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Frontier Communications Parent, Inc. (FYBR)·Q1 2025 Earnings Summary

Executive Summary

  • Frontier delivered record first-quarter revenue and Adjusted EBITDA growth, with total revenue of $1.511B (+3.4% YoY) and Adjusted EBITDA of $583M (+6.6% YoY), driven by 24% YoY fiber broadband revenue growth and higher ARPU .
  • Consensus context: Q1 revenue modestly beat S&P Global consensus ($1.511B vs. $1.507B), normalized EPS beat (−$0.096 vs. −$0.209), while S&P “EBITDA” missed (actual $562M vs. $587M) even as company-reported Adjusted EBITDA printed $583M; the lack of an earnings call and formal guidance limited incremental narrative catalysts * .
  • Fiber network expanded to 8.1M total passings (+321k QoQ), with consumer fiber net adds of 103k and ARPU up 4.7% YoY to $68.21, while copper declines continued to partly offset fiber growth .
  • Liquidity stood at ~$2.6B with net leverage ~4.9x; management reiterated no conference call or outlook due to the pending Verizon acquisition, expected to close by Q1 2026, which remains the dominant stock narrative near term .

What Went Well and What Went Wrong

What Went Well

  • Broad-based fiber strength: 19% YoY fiber broadband customer growth and 24% YoY fiber broadband revenue growth drove record first-quarter revenue and Adjusted EBITDA growth; “We had the strongest start to a year yet, led by continued strength in our fiber business,” said CEO Nick Jeffery .
  • Scale milestone: Fiber build crossed 8M passings (8.1M total), reflecting ~2.5x footprint growth since 2020 and continued acceleration of passings (+321k QoQ) .
  • Consumer fiber ARPU and churn improved: ARPU rose to $68.21 (+4.7% YoY), and churn fell to 1.20% vs. 1.24% in Q1 2024—supporting revenue quality amid strong net adds (103k) .

What Went Wrong

  • GAAP profitability remains negative: Net loss of $64M and diluted EPS of −$0.26; operating income declined to $76M vs. $90M in Q1 2024 .
  • Copper declines still offset fiber growth across segments, limiting top-line expansion to +3.4% YoY despite strong fiber metrics .
  • No call and no guidance: Management did not host an earnings call or provide an outlook due to the pending acquisition, reducing visibility and limiting narrative engagement with investors .

Financial Results

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Billions)$1.489 $1.506 $1.511
GAAP Diluted EPS ($)−$0.33 −$0.47 −$0.26
Operating Income ($USD Millions)$86 $86 $76
Net Income ($USD Millions)−$82 −$118 −$64
EBITDA ($USD Millions)$496 $515 $521
Adjusted EBITDA ($USD Millions)$549 $595 $583
EBITDA Margin %33.3% 34.2% 34.5%
Adjusted EBITDA Margin %36.9% 39.5% 38.6%
Net Cash from Ops ($USD Millions)$618 $294 $519

Segment/Product Breakdown

Revenue Mix ($USD Millions)Q3 2024Q4 2024Q1 2025
Data & Internet$1,004 $1,029 $1,049
Voice$301 $297 $290
Video$83 $79 $74
Other$83 $85 $82
Consumer$789 $798 $813
Business & Wholesale$682 $692 $682
Fiber$867 $890 $913
Copper$604 $600 $582

KPIs

KPIQ3 2024Q4 2024Q1 2025
Total Fiber Passings (MM)7.6 7.8 8.1
Consumer Fiber Net Adds (000s)104 92 103
Consumer Copper Net Adds (000s)−55 −54 −41
Consumer Fiber ARPU ($)65.40 65.98 68.21
Consumer Fiber Churn (%)1.49% 1.31% 1.20%
Business + Wholesale Fiber ARPU ($)98.71 100.08 99.98
Total Broadband Customers (000s)3,057 3,094 3,153
Total Fiber Penetration (%)30.2% 30.6% 30.7%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Company financial outlook (revenue, EBITDA, capex, etc.)FY2025Not provided (pending transaction) Not provided (pending transaction) Withheld due to pending Verizon acquisition

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q1 2025)Trend
Fiber build scaleQ3: +381k passings to 7.6M; Q4: +241k to 7.8M +321k passings to 8.1M; milestone >8M Accelerating scale
Fiber broadband growthQ3: consumer fiber revenue +21.8% YoY; Q4: +23.2% YoY; ARPU up Fiber broadband revenue +25.6% YoY; ARPU +4.7% YoY Strengthening
Copper declinesQ3/Q4: growth partly offset by copper declines Continues to partly offset fiber growth Ongoing headwind
Cost driversQ3/Q4: lower content costs; higher customer acquisition costs Adjusted EBITDA growth driven by lower content expense, partly offset by higher customer acquisition costs Mixed but manageable
Liquidity/leverageQ3: ~$2.0B liquidity, 4.6x net leverage; Q4: ~$2.9B, 4.8x ~$2.6B liquidity, ~4.9x net leverage Stable liquidity; leverage up modestly
Verizon transaction/cadenceQ3/Q4: announced transaction; no call/outlook No call/outlook; expected close by Q1 2026 Maintained transaction focus
Innovation/brand—Recognized by Fortune’s 2025 Most Innovative Companies list Supportive brand narrative

Management Commentary

  • “We had the strongest start to a year yet, led by continued strength in our fiber business… The team delivered 19% growth in fiber broadband customers and 24% growth in fiber broadband revenues this quarter, which taken together drove record first-quarter growth in both revenue and Adjusted EBITDA.” — Nick Jeffery, President & CEO .
  • “We also hit a milestone in the first quarter, growing our fiber network to reach more than 8 million passings… As we scale our network, we’re expanding access for millions of Americans and building a legacy that will continue to endure long after our planned combination with Verizon.” — Nick Jeffery .
  • Frontier cited lower content expense as a driver of Adjusted EBITDA, partly offset by higher customer acquisition costs .

Q&A Highlights

  • No earnings call or Q&A was held due to the pending Verizon acquisition; management did not provide a financial outlook .

Estimates Context

MetricQ1 2025
Revenue Consensus Mean* ($)1,506,620,920.0
Revenue Actual* ($)1,511,000,000.0
Primary EPS Consensus Mean* ($)−0.20922
Primary EPS Actual* ($)−0.09564
Primary EPS – # of Estimates*7.0
Revenue – # of Estimates*9.0
EBITDA Consensus Mean* ($)587,053,710.0
EBITDA Actual* ($)562,000,000.0
  • Results vs. consensus: Revenue beat by ~$4.4M; normalized EPS beat by ~$0.11; S&P “EBITDA” missed by ~$25M; company-reported Adjusted EBITDA was $583M *.
  • Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Fiber-led growth remains the core thesis: strong consumer fiber net adds (103k), ARPU increase to $68.21, and >8M passings support durable top-line and margin quality even as copper headwinds persist .
  • Sequential trends were healthy: revenue rose Q/Q ($1.506B → $1.511B) and Adjusted EBITDA held at a high level ($595M → $583M), with margin resilience aided by lower content costs .
  • Balance sheet/liquidity are adequate for continued build: ~$2.6B liquidity and no long-term maturities before 2027; net leverage at ~4.9x should decline with scale over time .
  • Near-term stock narrative likely remains tied to Verizon acquisition milestones (regulatory timeline, closing cadence), with limited incremental guidance or call-based color until close .
  • For modeling, anchor on fiber revenue and ARPU trajectory; copper attrition will continue to offset, but net mix shift and passings growth should drive aggregate revenue expansion .
  • Watch operating cost dynamics: management highlighted lower content expense vs. higher customer acquisition costs; this mix will influence Adjusted EBITDA trajectory .
  • Brand/institutional validation continues (Fortune innovation recognition), reinforcing the longer-term fiber strategy and execution credibility .