Financial Data and Key Metrics Changes - Total revenues for Q3 2025 were $183.2 million, a 3% increase from $178.5 million in Q3 2024 [11] - Adjusted EBITDA increased by 9% to $49.9 million compared to $45.7 million in the prior year quarter [12] - Operating income improved significantly to $9.8 million from an operating loss of $38.4 million in the same quarter last year [11][12] - Net income attributable to ATN stockholders for Q3 was $4.3 million, or $0.18 per share, compared to a net loss of $32.7 million, or $2.26 per share, in the prior year [12] Business Segment Performance - International segment revenues increased by 1% to approximately $95 million, with adjusted EBITDA growing 3% to $33.3 million [13] - U.S. telecom segment revenues, excluding construction revenues, were $87 million, up 3.5% year over year, with adjusted EBITDA for the quarter up 19.6% to $21.2 million [13] Market Data and Key Metrics Changes - High-speed broadband homes passed grew by 8%, and the total high-speed subscriber base increased by 1% year over year [4] - The U.S. segment saw tangible benefits from investments in carrier and enterprise solutions, particularly in Alaska's enterprise revenue and consumer-fixed wireless [6] Company Strategy and Development Direction - The company is focused on expanding fiber and fiber-fed fixed wireless across markets with a durable consumer presence while growing its base of business and carrier solutions [6][7] - Investments in network quality and data capabilities are aimed at enhancing customer retention and increasing average revenue per user [5][13] - The company is actively monitoring federal broadband policy developments and funding mechanisms to penetrate underserved areas [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the steady momentum across business segments and reaffirmed guidance for revenue, capital expenditure, and net debt ratio [9] - The company is refining its adjusted EBITDA outlook while maintaining a focus on cost containment and capital efficiency initiatives [16] Other Important Information - Total cash and cash equivalents increased to $119.6 million as of September 30, 2025, up from $89.2 million at the end of 2024 [14] - Capital expenditures for the nine months ended September 30, 2025, totaled $60.9 million, down from $85.7 million in the prior year period [15] Q&A Session Summary Question: Impact of government shutdown on subsidy programs - Management indicated no impact on payments for programs and expects no effects through Q4, although permitting could pose challenges if the shutdown extends [20][22] Question: Initiatives for improved execution in Alaska - A new management team in Alaska has established key partnerships to address rural healthcare opportunities, contributing to improved execution and close rates [23] Question: Priorities for improved cash flow and leverage - Management is pleased with cash flow trends and expects to continue reducing leverage while benefiting from grants and reimbursable programs [24]

Financial Performance - Q3 2025 total revenue reached $183 million, with US contributing 48% and International 52%[15] - Q3 2025 Adjusted EBITDA totaled $49 million, with US accounting for 39% and International 61%[15] - International Telecom segment saw a revenue increase of 1% and Adjusted EBITDA increase of 3% in Q3 2025[16, 20] - US Telecom segment experienced a revenue increase of 5% and Adjusted EBITDA increase of 20% in Q3 2025[17, 21] - The company anticipates full year 2025 revenue to be in line with 2024 revenue of $725 million[26] - The company projects full year 2025 Adjusted EBITDA to be flat to slightly above 2024 Adjusted EBITDA of $184 million[26] Key Performance Indicators - High-Speed Data Broadband Homes Passed reached approximately 433,000, a year-over-year increase of 8%[13] - High-Speed Data Customers totaled approximately 143,000, a year-over-year increase of 1%[13] - Fiber Route Miles reached approximately 12,000, a year-over-year increase of 1%[13] - International Mobile Subscribers numbered approximately 393,000, a year-over-year decrease of 0.4%[13]

Core Insights - ATN International reported quarterly earnings of $0.18 per share, exceeding the Zacks Consensus Estimate of a loss of $0.06 per share, marking an earnings surprise of +400.00% [1] - The company generated revenues of $183.17 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.42% and showing an increase from $178.45 million year-over-year [2] - The stock has underperformed the market, losing about 15.5% since the beginning of the year compared to the S&P 500's gain of 15.1% [3] Earnings Performance - Over the last four quarters, ATN International has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] - The current consensus EPS estimate for the upcoming quarter is -$0.02 on revenues of $183.1 million, and for the current fiscal year, it is -$0.36 on revenues of $726 million [7] Market Outlook - The company's earnings outlook and management's commentary on the earnings call will be crucial for understanding future stock movements [3][4] - The Zacks Rank for ATN International is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] - The Wireless National industry, to which ATN International belongs, is currently in the bottom 35% of Zacks industries, which may impact the stock's performance [8]

Financial Performance - Third quarter revenues increased 3% to $183.2 million compared to $178.5 million in the same quarter last year[9] - Adjusted EBITDA for the third quarter rose 9% to $49.9 million, up from $45.7 million year-over-year[12] - Net income for the third quarter was $4.3 million, or $0.18 per diluted share, compared to a net loss of $(32.7) million, or $(2.26) per diluted share, in the prior year[11] - Total revenue for the three months ended September 30, 2025, was $183.165 million, compared to $178.451 million for the same period in 2024, representing an increase of 3.97%[43] - Net income attributable to ATN International, Inc. stockholders for the three months ended September 30, 2025, was $4.343 million, compared to a net loss of $32.691 million for the same period in 2024[43] - Operating income for the three months ended September 30, 2025, was $9.830 million, compared to an operating loss of $38.358 million for the same period in 2024[43] - For the nine months ended September 30, 2025, the net loss was $16,715,000, a significant improvement from a net loss of $36,059,000 in the same period of 2024, representing a reduction of approximately 53%[45] - Total revenue for the three months ended September 30, 2025, was $183,165,000, compared to $178,451,000 for the same period in 2024, indicating a year-over-year increase of about 2%[47][49] - The total operating income for the three months ended September 30, 2025, was $9,830,000, a recovery from an operating loss of $38,358,000 in the same period of 2024[47][49] - Adjusted EBITDA for the nine months ended September 30, 2025, was $140,067,000, up from $45,670,000 in the same period of 2024, reflecting a substantial increase of approximately 206%[51][52] - Adjusted EBITDA for the nine months ended September 30, 2025, was $140,067 million, compared to $137,861 million for the same period in 2024, indicating a stable performance[57] Capital Expenditures and Debt Management - Capital expenditures for the year-to-date period were $60.9 million, down from $85.7 million in the prior-year period[23] - Capital expenditures are expected to be in the range of $90 to $100 million, down from $110.4 million in 2024[30] - The company's Net Debt Ratio was 2.47x as of September 30, 2025, with expectations to remain flat at approximately 2.54x for the full year 2024[22] - Net Debt Ratio is expected to remain flat with full year 2024 at approximately 2.54x, with potential for slight improvement exiting 2025[30] - The total debt, including the current portion, was $579,607,000 as of September 30, 2025, compared to $557,356,000 at the end of September 2024, reflecting an increase of approximately 4%[47][49] - The net debt ratio improved to 2.47 as of September 30, 2025, down from 2.54 at the end of 2024, reflecting better debt management[61] Cash and Liquidity - Cash and cash equivalents increased to $106.163 million as of September 30, 2025, from $73.393 million as of December 31, 2024[41] - Cash, cash equivalents, and restricted cash at the end of the period on September 30, 2025, totaled $119,640,000, compared to $89,243,000 at the end of the same period in 2024, marking an increase of about 34%[47][52] - The company reported net cash provided by operating activities of $97,689,000 for the nine months ended September 30, 2025, slightly up from $97,426,000 in the same period of 2024[45] - Total current liabilities as of September 30, 2025, were $259,735,000, compared to $267,314,000 at the end of September 2024, showing a decrease of about 3%[47][49] - Total assets decreased to $1.698681 billion as of September 30, 2025, from $1.727103 billion as of December 31, 2024[41] - Total liabilities decreased slightly to $1.050747 billion as of September 30, 2025, from $1.055349 billion as of December 31, 2024[41] Strategic Focus and Future Outlook - The company is focused on disciplined execution of its strategic roadmap, with revenue growth in domestic operations driven by carrier-managed services[27] - The company plans to continue focusing on market expansion and new product development to drive future growth[46] - The company incurred total operating expenses of $557,994 million, with depreciation and amortization expenses accounting for $107,196 million[53] - Stock-based compensation expenses totaled $6,521 million, indicating ongoing investment in employee incentives[58] - The company is focusing on restructuring and reorganization expenses, which amounted to $8,727 million for the nine months ended September 30, 2025, to enhance operational efficiency[57] Segment Performance - High-speed broadband homes passed increased by 8% to 432,500, while total high-speed subscribers grew by 1% to 142,500[20] - Total revenue for the company reached $548,527 million, with a significant contribution from Communications Services at $533,055 million, representing a year-over-year increase[53] - The international telecom segment generated an operating income of $18,091 million, showcasing strong performance in this area[55] - The company reported a net loss attributable to non-controlling interests of $6,059 million, highlighting challenges in certain segments[53]

Core Insights - ATN International, Inc. reported steady financial performance in Q3 2025, with revenues of $183.2 million, a 3% increase from $178.5 million in Q3 2024, driven by growth in fixed and carrier services despite a decline in mobility revenues [4][6][9] - The company achieved an operating income of $9.8 million, a significant recovery from a loss of $(38.4) million in the previous year, aided by cost containment measures and a reduction in depreciation and amortization expenses [5][6] - Adjusted EBITDA rose by 9% to $49.9 million compared to $45.7 million in Q3 2024, reflecting improved operational efficiency and margin expansion [6][9] Financial Performance - Consolidated revenues for Q3 2025 were $183.2 million, up 3% from $178.5 million in Q3 2024, primarily due to growth in fixed and carrier services [4][9] - Operating income improved to $9.8 million from a loss of $(38.4) million in the prior year, which included a $35.3 million goodwill impairment charge [5][9] - Net income attributable to ATN stockholders was $4.3 million, or $0.18 per diluted share, compared to a net loss of $(32.7) million, or $(2.26) per diluted share, in Q3 2024 [6][9] Segment Performance - The company operates in three segments: International Telecom, US Telecom, and Corporate and Other, with total revenue for Q3 2025 reported at $183.2 million [7][36] - International Telecom revenue was $95.1 million, while US Telecom revenue was $88.0 million, indicating a diversified revenue stream [10][36] - Mobility revenues showed a slight decline, while fixed and carrier services contributed positively to overall revenue growth [4][9] Operational Metrics - High-speed broadband homes passed increased by 8% year-over-year, with total high-speed subscribers growing by 1% [9][14] - The company reported a net cash provided by operating activities of $97.7 million for the year-to-date period, slightly up from $97.4 million in the prior year [17][34] - Capital expenditures for the year-to-date period were $60.9 million, down from $85.7 million in the previous year [17][34] Business Outlook - The company is refining its full-year 2025 Adjusted EBITDA expectations while maintaining its outlook for revenue, capital expenditures, and Net Debt Ratio [20][21] - Revenue, excluding construction revenue, is expected to align with last year's result of $725 million, with Adjusted EBITDA anticipated to be flat to slightly above last year's result of $184 million [28][21] - Capital expenditures are projected to be in the range of $90 to $100 million, down from $110.4 million in 2024, with a Net Debt Ratio expected to remain flat at approximately 2.54x [28][21]

Core Insights - ATN International, Inc. (NASDAQ: ATNI) is a telecom operator focused on building bandwidth infrastructure such as fiber, transport, subsea routes, and towers in underserved markets in the U.S. and the Caribbean [1] Company Overview - ATNI provides multi-route subsea connectivity in Alaska and communication solutions to rural areas [1]

Company Overview - ATN International, Inc. (NASDAQ: ATNI) is a telecom operator focused on building bandwidth infrastructure such as fiber, transport, subsea routes, and towers in underserved markets in the U.S. and the Caribbean [1]. Services Offered - The company provides multi-route subsea connectivity in Alaska and communication solutions tailored for rural areas [1].

Core Viewpoint - ATN International, Inc. will release its third quarter 2025 results on November 5, 2025, and will host a conference call on November 6, 2025, to discuss these results [1]. Group 1: Conference Call Details - The conference call is scheduled for Thursday, November 6, 2025, at 10:00 a.m. ET [1]. - A live audio webcast of the conference call can be accessed via the provided webcast link or through the Company's Investor Relations website [2]. - A replay of the conference call will be available starting at approximately 1:00 p.m. ET on the same day [2]. Group 2: Company Overview - ATN International, Inc. is a leading provider of digital infrastructure and communications services, operating in the U.S. and internationally, including the Caribbean [4]. - The Company focuses on rural and remote markets with increasing demand for infrastructure investments [4]. - ATN's services include advanced wireless and wireline connectivity, high-speed Internet, data services, and carrier and enterprise communications services [4].

Group 1 - The stock of ATN International, Inc. (ATNI) is experiencing significant attention due to high implied volatility in the options market, particularly the Sept. 19, 2025 $5 Put option [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant change in ATN International's stock price, potentially due to an upcoming event [2] - ATN International holds a Zacks Rank 3 (Hold) in the Wireless National industry, which is in the top 44% of the Zacks Industry Rank, with mixed earnings estimate revisions from analysts over the last 60 days [3] Group 2 - The high implied volatility surrounding ATN International may indicate a developing trading opportunity, as options traders often seek to sell premium on such options to capitalize on time decay [4]

[Cautionary Statement Regarding Forward-Looking Statements](index=4&type=section&id=CAUTIONARY%20STATEMENT%20REGARDING%20FORWARD%20LOOKING%20STATEMENTS) This statement advises that the report contains forward-looking information, subject to risks that could cause actual results to differ materially, and the Company disclaims any obligation to update these statements [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section details that the report includes forward-looking statements about future performance and plans, listing various risk factors that could cause actual outcomes to differ, with no obligation for the Company to update them - The report contains forward-looking statements about future financial performance, business goals, strategic investment plans, revenues, operating income, cash flows, and capital investments[8](index=8&type=chunk) - Actual future events and results could differ materially due to factors such as general operational performance, reliance on key suppliers, ability to satisfy major carrier customers, network expansion capabilities, technological changes, access to capital, government regulations, economic downturns, management transitions, and increased competition[8](index=8&type=chunk) - The Company undertakes no obligation to update these forward-looking statements, except as required by law[8](index=8&type=chunk) [PART I—FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) This part presents the Company's unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations [Item 1. Unaudited Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for ATN International, Inc. and its subsidiaries, providing a snapshot of the company's financial health and performance [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the unaudited condensed consolidated balance sheets, detailing assets, liabilities, and equity for the specified periods Condensed Consolidated Balance Sheets (In Thousands) | ASSETS (June 30, 2025) | Amount ($) | ASSETS (December 31, 2024) | Amount ($) | | :----------------------- | :--------- | :--------------------------- | :--------- | | Cash and cash equivalents | 98,965 | Cash and cash equivalents | 73,393 | | Total current assets | 327,752 | Total current assets | 309,161 | | Fixed assets, net | 1,010,631 | Fixed assets, net | 1,040,193 | | Total assets | 1,707,006 | Total assets | 1,727,103 | | **LIABILITIES & EQUITY** | | **LIABILITIES & EQUITY** | | | Total current liabilities| 269,024 | Total current liabilities | 267,314 | | Long-term debt, excluding current portion | 568,548 | Long-term debt, excluding current portion | 549,130 | | Total liabilities | 1,060,519 | Total liabilities | 1,055,349 | | Total equity | 567,772 | Total equity | 595,451 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section presents the unaudited condensed consolidated statements of operations, outlining revenues, expenses, and net income (loss) for the specified periods Condensed Consolidated Statements of Operations (In Thousands, Except Per Share Data) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenue | $181,300 | $183,281 | $360,594 | $370,076 | | Total operating expenses | $181,067 | $158,965 | $357,694 | $341,186 | | Income from operations | $233 | $24,316 | $2,900 | $28,890 | | Income (loss) before income taxes | $(13,036) | $11,541 | $(24,614) | $5,213 | | NET INCOME (LOSS) | $(9,260) | $11,337 | $(20,647) | $3,391 | | NET INCOME (LOSS) ATTRIBUTABLE TO ATN INTERNATIONAL, INC. STOCKHOLDERS | $(7,026) | $9,003 | $(15,954) | $2,690 | | Basic EPS | $(0.56) | $0.50 | $(1.25) | $— | | Diluted EPS | $(0.56) | $0.50 | $(1.25) | $— | | Dividends per share | $0.275 | $0.24 | $0.515 | $0.48 | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) This section presents the unaudited condensed consolidated statements of comprehensive income (loss), including net income (loss) and other comprehensive income (loss) Condensed Consolidated Statements of Comprehensive Income (Loss) (In Thousands) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) | $(9,260) | $11,337 | $(20,647) | $3,391 | | Other comprehensive income (loss) | $426 | $290 | $857 | $1,722 | | Comprehensive income (loss) | $(8,834) | $11,627 | $(19,790) | $5,113 | | Comprehensive loss attributable to ATN International, Inc. | $(6,600) | $9,293 | $(15,097) | $4,412 | [Condensed Consolidated Statements of Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) This section presents the unaudited condensed consolidated statements of equity, detailing changes in common stock, retained earnings, and total equity Condensed Consolidated Statements of Equity (In Thousands) | Equity Component | Balance, March 31, 2025 | Balance, June 30, 2025 | Balance, March 31, 2024 | Balance, June 30, 2024 | | :----------------- | :---------------------- | :--------------------- | :---------------------- | :--------------------- | | Common Stock | $180 | $181 | $173 | $173 | | Treasury Stock | $(103,143) | $(103,183) | $(92,463) | $(102,379) | | Additional Paid-In Capital | $214,362 | $216,856 | $207,551 | $209,944 | | Retained Earnings | $350,728 | $333,231 | $405,031 | $409,043 | | Accumulated Other Comprehensive Income/(Loss) | $11,208 | $11,634 | $9,700 | $9,990 | | Total ATNI Stockholders' Equity | $473,335 | $458,719 | $529,992 | $526,771 | | Noncontrolling Interests | $107,385 | $109,053 | $98,724 | $101,994 | | Total Equity | $580,720 | $567,772 | $628,716 | $628,765 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the unaudited condensed consolidated statements of cash flows, categorizing cash movements from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (In Thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------- | :----------------------------- | :----------------------------- | | Operating Activities | $59,843 | $58,410 | | Investing Activities | $(45,636) | $(46,843) | | Financing Activities | $9,864 | $(481) | | Net change in cash, cash equivalents, and restricted cash | $24,071 | $11,086 | | Total cash, cash equivalents, and restricted cash, end of period | $113,315 | $73,253 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes explaining the accounting policies, significant estimates, and specific financial statement line items [1. Organization and Business Operations](index=11&type=section&id=1.%20ORGANIZATION%20AND%20BUSINESS%20OPERATIONS) This note describes ATN International, Inc.'s business as a digital infrastructure and communications provider, its operating segments, and recent operational developments - ATN International, Inc. provides digital infrastructure and communications services in rural/remote US and international markets (Bermuda, Cayman Islands, Guyana, US Virgin Islands)[23](index=23&type=chunk)[28](index=28&type=chunk) - The Company operates two segments: US Telecom (fixed, carrier, managed services in Alaska and western US) and International Telecom (fixed, carrier, mobility, managed services in Bermuda, Cayman Islands, Guyana, US Virgin Islands)[26](index=26&type=chunk)[28](index=28&type=chunk) - Rebranding efforts include GTT in Guyana to 'One Communications' (OneGY) in 2024 and Viya in US Virgin Islands to 'One Communications' (OneVI) in Q2 2025[29](index=29&type=chunk) - As of June 30, 2025, **$7.8 million** of US Telecom telecommunication licenses were reclassified as assets held for sale, with an expected pre-tax gain of approximately **$6.0 million** upon completion in H2 2025[31](index=31&type=chunk) Restructuring and Reorganization Expenses (In Thousands) | Segment | Three months ended June 30, 2025 | Six months ended June 30, 2025 | | :---------------- | :------------------------------- | :----------------------------- | | International Telecom | $1,385 | $2,891 | | US Telecom | $2,357 | $2,491 | | Corporate and Other | $1,165 | $1,355 | | **Total** | **$4,907** | **$6,737** | [2. Basis of Presentation](index=14&type=section&id=2.%20BASIS%20OF%20PRESENTATION) This note explains the basis for preparing the unaudited condensed consolidated financial statements, including compliance with SEC rules and GAAP, and recent accounting pronouncements - The financial statements are unaudited, prepared in accordance with SEC rules and GAAP, and include normal recurring adjustments[34](index=34&type=chunk) - The Company is assessing the impact of ASU 2023-09 (Enhancements to Income Tax Disclosures), effective for annual periods after December 15, 2024, and ASU 2024-03 (Disaggregation of Income Statements Expenses), effective for annual periods after December 15, 2026[36](index=36&type=chunk)[37](index=37&type=chunk) [3. Revenue Recognition and Receivables](index=15&type=section&id=3.%20REVENUE%20RECOGNITION%20AND%20RECEIVABLES) This note details the Company's revenue recognition policies, disaggregated revenue, contract assets and liabilities, and allowance for credit losses Total Revenue by Segment and Recognition Timing (In Thousands) | Segment/Type | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | International Telecom (ASC 606) | $93,304 | $93,889 | $186,332 | $185,483 | | US Telecom (ASC 606) | $73,180 | $75,477 | $144,791 | $156,791 | | Total Revenue (ASC 606) | $166,484 | $169,366 | $331,123 | $342,274 | | Operating lease income | $2,048 | $2,111 | $4,031 | $4,217 | | Government support revenue | $12,768 | $11,804 | $25,440 | $23,585 | | **Total Revenue** | **$181,300** | **$183,281** | **$360,594** | **$370,076** | Contract Assets and Liabilities (In Thousands) | Item | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :---------------------- | :------------ | :---------------- | :--------- | :--------- | | Contract asset – current | $3,526 | $3,920 | $(394) | (10.1)% | | Contract asset – noncurrent | $4,701 | $5,368 | $(667) | (12.4)% | | Contract liability – current | $(30,917) | $(28,932) | $(1,985) | 6.9% | | Contract liability – noncurrent | $(51,393) | $(55,116) | $3,723 | (6.8)% | | Net contract liability | $(74,083) | $(74,760) | $677 | (0.9)% | - Remaining performance obligations totaled **$580 million** at June 30, 2025, with approximately **44%** expected to be satisfied within 24 months and **$60 million** annually from 2027-2032[44](index=44&type=chunk) Allowance for Credit Losses Activity (In Thousands) | Item | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Balance at beginning of period | $15,132 | $16,362 | | Current period provision for expected losses | $4,135 | $2,855 | | Write-offs charged against the allowance | $(5,326) | $(2,918) | | Recoveries collected | $147 | $133 | | Balance at end of period | $14,088 | $16,432 | [4. Leases](index=18&type=section&id=4.%20LEASES) This note provides information on the Company's operating and financing leases, including costs, cash flows, and weighted-average terms and discount rates Total Operating and Finance Lease Costs (In Thousands) | Lease Type | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :----------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total operating lease cost | $9,195 | $8,078 | $18,388 | $15,677 | | Total finance lease cost | $2,120 | $1,245 | $4,376 | $2,156 | Weighted-Average Lease Terms and Discount Rates | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Weighted-average remaining lease term (Operating) | 12.0 years | 12.6 years | | Weighted-average remaining lease term (Financing) | 5.8 years | 11.5 years | | Weighted-average discount rate (Operating) | 7.0% | 6.8% | | Weighted-average discount rate (Financing) | 8.5% | 7.4% | - For the six months ended June 30, 2025, the Company recorded **$4.0 million** in lease income as a lessor, primarily from Carrier Services revenue[59](index=59&type=chunk) [5. Use of Estimates](index=21&type=section&id=5.%20USE%20OF%20ESTIMATES) This note explains that financial statement preparation involves management estimates and assumptions, which may differ from actual results - Financial statements rely on management estimates and assumptions, particularly for revenue recognition, goodwill, long-lived intangible assets, income taxes, and contingencies[61](index=61&type=chunk) - Estimates are based on historical experience and reasonable assumptions, but actual results may differ significantly[61](index=61&type=chunk) [6. Fair Value Measurements and Investments](index=21&type=section&id=6.%20FAIR%20VALUE%20MEASUREMENTS%20AND%20INVESTMENTS) This note details fair value measurements for assets and liabilities, categorizing them by input observability, and discusses other investments and debt valuation Assets and Liabilities Measured at Fair Value (In Thousands) | Description | June 30, 2025 (Total) | December 31, 2024 (Total) | | :------------------------------------------ | :-------------------- | :------------------------ | | Short term investments | $395 | $300 | | Employee benefit plan investments | $2,199 | $2,768 | | Interest rate swap | $98 | $(723) | | Warrants on Alaska Communications redeemable common units | $0 | $(249) | | **Total assets and liabilities measured at fair value** | **$2,692** | **$2,096** | - The Company holds **$41.956 million** in investments without a readily determinable fair value as of June 30, 2025, included in other assets[67](index=67&type=chunk) - Redeemable common units and warrants are recorded at the higher of historical cost or fair value, with Alloy common units carried at historical cost (**$10.0 million** at June 30, 2025) exceeding fair value[68](index=68&type=chunk) Fair Value vs. Book Value of Debt (In Millions) | Debt Type | June 30, 2025 (Fair Value) | June 30, 2025 (Book Value) | December 31, 2024 (Fair Value) | December 31, 2024 (Book Value) | | :-------------------------------- | :--------------------------- | :--------------------------- | :----------------------------- | :----------------------------- | | Long-term debt | $590.4 | $583.4 | $564.4 | $557.4 | | Customer receivable credit facility | $39.9 | $40.2 | $42.7 | $44.2 | [7. Long-Term Debt](index=26&type=section&id=7.%20LONG-TERM%20DEBT) This note outlines the Company's various long-term debt facilities, including terms, interest rates, covenants, and maturity schedules - The 2023 CoBank Credit Facility includes a **$170 million** revolving credit facility and a **$130 million** term loan, with **$124.3 million** outstanding on the term loan and **$76.6 million** on the revolving loan as of June 30, 2025[73](index=73&type=chunk)[78](index=78&type=chunk) The Company was in compliance with all financial covenants[78](index=78&type=chunk) - The 2024 Alaska Credit Facility provides a **$300 million** term loan and a **$90 million** revolving facility, with **$300.0 million** outstanding on the term loan and **$5.0 million** on the revolving loan as of June 30, 2025[81](index=81&type=chunk)[82](index=82&type=chunk) The Company is not a guarantor for this debt[91](index=91&type=chunk) - The FirstNet Receivables Credit Facility has **$40.5 million** outstanding as of June 30, 2025, secured by AT&T receivables under the FirstNet Agreement[100](index=100&type=chunk) - OneGY entered into 2025 IDB Credit Facilities for a **$10.0 million** revolving facility and up to **$30.0 million** term loan, with **$5.0 million** outstanding on the revolving facility as of June 30, 2025[102](index=102&type=chunk)[108](index=108&type=chunk) - The Sacred Wind Term Debt has **$23.2 million** outstanding as of June 30, 2025, with fixed interest rates from **0.88% to 5.0%**[111](index=111&type=chunk) Sacred Wind was in compliance with its corrective action plan for a financial covenant[112](index=112&type=chunk) - The OneVI Debt has **$60.0 million** outstanding as of June 30, 2025, with a fixed interest rate of **4.0%** and maturity on July 1, 2026[113](index=113&type=chunk)[115](index=115&type=chunk) The Net Leverage Ratio covenant was amended to **7.0 to 1.0** and the Company was in compliance as of December 31, 2024[116](index=116&type=chunk) NCSC issued a commitment letter to extend the maturity to July 1, 2035[116](index=116&type=chunk) Annual Maturities of Debt Instruments (In Thousands) | Amounts Maturing During | US Telecom | International Telecom | Corporate and Other | Total Debt | Customer Receivable Credit Facility | | :-------------------------------- | :--------- | :-------------------- | :------------------ | :--------- | :---------------------------------- | | July 1, 2025 through December 31, 2025 | $1,778 | $5,000 | $3,250 | $10,028 | $3,960 | | Year ending December 31, 2026 | $5,469 | $60,000 | $8,125 | $73,594 | $8,409 | | Year ending December 31, 2027 | $13,098 | $— | $9,750 | $22,848 | $8,807 | | Year ending December 31, 2028 | $18,858 | $— | $86,370 | $105,228 | $9,229 | | Year ending December 31, 2029 | $282,749 | $— | $93,438 | $376,187 | $6,041 | | Thereafter | $6,239 | $— | $— | $6,239 | $4,085 | | **Total** | **$328,191** | **$65,000** | **$200,933** | **$594,124** | **$40,531** | | Debt Discounts | $(7,719) | $(100) | $(2,906) | $(10,725) | $(309) | | **Book Value as of June 30, 2025** | **$320,472** | **$64,900** | **$198,027** | **$583,399** | **$40,222** | [8. Government Support and Spectrum Matters](index=37&type=section&id=8.%20GOVERNMENT%20SUPPORT%20AND%20SPECTRUM%20MATTERS) This note details the Company's participation in government funding programs, including USF, construction grants, and the Replace and Remove Program, outlining funding and obligations - The Company receives federal USF support, including **$25.6 million** annually from the Alaska Connect Fund (ACF) until 2028, approximately **$105 million** over 14 years from Enhanced Alternative Connect America Model (E-ACAM), and **$8.0 million** annually from Connect America Fund II (CAF II) in the rural southwest until July 2028[119](index=119&type=chunk) - The Company was awarded **$2.3 million** annually from the Rural Digital Opportunity Fund Phase I (RDOF) auction through 2031, but transferred **$1.3 million** and returned **$0.7 million** of these awards by June 2025, incurring a **$1.9 million** loss related to RDOF transfers[119](index=119&type=chunk)[121](index=121&type=chunk) Communication Services Revenue from Government Programs (In Thousands) | Program | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :---------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | High cost support | $4,471 | $4,876 | $8,899 | $9,723 | | CAF II (including ACF) | $8,227 | $6,784 | $16,397 | $13,571 | | RDOF | $69 | $145 | $144 | $290 | | ECF | $— | $498 | $— | $7,312 | | RHC | $4,353 | $3,682 | $8,715 | $7,119 | | Other | $1,571 | $1,862 | $3,212 | $8,877 | | **Total** | **$18,691** | **$17,847** | **$37,367** | **$46,892** | - The Company was awarded **$103.8 million** in construction grants as of June 30, 2025, after new grants of **$15.8 million** and rescinded grants of **$52.5 million** (including **$51 million** from NTIA's BEAD Program)[127](index=127&type=chunk)[128](index=128&type=chunk) - As a sub-recipient, the Company is involved in tribal government grants (TBCP, ReConnect) totaling **$239 million** as of June 30, 2025, having received **$23.5 million** in funding and spent **$25.4 million** on construction[129](index=129&type=chunk) - The Replace and Remove Program allocation increased to approximately **$517 million** (from **$207 million**) in December 2024, with a project completion deadline extended to Q2 2026[131](index=131&type=chunk) Replace and Remove Program Expenditures and Reimbursements (In Thousands) | Item | Capital (June 30, 2025) | Operating (June 30, 2025) | Total (June 30, 2025) | Capital (June 30, 2024) | Operating (June 30, 2024) | Total (June 30, 2024) | | :-------------------------- | :---------------------- | :------------------------ | :-------------------- | :---------------------- | :------------------------ | :-------------------- | | Total spend | $167,827 | $32,657 | $200,484 | $87,388 | $24,654 | $112,042 | | Total reimbursements | $(135,480) | $(32,267) | $(167,747) | $(54,194) | $(15,075) | $(69,269) | | Amount pending reimbursement | $32,347 | $390 | $32,737 | $33,194 | $9,579 | $42,773 | [9. Retirement Plans](index=43&type=section&id=9.%20RETIREMENT%20PLANS) This note describes the Company's multi-employer and noncontributory defined benefit pension and postretirement plans, including net periodic benefit costs - The Company participates in the Alaska Electrical Pension Fund (AEPF), a multi-employer defined benefit plan, which was not in endangered or critical status[133](index=133&type=chunk) - The Company also has noncontributory defined benefit pension and postretirement plans, with most benefits frozen and no new participants allowed[134](index=134&type=chunk) Net Periodic Pension and Postretirement Benefit Costs (In Thousands) | Benefit Type | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :----------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net periodic pension expense (benefit) | $22 | $106 | $44 | $214 | | Net periodic postretirement expense (benefit) | $54 | $33 | $109 | $67 | [10. Income Taxes](index=43&type=section&id=10.%20INCOME%20TAXES) This note details the Company's effective tax rates, income tax expenses/benefits, and key factors influencing these rates, such as valuation allowances and discrete items Income Tax Rates and Impact (In Millions) | Period | Pretax Income (Loss) | Income Tax Expense (Benefit) | Effective Tax Rate | | :------------------------------- | :------------------- | :--------------------------- | :----------------- | | Three months ended June 30, 2025 | $(13.0) | $(3.8) | 29.0% | | Three months ended June 30, 2024 | $11.5 | $0.2 | 1.8% | | Six months ended June 30, 2025 | $(24.6) | $(4.0) | 16.1% | | Six months ended June 30, 2024 | $5.2 | $1.8 | 35.0% | - For Q2 2025, the effective tax rate was impacted by a **$4.9 million** benefit from reversing an unrecognized tax position, a **$0.6 million** expense for interest on uncertain tax positions, and a **$1.0 million** benefit from releasing a capital loss carryover valuation allowance[138](index=138&type=chunk)[140](index=140&type=chunk) - For Q2 2024, the effective tax rate was impacted by a **$2.4 million** expense from a foreign land sale gain, a **$3.7 million** benefit from reversing an unrecognized tax position, and a **$0.8 million** expense for interest on unrecognized tax positions[141](index=141&type=chunk) [11. Earnings Per Share and Redeemable Noncontrolling Interests](index=46&type=section&id=11.%20EARNINGS%20PER%20SHARE%20AND%20REDEEMABLE%20NONCONTROLLING%20INTERESTS) This note reconciles basic and diluted earnings per share and explains the accounting for redeemable noncontrolling interests, including their allocation of net income/loss Earnings Per Share Reconciliation (In Thousands, Except Per Share Data) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss attributable to ATN International, Inc. stockholders- Basic | $(7,026) | $9,003 | $(15,954) | $2,690 | | Less: Preferred dividends | $(1,507) | $(1,376) | $(2,965) | $(2,727) | | Net loss attributable to ATN International, Inc. common stockholders- Diluted | $(8,533) | $7,627 | $(18,919) | $(37) | | Weighted-average shares outstanding- Basic | 15,223 | 15,254 | 15,177 | 15,346 | | Weighted-average shares outstanding- Diluted | 15,223 | 15,255 | 15,177 | 15,346 | - The Company allocated losses of **$5.1 million** and **$2.7 million** to redeemable common units for the three months ended June 30, 2025 and 2024, respectively, and **$8.7 million** and **$6.2 million** for the six months ended June 30, 2025 and 2024, respectively[151](index=151&type=chunk) Roll Forward of Redeemable Noncontrolling Interests (In Thousands) | Item | Redeemable Preferred Units (June 30, 2025) | Redeemable Common Units (June 30, 2025) | Total Redeemable Noncontrolling Interests (June 30, 2025) | | :-------------------- | :----------------------------------------- | :---------------------------------------- | :-------------------------------------------------------- | | Balance, Dec 31, 2024 | $65,704 | $10,599 | $76,303 | | Accrued preferred dividend | $2,965 | $— | $2,965 | | Allocated net loss | $— | $(8,746) | $(8,746) | | Change in fair value | $— | $8,193 | $8,193 | | **Balance, June 30, 2025** | **$68,669** | **$10,046** | **$78,715** | [12. Segment Reporting](index=49&type=section&id=12.%20SEGMENT%20REPORTING) This note provides detailed financial information for the International Telecom and US Telecom segments, including revenue, operating income, and capital expenditures Segment Revenue and Operating Income (Three Months Ended June 30, 2025, In Thousands) | Segment | Total Revenue | Income (loss) from operations | | :---------------- | :------------ | :---------------------------- | | International Telecom | $94,894 | $16,221 | | US Telecom | $86,406 | $(5,533) | | Corporate and Other | $— | $(10,455) | | **Consolidated** | **$181,300** | **$233** | Segment Revenue and Operating Income (Six Months Ended June 30, 2025, In Thousands) | Segment | Total Revenue | Income (loss) from operations | | :---------------- | :------------ | :---------------------------- | | International Telecom | $189,390 | $30,970 | | US Telecom | $171,204 | $(7,948) | | Corporate and Other | $— | $(20,122) | | **Consolidated** | **$360,594** | **$2,900** | Selected Segment Balance Sheet Data (June 30, 2025, In Thousands) | Segment | Cash, cash equivalents, and restricted cash | Total assets | Total debt, including current portion | | :---------------- | :------------------------------------------ | :----------- | :------------------------------------ | | International Telecom | $66,726 | $701,302 | $64,900 | | US Telecom | $44,866 | $914,121 | $320,472 | | Corporate and Other | $1,723 | $91,583 | $198,027 | | **Consolidated** | **$113,315** | **$1,707,006** | **$583,399** | Capital Expenditures by Segment (Six Months Ended June 30, In Thousands) | Segment | 2025 Capital Expenditures | 2024 Capital Expenditures | | :---------------- | :------------------------ | :------------------------ | | International Telecom | $20,270 | $28,951 | | US Telecom | $67,650 | $77,498 | | Corporate and Other | $2 | $1,579 | | **Consolidated** | **$87,922** | **$108,028** | [13. Commitments and Contingencies](index=55&type=section&id=13.%20COMMITMENTS%20AND%20CONTINGENCIES) This note outlines the Company's involvement in regulatory and litigation matters, including spectrum fee disputes, international bypass allegations, tax claims, and an FCC settlement - OneGY is engaged in ongoing disputes with the Telecommunications Authority (TA) in Guyana regarding spectrum fee calculation methodology since 2006[169](index=169&type=chunk) - OneGY has filed lawsuits against Digicel for alleged international bypass in violation of exclusive license rights, with cases pending in the Court of Appeals in Guyana[170](index=170&type=chunk) - OneGY is involved in tax claims with the Guyana Revenue Authority (GRA) dating back to 1991, primarily concerning the deductibility of intercompany advisory fees[171](index=171&type=chunk) - Alaska Communications settled with the FCC Enforcement Bureau for **$6.3 million** (a **$5.3 million** cash payment and **$1.0 million** receivable forgiveness) regarding the Rural Health Care Support Program, and entered a three-year compliance agreement[172](index=172&type=chunk) - The Company has accrued **$15.3 million** as of June 30, 2025, for probable adverse outcomes in these and other legal/regulatory matters[173](index=173&type=chunk) [14. Subsequent Events](index=56&type=section&id=14.%20SUBSEQUENT%20EVENTS) This note discloses the signing of the One Big Beautiful Bill Act and the Company's assessment of its non-material financial impact for FY2025 - The One Big Beautiful Bill Act was signed into law on July 4, 2025[174](index=174&type=chunk) The Company is evaluating its impact but does not anticipate material financial statement impacts for FY2025[174](index=174&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=58&type=section&id=Item%202%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial condition and results of operations, analyzing revenue, expenses, and segment performance [Overview](index=58&type=section&id=Overview) This section provides an overview of ATN International's business, operating segments, key agreements (FirstNet, Verizon CMS), and participation in government support programs - ATN International is a leading provider of digital infrastructure and communications services, focusing on rural and remote markets in the US and internationally (Bermuda, Cayman Islands, Guyana, US Virgin Islands)[176](index=176&type=chunk)[179](index=179&type=chunk)[181](index=181&type=chunk) - The Company operates two segments: US Telecom (fixed, carrier, managed services in Alaska and western US) and International Telecom (fixed, carrier, mobility, managed services in international markets)[179](index=179&type=chunk) - The FirstNet Agreement involves building AT&T's network in the western US, with **$77 million** in construction revenue recorded through June 30, 2025, and an expected **$6 million** more by the end of 2025[183](index=183&type=chunk) - The Verizon CMS Agreement involves upgrading wireless service and providing network, infrastructure, and technical services to Verizon in the southwestern US, with an initial term ending in 2030[185](index=185&type=chunk)[187](index=187&type=chunk) - The Company receives various USF high-cost support, including **$25.6 million** annually from ACF (Alaska Connect Fund) until 2028, approximately **$105 million** over 14 years from E-ACAM, and **$8 million** annually from CAF II until July 2028[192](index=192&type=chunk) - As of June 30, 2025, the Company was awarded **$103.8 million** in construction grants and is a sub-recipient of tribal government grants totaling **$239 million**[194](index=194&type=chunk)[196](index=196&type=chunk) - The Replace and Remove Program allocation increased to approximately **$517 million**, with **$200.5 million** incurred in expenditures by June 30, 2025, and **$37.0 million** in reimbursements received during the six months ended June 30, 2025[197](index=197&type=chunk)[198](index=198&type=chunk)[199](index=199&type=chunk) [Selected Segment Financial Information](index=65&type=section&id=Selected%20Segment%20Financial%20Information) This section presents selected financial data for the International Telecom and US Telecom segments, including total revenue and income (loss) from operations Selected Segment Financial Information (Three Months Ended June 30, 2025, In Thousands) | Segment | Total Revenue | Income (loss) from operations | | :---------------- | :------------ | :---------------------------- | | International Telecom | $94,894 | $16,221 | | US Telecom | $86,406 | $(5,533) | | Corporate and Other | $— | $(10,455) | | **Consolidated** | **$181,300** | **$233** | Selected Segment Financial Information (Three Months Ended June 30, 2024, In Thousands) | Segment | Total Revenue | Income (loss) from operations | | :---------------- | :------------ | :---------------------------- | | International Telecom | $95,357 | $32,405 | | US Telecom | $87,924 | $884 | | Corporate and Other | $— | $(8,973) | | **Consolidated** | **$183,281** | **$24,316** | [Comparison of Segment Results (Three Months)](index=70&type=section&id=Comparison%20of%20Segment%20Results%20%28Three%20Months%29) This section analyzes the changes in revenue and operating income/loss for the International Telecom and US Telecom segments for the three months ended June 30 - International Telecom revenue decreased by **$0.5 million (0.5%)** to **$94.9 million**, primarily due to declines in Mobility, Fixed, and Carrier Services, partially offset by ancillary services[207](index=207&type=chunk) - International Telecom operating expenses increased by **$15.7 million (24.9%)** to **$78.7 million**, largely due to a **$15.8 million** gain on asset disposition in the prior year and **$1.4 million** in restructuring expenses in the current period[208](index=208&type=chunk) - International Telecom operating income decreased by **$16.2 million (50.0%)** to **$16.2 million**[209](index=209&type=chunk) - US Telecom revenue decreased by **$1.5 million (1.7%)** to **$86.4 million**, mainly due to a **$1.1 million** reduction in Fixed revenues (impacted by ECF and ACP conclusion), **$0.3 million** in Carrier Services, and **$0.8 million** in Mobility, partially offset by a **$1.4 million** increase in construction revenue[210](index=210&type=chunk) - US Telecom operating expenses increased by **$4.9 million (5.6%)** to **$91.9 million**, driven by **$2.4 million** in restructuring expenses and a **$2.6 million** increase in loss on asset disposition[211](index=211&type=chunk) - US Telecom operating income shifted to a loss of **$5.5 million** from an income of **$0.9 million**[212](index=212&type=chunk) [Comparison of Consolidated Results (Three Months)](index=71&type=section&id=Comparison%20of%20Consolidated%20Results%20%28Three%20Months%29) This section provides a consolidated comparison of key financial metrics, including revenue, operating expenses, and net income (loss), for the three months ended June 30 Consolidated Results (Three Months Ended June 30, In Thousands) | Metric | 2025 | 2024 | Amount of Increase (Decrease) | Percent Increase (Decrease) | | :------------------------------------------ | :----- | :----- | :---------------------------- | :-------------------------- | | Communication services revenue | $174,874 | $177,365 | $(2,491) | (1.4)% | | Construction revenue | $2,216 | $820 | $1,396 | 170.2% | | Other revenue | $4,210 | $5,096 | $(886) | (17.4)% | | **Total revenue** | **$181,300** | **$183,281** | **$(1,981)** | **(1.1)%** | | Total operating expenses | $181,067 | $158,965 | $22,102 | 13.9% | | Income from operations | $233 | $24,316 | $(24,083) | (99.0)% | | Income (loss) before income taxes | $(13,036) | $11,541 | $(24,577) | (213.0)% | | NET INCOME (LOSS) | $(9,260) | $11,337 | $(20,597) | (181.7)% | | NET INCOME (LOSS) ATTRIBUTABLE TO ATN INTERNATIONAL, INC. STOCKHOLDERS | $(7,026) | $9,003 | $(16,029) | (178.0)% | [Communications Services Revenue](index=72&type=section&id=Communications%20Services%20Revenue) This section details changes in Mobility, Fixed, Carrier Services, and Other Communications Services revenue for the three months ended June 30, by segment - Mobility revenue decreased by **$1.3 million (4.7%)** to **$26.3 million** for Q2 2025, driven by a **$0.5 million** decrease in International Telecom (business and consumer) and a **$0.8 million** decrease in US Telecom due to the conclusion of retail mobility services[216](index=216&type=chunk)[219](index=219&type=chunk) - Fixed revenue decreased by **$1.6 million (1.4%)** to **$113.1 million** for Q2 2025, primarily due to a **$0.5 million** decrease in International Telecom and a **$1.1 million** decrease in US Telecom, impacted by the conclusion of ECF and ACP programs[219](index=219&type=chunk)[220](index=220&type=chunk) - Carrier Services revenue decreased by **$0.5 million (1.5%)** to **$33.2 million** for Q2 2025, with a **$0.2 million** decrease in International Telecom (roaming) and a **$0.3 million** decrease in US Telecom (transition to carrier service management contracts)[225](index=225&type=chunk)[228](index=228&type=chunk) - Other Communications Services revenue increased by **$0.8 million (57.1%)** to **$2.2 million** for Q2 2025, due to increased ancillary services in International Telecom, partially offset by reduced non-recurring project revenue in US Telecom[226](index=226&type=chunk) [Construction Revenue](index=76&type=section&id=Construction%20Revenue) This section discusses the increase in construction revenue, primarily driven by completed FirstNet cell sites, for the three months ended June 30 - Construction revenue increased to **$2.2 million** for Q2 2025 from **$0.8 million** for Q2 2024, a **170.2%** increase, primarily due to an increase in completed FirstNet cell sites[214](index=214&type=chunk)[229](index=229&type=chunk) The build is expected to be substantially complete by the end of 2025[229](index=229&type=chunk) [Other Revenue](index=76&type=section&id=Other%20Revenue) This section details the decrease in Managed Services revenue for the three months ended June 30, across both International and US Telecom segments - Managed Services revenue decreased by **$0.9 million (17.6%)** to **$4.2 million** for Q2 2025, with decreases of **$0.4 million** in International Telecom and **$0.5 million** in US Telecom[230](index=230&type=chunk)[231](index=231&type=chunk) [Operating Expenses](index=76&type=section&id=Operating%20Expenses) This section analyzes changes in cost of communication services, construction revenue, SG&A, restructuring, depreciation, and asset disposition for the three months ended June 30 - Cost of communication services and other increased by **$1.1 million (1.45%)** to **$77.2 million** for Q2 2025[233](index=233&type=chunk) International Telecom remained consistent, while US Telecom increased by **$1.1 million** due to cell site rents, partially offset by cost savings and ECF program conclusion[233](index=233&type=chunk) - Cost of construction revenue increased to **$2.2 million** for Q2 2025 from **$0.8 million** for Q2 2024, a **168.5%** increase, due to more completed FirstNet sites[214](index=214&type=chunk)[236](index=236&type=chunk) - Selling, general and administrative expenses decreased by **$1.5 million (2.6%)** to **$56.2 million** for Q2 2025, driven by cost containment initiatives across all segments (International Telecom: **$0.4M** decrease, US Telecom: **$0.3M** decrease, Corporate Overhead: **$0.8M** decrease)[238](index=238&type=chunk)[242](index=242&type=chunk) - Restructuring and reorganization expenses totaled **$4.9 million** for Q2 2025 (International Telecom: **$1.4M**, US Telecom: **$2.4M**, Corporate and Other: **$1.2M**), with no such expenses in Q2 2024[214](index=214&type=chunk)[245](index=245&type=chunk)[246](index=246&type=chunk) - Depreciation and amortization expenses decreased by **$1.7 million (4.8%)** to **$33.9 million** for Q2 2025, due to reduced capital expenditures and fully depreciated assets in International Telecom (**$1.1M** decrease) and US Telecom (**$1.4M** decrease)[214](index=214&type=chunk)[247](index=247&type=chunk)[250](index=250&type=chunk) - Loss on disposition of assets and transfers was **$2.7 million** for Q2 2025 (International Telecom: **$0.1M**, US Telecom: **$2.6M**), compared to a **$15.9 million** gain in Q2 2024 (primarily from real estate sale in International Telecom)[214](index=214&type=chunk)[249](index=249&type=chunk)[251](index=251&type=chunk) [Other Income (Expense)](index=82&type=section&id=Other%20Income%20%28Expense%29) This section discusses changes in interest expense and other expenses, including foreign currency transaction losses, for the three months ended June 30 - Interest expense increased by **$0.5 million (3.8%)** to **$12.8 million** for Q2 2025, due to increased borrowings under credit facilities[214](index=214&type=chunk)[254](index=254&type=chunk) - Other expense was **$0.6 million** for Q2 2025, primarily from foreign currency transaction losses[255](index=255&type=chunk) [Income Taxes](index=82&type=section&id=Income%20Taxes) This section details the effective tax rates and income tax expenses/benefits for the three months ended June 30, highlighting influencing factors - The effective tax rate for Q2 2025 was **29.0%** (benefit of **$3.8 million** on a pretax loss of **$13.0 million**), compared to **1.8%** for Q2 2024 (expense of **$0.2 million** on a pretax income of **$11.5 million**)[255](index=255&type=chunk)[256](index=256&type=chunk)[257](index=257&type=chunk) [Net (income) loss attributable to noncontrolling interests, net of tax](index=84&type=section&id=Net%20%28income%29%20loss%20attributable%20to%20noncontrolling%20interests%2C%20net%20of%20tax) This section explains the allocation of net income or loss to noncontrolling interests for the three months ended June 30, by segment - Net loss attributable to noncontrolling interests was an allocation of **$2.2 million** in losses for Q2 2025, compared to **$2.3 million** in income for Q2 2024[260](index=260&type=chunk) - International Telecom's net income attributable to noncontrolling interests decreased by **$2.8 million** to an allocation of **$2.3 million** of income, largely due to the **$15.9 million** gain on asset disposition in Q2 2024[262](index=262&type=chunk) - US Telecom's net loss attributable to noncontrolling interests increased by **$1.7 million** to an allocation of **$4.5 million** in losses, due to increased losses at less than wholly owned subsidiaries[262](index=262&type=chunk) [Net income (loss) attributable to ATN International, Inc. stockholders](index=84&type=section&id=Net%20income%20%28loss%29%20attributable%20to%20ATN%20International%2C%20Inc.%20stockholders) This section presents the net income (loss) attributable to ATN International, Inc. stockholders and diluted EPS for the three months ended June 30 - Net loss attributable to ATN International, Inc. stockholders was **$7.0 million** for Q2 2025, compared to income of **$9.0 million** for Q2 2024[260](index=260&type=chunk) - Diluted EPS was a loss of **$0.56** for Q2 2025, compared to income of **$0.50** for Q2 2024, negatively impacted by preferred dividends of **$1.5 million** and **$1.4 million**, respectively[261](index=261&type=chunk) [Comparison of Segment Results (Six Months)](index=89&type=section&id=Comparison%20of%20Segment%20Results%20%28Six%20Months%29) This section analyzes the changes in revenue and operating income/loss for the International Telecom and US Telecom segments for the six months ended June 30 - International Telecom revenue increased by **$1.0 million (0.5%)** to **$189.4 million**, driven by ancillary services, partially offset by reductions in Mobility and Fixed revenue[266](index=266&type=chunk) - International Telecom operating expenses increased by **$14.1 million (9.8%)** to **$158.4 million**, influenced by a **$15.8 million** gain on asset disposition in the prior year and a **$1.7 million** increase in restructuring expenses[267](index=267&type=chunk) - International Telecom operating income decreased by **$13.2 million (29.9%)** to **$31.0 million**[268](index=268&type=chunk) - US Telecom revenue decreased by **$10.5 million (5.8%)** to **$171.2 million**, primarily due to a **$7.4 million** reduction in Fixed revenues (ECF and ACP conclusion), **$1.6 million** in Mobility, and **$1.1 million** in Carrier Services, partially offset by a **$0.9 million** increase in construction revenue[269](index=269&type=chunk) - US Telecom operating expenses decreased by **$1.0 million (0.6%)** to **$179.2 million**, due to reduced direct costs of services and cost savings initiatives[270](index=270&type=chunk) - US Telecom operating income shifted to a loss of **$7.9 million** from an income of **$1.5 million**[271](index=271&type=chunk) [Comparison of Consolidated Results (Six Months)](index=90&type=section&id=Comparison%20of%20Consolidated%20Results%20%28Six%20Months%29) This section provides a consolidated comparison of key financial metrics, including revenue, operating expenses, and net income (loss), for the six months ended June 30 Consolidated Results (Six Months Ended June 30, In Thousands) | Metric | 2025 | 2024 | Amount of Increase (Decrease) | Percent Increase (Decrease) | | :------------------------------------------ | :----- | :----- | :---------------------------- | :-------------------------- | | Communication services revenue | $348,905 | $358,633 | $(9,728) | (2.7)% | | Construction revenue | $3,262 | $2,406 | $856 | 35.6% | | Other revenue | $8,427 | $9,037 | $(610) | (6.8)% | | **Total revenue** | **$360,594** | **$370,076** | **$(9,482)** | **(2.6)%** | | Total operating expenses | $357,694 | $341,186 | $16,508 | 4.8% | | Income from operations | $2,900 | $28,890 | $(25,990) | (90.0)% | | Income (loss) before income taxes | $(24,614) | $5,213 | $(29,827) | (572.2)% | | NET INCOME (LOSS) | $(20,647) | $3,391 | $(24,038) | (708.9)% | | NET INCOME (LOSS) ATTRIBUTABLE TO ATN INTERNATIONAL, INC. STOCKHOLDERS | $(15,954) | $2,690 | $(18,644) | (693.1)% | [Communications Services Revenue](index=90&type=section&id=Communications%20Services%20Revenue) This section details changes in Mobility, Fixed, Carrier Services, and Other Communications Services revenue for the six months ended June 30, by segment - Mobility revenue decreased by **$2.1 million (3.9%)** to **$52.4 million** for H1 2025, due to a **$0.4 million** decrease in International Telecom (consumer equipment sales) and a **$1.6 million** decrease in US Telecom (conclusion of retail mobility services)[274](index=274&type=chunk)[276](index=276&type=chunk) - Fixed revenue decreased by **$7.8 million (3.3%)** to **$226.1 million** for H1 2025, primarily due to a **$0.4 million** decrease in International Telecom (business customers) and a **$7.4 million** decrease in US Telecom (conclusion of ECF and ACP programs)[277](index=277&type=chunk)[281](index=281&type=chunk) - Carrier Services revenue decreased by **$0.9 million (1.3%)** to **$66.4 million** for H1 2025, with a **$0.1 million** increase in International Telecom (roaming) offset by a **$1.1 million** decrease in US Telecom (transition to carrier service management contracts)[277](index=277&type=chunk)[281](index=281&type=chunk) - Other Communications Services revenue increased by **$1.1 million (37.9%)** to **$4.0 million** for H1 2025, due to increased project-related and ancillary services in International Telecom, partially offset by reduced non-recurring project revenue in US Telecom[278](index=278&type=chunk) [Construction Revenue](index=92&type=section&id=Construction%20Revenue) This section discusses the increase in construction revenue, primarily driven by completed FirstNet cell sites, for the six months ended June 30 - Construction revenue increased to **$3.3 million** for H1 2025 from **$2.4 million** for H1 2024, a **35.6%** increase, primarily due to an increase in completed FirstNet cell sites[273](index=273&type=chunk)[279](index=279&type=chunk] The build is expected to be substantially complete by the end of 2025[279](index=279&type=chunk) [Other Revenue](index=92&type=section&id=Other%20Revenue) This section details the decrease in Managed Services revenue for the six months ended June 30, across both International and US Telecom segments - Managed Services revenue decreased by **$0.6 million (6.7%)** to **$8.4 million** for H1 2025, with decreases of **$0.2 million** in International Telecom and **$0.4 million** in US Telecom[280](index=280&type=chunk) [Operating Expenses](index=92&type=section&id=Operating%20Expenses) This section analyzes changes in cost of communication services, construction revenue, SG&A, restructuring, depreciation, and asset disposition for the six months ended June 30 - Cost of communication services and other decreased by **$1.1 million (0.7%)** to **$155.4 million** for H1 2025[273](index=273&type=chunk)[284](index=284&type=chunk] International Telecom increased by **$0.7 million** (transport, doubtful accounts, maintenance), while US Telecom decreased by **$2.0 million** (cost savings, ECF program conclusion)[284](index=284&type=chunk) - Cost of construction revenue increased to **$3.7 million** for H1 2025 from **$2.4 million** for H1 2024, a **54.7%** increase, due to more completed FirstNet sites[273](index=273&type=chunk)[285](index=285&type=chunk) - Selling, general and administrative expenses decreased by **$7.6 million (6.4%)** to **$111.4 million** for H1 2025, due to cost containment initiatives across all segments (International Telecom: **$2.9M** decrease, US Telecom: **$2.8M** decrease, Corporate Overhead: **$1.8M** decrease)[273](index=273&type=chunk)[286](index=286&type=chunk)[289](index=289&type=chunk) - Transaction-related charges increased significantly to **$1.6 million** for H1 2025 from a nominal amount in H1 2024[273](index=273&type=chunk)[290](index=290&type=chunk) - Restructuring and reorganization expenses totaled **$6.7 million** for H1 2025 (International Telecom: **$2.9M**, US Telecom: **$2.5M**, Corporate and Other: **$1.4M**), compared to **$1.2 million** in H1 2024 (International Telecom)[273](index=273&type=chunk)[291](index=291&type=chunk)[292](index=292&type=chunk) - Depreciation and amortization expenses decreased by **$1.5 million (2.2%)** to **$68.4 million** for H1 2025, due to reduced capital expenditures and fully depreciated assets in International Telecom (**$1.9M** decrease) and US Telecom (**$1.3M** decrease)[273](index=273&type=chunk)[292](index=292&type=chunk)[296](index=296&type=chunk) - Loss on disposition of assets and transfers was **$3.4 million** for H1 2025 (International Telecom: **$0.4M**, US Telecom: **$3.0M**), compared to a **$16.4 million** gain in H1 2024 (primarily from real estate sale in International Telecom and renewable energy assets)[273](index=273&type=chunk)[294](index=294&type=chunk)[295](index=295&type=chunk) [Other Income (Expense)](index=98&type=section&id=Other%20Income%20%28Expense%29) This section discusses changes in interest income, interest expense, and other expenses, including foreign currency transaction losses, for the six months ended June 30 - Interest income decreased by **$0.2 million (31.1%)** to **$0.4 million** for H1 2025[273](index=273&type=chunk)[295](index=295&type=chunk) - Interest expense increased by **$0.9 million (3.8%)** to **$24.8 million** for H1 2025, due to increased borrowings[273](index=273&type=chunk)[298](index=298&type=chunk) - Other expense increased significantly to **$3.2 million** for H1 2025, primarily due to a non-operating employee-related matter and **$1.0 million** in foreign currency transaction losses[273](index=273&type=chunk)[298](index=298&type=chunk) [Income Taxes](index=98&type=section&id=Income%20Taxes) This section details the effective tax rates and income tax expenses/benefits for the six months ended June 30, highlighting influencing factors - The effective tax rate for H1 2025 was **16.1%** (benefit of **$4.0 million** on a pretax loss of **$24.6 million**), compared to **35.0%** for H1 2024 (expense of **$1.8 million** on a pretax income of **$5.2 million**)[299](index=299&type=chunk)[300](index=300&type=chunk)[301](index=301&type=chunk) [Net (income) loss attributable to noncontrolling interests, net of tax](index=98&type=section&id=Net%20%28income%29%20loss%20attributable%20to%20noncontrolling%20interests%2C%20net%20of%20tax) This section explains the allocation of net income or loss to noncontrolling interests for the six months ended June 30, by segment - Net loss attributable to noncontrolling interests was an allocation of **$4.7 million** in losses for H1 2025, compared to **$0.7 million** in income for H1 2024[273](index=273&type=chunk)[303](index=303&type=chunk) - International Telecom's net income attributable to noncontrolling interests decreased by **$2.8 million** to an allocation of **$3.8 million** of income, largely due to the **$15.9 million** gain on asset disposition in H1 2024[303](index=303&type=chunk) - US Telecom's net loss attributable to noncontrolling interests increased by **$2.6 million** to an allocation of **$8.5 million** in losses, due to increased losses at less than wholly owned subsidiaries[304](index=304&type=chunk) [Net loss attributable to ATN International, Inc. stockholders](index=100&type=section&id=Net%20loss%20attributable%20to%20ATN%20International%2C%20Inc.%20stockholders) This section presents the net loss attributable to ATN International, Inc. stockholders and diluted EPS for the six months ended June 30 - Net loss attributable to ATN International, Inc. stockholders was **$16.0 million** for H1 2025, compared to **$2.7 million** for H1 2024[304](index=304&type=chunk) - Diluted EPS was a loss of **$1.25** for H1 2025, compared to break-even for