Frontier Communications Parent, Inc. (FYBR)·Q2 2025 Earnings Summary

Executive Summary

• Frontier delivered its highest quarterly revenue and Adjusted EBITDA since emerging from bankruptcy, with revenue of $1.54B (+4.0% y/y) and Adjusted EBITDA of $607M (+8.4% y/y); fiber net adds hit a record 126k and consumer fiber ARPU rose 4.9% y/y to $68.54 .
• Revenue modestly beat Wall Street consensus ($1.539B vs. $1.516B*) while GAAP diluted EPS of -$0.49 was more negative than consensus Primary EPS (-$0.20*) given definitional differences; Adjusted EBITDA outpaced internal y/y growth targets and exceeded consensus “EBITDA” estimates on a like-for-like adjusted basis *.
• Consumer revenue rose to $825M (+4.6% y/y) and Business & Wholesale to $697M (+3.0% y/y) as fiber revenue climbed to $939M (+11.8% y/y), offsetting copper declines; total liquidity stood at ~$2.3B with no long-term maturities before 2027 .
• Frontier did not host a call or provide financial outlook due to its pending acquisition by Verizon; closing is expected by Q1 2026 subject to regulatory approvals, limiting near-term guidance catalysts while operational fiber momentum remains strong .

What Went Well and What Went Wrong

What Went Well

• Record fiber broadband customer additions (126k) and higher ARPU supported accelerating fiber revenue growth (+26.2% y/y for consumer fiber broadband revenue) and the company’s “fiber wins” thesis. “We delivered record fiber sales while growing ARPU… highest quarterly revenue and EBITDA since we emerged from bankruptcy,” said CEO Nick Jeffery .
• Adjusted EBITDA growth of 8.4% y/y to $607M driven by revenue growth and lower content expense, partially offset by higher customer acquisition costs, demonstrating operating leverage as fiber scales .
• Fiber passings expanded by 334k to 8.5M total, and total broadband customers increased to 3.227M; consumer fiber churn improved to 1.29% vs. 1.40% in Q2’24, evidencing improving customer retention alongside growth .

What Went Wrong

• GAAP net loss remained at -$123M and diluted EPS at -$0.49 despite operational improvements; sequential operating income fell to $44M from $76M as SG&A and D&A increased q/q .
• Copper continues to decline (copper revenue $583M vs. $626M in Q2’24), pressuring certain legacy segments; Business & Wholesale copper churn increased to 2.85% vs. 1.99% in Q2’24 .
• The company did not provide guidance and did not host a call due to the pending Verizon transaction, limiting forward visibility and detailed narrative for investors near term .

Financial Results

Segment revenue mix:

Key KPIs:

Estimates vs actuals:

Values retrieved from S&P Global.*

Guidance Changes

Earnings Call Themes & Trends

Frontier did not host an earnings call for Q2 2025 (and recent quarters) due to the pending Verizon acquisition . The narrative below draws from press releases and slides.

Management Commentary

• “Q2 was a breakout quarter… we delivered record fiber sales while growing ARPU and achieved our highest quarterly revenue and EBITDA since we emerged from bankruptcy four years ago.” — Nick Jeffery, CEO .
• “We built our strategy on the belief that with every new fiber customer, our business grows stronger… Simply put – fiber wins.” — Nick Jeffery, CEO .
• “Adjusted EBITDA… increased 8.4% year-over-year driven by revenue growth and lower content expense, partially offset by higher customer acquisition costs.” — Company statement .
• Capital structure: “Total liquidity of approximately $2.3 billion… net leverage ratio ~4.9x; no long-term debt maturities prior to 2027.” — Company statement .
• “In light of the pending transaction, Frontier will not be hosting a conference call or providing a financial outlook.” — Company statement .

Q&A Highlights

Frontier did not host a Q2 2025 earnings call; therefore no Q&A was conducted due to the pending Verizon acquisition . Notable clarifications in the release/slides:

• Growth drivers: Adjusted EBITDA increase driven by revenue growth and lower content expenses; higher customer acquisition costs were a partial offset .
• Fiber engine metrics: Strong net adds and ARPU growth, with churn improvement vs. prior year underpinning revenue acceleration in consumer fiber broadband .
• Capital and liquidity: ~$2.3B liquidity and no maturities before 2027 provide runway to continue fiber build pending transaction .

Estimates Context

• Revenue beat: Actual $1.539B vs. consensus $1.516B* (beat), continuing y/y growth momentum *.
• EPS comparison: Primary EPS consensus was -$0.20* vs. GAAP diluted EPS -$0.49 (Frontier does not report adjusted EPS), so the GAAP EPS appears more negative than consensus due to definitional differences; investors should focus on revenue and Adjusted EBITDA trends and cash generation *.
• EBITDA vs consensus: Consensus “EBITDA” ~$595M* is not directly comparable to company’s Adjusted EBITDA ($607M); on a reported adjusted basis performance was above that level, while GAAP EBITDA was $501M *.

Values retrieved from S&P Global.*

Key Takeaways for Investors

• Fiber flywheel accelerating: Record net adds (126k), ARPU up 4.9% y/y, churn down y/y — supportive of continued fiber revenue growth and expanding adjusted margins .
• Bold revenue beat and adjusted margin expansion: Revenue modestly beat consensus; Adjusted EBITDA grew 8.4% y/y with margin reaching 39.4%, signaling operating leverage even with higher acquisition costs *.
• Legacy copper drag persists: Copper revenue and churn remain headwinds, but are increasingly outweighed by fiber growth; monitoring copper churn and revenue mix remains key .
• Strong liquidity and manageable maturities: ~$2.3B liquidity and no long-term debt maturities until 2027 reduce balance sheet risk during fiber build and M&A process .
• Limited near-term guidance narrative: No call or outlook due to the pending Verizon acquisition; trading may center on operational prints, regulatory milestones, and merger timeline .
• Watch content costs and acquisition spend: Lower content expense aided EBITDA, while higher customer acquisition costs offset; sustained ARPU and churn improvements can keep margins resilient .
• Near-term catalysts: Continued fiber passings and net adds pace, consumer ARPU trends, Business & Wholesale fiber growth, and regulatory progress on the Verizon transaction .