Executive Summary

Q1 2025 delivered steady execution amid subsidy wind-down: revenue $179.3M (-4% YoY), operating income $2.7M, GAAP diluted EPS -$0.69, and Adjusted EBITDA $44.3M (+2% YoY), with 55% YoY growth in operating cash flow to $35.9M .
Versus S&P Global consensus, revenue and EBITDA were modest beats while EPS missed: Revenue $179.294M vs $178.674M*, EBITDA $42.399M vs $41.679M*, EPS -$0.329 vs -$0.10*; management reaffirmed full‑year 2025 outlook (revenue ex‑construction ~flat YoY; Adjusted EBITDA ~flat; net CapEx $90–$100M; net debt ratio ~flat) .
International segment strength (Adjusted EBITDA +11% YoY) offset planned domestic revenue pressure as U.S. transitions from legacy services; >50% of ~$370M grant‑funded builds expected to complete in 2025, with monetization weighted to 2026–2027 .
Capital discipline remains a focus: net CapEx $20.8M (net of $22.4M reimbursements), Net Debt Ratio 2.52x, and quarterly dividend of $0.24 paid April 7, 2025 .

What Went Well and What Went Wrong

What Went Well
- International outperformance and margin expansion: International revenue rose to $94.5M and Adjusted EBITDA grew to $32.4M (+11% YoY) on demand for high‑speed services and operating efficiency .
- Cost control and cash generation: SG&A decreased YoY; cash from operations rose 55% to $35.9M, supporting a modest Adjusted EBITDA increase despite lower revenue .
- Clear strategic focus and reaffirmed outlook: Management reiterated FY25 revenue (ex‑construction), Adjusted EBITDA, CapEx, and net leverage guidance; emphasized monetizing a three‑year investment cycle and disciplined capital allocation .
- Management quote: “While revenues declined year‑over‑year due to the wind‑down of subsidy programs, we delivered a modest year‑over‑year increase in Adjusted EBITDA supported by disciplined cost management” — Brad Martin, CEO .
What Went Wrong
- Domestic revenue pressure: U.S. Telecom revenue declined due to the end of ECF/ACP, driving consolidated revenue down 4% YoY and compressing operating income to $2.7M .
- EPS weakness and restructuring charges: GAAP diluted EPS was -$0.69; management also noted higher transaction, restructuring, and asset disposition charges, with additional restructuring expected in Q2 2025 .
- BEAD timing risk: Management highlighted BEAD program delays at the state level; timing could shift monetization from 1H26 to later in 2026/2027, an area of investor concern .

Financial Results

Headline vs S&P Global Consensus – Q1 2025

Metric	Actual (S&P)	Consensus (S&P)	Surprise
Revenue ($)	$179,294,000*	$178,673,500*	+$620,500*
EBITDA ($)	$42,399,000*	$41,679,000*	+$720,000*
Primary EPS ($)	-$0.329*	-$0.10*	-$0.229*

Note: Values marked with * are retrieved from S&P Global and may differ from GAAP figures in company materials due to methodology (e.g., “Primary EPS”). Values retrieved from S&P Global.

Quarterly trend (oldest → newest)

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($M)	$178.451	$180.548	$179.294
Operating Income (Loss) ($M)	$(38.358)	$8.673	$2.667
Net Income (Loss) Attributable to ATN ($M)	$(32.691)	$3.572	$(8.928)
Diluted EPS ($)	$(2.26)	$0.14	$(0.69)
EBITDA ($M)	$0.932	$41.804	$38.419
Adjusted EBITDA ($M)	$45.670	$46.226	$44.339
Capital Expenditures (net) ($M)	$23.841	$24.703	$20.831

YoY comparison (Q1 2025 vs Q1 2024)

Metric	Q1 2024	Q1 2025	YoY
Revenue ($M)	$186.794	$179.294	-4%
Operating Income ($M)	$4.574	$2.667	Declined
Diluted EPS ($)	$(0.50)	$(0.69)	Weaker
Adjusted EBITDA ($M)	$43.518	$44.339	+2%

Segment breakdown – Q1 2025 vs Q1 2024

Segment	Revenue Q1’24 ($M)	Revenue Q1’25 ($M)	Adj. EBITDA Q1’24 ($M)	Adj. EBITDA Q1’25 ($M)
International Telecom	$93.059	$94.496	$29.273	$32.390
US Telecom	$93.735	$84.798	$20.703	$17.515
Corporate & Other	$0.000	$0.000	$(6.458)	$(5.566)
Total	$186.794	$179.294	$43.518	$44.339

KPIs (oldest → newest)

KPI	Q1 2024	Q4 2024	Q1 2025
HSD Broadband Homes Passed	386,300	426,100	427,300
HSD Broadband Customers	138,900	140,800	141,300
Total Broadband Customers	212,500	203,200	199,800
Fiber Route Miles	11,692	11,921	11,944
Intl. Mobile Subscribers (Total)	403,700	388,800	391,900
Blended Churn (%)	3.34%	3.51%	3.32%

Guidance Changes

Metric	Period	Previous Guidance (as of Q4’24)	Current Guidance (Q1’25)	Change
Revenue (ex‑construction)	FY 2025	In line with 2024 ($725M)	In line with 2024 ($725M)	Maintained
Adjusted EBITDA	FY 2025	Essentially flat with 2024 ($184.1M)	Essentially flat with 2024 ($184M)	Maintained
Net Capital Expenditures	FY 2025	$90–$100M	$90–$100M	Maintained
Net Debt Ratio	Exit 2025	~Flat vs 2.54x YE’24	~Flat with slight potential improvement vs 2.54x	Maintained
Dividend	Ongoing	$0.24 per quarter (Q4 paid Jan 5, 2025)	$0.24 declared Mar 20; paid Apr 7, 2025	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3’24, Q4’24)	Current Period (Q1’25)	Trend
Government-funded builds / monetization	Lowered FY24 outlook; noted strategic actions; non-cash goodwill impairment; highlighted cash generation and transition to margin/cash focus	~$370M pipeline; >50% of projects expected complete in 2025; monetization weighted to 2026–2027	Execution advancing; revenue benefit later
BEAD program status	N/A in Q3 PR; FY25 focus on internally funded capex 10–15% of revenue	State-level BEAD delays; awaiting Commerce memo; bids submitted in Southwest; timing risk to 2026/2027 monetization	Delays; planning continues
Domestic transition (legacy → fiber/carrier)	US revenue down; cost actions; repositioning to carrier/business solutions	US revenue down as expected; improved USAC season; leadership changes in U.S. markets; pipeline building	Transition ongoing; green shoots
International momentum	EBITDA growth and postpaid gains; competitive consumer mobility	Adj. EBITDA +11% YoY; steady high-speed demand; ARPU uplift; inbound roaming benefits	Strength sustained
Tariffs/supply chain	Not highlighted	Monitoring tariffs; many materials sourced in U.S./Mexico; 2025 manageable within outlook	Watchful but contained
Capital allocation / leverage	Net Debt Ratio 2.39x (Q3) and 2.54x (YE’24); capex discipline	Focus on delevering via margin improvement; more optionality into 2026	Discipline maintained

Management Commentary

Strategy and execution: “We remain focused on monetizing the investments made during our recent three-year strategic capital spending cycle… supported by ongoing cost management and efficiency initiatives” — Brad Martin, CEO .
Segment positioning: “Internationally, we maintained positive momentum… Domestically, we are executing on our transition strategy… to create a more sustainable revenue base” — Brad Martin .
Financial discipline: “We are reaffirming our annual guidance… net capital expenditures between $90 million and $100 million… Net debt ratio to remain flat… with a slight potential improvement” — Carlos Doglioli, CFO .
Cash generation focus: “We also improved free cash flow… reflecting both focused capital management and the contribution of our network enhancements and expansion initiatives” — Brad Martin .

Q&A Highlights

Tariffs/supply chain exposure: Materials for fiber builds are largely U.S.-sourced; significant vendor manufacturing in Mexico under USMCA; 2025 impacts manageable within guidance .
FX sensitivity: Most international markets are USD‑pegged; limited FX impact observed (Guyana cited) .
Government funding and timing: ~$370M in awarded projects; >50% expected complete in 2025; some revenue may start mid/late Q3’25, but monetization largely 2026–2027 (not 1:1 with grant size; significant Alaska subsea projects) .
BEAD opportunities: Bids submitted in U.S. Southwest; states delaying awards; watching May 15 Commerce memo for clarity; strategy to build onto existing middle‑mile footprint and leverage lifetime exchange/match rules .
Balance sheet and capital allocation: Focus on margin expansion and deleveraging to increase capital allocation optionality into 2026 .

Estimates Context

Q1 2025 vs S&P Global consensus: Revenue beat ($179.294M vs $178.674M*), EBITDA beat ($42.399M vs $41.679M*), EPS missed (-$0.329 vs -$0.10*). Management cited revenue pressure from ECF/ACP wind‑down, but maintained FY25 guidance on cost discipline and international strength .
Looking ahead: Management expects 2H to contribute a larger share of FY25 results and flagged additional Q2 restructuring expenses; consensus for Q2 2025 is revenue $184.668M*, EBITDA $43.063M*, EPS -$0.07*, implying sequential improvement, but Q2 EPS could be pressured by reorg costs .
Note: Values marked with * are retrieved from S&P Global and may differ from GAAP metrics due to methodology. Values retrieved from S&P Global.

Next Quarter Consensus (S&P Global)

Metric	Q2 2025 Consensus
Revenue ($)	$184,668,000*
EBITDA ($)	$43,863,000*
Primary EPS ($)	-$0.07*

Values retrieved from S&P Global.

Key Takeaways for Investors

Reaffirmed FY25 guide amid planned domestic transition is supportive; modest revenue/EBITDA beats and strong cash from ops de‑risk near‑term execution .
International strength (ARPU/roaming/postpaid growth) continues to offset domestic subsidy roll‑off; watch for sustained International EBITDA momentum .
U.S. monetization is back‑half and 2026/2027 weighted; near‑term catalysts include initial revenue from projects going live by late Q3’25 and any BEAD award clarity .
Restructuring will persist into Q2, potentially weighing reported EPS despite stable Adjusted EBITDA trajectory .
Balance sheet stable (Net Debt Ratio 2.52x); dividend maintained; continued capex discipline with heavy use of reimbursable programs supports FCF .
Estimate revisions: Street may lift revenue/EBITDA modestly while trimming near‑term EPS to reflect restructuring charges; 2H weighted cadence remains the narrative anchor .

Appendix: Additional Company Disclosures and Data Points

Q1 2025 dividends: $0.24 per share paid April 7, 2025 .
Cash/debt at 3/31/25: cash and restricted cash $97.3M; total debt $562.4M; Net Debt Ratio 2.52x .
Segment details (Q1 2025): International operating income $14.8M vs U.S. operating loss $(2.4)M; Corporate & Other $(9.7)M operating loss .

All financial and qualitative claims are sourced from the company’s Q1 2025 press release and 8‑K, the Q1 2025 earnings call transcript, and prior quarter materials as cited above. Where marked with an asterisk (*), values are retrieved from S&P Global.

ATN International, Inc. (ATNI)·Q1 2025 Earnings Summary