Liberty Broadband Corporation

Liberty Capital reported second-quarter revenue of $261 million and adjusted OIBDA of $96 million. Revenue was flat versus last year, while adjusted OIBDA declined 11% year over year; management also said trailing-12-month free cash flow was $59 million. On margins, consumer gross margin rose to 71.8% and business gross margin fell to 75.5%, with business margin pressured by a $9 million increase in distribution costs. For the balance of the year, management said GCI is on track for approximately stable OIBDA, with year-over-year performance weighted to the fourth quarter, and expects 2026 CapEx of approximately $290 million, including $20 million carried over from 2025.

Ron Duncan framed this as the start of a new Liberty Capital phase, emphasizing stronger cash generation, disciplined capital allocation, and shareholder returns. He said GCI is nearing the end of an elevated investment cycle, with capital intensity expected to decline in 2027 and 2028, and described the business as increasingly cash-generative with an important Alaska network position. He also stressed a pragmatic competitive stance on Starlink and said the Quintillion deal should improve network resilience, cash flow, and optionality for both investments and buybacks.

Brian Wendling highlighted consolidated cash, cash equivalents and restricted cash of $510 million at quarter end, including $198 million at GCI. He said total principal debt was about $1.2 billion, Liberty Capital consolidated net leverage was 2.1x, and GCI net leverage was 2.8x; GCI also had $447 million of undrawn credit facility capacity net of letters of credit. He noted approximately $129 million of senior notes had been repurchased after quarter end through July 31, and said 2026 CapEx is expected to be approximately $290 million. He also pointed to about $3 million of public company costs in the quarter that were not present a year ago and should continue.

Analysts focused on subscriber growth, promotional economics, and expense pressure. Management said most new wireless lines from current promotions should begin generating revenue about 12 months after activation, and that the broadband acquisition was a small fixed wireless provider serving fringe areas outside the existing footprint. On costs, management attributed the higher expense base to restored direct costs from the Quintillion fiber break last year, some one-time contractor costs, and about $3 million of ongoing public company expenses.