Financial Data and Key Metrics Changes - Revenue for the second quarter was $181.3 million, down 1% year over year, primarily due to the wind down of subsidy programs and decommissioning of legacy services [15][19] - Adjusted EBITDA decreased by 6% to $45.8 million, reflecting lower U.S. telecom revenues [17][19] - Net loss for the quarter was $7 million, or $0.56 per share, compared to a net income of $9 million, or $0.50 per share in the prior year [16][19] - Net cash from operations rose 2% to approximately $60 million, driven largely by working capital improvements [4][21] Business Segment Performance - International segment revenues were approximately $95 million, essentially flat year over year, with growth in fiber services offset by declines in legacy services [18] - Adjusted EBITDA for the International segment remained flat at $33.3 million, reflecting cost containment efforts [19] - Domestic segment revenues were $86.4 million, down 1.7% year over year, impacted by the conclusion of subsidy programs and decommissioning of legacy services [19] - Adjusted EBITDA for the domestic segment decreased by 16.7% to $18.3 million, primarily due to revenue performance [20] Market Data and Key Metrics Changes - In the largest mobile market, postpaid subscribers grew by 4% year over year, with a 25% increase in data plan purchases [7] - High-speed data average revenue per user (ARPU) improved by 3% year over year, while subscriber churn also improved by 3% [8] - Consumer broadband subscriber base grew by over 10% in the quarter, with positive trends in ARPU [10] Company Strategy and Industry Competition - The company remains committed to its long-term strategy of expanding fiber and fiber-fed services in underserved markets [6][12] - Strategic investments have led to an 8% increase in broadband homes passed by high-speed data services [5] - The company is focused on transitioning its U.S. business by growing fiber and carrier services while phasing out non-strategic legacy products [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to absorb short-term effects from evolving subsidy programs and regulatory changes [11] - The company reaffirmed its full-year guidance, expecting revenue to align with 2024 levels of $725 million, excluding construction revenue [22] - Management noted that the second half of the year is expected to contribute a larger share of full-year results, with improvements anticipated in operational efficiency and cash flow [22] Other Important Information - The Board of Directors approved a 15% increase in the quarterly dividend, raising it to $0.0275 per share, reflecting confidence in cash flow resilience [5] - The company ended the quarter with $113.3 million in cash, up from $97.3 million at the end of Q1 [20] Q&A Session Summary Question: Impact of the one triple B bill - Management indicated that the bill has not had an impact yet, but they are monitoring it closely [32][33] Question: Competition and access to labor and materials in fiber deployment - Management noted that expedited permitting policies will help speed up deployment, and currently, there is sufficient labor supply to meet needs [35][39] Question: Potential for fiber business to be converted into a REIT structure - Management stated that this is not something they have explored yet, although they acknowledge the opportunities in digital infrastructure [42] Question: When might growth in fiber-led services offset declines in legacy services? - Management is optimistic about improvements in the second half of the year, with a decent pipeline and increased demand from carriers [45][47] Question: Changes in competitive dynamics in the mobile market - Management acknowledged ongoing competitive pressures but noted improvements in subscriber quality and data consumption trends [48][50]

Financial Performance - ATN's Q2 2025 total revenue was $181 million, with US contributing 48% and International 52%[17] - Adjusted EBITDA for Q2 2025 was $46 million, with US accounting for 35% and International 65%[17] - US Telecom revenue decreased by 2% to $86 million, and Adjusted EBITDA decreased by 17% to $18 million[23] - International Telecom revenue remained flat at $95 million, and Adjusted EBITDA also remained flat at $33 million[22] Key Performance Indicators - High-Speed Data Broadband Homes Passed increased by 8% year-over-year to approximately 428,000[15] - High-Speed Data Customers increased by 1% year-over-year to approximately 142,000[15] - International Mobile Subscribers decreased by 1% year-over-year to approximately 393,000, with Pre-Paid subscribers increasing by 4% to approximately 60,000 and Post-Paid subscribers decreasing by 2% to approximately 332,000[15] - Fiber Route Miles increased by 1% year-over-year to approximately 12,000[13] Balance Sheet and Capital Allocation - The company's cash position as of June 30, 2025, was $113 million, with a debt position of $583 million and undrawn revolver capacity of $178 million[26] - Year-to-date capital expenditures for FY25 amounted to $42 million[26] - The Net Debt Ratio was 258x as of June 30, 2025[26] Outlook - The company reaffirms its full-year 2025 outlook, expecting revenue (excluding construction revenue) to be in line with 2024 revenue of $725 million, Adjusted EBITDA to be flat with 2024 Adjusted EBITDA of $184 million, and capital expenditures to be between $90 million and $100 million[29]

[Report Overview & Key Highlights](index=1&type=section&id=Report%20Overview%20%26%20Key%20Highlights) [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) ATN reports Q2 2025 revenue decreased 1% to $181.3 million year-over-year, operating income significantly dropped to $0.2 million, with a net loss of $(7.0) million, and Adjusted EBITDA decreased 6% | Metric (in Millions) | Q2 2025 | Q2 2024 | Change | | :----- | :------ | :------ | :----- | | Revenues | $181.3 | $183.3 | -1% | | Operating Income | $0.2 | $24.3 | -99.2% | | Net Loss | $(7.0) | $9.0 (Net Income) | N/A | | EPS | $(0.56) | $0.50 | N/A | | Adjusted EBITDA | $45.8 | $48.7 | -6% | - High-speed broadband homes passed increased by **8%**, and total high-speed subscribers increased by **1%**[4](index=4&type=chunk) [Reaffirmed Outlook for Full Year 2025](index=1&type=section&id=Reaffirmed%20Outlook%20for%20Full%20Year%202025) ATN reaffirms its FY2025 outlook, expecting revenue (excluding construction) and Adjusted EBITDA to be essentially flat at $725 million and $184 million respectively, with capital expenditures projected between $90 million and $100 million | Metric (in Millions) | Full Year 2025 Outlook | Full Year 2024 Result | Expected Change | | :----- | :--------------------- | :-------------------- | :-------------- | | Revenue (excl. construction) | ~$725 | $725 | In line | | Adjusted EBITDA | ~$184 | $184 | Essentially flat | | Capital Expenditures (net) | $90 - $100 | $110.4 | Decrease | | Net Debt Ratio | Flat to slight improvement | 2.54x | Flat to slight improvement | [Remarks by Brad Martin, ATN Chief Executive Officer](index=2&type=section&id=Remarks%20by%20Brad%20Martin,%20ATN%20Chief%20Executive%20Officer) CEO Brad Martin states Q2 results met expectations, reflecting efforts in cost structure optimization and long-term strategy execution, with international operations showing positive growth while US operations improve despite challenges - Second quarter results met expectations, reflecting the company's efforts in optimizing its cost structure and executing its long-term strategy[6](index=6&type=chunk) - The International segment is focused on enhancing its mobile network, improving service quality, expanding its post-paid subscriber base, and increasing operational efficiency[6](index=6&type=chunk) - US operations revenue performance was impacted by the termination of a subsidy program and the transition from legacy consumer services, but is beginning to show sequential improvement as the company focuses on providing best-in-class carrier and enterprise solutions and expanding fiber and fiber-fed fixed wireless deployments[6](index=6&type=chunk) - The company's business-wide focus on simplification, operational stability, and prudent capital allocation is driving stronger cash generation[7](index=7&type=chunk) [Consolidated Financial Results](index=2&type=section&id=Consolidated%20Financial%20Results) [Second Quarter 2025 Consolidated Performance](index=2&type=section&id=Second%20Quarter%202025%20Financial%20Results) Q2 2025 consolidated revenue decreased 1% year-over-year to $181.3 million, with operating income significantly dropping to $0.2 million due to asset disposal losses and restructuring charges, resulting in a net loss of $(7.0) million | Metric (in Thousands) | Q2 2025 | Q2 2024 | Change (%) | | :----- | :--------------------- | :--------------------- | :--------- | | Total Revenue | $181,300 | $183,281 | -1.08% | | Operating Income (Loss) | $233 | $24,316 | -99.04% | | Net Income (Loss) attributable to ATN | $(7,026) | $9,003 | N/A | | Diluted EPS | $(0.56) | $0.50 | N/A | | Adjusted EBITDA | $45,792 | $48,670 | -5.89% | - The significant decrease in operating income was primarily due to a **$15.9 million net gain on asset disposals in Q2 2024** compared to a **$2.7 million loss in Q2 2025**, partially offset by cost control measures, and impacted by **$4.9 million in restructuring charges**[8](index=8&type=chunk) [Six Months Ended June 30, 2025 Consolidated Performance](index=9&type=section&id=Six%20Months%20Ended%20June%2030,%202025%20Consolidated%20Performance) For the six months ended June 30, 2025, total revenue decreased 2.56% to $360.6 million, operating income significantly dropped to $2.9 million, and the company reported a net loss of $(16.0) million | Metric (in Thousands) | 6 Months 2025 | 6 Months 2024 | Change (%) | | :----- | :--------------------------- | :--------------------------- | :--------- | | Total Revenue | $360,594 | $370,076 | -2.56% | | Operating Income (Loss) | $2,900 | $28,890 | -89.96% | | Net Income (Loss) attributable to ATN | $(15,954) | $2,690 | N/A | | Diluted EPS | $(1.25) | $(0.00) | N/A | [Segment Operating Results](index=3&type=section&id=Segment%20Operating%20Results) ATN's operations are divided into International Telecom, US Telecom, and Corporate and Other segments, with International Telecom maintaining stable revenue and positive contributions, while US Telecom faces revenue decline and operating losses due to subsidy program termination and legacy service transition [Segment Results for Three Months Ended June 30, 2025](index=3&type=section&id=For%20Three%20Months%20Ended%20June%2030,%202025) In Q2 2025, International Telecom reported $94.9 million in revenue, $16.2 million in operating income, and $33.3 million in Adjusted EBITDA, while US Telecom had $86.4 million in revenue, an operating loss of $(5.5) million, and Adjusted EBITDA of $18.3 million | Metric (in Thousands) | International Telecom | US Telecom | Corporate and Other | Total ATN | | :-------------------- | :-------------------- | :--------- | :------------------ | :-------- | | Total Revenue | $94,894 | $86,406 | $- | $181,300 | | Operating Income (Loss) | $16,221 | $(5,533) | $(10,455) | $233 | | Adjusted EBITDA | $33,274 | $18,262 | $(5,744) | $45,792 | [Segment Results for Three Months Ended June 30, 2024](index=3&type=section&id=For%20Three%20Months%20Ended%20June%2030,%202024) In Q2 2024, International Telecom reported $95.4 million in revenue, $32.4 million in operating income, and $33.3 million in Adjusted EBITDA, while US Telecom had $87.9 million in revenue, $0.9 million in operating income, and $21.9 million in Adjusted EBITDA | Metric (in Thousands) | International Telecom | US Telecom | Corporate and Other | Total ATN | | :-------------------- | :-------------------- | :--------- | :------------------ | :-------- | | Total Revenue | $95,357 | $87,924 | $- | $183,281 | | Operating Income (Loss) | $32,405 | $884 | $(8,973) | $24,316 | | Adjusted EBITDA | $33,285 | $21,919 | $(6,534) | $48,670 | [Segment Results for Six Months Ended June 30, 2025](index=3&type=section&id=For%20Six%20Months%20Ended%20June%2030,%202025) For the six months ended June 30, 2025, International Telecom reported $189.4 million in revenue, $31.0 million in operating income, and $65.7 million in Adjusted EBITDA, while US Telecom had $171.2 million in revenue, an operating loss of $(7.9) million, and Adjusted EBITDA of $35.8 million | Metric (in Thousands) | International Telecom | US Telecom | Corporate and Other | Total ATN | | :-------------------- | :-------------------- | :--------- | :------------------ | :-------- | | Total Revenue | $189,390 | $171,204 | $- | $360,594 | | Operating Income (Loss) | $30,970 | $(7,948) | $(20,122) | $2,900 | | Adjusted EBITDA | $65,665 | $35,774 | $(11,308) | $90,131 | [Segment Results for Six Months Ended June 30, 2024](index=3&type=section&id=For%20Six%20Months%20Ended%20June%2030,%202024) For the six months ended June 30, 2024, International Telecom reported $188.4 million in revenue, $44.1 million in operating income, and $62.6 million in Adjusted EBITDA, while US Telecom had $181.7 million in revenue, $1.5 million in operating income, and $42.6 million in Adjusted EBITDA | Metric (in Thousands) | International Telecom | US Telecom | Corporate and Other | Total ATN | | :-------------------- | :-------------------- | :--------- | :------------------ | :-------- | | Total Revenue | $188,416 | $181,660 | $- | $370,076 | | Operating Income (Loss) | $44,090 | $1,482 | $(16,682) | $28,890 | | Adjusted EBITDA | $62,558 | $42,622 | $(12,992) | $92,188 | [Operating Metrics](index=4&type=section&id=Operating%20Metrics) ATN's Q2 2025 operating metrics show high-speed data broadband homes passed increased 8% and high-speed data broadband customers grew 1%, while total broadband customers decreased 5% and total mobile subscribers declined 1% | Metric | Q2 2025 | Q2 2024 | YoY Change | | :-------------------------------- | :------ | :------ | :--------- | | High-Speed Data Broadband Homes Passed | 427,500 | 396,100 | 8% | | High-Speed Data Broadband Customers | 141,900 | 140,600 | 1% | | Broadband Homes Passed | 803,400 | 798,300 | 1% | | Broadband Customers | 200,300 | 211,400 | -5% | | Fiber Route Miles | 11,957 | 11,880 | 1% | | International Mobile Pre-Paid Subscribers | 332,300 | 339,000 | -2% | | International Mobile Post-Paid Subscribers | 60,200 | 57,900 | 4% | | International Mobile Total Subscribers | 392,500 | 396,900 | -1% | | Blended Churn | 3.09% | 3.44% | -0.35 pp | [Balance Sheet and Cash Flow Analysis](index=4&type=section&id=Balance%20Sheet%20and%20Cash%20Flow%20Analysis) [Balance Sheet Highlights](index=4&type=section&id=Balance%20Sheet%20Highlights) As of June 30, 2025, ATN's total cash, cash equivalents, and restricted cash increased to $113.3 million, total debt rose to $583.4 million, resulting in a net debt ratio of 2.58x, while total assets slightly decreased to $1,707.0 million | Metric (in Thousands) | June 30, 2025 | December 31, 2024 | Change | | :-------------------- | :------------ | :---------------- | :----- | | **Assets:** | | | | | Cash and cash equivalents | $98,965 | $73,393 | | | Restricted cash | $14,350 | $15,851 | | | Total current assets | $327,752 | $309,161 | | | Property, plant and equipment, net | $1,010,631 | $1,040,193 | | | Total assets | $1,707,006 | $1,727,103 | -1.16% | | **Liabilities & Equity:** | | | | | Current portion of long-term debt | $14,851 | $8,226 | | | Total current liabilities | $269,024 | $267,314 | | | Long-term debt, net of current portion | $568,548 | $549,130 | | | Total liabilities | $1,060,519 | $1,055,349 | +0.49% | | Total stockholders' equity | $567,772 | $595,451 | | [Cash Flow Highlights](index=4&type=section&id=Cash%20Flow%20Highlights) For the six months ended June 30, 2025, net cash provided by operating activities increased 2% to $59.8 million, primarily due to improved working capital, while capital expenditures (net of reimbursements) decreased to $42.0 million | Metric (in Thousands) | 6 Months 2025 | 6 Months 2024 | Change (%) | | :-------------------- | :------------ | :------------ | :--------- | | Net cash provided by operating activities | $59,843 | $58,410 | +2.45% | | Capital expenditures (net of reimbursements) | $42,016 | $61,830 | -32.04% | - Net cash provided by operating activities increased primarily due to improved working capital[20](index=20&type=chunk) [Capital Allocation & Debt](index=4&type=section&id=Capital%20Allocation%20%26%20Debt) [Quarterly Dividends and Stock Repurchases](index=4&type=section&id=Quarterly%20Dividends%20and%20Stock%20Repurchases) In Q2 2025, the quarterly dividend increased 15% to $0.275 per share, paid on July 7, 2025, with no stock repurchases made during the quarter - Quarterly dividend increased by **15% to $0.275 per share**[21](index=21&type=chunk) - The company did not repurchase any shares during the quarter ended June 30, 2025[23](index=23&type=chunk) [Net Debt Ratio](index=16&type=section&id=Net%20Debt%20Ratio) As of June 30, 2025, the net debt ratio was 2.58x, calculated as net debt of $470.1 million divided by Adjusted EBITDA of $182.0 million for the trailing four quarters | Metric (in Thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Total debt | $583,399 | $557,356 | | Less: Cash, cash equivalents and restricted cash | $113,315 | $89,244 | | Net Debt | $470,084 | $468,112 | | Adjusted EBITDA - for the four quarters ended | $182,027 | $184,084 | | Net Debt Ratio | 2.58 | 2.54 | [2025 Business Outlook](index=5&type=section&id=2025%20Business%20Outlook) ATN reaffirms its FY2025 guidance, expecting revenue (excluding construction) and Adjusted EBITDA to be essentially flat at $725 million and $184 million respectively, with capital expenditures projected between $90 million and $100 million, and the net debt ratio expected to remain stable or slightly improve - ATN reaffirms its 2025 guidance, confident in creating long-term value through prudent execution and strategic focus[23](index=23&type=chunk) | Metric (in Millions) | Full Year 2025 Outlook | Full Year 2024 Result | Expected Change | | :----- | :--------------------- | :-------------------- | :-------------- | | Revenue (excl. construction) | ~$725 | $725 | In line | | Adjusted EBITDA | ~$184 | $184 | Essentially flat | | Capital expenditures (net) | $90 - $100 | $110.4 | Decrease | | Net Debt Ratio | Flat to slight improvement | 2.54x | Flat to slight improvement | [Company Information & Non-GAAP Measures](index=6&type=section&id=Company%20Information%20%26%20Non-GAAP%20Measures) [About ATN](index=6&type=section&id=About%20ATN) ATN International, Inc. is a leading digital infrastructure and communication services provider headquartered in Beverly, Massachusetts, operating in the US and internationally, focusing on rural and remote markets with growing infrastructure investment needs - ATN International, Inc. is a leading digital infrastructure and communication services provider, headquartered in Beverly, Massachusetts[26](index=26&type=chunk) - The company operates in the US and internationally, including the Caribbean, focusing on rural and remote markets with growing infrastructure investment needs[26](index=26&type=chunk) - Primary business includes providing advanced wireless and wireline connectivity services to residential, commercial, and government customers, as well as carrier and enterprise communication services[26](index=26&type=chunk) [Use of Non-GAAP Financial Measures and Definition of Terms](index=6&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures%20and%20Definition%20of%20Terms) This section defines ATN's non-GAAP financial measures, including EBITDA, Adjusted EBITDA, Net Debt, and Net Debt Ratio, which are used to help investors understand core operating performance and facilitate comparisons - EBITDA is defined as operating income (loss) before depreciation and amortization expense[28](index=28&type=chunk) - Adjusted EBITDA is defined as operating income (loss) before depreciation and amortization expense, transaction-related expenses, restructuring and reorganization expenses, one-time impairment or special charges, gain or loss on asset disposals and transfers, and non-cash stock-based compensation expense[28](index=28&type=chunk) - Net Debt is defined as total debt less cash and cash equivalents and restricted cash[29](index=29&type=chunk) - The Net Debt Ratio is defined as Net Debt divided by the sum of Adjusted EBITDA for the trailing four quarters ended as of the measurement date[30](index=30&type=chunk) [Cautionary Language Concerning Forward-Looking Statements](index=7&type=section&id=Cautionary%20Language%20Concerning%20Forward-Looking%20Statements) This section warns that the press release contains forward-looking statements based on estimates and assumptions, which are not guarantees of future events or results, and actual outcomes may differ materially due to various factors - This press release contains forward-looking statements based on estimates, projections, beliefs, and assumptions, which are not guarantees of future events or results[33](index=33&type=chunk) - Actual future events and results may differ materially due to various factors, including operational performance, government subsidy programs, personnel recruitment, reliance on key suppliers, customer demand, fiber market expansion, network capacity, technology upgrades, capital market access, US telecom business growth, economic downturn risks, investment opportunities, and natural disasters and increased competition[33](index=33&type=chunk) [Contact Information](index=7&type=section&id=Contact) Provides contact information for Michele Satrowsky, Corporate Treasurer, and Adam Rogers, Investor Relations, for inquiries - Contact information is provided for Michele Satrowsky, Corporate Treasurer, and Adam Rogers, Investor Relations[34](index=34&type=chunk) [Detailed Financial Statements & Reconciliations](index=8&type=section&id=Detailed%20Financial%20Statements%20%26%20Reconciliations) [Unaudited Condensed Consolidated Balance Sheets](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) The consolidated balance sheets provide a snapshot of ATN's financial position as of June 30, 2025, and December 31, 2024, detailing assets, liabilities, and stockholders' equity | (in Thousands) | June 30, 2025 | December 31, 2024 | | :------------- | :------------ | :---------------- | | **Assets:** | | | | Cash and cash equivalents | $98,965 | $73,393 | | Restricted cash | $14,350 | $15,851 | | Total current assets | $327,752 | $309,161 | | Property, plant and equipment, net | $1,010,631 | $1,040,193 | | Total assets | $1,707,006 | $1,727,103 | | **Liabilities & Equity:** | | | | Current portion of long-term debt | $14,851 | $8,226 | | Total current liabilities | $269,024 | $267,314 | | Long-term debt, net of current portion | $568,548 | $549,130 | | Total liabilities | $1,060,519 | $1,055,349 | | Total stockholders' equity | $567,772 | $595,451 | [Unaudited Condensed Consolidated Statements of Operations](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) The consolidated statements of operations present ATN's revenue, expenses, and net income (loss) for the three and six months ended June 30, 2025, and 2024 | (in Thousands, Except per Share Data) | 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 | | Operating income (loss) | $233 | $24,316 | $2,900 | $28,890 | | Loss before income taxes | $(13,036) | $11,541 | $(24,614) | $5,213 | | Net income (loss) attributable to ATN International, Inc. stockholders | $(7,026) | $9,003 | $(15,954) | $2,690 | | Diluted EPS | $(0.56) | $0.50 | $(1.25) | $(0.00) | [Unaudited Condensed Consolidated Cash Flow Statements](index=10&type=section&id=Unaudited%20Condensed%20Consolidated%20Cash%20Flow%20Statements) The consolidated cash flow statements detail ATN's sources and uses of cash from operating, investing, and financing activities for the six months ended June 30, 2025, and 2024 | (in Thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------- | :----------------------------- | :----------------------------- | | Net loss | $(20,647) | $3,391 | | Net cash provided by operating activities | $59,843 | $58,410 | | Net cash used in investing activities | $(45,636) | $(46,843) | | Net cash (used) provided by financing activities | $9,864 | $(481) | | Net change in total cash, cash equivalents and restricted cash | $24,071 | $11,086 | | Total cash, cash equivalents and restricted cash, end of period | $113,315 | $73,253 | [Selected Segment Financial Information](index=11&type=section&id=Selected%20Segment%20Financial%20Information) This section provides detailed segmented data for ATN's International Telecom, US Telecom, and Corporate and Other segments, including revenue, operating income (loss), and non-GAAP metrics like EBITDA and Adjusted EBITDA, for the three and six months ended June 30, 2025, and 2024 **Three Months Ended June 30, 2025 (in Thousands):** | Metric | International Telecom | US Telecom | Corporate and Other | Total | | :----- | :-------------------- | :--------- | :------------------ | :---- | | Total Revenue | $94,894 | $86,406 | $- | $181,300 | | Operating income (loss) | $16,221 | $(5,533) | $(10,455) | $233 | | Adjusted EBITDA | $33,274 | $18,262 | $(5,744) | $45,792 | **Three Months Ended June 30, 2024 (in Thousands):** | Metric | International Telecom | US Telecom | Corporate and Other | Total | | :----- | :-------------------- | :--------- | :------------------ | :---- | | Total Revenue | $95,357 | $87,924 | $- | $183,281 | | Operating income (loss) | $32,405 | $884 | $(8,973) | $24,316 | | Adjusted EBITDA | $33,285 | $21,919 | $(6,534) | $48,670 | **Six Months Ended June 30, 2025 (in Thousands):** | Metric | International Telecom | US Telecom | Corporate and Other | Total | | :----- | :-------------------- | :--------- | :------------------ | :---- | | Total Revenue | $189,390 | $171,204 | $- | $360,594 | | Operating income (loss) | $30,970 | $(7,948) | $(20,122) | $2,900 | | Adjusted EBITDA | $65,665 | $35,774 | $(11,308) | $90,131 | **Six Months Ended June 30, 2024 (in Thousands):** | Metric | International Telecom | US Telecom | Corporate and Other | Total | | :----- | :-------------------- | :--------- | :------------------ | :---- | | Total Revenue | $188,416 | $181,660 | $- | $370,076 | | Operating income (loss) | $44,090 | $1,482 | $(16,682) | $28,890 | | Adjusted EBITDA | $62,558 | $42,622 | $(12,992) | $92,188 | [Reconciliation of Non-GAAP Measures](index=15&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section provides detailed reconciliation tables for operating income (loss) to EBITDA and Adjusted EBITDA, presented by segment, for the three and six months ended June 30, 2025, and 2024 **Three Months Ended June 30, 2025 (in Thousands):** | Metric | International Telecom | US Telecom | Corporate and Other | Total | | :----- | :-------------------- | :--------- | :------------------ | :---- | | Operating income (loss) | $16,221 | $(5,533) | $(10,455) | $233 | | Depreciation expense | $15,154 | $17,850 | $859 | $33,863 | | Amortization of intangibles | $251 | $975 | $- | $1,226 | | EBITDA | $31,626 | $13,292 | $(9,596) | $35,322 | | ADJUSTED EBITDA | $33,274 | $18,262 | $(5,744) | $45,792 | **Three Months Ended June 30, 2024 (in Thousands):** | Metric | International Telecom | US Telecom | Corporate and Other | Total | | :----- | :-------------------- | :--------- | :------------------ | :---- | | Operating income (loss) | $32,405 | $884 | $(8,973) | $24,316 | | Depreciation expense | $16,277 | $19,234 | $47 | $35,558 | | Amortization of intangibles | $252 | $1,693 | $- | $1,945 | | EBITDA | $48,934 | $21,811 | $(8,926) | $61,819 | | ADJUSTED EBITDA | $33,285 | $21,919 | $(6,534) | $48,670 | **Six Months Ended June 30, 2025 (in Thousands):** | Metric | International Telecom | US Telecom | Corporate and Other | Total | | :----- | :-------------------- | :--------- | :------------------ | :---- | | Operating income (loss) | $30,970 | $(7,948) | $(20,122) | $2,900 | | Depreciation expense | $30,531 | $36,134 | $1,725 | $68,390 | | Amortization of intangibles | $503 | $1,949 | $- | $2,452 | | EBITDA | $62,004 | $30,135 | $(18,397) | $73,742 | | ADJUSTED EBITDA | $65,665 | $35,774 | $(11,308) | $90,131 | **Six Months Ended June 30, 2024 (in Thousands):** | Metric | International Telecom | US Telecom | Corporate and Other | Total | | :----- | :-------------------- | :--------- | :------------------ | :---- | | Operating income (loss) | $44,090 | $1,482 | $(16,682) | $28,890 | | Depreciation expense | $32,400 | $37,372 | $125 | $69,897 | | Amortization of intangibles | $503 | $3,421 | $- | $3,924 | | EBITDA | $76,993 | $42,275 | $(16,557) | $102,711 | | ADJUSTED EBITDA | $62,558 | $42,622 | $(12,992) | $92,188 |

Core Insights - ATN International, Inc. reported a consolidated revenue of $181.3 million for Q2 2025, a decrease of 1% compared to $183.3 million in Q2 2024, primarily due to the wind-down of subsidy programs and exit from legacy consumer solutions [4][6][7] - The company experienced a net loss of $7.0 million, or $0.56 per share, compared to a net income of $9.0 million, or $0.50 per diluted share, in the same quarter last year [6][7][30] - Adjusted EBITDA for Q2 2025 was $45.8 million, down 6% from $48.7 million in Q2 2024 [6][7][30] Financial Performance - Operating income for Q2 2025 was $0.2 million, significantly lower than $24.3 million in Q2 2024, which had benefited from a net gain of $15.9 million from asset dispositions [5][6][30] - Selling, general, and administrative costs were reduced, partially offsetting restructuring expenses of $4.9 million in the current quarter [5][6] - Net cash provided by operating activities increased by 2% to $59.8 million for the year-to-date period [7][15] Segment Performance - International Telecom revenue was $94.9 million in Q2 2025, slightly down from $95.4 million in Q2 2024, while US Telecom revenue decreased to $86.4 million from $87.9 million [9][36] - The company expanded high-speed broadband homes passed by 8% and grew total high-speed subscribers by 1% [7][12] - The total number of international mobile subscribers decreased by 1% to 392,500, with a 4% increase in post-paid subscribers [12][36] Business Outlook - The company reaffirmed its full-year 2025 guidance, expecting revenue excluding construction revenue to align with last year's result of $725 million and adjusted EBITDA to be flat at approximately $184 million [22][17] - Capital expenditures are projected to be between $90 million and $100 million for the year, compared to $110.4 million in 2024 [22][17] - The net debt ratio is expected to remain flat, with a slight potential improvement by the end of 2025 compared to 2.54x at the end of 2024 [22][17]

Core Points - ATN International, Inc. announced a change in the start time for its second quarter 2025 financial results conference call, now scheduled for 9:00 a.m. ET on August 8, 2025, which is one hour earlier than previously planned [1] - The company provides a live audio webcast of the conference call, with a replay available starting at approximately 1:00 p.m. ET on the same day [2] - ATN International operates in the digital infrastructure and communications services sector, focusing on rural and remote markets, offering advanced wireless and wireline connectivity, as well as carrier and enterprise communications services [4]

Company Overview - ATN International, Inc. is a leading provider of digital infrastructure and communications services, headquartered in Beverly, Massachusetts [4] - The company operates in the United States and internationally, focusing 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, fixed and mobile wireless solutions, video and voice services, as well as carrier and enterprise communications services [4] Upcoming Financial Results - ATN will release its second quarter 2025 results on August 7, 2025, after market close [1] - A conference call to discuss the results will be held on August 8, 2025, at 10:00 a.m. ET [1] - The call will be accessible via a live audio webcast, with a replay available shortly after the call [2] Participation Details - Participants must register through a provided link to receive dial-in numbers and a unique PIN for the live call [3] - If participants forget their PIN or lose the registration confirmation, they can re-register to obtain a new PIN [3] Additional Information - An investor presentation will be available as a supplement to the conference call on the company's Investor Relations website [2] - For further information, the company can be contacted through its corporate treasurer or investor relations [6]

Core Points - ATN International, Inc. announced a quarterly dividend increase of 15% to $0.275 per share, payable on July 7, 2025 [1] - The decision to increase the dividend reflects the company's confidence in its financial strength and future cash flow generation [2] - The company is focused on monetizing investments made during a recent three-year strategic capital spending cycle, supported by cost management and efficiency initiatives [2] Company Overview - ATN International, Inc. is headquartered in Beverly, Massachusetts, and provides digital infrastructure and communications services in the U.S. and internationally, particularly in rural and remote markets [3] - The company's services include advanced wireless and wireline connectivity, high-speed Internet, data services, and carrier and enterprise communications services [3]

Financial Performance - Total revenue for the three months ended March 31, 2025, was $179.294 million, a decrease of 4.0% from $186.794 million in the same period of 2024[14]. - Communication services revenue decreased to $174.031 million from $181.268 million, reflecting a decline of 4.0% year-over-year[14]. - Net loss attributable to ATN International, Inc. stockholders for Q1 2025 was $8.928 million, compared to a net loss of $6.315 million in Q1 2024, representing an increase in loss of 41.5%[14]. - Basic and diluted net loss per share for Q1 2025 was $(0.69), compared to $(0.50) in Q1 2024, indicating a worsening in per-share performance[14]. - The company reported comprehensive loss attributable to ATN International, Inc. of $8.497 million for Q1 2025, compared to $4.883 million in Q1 2024, indicating a significant increase in comprehensive loss[17]. - For the three months ended March 31, 2025, the company reported a net loss of $11,387,000, compared to a net loss of $7,948,000 for the same period in 2024, indicating a year-over-year increase in losses of approximately 43%[22]. - The company reported a total comprehensive loss of $10,956,000 for the three months ended March 31, 2025, compared to a total comprehensive loss of $6,516,000 for the same period in 2024, indicating a 68.0% increase in losses[22]. - The effective tax rate for the three months ended March 31, 2025 was 1.7%, a significant improvement from the effective tax rate of (25.6%) for the same period in 2024[137][138]. Assets and Liabilities - Total current assets decreased slightly to $305.707 million as of March 31, 2025, from $309.161 million at December 31, 2024[12]. - Total liabilities decreased to $1,049.174 million as of March 31, 2025, from $1,055.349 million at December 31, 2024[12]. - Cash and cash equivalents increased to $83.452 million as of March 31, 2025, compared to $73.393 million at December 31, 2024, showing a growth of 13.9%[12]. - Total assets as of March 31, 2025, were $1,707,449 million, compared to $1,727,103 million at the end of 2024, showing a decrease of approximately 1.1%[157]. - Total debt, including current portion, was $562,384 million as of March 31, 2025, slightly up from $557,356 million at the end of 2024[157]. Cash Flow and Expenditures - The company generated net cash provided by operating activities of $35,905,000 for the three months ended March 31, 2025, compared to $23,176,000 for the same period in 2024, reflecting a year-over-year increase of approximately 55%[22]. - Capital expenditures for the three months ended March 31, 2025, were $20,832,000, a decrease from $36,016,000 in the same period of 2024, indicating a reduction of approximately 42%[22]. - The company declared dividends of $3,652,000 on common stock for the three months ended March 31, 2025, compared to $3,720,000 in the same period of 2024, showing a slight decrease of about 2%[22]. Strategic Focus and Investments - The company continues to focus on strategic investment plans and expansion of its customer base, despite facing challenges in operating margins and subscriber growth[8]. - The company is actively evaluating investment opportunities and strategic transactions to enhance its telecommunications business and generate excess operating cash flows[24]. - The company is focused on expanding its digital infrastructure and communications services in rural and remote markets in the U.S. and internationally, including Bermuda and the Caribbean[23]. Revenue Recognition and Performance Obligations - Revenue recognized under ASC 606 for services transferred over time was $158.221 million for Q1 2025, up from $166.603 million in Q1 2024, indicating a decline of about 5.0%[40]. - Remaining performance obligations totaled $595 million as of March 31, 2025, with approximately 43% expected to be satisfied within the next 24 months[47]. - The company recognized $18.3 million in revenue related to contract liabilities during the three months ended March 31, 2025[45]. - Government support revenue for the three months ended March 31, 2025, was $12.672 million, compared to $11.780 million for the same period in 2024, showing an increase of approximately 7.5%[40]. Operational Segments - Operating income for the International Telecom segment was $14.750 million for the three months ended March 31, 2025, while the US Telecom segment reported an operating loss of $2.415 million[154]. - The company’s operating segments include US Telecom and International Telecom, focusing on providing digital infrastructure and communication services in rural and remote markets[23][26].

Financial Data and Key Metrics Changes - Total company revenue for Q1 2025 was $179.3 million, down 4% year over year, primarily due to the wind down of COVID-era government subsidy programs [17][18] - Adjusted EBITDA increased by 2% to $44.3 million, supported by growth in the international segment, despite a decline in the U.S. segment [19] - Cash from operations increased by 55% to $35.9 million, reflecting improved working capital management [21] Business Line Data and Key Metrics Changes - International segment revenues increased to $94.5 million from $93.1 million year over year, with adjusted EBITDA rising to $32.4 million, up from $29.3 million [20] - Domestic segment revenues decreased by 9.5% to $84.8 million, with adjusted EBITDA down 15.4% to $17.5 million due to the conclusion of government subsidy programs [20] Market Data and Key Metrics Changes - The number of broadband homes passed by high-speed data services increased by 11% year on year to 427,000 households, with a 2% growth in high-speed subscriber base [8] - Demand for high-speed broadband and business services remained steady, contributing to improvements in average revenue per user (ARPU) [10] Company Strategy and Development Direction - The company aims to grow its fiber and fiber-fed business while transitioning from legacy consumer services, focusing on operational performance and disciplined investment [11][13] - Approximately $370 million in government-funded broadband infrastructure projects are underway, with over half expected to be completed in 2025, supporting long-term growth strategy [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic uncertainties but expressed confidence in the company's strategy and financial foundation, reaffirming the 2025 outlook [6][13] - The company is monitoring trade and tariff developments, believing it can manage any near-term impacts within its existing financial outlook [14] Other Important Information - The company plans to shift the timing of its earnings release and calls by approximately one week to better align with its 10-Q filing [4][5] - Capital expenditures in Q1 totaled $20.8 million, a reduction from $36 million in the prior year's quarter, reflecting a shift towards increasing operational cash flow [22] Q&A Session Summary Question: How insulated is the company from trade and tariff impacts? - Management indicated that a significant portion of construction materials is sourced in the U.S., while electronics are monitored closely due to potential tariff impacts [33][34] Question: What is the company's exposure to foreign exchange rates? - The company has not seen significant fluctuations in its international markets, particularly in Guyana, which has a buffer due to oil exports [36] Question: How does the company view the marketplace regarding private versus public multiples? - Management is observing the vibrant market dynamics and is focused on unlocking value for investors [37][38] Question: How will government funding impact financials? - Approximately half of the $370 million in government funding projects are expected to be completed in 2025, with significant monetization anticipated in 2026 and 2027 [40][41] Question: What is the outlook for growth in 2026 and 2027? - Management expressed optimism about growth prospects based on carrier demand and ongoing transitions to fiber services [62] Question: How is the company managing interest costs and free cash flow? - The company is focused on improving margins and reducing capital expenditures to enhance free cash flow and provide better capital allocation options [64][65]

Financial Data and Key Metrics Changes - Total company revenue for Q1 2025 was $179.3 million, down 4% year over year, primarily due to the wind down of COVID-era government subsidy programs [16] - Adjusted EBITDA increased by 2% to $44.3 million, supported by growth in the international segment [17] - Net loss for Q1 was $8.9 million, compared to a net loss of $6.3 million in the prior year [16][17] - Cash from operations increased by 55% to $35.9 million, reflecting improved working capital management [20] Business Line Data and Key Metrics Changes - International segment revenues increased to $94.5 million, up from $93.1 million year over year, driven by carrier services growth [18] - Adjusted EBITDA for the international segment rose to $32.4 million, an increase of 10% year over year [18] - Domestic segment revenues were $84.8 million, down 9.5% year over year, impacted by the conclusion of government subsidy programs [19] Market Data and Key Metrics Changes - The number of broadband homes passed by high-speed data services increased by 11% year on year to 427,000 households [8] - High-speed subscriber base grew by 2% year on year, indicating steady demand for broadband services [8] Company Strategy and Development Direction - The company aims to grow its fiber and fiber-fed business while transitioning from legacy consumer services [10] - Approximately $370 million in government-funded broadband infrastructure projects are underway, with over half expected to be completed in 2025 [11] - The focus remains on expanding high-speed broadband and business services in international markets while stabilizing the U.S. business around sustainable revenue streams [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic uncertainties but expressed confidence in operational performance and disciplined investment strategies [6] - The company reaffirmed its 2025 outlook, expecting revenue to align with 2024 levels, excluding construction revenue [22] - Management is monitoring trade and tariff developments, believing they can manage any near-term impacts within the existing financial outlook [13] Other Important Information - The company plans to shift the timing of its earnings release and calls by approximately one week to better align with its 10-Q filing [4][5] - Capital expenditures in Q1 totaled $20.8 million, a reduction from $36 million in the prior year's quarter, reflecting a shift towards increasing operational cash flow [21] Q&A Session Summary Question: How insulated is the company from trade and tariff impacts? - The company sources a significant portion of its fiber construction materials in the U.S., while electronics are monitored closely due to potential tariff impacts [31][33] Question: What is the company's exposure to foreign exchange rates? - The majority of international operations are in stable markets, with no significant fluctuations observed so far [35] Question: How does the company view the marketplace regarding private versus public multiples? - The company is observing the vibrant market dynamics and is focused on unlocking value for investors [36] Question: How will government funding impact financials? - Approximately half of the $370 million in government funding projects are expected to be completed in 2025, with significant monetization anticipated in 2026 and 2027 [40][41] Question: What is the outlook for the BEAD program? - The company is participating in the BEAD program, with funding dynamics being monitored closely, and expects delays in award timing [44][46] Question: What progress has been made in monetizing investments? - New leadership teams have been established, and there is growing carrier demand for access and transport services, indicating positive progress [49][51]