Record Revenue and Adjusted OIBDA
Reported record annual revenue of $1.0 billion, a 3% increase year-over-year, and record adjusted OIBDA of $403 million, up 12% year-over-year. Fourth quarter adjusted OIBDA was $90 million, a 7% increase versus prior year quarter.
Strong Free Cash Flow and Improved Liquidity
Generated $146 million in free cash flow for the full year, up over 70% from 2024. Consolidated cash, cash equivalents, and restricted cash totaled $429 million at year-end (inclusive of rights offering proceeds).
Rights Offering and Balance Sheet Flexibility
Completed a fully subscribed rights offering generating approximately $300 million in net proceeds, providing flexibility for general corporate purposes and potential strategic transactions. Undrawn credit capacity of $377 million (net of letters of credit).
Wireless Subscriber Growth and Convergence Progress
Consumer wireless lines grew ~2% year-over-year, ending the year with 199,000 consumer lines and 207,500 total wireless lines including 8,500 business lines. Postpaid additions strong (6,700 postpaid additions during the year), peak postpaid lines reached ~165,400, and ~62% of postpaid lines are now sold as part of a bundle (up from 57% at end of 2024). Approximately 40% of broadband customers have one or more wireless lines.
Business Segment Momentum
Business revenue grew 7% for the year (1% in the fourth quarter) driven by a strong upgrade cycle, with business gross margin increasing to 80.1% for the full year (78.3% in Q4).
Network Investment and Technology Roadmap
Announced significant network upgrades: offering 2.5 Gbps where fiber middle mile exists, Anchorage core upgrades to a 1.8 GHz plant, planned DOCSIS 4.0-capable HFC rollouts aiming for 5 Gbps and beyond to improve speeds and reliability.
Progress on Alaska Build-Out and Rural Expansion
Completed the iHUC one build bringing fiber infrastructure and 2.5 Gbps service to Delta area; on track to complete Alaska plan build-out requirements this year. Provisionally awarded approximately $120 million in BEAD funding (subject to NTIA approval) which would offset capital costs in unserved locations.
Operational Resilience in Adverse Events
Successfully restored service after Typhoon Helong to two affected villages in under four months; repaired another fiber break (Dutch Harbor) in under two weeks. Management highlighted team responsiveness and limited ongoing impact from these events.