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ATN International, Inc. (ATNI)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 delivered steady execution: revenue rose 3% year over year to $183.2M, Adjusted EBITDA increased 9% to $49.9M, and diluted EPS turned positive at $0.18; management refined full-year Adjusted EBITDA to “flat to slightly above” FY24 while reaffirming revenue, CapEx, and leverage targets .
  • Results modestly beat Wall Street consensus: revenue of $183.2M vs $182.4M estimate* and EPS of $0.18 vs -$0.06 estimate*, driven by fixed and carrier services growth and disciplined cost management .
  • Segment mix improved: US Telecom revenue rose 4.6% YoY and Adjusted EBITDA grew 19.6% YoY; International Telecom sustained EBITDA growth amid mobility stabilization .
  • Balance sheet strengthened: cash and restricted cash reached $119.6M; Net Debt Ratio improved to 2.47x from 2.58x in Q2, supporting the $0.275 quarterly dividend .
  • Stock reaction catalysts: a clear EPS beat vs consensus*, sequential leverage improvement, and a modestly more constructive Adjusted EBITDA outlook could support sentiment near-term; focus remains on carrier-managed services and fiber-fed deployments in the US and operational efficiency internationally .

What Went Well and What Went Wrong

What Went Well

  • Adjusted EBITDA rose to $49.9M (+9% YoY), reflecting cost containment and mix toward fixed and carrier services; operating income swung to $9.8M from a prior-year loss (impairment drove last year’s loss) .
  • US Telecom momentum: revenue +4.6% YoY; Adjusted EBITDA +19.6% YoY, with new site activations in carrier-managed services and fiber-fed deployments driving improved margins .
  • Management tone constructive: “We’re doing what we said we would do - methodically strengthening our operational foundation, improving our cost structure and margins, and positioning the business for sustainable growth as we move toward 2026.” – CEO Brad Martin .

What Went Wrong

  • Mobility revenue declined YoY, partially offset by fixed and carrier services; consumer broadband subscribers continued to trend lower vs late-2024 levels .
  • Ongoing restructuring and reorganization costs persisted through the year (Q2: $4.9M; minor activity expected in Q4 < $1M), constraining GAAP profitability .
  • US Telecom still transitioning away from legacy revenue streams post-subsidy program wind-down; Q2 revenue was down 1% YoY before rebounding in Q3, underscoring uneven trajectory .

Financial Results

Consolidated Performance (YoY and sequential context)

MetricQ3 2024 (oldest)Q1 2025Q2 2025Q3 2025 (newest)
Revenue ($USD Millions)$178.5 $179.3 $181.3 $183.2
Operating Income ($USD Millions)$(38.4) $2.7 $0.2 $9.8
Net Income ($USD Millions)$(32.7) $(8.9) $(7.0) $4.3
Diluted EPS ($)$(2.26) $(0.69) $(0.56) $0.18
Adjusted EBITDA ($USD Millions)$45.7 $44.3 $45.8 $49.9

Actuals vs Wall Street Consensus (Q3 2025)

MetricConsensus*Actual
Revenue ($USD Millions)$182.4*$183.2
Primary EPS ($)$(0.06)*$0.18

Values marked with * were retrieved from S&P Global.

Segment Revenue and Profit (Q3 2025 vs Q3 2024)

SegmentQ3 2024 Revenue ($USD Millions)Q3 2025 Revenue ($USD Millions)Q3 2024 Adjusted EBITDA ($USD Millions)Q3 2025 Adjusted EBITDA ($USD Millions)
International Telecom$94.3 $95.1 $32.2 $33.3
US Telecom$84.2 $88.0 $17.7 $21.2
Corporate and Other$—$—$(4.3) $(4.5)
Total ATN$178.5 $183.2 $45.7 $49.9

Product/Service Mix (Q3 2025 vs Q3 2024)

CategoryQ3 2024 ($USD Millions)Q3 2025 ($USD Millions)
Mobility$27.5 $26.7
Fixed$112.8 $114.5
Carrier Services$32.7 $34.1
Construction$0.2 $1.1
Other (Managed services)$3.8 $4.3

KPIs and Operating Metrics

KPIQ3 2024Q2 2025Q3 2025
High-Speed Data Broadband Homes Passed399,500 427,500 432,500
High-Speed Data Broadband Customers141,100 141,900 142,500
Broadband Customers (Total)206,400 200,300 197,200
Fiber Route Miles11,901 11,957 12,062
International Mobile Subscribers (Total)395,100 392,500 393,400
Blended Churn3.47% 3.09% 3.19%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue (ex-construction)FY 2025In line with FY24 $725M In line with FY24 $725M Maintained
Adjusted EBITDAFY 2025Essentially flat with FY24 $184M Flat to slightly above FY24 $184M Raised (slightly)
Capital Expenditures (net of reimbursements)FY 2025$90–$100M $90–$100M Maintained
Net Debt RatioExit FY 2025~2.54x, slight potential improvement ~2.54x, slight potential improvement Maintained
Quarterly DividendOngoing$0.275 declared in Q3 $0.275 paid Oct 7, 2025 Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 2025, Q2 2025)Current Period (Q3 2025)Trend
US subsidy wind-down and legacy transitionsQ1: Revenue impact from ECF/ACP wind-down; transition to carrier/business solutions . Q2: Continued impact; sequential improvements emerging .Mobility decline offset by fixed/carrier; US revenue +4.6% YoY .Improving mix; transition progressing
Cost management and Adjusted EBITDAQ1: Adj. EBITDA +2% YoY . Q2: Adj. EBITDA -6% YoY .Adj. EBITDA +9% YoY; refined FY25 guide up .Strengthening
Carrier-managed services and fiber-fed deploymentsQ2: Positive traction; pipeline conversion improving .New site activations; momentum in fiber-fed deployments .Building
International mobility stabilizationQ1: Positive momentum . Q2: Network quality and efficiency gains .Stabilization in mobility trends and improving operational metrics .Stabilizing
Regulatory/funding (BEAD, shutdown)—Minimal near-term shutdown impact; BEAD timeline remains on track for January .Watchful, but steady
Leverage and cash flowQ1: Cash flow improved; Net Debt Ratio 2.52x . Q2: 2.58x .2.47x; cash and restricted cash $119.6M .Improving

Management Commentary

  • Strategic focus: “We’ve been building positive momentum throughout the year, reflected in our year-over-year revenue and Adjusted EBITDA growth… improving our cost structure and margins, and positioning the business for sustainable growth as we move toward 2026.” – Brad Martin, CEO .
  • Segment dynamics: US: “new site activations from our carrier-managed services efforts and momentum in our fiber-fed deployments.” International: “network investments are driving growth in high-speed data and mobile data subscribers” .
  • Outlook: “Revenue, excluding construction revenue, is expected to be in line with 2024’s result of $725 million… Adjusted EBITDA is expected to be flat to slightly above 2024’s result of $184 million… Net Debt Ratio ~2.54x with potential slight improvement” – Carlos Doglioli, CFO .

Q&A Highlights

  • Government shutdown impact: No impact on payments/subsidies through Q4; permitting on BLM lands could be challenged if shutdown persists; BEAD reviews under NTIA remain on track for January decisions .
  • Alaska execution: New management team and partnerships with LEO operators are improving pipeline conversion, especially in rural healthcare opportunities .
  • Capital priorities and leverage: Operating cash flow trending well; with normalized CapEx, management expects leverage to continue trending down while benefiting from grants/reimbursables .

Estimates Context

  • Q3 2025 beat vs consensus*: revenue $183.2M vs $182.4M*, EPS $0.18 vs -$0.06*. The EPS positive surprise reflects cost reductions (D&A and transaction-related charges) and operating efficiency gains; revenue benefited from fixed and carrier services growth offsetting mobility decline .
  • Forward estimates may adjust upward for FY25 Adjusted EBITDA given management’s refinement to “flat to slightly above” FY24; revenue guide unchanged implies consensus revenue likely remains anchored near $725M ex-construction .

Values marked with * were retrieved from S&P Global.

Key Takeaways for Investors

  • Near-term: EPS and revenue beats vs consensus*, sequential leverage improvement (2.47x), and refined Adjusted EBITDA outlook are constructive for the stock’s setup .
  • US segment: Carrier-managed services and fiber-fed deployments are gaining traction; watch for continued revenue growth and margin expansion amid the legacy/ACP/ECF transition .
  • International: Mobility stabilization and operational efficiency should sustain EBITDA growth; monitor post-paid subscriber trends and ARPU .
  • Cash and CapEx discipline: Elevated cash, reimbursable programs, and normalized CapEx ($90–$100M guide) support deleveraging and dividend continuity ($0.275 quarterly) .
  • Risks: Mobility softness, restructuring costs, and potential permitting delays if government shutdown persists; continued focus on cost control and execution needed .
  • Catalysts: BEAD outcomes (January), ongoing site activations, and Q4 execution vs raised Adjusted EBITDA expectations could drive estimate revisions and sentiment .