PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) Unaudited statements show rising product revenue but continued net losses and a widening stockholders' deficit [Condensed Balance Sheets](index=3&type=section&id=Condensed%20Balance%20Sheets) The balance sheet reflects a significant decrease in cash and a widening stockholders' deficit to $405.8 million Condensed Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $149,569 | $297,263 | | Total current assets | $218,875 | $360,134 | | Total assets | $250,220 | $378,318 | | Total current liabilities | $91,823 | $85,728 | | Total liabilities | $656,054 | $631,898 | | Total stockholders' deficit | $(405,834) | $(253,580) | [Condensed Statements of Operations and Comprehensive Loss](index=4&type=section&id=Condensed%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Q2 2025 saw a surge in product revenue to $39.5 million, though the net loss remained high at $75.8 million Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Product revenue, net | $39,503 | $7,324 | $68,023 | $9,236 | | Gross profit | $34,465 | $5,948 | $59,261 | $7,434 | | Total operating expenses | $94,389 | $83,248 | $198,047 | $154,688 | | Loss from operations | $(59,924) | $(77,300) | $(138,786) | $(147,254) | | Net loss | $(75,810) | $(91,446) | $(170,126) | $(174,298) | | Net loss per share | $(1.05) | $(1.56) | $(2.36) | $(2.98) | [Condensed Statements of Cash Flows](index=6&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) Net cash used in operations increased to $147.7 million for the first six months of 2025 Cash Flow Summary for Six Months Ended June 30 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(147,659) | $(139,741) | | Net cash used in investing activities | $(115) | $(86) | | Net cash provided by financing activities | $80 | $34,671 | | **Net decrease in cash** | **$(147,694)** | **$(105,156)** | [Notes to Condensed Unaudited Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Unaudited%20Financial%20Statements) Notes detail the VOQUEZNA launch, debt obligations, and a May 2025 restructuring plan - The FDA approved VOQUEZNA for Erosive GERD and H. pylori in late 2023, with commercial launch in Q4 2023, and an additional approval for Non-Erosive GERD was granted on **July 17, 2024**[22](index=22&type=chunk) - Management believes it has **sufficient working capital** to fund operations through at least the next twelve months from the issuance date of the financial statements[25](index=25&type=chunk) - For the first six months of 2025, **three customers accounted for 72% of product sales** and represented 82% of the accounts receivable balance as of June 30, 2025[38](index=38&type=chunk) - In May 2025, the company implemented a restructuring plan, reducing its workforce by 28 employees (approx. 6%) and incurring **total charges of $8.0 million**[104](index=104&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management highlights the strong VOQUEZNA launch, rising revenues, and sufficient liquidity for the next year [Overview](index=24&type=section&id=Overview) The company's focus is on commercializing VOQUEZNA, which shows strong prescription momentum post-launch - As of July 25, 2025, **over 580,000 prescriptions** for VOQUEZNA products have been filled by more than 29,300 prescribers since launch[110](index=110&type=chunk) - On July 17, 2024, the FDA approved VOQUEZNA 10 mg tablets for the relief of heartburn associated with **Non-Erosive GERD**[109](index=109&type=chunk) - The company has been informed of a potential supply disruption for clarithromycin, a component of VOQUEZNA TRIPLE PAK, which accounts for **approximately 1% of total revenue**[113](index=113&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Q2 2025 revenue surged to $39.5 million, with increased SG&A expenses driven by launch and restructuring costs Comparison of Three Months Ended June 30 (in thousands) | Account | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Product revenue, net | $39,503 | $7,324 | $32,179 | | Research and development | $9,076 | $7,376 | $1,700 | | Selling, general and administrative | $85,313 | $75,872 | $9,441 | | Net loss | $(75,810) | $(91,446) | $15,636 | Comparison of Six Months Ended June 30 (in thousands) | Account | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Product revenue, net | $68,023 | $9,236 | $58,787 | | Research and development | $18,260 | $16,806 | $1,454 | | Selling, general and administrative | $179,787 | $137,882 | $41,905 | | Net loss | $(170,126) | $(174,298) | $4,172 | - The **$41.9 million increase in SG&A** for the first six months of 2025 was primarily due to a $32.5 million increase in advertising and promotional expenses for the VOQUEZNA launch and an $8.9 million increase in personnel-related expenses from restructuring[137](index=137&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) The company holds $149.6 million in cash and believes it has sufficient capital to fund operations for one year - The company had **cash and cash equivalents of $149.6 million** as of June 30, 2025[139](index=139&type=chunk) - The company has a term loan agreement with Hercules, which was amended to increase the principal amount up to $300 million, but **does not expect to meet the revenue threshold** to draw the final $50 million tranche[144](index=144&type=chunk)[150](index=150&type=chunk) - The Revenue Interest Financing Agreement entitles investors to a **10% royalty on net sales** of vonoprazan products until they receive aggregate payments equal to 200% of their investment[156](index=156&type=chunk) Cash Flow Summary for Six Months Ended June 30 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(147,659) | $(139,741) | | Net cash used in investing activities | $(115) | $(86) | | Net cash provided by financing activities | $80 | $34,671 | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Market risk exposures remain materially unchanged from the 2024 Form 10-K disclosures - There have been **no material changes** to the company's market risk since the disclosures in the 2024 Form 10-K[176](index=176&type=chunk) [Item 4. Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025 - Management evaluated disclosure controls and procedures and concluded **they were effective** as of June 30, 2025[178](index=178&type=chunk) - **No material changes** in internal control over financial reporting occurred during the second quarter of 2025[179](index=179&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no current involvement in any material legal proceedings - The company is **not currently a party** to any material legal proceedings[181](index=181&type=chunk) [Item 1A. Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) Risk factors remain materially unchanged from those disclosed in the 2024 Annual Report - **No material changes** have occurred to the risk factors disclosed in the 2024 Form 10-K[182](index=182&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or issuer repurchases occurred during the period - There were **no unregistered sales of equity securities** or issuer repurchases of equity securities in the reported period[183](index=183&type=chunk)[184](index=184&type=chunk) [Item 6. Exhibits](index=43&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed, including new executive separation and employment agreements - The report includes several exhibits, such as **separation agreements** with Azmi Nabulsi and Molly Henderson, and an employment letter with Anne Marie Cook[190](index=190&type=chunk)

Financial Results 2nd Quarter 2025 Advantage Solutions Reports Second Quarter 2025 Results Strong profitability growth in Experiential and Retailer Services ST. LOUIS, August 7, 2025 – Advantage Solutions Inc. (NASDAQ: ADV) ("Advantage," "Advantage Solutions," the "Company," "we," or "our"), a leading business solutions provider to consumer goods manufacturers and retailers, today reported financial results for the three months ended June 30, 2025. Unless otherwise noted, results presented in this release a ...

Cartesian Therapeutics Reports Second Quarter 2025 Financial Results and Provides Business Update Exhibit 99.1 Initiated Phase 3 AURORA trial of Descartes-08 in myasthenia gravis Preliminary data from Phase 2 trial of Descartes-08 in systemic lupus erythematosus expected in 2H25 Initiation of Phase 2 pediatric basket trial of Descartes-08 in select autoimmune indications expected in 2H25 Approximately $162.1 million cash, cash equivalents and restricted cash as of June 30, 2025, expected to support planned ...

Cartesian Therapeutics Reports Second Quarter 2025 Financial Results and Provides Business Update Initiated Phase 3 AURORA trial of Descartes-08 in myasthenia gravis Preliminary data from Phase 2 trial of Descartes-08 in systemic lupus erythematosus expected in 2H25 Exhibit 99.1 Initiation of Phase 2 pediatric basket trial of Descartes-08 in select autoimmune indications expected in 2H25 An encore presentation of the data, which were originally shared at the 2025 American Academy of Neurology Annual Meeting ...

GH RESEARCH PLC Unaudited condensed consolidated interim statement of comprehensive loss | | | Three months ended | | Six months ended | | | --- | --- | --- | --- | --- | --- | | | | June 30, | | June 30, | | | | | 2025 | 2024 | 2025 | 2024 | | | Note | $'000 | $'000 | $'000 | $'000 | | Operating expenses | | | | | | | Research and development | 3 | (8,958) | (9,755) | (16,810) | (18,413) | | General and administration | 3 | (5,746) | (3,464) | (10,626) | (6,334) | | Loss from operations | | (14,704) | (13, ...

[Phathom Pharmaceuticals Second Quarter 2025 Earnings Release](index=1&type=section&id=Phathom%20Pharmaceuticals%20Second%20Quarter%202025%20Earnings%20Release) Phathom Pharmaceuticals reported strong Q2 2025 results, driven by VOQUEZNA's commercial success, improved financial performance, and key regulatory milestones [Business Highlights and Commercial Performance](index=1&type=section&id=Business%20Highlights%20and%20Commercial%20Performance) Phathom Pharmaceuticals reported strong commercial momentum for its GI treatment, VOQUEZNA, in Q2 2025, with net revenues reaching $39.5 million. Total prescriptions surpassed 580,000, showing a 49% increase since the previous report. The company has shifted its commercial strategy to focus on high-value prescribers, primarily gastroenterologists (GIs), and maintains robust commercial access with coverage for over 120 million lives VOQUEZNA Commercial Metrics | Metric | Value | Growth | Source Date | | :--- | :--- | :--- | :--- | | Total Prescriptions Filled | > 580,000 | 49% since May 1, 2025 | July 25, 2025 | | Q2 2025 Prescriptions Filled | ~173,000 | 36% QoQ | Q2 2025 | | Unique HCP Prescribers | > 29,300 | 24% since last quarter | July 18, 2025 | - The company has implemented a strategic shift to prioritize gastroenterologists (GIs) in its sales strategy, who currently account for approximately **70% of all filled VOQUEZNA prescriptions**[5](index=5&type=chunk) - VOQUEZNA has commercial coverage for over **120 million lives**, with more than half of these requiring only one prior proton pump inhibitor (PPI) step before approval[5](index=5&type=chunk) [Second Quarter 2025 Financial Results](index=2&type=section&id=Second%20Quarter%202025%20Financial%20Results) In Q2 2025, Phathom's net revenues surged to $39.5 million from $7.3 million in Q2 2024, driven by the VOQUEZNA launch. Operating expenses increased to $94.4 million, primarily due to commercial investments and restructuring charges. However, operating expenses saw a sequential decrease from Q1 2025 due to cost-saving initiatives. The company reported a reduced net loss of $75.8 million compared to $91.4 million in the prior-year period [Key Financial Metrics](index=2&type=section&id=Key%20Financial%20Metrics) This section details Phathom's Q2 2025 financial performance, highlighting significant increases in net revenues and changes in operating expenses and net loss compared to Q2 2024 Q2 2025 vs Q2 2024 Financial Performance (in millions) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Revenues | $39.5 | $7.3 | +$32.2 | | R&D Expenses | $9.1 | $7.4 | +$1.7 | | SG&A Expenses | $85.3 | $75.9 | +$9.4 | | Total Operating Expenses | $94.4 | $83.2 | +$11.2 | | Net Loss | $(75.8) | $(91.4) | +$15.6 (Improved) | | Non-GAAP Adjusted Net Loss | $(56.5) | $(73.3) | +$16.8 (Improved) | - The increase in R&D and SG&A expenses was primarily driven by one-time personnel-related restructuring charges and continued commercial investment in the VOQUEZNA launch[7](index=7&type=chunk) - Operating expenses decreased sequentially from **$103.7 million in Q1 2025 to $94.4 million in Q2 2025**, reflecting cost savings from the company's restructuring[7](index=7&type=chunk) [Financial Position and Outlook](index=3&type=section&id=Financial%20Position%20and%20Outlook) The company's financial position as of June 30, 2025, is presented, along with its full-year 2025 revenue guidance and future operating expense targets - As of June 30, 2025, the company held **$149.6 million in cash and cash equivalents**, which is believed to be sufficient to fund operations and achieve profitability in 2026 (excluding stock-based compensation)[13](index=13&type=chunk) 2025 Financial Guidance | Metric | Guidance Range/Target | | :--- | :--- | | Full-Year 2025 Revenue | $165 million to $175 million | | Q3 2025 Non-GAAP Operating Expenses | < $60 million | | Q4 2025 Non-GAAP Operating Expenses | < $55 million | [Regulatory Updates and Corporate Developments](index=2&type=section&id=Regulatory%20Updates%20and%20Corporate%20Developments) During the second quarter, Phathom secured a significant regulatory milestone with the FDA updating the Orange Book to reflect 10-year New Chemical Entity (NCE) exclusivity for VOQUEZNA through May 2032, potentially delaying generic entry until 2033. The company also strengthened its leadership by appointing Anne Marie Cook, J.D., as Chief Legal Officer - The FDA updated the Orange Book to grant **10-year New Chemical Entity (NCE) exclusivity for VOQUEZNA tablets**, extending market protection through May 2032[7](index=7&type=chunk) - Based on typical ANDA review timelines, the company believes generic competition is unlikely before **2033**[7](index=7&type=chunk) - Phathom appointed Anne Marie Cook, J.D., as Chief Legal Officer and Corporate Secretary to strengthen its leadership team[7](index=7&type=chunk) [Financial Statements and Non-GAAP Reconciliation](index=5&type=section&id=Financial%20Statements%20and%20Non-GAAP%20Reconciliation) The report includes unaudited condensed financial statements as of June 30, 2025, and for the three and six months then ended. These statements detail the company's balance sheet and statement of operations. A reconciliation of GAAP to non-GAAP financial measures is also provided, adjusting for items like stock-based compensation and non-cash interest expenses to offer a clearer view of ongoing operational performance [Condensed Balance Sheets](index=5&type=section&id=Condensed%20Balance%20Sheets) This section provides a snapshot of Phathom's financial position, detailing assets, liabilities, and stockholders' deficit as of June 30, 2025, and December 31, 2024 Condensed Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $149,569 | $297,263 | | Total assets | $250,220 | $378,318 | | Total liabilities | $656,054 | $631,898 | | Total stockholders' deficit | $(405,834) | $(253,580) | [Condensed Statements of Operations](index=5&type=section&id=Condensed%20Statements%20of%20Operations) This section outlines Phathom's operational performance for the three months ended June 30, comparing product revenue, gross profit, operating expenses, and net loss for 2025 and 2024 Statement of Operations - Three Months Ended June 30 (in thousands) | Account | 2025 | 2024 | | :--- | :--- | :--- | | Product revenue, net | $39,503 | $7,324 | | Gross profit | $34,465 | $5,948 | | Total operating expenses | $94,389 | $83,248 | | Loss from operations | $(59,924) | $(77,300) | | Net loss | $(75,810) | $(91,446) | | Net loss per share | $(1.05) | $(1.56) | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=6&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section reconciles GAAP net loss to non-GAAP adjusted net loss for the three months ended June 30, adjusting for non-cash items to provide a clearer view of core operational profitability GAAP to Non-GAAP Net Loss Reconciliation - Three Months Ended June 30 (in thousands) | Account | 2025 | 2024 | | :--- | :--- | :--- | | GAAP net loss | $(75,810) | $(91,446) | | Stock-based compensation expense | $8,272 | $6,099 | | Non-cash interest on revenue interest financing liability | $10,306 | $11,553 | | Interest expense related to amortization of debt discount | $734 | $499 | | **Non-GAAP adjusted net loss** | **$(56,498)** | **$(73,295)** |

[Special Note Regarding Forward-Looking Statements](index=4&type=section&id=SPECIAL%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) Forward-looking statements in this report involve substantial risks and uncertainties, and actual results may differ materially from projections - Forward-looking statements include future financial performance, growth strategies, market demand, competition, ability to attract/retain sellers/buyers, brand development, compliance, litigation, economic trends, and capital availability[10](index=10&type=chunk) - Investors are cautioned not to place undue reliance on these statements, as new risks emerge, and management cannot predict all factors affecting future results[11](index=11&type=chunk)[13](index=13&type=chunk) [Part I - Financial Information](index=6&type=section&id=Part%20I%20-%20Financial%20Information) This part presents the company's unaudited condensed consolidated financial statements for the periods ended June 30, 2025, along with management's discussion and analysis of financial condition and results of operations, market risk disclosures, and controls and procedures [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section provides the company's unaudited condensed consolidated financial statements, including the balance sheets, statements of operations, comprehensive loss, stockholders' equity, and cash flows, accompanied by detailed notes explaining the basis of presentation and significant accounting policies [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Presents the company's financial position, detailing assets, liabilities, and stockholders' equity as of June 30, 2025, and December 31, 2024 | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :----------------------------------- | :------------ | :---------------- | | **Assets** | | | | Cash and cash equivalents | $22,431 | $25,964 | | Short-term investments | $71,857 | $77,919 | | Total current assets | $105,802 | $111,864 | | Total assets | $138,571 | $145,758 | | **Liabilities** | | | | Total current liabilities | $27,314 | $28,459 | | Total liabilities | $43,706 | $46,453 | | **Stockholders' Equity** | | | | Total stockholders' equity | $94,865 | $99,305 | | Total liabilities and stockholders' equity | $138,571 | $145,758 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Outlines the company's revenues, expenses, and net loss for the three and six months ended June 30, 2025, and 2024 | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :----------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net revenue | $22,135 | $22,235 | $44,680 | $44,297 | | Cost of revenue | $6,237 | $6,290 | $12,460 | $12,366 | | Gross profit | $15,898 | $15,945 | $32,220 | $31,931 | | Total operating expenses | $21,615 | $22,439 | $44,192 | $43,777 | | Loss from operations | $(5,717) | $(6,494) | $(11,972) | $(11,846) | | Total other income, net | $1,423 | $2,061 | $2,876 | $4,110 | | Net loss | $(4,313) | $(4,437) | $(9,119) | $(7,740) | | Net loss per share—basic and diluted | $(0.12) | $(0.12) | $(0.26) | $(0.20) | [Condensed Consolidated Statements of Comprehensive Loss](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Details the company's comprehensive loss, including net loss and other comprehensive income/loss items, for the three and six months ended June 30, 2025, and 2024 | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :----------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net loss | $(4,313) | $(4,437) | $(9,119) | $(7,740) | | Foreign currency translation adjustment | $124 | $(7) | $192 | $(23) | | Unrealized losses on short-term investments | $(23) | $(71) | $(11) | $(263) | | Comprehensive loss | $(4,212) | $(4,515) | $(8,938) | $(8,026) | [Condensed Consolidated Statements of Stockholders' Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Summarizes changes in the company's stockholders' equity, including net loss, stock-based compensation, and share repurchases, for the six months ended June 30, 2025 - Total stockholders' equity decreased from **$99.3 million** as of December 31, 2024, to **$94.9 million** as of June 30, 2025[16](index=16&type=chunk)[22](index=22&type=chunk) - Key changes for the six months ended June 30, 2025, include a net loss of **$9.1 million**, stock-based compensation of **$7.6 million**, and common stock repurchases of **$1.8 million**[22](index=22&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Presents the company's cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2025, and 2024 | Metric | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :----------------------------------- | :------------------------------- | :------------------------------- | | Net cash used in operating activities | $(5,239) | $(5,705) | | Net cash provided by investing activities | $5,850 | $15,283 | | Net cash used in financing activities | $(3,127) | $(23,064) | | Net decrease in cash, cash equivalents, and restricted cash | $(2,178) | $(13,548) | | Cash, cash equivalents, and restricted cash at end of period | $27,443 | $27,427 | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide essential details and context for the unaudited condensed consolidated financial statements, covering the company's business, accounting policies, fair value measurements, revenue breakdown, investment portfolio, property and equipment, accrued expenses, lease obligations, equity structure, stock-based compensation, income tax position, net loss per share calculations, and various commitments and contingencies [1. Basis of Presentation and Summary of Significant Accounting Policies](index=12&type=section&id=1.%20Basis%20of%20Presentation%20and%20Summary%20of%20Significant%20Accounting%20Policies) Describes the company's business operations, the basis of financial statement preparation, and key accounting policies, including restructuring charges - 1stdibs.com, Inc. operates as a leading online marketplace for luxury design items, connecting design lovers with sellers of vintage, antique, and contemporary furniture, home décor, jewelry, watches, art, and fashion[26](index=26&type=chunk) - The financial statements are prepared in accordance with GAAP, and the company operates as a single reportable and operating segment[28](index=28&type=chunk)[36](index=36&type=chunk) | (in thousands) | Restructuring Charges | | :--------------- | :-------------------- | | Balance, December 31, 2024 | $1,262 | | Cash payments | $(944) | | Balance, June 30, 2025 | $318 | - No material changes to significant accounting policies were made, and no restructuring expense was recorded for the three and six months ended June 30, 2025[31](index=31&type=chunk)[33](index=33&type=chunk) [2. Fair Value of Financial Instruments](index=14&type=section&id=2.%20Fair%20Value%20of%20Financial%20Instruments) Explains the classification of financial assets and liabilities into a three-level fair value hierarchy based on input observability - The company classifies financial assets and liabilities carried at fair value into a three-level hierarchy based on the observability of inputs[41](index=41&type=chunk)[42](index=42&type=chunk) | Asset Type | Level 1 (in thousands) | Level 2 (in thousands) | Level 3 (in thousands) | Total (in thousands) | | :------------------------ | :------ | :------ | :------ | :------ | | Money market fund | $7,671 | $— | $— | $7,671 | | Commercial paper | $— | $3,321 | $— | $3,321 | | Corporate notes | $— | $19,644 | $— | $19,644 | | U.S. Treasury securities | $— | $28,256 | $— | $28,256 | | U.S. Government agency securities | $— | $20,636 | $— | $20,636 | | **Total** | **$7,671** | **$71,857** | **$—** | **$79,928** | [3. Revenue Recognition](index=15&type=section&id=3.%20Revenue%20Recognition) Details the company's revenue streams, primarily from seller marketplace services and other services, and geographic revenue concentration | Service Type | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :------------------------ | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Seller marketplace services | $21,881 | $21,962 | $44,167 | $43,800 | | Other services | $254 | $273 | $513 | $497 | | **Total net revenue** | **$22,135** | **$22,235** | **$44,680** | **$44,297** | - Approximately **82%** of on-platform marketplace transaction net revenue for the three and six months ended June 30, 2025, was derived from the United States[45](index=45&type=chunk) [4. Short-Term Investments](index=15&type=section&id=4.%20Short-Term%20Investments) Provides a breakdown of the company's short-term investment portfolio by type, amortized cost, and fair value, including maturity profiles | Investment Type | Amortized Cost (June 30, 2025, in thousands) | Fair Value (June 30, 2025, in thousands) | Amortized Cost (Dec 31, 2024, in thousands) | Fair Value (Dec 31, 2024, in thousands) | | :------------------------ | :------------------------------- | :--------------------------- | :----------------------------- | :--------------------------- | | Commercial paper | $3,324 | $3,321 | $2,258 | $2,263 | | Corporate notes | $19,629 | $19,644 | $27,082 | $27,092 | | U.S. Treasury securities | $28,241 | $28,256 | $14,851 | $14,852 | | U.S. Government agency securities | $20,634 | $20,636 | $33,687 | $33,712 | | **Total** | **$71,828** | **$71,857** | **$77,878** | **$77,919** | - As of June 30, 2025, **$48.1 million** of short-term investments have a remaining maturity of one year or less, and **$23.8 million** have a maturity greater than one year[48](index=48&type=chunk) [5. Property and Equipment, net](index=16&type=section&id=5.%20Property%20and%20Equipment,%20net) Details the composition of property and equipment, net, including internal-use software and leasehold improvements, and associated depreciation and amortization expenses | Asset Type | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :----------------------------------- | :------------ | :---------------- | | Internal-use software | $20,705 | $20,026 | | Leasehold improvements | $4,029 | $4,029 | | Computer equipment and software | $689 | $621 | | Software in progress | $630 | $913 | | Furniture and fixtures | $73 | $73 | | **Total property and equipment, gross** | **$26,126** | **$25,662** | | Less: Accumulated depreciation and amortization | $(22,953) | $(22,098) | | **Total property and equipment, net** | **$3,173** | **$3,564** | - Depreciation and amortization expense for property and equipment totaled **$0.9 million** for the six months ended June 30, 2025, consistent with **$0.9 million** for the same period in 2024[49](index=49&type=chunk) [6. Accrued Expenses](index=16&type=section&id=6.%20Accrued%20Expenses) Lists the company's accrued expenses, including shipping, compensation, and taxes, as of June 30, 2025, and December 31, 2024 | Expense Type | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :------------------------ | :------------ | :---------------- | | Shipping | $2,263 | $2,536 | | Compensation & benefits | $1,755 | $2,611 | | Sales & use taxes payable | $1,100 | $1,490 | | Allowance for transaction losses | $970 | $961 | | Accrued severance | $317 | $1,262 | | Other | $2,471 | $2,615 | | **Total accrued expenses** | **$8,876** | **$11,475** | [7. Leases](index=16&type=section&id=7.%20Leases) Outlines the company's operating lease assets and liabilities, weighted-average lease terms, discount rates, and net lease expenses - As of June 30, 2025, the company had **$18.6 million** in operating lease right-of-use assets and **$20.8 million** in total operating lease liabilities (current and non-current)[53](index=53&type=chunk) - The weighted-average remaining lease term is **4.4 years** with a weighted-average discount rate of **6.2%**[53](index=53&type=chunk) | Expense Type | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :------------------------ | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Operating lease expense | $1,244 | $1,224 | $2,470 | $2,305 | | Sublease income | $(886) | $(1,054) | $(1,775) | $(1,753) | | **Total lease expense, net** | **$681** | **$510** | **$1,374** | **$1,172** | [8. Other Current Liabilities](index=17&type=section&id=8.%20Other%20Current%20Liabilities) Presents a breakdown of other current liabilities, including sales and indirect tax contingencies, as of June 30, 2025, and December 31, 2024 | Liability Type | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :----------------------------------- | :------------ | :---------------- | | Sales and other indirect tax contingencies | $1,112 | $1,100 | | Other | $753 | $865 | | **Total other current liabilities** | **$1,865** | **$1,965** | [9. Equity](index=18&type=section&id=9.%20Equity) Details the company's common stock outstanding, treasury stock, and remaining availability under its stock repurchase program - As of June 30, 2025, the company had **36,246,609 shares** of common stock outstanding and **6,921,514 shares** of treasury stock at a cost basis of **$33.4 million**[6](index=6&type=chunk)[16](index=16&type=chunk)[62](index=62&type=chunk) - Approximately **$2.0 million** remains available for future purchases under the 2024 Stock Repurchase Program[62](index=62&type=chunk) | Program | Shares (June 30, 2025) | Cost Basis (June 30, 2025, in thousands) | Shares (Dec 31, 2024) | Cost Basis (Dec 31, 2024, in thousands) | | :------------------------ | :----------------------- | :----------------------- | :---------------------- | :---------------------- | | 2023 Stock Repurchase Program | 4,926,635 | $25,373 | 4,926,635 | $25,373 | | 2024 Stock Repurchase Program | 1,994,879 | $8,039 | 1,516,887 | $6,245 | | **Total** | **6,921,514** | **$33,412** | **6,443,522** | **$31,618** | [10. Stock-based compensation](index=18&type=section&id=10.%20Stock-based%20compensation) Outlines the company's stock incentive plan, shares available for grants, and the allocation of stock-based compensation expense across various categories - The 2021 Stock Incentive Plan (2021 Plan) automatically increased by **1,791,393 shares** on January 1, 2025, with **2,224,900 shares** available for future grants as of June 30, 2025[68](index=68&type=chunk)[69](index=69&type=chunk) | Expense Category | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :------------------------ | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Cost of revenue | $97 | $87 | $188 | $167 | | Sales and marketing | $754 | $980 | $1,524 | $1,711 | | Technology development | $945 | $1,037 | $1,973 | $1,774 | | General and administrative | $1,746 | $1,912 | $3,907 | $3,454 | | **Total** | **$3,542** | **$4,016** | **$7,592** | **$7,106** | - Total unrecognized compensation expense related to unvested stock-based awards was **$20.6 million** as of June 30, 2025, expected to be recognized over a weighted-average period of **2.2 years**[77](index=77&type=chunk) [11. Income Taxes](index=21&type=section&id=11.%20Income%20Taxes) Discusses the company's income tax provision, the impact of net losses and valuation allowances, and the evaluation of new tax legislation - The income tax provision was immaterial for the three and six months ended June 30, 2025 and 2024, due to net losses and a full valuation allowance against net deferred tax assets[78](index=78&type=chunk) - The company is evaluating the impact of the recently signed One Big Beautiful Bill Act (OBBBA) but does not expect a material financial impact[79](index=79&type=chunk) [12. Net Loss Per Share](index=22&type=section&id=12.%20Net%20Loss%20Per%20Share) Presents the calculation of basic and diluted net loss per share, including net loss and weighted-average common shares outstanding | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :----------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net loss | $(4,313) | $(4,437) | $(9,119) | $(7,740) | | Weighted average common shares outstanding | 35,820,053 | 38,517,785 | 35,697,350 | 39,131,456 | | **Net loss per share—basic and diluted** | **$(0.12)** | **$(0.12)** | **$(0.26)** | **$(0.20)** | - Potentially dilutive securities (stock options and restricted stock units) were excluded from diluted EPS calculation as their inclusion would have been anti-dilutive[81](index=81&type=chunk) [13. Commitments and Contingencies](index=22&type=section&id=13.%20Commitments%20and%20Contingencies) Details the company's contractual obligations, including lease and other obligations, and discusses the nature of legal proceedings and tax contingencies | Fiscal Year Ending December 31, | Lease Obligations (in thousands) | Other Obligations (in thousands) | Total Obligations (in thousands) | | :----------------------------------- | :---------------- | :---------------- | :---------------- | | 2025 (remaining) | $2,806 | $601 | $3,407 | | 2026 | $5,429 | $1,057 | $6,486 | | 2027 | $5,429 | $287 | $5,716 | | 2028 | $5,429 | $20 | $5,449 | | 2029 | $4,458 | $— | $4,458 | | 2030 | $41 | $— | $41 | | **Total** | **$23,592** | **$1,965** | **$25,557** | - The company is involved in routine legal proceedings but does not expect any current matters to have a material adverse effect on its business, financial condition, or results of operations[83](index=83&type=chunk) - Liabilities for sales and indirect tax contingencies totaled **$1.1 million** as of June 30, 2025, and December 31, 2024[86](index=86&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance, key operating metrics, and factors influencing results, including a detailed comparison of financial results for the three and six months ended June 30, 2025 and 2024. It also covers non-GAAP measures, liquidity, cash flows, and critical accounting policies [Company Overview](index=24&type=section&id=Company%20Overview) Provides an overview of 1stDibs as a leading online marketplace for luxury design items, emphasizing its platform, vetting, and market expansion - 1stDibs is a leading online marketplace connecting design lovers with sellers of luxury design items, including vintage, antique, and contemporary furniture, home décor, jewelry, watches, art, and fashion[89](index=89&type=chunk) - The company's platform, expert vetting, and marketing content build trust, facilitating high-consideration purchases and expanding the market for luxury design[89](index=89&type=chunk) - The company transitioned to a full e-commerce marketplace model in 2016, building on its reputation as a trusted source for unique luxury design[90](index=90&type=chunk) [Key Operating and Financial Metrics](index=24&type=section&id=Key%20Operating%20and%20Financial%20Metrics) Presents key performance indicators such as GMV, number of orders, active buyers, and Adjusted EBITDA for the three and six months ended June 30, 2025, and 2024 | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :------------------------ | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | GMV | $89,891 | $91,514 | $184,631 | $183,200 | | Number of Orders | 32,819 | 33,952 | 68,081 | 69,267 | | Active Buyers | 64,363 | 61,155 | 64,363 | 61,155 | | Adjusted EBITDA | $(1,752) | $(1,589) | $(3,500) | $(3,383) | - GMV decreased by **1.8%** for the three months ended June 30, 2025, compared to the prior year, but increased by **0.8%** for the six months ended June 30, 2025[92](index=92&type=chunk) - Active Buyers increased by **5.2%** to **64,363** as of June 30, 2025, compared to **61,155** as of June 30, 2024[92](index=92&type=chunk) [Components of Results of Operations](index=25&type=section&id=Components%20of%20Results%20of%20Operations) Explains the composition of net revenue, cost of revenue, and operating expenses, including sales and marketing, technology development, general and administrative, and provision for transaction losses - Net revenue primarily consists of seller marketplace services (transaction, subscription, and listing fees), with transaction fees ranging from **5% to 50%** of GMV plus processing fees[98](index=98&type=chunk) - Cost of revenue includes payment processor fees, hosting, payroll, and amortization of internal-use software, and also accounts for the difference between shipping collected and charged[99](index=99&type=chunk)[100](index=100&type=chunk) - Operating expenses are categorized into Sales and Marketing (including performance-based marketing and promotional discounts), Technology Development (engineering and product development), General and Administrative (finance, legal, HR, lease expense), and Provision for Transaction Losses (buyer protection, bad debt)[102](index=102&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Analyzes the company's financial performance, including net revenue, gross profit, operating loss, and net loss, for the three and six months ended June 30, 2025, and 2024 | Metric | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | | :----------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net revenue | $22,135 | $22,235 | $44,680 | $44,297 | | Gross profit | $15,898 | $15,945 | $32,220 | $31,931 | | Loss from operations | $(5,717) | $(6,494) | $(11,972) | $(11,846) | | Net loss | $(4,313) | $(4,437) | $(9,119) | $(7,740) | | Metric | 3 Months Ended June 30, 2025 (%) | 3 Months Ended June 30, 2024 (%) | 6 Months Ended June 30, 2025 (%) | 6 Months Ended June 30, 2024 (%) | | :----------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net revenue | 100% | 100% | 100% | 100% | | Cost of revenue | 28% | 28% | 28% | 28% | | Gross profit | 72% | 72% | 72% | 72% | | Sales and marketing | 37% | 42% | 39% | 42% | | Technology development | 27% | 24% | 26% | 23% | | General and administrative | 30% | 31% | 30% | 31% | | Provision for transaction losses | 4% | 4% | 4% | 3% | | Total operating expenses | 98% | 101% | 99% | 99% | | Loss from operations | (26)% | (29)% | (27)% | (27)% | | Other income, net | 6% | 9% | 7% | 10% | | Net loss before income taxes | (20)% | (20)% | (20)% | (17)% | | Provision for income taxes | —% | —% | —% | —% | | Net loss | (20)% | (20)% | (20)% | (17)% | [Comparison of the Three Months Ended June 30, 2025 and 2024](index=27&type=section&id=Comparison%20of%20the%20Three%20Months%20Ended%20June%2030,%202025%20and%202024) Compares the company's financial performance for the three months ended June 30, 2025, against the same period in 2024, highlighting changes in revenue and expenses - Net revenue remained consistent at **$22.1 million**, a slight decrease of **$0.1 million (0.4%)** YoY, primarily due to a decrease in GMV and number of orders, influenced by macroeconomic factors[107](index=107&type=chunk)[108](index=108&type=chunk) - Sales and marketing expense decreased by **$1.1 million (12%)** to **$8.1 million**, driven by reduced performance-based marketing, promotional campaigns, and headcount[112](index=112&type=chunk) - Technology development expense increased by **$0.4 million (8%)** to **$5.9 million**, mainly due to annual compensation increases[113](index=113&type=chunk) - Other income, net, decreased by **$0.6 million (31%)** to **$1.4 million**, primarily due to lower interest income from reduced cash and short-term investments and lower interest rates[116](index=116&type=chunk) [Comparison of the Six Months Ended June 30, 2025 and 2024](index=29&type=section&id=Comparison%20of%20the%20Six%20Months%20Ended%20June%2030,%202025%20and%202024) Compares the company's financial performance for the six months ended June 30, 2025, against the same period in 2024, focusing on revenue, cost of revenue, and operating expenses - Net revenue increased by **$0.4 million (1%)** to **$44.7 million**, primarily driven by a **1%** increase in GMV[117](index=117&type=chunk) - Cost of revenue increased slightly by less than **$0.1 million (1%)** to **$12.5 million**, with increases in shipping and salaries offset by a **$0.4 million** decrease in credit card processing fees due to negotiated pricing[119](index=119&type=chunk) - Technology development expense increased by **$1.3 million (13%)** to **$11.5 million**, mainly due to a **$1.1 million** increase in salaries and benefits and a **$0.2 million** increase in stock-based compensation[123](index=123&type=chunk) - Provision for transaction losses increased by **$0.6 million (51%)** to **$1.9 million**, driven by a prior-year provision adjustment and timing/volume of claims[125](index=125&type=chunk) [Non-GAAP Financial Measures](index=30&type=section&id=Non-GAAP%20Financial%20Measures) Defines Adjusted EBITDA as a key non-GAAP metric used by management to evaluate operating performance, providing a reconciliation to net loss - Adjusted EBITDA is a key non-GAAP measure used by management to assess operating performance and leverage, excluding depreciation, stock-based compensation, other income, income taxes, and strategic alternative expenses[127](index=127&type=chunk)[130](index=130&type=chunk) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :----------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net loss | $(4,313) | $(4,437) | $(9,119) | $(7,740) | | Depreciation and amortization | $423 | $470 | $880 | $932 | | Stock-based compensation expense | $3,542 | $4,016 | $7,592 | $7,106 | | Other income, net | $(1,423) | $(2,061) | $(2,876) | $(4,110) | | Provision for income taxes | $19 | $4 | $23 | $4 | | Strategic alternative expenses | $— | $419 | $— | $425 | | **Adjusted EBITDA** | **$(1,752)** | **$(1,589)** | **$(3,500)** | **$(3,383)** | [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) Assesses the company's financial liquidity, including cash, cash equivalents, and short-term investments, and discusses future capital requirements and share repurchase activities - As of June 30, 2025, the company had **$94.3 million** in cash, cash equivalents, and short-term investments, with an accumulated deficit of **$341.5 million**[131](index=131&type=chunk)[152](index=152&type=chunk) - Net cash used in operating activities was **$5.2 million** for the six months ended June 30, 2025, and the company expects continued operating losses and negative cash flows in the foreseeable future due to strategic growth investments[131](index=131&type=chunk) - The company believes existing capital is sufficient for at least the next 12 months but may need additional funds for longer-term objectives, with future capital requirements dependent on market developments, expenditures, and potential acquisitions[132](index=132&type=chunk)[133](index=133&type=chunk)[134](index=134&type=chunk) - During the six months ended June 30, 2025, **477,992 shares** were repurchased for **$1.8 million** under the 2024 Stock Repurchase Program, with approximately **$2.0 million** remaining available[137](index=137&type=chunk) [Cash Flows](index=32&type=section&id=Cash%20Flows) Analyzes the company's cash flows from operating, investing, and financing activities for the six months ended June 30, 2025, and 2024 | Activity | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :----------------------------------- | :------------------------------- | :------------------------------- | | Net cash used in operating activities | $(5,239) | $(5,705) | | Net cash provided by investing activities | $5,850 | $15,283 | | Net cash used in financing activities | $(3,127) | $(23,064) | | **Net decrease in cash, cash equivalents, and restricted cash** | **$(2,178)** | **$(13,548)** | - Operating cash outflow for H1 2025 was primarily due to changes in operating assets and liabilities, including decreases in operating lease liabilities, accounts payable, and accrued expenses, and an increase in prepaid expenses[139](index=139&type=chunk) - Investing cash inflow for H1 2025 was driven by **$38.8 million** from maturities and sales of short-term investments, partially offset by **$32.5 million** in purchases[141](index=141&type=chunk) - Financing cash outflow for H1 2025 was mainly due to **$1.8 million** in common stock repurchases and **$1.3 million** in tax payments for stock-based compensation[143](index=143&type=chunk) [Interim Goodwill Impairment Assessment](index=33&type=section&id=Interim%20Goodwill%20Impairment%20Assessment) Reports on the interim goodwill impairment assessment conducted in Q2 2025, noting no impairment but identifying a future risk due to fair value proximity to carrying value - A quantitative assessment of goodwill was performed during Q2 2025 due to declining stock price and macroeconomic factors[145](index=145&type=chunk) - No impairment was recorded, but the fair value of the reporting unit exceeded its carrying value by less than **10%**, indicating a future risk of impairment[145](index=145&type=chunk) [Contractual Obligations](index=33&type=section&id=Contractual%20Obligations) States that no material changes in contractual obligations were reported compared to the previous annual filing - No material changes in contractual obligations were reported as of June 30, 2025, compared to the Form 10-K[146](index=146&type=chunk) [Recent Accounting Pronouncements](index=33&type=section&id=Recent%20Accounting%20Pronouncements) Refers to Note 1 for details on recently issued accounting pronouncements, specifically ASU 2023-09, and its expected impact - Refers to Note 1 for a description of recently issued accounting pronouncements, specifically ASU 2023-09 on Income Tax Disclosures, adopted in 2025, which will require additional disclosures but no financial impact[38](index=38&type=chunk)[147](index=147&type=chunk) [Emerging Growth Company](index=33&type=section&id=Emerging%20Growth%20Company) Identifies the company as an emerging growth company (EGC) and its election to use the extended transition period for new accounting standards - The company is an emerging growth company (EGC) and has elected to use the extended transition period for complying with new or revised accounting standards[148](index=148&type=chunk) [Critical Accounting Policies and Estimates](index=33&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Confirms no significant changes to critical accounting policies and estimates compared to the previous annual filing - No significant changes to critical accounting policies and estimates were reported compared to the Form 10-K[150](index=150&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details the company's exposure to various market risks, including interest rate sensitivity, foreign currency fluctuations, credit risk, and inflation, and outlines how these risks are managed or mitigated - A hypothetical **100 basis point** increase or decrease in interest rates would result in an approximate **$0.6 million** change in cash, cash equivalents, and short-term investments[153](index=153&type=chunk) - An adverse **10%** change in current foreign exchange rates could result in up to a **$1.6 million** decrease in net revenue for the six months ended June 30, 2025[155](index=155&type=chunk) - Credit risk on accounts receivable is mitigated by upfront payment requirements and a diverse seller base, with provisions for potential credit losses maintained[156](index=156&type=chunk) - Macroeconomic factors, including housing and capital market volatility, and geopolitical developments, continue to negatively impact certain metrics, and inflation could harm the business if costs cannot be offset by revenue increases[157](index=157&type=chunk) [Item 4. Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, at a reasonable assurance level, and reported no material changes in internal control over financial reporting - Disclosure controls and procedures were evaluated and deemed effective at the reasonable assurance level as of June 30, 2025[158](index=158&type=chunk) - No material changes in internal control over financial reporting were identified during the three months ended June 30, 2025[160](index=160&type=chunk) - Management acknowledges the inherent limitations of any control system, which cannot provide absolute assurance against errors or fraud[159](index=159&type=chunk)[162](index=162&type=chunk) [Part II - Other Information](index=36&type=section&id=Part%20II%20-%20Other%20Information) This section contains disclosures on legal proceedings, risk factors, unregistered sales of equity securities, other information, and an exhibit index [Item 1. Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) States that the company is involved in ordinary course legal proceedings but does not expect a material adverse effect - The company is involved in routine legal proceedings but does not expect any current matters to have a material adverse effect on its business, financial condition, or results of operations[164](index=164&type=chunk) [Item 1A. Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) Refers to the detailed discussion of risks in the 2024 Annual Report on Form 10-K, noting no material changes - No material changes to the risk factors disclosed in the 2024 Annual Report on Form 10-K were reported[165](index=165&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) States there were no unregistered sales of equity securities or use of proceeds - There were no unregistered sales of equity securities or use of proceeds during the period[167](index=167&type=chunk) [Item 5. Other Information](index=36&type=section&id=Item%205.%20Other%20Information) Discloses that no directors or officers adopted or terminated Rule 10b5-1 trading arrangements during the quarter - No directors or officers adopted or terminated Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements during the quarter ended June 30, 2025[168](index=168&type=chunk) [Item 6. Exhibits Index](index=37&type=section&id=Item%206.%20Exhibits%20Index) Provides a list of exhibits filed with the Form 10-Q - The section lists all exhibits filed with the Form 10-Q, including certifications, articles of incorporation, bylaws, and XBRL documents[172](index=172&type=chunk) [Signatures](index=38&type=section&id=Signatures) Official signatures for the Form 10-Q filing - The report was duly signed on behalf of 1stdibs.com, Inc. by Thomas Etergino, Chief Financial Officer, on August 7, 2025[175](index=175&type=chunk)

Executive Summary & Company Overview [Overall Performance Summary (CEO Comments)](index=1&type=section&id=Overall%20Performance%20Summary%20%28CEO%20Comments%29) Liberty Latin America achieved sustained growth in fixed-line and postpaid mobile subscribers in Q2 and H1 2025, benefiting from cost-cutting measures and strong adjusted OIBDA growth. The company plans to spin off Liberty Puerto Rico to unlock shareholder value, anticipating continued growth and cash flow from remaining operations - Sustained growth in fixed-line and postpaid mobile subscribers in Q2 and H1 2025, with over **100,000 new subscribers** in H1[3](index=3&type=chunk) - LLA achieved **7% and 8% year-over-year rebased adjusted OIBDA growth** in Q2 and H1 respectively, primarily driven by cost reductions[3](index=3&type=chunk) - Liberty Puerto Rico's business began to stabilize, achieving **21% year-over-year rebased adjusted OIBDA growth**[3](index=3&type=chunk) - The company plans to spin off Liberty Puerto Rico to unlock shareholder value, potentially through a spin-off[3](index=3&type=chunk) [Company Profile](index=13&type=section&id=Company%20Profile) Liberty Latin America is a leading communications company operating in over 20 countries across Latin America and the Caribbean, offering digital video, broadband internet, telephony, and mobile services, alongside enterprise-grade connectivity, data center, and hosting solutions. The company also operates an extensive subsea and terrestrial fiber optic network connecting over 30 markets in the region - Liberty Latin America operates in **over 20 countries** across Latin America and the Caribbean, providing digital video, broadband internet, telephony, and mobile services[40](index=40&type=chunk) - The company serves residential and business customers, offering enterprise-grade connectivity, data center, hosting, and managed solutions[40](index=40&type=chunk) - Operates subsea and terrestrial fiber optic cable networks connecting **over 30 markets** in the region[40](index=40&type=chunk) Consolidated Financial & Operating Highlights [Key Financial Metrics](index=2&type=section&id=Key%20Financial%20Metrics) In Q2 and H1 2025, Liberty Latin America's revenue and operating income (loss) decreased year-over-year, but adjusted OIBDA saw significant growth, reflecting improved cost efficiency. Capital expenditures decreased, while adjusted free cash flow remained negative 2025 Q2 and H1 Key Financial Data (USD, millions) | Metric | Q2 2025 (USD millions) | Q2 2024 (USD millions) | YoY Change | YoY Rebased Change | H1 2025 (USD millions) | H1 2024 (USD millions) | YoY Change | YoY Rebased Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | $1,087 | $1,118 | (3%) | (3%) | $2,170 | $2,217 | (2%) | (3%) | | Operating Income (Loss) | $(333) | $111 | (401%) | | $(205) | $204 | (201%) | | | Adjusted OIBDA | $415 | $389 | 7% | 7% | $822 | $763 | 8% | 8% | | Property & Equipment Additions | $150 | $180 | (16%) | | $271 | $315 | (14%) | | | Adjusted FCF | $(41) | $(18) | | | $(174) | $(168) | | | [Operating Income (Loss) & Adjusted OIBDA](index=6&type=section&id=Operating%20Income%20%28Loss%29%20%26%20Adjusted%20OIBDA) The company recorded operating losses in Q2 and H1 2025, primarily due to a **$494 million** impairment of Liberty Puerto Rico's spectrum license intangible assets. However, adjusted OIBDA grew by **7% and 8%** during the same periods, driven by growth in Liberty Caribbean, Liberty Puerto Rico, and C&W Panama, along with ongoing cost efficiencies - Operating losses in Q2 and H1 2025 were **$(333) million** and **$(205) million** respectively, primarily due to a **$494 million** impairment of Liberty Puerto Rico's spectrum license intangible assets[22](index=22&type=chunk) - Adjusted OIBDA grew by **7% and 8%** in Q2 and H1 2025 respectively, driven by growth in Liberty Caribbean, Liberty Puerto Rico, and C&W Panama, along with ongoing cost efficiencies[23](index=23&type=chunk) 2025 Q2 and H1 Adjusted OIBDA (USD, millions) | Metric | Q2 2025 (USD millions) | Q2 2024 (USD millions) | YoY Change | YoY Rebased Change | H1 2025 (USD millions) | H1 2024 (USD millions) | YoY Change | YoY Rebased Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Liberty Caribbean | $173.8 | $157.0 | 11% | 11% | $347.1 | $307.6 | 13% | 13% | | C&W Panama | $68.6 | $64.8 | 6% | 6% | $133.2 | $121.6 | 10% | 10% | | Liberty Networks | $60.8 | $63.1 | (4%) | (3%) | $118.7 | $122.3 | (3%) | (3%) | | Liberty Puerto Rico | $87.0 | $71.1 | 22% | 21% | $168.5 | $140.2 | 20% | 18% | | Liberty Costa Rica | $54.0 | $53.4 | 1% | —% | $112.9 | $111.7 | 1% | (1%) | | Corporate | $(29.2) | $(20.3) | (44%) | (44%) | $(58.8) | $(40.1) | (47%) | (47%) | | **Total** | **$415.0** | **$389.1** | **7%** | **7%** | **$821.6** | **$763.3** | **8%** | **8%** | | Adjusted OIBDA Margin | 38.2% | 34.8% | | | 37.9% | 34.4% | | | [Net Loss Attributable to Shareholders](index=7&type=section&id=Net%20Loss%20Attributable%20to%20Shareholders) Net loss attributable to shareholders significantly increased in Q2 and H1 2025, reaching **$(423) million** and **$(560) million** respectively, compared to **$(43) million** in the same periods last year - Net loss attributable to shareholders in Q2 and H1 2025 was **$(423) million** and **$(560) million** respectively, compared to **$(43) million** in the corresponding periods of 2024[25](index=25&type=chunk) Segment-Specific Business Highlights [Liberty Caribbean](index=2&type=section&id=Liberty%20Caribbean) Liberty Caribbean achieved record quarterly adjusted OIBDA performance, strong postpaid mobile subscriber growth, and a **480 basis point** increase in adjusted OIBDA margin to **47%** through cost reductions - Liberty Caribbean achieved **record quarterly adjusted OIBDA performance**[9](index=9&type=chunk) - Strong postpaid mobile subscriber growth; selective price increases in fixed-line services[9](index=9&type=chunk) - Adjusted OIBDA margin increased by **480 basis points** year-over-year to **47%**, driven by strong cost reductions[9](index=9&type=chunk) [C&W Panama](index=2&type=section&id=C%26W%20Panama) C&W Panama demonstrated strong mobile business performance with continued growth in postpaid mobile and broadband subscribers. However, year-over-year growth was impacted by a high comparative base in B2B business from the prior year, with better B2B performance expected in the second half - C&W Panama's mobile business demonstrated **strong performance**[9](index=9&type=chunk) - Continued growth in postpaid mobile and broadband subscribers[9](index=9&type=chunk) - Year-over-year growth impacted by a high B2B business base, with better performance expected in the second half[9](index=9&type=chunk) [Liberty Networks](index=2&type=section&id=Liberty%20Networks) Liberty Networks' revenue and adjusted OIBDA grew sequentially but were negatively impacted year-over-year by accelerated non-cash IRU recognition. The company is investing in subsea cable systems to support future recurring revenue - Liberty Networks' revenue and adjusted OIBDA grew sequentially[9](index=9&type=chunk) - Year-over-year revenue and adjusted OIBDA were negatively impacted by accelerated non-cash IRU recognition[9](index=9&type=chunk) - Investing in subsea cable systems to support future recurring revenue[9](index=9&type=chunk) [Liberty Puerto Rico](index=2&type=section&id=Liberty%20Puerto%20Rico) Liberty Puerto Rico's mobile business stabilized, and fixed-line revenue remained flat sequentially. Postpaid mobile churn showed a positive trend, with CVP launch planned for July to support growth. The company is aggressively cutting operating costs and capital expenditures - Liberty Puerto Rico's mobile business stabilized, with fixed-line revenue flat sequentially[9](index=9&type=chunk) - Postpaid mobile churn showed a positive trend; CVP launch planned for July to support growth[9](index=9&type=chunk) - Aggressively cutting operating costs and capital expenditures[9](index=9&type=chunk) [Liberty Costa Rica](index=2&type=section&id=Liberty%20Costa%20Rica) Liberty Costa Rica's strong mobile business performance offset competitive challenges in its fixed-line segment. Mobile revenue growth was driven by the ongoing migration of prepaid to postpaid subscribers, while the fixed-line subscriber base remained stable - Liberty Costa Rica's mobile business was strong, offsetting competitive challenges in fixed-line services[9](index=9&type=chunk) - Mobile revenue growth driven by the ongoing migration of prepaid to postpaid subscribers[9](index=9&type=chunk) - Fixed-line subscriber base remained stable[9](index=9&type=chunk) Detailed Financial Performance [Revenue Performance](index=4&type=section&id=Revenue%20Performance) In Q2 and H1 2025, consolidated revenue decreased by **3% and 2%** year-over-year respectively, primarily due to reduced revenue across all segments except Liberty Costa Rica. Segment revenue performance varied, with C&W Panama and Liberty Puerto Rico experiencing significant B2B revenue declines due to high prior-year comparables and project delays 2025 Q2 and H1 Revenue by Segment (USD, millions) | Segment | Q2 2025 (USD millions) | Q2 2024 (USD millions) | YoY Change (%) | YoY Rebased Change (%) | H1 2025 (USD millions) | H1 2024 (USD millions) | YoY Change (%) | YoY Rebased Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Liberty Caribbean | $366.3 | $368.3 | (1) | — | $730.2 | $732.5 | — | — | | C&W Panama | $177.3 | $197.2 | (10) | (10) | $354.3 | $366.4 | (3) | (3) | | Liberty Networks | $114.6 | $119.1 | (4) | (3) | $225.0 | $227.6 | (1) | — | | Liberty Puerto Rico | $301.3 | $308.6 | (2) | (5) | $599.7 | $635.8 | (6) | (8) | | Liberty Costa Rica | $151.3 | $147.2 | 3 | 1 | $309.5 | $299.5 | 3 | 2 | | Corporate | $3.8 | $5.9 | (36) | (36) | $7.7 | $11.0 | (30) | (30) | | Eliminations | $(27.9) | $(28.3) | N.M. | N.M. | $(56.2) | $(55.4) | N.M. | N.M. | | **Total** | **$1,086.7** | **$1,118.0** | **(3)** | **(3)** | **$2,170.2** | **$2,217.4** | **(2)** | **(3)** | - Liberty Caribbean mobile residential revenue grew by **5%** (**6% rebased**), driven by price increases in Jamaica and postpaid subscriber growth; fixed-line residential revenue decreased by **2%** (**1% rebased**), impacted by Hurricane Beryl[15](index=15&type=chunk)[17](index=17&type=chunk) - C&W Panama mobile residential revenue grew by **6%**, benefiting from postpaid subscriber growth and equipment sales; B2B revenue decreased by **30%** due to exceptionally strong project revenue in the prior year and project approval delays[17](index=17&type=chunk) - Liberty Puerto Rico residential fixed-line revenue decreased by **1%** as subscriber reductions offset price increases; residential mobile revenue decreased by **3% rebased**, impacted by fewer postpaid subscribers; B2B revenue decreased by **18%**[17](index=17&type=chunk) - Liberty Costa Rica revenue grew by **3%** (**1% rebased**), primarily driven by mobile revenue growth (postpaid subscribers and equipment sales) and increased fixed-line non-subscription revenue[18](index=18&type=chunk) [Adjusted OIBDA Performance by Segment](index=6&type=section&id=Adjusted%20OIBDA%20Performance%20by%20Segment) Adjusted OIBDA performance varied across segments, with Liberty Caribbean and Liberty Puerto Rico achieving significant growth, primarily due to improved cost efficiencies and reduced operating expenses. C&W Panama also grew, while growth in Liberty Networks and Liberty Costa Rica was offset by specific factors - Liberty Caribbean adjusted OIBDA grew by **11%** year-over-year and rebased, with margin improving by **480 basis points** to **47%**, primarily due to lower equipment costs, tax assessment impacts, and network and commercial expense efficiencies[21](index=21&type=chunk)[24](index=24&type=chunk) - C&W Panama adjusted OIBDA grew by **6%** year-over-year and rebased, with margin expanding by **580 basis points** to **39%**, mainly due to reduced low-margin project revenue and lower operating expenses[26](index=26&type=chunk) - Liberty Networks adjusted OIBDA decreased by **4%** year-over-year and **3% rebased**, primarily impacted by reduced non-cash IRU revenue[26](index=26&type=chunk) - Liberty Puerto Rico adjusted OIBDA grew by **22%** year-over-year and **21% rebased**, benefiting from lower bad debt expense, the phasing out of AT&T transition service agreement costs, and reduced employee and marketing costs[26](index=26&type=chunk) - Liberty Costa Rica adjusted OIBDA grew by **1%** year-over-year and was flat rebased, as revenue growth was offset by increased handset and bad debt expenses[26](index=26&type=chunk) [Capital Expenditures](index=8&type=section&id=Capital%20Expenditures) In Q2 and H1 2025, the company's property and equipment additions decreased by **16% and 14%** year-over-year respectively, with a corresponding decrease as a percentage of revenue. Investments across segments were adjusted in areas such as customer premises equipment, new build and upgrade, capacity, and baseline maintenance 2025 Q2 and H1 Property & Equipment Additions (USD, millions) | Category | Q2 2025 (USD millions) | Q2 2024 (USD millions) | H1 2025 (USD millions) | H1 2024 (USD millions) | | :--- | :--- | :--- | :--- | :--- | | Customer Premises Equipment | $38.1 | $46.0 | $81.0 | $87.3 | | New Build & Upgrade | $20.9 | $43.7 | $39.9 | $67.7 | | Capacity | $23.8 | $26.1 | $44.0 | $49.6 | | Baseline | $58.8 | $52.1 | $91.7 | $90.0 | | Product & Enablement | $8.6 | $11.7 | $13.9 | $19.9 | | **Total Property & Equipment Additions** | **$150.2** | **$179.6** | **$270.5** | **$314.5** | | As % of Revenue | 13.8% | 16.1% | 12.5% | 14.2% | - Property and equipment additions decreased by **16% and 14%** year-over-year in Q2 and H1 2025 respectively[5](index=5&type=chunk) - Homes built and upgraded decreased in both Q2 and H1, totaling **62,200** and **137,500** respectively[28](index=28&type=chunk) [Operating Performance Net of Capital Additions](index=9&type=section&id=Operating%20Performance%20Net%20of%20Capital%20Additions) In Q2 and H1 2025, operating income (loss) and adjusted OIBDA net of property and equipment additions both decreased, primarily due to the impairment of Liberty Puerto Rico's spectrum license intangible assets. However, adjusted OIBDA less property and equipment additions still grew by **26% and 23%** at the consolidated level - Operating income (loss) net of property and equipment additions in Q2 and H1 2025 was **$(483) million** and **$(475) million** respectively, primarily impacted by the impairment of Liberty Puerto Rico's spectrum license intangible assets[29](index=29&type=chunk) 2025 Q2 and H1 Adjusted OIBDA Less Property & Equipment Additions (USD, millions) | Segment | Q2 2025 (USD millions) | Q2 2024 (USD millions) | YoY Change (%) | H1 2025 (USD millions) | H1 2024 (USD millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Liberty Caribbean | $125.8 | $101.9 | 23 | $261.6 | $208.2 | 26 | | C&W Panama | $48.0 | $33.4 | 44 | $97.9 | $73.6 | 33 | | Liberty Networks | $40.7 | $48.5 | (16) | $80.2 | $95.9 | (16) | | Liberty Puerto Rico | $49.5 | $22.2 | 123 | $102.4 | $50.3 | 104 | | Liberty Costa Rica | $36.7 | $32.5 | 13 | $80.4 | $79.7 | 1 | | **Liberty Latin America** | **$264.8** | **$209.5** | **26** | **$551.1** | **$448.8** | **23** | [Average Revenue Per User (ARPU)](index=11&type=section&id=Average%20Revenue%20Per%20User%20%28ARPU%29) In Q2 2025, residential fixed-line ARPU and mobile ARPU both increased for Liberty Caribbean and Liberty Puerto Rico, while fixed-line ARPU decreased for C&W Panama and Liberty Costa Rica, and mobile ARPU remained stable or slightly increased 2025 Q2 Residential Fixed-Line ARPU (USD) | Segment | Q2 2025 (USD) | Q1 2025 (USD) | Sequential Change (%) | FX-Neutral Change (%) | | :--- | :--- | :--- | :--- | :--- | | Liberty Caribbean | $50.84 | $50.71 | — | 1 | | C&W Panama | $37.25 | $37.92 | (2) | (2) | | Liberty Puerto Rico | $78.63 | $77.02 | 2 | 2 | | Liberty Costa Rica | $39.07 | $40.96 | (5) | (4) | | Cable & Wireless Borrowing Group | $47.47 | $47.58 | — | — | 2025 Q2 Residential Mobile ARPU (USD) | Segment | Q2 2025 (USD) | Q1 2025 (USD) | Sequential Change (%) | FX-Neutral Change (%) | | :--- | :--- | :--- | :--- | :--- | | Liberty Caribbean | $15.62 | $15.19 | 3 | 3 | | C&W Panama | $12.15 | $12.13 | — | — | | Liberty Puerto Rico | $36.72 | $36.22 | 1 | 1 | | Liberty Costa Rica | $11.35 | $11.39 | — | — | | Cable & Wireless Borrowing Group | $13.87 | $13.66 | 2 | 2 | Debt, Leverage & Liquidity [Consolidated Debt & Cash Equivalents](index=10&type=section&id=Consolidated%20Debt%20%26%20Cash%20Equivalents) As of June 30, 2025, Liberty Latin America's total consolidated debt and finance lease obligations amounted to **$8,232.5 million**, with cash and cash equivalents totaling **$527.4 million** June 30, 2025 Consolidated Debt, Finance Lease Obligations & Cash (USD, millions) | Category | Debt (USD millions) | Finance Lease Obligations (USD millions) | Debt & Finance Lease Obligations (USD millions) | Cash, Cash Equivalents & Restricted Cash (USD millions) | | :--- | :--- | :--- | :--- | :--- | | Liberty Latin America | $2.0 | — | $2.0 | $50.5 | | C&W | $4,994.0 | — | $4,994.0 | $429.3 | | Liberty Puerto Rico | $2,747.4 | $4.1 | $2,751.5 | $35.1 | | Liberty Costa Rica | $485.0 | — | $485.0 | $12.5 | | **Total** | **$8,228.4** | **$4.1** | **$8,232.5** | **$527.4** | [Consolidated Leverage & Liquidity Ratios](index=10&type=section&id=Consolidated%20Leverage%20%26%20Liquidity%20Ratios) As of June 30, 2025, the company's consolidated gross leverage ratio was **5.0x**, and consolidated net leverage ratio was **4.7x**. The weighted average debt tenor was **4.9 years**, with a fully swapped borrowing cost of **6.5%**. The company had **$724.9 million** in undrawn borrowing capacity June 30, 2025 Consolidated Leverage & Liquidity Information | Metric | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Consolidated Debt & Finance Lease Obligations to Operating Income (Loss) Ratio | (20.1)x | 16.1x | | Consolidated Net Debt & Finance Lease Obligations to Operating Income (Loss) Ratio | (18.8)x | 15.0x | | Consolidated Gross Leverage Ratio | 5.0x | 4.9x | | Consolidated Net Leverage Ratio | 4.7x | 4.6x | | Weighted Average Debt Tenor | 4.9 years | 5.1 years | | Fully Swapped Borrowing Cost | 6.5% | 6.5% | | Undrawn Borrowing Capacity (USD millions) | $724.9 | $768.2 | Subscriber Information [Operating Highlights (Overall)](index=4&type=section&id=Operating%20Highlights%20%28Overall%29) In Q2 2025, the company's total subscribers slightly decreased, but fixed-line RGU and postpaid mobile subscribers achieved organic growth, while organic internet subscriber growth slowed 2025 Q2 Operating Highlights | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Total Subscribers | 1,904,600 | 1,907,200 | | Organic Subscriber Additions (Losses) | (2,600) | 1,300 | | Fixed-Line RGUs | 3,979,400 | 3,961,900 | | Organic RGU Additions | 17,500 | 19,100 | | Organic Internet Additions | 1,700 | 6,600 | | Mobile Subscribers | 6,643,600 | 6,728,500 | | Organic Mobile Subscriber Losses | (84,900) | (16,800) | | Organic Postpaid Additions | 25,600 | 36,400 | [Consolidated Operating Data (Detailed)](index=20&type=section&id=Consolidated%20Operating%20Data%20%28Detailed%29) As of June 30, 2025, the company reported **1,904,600** total subscribers, **3,979,400** total fixed-line RGUs, and **6,643,600** total mobile subscribers. Liberty Caribbean and C&W Panama were key contributors to mobile subscribers, while Liberty Costa Rica showed strong mobile subscriber performance June 30, 2025 Consolidated Operating Data | Segment | Homes Passed | Customer Relationships | Video RGUs | Internet RGUs | Telephony RGUs | Total RGUs | Prepaid Mobile Subscribers | Postpaid Mobile Subscribers | Total Mobile Subscribers | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Liberty Caribbean | 1,765,300 | 810,200 | 323,400 | 756,200 | 613,700 | 1,693,300 | 1,493,600 | 376,400 | 1,870,000 | | C&W Panama | 979,600 | 270,700 | 172,400 | 264,500 | 251,100 | 688,000 | 1,507,400 | 433,900 | 1,941,300 | | Liberty Puerto Rico | 1,193,000 | 530,700 | 218,800 | 504,700 | 283,300 | 1,006,800 | 180,600 | 521,700 | 702,300 | | Liberty Costa Rica | 858,000 | 293,000 | 203,600 | 281,900 | 105,800 | 591,300 | 1,063,800 | 1,066,200 | 2,130,000 | | **Total** | **4,795,900** | **1,904,600** | **918,200** | **1,807,300** | **1,253,900** | **3,979,400** | **4,245,400** | **2,398,200** | **6,643,600** | [Quarterly Subscriber Variance](index=21&type=section&id=Quarterly%20Subscriber%20Variance) In Q2 2025, the company experienced net losses in total customer relationships and total mobile subscribers, primarily due to historical database cleanup adjustments in Liberty Puerto Rico and prepaid mobile subscriber churn in Liberty Caribbean. However, fixed-line RGUs and postpaid mobile subscribers still achieved organic growth 2025 Q2 Subscriber Variance (vs Q1) | Segment | Homes Passed | Customer Relationships | Video RGUs | Internet RGUs | Telephony RGUs | Total RGUs | Prepaid Mobile Subscribers | Postpaid Mobile Subscribers | Total Mobile Subscribers | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Liberty Caribbean | 1,500 | (1,300) | (4,400) | 700 | 100 | (3,600) | (85,700) | 12,000 | (73,700) | | C&W Panama | 13,200 | 6,500 | 8,100 | 6,700 | 6,100 | 20,900 | (21,400) | 6,600 | (14,800) | | Liberty Puerto Rico | 600 | (8,100) | (2,600) | (6,600) | 2,300 | (6,900) | (5,500) | (9,900) | (15,400) | | Liberty Costa Rica | 10,100 | 300 | 2,100 | 900 | 4,100 | 7,100 | 2,100 | 16,900 | 19,000 | | **Total Organic Change** | **25,400** | **(2,600)** | **3,200** | **1,700** | **12,600** | **17,500** | **(110,500)** | **25,600** | **(84,900)** | | Q2 2025 Adjustment (Liberty Puerto Rico) | — | (31,300) | (7,100) | (29,900) | (9,000) | (46,000) | — | — | — | | **Net Additions (Losses)** | **25,400** | **(33,900)** | **(3,900)** | **(28,200)** | **3,600** | **(28,500)** | **(110,500)** | **25,600** | **(84,900)** | - Liberty Puerto Rico experienced a significant decrease in customer relationships and RGUs due to historical database cleanup adjustments[51](index=51&type=chunk) Borrowing Group Financials [Cable & Wireless Borrowing Group](index=14&type=section&id=Cable%20%26%20Wireless%20Borrowing%20Group) The C&W Borrowing Group saw a slight revenue decrease in Q2 and H1 2025, but operating profit and adjusted OIBDA both achieved significant growth, with improved margins. As of June 30, 2025, the group's total third-party debt was **$4.994 billion**, net debt was **$4.5 billion**, and it had **$584 million** in undrawn borrowing capacity 2025 Q2 and H1 C&W Borrowing Group Financial Data (USD, millions) | Metric | Q2 2025 (USD millions) | Q2 2024 (USD millions) | Change (%) | Rebased Change (%) | H1 2025 (USD millions) | H1 2024 (USD millions) | Change (%) | Rebased Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | $635.8 | $662.3 | (4) | (3) | $1,264.6 | $1,282.6 | (1) | (1) | | Operating Profit | $138.8 | $98.0 | 42 | | $262.3 | $178.4 | 47 | | | Adjusted OIBDA | $303.1 | $284.4 | 7 | 7 | $599.0 | $551.1 | 9 | 9 | | Adjusted OIBDA as % of Revenue | 47.7% | 42.9% | | | 47.4% | 43.0% | | | - As of June 30, 2025, the C&W Borrowing Group's total third-party debt was **$4.994 billion**, and net debt was **$4.5 billion**[44](index=44&type=chunk) - The C&W Borrowing Group's covenant proportionate net leverage ratio was **3.9x**, fully swapped borrowing cost was **6.3%**, and average debt tenor was approximately **6.0 years**[44](index=44&type=chunk) - As of June 30, 2025, the C&W Borrowing Group had **$584 million** in undrawn borrowing capacity[44](index=44&type=chunk) [Liberty Puerto Rico Borrowing Group](index=16&type=section&id=Liberty%20Puerto%20Rico%20Borrowing%20Group) The Liberty Puerto Rico Borrowing Group experienced a revenue decrease in Q2 and H1 2025, but adjusted OIBDA achieved significant growth with improved margins. However, operating loss substantially increased. As of June 30, 2025, the group's total debt and finance lease obligations were **$2.7515 billion**, net debt was **$2.7021 billion**, and it had **$116 million** in undrawn borrowing capacity 2025 Q2 and H1 Liberty Puerto Rico Borrowing Group Financial Data (USD, millions) | Metric | Q2 2025 (USD millions) | Q2 2024 (USD millions) | Change (%) | Rebased Change (%) | H1 2025 (USD millions) | H1 2024 (USD millions) | Change (%) | Rebased Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | $301.3 | $308.6 | (2) | (5) | $599.7 | $635.8 | (6) | (8) | | Operating Loss | $(474.8) | $(19.1) | N.M. | | $(471.0) | $(28.5) | N.M. | | | Adjusted OIBDA | $87.0 | $71.1 | 22 | 21 | $168.5 | $140.2 | 20 | 18 | | Adjusted OIBDA as % of Revenue | 28.9% | 23.0% | | | 28.1% | 22.1% | | | - As of June 30, 2025, the Liberty Puerto Rico Borrowing Group's total debt and finance lease obligations were **$2.7515 billion**, and net debt was **$2.7021 billion**[47](index=47&type=chunk) - LPR's covenant consolidated net leverage ratio was **7.9x**, fully swapped borrowing cost was **6.2%**, and average debt tenor was approximately **3.0 years**[47](index=47&type=chunk) - As of June 30, 2025, LPR had **$116 million** in undrawn borrowing capacity[47](index=47&type=chunk) [Liberty Costa Rica Borrowing Group](index=18&type=section&id=Liberty%20Costa%20Rica%20Borrowing%20Group) The Liberty Costa Rica Borrowing Group achieved revenue growth in Q2 and H1 2025, but operating profit and adjusted OIBDA slightly decreased or remained flat. As of June 30, 2025, the group's total debt was CRC **24.52 billion** (approximately **$485 million**), net debt was CRC **23.32 billion** (approximately **$461 million**), and it had **$25 million** in undrawn borrowing capacity 2025 Q2 and H1 Liberty Costa Rica Borrowing Group Financial Data (CRC, billions) | Metric | Q2 2025 (CRC billions) | Q2 2024 (CRC billions) | Change (%) | H1 2025 (CRC billions) | H1 2024 (CRC billions) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 76.7 | 75.6 | 1 | 156.5 | 153.9 | 2 | | Operating Profit | 12.9 | 14.2 | (9) | 28.6 | 31.6 | (9) | | Adjusted OIBDA | 27.4 | 27.4 | — | 57.1 | 57.4 | (1) | | Adjusted OIBDA as % of Revenue | 35.7% | 36.2% | | 36.5% | 37.3% | | - As of June 30, 2025, the Liberty Costa Rica Borrowing Group's total debt was CRC **24.52 billion** (approximately **$485 million**), and net debt was CRC **23.32 billion** (approximately **$461 million**)[49](index=49&type=chunk) - LCR's covenant consolidated net leverage ratio was **2.1x**, fully swapped borrowing cost was **10.7%**, and average debt tenor was approximately **5.1 years**[49](index=49&type=chunk) - As of June 30, 2025, LCR had **$25 million** in undrawn borrowing capacity[49](index=49&type=chunk) Legal & Non-GAAP Information [Forward-Looking Statements and Disclaimer](index=12&type=section&id=Forward-Looking%20Statements%20and%20Disclaimer) This press release contains forward-looking statements regarding the company's strategy, financial and operational performance, growth expectations, digital strategy, product innovation, subscriber growth, network recovery, Liberty Puerto Rico spin-off plans, balance sheet strength, and capital return policies. These statements involve risks and uncertainties that could cause actual results to differ materially from expectations, including natural disasters, competition, regulatory changes, economic factors, and M&A integration risks - Forward-looking statements cover company strategy, financial and operational performance, growth expectations, digital strategy, product innovation, and business plans[39](index=39&type=chunk) - Risks and uncertainties include natural disasters, political or social events, pandemics, competition, regulatory changes, economic factors, and M&A integration capabilities[39](index=39&type=chunk) - The company explicitly disclaims any obligation to update or revise any forward-looking statements[39](index=39&type=chunk) [Glossary](index=22&type=section&id=Glossary) This section provides definitions for key financial and operational terms used in the report, including Adjusted OIBDA, ARPU, Customer Relationships, Fixed-Line RGUs, Mobile Subscribers, Leverage Ratios, and Property & Equipment Additions categories, ensuring consistent understanding of the report's content for investors - Defines key financial and operational terms such as Adjusted OIBDA, ARPU, Customer Relationships, Fixed-Line RGUs, Mobile Subscribers, and Leverage Ratios[53](index=53&type=chunk)[55](index=55&type=chunk)[58](index=58&type=chunk)[62](index=62&type=chunk)[64](index=64&type=chunk)[63](index=63&type=chunk) - Explains the classification of property and equipment additions, including customer premises equipment, new build and upgrade, capacity, baseline, and product and enablement[69](index=69&type=chunk) - Provides additional general notes on SOHO customers, EBU calculations, and subscriber statistical methods[73](index=73&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk) [Non-GAAP Reconciliations](index=25&type=section&id=Non-GAAP%20Reconciliations) This section provides reconciliations of non-GAAP financial measures used by the company, such as Adjusted OIBDA, Adjusted Free Cash Flow, Rebased Growth Rates, and Consolidated Leverage Ratios, to their most directly comparable GAAP measures, explaining why management believes these metrics are useful to investors - Provides reconciliations for non-GAAP metrics such as Adjusted OIBDA, Adjusted Free Cash Flow, Rebased Revenue and Adjusted OIBDA Growth Rates, and Consolidated Leverage Ratios[76](index=76&type=chunk) - Management believes these non-GAAP metrics are useful for evaluating operating performance, comparing industry performance, and allocating resources[77](index=77&type=chunk) [Adjusted OIBDA Reconciliation](index=25&type=section&id=Adjusted%20OIBDA%20Reconciliation) Adjusted OIBDA is a primary metric used by company management to assess segment operating performance, derived by adjusting operating income (loss) for share-based compensation, depreciation and amortization, impairment, restructuring, and other operating items, aiming to provide a transparent view of operating performance unaffected by capital structure 2025 Q2 and H1 Operating Income (Loss) to Adjusted OIBDA Reconciliation (USD, millions) | Metric | Q2 2025 (USD millions) | Q2 2024 (USD millions) | H1 2025 (USD millions) | H1 2024 (USD millions) | | :--- | :--- | :--- | :--- | :--- | | Operating Income (Loss) | $(333.0) | $110.8 | $(204.9) | $203.6 | | Share-Based Compensation & Other Employee Incentive Plan Related Expenses | $13.3 | $16.0 | $47.3 | $43.0 | | Depreciation & Amortization | $217.5 | $236.7 | $446.3 | $484.5 | | Impairment, Restructuring & Other Operating Items, Net | $517.2 | $25.6 | $532.9 | $32.2 | | **Adjusted OIBDA** | **$415.0** | **$389.1** | **$821.6** | **$763.3** | | Operating Income (Loss) Margin | (30.6)% | 9.9% | (9.4)% | 9.2% | | Adjusted OIBDA Margin | 38.2% | 34.8% | 37.9% | 34.4% | [Adjusted Free Cash Flow Reconciliation](index=27&type=section&id=Adjusted%20Free%20Cash%20Flow%20Reconciliation) Adjusted Free Cash Flow (Adjusted FCF) is a non-GAAP metric measuring the company's ability to repay debt and fund new investment opportunities, derived by adjusting cash flow from operating activities, deducting capital expenditures and finance lease principal payments, and including specific cash receipts and payments 2025 Q2 and H1 Net Cash Flow from Operating Activities to Adjusted FCF Reconciliation (USD, millions) | Metric | Q2 2025 (USD millions) | Q2 2024 (USD millions) | H1 2025 (USD millions) | H1 2024 (USD millions) | | :--- | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | $141.2 | $156.9 | $165.8 | $180.2 | | Cash Payments for Direct Acquisition & Disposal Costs | $3.6 | $2.5 | $4.0 | $3.3 | | Intercompany Financing Fees | $46.2 | $48.6 | $80.8 | $80.8 | | Capital Expenditures, Net | $(139.3) | $(140.5) | $(236.0) | $(250.2) | | Principal Payments for Vendor & Intercompany Financing | $(86.5) | $(74.3) | $(145.8) | $(152.0) | | Principal Payments for Finance Leases | $(0.3) | $(0.3) | $(0.5) | $(0.5) | | Net Repayments of Handset Receivables Securitization | $(6.2) | — | $(13.0) | $(18.4) | | Adjusted FCF Before Distributions to Noncontrolling Interest Owners | $(41.3) | $(7.1) | $(144.7) | $(156.8) | | Distributions to Noncontrolling Interest Owners | — | $(10.7) | $(29.1) | $(10.7) | | **Adjusted FCF** | **$(41.3)** | **$(17.8)** | **$(173.8)** | **$(167.5)** | [Rebase Information](index=31&type=section&id=Rebase%20Information) Rebased growth rates are non-GAAP metrics used to adjust historical revenue and adjusted OIBDA to reflect the impact of acquisitions, dispositions, or transferred businesses, and are adjusted at current year average foreign exchange rates to provide an assessment of growth on a comparable basis - Rebased growth rates adjust historical revenue and adjusted OIBDA to include or exclude the impact of acquisitions, dispositions, or transferred businesses, and are adjusted at current year average foreign exchange rates[83](index=83&type=chunk) - Key rebase adjustments include Liberty Puerto Rico's acquisition of EchoStar spectrum and prepaid subscribers, and the closure of C&W Panama's DTH business[86](index=86&type=chunk) 2024 Q2 and H1 Rebased Revenue Reconciliation (USD, millions) | Segment | Q2 2024 Reported Revenue (USD millions) | Q2 2024 Rebased Revenue (USD millions) | Q2 2025 Reported Change (%) | Q2 2025 Rebased Change (%) | H1 2024 Reported Revenue (USD millions) | H1 2024 Rebased Revenue (USD millions) | H1 2025 Reported Change (%) | H1 2025 Rebased Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Liberty Caribbean | $368.3 | $366.5 | (1) | — | $732.5 | $729.3 | — | — | | C&W Panama | $197.2 | $196.2 | (10) | (10) | $366.4 | $364.3 | (3) | (3) | | Liberty Networks | $119.1 | $117.6 | (4) | (3) | $227.6 | $224.8 | (1) | — | | Liberty Puerto Rico | $308.6 | $318.0 | (2) | (5) | $635.8 | $654.7 | (6) | (8) | | Liberty Costa Rica | $147.2 | $149.3 | 3 | 1 | $299.5 | $304.3 | 3 | 2 | | Corporate | $5.9 | $5.9 | (36) | (36) | $11.0 | $11.0 | (30) | (30) | | Eliminations | $(28.3) | $(28.2) | N.M. | N.M. | $(55.4) | $(55.3) | N.M. | N.M. | | **Total** | **$1,118.0** | **$1,125.3** | **(3)** | **(3)** | **$2,217.4** | **$2,233.1** | **(2)** | **(3)** | 2024 Q2 and H1 Rebased Adjusted OIBDA Reconciliation (USD, millions) | Segment | Q2 2024 Reported OIBDA (USD millions) | Q2 2024 Rebased OIBDA (USD millions) | Q2 2025 Reported Change (%) | Q2 2025 Rebased Change (%) | H1 2024 Reported OIBDA (USD millions) | H1 2024 Rebased OIBDA (USD millions) | H1 2025 Reported Change (%) | H1 2025 Rebased Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Liberty Caribbean | $157.0 | $156.0 | 11 | 11 | $307.6 | $306.0 | 13 | 13 | | C&W Panama | $64.8 | $64.6 | 6 | 6 | $121.6 | $120.7 | 10 | 10 | | Liberty Networks | $63.1 | $62.9 | (4) | (3) | $122.3 | $121.9 | (3) | (3) | | Liberty Puerto Rico | $71.1 | $72.2 | 22 | 21 | $140.2 | $142.4 | 20 | 18 | | Liberty Costa Rica | $53.4 | $54.1 | 1 | — | $111.7 | $113.5 | 1 | (1) | | Corporate | $(20.3) | $(20.3) | (44) | (44) | $(40.1) | $(40.1) | (47) | (47) | | **Total** | **$389.1** | **$389.5** | **7** | **7** | **$763.3** | **$764.4** | **8** | **8** | [Consolidated Leverage Ratios Reconciliation](index=33&type=section&id=Consolidated%20Leverage%20Ratios%20Reconciliation) Consolidated leverage and net leverage ratios are non-GAAP metrics used to measure the company's overall debt level, comparing total debt (less cash) to annualized adjusted OIBDA for the most recent two quarters, providing a leverage assessment consistent with debt covenant calculations - Consolidated leverage and net leverage ratios are defined as the ratio of total debt (less cash) to annualized adjusted OIBDA for the most recent two quarters[98](index=98&type=chunk) - These ratios help investors assess the company's overall leverage and remain consistent with debt covenant calculations[98](index=98&type=chunk) June 30, 2025 and March 31, 2025 Consolidated Leverage Ratios Reconciliation (USD, millions) | Metric | June 30, 2025 (USD millions) | March 31, 2025 (USD millions) | | :--- | :--- | :--- | | Total Debt & Finance Lease Obligations | $8,159.9 | $8,173.0 | | Adjusted Total Debt & Finance Lease Obligations | $8,232.5 | $8,249.5 | | Net Debt & Finance Lease Obligations | $7,705.1 | $7,661.0 | | Annualized Adjusted OIBDA for Most Recent Two Quarters | $1,643.2 | $1,667.8 | | Consolidated Debt & Finance Lease Obligations to Operating Income (Loss) Ratio | (20.1)x | 16.1x | | Consolidated Net Debt & Finance Lease Obligations to Operating Income (Loss) Ratio | (18.8)x | 15.0x | | Consolidated Leverage Ratio | 5.0x | 4.9x | | Consolidated Net Leverage Ratio | 4.7x | 4.6x | [Borrowing Group Reconciliations](index=34&type=section&id=Borrowing%20Group%20Reconciliations) This section provides reconciliations of non-GAAP financial measures, such as Adjusted OIBDA and Proportionate Adjusted OIBDA, for the C&W, Liberty Puerto Rico, and Liberty Costa Rica Borrowing Groups, to help investors better understand the independent financial performance of each group - Borrowing Group Adjusted OIBDA is defined as operating income (loss) adjusted for share-based compensation, depreciation and amortization, related party fees and distributions, impairment, restructuring, and other operating items[102](index=102&type=chunk) - Proportionate Adjusted OIBDA is Adjusted OIBDA less the noncontrolling interest share[102](index=102&type=chunk) 2025 Q2 and H1 C&W Borrowing Group Operating Profit to Adjusted OIBDA Reconciliation (USD, millions) | Metric | Q2 2025 (USD millions) | Q2 2024 (USD millions) | H1 2025 (USD millions) | H1 2024 (USD millions) | | :--- | :--- | :--- | :--- | :--- | | Operating Profit | $138.8 | $98.0 | $262.3 | $178.4 | | Share-Based Compensation & Other Employee Incentive Plan Related Expenses | $4.4 | $6.5 | $12.6 | $14.4 | | Depreciation & Amortization | $119.0 | $143.0 | $252.1 | $296.5 | | Related Party Fees & Distributions | $29.1 | $26.8 | $53.9 | $48.0 | | Impairment, Restructuring & Other Operating Items, Net | $11.8 | $10.1 | $18.1 | $13.8 | | **Adjusted OIBDA** | **$303.1** | **$284.4** | **$599.0** | **$551.1** | | Less: Noncontrolling Interest Share of Adjusted OIBDA | $51.3 | $48.3 | $100.5 | $91.8 | | **Proportionate Adjusted OIBDA** | **$251.8** | **$236.1** | **$498.5** | **$459.3** | 2025 Q2 and H1 Liberty Puerto Rico Borrowing Group Operating Income (Loss) to Adjusted OIBDA Reconciliation (USD, millions) | Metric | Q2 2025 (USD millions) | Q2 2024 (USD millions) | H1 2025 (USD millions) | H1 2024 (USD millions) | | :--- | :--- | :--- | :--- | :--- | | Operating Income (Loss) | $(474.8) | $(19.1) | $(471.0) | $(28.5) | | Share-Based Compensation & Other Employee Incentive Plan Related Expenses | $1.0 | $1.9 | $2.6 | $4.4 | | Depreciation & Amortization | $62.6 | $62.0 | $122.8 | $124.8 | | Related Party Fees & Distributions | $13.4 | $13.4 | $25.6 | $26.0 | | Impairment, Restructuring & Other Operating Items, Net | $484.8 | $12.9 | $488.5 | $13.5 | | **Adjusted OIBDA** | **$87.0** | **$71.1** | **$168.5** | **$140.2** | 2025 Q2 and H1 Liberty Costa Rica Borrowing Group Operating Profit to Adjusted OIBDA Reconciliation (CRC, billions) | Metric | Q2 2025 (CRC billions) | Q2 2024 (CRC billions) | H1 2025 (CRC billions) | H1 2024 (CRC billions) | | :--- | :--- | :--- | :--- | :--- | | Operating Profit | 12.9 | 14.2 | 28.6 | 31.6 | | Share-Based Compensation & Other Employee Incentive Plan Related Expenses | 0.4 | 0.4 | 0.6 | 0.4 | | Depreciation & Amortization | 13.6 | 12.3 | 26.9 | 24.5 | | Related Party Fees & Distributions | 0.6 | 0.4 | 0.9 | 0.7 | | Impairment, Restructuring & Other Operating Items, Net | (0.1) | 0.1 | 0.1 | 0.2 | | **Adjusted OIBDA** | **27.4** | **27.4** | **57.1** | **57.4** |

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Q2 & H1 2025 Performance Overview](index=1&type=section&id=Q2%20%26%20H1%202025%20Performance%20Overview) Liberty Latin America achieved sustained growth in broadband and postpaid mobile subscribers in Q2 and H1 2025, adding over 100,000 subscribers in the first half. Despite rebased revenue decline due to high B2B comparables, adjusted OIBDA grew 7% and 8% year-over-year in Q2 and H1, respectively, driven by cost efficiencies - Sustained growth in broadband and postpaid mobile subscribers[2](index=2&type=chunk) - Liberty Caribbean, C&W Panama, and Liberty Costa Rica added approximately **45,000 organic broadband and postpaid subscribers** in Q2, with over **100,000 cumulative additions** in H1[3](index=3&type=chunk) - LLA achieved **7% and 8% rebased adjusted OIBDA growth** in Q2 and H1, respectively[3](index=3&type=chunk) - LLA's rebased revenue year-over-year growth was impacted by higher B2B project revenue in the prior year, with B2B expected to be a growth catalyst in H2[3](index=3&type=chunk) [Strategic Initiatives & Shareholder Value](index=1&type=section&id=Strategic%20Initiatives%20%26%20Shareholder%20Value) Liberty Latin America plans to spin off Liberty Puerto Rico to unlock shareholder value, ensuring a strong and sustainable capital structure for the remaining Cable & Wireless and Liberty Costa Rica businesses, which are expected to continue OIBDA growth and generate significant cash flow with lower leverage - Company plans to enhance shareholder value through the spin-off of Liberty Puerto Rico[2](index=2&type=chunk) - Post-spin, Cable & Wireless and Liberty Costa Rica are expected to benefit from strong investments in fixed and mobile infrastructure, delivering sustained adjusted OIBDA growth and significant cash flow, supporting an attractive capital return policy of dividends and/or share repurchases with lower leverage[3](index=3&type=chunk) [Consolidated Financial & Operating Highlights](index=2&type=section&id=Consolidated%20Financial%20%26%20Operating%20Highlights) [Key Financial Metrics](index=2&type=section&id=Key%20Financial%20Metrics) In Q2 2025, LLA's revenue decreased by 3%, with an operating loss of $333 million, primarily due to a $494 million impairment of Liberty Puerto Rico's spectrum license intangible asset; adjusted OIBDA, however, increased 7% to $415 million. H1 revenue declined 2%, operating loss was $205 million, and adjusted OIBDA grew 8% to $822 million, while property and equipment additions decreased 16% in Q2 and 14% in H1 2025 Q2 & H1 Key Financial Data (USD in millions) | Metric (USD in millions) | Q2 2025 | Q2 2024 | YoY Increase / (Decline) | YoY Rebased Increase / (Decline) | H1 2025 | H1 2024 | YoY Increase / (Decline) | YoY Rebased Increase / (Decline) | | :----------------------- | :------ | :------ | :----------------------- | :------------------------------- | :------ | :------ | :----------------------- | :------------------------------- | | Revenue | 1,087 | 1,118 | (3%) | (3%) | 2,170 | 2,217 | (2%) | (3%) | | Operating income (loss) | (333) | 111 | (401%) | | (205) | 204 | (201%) | | | Adjusted OIBDA | 415 | 389 | 7% | 7% | 822 | 763 | 8% | 8% | | Property & equipment additions | 150 | 180 | (16%) | | 271 | 315 | (14%) | | - Operating loss in Q2 and H1 2025 primarily due to a **$494 million impairment** of Liberty Puerto Rico's spectrum license intangible asset[22](index=22&type=chunk) [Key Operating Metrics](index=4&type=section&id=Key%20Operating%20Metrics) In Q2 2025, LLA experienced a net organic customer loss of 2,600, contrasting with a gain of 1,300 in Q1; fixed RGUs increased by 17,500, but mobile subscribers saw an organic loss of 84,900, mainly from prepaid users, despite 25,600 new postpaid additions 2025 Q2 & Q1 Operating Highlights | Operating Highlights | Q2 2025 | Q1 2025 | | :------------------- | :------ | :------ | | Total customers | 1,904,600 | 1,907,200 | | Organic customer additions (losses) | (2,600) | 1,300 | | Fixed RGUs | 3,979,400 | 3,961,900 | | Organic RGU additions | 17,500 | 19,100 | | Organic internet additions | 1,700 | 6,600 | | Mobile subscribers | 6,643,600 | 6,728,500 | | Organic mobile losses | (84,900) | (16,800) | | Organic postpaid additions | 25,600 | 36,400 | [Segment Performance Analysis](index=4&type=section&id=Segment%20Performance%20Analysis) [Revenue Highlights by Segment](index=4&type=section&id=Revenue%20Highlights%20by%20Segment) Consolidated revenue for Q2 and H1 2025 decreased by 3% and 2% respectively, primarily due to reduced revenue across all segments except Liberty Costa Rica, with B2B revenue significantly impacted by high prior-year project revenue and current project approval delays 2025 Q2 & H1 Revenue by Segment (USD in millions) | Segment (USD in millions) | Q2 2025 | Q2 2024 | Reported % Change | Rebased % Change | H1 2025 | H1 2024 | Reported % Change | Rebased % Change | | :------------------------ | :------ | :------ | :---------------- | :--------------- | :------ | :------ | :---------------- | :--------------- | | Liberty Caribbean | 366.3 | 368.3 | (1) | — | 730.2 | 732.5 | — | — | | C&W Panama | 177.3 | 197.2 | (10) | (10) | 354.3 | 366.4 | (3) | (3) | | Liberty Networks | 114.6 | 119.1 | (4) | (3) | 225.0 | 227.6 | (1) | — | | Liberty Puerto Rico | 301.3 | 308.6 | (2) | (5) | 599.7 | 635.8 | (6) | (8) | | Liberty Costa Rica | 151.3 | 147.2 | 3 | 1 | 309.5 | 299.5 | 3 | 2 | | Corporate | 3.8 | 5.9 | (36) | (36) | 7.7 | 11.0 | (30) | (30) | | Eliminations | (27.9) | (28.3) | N.M. | N.M. | (56.2) | (55.4) | N.M. | N.M. | | Total | 1,086.7 | 1,118.0 | (3) | (3) | 2,170.2 | 2,217.4 | (2) | (3) | - Reported revenue for Q2 and H1 2025 decreased, primarily due to reduced revenue across all segments except Liberty Costa Rica[15](index=15&type=chunk) [Liberty Caribbean](index=4&type=section&id=Liberty%20Caribbean_Revenue) Liberty Caribbean's rebased revenue remained flat year-over-year, with mobile residential revenue growing 6% due to higher prepaid ARPU and new postpaid subscribers, while fixed residential revenue declined 1% impacted by Hurricane Beryl and reduced non-subscription revenue, and B2B revenue decreased 3% due to high prior-year project revenue - Liberty Caribbean's rebased revenue remained flat year-over-year[15](index=15&type=chunk) - Mobile residential revenue increased **5% (reported) and 6% (rebased)** year-over-year, driven by higher prepaid ARPU in Jamaica following price increases and **41,000 new organic postpaid subscribers** over the past 12 months[15](index=15&type=chunk) - Fixed residential revenue decreased **2% (reported) and 1% (rebased)** year-over-year, primarily due to lower volumes impacted by Hurricane Beryl in Q3 2024 and reduced non-subscription revenue, partially offset by ARPU growth[17](index=17&type=chunk) [C&W Panama](index=5&type=section&id=C%26W%20Panama_Revenue) C&W Panama's rebased revenue decreased 10% year-over-year, with mobile residential revenue growing 6% due to new postpaid subscribers and equipment sales, despite national protests affecting prepaid business, while fixed residential revenue grew 2% driven by broadband RGU additions and churn management, and B2B revenue declined 30% due to exceptionally strong prior-year project revenue and current project approval delays - C&W Panama's rebased revenue decreased **10%** year-over-year[17](index=17&type=chunk) - Mobile residential revenue increased **6% (reported and rebased)** year-over-year, a combined effect of **26,000 new organic postpaid subscribers** over the past 12 months, increased equipment sales, and the negative impact of national protests on the prepaid business[17](index=17&type=chunk) - B2B revenue decreased **30% (reported and rebased)** year-over-year, primarily reflecting exceptionally strong project revenue in the prior year and reduced contributions from project approval delays this year[17](index=17&type=chunk) [Liberty Networks](index=5&type=section&id=Liberty%20Networks_Revenue) Liberty Networks' rebased revenue decreased 3% year-over-year, primarily due to reduced wholesale revenue from accelerated recognition of non-cash IRU revenue in the prior year, partially offset by new leased capacity sales, while enterprise IT-as-a-service and connectivity revenue growth was offset by reduced project-related revenue - Liberty Networks' rebased revenue decreased **3%** year-over-year, primarily due to reduced wholesale revenue from accelerated recognition of non-cash IRU revenue in the prior year, partially offset by new leased capacity sales[17](index=17&type=chunk) [Liberty Puerto Rico](index=5&type=section&id=Liberty%20Puerto%20Rico_Revenue) Liberty Puerto Rico's rebased revenue decreased 5% year-over-year, with residential fixed revenue declining 1% as ARPU growth from a February 2025 price increase was offset by a shrinking subscriber base, including the impact of the ACP program ending, and residential mobile revenue decreasing 3% due to postpaid mobile subscriber losses from migration disruptions, while B2B revenue fell 18% due to a smaller subscriber base and lower mobile ARPU, though sequential revenue grew 1% driven by residential and roaming revenue - Liberty Puerto Rico's rebased revenue decreased **5%** year-over-year[17](index=17&type=chunk) - Residential fixed revenue decreased **1%** year-over-year on a rebased basis, primarily due to higher ARPU from price increases implemented in February 2025 being offset by a shrinking subscriber base, including the impact of the ACP program ending[17](index=17&type=chunk) - Residential mobile revenue decreased **3%** year-over-year on a rebased basis, primarily due to postpaid mobile subscriber losses from migration disruptions[17](index=17&type=chunk) - Puerto Rico revenue increased **1% sequentially**, driven by residential revenue growth, including increased roaming revenue, partially offset by lower FCC and B2B revenue[16](index=16&type=chunk) [Liberty Costa Rica](index=6&type=section&id=Liberty%20Costa%20Rica_Revenue) Liberty Costa Rica's rebased revenue increased 1% year-over-year, driven by mobile revenue growth from postpaid subscriber additions and increased mobile equipment sales, along with higher fixed non-subscription revenue, offsetting headwinds in residential fixed subscription ARPU - Liberty Costa Rica's rebased revenue increased **1%** year-over-year, primarily driven by mobile revenue growth from postpaid subscriber additions and increased mobile equipment sales, along with higher fixed non-subscription revenue, offsetting headwinds in residential fixed subscription ARPU[18](index=18&type=chunk) [Adjusted OIBDA Highlights by Segment](index=6&type=section&id=Adjusted%20OIBDA%20Highlights%20by%20Segment) Consolidated rebased adjusted OIBDA for Q2 and H1 2025 grew 7% and 8% year-over-year respectively, driven by growth in Liberty Caribbean, Liberty Puerto Rico, and C&W Panama, alongside ongoing cost efficiency improvements 2025 Q2 & H1 Adjusted OIBDA by Segment (USD in millions) | Segment (USD in millions) | Q2 2025 | Q2 2024 | Reported % Change | Rebased % Change | H1 2025 | H1 2024 | Reported % Change | Rebased % Change | | :------------------------ | :------ | :------ | :---------------- | :--------------- | :------ | :------ | :---------------- | :--------------- | | Liberty Caribbean | 173.8 | 157.0 | 11 | 11 | 347.1 | 307.6 | 13 | 13 | | C&W Panama | 68.6 | 64.8 | 6 | 6 | 133.2 | 121.6 | 10 | 10 | | Liberty Networks | 60.8 | 63.1 | (4) | (3) | 118.7 | 122.3 | (3) | (3) | | Liberty Puerto Rico | 87.0 | 71.1 | 22 | 21 | 168.5 | 140.2 | 20 | 18 | | Liberty Costa Rica | 54.0 | 53.4 | 1 | — | 112.9 | 111.7 | 1 | (1) | | Corporate | (29.2) | (20.3) | (44) | (44) | (58.8) | (40.1) | (47) | (47) | | Total | 415.0 | 389.1 | 7 | 7 | 821.6 | 763.3 | 8 | 8 | | Adjusted OIBDA margin | 38.2 % | 34.8 % | | | 37.9 % | 34.4 % | | | - Reported adjusted OIBDA for Q2 and H1 2025 increased **7% and 8%**, respectively, driven by growth in Liberty Caribbean, Liberty Puerto Rico, and C&W Panama[23](index=23&type=chunk) [Liberty Caribbean](index=6&type=section&id=Liberty%20Caribbean_OIBDA) Liberty Caribbean's rebased adjusted OIBDA grew 11% year-over-year, with its adjusted OIBDA margin improving 480 basis points to 47%, primarily due to lower equipment costs, a prior-year tax assessment, and ongoing cost efficiencies in network and commercial expenses - Liberty Caribbean's rebased adjusted OIBDA grew **11%** year-over-year[21](index=21&type=chunk) - Adjusted OIBDA margin improved **480 basis points to 47%** year-over-year, reflecting lower equipment costs, a prior-year tax assessment, and ongoing cost efficiencies in network and commercial expenses[21](index=21&type=chunk)[24](index=24&type=chunk) [C&W Panama](index=7&type=section&id=C%26W%20Panama_OIBDA) C&W Panama's rebased adjusted OIBDA grew 6% year-over-year, with its margin expanding 580 basis points to 39%, primarily due to reduced low-margin project revenue and lower operating expenses - C&W Panama's rebased adjusted OIBDA grew **6%**, with its margin expanding **580 basis points to 39%**, primarily due to reduced low-margin project revenue and lower operating expenses[26](index=26&type=chunk) [Liberty Networks](index=7&type=section&id=Liberty%20Networks_OIBDA) Liberty Networks' rebased adjusted OIBDA decreased 3% year-over-year, primarily due to reduced non-cash IRU revenue, partially offset by lower bad debt expense - Liberty Networks' rebased adjusted OIBDA decreased **3%** year-over-year, primarily due to reduced non-cash IRU revenue, partially offset by lower bad debt expense[26](index=26&type=chunk) [Liberty Puerto Rico](index=7&type=section&id=Liberty%20Puerto%20Rico_OIBDA) Liberty Puerto Rico's rebased adjusted OIBDA grew 21% year-over-year despite rebased revenue decline, driven by lower bad debt expense, the phasing out of upfront costs related to the AT&T transition services agreement, and reduced employee and marketing costs, while sequentially, adjusted OIBDA grew 7% - Liberty Puerto Rico's rebased adjusted OIBDA grew **21%** year-over-year, primarily due to lower bad debt expense, the phasing out of upfront costs related to the AT&T transition services agreement, and reduced employee and marketing costs[26](index=26&type=chunk) - Adjusted OIBDA increased **7% sequentially**, driven by revenue growth and a reduction in full-time employees following workforce restructuring, along with lower professional services costs[26](index=26&type=chunk) [Liberty Costa Rica](index=7&type=section&id=Liberty%20Costa%20Rica_OIBDA) Liberty Costa Rica's rebased adjusted OIBDA remained flat year-over-year, as revenue growth was offset by increased handset and bad debt expenses - Liberty Costa Rica's rebased adjusted OIBDA remained flat year-over-year, as revenue growth was offset by increased handset and bad debt expenses[26](index=26&type=chunk) [Capital Expenditures & Cash Flow](index=8&type=section&id=Capital%20Expenditures%20%26%20Cash%20Flow) [Property & Equipment Additions](index=8&type=section&id=Property%20%26%20Equipment%20Additions) In Q2 2025, total property and equipment additions decreased 16% to $150.2 million, and 14% to $270.5 million for H1, with additions as a percentage of revenue falling from 16% to 14% in Q2 and 14% to 12% in H1, and new build and upgraded homes significantly declining in both periods Property & Equipment Additions (USD in millions) | Property & Equipment Additions (USD in millions) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :----------------------------------------------- | :------ | :------ | :------ | :------ | | Customer Premises Equipment | 38.1 | 46.0 | 81.0 | 87.3 | | New Build & Upgrade | 20.9 | 43.7 | 39.9 | 67.7 | | Capacity | 23.8 | 26.1 | 44.0 | 49.6 | | Baseline | 58.8 | 52.1 | 91.7 | 90.0 | | Product & Enablers | 8.6 | 11.7 | 13.9 | 19.9 | | **Total Property & equipment additions** | **150.2** | **179.6** | **270.5** | **314.5** | | Property & equipment additions as % of revenue | 13.8 % | 16.1 % | 12.5 % | 14.2 % | New Build and Homes Upgraded | New Build and Homes Upgraded | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--------------------------- | :------ | :------ | :------ | :------ | | Liberty Caribbean | 14,100 | 41,400 | 36,300 | 63,800 | | C&W Panama | 17,200 | 13,100 | 39,500 | 30,400 | | Liberty Puerto Rico | 900 | 15,600 | 1,700 | 29,400 | | Liberty Costa Rica | 30,000 | 23,800 | 60,000 | 42,900 | | **Total** | **62,200** | **93,900** | **137,500** | **166,500** | [Operating Income (Loss) less P&E Additions](index=9&type=section&id=Operating%20Income%20(Loss)%20less%20P%26E%20Additions) Operating income (loss) less property and equipment additions significantly declined to $(483) million in Q2 2025 and $(475) million in H1 2025, primarily due to the $494 million impairment of Liberty Puerto Rico's spectrum license intangible asset - Operating income (loss) less property and equipment additions decreased to **$(483) million** in Q2 2025 and **$(475) million** in H1 2025, primarily due to the impairment of Liberty Puerto Rico's spectrum license intangible asset[29](index=29&type=chunk) [Adjusted OIBDA less P&E Additions](index=9&type=section&id=Adjusted%20OIBDA%20less%20P%26E%20Additions) Adjusted OIBDA less property and equipment additions increased 26% to $264.8 million in Q2 2025 and 23% to $551.1 million in H1 2025, indicating improved operational efficiency relative to capital expenditures Adjusted OIBDA less P&E Additions (USD in millions) | Adjusted OIBDA less P&E Additions (USD in millions) | Q2 2025 | Q2 2024 | % Change | H1 2025 | H1 2024 | % Change | | :-------------------------------------------------- | :------ | :------ | :------- | :------ | :------ | :------- | | Liberty Caribbean | 125.8 | 101.9 | 23 | 261.6 | 208.2 | 26 | | C&W Panama | 48.0 | 33.4 | 44 | 97.9 | 73.6 | 33 | | Liberty Networks | 40.7 | 48.5 | (16) | 80.2 | 95.9 | (16) | | Liberty Puerto Rico | 49.5 | 22.2 | 123 | 102.4 | 50.3 | 104 | | Liberty Costa Rica | 36.7 | 32.5 | 13 | 80.4 | 79.7 | 1 | | **Liberty Latin America (Consolidated)** | **264.8** | **209.5** | **26** | **551.1** | **448.8** | **23** | [Adjusted Free Cash Flow](index=27&type=section&id=Adjusted%20Free%20Cash%20Flow) Adjusted Free Cash Flow (FCF) remained negative in Q2 and H1 2025, with net outflows of $(41.3) million and $(173.8) million respectively, showing a slight increase in outflows compared to prior periods Adjusted Free Cash Flow (USD in millions) | Metric (USD in millions) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :----------------------- | :------ | :------ | :------ | :------ | | Net cash provided by operating activities | 141.2 | 156.9 | 165.8 | 180.2 | | Capital expenditures, net | (139.3) | (140.5) | (236.0) | (250.2) | | Adjusted FCF before distributions to noncontrolling interest owners | (41.3) | (7.1) | (144.7) | (156.8) | | Distributions to noncontrolling interest owners | — | (10.7) | (29.1) | (10.7) | | **Adjusted FCF** | **(41.3)** | **(17.8)** | **(173.8)** | **(167.5)** | [Debt, Leverage & Liquidity](index=10&type=section&id=Debt,%20Leverage%20%26%20Liquidity) [Consolidated Debt and Cash Position](index=10&type=section&id=Consolidated%20Debt%20and%20Cash%20Position) As of June 30, 2025, Liberty Latin America reported total debt and finance lease obligations of $8.2325 billion, with cash and cash equivalents totaling $527.4 million June 30, 2025 Debt and Cash Position (USD in millions) | Metric (USD in millions) | June 30, 2025 | | :----------------------- | :------------ | | Debt | 8,228.4 | | Finance lease obligations | 4.1 | | **Total Debt and finance lease obligations** | **8,232.5** | | Cash, cash equivalents and restricted cash related to debt | 527.4 | [Consolidated Leverage Ratios](index=10&type=section&id=Consolidated%20Leverage%20Ratios) As of June 30, 2025, the consolidated gross leverage ratio slightly increased to 5.0x, and the net leverage ratio rose to 4.7x, while unused borrowing capacity decreased from $768.2 million to $724.9 million Consolidated Leverage and Liquidity Information | Consolidated Leverage and Liquidity Information | June 30, 2025 | March 31, 2025 | | :---------------------------------------------- | :------------ | :------------- | | Consolidated debt and finance lease obligations to operating income (loss) ratio | (20.1)x | 16.1x | | Consolidated net debt and finance lease obligations to operating income (loss) ratio | (18.8)x | 15.0x | | Consolidated gross leverage ratio | 5.0x | 4.9x | | Consolidated net leverage ratio | 4.7x | 4.6x | | Weighted average debt tenor | 4.9 years | 5.1 years | | Fully-swapped borrowing costs | 6.5% | 6.5% | | Unused borrowing capacity (in millions) | $724.9 | $768.2 | [Average Revenue Per User (ARPU)](index=11&type=section&id=Average%20Revenue%20Per%20User%20(ARPU)) In Q2 2025, residential fixed ARPU showed mixed performance across segments, with Liberty Puerto Rico seeing a 2% FX-neutral increase, while C&W Panama and Liberty Costa Rica experienced declines; residential mobile ARPU generally increased or remained stable, with Liberty Caribbean showing a 3% FX-neutral growth Residential Fixed ARPU per Customer Relationship | Residential Fixed ARPU per Customer Relationship | June 30, 2025 | March 31, 2025 | FX-Neutral % Change | | :----------------------------------------------- | :------------ | :------------- | :------------------ | | Liberty Caribbean | $50.84 | $50.71 | 1% | | C&W Panama | $37.25 | $37.92 | (2%) | | Liberty Puerto Rico | $78.63 | $77.02 | 2% | | Liberty Costa Rica | $39.07 | $40.96 | (4%) | | Cable & Wireless Borrowing Group | $47.47 | $47.58 | —% | Residential Mobile ARPU | Residential Mobile ARPU | June 30, 2025 | March 31, 2025 | FX-Neutral % Change | | :---------------------- | :------------ | :------------- | :------------------ | | Liberty Caribbean | $15.62 | $15.19 | 3% | | C&W Panama | $12.15 | $12.13 | —% | | Liberty Puerto Rico | $36.72 | $36.22 | 1% | | Liberty Costa Rica | $11.35 | $11.39 | —% | | Cable & Wireless Borrowing Group | $13.87 | $13.66 | 2% | [Subscriber Information](index=20&type=section&id=Subscriber%20Information) [Total Subscribers by Segment](index=20&type=section&id=Total%20Subscribers%20by%20Segment) As of June 30, 2025, Liberty Latin America reported 1,904,600 total customer relationships, 3,979,400 fixed RGUs, and 6,643,600 total mobile subscribers, with Liberty Costa Rica having the most mobile subscribers (2,130,000) and Liberty Caribbean the most fixed RGUs (1,693,300) June 30, 2025 Operating Data | Operating Data — June 30, 2025 | Homes Passed | Customer Relationships | Video RGUs | Internet RGUs | Telephony RGUs | Total Fixed RGUs | Prepaid Mobile | Postpaid Mobile | Total Mobile Subscribers | | :----------------------------- | :----------- | :--------------------- | :--------- | :------------ | :------------- | :--------------- | :------------- | :-------------- | :----------------------- | | Liberty Caribbean | 1,765,300 | 810,200 | 323,400 | 756,200 | 613,700 | 1,693,300 | 1,493,600 | 376,400 | 1,870,000 | | C&W Panama | 979,600 | 270,700 | 172,400 | 264,500 | 251,100 | 688,000 | 1,507,400 | 433,900 | 1,941,300 | | Liberty Puerto Rico | 1,193,000 | 530,700 | 218,800 | 504,700 | 283,300 | 1,006,800 | 180,600 | 521,700 | 702,300 | | Liberty Costa Rica | 858,000 | 293,000 | 203,600 | 281,900 | 105,800 | 591,300 | 1,063,800 | 1,066,200 | 2,130,000 | | **Total** | **4,795,900** | **1,904,600** | **918,200** | **1,807,300** | **1,253,900** | **3,979,400** | **4,245,400** | **2,398,200** | **6,643,600** | [Quarterly Subscriber Variance](index=21&type=section&id=Quarterly%20Subscriber%20Variance) In Q2 2025, LLA's total organic customer relationships decreased by 2,600, and mobile subscribers by 84,900; fixed RGUs increased by 17,500, primarily from C&W Panama and Liberty Costa Rica, while mobile losses were mainly due to prepaid reductions in Liberty Caribbean and C&W Panama, partially offset by postpaid gains in Liberty Costa Rica June 30, 2025 vs March 31, 2025 Fixed and Mobile Subscriber Variance | Fixed and Mobile Subscriber Variance Table — June 30, 2025 vs March 31, 2025 | Homes Passed | Fixed-line Customer Relationships | Video RGUs | Internet RGUs | Telephony RGUs | Total Fixed RGUs | Prepaid Mobile | Postpaid Mobile | Total Mobile Subscribers | | :------------------------------------------------------------------------- | :----------- | :-------------------------------- | :--------- | :------------ | :------------- | :--------------- | :------------- | :-------------- | :----------------------- | | Liberty Caribbean | 1,500 | (1,300) | (4,400) | 700 | 100 | (3,600) | (85,700) | 12,000 | (73,700) | | C&W Panama | 13,200 | 6,500 | 8,100 | 6,700 | 6,100 | 20,900 | (21,400) | 6,600 | (14,800) | | Liberty Puerto Rico | 600 | (8,100) | (2,600) | (6,600) | 2,300 | (6,900) | (5,500) | (9,900) | (15,400) | | Liberty Costa Rica | 10,100 | 300 | 2,100 | 900 | 4,100 | 7,100 | 2,100 | 16,900 | 19,000 | | **Total Organic Change** | **25,400** | **(2,600)** | **3,200** | **1,700** | **12,600** | **17,500** | **(110,500)** | **25,600** | **(84,900)** | - Q2 2025 adjustments include historical database clean-up, with no impact on consolidated financial statements[51](index=51&type=chunk) [Borrowing Group Specific Information](index=14&type=section&id=Borrowing%20Group%20Specific%20Information) [Cable & Wireless Borrowing Group](index=14&type=section&id=Cable%20%26%20Wireless%20Borrowing%20Group) The C&W Borrowing Group's rebased revenue decreased 3% in Q2 and 1% in H1 2025; adjusted OIBDA, however, grew 7% rebased in Q2 and 9% in H1, with its margin improving to 47.7% in Q2, while total third-party debt was $4.994 billion and the covenant net leverage ratio was 3.9x as of June 30, 2025 C&W Borrowing Group Financials (USD in millions) | C&W Borrowing Group Financials (USD in millions) | Q2 2025 | Q2 2024 | Reported Change | Rebased Change | H1 2025 | H1 2024 | Reported Change | Rebased Change | | :----------------------------------------------- | :------ | :------ | :-------------- | :------------- | :------ | :------ | :-------------- | :------------- | | Revenue | 635.8 | 662.3 | (4%) | (3%) | 1,264.6 | 1,282.6 | (1%) | (1%) | | Operating income | 138.8 | 98.0 | 42% | | 262.3 | 178.4 | 47% | | | Adjusted OIBDA | 303.1 | 284.4 | 7% | 7% | 599.0 | 551.1 | 9% | 9% | | Property & equipment additions | 88.7 | 101.1 | (12%) | | 159.3 | 173.8 | (8%) | | | Adjusted OIBDA as a percentage of revenue | 47.7 % | 42.9 % | | | 47.4 % | 43.0 % | | | - As of June 30, 2025, C&W's total third-party net debt and proportionate net debt were **$4.5 billion and $4.2 billion**, respectively, with fully-swapped borrowing costs of **6.3%** and a weighted average debt tenor of approximately **6.0 years**[44](index=44&type=chunk) - C&W's covenant proportionate net leverage ratio was **3.9x**[44](index=44&type=chunk) [Liberty Puerto Rico Borrowing Group](index=16&type=section&id=Liberty%20Puerto%20Rico%20Borrowing%20Group) The Liberty Puerto Rico Borrowing Group's rebased revenue decreased 5% in Q2 and 8% in H1 2025, with operating loss significantly increasing due to a $494 million impairment; however, adjusted OIBDA grew 21% rebased in Q2 and 18% in H1, with its margin improving to 28.9% in Q2, while total debt and finance lease obligations were $2.7515 billion and the covenant consolidated net leverage ratio was 7.9x as of June 30, 2025 LPR Borrowing Group Financials (USD in millions) | LPR Borrowing Group Financials (USD in millions) | Q2 2025 | Q2 2024 | Reported Change | Rebased Change | H1 2025 | H1 2024 | Reported Change | Rebased Change | | :----------------------------------------------- | :------ | :------ | :-------------- | :------------- | :------ | :------ | :-------------- | :------------- | | Revenue | 301.3 | 308.6 | (2)% | (5)% | 599.7 | 635.8 | (6)% | (8)% | | Operating loss | (474.8) | (19.1) | N.M. | | (471.0) | (28.5) | N.M. | | | Adjusted OIBDA | 87.0 | 71.1 | 22 % | 21 % | 168.5 | 140.2 | 20 % | 18 % | | Property & equipment additions | 37.5 | 48.9 | (23)% | | 66.1 | 89.9 | (26)% | | | Adjusted OIBDA as a percentage of revenue | 28.9 % | 23.0 % | | | 28.1 % | 22.1 % | | | - Operating loss primarily due to a **$494 million impairment** of Liberty Puerto Rico's spectrum license intangible asset[22](index=22&type=chunk) - LPR's covenant consolidated net leverage ratio was **7.9x**[47](index=47&type=chunk) [Liberty Costa Rica Borrowing Group](index=18&type=section&id=Liberty%20Costa%20Rica%20Borrowing%20Group) The Liberty Costa Rica Borrowing Group's revenue increased 1% in Q2 and 2% in H1 (in Costa Rican Colón), while operating income declined 9% in both periods; adjusted OIBDA remained flat in Q2 and decreased 1% in H1, while total debt was 245.2 billion Costa Rican Colón and the covenant consolidated net leverage ratio was 2.1x as of June 30, 2025 LCR Borrowing Group Financials (CRC in billions) | LCR Borrowing Group Financials (CRC in billions) | Q2 2025 | Q2 2024 | Change | H1 2025 | H1 2024 | Change | | :----------------------------------------------- | :------ | :------ | :----- | :------ | :------ | :----- | | Revenue | 76.7 | 75.6 | 1% | 156.5 | 153.9 | 2% | | Operating income | 12.9 | 14.2 | (9%) | 28.6 | 31.6 | (9%) | | Adjusted OIBDA | 27.4 | 27.4 | —% | 57.1 | 57.4 | (1%) | | Property & equipment additions | 8.8 | 10.7 | (18%) | 16.5 | 16.4 | 1% | | Adjusted OIBDA as a percentage of revenue | 35.7 % | 36.2 % | | 36.5 % | 37.3 % | | - As of June 30, 2025, fully-swapped borrowing costs were **10.7%** and the weighted average debt tenor was approximately **5.1 years**[49](index=49&type=chunk) - LCR's covenant consolidated net leverage ratio was **2.1x**[49](index=49&type=chunk) [Company Information & Disclaimers](index=12&type=section&id=Company%20Information%20%26%20Disclaimers) [Forward-Looking Statements](index=12&type=section&id=Forward-Looking%20Statements) This section outlines forward-looking statements in the press release, including expectations for strategic, financial, and operational performance, subscriber growth, and the Liberty Puerto Rico spin-off plan, detailing inherent risks and uncertainties such as natural disasters, competition, regulatory changes, and economic factors that could cause actual results to differ materially - This press release contains forward-looking statements regarding the company's strategy, financial and operational performance, growth expectations, digital strategy, product innovation, business plans, subscriber growth, regional connectivity needs, Puerto Rico business recovery, and the planned spin-off of Liberty Puerto Rico[39](index=39&type=chunk) - Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from expectations, including natural disasters, political or social events, pandemics, competition, technological changes, legal and regulatory changes, economic factors, ability to integrate acquisitions, regulatory approvals, programming content availability, ability to achieve financial targets, litigation outcomes, ability to access operating company cash, capital availability, currency and interest rate fluctuations, supplier capabilities, and network planning requirements[39](index=39&type=chunk) [About Liberty Latin America](index=13&type=section&id=About%20Liberty%20Latin%20America) Liberty Latin America is a leading communications company operating in over 20 countries across Latin America and the Caribbean, offering digital video, broadband internet, telephony, and mobile services, also managing an undersea and terrestrial fiber optic cable network connecting over 30 markets in the region, and has three classes of common shares traded on Nasdaq and OTC Link - Liberty Latin America is a leading communications company operating in over **20 countries** across Latin America and the Caribbean, with brands including BTC, Flow, Liberty, and Más Móvil[40](index=40&type=chunk) - The company provides digital video, broadband internet, telephony, and mobile services to residential and business customers, as well as enterprise-grade connectivity, data center, hosting, and managed solutions IT services[40](index=40&type=chunk) - Liberty Latin America operates an undersea and terrestrial fiber optic cable network connecting over **30 markets** in the region[40](index=40&type=chunk) - The company has three classes of common shares traded on the Nasdaq Global Select Market (LILA and LILAK) and OTC Link (LILAB)[41](index=41&type=chunk) [Non-GAAP Reconciliations & Glossary](index=22&type=section&id=Non-GAAP%20Reconciliations%20%26%20Glossary) [Non-GAAP Financial Measures](index=25&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and reconciles various non-GAAP financial measures used by Liberty Latin America, including Adjusted OIBDA, Adjusted OIBDA Margin, Adjusted Free Cash Flow, Rebased Growth Rates, and Consolidated Leverage Ratios, emphasizing their use by management to assess operational performance, allocate resources, and compare with industry peers as supplementary to GAAP metrics - This press release includes non-GAAP measures such as Adjusted OIBDA, Adjusted OIBDA Margin, Adjusted Free Cash Flow, Rebased Revenue and Adjusted OIBDA Growth Rates, and Consolidated Leverage Ratios[76](index=76&type=chunk) - Adjusted OIBDA is the primary measure used by the company's chief operating decision maker to assess segment operating performance and a key factor in internal decision-making for resource allocation[77](index=77&type=chunk) - Adjusted Free Cash Flow can be used to measure the company's ability to service debt and fund new investment opportunities[81](index=81&type=chunk) - Rebased growth rates are non-GAAP measures used to adjust historical revenue and Adjusted OIBDA to reflect the impact of acquisitions, dispositions, or transfers of operations, allowing for growth rate assessment on a comparable basis[83](index=83&type=chunk) [Glossary of Terms](index=22&type=section&id=Glossary%20of%20Terms) This section defines key financial and operational terms used in the report, such as Adjusted OIBDA, ARPU, Customer Relationships, Homes Passed, RGU, Mobile Subscribers, and various Property and Equipment Additions categories, clarifying their calculation and application - Adjusted OIBDA: Operating income (loss) before share-based compensation expense, depreciation and amortization, provisions for significant litigation, impairment, restructuring, and other operating items[53](index=53&type=chunk) - ARPU: Average Revenue Per User, referring to average monthly subscription revenue per customer relationship or mobile subscriber[55](index=55&type=chunk) - RGU (Revenue Generating Unit): Refers to a video RGU, internet RGU, or telephony RGU, where a residential or commercial unit may contain one or more RGUs[68](index=68&type=chunk) - Mobile Subscribers: Refers to the number of active SIM cards, not the number of services provided[64](index=64&type=chunk)

[Executive Summary & Business Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Highlights) C4 Therapeutics reported significant business advancements in Q2 2025, including the completion of cemsidomide Phase 1 enrollment with compelling response rates, advancement of CFT8919 in Greater China, and achievement of a preclinical milestone with Merck KGaA [Second Quarter 2025 Business Highlights](index=1&type=section&id=SECOND%20QUARTER%202025%20HIGHLIGHTS%20AND%20RECENT%20ACHIEVEMENTS) C4 Therapeutics reported significant business advancements in Q2 2025, including the completion of cemsidomide Phase 1 enrollment with compelling response rates, advancement of CFT8919 in Greater China, and achievement of a preclinical milestone with Merck KGaA [Cemsidomide Program Updates](index=1&type=section&id=Cemsidomide) Cemsidomide program updates include completed Phase 1 enrollment with compelling response rates and a refined registrational development plan for early 2026 initiation - Completed enrollment and dose escalation for cemsidomide Phase 1 trials in Multiple Myeloma (MM) and non-Hodgkin's Lymphoma (NHL), demonstrating a well-tolerated profile and **compelling response rates**[4](index=4&type=chunk) - Data from the cemsidomide Phase 1 trial in MM was accepted as an oral presentation at the International Myeloma Society (IMS) Annual Meeting (September 17 – September 20, 2025)[4](index=4&type=chunk) - A productive Type C meeting with the FDA enabled refinement of the cemsidomide registrational development plan, with initiation on track for **early 2026**[4](index=4&type=chunk)[5](index=5&type=chunk) - Registrational development will evaluate cemsidomide in combination with dexamethasone for late-line MM and with a B-cell maturation antigen bispecific T-cell engager (BCMA BiTE) for earlier lines of MM treatment[5](index=5&type=chunk) [CFT8919 Program Updates](index=2&type=section&id=CFT8919) CFT8919 continues to advance in Phase 1 dose escalation trials in Greater China through its partnership with Betta Pharmaceuticals - Partner Betta Pharmaceuticals continues to advance the CFT8919 Phase 1 dose escalation trial in Greater China[6](index=6&type=chunk) [Research and Discovery Collaborations](index=2&type=section&id=Research%20and%20Discovery%20Collaborations) C4T achieved a preclinical milestone with Merck KGaA, earning $1 million, and identified multiple degraders against two novel non-oncology targets, which are now moving into the next discovery phase - C4T advanced its collaboration with Merck KGaA, Darmstadt, Germany (MKDG), focused on two projects within the KRAS family, to a milestone on one project, earning **$1 million**[10](index=10&type=chunk) - C4T has identified multiple degraders against two novel targets outside of oncology, which are now advancing into the next phase of discovery[10](index=10&type=chunk) [Key Upcoming Milestones and Data Presentations](index=2&type=section&id=KEY%20UPCOMING%20MILESTONES%20AND%20DATA%20PRESENTATIONS) C4T plans to present full cemsidomide Phase 1 dose escalation data in MM at the IMS meeting in September 2025, followed by NHL data in Q4 2025. The company also expects to initiate the next phase of cemsidomide clinical development in MM in early 2026 and present pharmacokinetic/exposure-response data at ACoP 2025 - Present data from full cemsidomide Phase 1 dose escalation in MM at IMS (September 17 – September 20, 2025)[10](index=10&type=chunk) - Present data from cemsidomide Phase 1 dose escalation in NHL in Q4 2025[10](index=10&type=chunk) - Enable initiation of the next phase of cemsidomide clinical development in MM with new studies expected to initiate in **early 2026**[10](index=10&type=chunk) - Present poster analyzing cemsidomide clinical data of population pharmacokinetic and exposure-response relationships in MM and NHL at the 2025 American Conference on Pharmacometrics (ACoP 2025) on October 20, 2025[10](index=10&type=chunk) [Second Quarter 2025 Financial Results](index=2&type=section&id=SECOND%20QUARTER%202025%20FINANCIAL%20RESULTS) C4 Therapeutics reported a decrease in revenue and an increase in net loss for Q2 2025, with cash reserves expected to fund operations until mid-2027 [Revenue](index=2&type=section&id=Revenue) Total revenue for Q2 2025 decreased to $6.5 million from $12.0 million in Q2 2024, primarily due to an $8.0 million milestone from Biogen in the prior year, partially offset by a preclinical milestone from the MKDG collaboration and progress on other programs Revenue Comparison | Metric | Q2 2025 | Q2 2024 | | :----- | :------ | :------ | | Revenue | $6.5M | $12.0M | - The decrease in revenue was primarily due to an **$8.0 million milestone** earned from Biogen in Q2 2024, partially offset by achievement of a preclinical milestone under the MKDG collaboration and continued progress on other collaboration programs[8](index=8&type=chunk) [Operating Expenses](index=2&type=section&id=Operating%20Expenses) Operating expenses for Q2 2025 increased to $34.96 million from $33.45 million in Q2 2024, driven by higher R&D expenses, partially offset by lower G&A expenses [Research and Development (R&D) Expense](index=2&type=section&id=Research%20and%20Development%20(R%26D)%20Expense) R&D expense increased to $26.2 million in Q2 2025, primarily due to higher clinical trial expenses for cemsidomide and advancing preclinical collaborations R&D Expense Comparison | Metric | Q2 2025 | Q2 2024 | | :---------------- | :------ | :------ | | R&D Expense | $26.2M | $23.8M | - The increase in R&D expense was primarily related to clinical trial expenses for cemsidomide, in addition to increased preclinical spend as the company's research collaborations continue to advance[9](index=9&type=chunk) [General and Administrative (G&A) Expense](index=3&type=section&id=General%20and%20Administrative%20(G%26A)%20Expense) G&A expense decreased to $8.8 million in Q2 2025, primarily attributable to lower stock-based compensation expense G&A Expense Comparison | Metric | Q2 2025 | Q2 2024 | | :---------------- | :------ | :------ | | G&A Expense | $8.8M | $9.7M | - The decrease in G&A expense was primarily related to lower stock-based compensation expense[11](index=11&type=chunk) [Net Loss and Net Loss per Share](index=3&type=section&id=Net%20Loss%20and%20Net%20Loss%20per%20Share) Net loss for Q2 2025 was $26.0 million, compared to $17.7 million for Q2 2024. Net loss per share increased to $0.37 from $0.26 in the prior year Net Loss and Net Loss per Share Comparison | Metric | Q2 2025 | Q2 2024 | | :-------------------- | :------- | :------- | | Net Loss | -$26.0M | -$17.7M | | Net Loss per Share | -$0.37 | -$0.26 | [Cash Position and Financial Guidance](index=3&type=section&id=Cash%20Position%20and%20Financial%20Guidance) As of June 30, 2025, cash, cash equivalents, and marketable securities totaled $223.0 million, a decrease from $234.7 million as of March 31, 2025, primarily due to funding operations and programs, partially offset by milestone payments. This cash position is expected to fund operations to mid-2027 Cash, Cash Equivalents & Marketable Securities | Metric | June 30, 2025 | March 31, 2025 | Dec 31, 2024 | | :---------------------------------- | :------------ | :------------- | :----------- | | Cash, cash equivalents & marketable securities | $223.0M | $234.7M | $267.3M | - The decrease in cash during Q2 2025 was primarily the result of cash used to fund operations and advance programs, partially offset by cash received for milestones under Roche and MKDG collaborations[12](index=12&type=chunk) - The company expects its cash, cash equivalents, and marketable securities as of June 30, 2025, will enable it to fund its operating plan to **mid-2027**[12](index=12&type=chunk) [Company and Product Overviews](index=3&type=section&id=Company%20and%20Product%20Overviews) C4 Therapeutics is a clinical-stage biopharmaceutical company leveraging its TORPEDO platform to develop targeted protein degraders, including cemsidomide for MM/NHL and CFT8919 for L858R-mutated NSCLC [About C4 Therapeutics](index=3&type=section&id=About%20C4%20Therapeutics) C4 Therapeutics (C4T) is a clinical-stage biopharmaceutical company dedicated to advancing targeted protein degradation science to create a new generation of medicines. It leverages its TORPEDO platform to design small-molecule degraders that harness the body's natural protein recycling system to degrade disease-causing proteins, aiming to overcome drug resistance and target undruggable proteins - C4 Therapeutics (C4T) is a clinical-stage biopharmaceutical company focused on targeted protein degradation science to create new medicines[13](index=13&type=chunk) - Utilizes its TORPEDO platform to efficiently design and optimize small-molecule medicines to address difficult-to-treat diseases by degrading disease-causing proteins[13](index=13&type=chunk) [About Cemsidomide](index=3&type=section&id=About%20Cemsidomide) Cemsidomide is an investigational, orally bioavailable small-molecule degrader designed to be a potent and selective degrader of IKZF1/3, transcription factors implicated in multiple myeloma (MM) and non-Hodgkin's lymphomas (NHL). Clinical data indicates it is well-tolerated and shows compelling anti-myeloma and anti-lymphoma activity - Cemsidomide is an investigational, orally bioavailable small-molecule degrader designed to be a potent and selective degrader of IKZF1/3[14](index=14&type=chunk) - It targets transcription factors that drive multiple myeloma (MM) and non-Hodgkin's lymphomas (NHL)[14](index=14&type=chunk) - Clinical data has shown that cemsidomide is well-tolerated and displays compelling evidence of anti-myeloma and anti-lymphoma activity[14](index=14&type=chunk) [About CFT8919](index=3&type=section&id=About%20CFT8919) CFT8919 is an orally bioavailable allosteric degrader potent and selective against EGFR bearing an oncogenic L858R mutation, active in preclinical models of L858R-driven non-small cell lung cancer. It retains full activity against resistance-conferring EGFR mutations. C4T has a strategic partnership with Betta Pharmaceuticals for its development in Greater China, while retaining rights in the US, EU, and rest of the world - CFT8919 is an orally bioavailable allosteric degrader designed to be potent and selective against EGFR bearing an oncogenic L858R mutation[15](index=15&type=chunk) - In preclinical studies, CFT8919 is active in models of L858R driven non-small cell lung cancer and retains full activity against additional EGFR mutations that confer resistance[15](index=15&type=chunk) - C4T and Betta Pharmaceuticals have a strategic partnership to develop CFT8919 in Greater China, with C4T retaining development and commercialization rights for the US, EU, and rest of the world[15](index=15&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section outlines C4 Therapeutics' forward-looking statements regarding potential therapies, clinical trials, and funding, subject to inherent risks and uncertainties - This press release contains forward-looking statements regarding C4 Therapeutics' ability to develop potential therapies, the design and efficacy of therapeutic approaches, timing of preclinical studies and clinical trials, manufacturing capabilities, and funding[16](index=16&type=chunk)[17](index=17&type=chunk) - These statements are based on management's current expectations and are subject to risks and uncertainties that could cause actual results to differ materially, including those related to clinical study conduct, development costs, commercialization success, and capital availability[17](index=17&type=chunk) - Readers are advised to consult the 'Risk Factors' section in C4 Therapeutics' most recent Annual Report on Form 10-K and/or Quarterly Report on Form 10-Q for a comprehensive discussion of these risks[17](index=17&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) This section presents C4 Therapeutics' condensed consolidated balance sheet and statements of operations, detailing financial position and performance for Q2 2025 [Condensed Consolidated Balance Sheet Data](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheet%20Data) The condensed consolidated balance sheet shows key financial positions, including cash, cash equivalents and marketable securities decreasing from $267.3 million at December 31, 2024, to $223.0 million at June 30, 2025. Total assets also decreased, while total stockholders' equity declined Condensed Consolidated Balance Sheet Data (in thousands) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Cash, cash equivalents and marketable securities | $222,973 | $267,263 | | Total assets | $296,527 | $349,602 | | Deferred revenue | $43,770 | $47,169 | | Total stockholders' equity | $174,064 | $215,986 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The condensed consolidated statements of operations show a net loss of $26.0 million for the three months ended June 30, 2025, compared to $17.7 million for the same period in 2024. Revenue from collaboration agreements decreased, while research and development expenses increased Condensed Consolidated Statements of Operations (in thousands) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue from collaboration agreements | $6,463 | $12,006 | $13,701 | $15,045 | | Operating expenses: | | | | | | Research and development | $26,197 | $23,753 | $53,269 | $46,286 | | General and administrative | $8,767 | $9,695 | $18,097 | $19,983 | | Restructuring | — | — | — | $2,437 | | Total operating expenses | $34,964 | $33,448 | $71,366 | $68,706 | | Loss from operations | $(28,501) | $(21,442) | $(57,665) | $(53,661) | | Other income, net: | | | | | | Interest and other income, net | $2,481 | $3,726 | $5,323 | $7,584 | | Total other income, net | $2,481 | $3,726 | $5,323 | $7,584 | | Net loss | $(26,020) | $(17,716) | $(52,342) | $(46,077) | | Net loss per share − basic and diluted | $(0.37) | $(0.26) | $(0.74) | $(0.67) | | Weighted-average shares outstanding − basic and diluted | 71,005,743 | 68,810,259 | 70,919,871 | 68,621,214 |