Liberty Broadband(US:LBRDA)2026-02-04 23:09Financial Performance - Liberty Broadband's net loss from continuing operations for the year ended December 31, 2025, was $2.331 billion, compared to a net income of $796 million in 2024[345]. - Charter's revenue decreased by $311 million to $54,774 million for the year ended December 31, 2025, primarily due to lower customers and higher seamless entertainment allocation[356]. - Consolidated operating loss improved by $14 million for the year ended December 31, 2025, compared to 2024[348]. - Net cash provided by (used in) operating activities was $(327) million for the year ended December 31, 2025, compared to $(174) million in 2024[369]. - The effective income tax rate increased to 28% for the year ended December 31, 2025, compared to 19% in 2024[363]. - Share of losses from affiliate increased by $4,385 million during the year ended December 31, 2025, primarily due to a $4.4 billion impairment loss on equity method investment in Charter[352]. Expenses and Costs - General and administrative expenses decreased by $4 million to $31 million in 2025, primarily due to reduced professional service fees related to the Transactions[346]. - Stock-based compensation expense decreased by $10 million to $5 million in 2025, attributed to decreased grant activity under the Merger Agreement[347]. - Operating costs and expenses, excluding depreciation and amortization, decreased by $139 million during the year ended December 31, 2025[357]. - Interest expense decreased by $35 million during the year ended December 31, 2025, due to lower interest rates on variable rate debt[351]. - Interest expense and preferred stock dividends total $1,062 million, with $92 million due within one year[376]. Investments and Financing - Net cash provided by (used in) investing activities was $1,207 million for the year ended December 31, 2025, primarily related to the sale of Charter Class A common stock[370]. - Net cash flows used in financing activities were primarily to settle the 3.125% Debentures due 2054 for $952 million during the year ended December 31, 2025[371]. - Total material cash requirements amount to $2,997 million, with $1,755 million in debt due within one year[376]. - The company's variable rate debt amounts to $790 million with a weighted average interest rate of 5.5%, while fixed rate debt is $965 million with a weighted average interest rate of 3.1%[388]. Market and Risk Factors - The company is exposed to market risk from adverse changes in stock prices and interest rates, which could impact future earnings[385]. - The company evaluates declines in fair value of equity method investments to determine if they are other than temporary, which could lead to impairment charges[381]. - The company has established policies and procedures to manage market risks associated with its financial activities[385]. - The company’s investment in Charter is publicly traded and subject to market risk not directly reflected in financial statements[388]. - The company’s total debt is expected to vary due to future requirements and market conditions[386]. Corporate Structure and Ownership - Liberty Broadband controls 25.01% of the aggregate voting power of Charter, with an economic ownership interest of approximately 32.8% as of December 31, 2025[322][334]. - The GCI Divestiture was completed on July 14, 2025, with Liberty Broadband distributing 0.20 shares of GCI Liberty's common stock for each share of Liberty Broadband common stock held[329]. - The corporate level tax liability from the GCI Divestiture is estimated to be significantly less than $420 million, with Charter bearing the tax liability upon completion of the Combination[327]. Business Operations - Charter added 1.9 million mobile lines during the year ended December 31, 2025, while improving Internet and video losses compared to the prior year[338]. - Charter spent $2.2 billion on its subsidized rural construction initiative in 2025, activating approximately 483,000 subsidized rural passings[342]. - Charter's revenue is primarily derived from monthly fees, with additional income from installation fees and advertising sales, focusing on customer retention and cross-selling[335]. - Charter's network evolution initiative aims to deliver symmetrical and multi-gigabit speeds across its entire footprint, enhancing service offerings[342]. Accounting and Estimates - The company’s accounting estimates and assumptions are critical to its financial statements, affecting reported amounts of assets and liabilities[377]. - The company recorded a $4.4 billion impairment loss on its equity method investment in Charter due to a sustained decline in share price[383].