Report Overview & Key Highlights Second Quarter 2025 Financial Highlights ATN reports Q2 2025 revenue decreased 1% to $181.3 million year-over-year, operating income significantly dropped to $0.2 million, with a net loss of $(7.0) million, and Adjusted EBITDA decreased 6% | Metric (in Millions) | Q2 2025 | Q2 2024 | Change | | :----- | :------ | :------ | :----- | | Revenues | $181.3 | $183.3 | -1% | | Operating Income | $0.2 | $24.3 | -99.2% | | Net Loss | $(7.0) | $9.0 (Net Income) | N/A | | EPS | $(0.56) | $0.50 | N/A | | Adjusted EBITDA | $45.8 | $48.7 | -6% | - High-speed broadband homes passed increased by 8%, and total high-speed subscribers increased by 1%4 Reaffirmed Outlook for Full Year 2025 ATN reaffirms its FY2025 outlook, expecting revenue (excluding construction) and Adjusted EBITDA to be essentially flat at $725 million and $184 million respectively, with capital expenditures projected between $90 million and $100 million | Metric (in Millions) | Full Year 2025 Outlook | Full Year 2024 Result | Expected Change | | :----- | :--------------------- | :-------------------- | :-------------- | | Revenue (excl. construction) | ~$725 | $725 | In line | | Adjusted EBITDA | ~$184 | $184 | Essentially flat | | Capital Expenditures (net) | $90 - $100 | $110.4 | Decrease | | Net Debt Ratio | Flat to slight improvement | 2.54x | Flat to slight improvement | Remarks by Brad Martin, ATN Chief Executive Officer CEO Brad Martin states Q2 results met expectations, reflecting efforts in cost structure optimization and long-term strategy execution, with international operations showing positive growth while US operations improve despite challenges - Second quarter results met expectations, reflecting the company's efforts in optimizing its cost structure and executing its long-term strategy6 - The International segment is focused on enhancing its mobile network, improving service quality, expanding its post-paid subscriber base, and increasing operational efficiency6 - US operations revenue performance was impacted by the termination of a subsidy program and the transition from legacy consumer services, but is beginning to show sequential improvement as the company focuses on providing best-in-class carrier and enterprise solutions and expanding fiber and fiber-fed fixed wireless deployments6 - The company's business-wide focus on simplification, operational stability, and prudent capital allocation is driving stronger cash generation7 Consolidated Financial Results Second Quarter 2025 Consolidated Performance Q2 2025 consolidated revenue decreased 1% year-over-year to $181.3 million, with operating income significantly dropping to $0.2 million due to asset disposal losses and restructuring charges, resulting in a net loss of $(7.0) million | Metric (in Thousands) | Q2 2025 | Q2 2024 | Change (%) | | :----- | :--------------------- | :--------------------- | :--------- | | Total Revenue | $181,300 | $183,281 | -1.08% | | Operating Income (Loss) | $233 | $24,316 | -99.04% | | Net Income (Loss) attributable to ATN | $(7,026) | $9,003 | N/A | | Diluted EPS | $(0.56) | $0.50 | N/A | | Adjusted EBITDA | $45,792 | $48,670 | -5.89% | - The significant decrease in operating income was primarily due to a $15.9 million net gain on asset disposals in Q2 2024 compared to a $2.7 million loss in Q2 2025, partially offset by cost control measures, and impacted by $4.9 million in restructuring charges8 Six Months Ended June 30, 2025 Consolidated Performance For the six months ended June 30, 2025, total revenue decreased 2.56% to $360.6 million, operating income significantly dropped to $2.9 million, and the company reported a net loss of $(16.0) million | Metric (in Thousands) | 6 Months 2025 | 6 Months 2024 | Change (%) | | :----- | :--------------------------- | :--------------------------- | :--------- | | Total Revenue | $360,594 | $370,076 | -2.56% | | Operating Income (Loss) | $2,900 | $28,890 | -89.96% | | Net Income (Loss) attributable to ATN | $(15,954) | $2,690 | N/A | | Diluted EPS | $(1.25) | $(0.00) | N/A | Segment Operating Results ATN's operations are divided into International Telecom, US Telecom, and Corporate and Other segments, with International Telecom maintaining stable revenue and positive contributions, while US Telecom faces revenue decline and operating losses due to subsidy program termination and legacy service transition Segment Results for Three Months Ended June 30, 2025 In Q2 2025, International Telecom reported $94.9 million in revenue, $16.2 million in operating income, and $33.3 million in Adjusted EBITDA, while US Telecom had $86.4 million in revenue, an operating loss of $(5.5) million, and Adjusted EBITDA of $18.3 million | Metric (in Thousands) | International Telecom | US Telecom | Corporate and Other | Total ATN | | :-------------------- | :-------------------- | :--------- | :------------------ | :-------- | | Total Revenue | $94,894 | $86,406 | $- | $181,300 | | Operating Income (Loss) | $16,221 | $(5,533) | $(10,455) | $233 | | Adjusted EBITDA | $33,274 | $18,262 | $(5,744) | $45,792 | Segment Results for Three Months Ended June 30, 2024 In Q2 2024, International Telecom reported $95.4 million in revenue, $32.4 million in operating income, and $33.3 million in Adjusted EBITDA, while US Telecom had $87.9 million in revenue, $0.9 million in operating income, and $21.9 million in Adjusted EBITDA | Metric (in Thousands) | International Telecom | US Telecom | Corporate and Other | Total ATN | | :-------------------- | :-------------------- | :--------- | :------------------ | :-------- | | Total Revenue | $95,357 | $87,924 | $- | $183,281 | | Operating Income (Loss) | $32,405 | $884 | $(8,973) | $24,316 | | Adjusted EBITDA | $33,285 | $21,919 | $(6,534) | $48,670 | Segment Results for Six Months Ended June 30, 2025 For the six months ended June 30, 2025, International Telecom reported $189.4 million in revenue, $31.0 million in operating income, and $65.7 million in Adjusted EBITDA, while US Telecom had $171.2 million in revenue, an operating loss of $(7.9) million, and Adjusted EBITDA of $35.8 million | Metric (in Thousands) | International Telecom | US Telecom | Corporate and Other | Total ATN | | :-------------------- | :-------------------- | :--------- | :------------------ | :-------- | | Total Revenue | $189,390 | $171,204 | $- | $360,594 | | Operating Income (Loss) | $30,970 | $(7,948) | $(20,122) | $2,900 | | Adjusted EBITDA | $65,665 | $35,774 | $(11,308) | $90,131 | Segment Results for Six Months Ended June 30, 2024 For the six months ended June 30, 2024, International Telecom reported $188.4 million in revenue, $44.1 million in operating income, and $62.6 million in Adjusted EBITDA, while US Telecom had $181.7 million in revenue, $1.5 million in operating income, and $42.6 million in Adjusted EBITDA | Metric (in Thousands) | International Telecom | US Telecom | Corporate and Other | Total ATN | | :-------------------- | :-------------------- | :--------- | :------------------ | :-------- | | Total Revenue | $188,416 | $181,660 | $- | $370,076 | | Operating Income (Loss) | $44,090 | $1,482 | $(16,682) | $28,890 | | Adjusted EBITDA | $62,558 | $42,622 | $(12,992) | $92,188 | Operating Metrics ATN's Q2 2025 operating metrics show high-speed data broadband homes passed increased 8% and high-speed data broadband customers grew 1%, while total broadband customers decreased 5% and total mobile subscribers declined 1% | Metric | Q2 2025 | Q2 2024 | YoY Change | | :-------------------------------- | :------ | :------ | :--------- | | High-Speed Data Broadband Homes Passed | 427,500 | 396,100 | 8% | | High-Speed Data Broadband Customers | 141,900 | 140,600 | 1% | | Broadband Homes Passed | 803,400 | 798,300 | 1% | | Broadband Customers | 200,300 | 211,400 | -5% | | Fiber Route Miles | 11,957 | 11,880 | 1% | | International Mobile Pre-Paid Subscribers | 332,300 | 339,000 | -2% | | International Mobile Post-Paid Subscribers | 60,200 | 57,900 | 4% | | International Mobile Total Subscribers | 392,500 | 396,900 | -1% | | Blended Churn | 3.09% | 3.44% | -0.35 pp | Balance Sheet and Cash Flow Analysis Balance Sheet Highlights As of June 30, 2025, ATN's total cash, cash equivalents, and restricted cash increased to $113.3 million, total debt rose to $583.4 million, resulting in a net debt ratio of 2.58x, while total assets slightly decreased to $1,707.0 million | Metric (in Thousands) | June 30, 2025 | December 31, 2024 | Change | | :-------------------- | :------------ | :---------------- | :----- | | Assets: | | | | | Cash and cash equivalents | $98,965 | $73,393 | | | Restricted cash | $14,350 | $15,851 | | | Total current assets | $327,752 | $309,161 | | | Property, plant and equipment, net | $1,010,631 | $1,040,193 | | | Total assets | $1,707,006 | $1,727,103 | -1.16% | | Liabilities & Equity: | | | | | Current portion of long-term debt | $14,851 | $8,226 | | | Total current liabilities | $269,024 | $267,314 | | | Long-term debt, net of current portion | $568,548 | $549,130 | | | Total liabilities | $1,060,519 | $1,055,349 | +0.49% | | Total stockholders' equity | $567,772 | $595,451 | | Cash Flow Highlights For the six months ended June 30, 2025, net cash provided by operating activities increased 2% to $59.8 million, primarily due to improved working capital, while capital expenditures (net of reimbursements) decreased to $42.0 million | Metric (in Thousands) | 6 Months 2025 | 6 Months 2024 | Change (%) | | :-------------------- | :------------ | :------------ | :--------- | | Net cash provided by operating activities | $59,843 | $58,410 | +2.45% | | Capital expenditures (net of reimbursements) | $42,016 | $61,830 | -32.04% | - Net cash provided by operating activities increased primarily due to improved working capital20 Capital Allocation & Debt Quarterly Dividends and Stock Repurchases In Q2 2025, the quarterly dividend increased 15% to $0.275 per share, paid on July 7, 2025, with no stock repurchases made during the quarter - Quarterly dividend increased by 15% to $0.275 per share21 - The company did not repurchase any shares during the quarter ended June 30, 202523 Net Debt Ratio As of June 30, 2025, the net debt ratio was 2.58x, calculated as net debt of $470.1 million divided by Adjusted EBITDA of $182.0 million for the trailing four quarters | Metric (in Thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Total debt | $583,399 | $557,356 | | Less: Cash, cash equivalents and restricted cash | $113,315 | $89,244 | | Net Debt | $470,084 | $468,112 | | Adjusted EBITDA - for the four quarters ended | $182,027 | $184,084 | | Net Debt Ratio | 2.58 | 2.54 | 2025 Business Outlook ATN reaffirms its FY2025 guidance, expecting revenue (excluding construction) and Adjusted EBITDA to be essentially flat at $725 million and $184 million respectively, with capital expenditures projected between $90 million and $100 million, and the net debt ratio expected to remain stable or slightly improve - ATN reaffirms its 2025 guidance, confident in creating long-term value through prudent execution and strategic focus23 | Metric (in Millions) | Full Year 2025 Outlook | Full Year 2024 Result | Expected Change | | :----- | :--------------------- | :-------------------- | :-------------- | | Revenue (excl. construction) | ~$725 | $725 | In line | | Adjusted EBITDA | ~$184 | $184 | Essentially flat | | Capital expenditures (net) | $90 - $100 | $110.4 | Decrease | | Net Debt Ratio | Flat to slight improvement | 2.54x | Flat to slight improvement | Company Information & Non-GAAP Measures About ATN ATN International, Inc. is a leading digital infrastructure and communication services provider headquartered in Beverly, Massachusetts, operating in the US and internationally, focusing on rural and remote markets with growing infrastructure investment needs - ATN International, Inc. is a leading digital infrastructure and communication services provider, headquartered in Beverly, Massachusetts26 - The company operates in the US and internationally, including the Caribbean, focusing on rural and remote markets with growing infrastructure investment needs26 - Primary business includes providing advanced wireless and wireline connectivity services to residential, commercial, and government customers, as well as carrier and enterprise communication services26 Use of Non-GAAP Financial Measures and Definition of Terms This section defines ATN's non-GAAP financial measures, including EBITDA, Adjusted EBITDA, Net Debt, and Net Debt Ratio, which are used to help investors understand core operating performance and facilitate comparisons - EBITDA is defined as operating income (loss) before depreciation and amortization expense28 - Adjusted EBITDA is defined as operating income (loss) before depreciation and amortization expense, transaction-related expenses, restructuring and reorganization expenses, one-time impairment or special charges, gain or loss on asset disposals and transfers, and non-cash stock-based compensation expense28 - Net Debt is defined as total debt less cash and cash equivalents and restricted cash29 - The Net Debt Ratio is defined as Net Debt divided by the sum of Adjusted EBITDA for the trailing four quarters ended as of the measurement date30 Cautionary Language Concerning Forward-Looking Statements This section warns that the press release contains forward-looking statements based on estimates and assumptions, which are not guarantees of future events or results, and actual outcomes may differ materially due to various factors - This press release contains forward-looking statements based on estimates, projections, beliefs, and assumptions, which are not guarantees of future events or results33 - Actual future events and results may differ materially due to various factors, including operational performance, government subsidy programs, personnel recruitment, reliance on key suppliers, customer demand, fiber market expansion, network capacity, technology upgrades, capital market access, US telecom business growth, economic downturn risks, investment opportunities, and natural disasters and increased competition33 Contact Information Provides contact information for Michele Satrowsky, Corporate Treasurer, and Adam Rogers, Investor Relations, for inquiries - Contact information is provided for Michele Satrowsky, Corporate Treasurer, and Adam Rogers, Investor Relations34 Detailed Financial Statements & Reconciliations Unaudited Condensed Consolidated Balance Sheets The consolidated balance sheets provide a snapshot of ATN's financial position as of June 30, 2025, and December 31, 2024, detailing assets, liabilities, and stockholders' equity | (in Thousands) | June 30, 2025 | December 31, 2024 | | :------------- | :------------ | :---------------- | | Assets: | | | | Cash and cash equivalents | $98,965 | $73,393 | | Restricted cash | $14,350 | $15,851 | | Total current assets | $327,752 | $309,161 | | Property, plant and equipment, net | $1,010,631 | $1,040,193 | | Total assets | $1,707,006 | $1,727,103 | | Liabilities & Equity: | | | | Current portion of long-term debt | $14,851 | $8,226 | | Total current liabilities | $269,024 | $267,314 | | Long-term debt, net of current portion | $568,548 | $549,130 | | Total liabilities | $1,060,519 | $1,055,349 | | Total stockholders' equity | $567,772 | $595,451 | Unaudited Condensed Consolidated Statements of Operations The consolidated statements of operations present ATN's revenue, expenses, and net income (loss) for the three and six months ended June 30, 2025, and 2024 | (in Thousands, Except per Share Data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenue | $181,300 | $183,281 | $360,594 | $370,076 | | Total operating expenses | $181,067 | $158,965 | $357,694 | $341,186 | | Operating income (loss) | $233 | $24,316 | $2,900 | $28,890 | | Loss before income taxes | $(13,036) | $11,541 | $(24,614) | $5,213 | | Net income (loss) attributable to ATN International, Inc. stockholders | $(7,026) | $9,003 | $(15,954) | $2,690 | | Diluted EPS | $(0.56) | $0.50 | $(1.25) | $(0.00) | Unaudited Condensed Consolidated Cash Flow Statements The consolidated cash flow statements detail ATN's sources and uses of cash from operating, investing, and financing activities for the six months ended June 30, 2025, and 2024 | (in Thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------- | :----------------------------- | :----------------------------- | | Net loss | $(20,647) | $3,391 | | Net cash provided by operating activities | $59,843 | $58,410 | | Net cash used in investing activities | $(45,636) | $(46,843) | | Net cash (used) provided by financing activities | $9,864 | $(481) | | Net change in total cash, cash equivalents and restricted cash | $24,071 | $11,086 | | Total cash, cash equivalents and restricted cash, end of period | $113,315 | $73,253 | Selected Segment Financial Information This section provides detailed segmented data for ATN's International Telecom, US Telecom, and Corporate and Other segments, including revenue, operating income (loss), and non-GAAP metrics like EBITDA and Adjusted EBITDA, for the three and six months ended June 30, 2025, and 2024 Three Months Ended June 30, 2025 (in Thousands): | Metric | International Telecom | US Telecom | Corporate and Other | Total | | :----- | :-------------------- | :--------- | :------------------ | :---- | | Total Revenue | $94,894 | $86,406 | $- | $181,300 | | Operating income (loss) | $16,221 | $(5,533) | $(10,455) | $233 | | Adjusted EBITDA | $33,274 | $18,262 | $(5,744) | $45,792 | Three Months Ended June 30, 2024 (in Thousands): | Metric | International Telecom | US Telecom | Corporate and Other | Total | | :----- | :-------------------- | :--------- | :------------------ | :---- | | Total Revenue | $95,357 | $87,924 | $- | $183,281 | | Operating income (loss) | $32,405 | $884 | $(8,973) | $24,316 | | Adjusted EBITDA | $33,285 | $21,919 | $(6,534) | $48,670 | Six Months Ended June 30, 2025 (in Thousands): | Metric | International Telecom | US Telecom | Corporate and Other | Total | | :----- | :-------------------- | :--------- | :------------------ | :---- | | Total Revenue | $189,390 | $171,204 | $- | $360,594 | | Operating income (loss) | $30,970 | $(7,948) | $(20,122) | $2,900 | | Adjusted EBITDA | $65,665 | $35,774 | $(11,308) | $90,131 | Six Months Ended June 30, 2024 (in Thousands): | Metric | International Telecom | US Telecom | Corporate and Other | Total | | :----- | :-------------------- | :--------- | :------------------ | :---- | | Total Revenue | $188,416 | $181,660 | $- | $370,076 | | Operating income (loss) | $44,090 | $1,482 | $(16,682) | $28,890 | | Adjusted EBITDA | $62,558 | $42,622 | $(12,992) | $92,188 | Reconciliation of Non-GAAP Measures This section provides detailed reconciliation tables for operating income (loss) to EBITDA and Adjusted EBITDA, presented by segment, for the three and six months ended June 30, 2025, and 2024 Three Months Ended June 30, 2025 (in Thousands): | Metric | International Telecom | US Telecom | Corporate and Other | Total | | :----- | :-------------------- | :--------- | :------------------ | :---- | | Operating income (loss) | $16,221 | $(5,533) | $(10,455) | $233 | | Depreciation expense | $15,154 | $17,850 | $859 | $33,863 | | Amortization of intangibles | $251 | $975 | $- | $1,226 | | EBITDA | $31,626 | $13,292 | $(9,596) | $35,322 | | ADJUSTED EBITDA | $33,274 | $18,262 | $(5,744) | $45,792 | Three Months Ended June 30, 2024 (in Thousands): | Metric | International Telecom | US Telecom | Corporate and Other | Total | | :----- | :-------------------- | :--------- | :------------------ | :---- | | Operating income (loss) | $32,405 | $884 | $(8,973) | $24,316 | | Depreciation expense | $16,277 | $19,234 | $47 | $35,558 | | Amortization of intangibles | $252 | $1,693 | $- | $1,945 | | EBITDA | $48,934 | $21,811 | $(8,926) | $61,819 | | ADJUSTED EBITDA | $33,285 | $21,919 | $(6,534) | $48,670 | Six Months Ended June 30, 2025 (in Thousands): | Metric | International Telecom | US Telecom | Corporate and Other | Total | | :----- | :-------------------- | :--------- | :------------------ | :---- | | Operating income (loss) | $30,970 | $(7,948) | $(20,122) | $2,900 | | Depreciation expense | $30,531 | $36,134 | $1,725 | $68,390 | | Amortization of intangibles | $503 | $1,949 | $- | $2,452 | | EBITDA | $62,004 | $30,135 | $(18,397) | $73,742 | | ADJUSTED EBITDA | $65,665 | $35,774 | $(11,308) | $90,131 | Six Months Ended June 30, 2024 (in Thousands): | Metric | International Telecom | US Telecom | Corporate and Other | Total | | :----- | :-------------------- | :--------- | :------------------ | :---- | | Operating income (loss) | $44,090 | $1,482 | $(16,682) | $28,890 | | Depreciation expense | $32,400 | $37,372 | $125 | $69,897 | | Amortization of intangibles | $503 | $3,421 | $- | $3,924 | | EBITDA | $76,993 | $42,275 | $(16,557) | $102,711 | | ADJUSTED EBITDA | $62,558 | $42,622 | $(12,992) | $92,188 |
ATN International(ATNI) - 2025 Q2 - Quarterly Results