Lumen(US:LUMN)2025-07-31 20:15Financial Performance - Total revenue for Q2 2025 was $3.092 billion, a decrease of 5% compared to $3.268 billion in Q2 2024[10] - Reported net loss of $(915) million for Q2 2025, including a non-cash goodwill impairment charge of $628 million, compared to a net loss of $(49) million in Q2 2024[7] - Adjusted EBITDA for Q2 2025 was $877 million, down from $1.011 billion in Q2 2024, reflecting a margin of 28.4%[7][8] - Operating revenue for Q2 2025 was $3,092 million, a decrease of 5% compared to $3,268 million in Q2 2024[26] - Net loss for Q2 2025 was $915 million, compared to a net loss of $49 million in Q2 2024, reflecting a significant increase in losses[26] - Total operating expenses increased by 18% to $3,695 million in Q2 2025, up from $3,133 million in Q2 2024[26] - The company reported a basic loss per share of $0.92 for Q2 2025, compared to a loss of $0.05 per share in Q2 2024[26] - The Adjusted EBITDA margin for Q2 2025 was 23.4%, down from 26.8% in Q2 2024, while the margin excluding Special Items was 28.4% compared to 30.9%[50] Cash Flow and Liquidity - Free cash flow for Q2 2025 was $(209) million, compared to $(156) million in Q2 2024, excluding cash paid for special items[11] - Cash and cash equivalents as of June 30, 2025, totaled $1.568 billion[12] - Net cash provided by operating activities for Q2 2025 was $570 million, compared to $511 million in Q2 2024[7] - Net cash provided by operating activities increased to $1,665 million from $1,613 million year-over-year[30] - Free Cash Flow for Q2 2025 was $(321) million, compared to $(242) million in Q2 2024, with YTD Free Cash Flow at $(17) million, down from $147 million[48] - The company expects net cash provided by operating activities for 2025 to range from $5,300 million to $5,700 million, with capital expenditures between $(4,100) million and $(4,300) million[53] Assets and Liabilities - Cash and cash equivalents decreased to $1,568 million as of June 30, 2025, down from $1,889 million at the end of 2024[27] - Total assets decreased to $32,976 million as of June 30, 2025, compared to $33,496 million at the end of 2024[27] - Long-term debt remained relatively stable at $17,565 million as of June 30, 2025, compared to $17,494 million at the end of 2024[27] - Total current liabilities were $3,632 million as of June 30, 2025, slightly down from $3,639 million at the end of 2024[27] Business Strategy and Outlook - The company announced the sale of its consumer fiber business to AT&T for $5.75 billion, enhancing its enterprise focus[6] - The company updated its full-year 2025 outlook for adjusted EBITDA to $3.2 to $3.4 billion, maintaining previous guidance[14] - Capital expenditures for 2025 are projected to be between $4.1 to $4.3 billion[14] - The company increased its 2025 exit run-rate cost-reduction target from $250 million to $350 million[6] - The company is undergoing a transformation strategy, including the anticipated sale of its consumer fiber business, which may impact future financial results[20] - The company aims to achieve $1 billion in annualized cost savings by the end of 2027 through modernization and simplification initiatives[46] - The outlook for Adjusted EBITDA for the twelve months ending December 31, 2025, is projected to be between $3,200 million and $3,400 million[52] - Free Cash Flow outlook for the twelve months ending December 31, 2025, is estimated to be between $1,200 million and $1,400 million[53] Subscriber Metrics - Total broadband subscribers decreased to 2,458 thousand in Q2 2025 from 2,658 thousand in Q2 2024[32] - Fiber broadband subscribers increased to 1,150 thousand in Q2 2025, up from 992 thousand in Q2 2024[32] Special Items - Total special items impacting Adjusted EBITDA were $152 million in Q2 2025 compared to $136 million in Q2 2024[46] - Goodwill impairment of $628 million was recorded in Q2 2025, with no such impairment in Q2 2024[26] - The company reported a goodwill impairment of $628 million in 2025, with no such impairment in 2024[30] - The company recorded a goodwill impairment of $628 million in Q2 2025, which significantly impacted the net loss[50]