Liberty Broadband(LBRDA) - 2025 Q3 - Quarterly Report

Financial Performance - Liberty Broadband's operating income for the three months ended September 30, 2025, was a loss of $8 million, compared to a loss of $11 million in the same period of 2024[152]. - The net earnings from continuing operations for the nine months ended September 30, 2025, were $845 million, compared to $523 million for the same period in 2024[152]. - Liberty Broadband's share of earnings from its affiliate, Charter, was $295 million for the three months ended September 30, 2025, down from $346 million in the same period of 2024[152]. - Net earnings from continuing operations were $255 million and $845 million for the three and nine months ended September 30, 2025, respectively[175]. - Operating income decreased by $204 million and $82 million for the three and nine months ended September 30, 2025, respectively[167]. Revenue and Expenses - Revenue decreased by $123 million during the three months ended September 30, 2025, while remaining relatively constant for the nine months ended September 30, 2025[164]. - Selling, general and administrative expenses increased by $9 million for the three and nine months ended September 30, 2025, compared to the prior year periods[154]. - Operating expenses, excluding depreciation and amortization, increased by $66 million and $84 million for the three and nine months ended September 30, 2025, respectively[165]. - Other expenses, net decreased by $58 million and $123 million for the three and nine months ended September 30, 2025, respectively[168]. - Stock-based compensation expense decreased by $2 million and $7 million for the three and nine months ended September 30, 2025, respectively[155]. Investments and Financing Activities - Charter spent $582 million on its subsidized rural construction initiative in the third quarter of 2025, activating approximately 124,000 subsidized rural passings[150]. - Net cash provided by investing activities was $907 million for the nine months ended September 30, 2025, primarily related to the sale of Charter Class A common stock[181]. - During the nine months ended September 30, 2024, net cash flows used in financing activities included repurchases of approximately $300 million in 3.125% Debentures due 2053 and net repayments of approximately $670 million on the Margin Loan Facility[185]. - The company issued $860 million in 3.125% Exchangeable Senior Debentures due 2054, partially offsetting cash flows used in financing activities[185]. - Net cash flows used in financing activities also included repurchases of Liberty Broadband Series A and Series C common stock totaling $89 million[185]. Corporate Structure and Divestitures - The GCI Divestiture was completed on July 14, 2025, resulting in GCI Liberty becoming an independent, publicly traded company[144]. - Liberty Broadband controls 25.01% of the aggregate voting power of Charter, which is a significant equity method investment[134]. - The corporate level tax liability from the GCI Divestiture is estimated to be significantly less than $420 million[138]. Market Risks and Cash Management - The company is exposed to market risk due to changes in stock prices and interest rates, which could affect fair values, cash flows, and future earnings[187]. - The company manages interest rate exposure by maintaining a mix of fixed and variable rate debt to mitigate risks[188]. - As of September 30, 2025, the company has $840 million in variable rate debt with a weighted average interest rate of 5.9% and $965 million in fixed rate debt with a weighted average interest rate of 3.1%[189]. - Projected cash uses for the remainder of 2025 include approximately $20 million for interest payments and approximately $3 million for dividends on Liberty Broadband preferred stock[186]. - Corporate cash and other available sources of liquidity are expected to cover corporate expenses for the foreseeable future[186].