Lumen Technologies (LUMN) Company Report

Lumen Technologies has expanded its enterprise networking portfolio with the Lumen Multi-Cloud Gateway and enhanced metro data center connectivity across major U.S. markets.
These new capabilities are designed to accelerate data movement across distributed AI environments, aiming to lower complexity and total cost for enterprises.
The Multi-Cloud Gateway (MCGW) is a software-defined, self-service routing layer providing private, high-capacity connectivity among enterprises, hyperscalers, and emerging cloud platforms.
Enhanced Metro Ethernet & IP Services offer high-capacity, dedicated connectivity up to 100Gbps between regional data centers and edge locations, and up to 400Gbps at key cloud data centers in 16 upgraded U.S. markets.

4 days ago

Press Release

Lumen Technologies Reports Q4 2025 Results and Provides 2026 Guidance

LUMN

Earnings

Guidance Update

Debt Issuance

Lumen Technologies reported Q4 2025 total revenue of $3.041 billion, an 8.7% decline, and Adjusted EBITDA of $767 million. Free cash flow was -$765 million, partly due to a $400 million delayed tax refund expected in the first half of 2026.
For 2026, the company expects Adjusted EBITDA in the range of $3.1 billion to $3.3 billion, projecting an inflection to growth. Total capital expenditures are guided between $3.2 billion and $3.4 billion, and free cash flow between $1.2 billion and $1.4 billion.
Lumen significantly improved its capital structure, reducing debt to under $13 billion after the $5.75 billion sale of its fiber to the home business to AT&T. This, along with other refinancing, reduced annual interest expense by nearly $500 million in the last 12 months.
The company is on track for $1 billion in run rate cost reductions by the end of 2027, having achieved over $400 million in 2025. 52% of North American enterprise revenue now comes from growth products, supporting targets for business revenue growth by 2028 and total revenue growth by 2029.

Feb 3, 2026, 10:00 PM

Transcript

Lumen Reports Q4 2025 Results, Completes AT&T FTTH Transaction, and Provides 2026 Outlook

LUMN

Earnings

M&A

Guidance Update

Lumen completed its AT&T FTTH transaction on February 2, 2026, which reduced debt by $4.8 billion, eliminated all Super Priority Bonds, and is expected to reduce Capex by over $1 billion annually and interest expense by an additional $300 million at close, bringing net leverage below 4x.
For Q4 2025, Lumen reported Total Revenue of $3041 million and Adjusted EBITDA (excluding special items) of $767 million, with Free Cash Flow at -$765 million, which were in-line with expectations.
The company provided a 2026 financial outlook, projecting Adjusted EBITDA between $3.1 billion and $3.3 billion and Free Cash Flow between $1.2 billion and $1.4 billion. Capital expenditures are expected to be $3.2 billion to $3.4 billion.
Lumen achieved 29% quarter-over-quarter growth in Active NaaS Customers and reached nearly $13 billion in Private Connectivity Fabrics (PCF) Deals Signed to Date.

Feb 3, 2026, 10:00 PM

Presentation

Lumen Technologies Closes AT&T Transaction and Issues 2026 Financial Guidance

LUMN

Earnings

Guidance Update

M&A

Lumen Technologies completed its transaction with AT&T, utilizing $4.8 billion in net proceeds to pay off super priority bonds, reducing total debt to less than $13 billion and annual interest expense by nearly $500 million.
For Q4 2025, the company reported total revenue of $3.041 billion, adjusted EBITDA of $767 million, and negative free cash flow of $765 million, with a $400 million tax refund anticipated in the first half of 2026.
The 2026 financial outlook projects adjusted EBITDA between $3.1 billion and $3.3 billion, total capital expenditures between $3.2 billion and $3.4 billion, and free cash flow between $1.2 billion and $1.4 billion.
Lumen achieved over $400 million in run rate cost reductions in 2025, targeting $700 million by year-end 2026, and expects business revenue growth by 2028, supported by nearly $13 billion in PCF deals.

Feb 3, 2026, 10:00 PM

Transcript

Lumen Announces Q4 2025 Results and 2026 Outlook Following AT&T Transaction Close

LUMN

Earnings

M&A

Guidance Update

Lumen closed its fiber-to-the-home business transaction with AT&T on February 2, 2026, using $4.8 billion in net proceeds to pay off super priority bonds, reducing total debt to less than $13 billion and net leverage to below 4 times. This, combined with other debt refinancing, reduced annual interest expense by nearly $500 million from 2025 levels.
For Q4 2025, Lumen reported total revenue of $3.041 billion and Adjusted EBITDA of $767 million, with a free cash flow of -$765 million. The company recognized $41 million in revenue from PCF deals in Q4 2025, contributing to $116 million for the full year 2025.
Lumen provided a 2026 outlook, expecting Adjusted EBITDA in the range of $3.1 billion-$3.3 billion, total capital expenditures between $3.2 billion-$3.4 billion, and free cash flow of $1.2 billion-$1.4 billion. Net cash interest expense is projected to be $650 million-$750 million, a reduction of over $550 million from 2025.
The company exceeded its 2025 cost reduction target, achieving over $400 million in run rate savings, and is targeting an additional $300 million in run rate savings by the end of 2026, aiming for a total of $700 million towards its $1 billion 3-year goal.
Lumen continues to expand its Network-as-a-Service (NaaS) business, with active customers growing 29% quarter-over-quarter, NaaS fiber ports deployed growing 31%, and services sold growing 26%. The company has signed nearly $13 billion in PCF deals to date, including $2.5 billion in Q4 2025.

Feb 3, 2026, 10:00 PM

Transcript

Lumen Technologies Reports Q4 and Full Year 2025 Results, Completes AT&T Transaction, and Issues 2026 Outlook

LUMN

Earnings

M&A

Guidance Update

Lumen Technologies completed its $5.75 billion transaction with AT&T, significantly strengthening its balance sheet by reducing total debt by over $4.8 billion and net leverage to below 4x.
For Q4 2025, the company reported revenues of $3.041 billion and Adjusted EBITDA (excluding Special Items) of $767 million, with full-year 2025 revenues reaching $12.402 billion and Adjusted EBITDA (excluding Special Items) at $3.360 billion.
Operational execution saw Lumen exceed its cost reduction target with over $400 million in run-rate savings by year-end 2025, while also seeing NA Enterprise grow revenue hit 52% in Q4 and NaaS customers grow 29%.
The company issued its full-year 2026 financial outlook, projecting Adjusted EBITDA between $3.1 billion and $3.3 billion and Free Cash Flow between $1.2 billion and $1.4 billion.

Feb 3, 2026, 9:17 PM

8-K

Lumen Technologies Reports Q4 and Full Year 2025 Results, Completes AT&T Transaction, and Provides 2026 Outlook

LUMN

Earnings

M&A

Guidance Update

Lumen Technologies completed its $5.75 billion AT&T transaction, which reduced total debt by over $4.8 billion and net leverage to below 4x, and is expected to decrease annual interest expense by nearly 45% compared to 2025 levels.
For the full year ended December 31, 2025, Lumen reported revenues of $12.402 billion, Adjusted EBITDA (excluding Special Items) of $3.360 billion, and Free Cash Flow (excluding Special Items) of $1.041 billion.
The company exceeded its 2025 cost reduction target, achieving over $400 million in run-rate savings, and is on track for $700 million in savings exiting 2026 and $1 billion exiting 2027.
Lumen provided its full-year 2026 financial outlook, projecting Adjusted EBITDA of $3.1 to $3.3 billion and Free Cash Flow of $1.2 to $1.4 billion.

Feb 3, 2026, 9:01 PM

Press Release

Lumen Technologies Completes Sale of Consumer Fiber-to-the-Home Business to AT&T

LUMN

M&A

Debt Issuance

Lumen Technologies, Inc. completed the sale of its Mass Markets fiber-to-the-home business, including Quantum Fiber, to AT&T for $5.75 billion in cash on February 2, 2026.
The company plans to apply approximately $4.8 billion of the transaction proceeds and cash on hand to retire all super priority debt, which is expected to reduce annual interest expense by approximately $300 million.
This transaction is anticipated to reduce Lumen's debt to less than $13 billion and its net debt to adjusted EBITDA ratio to below 4x.
The divestiture positions Lumen as a pure-play enterprise-focused technology infrastructure company, while it retains its national, regional, state, and metro fiber backbone network infrastructure and copper-based consumer services.

Feb 2, 2026, 12:03 PM

8-K

Lumen Completes Sale of Consumer Fiber-to-the-Home Business

LUMN

M&A

Debt Issuance

New Projects/Investments

Lumen Technologies completed the sale of its Mass Markets fiber-to-the-home business to AT&T for $5.75 billion in cash.
The company plans to apply approximately $4.8 billion of the proceeds to retire super priority debt, which is expected to reduce annual interest expense by approximately $300 million and lower total debt to less than $13 billion.
This divestiture strategically transforms Lumen into a pure-play enterprise-focused technology infrastructure company.
Lumen's growth strategy includes expanding its fiber network, with 17 million intercity fiber miles deployed by the end of 2025 and a goal of 47 million miles by the end of 2028.

Feb 2, 2026, 11:35 AM

Press Release

Lumen Technologies Earns ISO 42001 AI Governance Certification

LUMN

New Projects/Investments

Debt Issuance

Revenue Acceleration/Inflection

Lumen Technologies secured ISO 42001 certification for its Artificial Intelligence Management System, a first-of-its-kind award from Schellman Compliance, underscoring its commitment to responsible AI and reinforcing its position for AI-heavy workloads.
The announcement contributed to a recent short-term rebound in shares, with a 1-day return of ~7.65% and a 30-day return of ~20.81%.
Despite this, the company faces financial headwinds, including a recent net loss of $1,652 million on $12,690 million in revenue, margin pressure, and a challenged financial-strength profile.
Lumen's Level 3 Financing unit plans an additional offering of $600 million of 8.5% senior notes due 2036 to fund debt purchases tied to tender offers.
The company is strategically shifting away from legacy consumer voice businesses towards higher-margin enterprise and digital segments, which now account for roughly 75% of revenue.