Executive Summary

Q4 2024 revenue grew 5.6% year-over-year to $1.51B as fiber-based products offset copper declines; Adjusted EBITDA rose 8.4% to $595M, with margin expanding to 39.5% driven by revenue growth and lower content expense, partly offset by higher customer acquisition costs .
Net loss was $118M (diluted EPS −$0.47) in Q4, pressured by $203M interest expense and higher D&A; operating income was flat sequentially at $86M .
Record fiber execution: +241K fiber passings in Q4 to 7.8M, +97K fiber broadband customers; Consumer fiber ARPU rose to $65.98, Business fiber ARPU to $100.08 .
Guidance suspended and no earnings call due to pending Verizon acquisition; HSR waiting period expired Feb 14, 2025, and Frontier secured a $1.5B delayed draw term loan to fund fiber build—key stock narrative catalysts .

What Went Well and What Went Wrong

What Went Well

Fiber growth and monetization: Q4 fiber revenue +15.1% YoY (Consumer) and +19.8% YoY (Business), with Consumer fiber broadband revenue +23.2% YoY; CEO emphasized achieving full-year organic revenue growth for the first time in 15+ years .
“Our goal was to return the company to growth, and in less than four years, we delivered.” — Nick Jeffery, CEO .
Margin expansion: Q4 Adjusted EBITDA increased to $595M, margin 39.5% (vs. 36.9% in Q3), supported by lower content costs and revenue growth .
Network build and customer adds: +241K passings to 7.8M; +97K fiber broadband net adds in Q4; Consumer fiber ARPU climbed to $65.98 (+2.8% YoY) .

What Went Wrong

Continued GAAP losses: Q4 net loss of $118M; interest expense remained elevated at $203M, and D&A increased to $429M, weighing on EPS .
Copper attrition: Copper revenue fell (Q4 copper $600M vs. $647M in Q4 2023) and Consumer copper churn rose to 2.54% (vs. 1.86% in Q4 2023), highlighting legacy pressure .
Higher customer acquisition costs partially offset EBITDA tailwinds; consumer churn ticked up to 1.68% total (vs. 1.43% in Q3) amid strong promotional activity .

Financial Results

Consolidated P&L and Margins

Metric	Q4 2023	Q3 2024	Q4 2024
Revenue ($USD Billions)	$1.426	$1.489	$1.506
Operating Income ($USD Millions)	$120	$86	$86
Net Income (Loss) ($USD Millions)	$17	$(82)	$(118)
Diluted EPS ($USD)	$0.07	$(0.33)	$(0.47)
EBITDA ($USD Millions)	$495	$496	$515
EBITDA Margin (%)	34.7%	33.3%	34.2%
Adjusted EBITDA ($USD Millions)	$549	$549	$595
Adjusted EBITDA Margin (%)	38.5%	36.9%	39.5%
Interest Expense ($USD Millions)	$193	$203	$203
Depreciation & Amortization ($USD Millions)	$375	$410	$429

Segment and Mix

Metric ($USD Millions)	Q4 2023	Q3 2024	Q4 2024
Consumer Revenue	$774	$789	$798
Business & Wholesale Revenue	$635	$682	$692
Data & Internet Services Revenue	$897	$1,004	$1,029
Voice Services Revenue	$329	$301	$297
Video Services Revenue	$97	$83	$79
Other Revenue	$86	$83	$85
Fiber Revenue	$762	$867	$890
Copper Revenue	$647	$604	$600

KPIs and Operating Data

KPI	Q4 2023	Q3 2024	Q4 2024
Total Fiber Passings (Millions)	6.5	7.6	7.8
Consumer Fiber Broadband Net Adds (000s)	81	104	92
Business + Wholesale Fiber Net Adds (000s)	3	4	5
Consumer Fiber Broadband ARPU ($)	$64.16	$65.40	$65.98
Business + Wholesale Fiber ARPU ($)	$98.86	$98.71	$100.08
Consumer Total Monthly Churn (%)	1.41%	1.71%	1.59%
Total Fiber Penetration (%)	30.9%	30.2%	30.6%
Net Cash from Operations ($USD Millions)	$296	$618	$294
Capital Expenditures ($USD Millions)	$329	$699	$792

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted EBITDA	FY 2024	$2.20–$2.25B (raised low end to $2.22–$2.25B on Aug 2, 2024)	No financial outlook provided (pending Verizon transaction)	Suspended
Net Cash Interest Payments	FY 2024	~$750M	~$760M (reflects July fiber securitization and term loan refinancing)	Raised
Cash Taxes	FY 2024	~$20M	~$10M	Lowered
Fiber Passing Additions	FY 2024	1.3M	Achieved 1.3M for FY 2024	Achieved
Cash Capital Investment	FY 2024	$3.00–$3.20B	$3.25B total capital investment (capex + vendor financing) achieved	Achieved
Outlook / Earnings Call	Q4 2024	N/A	No call; no guidance due to pending transaction	Suspended

Earnings Call Themes & Trends

Note: Frontier did not host an earnings call for Q3 or Q4 2024 due to the pending Verizon transaction; themes reflect press releases and disclosures .

Topic	Previous Mentions (Q2 2024)	Previous Mentions (Q3 2024)	Current Period (Q4 2024)	Trend
Fiber build & passings	Record +388K passings; scaling to 7.2M	+381K passings; 7.6M total	+241K passings; 7.8M total	Continuing growth
Fiber broadband net adds	Record +92K; momentum building	+108K; strong demand	+97K; sustained growth	Strong but moderating QoQ
ARPU	Consumer fiber ARPU $65.32 (+3.5% YoY)	$65.40 (+1.4% YoY)	$65.98 (+2.8% YoY); Business fiber $100.08	Upward trend
Cost structure & EBITDA	Raised FY24 EBITDA low end; margin expansion	Adjusted EBITDA +4.4% YoY	Adjusted EBITDA +8.4% YoY; margin 39.5%	Improving
Copper declines	Copper revenue down; churn >2%	Continued declines	Ongoing declines; higher churn	Structural headwind
Regulatory/transaction	N/A	Definitive agreement with Verizon; special meeting	HSR waiting period expired; no guidance/call	Advancing toward close

Management Commentary

“2024 was a landmark year… For the first time in more than 15 years, we achieved full-year organic revenue growth, propelled by 19.2% growth in fiber customers and 13.5% growth in fiber revenues.” — Nick Jeffery, President & CEO .
“Today, we stand as the nation’s largest pure-play fiber internet provider, bringing critical connectivity to nearly 8 million homes and businesses.” — Nick Jeffery .
Q4 EBITDA drivers: revenue growth and lower content expense, partially offset by higher customer acquisition costs .

Q&A Highlights

Frontier did not host an earnings call for Q4 2024 (and Q3 2024) due to the pending Verizon transaction, so there were no Q&A sessions or clarifications provided .

Estimates Context

Wall Street consensus estimates from S&P Global for Q4 2024 EPS and revenue were unavailable due to access limitations; therefore, we cannot present a vs. estimates comparison at this time [GetEstimates error].

Key Takeaways for Investors

Fiber-led growth is intact: Q4 revenue +5.6% YoY and Adjusted EBITDA +8.4% YoY, with ARPU increases across Consumer and Business fiber—supports medium-term monetization as fiber penetration inches up (30.6%) .
Legacy copper remains a drag: copper revenue and churn trends imply continued mix-shift pressure, but absolute copper revenue declines are being offset by fiber growth .
GAAP losses reflect capital intensity and financing costs: $203M quarterly interest and rising D&A weigh on EPS; watch leverage (net leverage 4.8x) and net cash interest trajectory .
Liquidity and build funding de-risk execution: total liquidity $2.9B and $1.5B delayed draw term loan provide runway to sustain passings pace in 2025 .
Transaction narrative dominates near term: HSR waiting period expiration and suspended guidance/calls indicate focus on regulatory approvals; stock drivers tied to Verizon acquisition path and execution continuity .
Operational momentum: sustained fiber net adds (+97K) and ARPU growth suggest durable demand; monitor CAC trends given management’s note on higher acquisition costs .
Capex discipline: Q4 capex $792M supports 241K passings; FY total capital investment $3.25B achieved—watch returns, penetration, and opex savings contributions to margins .

Additional Data (Capital Structure and Cash Flow)

Liquidity: $2.9B at Dec 31, 2024 (cash ~$0.8B; $1.5B delayed draw term loan capacity; ~$0.7B revolver) .
Net leverage ratio: 4.8x (Net Debt $10.811B / LTM Adjusted EBITDA $2.251B) .
Q4 cash from operations: $294M; Q4 capex: $792M; FY cash from operations: $1.621B; FY capex: $2.783B .

Frontier Communications Parent, Inc. (FYBR)·Q4 2024 Earnings Summary