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]. - 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]. - The net earnings from continuing operations for Liberty Broadband for the nine months ended September 30, 2025, were $845 million, compared to $523 million for the same period in 2024[152]. - Revenue decreased by $123 million to $13,672 million for the three months ended September 30, 2025, while remaining relatively constant at $41,173 million for the nine months[164]. - Net income for the three months ended September 30, 2025, was $1,316 million, compared to $1,474 million in the prior year[164]. - Operating income decreased by $204 million and $82 million for the three and nine months ended September 30, 2025, respectively[167]. - Consolidated operating loss improved by $3 million for the three months ended September 30, 2025, but declined by $2 million for the nine months compared to the prior year[156]. Investments and Initiatives - Charter added 493,000 mobile lines during the third quarter of 2025, with video losses improving compared to the prior year period[148]. - Charter spent $582 million on its subsidized rural construction initiative in the third quarter of 2025, activating approximately 124,000 subsidized rural passings[150]. - Charter's pricing and packaging strategy launched in September 2024 aims to improve customer results and reduce churn[148]. - Charter's network evolution initiative aims to deliver symmetrical and multi-gigabit speeds across its footprint[150]. Corporate Actions and Changes - 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, with a merger agreement in place for Charter to acquire Liberty Broadband[134][135]. - The corporate level tax liability from the GCI Divestiture is estimated to be significantly less than $420 million[138]. Cash Flow and Financing Activities - Net cash provided by investing activities was $907 million for the nine months ended September 30, 2025, compared to $212 million in the prior year[180]. - 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 issuance of $860 million in 3.125% Exchangeable Senior Debentures due 2054 partially offset the 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]. - A distribution of $150 million received from a former subsidiary partially offset the net cash flows used in financing activities[185]. Debt and Interest Rate Management - 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 uses of cash for the remainder of 2025 include approximately $20 million for interest payments on outstanding debt and approximately $3 million for dividends on Liberty Broadband preferred stock[186]. - The company manages interest rate exposure by maintaining a mix of fixed and variable rate debt to protect against interest rate risk[188]. Market Risk and Liquidity - 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 investment in Charter, an equity method affiliate, is publicly traded and not reflected at fair value in the balance sheet, exposing the company to additional market risk[189]. - Corporate cash and other available sources of liquidity are expected to cover corporate expenses for the foreseeable future[186]. Expenses - 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]. - Stock-based compensation expense decreased by $2 million and $7 million for the three and nine months ended September 30, 2025, respectively[155]. - Other expenses, net decreased by $58 million and $123 million for the three and nine months ended September 30, 2025, respectively[168]. Taxation - The effective income tax rate for the three and nine months ended September 30, 2025, was 0% compared to 21% in the prior year periods[173].
Liberty Broadband(LBRDK) - 2025 Q3 - Quarterly Report