Executive Summary

Q3 2025 revenue declined 2% year over year to $257M; Adjusted OIBDA fell 8% to $92M as SG&A rose and consumer video and data weakened, while a $525M non-cash impairment drove a GAAP operating loss of $488M .
The company announced a $300M transferable rights offering for Series C GLIBK shares at an ~20% discount to a 10-day VWAP; John Malone intends to fully exercise and oversubscribe, and rights are expected to trade as GLIBR from November 26 to December 17, 2025 .
Sequentially, total revenue decreased from $261M in Q2 to $257M in Q3 as Consumer declined and Business was flat; Consumer wireless remained a bright spot (+11% YoY), and GCI has fully exited video by quarter-end .
Management reiterated heavy rural network investment and regulatory tailwinds (USF affirmed; provisional BEAD awards >$140M) and stated on the call the company is “tracking towards a record Adjusted OIBDA in 2025,” providing a positive narrative despite near-term headwinds .
The stock fell ~3.6% post-release to $37.02, with investors focused on the impairment, capex intensity, and the capital raise structure; management’s commentary on 2025 OIBDA and BEAD could be a medium-term support .

What Went Well and What Went Wrong

What Went Well

Consumer wireless strength: revenue +11% YoY to $52M on higher federal subsidies; lines +2% YoY to 207,500 .
Business gross margin expansion: Business gross margin rose 70 bps YoY to 78.2% driven by lower direct costs, despite lower roaming revenue .
Strategic clarity: Exit from video completed, sharpening focus on broadband connectivity; CEO: “we have exited our video business, completing our transition to a pure play broadband connectivity provider” .
Regulatory tailwinds: USF constitutionality upheld (June), and provisional BEAD grants >$140M, supporting rural buildout economics .

What Went Wrong

Top-line softness: Consolidated revenue fell 2% YoY; Consumer revenue -4% YoY as data/video declined and cable modem subs dropped 3% YoY to 153,100 .
SG&A pressure: Selling, general & administrative expense (ex-SBC in detail) increased 31% YoY, contributing to Adjusted OIBDA margin compression to 35.8% (-240 bps) .
Impairment-driven GAAP loss: A $525M non-cash impairment to goodwill/intangibles resulted in a GAAP operating loss of $488M and diluted EPS of -$13.34, overshadowing otherwise stable operations .

Financial Results

Consolidated Performance vs Prior Periods and Estimates

Metric	Q3 2024	Q2 2025	Q3 2025
Revenues ($USD Millions)	$262	$261	$257
Operating Income ($USD Millions)	$41	$51	$(488)
Adjusted OIBDA ($USD Millions)	$100	$108	$92
Adjusted OIBDA Margin (%)	38.2%	41.4%	35.8%
Diluted EPS ($)	$0.72	$0.94 (Pro forma)	$(13.34)

Notes: Adjusted OIBDA excludes D&A, SBC, and the $525M impairment .

Segment Revenue Breakdown

Segment	Subcategory	Q3 2024 ($M)	Q2 2025 ($M)	Q3 2025 ($M)
Consumer	Data	$61	$60	$59
Consumer	Wireless	$47	$51	$52
Consumer	Other	$12	$8	$4
Consumer	Total	$120	$119	$115
Business	Data	$123	$125	$124
Business	Wireless	$11	$10	$10
Business	Other	$8	$7	$8
Business	Total	$142	$142	$142

Key Operating Metrics and Balance Sheet Items

KPI	Q3 2024	Q2 2025	Q3 2025
Consumer Cable Modem Subs	157,400	154,500	153,100
Consumer Wireless Lines	204,000	207,000	207,500
TTM Free Cash Flow ($M)	—	$153	$155
Cash, Cash Equivalents & Restricted ($M)	—	$117 (6/30/25)	$137 (9/30/25)
Total Debt ($M)	—	$1,047 (6/30/25)	$1,045 (9/30/25)
Leverage (per credit agreement)	—	2.3x	2.3x

Cash Flow and Capex

YTD capex net of grant proceeds: $152M through Q3 (FY25), vs $100M through Q2 (FY25) .
TTM CFO and FCF through Q3: CFO $357M; capex $(238)M; grant proceeds $36M; FCF $155M .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Capex (after grants)	FY 2025	“~$250M”	$225M–$250M	Lowered low end; timing delays cited
Adjusted OIBDA	FY 2025	Not previously quantified	“Tracking towards record Adjusted OIBDA in 2025” (Call)	Raised qualitative outlook
Rights Offering	Q4 2025 execution	N/A	$300M offering; ~20% discount; GLIBR trading 11/26–12/17; Malone to fully exercise and oversubscribe	New capital plan

Management explains the capex range reflects build timing for middle and last-mile connectivity and Alaska Plan obligations through 2026 (Bethel and AU-Aleutians fiber projects) .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2025)	Current Period (Q3 2025)	Trend
Broadband focus / video exit	Planned exit by YE25; Consumer weakness tied to ACP termination	Video exit completed by 9/30/25; sharpened pure-play connectivity positioning	Execution completed; strategic focus intensified
Rural network expansion	Strong upgrades in schools/healthcare; fiber break causing temp cost savings	Continued rural expansion; restoration after third-party fiber break; 2.5Gb upgrades; future 5Gb capability highlighted on call	Ongoing expansion; capabilities upgraded
Regulatory/macro	USF constitutionality upheld (June) supporting economics	Provisional BEAD awards >$140M; supports closing digital divide	Strengthening regulatory tailwinds
Capital strategy	Credit facility refi and reduced debt; undrawn capacity $377M	$300M rights offering; GLIBR tradable rights; Malone commits	Capital raise increases flexibility
Consumer performance	Data/video pressure; wireless growth	Data/video declines continue; wireless accelerates (+11% YoY)	Mixed: data/video down; wireless up
Impairment/non-GAAP	None mentioned	$525M impairment; Adjusted OIBDA excludes it	One-time charge; non-GAAP focus maintained

Management Commentary

“GCI delivered solid results this quarter... As of the end of the quarter, we have exited our video business, completing our transition to a pure play broadband connectivity provider. We continue to see opportunity in our wireless business... [and] were provisionally awarded over $140 million in BEAD grants...” — Ron Duncan, CEO .
“We are proud to say we are tracking towards a record Adjusted OIBDA in 2025, a huge milestone for the company.” — CEO comment on earnings call .
Capital plan: The rights offering details and timeline, including transferable rights and pricing mechanics, and Malone’s participation, were disclosed via press release .

Q&A Highlights

Capital allocation and rights offering: Management discussed rationale for the $300M rights offering, flexibility for working capital, capex, refinancing, and accretive acquisitions or diversification opportunities; Malone’s intent to oversubscribe underscores sponsor support .
Network reliability and fiber disruptions: Restoration progress and contingency planning were addressed, noting temporary cost savings from third-party fiber break and full service restoration by quarter-end .
2025 OIBDA trajectory: Management conveyed confidence in reaching a record Adjusted OIBDA, contingent on execution of upgrades and subsidy stability .
Regulatory programs: Affirmation of USF and BEAD awards’ role in funding rural broadband and wireless initiatives was reiterated .

Estimates Context

Metric	Consensus (S&P Global)	Reported
Revenue ($USD Millions)	N/A*	$257
Adjusted EBITDA/OIBDA ($USD Millions)	N/A*	$92
EPS ($)	N/A*	$(13.34)

Values retrieved from S&P Global. Consensus data for GLIBA was unavailable for Q3 2025 at time of query.*

Implication: Without a published consensus, investors should anchor evaluation to YoY and sequential trends and qualitative outlook (record 2025 OIBDA, capex timing, rights offering). If third-party estimates emerge, the impairment-driven GAAP miss and modest Adjusted OIBDA decline would be weighed against wireless momentum and regulatory tailwinds .

Key Takeaways for Investors

Non-GAAP performance remains resilient: Despite a $525M impairment, Adjusted OIBDA of $92M and mid-30s margin show operational health; wireless growth offsets consumer data/video pressure .
Strategic focus sharpened: Video exit completed; rural broadband leadership with BEAD support (> $140M provisional awards) enhances long-term growth visibility .
Capex disciplined but elevated: FY25 net capex refined to $225–$250M (lower low end) on timing; expect elevated investment through 2026 tied to Alaska Plan and fiber projects (Bethel, AU-Aleutians) .
Rights offering is a key catalyst: $300M GLIBK rights at ~20% discount; tradable rights (GLIBR) and Malone’s oversubscription may support execution and liquidity, but dilution optics warrant attention near-term .
Regulatory backdrop supportive: USF affirmed; continued subsidies underpin consumer wireless and rural economics, mitigating macro headwinds .
Trading setup: Post-earnings drawdown (~3.6%) reflects impairment optics and capex intensity; monitoring the rights pricing, take-up, and any update to 2025 OIBDA trajectory could drive near-term stock moves .
Medium-term thesis: Execution on rural fiber and broadband upgrades, subsidy stability, and capital plan flexibility position GCI Liberty to grow OIBDA and FCF as the network expansion completes and video exit eliminates low-margin drag .

References: 8-K earnings release and exhibits (Q3 2025) ; Q2 2025 8-K earnings release ; IR calendar and materials ; Earnings call transcript/highlights .

GCI Liberty, Inc. (GLIBA)·Q3 2025 Earnings Summary