systems[8] - The company is driving Lumen Digital platform adoption and launching new multi-cloud capabilities to drive revenue growth[9] - The company is transforming from traditional telecom to 'Cloudified' Telecom[17] - The company reiterated its 2025 financial outlook, including adjusted EBITDA of $32 to $34 billion and free cash flow of $700 to $900 million[37]

Core Insights - Lumen Technologies reported a net loss of $201 million for Q1 2025, a significant decline from a net income of $57 million in Q1 2024, reflecting ongoing challenges in the business environment [5][11][23] - Total revenue for Q1 2025 was $3.182 billion, down 3.3% from $3.290 billion in Q1 2024, indicating a continued revenue decline across various segments [11][23] - The company emphasized its focus on operational excellence and innovation, particularly through its Lumen Digital platform and partnerships, such as the one with Google for direct fiber access to Google Cloud [3][5] Financial Performance - Large Enterprise revenue decreased by 4% year-over-year to $737 million, while Mid-Market Enterprise revenue fell by 11% to $513 million [4][9] - Public Sector revenue increased by 15% to $483 million, showcasing growth in this segment [4][9] - Adjusted EBITDA for Q1 2025 was $929 million, down from $977 million in Q1 2024, with an adjusted EBITDA margin of 29.2% [5][6][9] Cash Flow and Liquidity - Net cash provided by operating activities was $1.095 billion, slightly down from $1.102 billion in Q1 2024 [12][26] - Free Cash Flow, excluding special items, was $354 million, a decrease from $518 million in Q1 2024 [12][44] - As of March 31, 2025, Lumen had cash and cash equivalents of $1.9 billion, reflecting a stable liquidity position [13][24] Strategic Initiatives - The company is focused on building a stronger balance sheet, highlighted by recent term loan refinancing [5] - Lumen is investing in its network capacity and utilization to support growth, particularly in AI and cloud services [3][5] - The adoption of Network as a Service (NaaS) ports and services is growing, indicating a shift towards a consumption-based model [5] 2025 Financial Outlook - Lumen reiterated its full-year 2025 financial outlook, projecting adjusted EBITDA between $3.2 billion and $3.4 billion and free cash flow between $700 million and $900 million [14][15]

Core Viewpoint - Lumen Technologies, Inc. is expected to report a loss of 25 cents per share for Q1 2025, a significant increase from a loss of 4 cents in the same quarter last year, with total revenues projected at $3.1 billion, reflecting a 5.8% year-over-year decline [1] Financial Performance - Lumen has beaten the Zacks Consensus Estimate for earnings in the last two quarters, with an average earnings surprise of 42.4% [2] - The company has an Earnings ESP of 0.00% and a Zacks Rank of 2 (Buy) [5] Revenue Trends - Lumen's total revenues declined by 5.3% year-over-year in the last reported quarter, primarily due to divestitures and the sale of the CDN business [6] - The company is experiencing ongoing weakness in its legacy business, which is expected to continue affecting revenue growth in the near term [6] Growth Initiatives - Lumen is shifting focus towards newer growth products such as fiber and cloud-based offerings, driven by increasing demand from hyperscalers and enterprise markets [7] - The company secured $8.5 billion in Private Connectivity Fabric (PCF) deals in 2024 and announced a partnership with Google Cloud to address enterprise customer demands related to AI workloads [7] Service Adoption - There has been a notable increase in the uptake of Lumen's services, particularly in the large enterprise and mid-market segments, with a nearly 50% increase in 100 and 400-gig wave sales in 2024 [8] - Lumen added 43,000 Quantum fiber subscribers in the last reported quarter, bringing the total to one million [9] Market Position - Lumen's stock has declined by 49.3% over the past six months, underperforming its industry and the S&P 500 [12] - The company is trading at a trailing 12-month price-to-sales ratio of 0.25, significantly below the industry average of 1.40 [18] Investment Considerations - Despite challenges such as heavy debt and competition in the AI space, Lumen's alignment with AI and cloud computing growth presents promising opportunities [20] - The company's focus on cost discipline and expansion into Network-as-a-Service (NaaS) markets are seen as positive factors for future growth [20][21]

Core Viewpoint - Lumen (LUMN) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - Changes in a company's future earnings potential, as reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements [3]. - Institutional investors utilize earnings estimates to determine the fair value of a company's shares, impacting stock price through their large transactions [3]. Business Improvement Indicators - The rising earnings estimates and the Zacks Rank upgrade for Lumen suggest an improvement in the company's underlying business, which could lead to higher stock prices as investors respond positively [4]. Importance of Earnings Estimate Revisions - Empirical research supports the correlation between earnings estimate revisions and stock movements, making tracking these revisions crucial for investment decisions [5]. - The Zacks Rank system effectively utilizes earnings estimate revisions to classify stocks, providing a reliable framework for investors [6]. Specific Earnings Estimates for Lumen - Lumen is projected to earn -$0.87 per share for the fiscal year ending December 2025, reflecting a year-over-year change of -314.3% [7]. - Over the past three months, the Zacks Consensus Estimate for Lumen has increased by 7.8%, indicating a positive trend in earnings expectations [7]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of 'buy' and 'sell' ratings across its universe of over 4000 stocks, with only the top 20% receiving favorable ratings [8][9]. - Lumen's upgrade to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [9].

Lumen Technologies, Inc. (LUMN) and Cogent Communications Holdings, Inc. (CCOI) are both primarily enterprise-focused fiber network providers that deliver high-capacity, long-haul fiber networks powering everything from cloud services and streaming to AI data transfer and enterprise connectivity.Higher demand for bandwidth-intensive applications stemming from AI workloads and cloud infrastructure is providing ample business scope for these two players as they try to make the most of the next wave of digital ...

Lumen Defender Plus, powered by Black Lotus Labs intelligence, stops threats before they reach business networks – delivering measurable results for companies like Apex DataCom DENVER, April 22, 2025 /PRNewswire/ -- The need for smarter, faster, and more automated defenses has never been greater. In 2024, 86% of enterprises reported a year-over-year increase in cyber threats. Lumen Technologies (NYSE: LUMN) today announced it is putting the strength of its global threat intelligence that safeguards its own ...

Core Insights - Lumen Technologies will release its first-quarter financial results on May 1, 2025, after market close, with a live earnings conference call scheduled for 5 p.m. ET [1][2] Company Overview - Lumen Technologies aims to unleash the world's digital potential by connecting people, data, and applications efficiently and securely. The company positions itself as the trusted network for AI, leveraging its extensive network to help businesses maximize AI capabilities [3]

Lumen Technologies, Inc. (LUMN) has announced a partnership with Google Cloud at the Next 25 event. This collaboration is aimed at addressing the rising demands of enterprise customers amid the rapid expansion of artificial intelligence (AI) workloads across industries. Together, Lumen and Google Cloud will deliver cutting-edge cloud and network solutions that offer the scalability, security and performance required for AI-driven digital transformation.This strategic alliance underscores both companies’ com ...

Core Viewpoint - Lumen Technologies, Inc. (LUMN) has experienced a significant decline in its stock price, dropping 34.1% in the past month, which is notably worse than the declines of the S&P 500 and the Technology Services industry [1][4]. Price Performance - The broader market has been affected by escalating tariff and trade tensions, particularly with China, leading to supply chain disruptions and inflationary pressures [4]. - LUMN's stock has underperformed compared to peers like Verizon, AT&T, and T-Mobile, which have seen smaller declines of 9.3%, 3.3%, and 7.6% respectively [5]. Company-Specific Challenges - Lumen is facing challenges from its legacy business, which saw a 5.3% year-over-year revenue decline to $3,329 million in Q4 2024, with 25% of this decline attributed to divestitures and sales [7]. - The company anticipates adjusted EBITDA for 2025 to be between $3.2 billion and $3.4 billion, with capital expenditures expected to range from $4.1 billion to $4.3 billion [8]. Debt Concerns - Despite repaying $1.6 billion of debt in 2024, Lumen's balance sheet remains heavily indebted, with $17.494 billion in long-term debt as of December 31, 2024 [9][10]. AI and Growth Opportunities - Lumen's pivot to AI is seen as a potential growth catalyst, with $8.5 billion in Private Connectivity Fabric (PCF) deals secured in 2024 [11]. - The demand for fiber capacity is increasing due to AI needs, with significant sales growth in IP and Wave services, both up 13% in North America's enterprise channels [12]. Network Expansion and Utilization - Lumen plans to expand its inter-city fiber miles from 12 million in 2022 to 47 million by 2028, aiming to increase network utilization from 57% to 70% during the same period [13][14]. Cost Containment Efforts - The company is targeting $1 billion in cost savings by the end of 2027 through infrastructure simplification and product portfolio reduction [17]. Valuation Perspective - Lumen is currently trading at a price-to-sales ratio of 0.24, significantly lower than the Technology Services industry's ratio of 3.46, indicating a compelling valuation opportunity [18][19]. Conclusion - Lumen is navigating a transformative period with potential growth from AI and cloud services, but faces challenges from legacy business issues and high debt levels. The company is focusing on cost containment and network expansion to improve its financial position [20][21].