Liberty Capital Corporation

Liberty Capital reported second-quarter revenue of $261 million and adjusted OIBDA of $96 million, with revenue flat year over year and adjusted OIBDA down 11% year over year. Free cash flow over the trailing 12 months was $59 million. On the balance sheet, Liberty Capital had $510 million of consolidated cash equivalents and restricted cash, total principal debt of about $1.2 billion, consolidated net leverage of 2.1x, and GCI net leverage of 2.8x. GCI CapEx net of grant proceeds totaled $70 million in the quarter, and 2026 CapEx is expected to be about $290 million, including $20 million carried over from 2025. Management did not provide formal next-quarter guidance, but said GCI is on track for approximately stable OIBDA in 2026 with performance weighted to the fourth quarter, and expects Quintillion to contribute about $50 million to $55 million of adjusted OIBDA including run-rate synergies in 2026.

Ronald A. Duncan framed the quarter as evidence that Liberty Capital is building a more cash-generative platform, supported by a stronger GCI network and a forthcoming decline in capital intensity. He emphasized the new capital allocation framework: fund the business, pay the dividend, keep leverage around 3x over the long term, and use residual cash for buybacks or other investments when attractive. His tone was confident and constructive, stressing that Quintillion, network upgrades, and convergence should improve resilience, cash generation, and shareholder returns over time.

Brian J. Wendling focused on the financial profile and liquidity. He said the company ended the quarter with $510 million of consolidated cash and restricted cash, $1.2 billion of total principal debt, 2.1x consolidated net leverage, and 2.8x GCI net leverage, while GCI also had $447 million of undrawn capacity. He noted $3 million of public company costs in the quarter that will continue, consumer gross margin of 71.8%, business gross margin of 75.5%, and free cash flow of $59 million for the trailing 12 months, which he tied to higher CapEx, lower OIBDA, and working capital swings.

Analysts focused on subscriber adds, promotions, and expense pressure. Management said the main wireless promotion is free for a year when customers add or upgrade wired service, and that most new wireless lines will not become revenue-generating for about 12 months. On the broadband acquisition, management said it was a small fixed wireless provider outside the existing footprint, bought to extend service and gain fixed-wireless experience. On expenses, management pointed to the prior-year Quintillion fiber break, contractor costs for one-time projects, and the ongoing $3 million of public company expense.