Financial Highlights - Reached over $10 billion in PCF deals signed to date[8] - Debt refinancing and term loan repricing of $24 billion extends maturities and reduces cash interest[8] - Total revenue was $3087 billion, a decrease of 42% year-over-year[36] - Adjusted EBITDA was $787 million, a decrease of 125% year-over-year, with an adjusted EBITDA margin of 255%[41] - Free cash flow was $1661 billion[44] Strategic Initiatives and Growth - Over 1500 customers adopted Lumen NaaS since launch[8] - NaaS customers increased by 32% quarter-over-quarter, fabric ports deployed by customers increased by 30%, and services sold across all fabric ports increased by 36%[22] - Fiber broadband revenue in Mass Markets was $225 million, an increase of 184% year-over-year, contributing 36% to total broadband revenue[38] Network and Infrastructure - Total intercity fiber miles increased from 12 million in 2022 to a planned 17 million in 2025, with a vision of 47 million by 2028[13] - Hyperscaler utilization is projected to increase from 30% in 2022 to 45% in 2025 and 57% in 2028[13] Debt and Leverage - Total debt as of September 30, 2025, was $180 billion[34] - Pro forma total debt after planned paydown and Lumen SP debt paydown is projected to be $131 billion, with gross leverage less than 38x[34]

Financial Performance & Outlook - Lumen reported total revenue of $3092 million, a decrease of 5.4% year-over-year and 2.8% quarter-over-quarter[30] - Adjusted EBITDA was $877 million, down 13.3% year-over-year, with an adjusted EBITDA margin of 28.4%, a decrease of 250 bps[35] - The company is guiding towards the high end of its adjusted EBITDA range due to strength in modernization and simplification programs[8] - Lumen revised its 2025 free cash flow outlook upwards to $1.2 to $1.4 billion, primarily driven by a $400 million tax refund, lower capital expenditures, better adjusted EBITDA performance, and lower interest expense[40] Debt Management - Lumen has reached nearly $9 billion in Private Connectivity Fabric (PCF) deals signed to date[8] - The company completed $2 billion in debt refinancing, extending maturities and reducing cash interest[8] - Pro forma Lumen SP debt paydown is projected to result in total debt of $13.5 billion and a gross leverage of 3.9x[28] Strategic Initiatives - Lumen announced the sale of its Consumer FTTH (fiber-to-the-home) business to AT&T for $5.75 billion to reduce leverage and focus on enterprise services[8] - The company is focused on building the backbone for AI, balancing capacity and utilization for optimal return on investment[10] - Lumen is experiencing strong NaaS (Network as a Service) adoption, with a 35% quarter-over-quarter increase in LCF (Lumen Cloud Fabric) customers purchasing and using one or more ports[14] Mass Markets - Total Mass Markets revenue was $602 million, a decrease of 12.8% year-over-year[30] - Fiber Broadband revenue within Mass Markets was $217 million, an increase of 19.9% year-over-year, contributing 36% to total broadband revenue[32]