We use cookies to improve your experience, analyze site usage, and show relevant ads. Go to our Privacy Policy for details.
The call presented a mix of strategic, long-term positives (acquisition of Quintillion, investment in Liberty Latin America, brand evolution, wireless growth and improved consumer margins) alongside notable near-term financial and operational pressures (4% revenue decline, 18% adjusted OIBDA decline, 13% lower free cash flow, data subscriber losses, and elevated CapEx and one-time costs). Management emphasized that recent investments and the Quintillion acquisition should be accretive to free cash flow and strengthen network resilience, but near-term profitability and leverage are under pressure due to higher capital spending and transaction-related funding.
The company guided that 2026 will be a peak CapEx year — approximately $290 million (including ~$20 million carried over from 2025) — with CapEx expected to step down over time back toward a historical range of 15–20% of revenue; the planned Quintillion acquisition (consideration $310 million cash, reimbursement of up to $50 million for pre‑closing CapEx and potential earnouts, plus a $160 million unsecured loan GCI will provide) is expected to be accretive to free cash flow in the first year and to drive “substantial” cash generation thereafter. On the balance sheet and leverage front, consolidated cash, cash equivalents and restricted cash were $448 million (including about $130.1 million at GCI), total principal debt was roughly $1.0 billion, consolidated net leverage was ~1.1x (pro forma for the LLA and Quintillion transactions ~2.3x, and GCI’s leverage would be ~2.7x pro forma for the $160 million loan), and GCI’s credit facility had ~$377 million of undrawn capacity net of letters of credit. Operational and near‑term performance was expected to be stable as broadband losses decelerate, with Q1 puts of 200,000 consumer wireless lines (up 2% YoY), 207,700 total wireless lines (including 7,700 business), 150,500 data subscribers (down 3% YoY), Q1 revenue of $256 million (down 4% YoY), adjusted OIBDA of $93 million (down 18% YoY), Q1 CapEx net of grant proceeds of $55 million, and trailing‑12‑month free cash flow of $99 million (down ~13% YoY).
Definitive agreement to acquire Quintillion for $310 million in cash (subject to adjustments), reimbursement up to $50 million for pre-closing CapEx and potential earn-out payments; expected to be accretive to free cash flow in the first year after closing and to enhance statewide fiber footprint, resilience and routing diversity.
Invested $107 million to acquire Searchlight Capital Partners' equity interest in Liberty Latin America; management is pursuing additional share purchases and views LLA as an undervalued, strategic, cash-flow inflection opportunity (preferred issuance benefits noted).
Company intends to change parent name from GCI Liberty to Liberty Capital Corporation (no ticker change) to reflect expanded investment focus beyond Alaska while continuing Alaska operations under the GCI brand.
Consumer wireless lines grew ~2% year-over-year to 200,000; total wireless lines ended the quarter at 207,700 (including 7,700 business lines). Added ~1,000 consumer wireless lines in the quarter (including ~500 postpaid from a 'free for a year' promotion). More than 40% of broadband customers have one or more wireless lines and >60% of postpaid wireless lines are sold as part of a package.
Consumer gross margin increased to 72.2% for the quarter, driven by lower consumer direct costs, primarily from decreased video programming costs following the exit from the video business.
Consolidated cash, cash equivalents and restricted cash of $448 million at quarter end (including cash at GCI). Total principal debt approximately $1.0 billion. GCI credit facility had $377 million of undrawn capacity (net of letters of credit).
Q1 CapEx net of grant proceeds was $55 million. Management expects 2026 CapEx of ~ $290 million (including ~$20 million carryover) and views 2026 as the peak year, with CapEx expected to step down thereafter toward historical range of 15%–20% of revenue.
Welcome to GCI Liberty twenty twenty six First Quarter Earnings Call. Afterwards, we will conduct a question and answer session. At that time, if you have a As a reminder, this conference will be recorded, May 7. I would now like to turn the call over to Hooper Stevens, Senior Vice President, Investor Relations. Please go ahead.
Thank you, everyone, for joining us today for GCI Liberty's first quarter twenty twenty six earnings call. As you know, this call may include certain forward looking statements within the meaning of Private Securities Litigation Reform Act of 1995. Actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in the most recent Forms 10 ks and 10 Q filed by GCI Liberty Liberty Broadband with the SEC. These forward looking statements speak only as of the date of this call, and GCI Liberty and Liberty Broadband expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward looking statement contained herein to reflect any change in GCI Liberty or Liberty Broadband's expectations with regard to any change in events, conditions or circumstances on which any such statement is based. On today's call, we will discuss certain non GAAP financial measures for GCI Liberty, including adjusted OIBDA, adjusted OIBDA margin and free cash flow. Information regarding the required definitions along with the comparable GAAP metrics and reconciliations for GCI Liberty can be found in the earnings press release issued today, which is available on GCI Liberty's IR website. S...