Liberty Broadband Corporation

Liberty Capital reported second-quarter revenue of $261 million and adjusted OIBDA of $96 million. Revenue was flat versus the prior year, while adjusted OIBDA declined 11% year over year; consumer revenue declined 2% and business revenue increased 1%. Consumer gross margin increased to 71.8%, while business gross margin decreased to 75.5%. Trailing 12-month free cash flow was $59 million. For the balance of the year, management said GCI remains on track for approximately stable OIBDA, with year-over-year performance weighted to the fourth quarter. Management expects 2026 CapEx of approximately $290 million and says 2026 will be the peak CapEx year, followed by declines in 2027 and 2028.

Ron Duncan framed the quarter as evidence that Liberty Capital is building a cash-generative platform around GCI, a business he described as stable and strategically important in Alaska. His tone was upbeat and confident, emphasizing that network investment is nearing its peak and that capital intensity should fall meaningfully beginning next year. He repeatedly tied that improving cash profile to a new capital allocation approach that includes dividends, buybacks, and selective external investments.

Brian Wendling said Liberty Capital ended the quarter with $510 million of consolidated cash, cash equivalents and restricted cash, including $198 million at GCI. Total principal debt was approximately $1.2 billion, consolidated net leverage was 2.1x, and GCI net leverage was 2.8x; GCI also had $447 million of undrawn capacity net of letters of credit. He noted that GCI incurred about $3 million of public company costs in the quarter that were not in the prior-year period and should continue, and that capital expenditures net of grant proceeds were $70 million in the quarter. He also said the company repurchased approximately $129 million principal amount of senior notes after quarter-end and is considering refinancing the remaining 2028 notes.

Analyst David Joyce asked about subscriber additions, the financial effect of promotions, and whether the 5,400 broadband customer gain came from fixed wireless. Management said the main wireless promotion is free for a year when customers add or upgrade wired service, and that most new wireless lines should begin generating revenue about 12 months after activation. On the broadband acquisition, Ron Duncan said it was a small fixed wireless provider serving fringe areas outside the existing plant, bought both to extend service and to gain experience in fixed wireless technology. When asked about elevated expenses, management pointed to restored costs from the Quintillion fiber break, some one-time contractor costs, and about $3 million of public company expenses that will continue.