Lumen(US:LUMN)2026-02-03 21:17Financial Performance - Total revenue for Q4 2025 was $3.041 billion, a decrease of 9% from $3.329 billion in Q4 2024[11] - Adjusted EBITDA for Q4 2025 was $767 million, down from $1.052 billion in Q4 2024, reflecting a margin of 25.2%[9] - Operating revenue for Q4 2025 was $3,041 million, a decrease of 9% compared to Q4 2024's $3,329 million[25] - The total operating revenue for the full year 2025 was $12,402 million, down 5% from $13,108 million in 2024[25] - Adjusted EBITDA for Q4 2025 was $231 million, significantly up from $8 million in Q4 2024[25] - Adjusted EBITDA for Q4 2025 was $487 million, down from $920 million in Q4 2024, with a total YTD of $2,613 million compared to $3,445 million in the previous year[51] - The company reported a net cash provided by operating activities of $4.738 billion in 2025, compared to $4.333 billion in 2024, an increase of 9.3%[29] - The company reported a basic loss per share of $0.00 for Q4 2025, compared to earnings of $0.09 per share in Q4 2024[25] Cash Flow and Expenses - Free cash flow for Q4 2025 was $(765) million, compared to $(174) million in Q4 2024, excluding special items[12] - Free Cash Flow for Q4 2025 was $(1,082) million, significantly lower than $(227) million in Q4 2024, with a total YTD of $371 million compared to $1,102 million[49] - Total operating expenses increased by 2% to $3,241 million in Q4 2025 from $3,175 million in Q4 2024[25] - Selling, general and administrative expenses rose by 32% to $940 million in Q4 2025 from $711 million in Q4 2024[25] - The company incurred $166 million in transaction and separation costs in Q4 2025, compared to $50 million in Q4 2024, with a total YTD of $353 million versus $282 million[51] Debt and Assets - The company completed a $5.75 billion transaction with AT&T, reducing total debt by over $4.8 billion and annual interest expense by nearly 45%[5] - Total assets increased to $34.342 billion in 2025 from $33.496 billion in 2024, representing a growth of 2.5%[27] - Total current liabilities rose to $4.390 billion in 2025, up from $3.639 billion in 2024, an increase of 20.6%[27] - Total stockholders' equity showed a deficit of $1.117 billion in 2025, down from a positive equity of $464 million in 2024[27] Losses and Impairments - Lumen's net loss for the full year 2025 was $(1.739) billion, compared to a net loss of $(55) million for 2024[8] - The net loss for Q4 2025 was $2 million, compared to a net income of $85 million in Q4 2024[25] - Net loss for 2025 was $1.739 billion, a significant increase from a loss of $55 million in 2024[29] - The company experienced a goodwill impairment of $628 million for the full year 2025[25] Growth and Projections - North America Enterprise revenue grew by 52% in Q4 2025, highlighting a shift towards high-value enterprise growth[5] - The NaaS customer base grew by 29%, indicating strong demand for programmable network services[5] - The company expects full-year 2026 adjusted EBITDA to be between $3.1 billion and $3.3 billion[14] - Capital expenditures for 2026 are projected to be between $3.2 billion and $3.4 billion[14] - The company is targeting $700 million in cost savings by the end of 2026, with a goal of $1 billion by the end of 2027[5] - The company anticipates ongoing challenges due to intense competition and evolving technologies impacting its service offerings[19] - The company expects Adjusted EBITDA for the twelve months ending December 31, 2026, to range between $3,100 million and $3,300 million[53] - Free Cash Flow outlook for the twelve months ending December 31, 2026, is projected to be between $1,200 million and $1,400 million[54] Subscriber Growth - Fiber broadband subscribers reached 1.222 million in Q4 2025, up from 1.077 million in Q4 2024, an increase of 13.5%[31] Deferred Revenue - Changes in deferred revenue increased significantly to $2.673 billion in 2025 from $1.763 billion in 2024, a growth of 51.5%[29]