Strategic Acquisitions and Investments
Executed definitive agreement to acquire Quintillion (consideration $310M cash, reimbursement up to $50M for pre-closing capex and potential earn-outs); expects the transaction to be accretive to free cash flow within the first year after closing. Will provide a $160M unsecured loan to Quintillion under the acquisition terms. Invested $107M to acquire Searchlight Capital Partners' equity interest in Liberty Latin America and pursuing additional shares; intends to rebrand parent to Liberty Capital Corporation to reflect expanded investment strategy.
Wireless Subscriber Growth and Promotional Success
Consumer wireless lines grew 2% year-over-year to 200,000; total wireless lines at quarter end were 207,700 (including 7,700 business lines). Added ~1,000 consumer wireless lines in the quarter (including ~500 postpaid driven by a 'free for a year' promotion). Reported strong retention from prior unlimited test-drive promotion with upsell retention in the low-90% range.
Convergence Traction
Converged customer adoption increasing: more than 40% of broadband subscribers have one or more wireless lines; over 60% of postpaid wireless lines are sold as part of a bundle/ package, supporting cross-sell and ARPU opportunity.
Improved Consumer Gross Margin and Network Stabilization
Consumer gross margin expanded to 72.2%, driven by lower consumer direct costs from declines in video programming costs. Broadband losses are slowing (management cites a stabilizing broadband base attributable to new G+ promotions and network speed/reliability improvements).
Liquidity and Financial Flexibility
Consolidated cash, cash equivalents and restricted cash of $448M (including ~ $130M at GCI as reported). GCI credit facility had approximately $377M of undrawn capacity net of letters of credit. Reported consolidated principal debt of ~ $1.0B and a low consolidated net leverage at quarter end (management-stated ~1.1x).
Planned CapEx Program to Support Growth
Q1 capex (net of grant proceeds) was $55M. 2026 CapEx guidance of approximately $290M (includes ~$20M carryover from 2025); management expects 2026 to represent a peak year of spend and then for annual CapEx to decline toward historical range of 15%-20% of revenue.