Liberty Broadband (LBRDA) AI Stock Analysis

• Market Cap: $8.68B
• Dividend Yield: N/A
• Average Volume (3M): 155.50K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.86
• Revenue Growth: 7.24%
• EPS Growth: 35.79%
• Country: US
• Employees: 1,900
• Sector: Communication Services
• Sector Strength: 94
• Industry: Telecommunications Services
• EPS (TTM): 0.94
• Shares Outstanding: 18,254,690
• 10 Day Avg. Volume: 94,859
• 30 Day Avg. Volume: 155,503
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.98
• Enterprise Value/Revenue: 16.31
• Enterprise Value/Gross Profit: 20.85
• Enterprise Value/Ebitda: 10.87
• 1Y Price Target: $65.00
• Price Target Upside: 8.33% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 62 Neutral
• Price Target: $65.00 ▲(8.33% Upside)

Liberty Broadband's overall stock score reflects strong financial performance and valuation, offset by technical weaknesses and operational challenges highlighted in the earnings call. The high debt levels and cash flow issues are significant risks, while the stock appears undervalued, offering potential upside if operational issues are resolved.

Positive Factors

Revenue Growth

Consistent revenue growth and strong margins indicate robust demand for services and effective cost management, supporting long-term sustainability.

Strategic Spin-Off

The spin-off of GCI Liberty allows Liberty Broadband to focus on core operations, potentially enhancing strategic clarity and operational efficiency.

Operational Efficiency

Record performance in GCI's operations reflects strong market execution and financial management, supporting future growth prospects.

Negative Factors

High Debt Levels

High leverage poses financial risks, potentially limiting flexibility and increasing vulnerability to economic downturns.

Cash Flow Challenges

Negative free cash flow growth indicates difficulties in converting earnings into cash, which could impact liquidity and investment capacity.

Customer Decline

Declining customer base in key segments may signal competitive pressures or market saturation, affecting future revenue streams.

Liberty Broadband Business Overview & Revenue Model

Company Description

Liberty Broadband Corporation engages in the communications businesses. It operates through GCI Holdings and Charter segments. The GCI Holdings segment provides a range of wireless, data, video, voice, and managed services to residential customers, businesses, governmental entities, and educational and medical institutions primarily in Alaska under the GCI brand. The Charter segment offers subscription-based video services comprising video on demand, high-definition television, and digital video recorder service; local and long-distance calling, voicemail, call waiting, caller ID, call forwarding, and other voice services, as well as international calling services; and Spectrum TV. It also provides internet services, including an in-home Wi-Fi product that provides customers with high-performance wireless routers and managed Wi-Fi services; advanced community Wi-Fi; mobile internet; and a security suite that offers protection against computer viruses and spyware. In addition, this segment offers internet access, data networking, fiber connectivity to cellular towers and office buildings, video entertainment, and business telephone services; advertising services on cable television networks and digital outlets; and operates regional sports and news networks. Liberty Broadband Corporation was incorporated in 2014 and is based in Englewood, Colorado.

How the Company Makes Money

Liberty Broadband generates revenue primarily through its ownership stake in Charter Communications, which earns income from its subscription-based services, including residential and commercial broadband internet, cable television, and voice services. Charter's business model relies on monthly subscription fees from its customers, along with additional revenue from advertising services and equipment rentals. The company benefits from economies of scale and a large customer base, which allows it to leverage its infrastructure investments. Additionally, Liberty Broadband may derive income from capital gains on its investments and potential partnerships with content providers, enhancing its service offerings and driving further customer engagement.

Liberty Broadband Financial Statement Overview

Summary

Liberty Broadband shows strong revenue growth and profitability with impressive margins. However, the high debt-to-equity ratio raises concerns about financial leverage and risk. Cash flow metrics indicate challenges in converting earnings into cash, which could impact liquidity.

Income Statement

Liberty Broadband shows a strong revenue growth rate of 1.45% TTM, indicating positive momentum. The gross profit margin improved significantly to 78.23% TTM, reflecting efficient cost management. However, the net profit margin of 103.04% TTM is unusually high, suggesting potential one-time gains or accounting adjustments. EBIT and EBITDA margins are robust at 130.13% and 150.09% TTM, respectively, indicating strong operational performance.

Balance Sheet

The company's debt-to-equity ratio has increased significantly to 8.71 TTM, indicating high leverage and potential financial risk. Return on equity improved to 10.85% TTM, showing better utilization of equity. The equity ratio stands at 63.85%, suggesting a stable capital structure despite high debt levels.

Cash Flow

Liberty Broadband's free cash flow growth rate is negative at -59.50% TTM, indicating cash flow challenges. The operating cash flow to net income ratio is low at 0.32 TTM, suggesting that net income is not translating effectively into cash flow. The free cash flow to net income ratio is negative, highlighting potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.05B	1.02B	981.00M	920.98M	988.00M	50.71M
Gross Profit	823.00M	552.00M	736.00M	639.98M	659.00M	50.65M
EBITDA	1.58B	1.48B	1.32B	290.00M	264.00M	671.20M
Net Income	1.08B	869.00M	688.00M	1.26B	732.00M	398.00M
Balance Sheet
Total Assets	16.59B	16.69B	15.64B	15.14B	16.97B	21.37B
Cash, Cash Equivalents and Short-Term Investments	180.00M	163.00M	158.00M	375.00M	191.00M	1.42B
Total Debt	3.14B	3.83B	3.82B	3.89B	3.85B	4.91B
Total Liabilities	6.18B	6.88B	6.62B	6.64B	6.83B	7.86B
Stockholders Equity	10.40B	9.79B	9.00B	8.48B	10.13B	13.50B
Cash Flow
Free Cash Flow	-49.00M	-143.00M	-206.00M	-212.00M	-131.00M	-97.56M
Operating Cash Flow	194.00M	104.00M	16.00M	-56.00M	3.00M	-95.74M
Investing Cash Flow	645.00M	130.00M	150.00M	3.05B	4.06B	575.51M
Financing Cash Flow	-722.00M	-181.00M	-390.00M	-2.80B	-5.29B	903.80M

Liberty Broadband Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 60.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LBRDA, the sentiment is Negative. The current price of 60 is below the 20-day moving average (MA) of 60.73, below the 50-day MA of 71.50, and below the 200-day MA of 76.63, indicating a bearish trend. The MACD of -2.52 indicates Negative momentum. The RSI at 37.14 is Neutral, neither overbought nor oversold. The STOCH value of 48.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LBRDA.

Liberty Broadband Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TKC	81 Outperform	$4.70B	10.74	7.38%	5.91%	19.25%	5.69%
KT	72 Outperform	$8.87B	14.70	5.22%	3.04%	-1.56%	-18.33%
SKM	67 Neutral	$8.40B	11.70	8.49%	4.62%	-4.74%	-16.57%
LBRDA	62 Neutral	$8.68B	7.94	10.76%	―	7.24%	35.79%
Sector *	60 Neutral	$47.13B	4.38	-11.40%	4.21%	1.87%	-42.87%
LUMN	54 Neutral	$5.25B	―	-78.94%	―	-6.50%	43.47%
FYBR	48 Neutral	$9.34B	―	-7.82%	―	4.15%	-311.82%

Liberty Broadband Corporate Events

Liberty Broadband Announces Upcoming Shareholder Q&A Session

On July 15, 2025, Liberty Broadband Corporation announced an upcoming quarterly Q&A session for shareholders and analysts, scheduled for August 7th, following GCI Liberty Inc.’s second quarter earnings conference call. This session will provide an opportunity to discuss the financial performance and outlook of both Liberty Broadband and GCI Liberty, potentially impacting stakeholder insights and market positioning.

Liberty Broadband Completes Spin-Off of GCI Liberty

On July 14, 2025, Liberty Broadband Corporation completed the spin-off of its former subsidiary GCI Liberty, Inc., resulting in GCI Liberty becoming an independent, publicly traded company. This strategic move included a distribution of GCI Liberty’s common stock to Liberty Broadband shareholders and the establishment of tax-related agreements between the two entities. Additionally, Martin E. Patterson was appointed as President and CEO of Liberty Broadband, succeeding John C. Malone, who will remain Chairman of the Board.

Liberty Broadband Plans GCI Liberty Spin-Off

On July 10, 2025, Ronald A. Duncan, President and CEO of GCI Liberty, Inc., a subsidiary of Liberty Broadband Corporation, participated in a fireside chat hosted by TD Securities. The discussion focused on the planned spin-off of GCI Liberty from Liberty Broadband, highlighting the financial performance and outlook of both entities.

Liberty Broadband Finalizes GCI Liberty Spin-Off

GCI Liberty, a subsidiary of Liberty Broadband Corporation, is set to become an independent publicly traded company following its separation from Liberty Broadband. This move is part of the acquisition of Liberty Broadband by Charter Communications. The SEC declared the registration statement effective on June 23, 2025, and a final prospectus was filed on July 1, 2025, detailing the distribution of shares and GCI Liberty’s business post-separation.

Liberty Broadband Announces GCI Liberty Spin-Off Agreement

On June 19, 2025, Liberty Broadband Corporation announced a Separation and Distribution Agreement to spin off its wholly owned subsidiary, GCI Liberty, Inc., into an independent publicly traded company. The spin-off, scheduled for completion on July 14, 2025, involves distributing shares of GCI Liberty’s common stock to Liberty Broadband shareholders. The spin-off is subject to regulatory approvals and solvency opinions, with trading of GCI Liberty’s stock expected to commence on July 15, 2025. This move positions GCI Liberty as an independent entity, potentially impacting its market operations and stakeholder interests.

Liberty Broadband Announces GCI Spin-Off Plans

On May 27, 2025, Liberty Broadband Corporation announced a planned spin-off of its GCI business into a new entity, GCI Liberty, Inc., with an Investor Conference Call scheduled for June 3, 2025, to discuss the financial performance and outlook of GCI Liberty. The spin-off is expected to occur in summer 2025, and the event will include a Q&A session with key executives, providing insights into the company’s future operations and potential impacts on stakeholders.