Liberty Broadband Corporation

Liberty Capital reported second-quarter revenue of $261 million and adjusted OIBDA of $96 million. Revenue was flat year over year, while adjusted OIBDA was down 11%. GCI’s consumer revenue declined 2%, business revenue increased 1%, consumer gross margin rose to 71.8%, and business gross margin fell to 75.5%. Trailing 12-month free cash flow was $59 million, and capital expenditures net of grant proceeds were $70 million in the quarter. Looking ahead, management expects approximately stable OIBDA for the year, with performance weighted to the fourth quarter; 2026 CapEx is expected to be about $290 million and is expected to be the peak spending year. The company also plans to begin a recurring dividend in the fourth quarter, at approximately $15 million per quarter, and expects Quintillion to be accretive to free cash flow in the first year after closing.

Ron Duncan framed the quarter as evidence that Liberty Capital is transitioning from heavy investment to stronger cash generation. He emphasized that GCI is a stable operating business in Alaska, that network upgrades are expanding 5G coverage and improving efficiency, and that capital intensity should fall meaningfully beginning next year and again in 2028. He also presented the new capital allocation framework as a durable way to return cash through dividends, buybacks, and selective investments.

Brian Wendling highlighted the balance sheet and cash profile, saying Liberty Capital ended Q2 with $510 million of consolidated cash, cash equivalents and restricted cash, including $198 million at GCI, and about $1.2 billion of total principal debt. He said consolidated net leverage was 2.1x and GCI net leverage was 2.8x, with $447 million of undrawn capacity under GCI’s credit facility net of letters of credit. He also noted that GCI amended its credit facility to secure up to $480 million of additional financing capacity for Quintillion and general corporate purposes, and that approximately $129 million of senior notes have been repurchased since quarter-end through July 31.

Analysts focused on wireless subscriber gains, the economics of promotional pricing, and the acquired broadband customers. Management said the main wireless promotion is free service for a year when customers add or upgrade wired service, and that most of the new wireless lines should begin generating revenue about 12 months after activation. On the 5,400-customer broadband acquisition, Ron Duncan said it was a small fixed-wireless provider serving fringe areas outside the existing footprint, bought both to extend service and to gain experience in fixed-wireless technology. In response to margin questions, management pointed to restored service on the Quintillion network, contractor expenses on one-time projects, and about $3 million of new public company costs that should continue.