Lumen Technologies (LUMN) Company Report

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.

3 days ago

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.

3 days ago

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.

3 days ago

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.

3 days ago

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.

3 days ago

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.

3 days ago

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.

5 days ago

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.

5 days ago

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.

Jan 27, 2026, 1:51 PM

Morningstar

Lumen Technologies' Role Highlighted in Optical Fiber Switch Market Forecast

LUMN

New Projects/Investments

Revenue Acceleration/Inflection

The Global Optical Fiber Switch Market is projected to expand significantly, rising from a valuation of USD 4.29 Billion in 2025 to USD 8.72 Billion by 2031, reflecting a compound annual growth rate of 12.55%.
This market growth is primarily driven by the urgent need for energy-efficient data center management, the global increase in high-bandwidth applications, and the modernization of telecommunications infrastructure, including the accelerated deployment of 5G networks and AI workloads.
Lumen Technologies secured $5 billion in new business fueled by the surging need for AI-driven connectivity, as reported in an August 2024 press release, underscoring the critical role of advanced optical networking in sustaining next-generation digital services.
A significant challenge for the market is the substantial initial capital investment required for advanced optical systems, which can impede rapid adoption, particularly among smaller network operators or within developing economies.