Financial Performance - Consolidated revenue increased by $30 million to $1,046 million for the year ended December 31, 2025, compared to $1,016 million in 2024 [347]. - Operating income decreased by $487 million, resulting in an operating loss of $347 million for the year ended December 31, 2025 [364]. - Adjusted OIBDA increased by $43 million to $403 million for the year ended December 31, 2025, compared to $360 million in 2024 [367]. - For the year ended December 31, 2025, the company reported net losses of $309 million compared to net earnings of $70 million for 2024, reflecting fluctuations in revenue and expenses [371]. Revenue Breakdown - GCI Holdings' revenue is driven by monthly fees for data, wireless, voice, and managed services, as well as universal service subsidies from the FCC [319]. - Consumer data revenue decreased by $8 million to $239 million for the year ended December 31, 2025, primarily due to a decline in subscribers [350]. - Consumer wireless revenue increased by $16 million to $208 million for the year ended December 31, 2025, driven by increased wireless USF support for high-cost areas [351]. - Business data revenue increased by $43 million to $503 million for the year ended December 31, 2025, primarily due to service upgrades with existing healthcare and education customers [353]. Expenses and Impairments - The impairment of goodwill and intangible assets was recorded at $525 million, consisting of a goodwill impairment of $108 million and an intangible asset impairment of $417 million [363]. - Operating expenses decreased by $16 million to $523 million for the year ended December 31, 2025, compared to $539 million in 2024 [355]. - Interest expense decreased by $4 million to $45 million for the year ended December 31, 2025, due to lower interest rates and reduced amounts outstanding on the Senior Credit Facility [369]. - The company recorded impairments of $401 million for cable certificates, $16 million for other indefinite-lived intangible assets, and $108 million for goodwill during the year ended December 31, 2025 [395]. Cash Flow and Liquidity - As of December 31, 2025, the company had a cash and cash equivalents balance of $416 million, with substantial investments in U.S. Treasury securities and other highly rated financial instruments [376][374]. - Net cash provided by operating activities increased to $370 million in 2025 from $278 million in 2024, driven by increased operating income [377][380]. - The company’s total material cash requirements as of December 31, 2025, amounted to $1.666 billion, with $275 million due within one year [373]. - Net cash flows used in investing activities were primarily related to capital expenditures of $224 million in 2025, compared to $193 million in 2024 [380]. - Financing activities in 2025 generated net cash of $202 million, mainly from a rights offering of $299 million, partially offset by net debt repayments of $88 million [381]. - The company expects to use approximately $290 million for net capital expenditures and $50 million for interest payments on outstanding debt in 2026 [382]. Corporate Developments - GCI Liberty completed a rights offering, distributing approximately 11,059,127 shares of GLIBK, raising about $300 million for general corporate purposes, including potential strategic acquisitions [317]. - GCI Holdings exited the video business and discontinued service for all video customers as of December 31, 2025 [318]. - The company expects to incur corporate overhead expenses of approximately $5 million annually related to being a standalone public company [315]. - The company is monitoring the impact of potential changes to the Universal Service Fund programs, which could materially affect revenue [332]. - GCI Holdings has faced legal challenges regarding the constitutionality of the FCC Universal Service Support Programs, with ongoing litigation that could impact operations [329]. Market Conditions - The Alaska economy, which GCI Holdings is heavily reliant on, is subject to recessionary pressures due to volatility in oil prices and inflation [324]. - The company has experienced inflation-sensitive cost pressures, including increased costs of materials and labor, impacting its margins [325]. - The number of cable modem subscribers decreased to 151,200 in 2025 from 155,700 in 2024, while wireless lines in service increased to 199,000 from 195,500 [348]. Taxation - The effective income tax rate for 2025 was 20%, down from 28% in 2024, primarily due to state income taxes and an impairment of goodwill that is not deductible for tax purposes [370]. Debt Structure - As of December 31, 2025, the company’s debt included $371 million in variable rate debt with a weighted average interest rate of 5.8% and $600 million in fixed rate debt with a weighted average interest rate of 4.8% [401].
GCI Liberty Inc-C(GLIBK) - 2025 Q4 - Annual Report