Executive Summary

Q2 2025 revenue rose 6% year over year to $261M, operating income increased 70% to $51M, and operating margin expanded 730 bps to 19.5%; Adjusted OIBDA grew 26% to $108M, driven by strong Business data upgrades and cost efficiencies .
Consumer revenue declined 2% (data -5%, video down, wireless +6%), offset by Business revenue up 14% (+18% in data), reflecting schools and healthcare upgrade cycle that began in Q3 2024 .
Management reaffirmed strategic priorities: exit the video business by year-end 2025, execute rural Alaska fiber projects (Bethel and AU-Aleutians), and target ~$250M net capex in FY 2025; trailing-12-month free cash flow was $153M and leverage fell to 2.3x .
Regulatory backdrop improved: Supreme Court upheld the constitutionality of the USF, removing a key overhang for Alaska connectivity economics; management highlighted this as a positive catalyst for continued investment and service expansion .
Stock reaction: aftermarket up ~1.67% to $38.30 on the day of the call, supported by clean execution and margin expansion .

What Went Well and What Went Wrong

What Went Well

Business segment strength: Revenue +14% YoY (data +18% to $125M), reflecting continued upgrades in schools and healthcare across remote Alaska, driving higher gross margin to 81.7% (+730 bps) .
Cost discipline and efficiencies: Total operating expenses (ex-D&A) fell 4%; SG&A (ex-SBC) down 4% on lower external labor; margin expansion supported OIBDA growth (+26%) .
Management tone and regulatory clarity: “We were very pleased with the Supreme Court’s ruling… [USF] provides clarity for GCI to continue the critical work of bridging the digital divide” — Ron Duncan, CEO .

What Went Wrong

Consumer softness: Consumer revenue -2% YoY with data -5%, pressured by ACP program termination and video declines; subscriber net losses persisted (cable modem subs fell 1,300 in Q2; -3% YoY to 154,500) .
Business wireless revenue declined 17% YoY to $10M, partially offset by strong Business data performance .
Temporary network disruption: Rural subscriber growth was adversely impacted by a fiber break on a third-party network (though it also yielded temporary cost savings in distribution) .

Financial Results

Consolidated Metrics vs Prior Periods

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$263*	$266*	$261
Net Income ($USD Millions)	$15*	$35*	$27
Diluted EPS ($USD)	NA*	$1.22*	$0.94 (pro forma)
Operating Income ($USD Millions)	—	—	$51
EBIT Margin (%)	12.17%*	21.80%*	19.54%*
EBITDA ($USD Millions)	$82*	$111*	$103*
EBITDA Margin (%)	31.18%*	41.73%*	39.46%*

Values marked with an asterisk were retrieved from S&P Global.

Primary sources: Q2 2025 revenue, net income, operating income and EPS from the Q2 2025 press release and 8-K .

Segment Breakdown (YoY)

Segment	Sub-Metric	2Q24	2Q25	YoY Change
Consumer	Data Revenue ($M)	$63	$60	-5%
Consumer	Wireless Revenue ($M)	$48	$51	+6%
Consumer	Other Revenue ($M)	$10	$8	-20%
Consumer	Total Revenue ($M)	$121	$119	-2%
Consumer	Direct Costs ($M)	$(36)	$(35)	-3%
Consumer	Gross Margin ($M)	$85	$84	-1%
Consumer	Gross Margin (%)	70.2%	70.6%	+40 bps
Business	Data Revenue ($M)	$106	$125	+18%
Business	Wireless Revenue ($M)	$12	$10	-17%
Business	Other Revenue ($M)	$7	$7	—
Business	Total Revenue ($M)	$125	$142	+14%
Business	Direct Costs ($M)	$(32)	$(26)	-19%
Business	Gross Margin ($M)	$93	$116	+25%
Business	Gross Margin (%)	74.4%	81.7%	+730 bps

KPIs and Balance Sheet Highlights

KPI / Metric	Q2 2024	Q2 2025	Notes
Cable Modem Subscribers	159,000	154,500	-3% YoY; -1,300 in Q2 2025
Consumer Wireless Lines	205,600	207,000	+1% YoY; +4,700 in Q2 2025
Cash, Cash Equivalents & Restricted Cash ($M)	—	$117 (6/30/25)	Down $32M QoQ
Total Debt ($M)	—	$1,047 (6/30/25)	GAAP Debt $987
Undrawn Revolver Capacity ($M)	—	$377	Net of LCs
GCI Leverage	—	2.3x	As defined in credit agreement
TTM Cash from Ops ($M)	—	$342	Through Q2 2025
TTM Free Cash Flow ($M)	—	$153	Through Q2 2025

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Capital Expenditures	FY 2025	Not previously specified	~$250M (net of grant proceeds)	New/Initiated
Alaska Plan Build-out	Through 2026	Not previously specified	Expected completion by end of 2026	New timing clarity
Video Exit	FY 2025	Ongoing transition	Fully exit by end of 2025	Reiterated timeline
Liquidity/Leverage	Current	—	Undrawn revolver $377M; leverage 2.3x	Positive positioning

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q2 2025)	Trend
Regulatory/USF	Ongoing regulatory watch; importance of USF for rural Alaska economics	Supreme Court upheld USF; management “very pleased,” enabling continued rural investment	Positive regulatory clarity
Supply Chain/Network	Upgrade cycle began in Q3 2024; infrastructure projects underway	Rural subscriber growth impacted by third-party fiber break; temporary cost savings offset	Mixed: temporary disruption, cost tailwind
Product Performance (Enterprise/Schools/Healthcare)	Upgrade cycle flagged since Q3 2024	Business data +18% YoY; strong uptake across schools & healthcare	Strengthening
Macro/Programs (ACP)	ACP termination discussed since 2024	Consumer data -5% YoY; continuing impact from ACP termination	Ongoing headwind
Regional Projects	Rural Alaska focus	Bethel & AU-Aleutians fiber projects highlighted	Execution focus
Strategic/M&A	—	Exploring out-of-state acquisition opportunities (call commentary)	Optionality emerging

Management Commentary

“GCI delivered strong results during the quarter… solid revenue and Adjusted OIBDA growth… [and] efficiencies in our cost structure… We were very pleased with the Supreme Court’s ruling… upholding the [USF]. This provides clarity… to continue… bridging the digital divide” — Ron Duncan, CEO .
Operational framing: YoY revenue +6% with margin expansion tied to cost controls, temporary distribution cost savings linked to a third-party fiber break, and Business data growth from schools/healthcare upgrades .
Capital deployment: Year-to-date net capex $100M; FY 2025 net capex expected ~$250M for middle/last-mile connectivity and rural network expansion; Alaska Plan build-out to be completed by end of 2026 .

Q&A Highlights

Clarification on Consumer softness: ACP termination and video declines weighed on Consumer data; wireless growth and subsidies provided partial offset .
Network disruption and costs: Temporary fiber break on a third-party network impacted rural subscriber growth but lowered distribution costs; management expects normalization post-resolution .
Capital priorities: Focus on rural fiber projects (Bethel, AU-Aleutians) within ~$250M 2025 net capex envelope; liquidity remains strong with $377M undrawn revolver .
Strategic optionality: Management indicated exploration of out-of-state acquisition opportunities (non-core expansion) .
Regulatory tone: USF ruling reduces policy uncertainty, supporting long-term economics for rural connectivity .

Estimates Context

S&P Global consensus estimates: EPS and revenue consensus for Q2 2025 were unavailable; only actual revenue of $261M is present in S&P Global [GetEstimates: Primary EPS Consensus Mean unavailable; Revenue Consensus Mean shows actual only]. Values retrieved from S&P Global.
Implication: With consensus unavailable, post-quarter estimate revisions will depend on sell-side coverage resumption and spin-off related disclosures; margin expansion and Business segment strength suggest upward bias to OIBDA expectations absent new headwinds .

Key Takeaways for Investors

Business segment momentum is durable: Schools/healthcare upgrades continue to drive high-margin growth; watch for sustained data revenue strength and whether Business wireless stabilizes .
Consumer mix shift: Expect continued pressure in Consumer data/video from ACP cessation and planned video exit, partially offset by wireless subscriber growth and subsidies; monitor net adds and churn trends .
Execution on rural fiber: 2025 net capex (~$250M) targets middle/last-mile projects; milestones on Bethel and AU-Aleutians are key operational catalysts .
Balance sheet flexibility: Reduced debt ($86M QoQ) and $377M undrawn capacity provide optionality for projects and potential tuck-ins; leverage at 2.3x is supportive .
Regulatory backdrop improved: USF ruling lowers risk and supports investment returns in remote markets; positive for long-run FCF profile .
Near-term trading setup: Margin expansion and OIBDA growth drove a modest positive stock reaction; continued Business strength and any acquisition updates could extend momentum .
Spin-off context: GLIBA became independent on July 14; governance and financial agreements (TSA/TRA) in place; monitor disclosures and any changes as Charter-LBRD combination proceeds .

Sources: Q2 2025 8-K and press release including Exhibit 99.1 ; pre-call notice press release ; spin-off completion and related agreements ; fireside chat Reg FD ; Q2 2025 earnings call transcript and highlights .

GCI Liberty, Inc. (GLIBA)·Q2 2025 Earnings Summary