GCI Liberty Reports Third Quarter 2025 Financial Results

GCI Liberty Reports Third Quarter 2025 Financial Results

GCI Liberty, Inc. (“GCI Liberty”) (Nasdaq: GLIBA, GLIBK) immediately reported third quarter 2025 outcomes.

Headlines embody(1):

GCI(2) income declined 2% to $257 million, working loss was $488 million primarily as a result of a non-cash impairment and Adjusted OIBDA(3) declined 8% to $92 million
- GCI Shopper income decreased 4%
- GCI Enterprise income was flat year-over-year
GCI generated web money supplied by working actions of $357 million and free money stream(3) of $155 million over the trailing twelve months ended September 30, 2025
Shopper cable modem subscribers declined 3% to 153,100 and client wi-fi strains in service elevated 2% to 207,500
GCI Liberty to launch $300 million rights providing to all stockholders

“GCI delivered strong outcomes this quarter, reflecting our continued dedication to offering the best high quality connectivity companies all through Alaska,” stated GCI Liberty CEO, Ron Duncan. “As of the tip of the quarter, we’ve got exited our video enterprise, finishing our transition to a pure play broadband connectivity supplier. We proceed to see alternative in our wi-fi enterprise and we’re actively managing our price base. GCI was provisionally awarded over $140 million in BEAD grants from the Alaska Broadband Workplace and we stay steadfast in our dedication to closing the digital divide in Alaska. Moreover, we’re asserting immediately a rights providing that we count on to start earlier than year-end. We imagine this providing will present a lovely supply of liquidity to fund future alternatives on the company degree.”

Company Updates

On July 14, 2025, Liberty Broadband Company (“Liberty Broadband”) accomplished the spin-off of the GCI enterprise into a brand new entity referred to as GCI Liberty (the “spin-off”). Further info concerning the spin-off could be discovered within the prospectus filed by GCI Liberty with the Securities and Change Fee on July 2, 2025.

Please discuss with the press launch issued this morning for element concerning the proposed rights providing.

Dialogue of Results

The next desk gives the monetary outcomes of GCI Liberty for the third quarter of 2024 and 2025. In the course of the third quarter of 2025, GCI Liberty acknowledged a $525 million non-cash impairment cost associated to intangible property and goodwill. This impairment pertains to intangible property acquired throughout Liberty Broadband’s 2020 acquisition of GCI Liberty, which had been re-evaluated in the course of the spin-off in July 2025. The impairment is included in working loss offered under and excluded from Adjusted OIBDA.

	3Q24			3Q25			% Change
(quantities in tens of millions)
Consolidated Financial Metrics
Income
Shopper	$	120			$	115		(4	)%
Enterprise		142				142		—	%
Whole income	$	262			$	257		(2	)%

Working bills (unique of depreciation and amortization):
Shopper direct prices	$	(38	)		$	(32	)	16	%
Enterprise direct prices		(32	)			(31	)	3	%
Know-how expense		(66	)			(68	)	(3	)%
Whole working bills (unique of depreciation and amortization)	$	(136	)		$	(131	)	4	%

Promoting, normal and administrative expense (unique of stock-based compensation)	$	(26	)		$	(34	)	(31	)%

Inventory-based compensation	$	(4	)		$	(2	)	50	%
Depreciation and amortization	$	(55	)		$	(53	)	4	%

Working earnings (loss)(a)	$	41			$	(488	)	NM
Working earnings margin (%)(a)		15.6	%			(189.9	%)	NM

Adjusted OIBDA(b)	$	100			$	92		(8	)%
Adjusted OIBDA margin(b) (%)		38.2	%			35.8	%	(240	) bps

Capital expenditures, web of grant proceeds	$	(39	)		$	(52	)	(33	)%

____________________
(a)		In the course of the three months ended September 30, 2025, GCI Liberty incurred a $525 million non-cash impairment cost associated to intangible property and goodwill.
(b)		See reconciling schedule 1.

GCI income decreased 2% within the third quarter of 2025. Shopper income decreased 4%, pushed primarily by declines within the video enterprise and information subscriber losses, partially offset by development in wi-fi. Enterprise income was flat as development in information income from service upgrades was offset by a lower in wi-fi income from decrease roaming income. GCI has exited the video enterprise as of September 30, 2025.

Working loss elevated $529 million and Adjusted OIBDA decreased $8 million within the third quarter pushed by decrease income and elevated promoting, normal and administrative bills, partially offset by diminished working bills as a result of decrease distribution prices. Promoting, normal and administrative bills elevated primarily as a result of greater personnel bills, together with healthcare prices and bills associated to accrued worker incentive funds. Working loss was additionally impacted by an impairment cost of $525 million acknowledged in the course of the third quarter associated to intangible property and goodwill.

Yr up to now, GCI has spent $152 million, web of grant proceeds, on capital expenditures associated primarily to enhancements to the wi-fi and information networks in rural Alaska. GCI’s web capital expenditures for the complete 12 months 2025 are anticipated to be between $225 million and $250 million, with the decrease finish reflecting a delay in timing of extra investments in center and final mile connectivity. A good portion of the elevated capital expenditures in 2025 are associated to fulfilling the build-out necessities of the Federal Communications Fee’s Alaska Plan, which is anticipated to be accomplished by the tip of 2026, in addition to continued community enlargement in GCI’s most essential markets in rural Alaska, together with the Bethel and AU-Aleutians fiber initiatives.

On a trailing twelve-month foundation via the third quarter of 2025, web money supplied by working actions totaled $357 million and free money stream over the identical interval was $155 million.

GCI Shopper

(quantities in tens of millions, besides working metrics)	3Q24			3Q25			% Change
GCI Shopper
Financial Metrics
Income
Information	$	61			$	59		(3	)%
Wi-fi		47				52		11	%
Different		12				4		(67	)%
Whole income	$	120			$	115		(4	)%

Shopper direct prices		(38	)			(32	)	16	%

Shopper gross margin	$	82			$	83		1	%
Shopper gross margin (%)		68.3	%			72.2	%	390	bps

Working Metrics
Information:
Cable modem subscribers(a)		157,400				153,100		(3	)%
Wi-fi:
Traces in service(b)		204,000				207,500		2	%

____________________
(a)		A cable modem subscriber is outlined by the acquisition of cable modem service whatever the degree of service bought. Small-to-Medium Enterprise clients, promotional and suspended subscribers are included. If one entity purchases a number of cable modem service entry factors, every entry level is counted as a subscriber.
(b)		A wi-fi line in service is outlined as a wi-fi machine with a month-to-month payment for companies. Small-to-Medium Enterprise clients, promotional and suspended strains are included.

GCI Shopper income totaled $115 million within the third quarter of 2025, a 4% lower in comparison with the prior 12 months interval. The lower was pushed primarily by a decline in video and information income, offset by development in wi-fi. As of September 30, 2025, GCI has exited the video enterprise.

Information income totaled $59 million, a 3% lower, pushed primarily by subscriber losses. Shopper cable modem subscribers declined 3% year-over-year bringing whole client cable modem clients to 153,100. In the course of the third quarter of 2025, GCI misplaced 1,400 client cable modem subscribers. Moreover, subscriber development in rural areas was adversely impacted by an outage from a fiber break on a third-party community during which GCI makes use of capability. As of September 30, 2025, service has been restored on the third-party community.

Wi-fi income totaled $52 million, an 11% improve, pushed by a rise in federal wi-fi subsidies. Shopper wi-fi strains grew 2% year-over-year, bringing whole client wi-fi strains to 207,500. In the course of the third quarter of 2025, GCI added 500 client wi-fi strains.

GCI Shopper gross margin was 72.2% within the third quarter of 2025, a 390 bps improve from the identical quarter final 12 months. GCI Shopper direct prices decreased 16%, pushed by decrease video programming prices and non permanent price financial savings from a fiber break on a third-party community during which GCI makes use of capability that has since been absolutely restored.

GCI Enterprise

(quantities in tens of millions, besides working metrics)	3Q24			3Q25			% Change
GCI Enterprise
Financial Metrics
Income
Information	$	123			$	124		1	%
Wi-fi		11				10		(9	)%
Different		8				8		—	%
Whole income	$	142			$	142		—	%

Enterprise direct prices		(32	)			(31	)	3	%

Enterprise gross margin	$	110			$	111		1	%
Enterprise gross margin (%)		77.5	%			78.2	%	70	bps

GCI Enterprise income totaled $142 million within the third quarter of 2025, flat with the prior 12 months interval. The rise in enterprise information income from service upgrades with present healthcare and schooling clients was offset by a lower in wi-fi income as a result of decrease roaming income.

GCI Enterprise gross margin was 78.2% within the third quarter of 2025, a 70 bps improve from the identical quarter final 12 months. GCI Enterprise direct prices decreased 3% within the third quarter of 2025, pushed primarily by non permanent price financial savings from a fiber break on a third-party community during which GCI makes use of capability that has since been absolutely restored.

FOOTNOTES

1)		Until in any other case famous, highlights examine monetary info for the three months ended September 30, 2025 to the identical interval in 2024. GCI Liberty will focus on these highlights and different issues on GCI Liberty’s earnings convention name that can start at 11:15 a.m. (E.T.) on November 5, 2025. For info concerning how one can entry the decision, please see “Essential Discover” later on this doc.
2)		GCI Liberty’s principal working asset is GCI Holdings, which gives information, cellular, voice and managed companies to client, enterprise, authorities and provider clients all through Alaska.
3)		For a definition of Adjusted OIBDA, Adjusted OIBDA margin and free money stream and relevant non-GAAP reconciliations, see the accompanying schedule 1.

NOTES

Money and Debt

The next presentation is supplied to individually determine money, money equivalents, restricted money and debt of GCI Liberty as of June 30, 2025 and September 30, 2025.

(quantities in tens of millions)	6/30/2025			9/30/2025

Money, Money Equivalents and Restricted Money:	$	117			$	137

Debt:
Senior Notes(a)	$	600			$	600
Senior Credit score Facility		369				368
Tower Obligations and Different(b)		78				77
Whole Debt	$	1,047			$	1,045
GCI Leverage(c)		2.3x				2.3x

Unamortized premium and deferred mortgage prices		14				13
Tower obligations and finance leases (excluded from GAAP Debt)		(74	)			(73	)
Whole Debt (GAAP)	$	987			$	985

Different Financial Obligations:
Most popular Inventory(d)	$	—			$	10

____________________
(a)		Principal quantity of Senior Notes.
(b)		Consists of the Wells Fargo Observe Payable and present and long-term obligations beneath tower obligations and finance leases.
(c)		As outlined in GCI’s credit score settlement.
(d)		$10 million of non-voting most popular inventory of GCI Liberty was issued to Liberty Broadband within the third quarter of 2025 after which offered by Liberty Broadband to 3rd social gathering consumers. The popular inventory has a 12% dividend price and $1,000 per share liquidation value plus accrued and unpaid dividends. The obligatory redemption date is July 14, 2032.

GCI Liberty money, money equivalents and restricted money elevated $20 million within the third quarter of 2025 primarily as a result of money from operations, partially offset by capital expenditures, web of grant proceeds.

GCI Liberty debt was flat within the third quarter of 2025.

As of September 30, 2025, GCI’s credit score facility has undrawn capability of $377 million (web of letters of credit score), and GCI’s leverage as outlined in its credit score settlement is 2.3x.

Essential Discover: GCI Liberty (Nasdaq: GLIBA, GLIBK) will focus on GCI Liberty’s earnings launch on a convention name which can start at 11:15 a.m. (E.T.) on November 5, 2025. The decision could be accessed by dialing (877) 407-3944 or (412) 902-0038, passcode 13749439, at the very least 10 minutes previous to the beginning time. The decision will even be broadcast stay throughout the Web and archived on our web site. To entry the webcast, go to https://www.gciliberty.com/investors/news-events/ir-calendar. Hyperlinks to this press launch and replays of the decision will even be accessible on GCI Liberty’s web site.

This press launch contains sure forward-looking statements beneath the Non-public Securities Litigation Reform Act of 1995, together with statements about enterprise methods, market potential, the proposed rights providing, future monetary prospects and capital expenditures. These forward-looking statements contain many dangers and uncertainties that would trigger precise outcomes to vary materially from these expressed or implied by such statements, together with, with out limitation, aggressive points, buyer demand, financial circumstances (together with inflationary pressures), regulatory and legislative issues affecting our companies, our capability to acquire or keep roaming companies and essential communications gear, the success of the proposed rights providing and our capability to acquire extra financing on phrases acceptable to GCI Liberty. These forward-looking statements converse solely as of the date of this press launch, and GCI Liberty expressly disclaims any obligation or endeavor to disseminate any updates or revisions to any forward-looking assertion contained herein to mirror any change in GCI Liberty’s expectations with regard thereto or any change in occasions, circumstances or circumstances on which any such assertion relies. Please discuss with the publicly filed paperwork of GCI Liberty, together with the prospectus filed on July 2, 2025 with the Securities and Change Fee, as a part of GCI Liberty’s Registration Assertion on Kind S-1 (File No. 333-286272), and the newest Kind 10-Q, for extra details about GCI Liberty and in regards to the dangers and uncertainties associated to GCI Liberty which can have an effect on the statements made on this press launch.

NON-GAAP FINANCIAL MEASURES

SCHEDULE 1

To supply buyers with extra info concerning our monetary outcomes, this press launch features a presentation of Adjusted OIBDA and trailing twelve months of free money stream, that are non-GAAP monetary measures, for GCI Liberty along with reconciliations to working earnings and web money supplied by working actions, respectively, as decided beneath GAAP, in addition to Adjusted OIBDA margin. GCI Liberty defines Adjusted OIBDA as working earnings (loss) plus depreciation and amortization, stock-based compensation, individually reported litigation settlements, restructuring and impairment fees. GCI Liberty defines Adjusted OIBDA margin as Adjusted OIBDA divided by income. GCI Liberty defines free money stream as web money supplied by working actions much less capital expenditures web of grant proceeds obtained for capital expenditures.

GCI Liberty believes Adjusted OIBDA and free money stream are essential indicators of the operational energy and efficiency of its enterprise by figuring out these gadgets that aren’t instantly a mirrored image of enterprise efficiency or indicative of ongoing enterprise tendencies. As well as, these measures enable administration to evaluate GCI Liberty’s efficiency, its capability to service its debt, fund operations and make extra investments with internally generated funds, carry out analytical comparisons, and determine methods to enhance efficiency. GCI Liberty believes presenting free money stream on a trailing twelve month foundation extra precisely demonstrates the corporate’s liquidity profile by minimizing seasonal fluctuations, notably round timing of Common Service Fund money receipts. As a result of Adjusted OIBDA and free money stream are used as measures of working efficiency and liquidity, respectively, GCI Liberty views working earnings and web money supplied by working actions, respectively, as essentially the most instantly comparable GAAP measures. Adjusted OIBDA and free money stream usually are not meant to interchange or supersede working earnings, web money supplied by working actions or some other GAAP measure, however somewhat to complement such GAAP measures in an effort to current buyers with the identical info that GCI Liberty’s administration considers in assessing the outcomes of operations and efficiency of its property. Please see the desk under for relevant reconciliations.

The next desk gives a reconciliation of GCI Liberty’s working earnings to Adjusted OIBDA for the three months ended September 30, 2024 and September 30, 2025 and web money supplied by working actions to free money stream for the twelve months ended September 30, 2025.

(quantities in tens of millions)	3Q24		3Q25
Working Earnings	$	41		$	(488	)
Depreciation and amortization		55			53
Inventory-based compensation		4			2
Impairment of goodwill and intangible property		—			525
Adjusted OIBDA	$	100		$	92

	Twelve months
	ended
(quantities in tens of millions)	9/30/2025
Internet money supplied by (utilized in) working actions	$	357
Capital expenditures		(238	)
Grant proceeds		36
Free money stream	$	155

GCI LIBERTY, INC.
CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION
(unaudited)

	September 30,		December 31,
	2025		2024
	quantities in tens of millions, besides share quantities
Belongings
Present property:
Money and money equivalents	$	124		74
Commerce and different receivables, web of allowance for credit score losses of $4 and $4, respectively		136		184
Due from Liberty Broadband		98		5
Pay as you go and different present property		47		56
Whole present property		405		319
Property and gear, web		1,209		1,150
Intangible property not topic to amortization
Goodwill		638		746
Cable certificates		149		550
Different		25		41
		812		1,337
Intangible property topic to amortization, web		380		411
Different property, web		205		165
Whole property		3,011		3,382

Liabilities and Fairness
Present liabilities:
Accounts payable and accrued liabilities		125		110
Deferred income		23		21
Present portion of debt		4		3
State earnings taxes payable		91		—
Different present liabilities		59		58
Whole present liabilities		302		192
Lengthy-term debt, web		981		1,066
Obligations beneath tower obligations and finance leases		69		72
Lengthy-term deferred income		130		113
Deferred earnings tax liabilities		—		359
Different liabilities		139		151
Whole liabilities		1,621		1,953

Redeemable noncontrolling curiosity in fairness of subsidiary		18		15

Sequence A GCI Group widespread inventory, $.01 par worth. Licensed 100,000,000 shares; issued and excellent 3,650,938 and nil at September 30, 2025 and December 31, 2024, respectively		—		—
Sequence B GCI Group widespread inventory, $.01 par worth. Licensed 3,750,000 shares; issued and excellent 400,806 and nil at September 30, 2025 and December 31, 2024, respectively		—		—
Sequence C GCI Group widespread inventory, $.01 par worth. Licensed 100,000,000 shares; issued and excellent 24,646,095 and nil at September 30, 2025 at December 31, 2024, respectively		—		—
Former member’s funding		—		1,777
Further paid-in capital		2,060		—
Retained earnings (deficit)		(688	)	(363	)
Whole fairness		1,372		1,414
Whole liabilities and fairness	$	3,011		3,382

GCI LIBERTY, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS INFORMATION
(unaudited)

	Three months ended
	September 30,
	2025		2024
	quantities in tens of millions,
	besides per share quantities
Income	$	257		262
Working prices and bills:
Working expense (unique of depreciation and amortization)		131		136
Promoting, normal and administrative expense (together with stock-based compensation)		36		30
Depreciation and amortization		53		55
Impairment of goodwill and intangible property		525		—
		745		221
Working earnings (loss)		(488	)	41
Different earnings (expense):
Curiosity expense (together with amortization of deferred mortgage charges)		(12	)	(13	)
Different, web		3		1
		(9	)	(12	)
Earnings (loss) earlier than earnings taxes		(497	)	29
Earnings tax profit (expense)		110		(8	)
Internet earnings (loss)	$	(387	)	21
Fundamental web earnings (loss) attributable to Sequence A, Sequence B and Sequence C GCI Group shareholders per widespread share	$	(13.34	)	0.72
Diluted web earnings (loss) attributable to Sequence A, Sequence B and Sequence C GCI Group shareholders per widespread share	$	(13.34	)	0.72

GCI LIBERTY, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS INFORMATION
(unaudited)

	9 months ended
	September 30,
	2025		2024
	quantities in tens of millions
Money flows from working actions:
Internet earnings (loss)	$	(325	)	54
Changes to reconcile web earnings (loss) to web money from working actions:
Depreciation and amortization		158		157
Inventory-based compensation		9		11
Impairment of goodwill and intangible property		525		—
Deferred earnings tax expense (profit)		(399	)	6
Non-cash adjustments in taxes payable		206		—
Different, web		(3	)	(4	)
Change in working property and liabilities:
Present and different property		74		27
Payables and different liabilities		57		(28	)
Internet money supplied by (utilized in) working actions		302		223
Money flows from investing actions:
Capital expenditures		(174	)	(183	)
Grant proceeds obtained for capital expenditures		22		40
Different investing actions, web		6		—
Internet money supplied by (utilized in) investing actions		(146	)	(143	)
Money flows from financing actions:
Borrowings of debt		691		130
Repayments of debt, tower obligations and finance leases		(778	)	(104	)
Contributions from (distributions to) former member		—		(150	)
Different financing actions, web		(7	)	—
Internet money supplied by (utilized in) financing actions		(94	)	(124	)
Internet improve (lower) in money, money equivalents and restricted money		62		(44	)
Money, money equivalents and restricted money, starting of interval		75		97
Money, money equivalents and restricted money, finish of interval	$	137		53