Liberty Broadband (LBRDA) AI Stock Analysis

• Market Cap: $8.90B
• Dividend Yield: N/A
• Average Volume (3M): 180.33K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.87
• Revenue Growth: 7.24%
• EPS Growth: 35.79%
• Country: US
• Employees: 1,900
• Sector: Communication Services
• Sector Strength: 91
• Industry: Telecommunications Services
• EPS (TTM): 0.94
• Shares Outstanding: 18,254,690
• 10 Day Avg. Volume: 192,221
• 30 Day Avg. Volume: 180,327
• 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: 1.93
• Enterprise Value/Revenue: 16.31
• Enterprise Value/Gross Profit: 20.85
• Enterprise Value/Ebitda: 10.87
• 1Y Price Target: $65.00
• Price Target Upside: 6.63% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 62 Neutral
• Price Target: $65.00 ▲(6.63% 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

Economic Resilience

The Alaskan economy generally outperforms in any recession, and Alaska could benefit from new mineral and rare earth exploration and development.

Stock Buybacks

Charter is undertaking approximately $100M in monthly purchases of its stock from Liberty Broadband to ensure the repayment of $2.6B in Liberty Broadband corporate debt.

Negative Factors

Energy and Healthcare Sensitivity

There is sensitivity to energy prices in Alaska, and potential changes to Alaskan healthcare user subsidies could materially affect GCI’s results.

Price Target Adjustment

The price target for Liberty Broadband is being lowered to $115 from $130, reflecting current equity market conditions.

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 profitability with a net profit margin of 86.4% TTM and stable financial position with a robust equity ratio of 59.1%. However, negative free cash flow and low cash generation relative to earnings pose liquidity concerns.

Income Statement

Liberty Broadband shows a strong net profit margin of 86.4% TTM, and a commendable revenue growth rate of 2.1% from the previous year. The gross profit margin of 67.2% TTM highlights efficient cost management. However, the EBIT margin of 10.3% indicates room for improvement in operational efficiency compared to industry standards.

Balance Sheet

The debt-to-equity ratio is stable at 0.39, showcasing a conservative leverage strategy. The equity ratio is robust at 59.1%, indicating financial stability. ROE is impressive at 8.9%, suggesting effective utilization of equity. Overall, the balance sheet is solid, reflecting a sound financial structure.

Cash Flow

Free cash flow remains negative at -$121 million TTM, limiting reinvestment capabilities. However, operating cash flow shows positive growth with a significant increase from the previous year. The operating cash flow to net income ratio of 0.15 indicates low cash generation relative to earnings, suggesting potential liquidity concerns.

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	183.00M	163.00M	158.00M	375.00M	191.00M	1.42B
Total Debt	92.33B	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	10.60B	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: 60.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 60.96 is below the 20-day moving average (MA) of 64.00, below the 50-day MA of 78.71, and below the 200-day MA of 78.36, indicating a bearish trend. The MACD of -5.84 indicates Negative momentum. The RSI at 30.66 is Neutral, neither overbought nor oversold. The STOCH value of 85.82 is Negative, 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
Sector *	66 Neutral	¥503.10B	16.55	1.07%	2.17%	6.46%	-14.78%
LBRDA	62 Neutral	$8.90B	8.04	10.76%	―	7.24%	35.79%
LBTYA	62 Neutral	$3.95B	―	-20.95%	―	3.53%	3.23%
LUMN	51 Neutral	$4.55B	―	-78.94%	―	-6.50%	43.47%
FYBR	48 Neutral	$9.29B	―	-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.

Liberty Broadband Appoints Derek Chang to Board

On May 22, 2025, Liberty Broadband Corporation announced the appointment of Derek Chang to its board of directors, expanding the board to a total of eight directors. Chang will serve as a Class I director with a term expiring in 2027. Additionally, the company declared a quarterly cash dividend of $0.43750001 per share for its Series A Cumulative Redeemable Preferred Stock, payable on July 15, 2025. These announcements may impact the company’s governance structure and provide financial returns to preferred stockholders.

Liberty Broadband Accelerates Acquisition by Charter Communications

On May 16, 2025, Liberty Broadband Corporation announced an update regarding its pending acquisition by Charter Communications, which will now occur alongside Charter’s combination with Cox Communications. Liberty Broadband has agreed to accelerate the closing of its acquisition by Charter and provide voting support for the Charter-Cox combination. The acquisition is contingent upon the completion of Liberty Broadband’s GCI business spin-off and other customary conditions.