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Liberty Broadband Corp (LBRDA)
NASDAQ:LBRDA
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Liberty Broadband
(NASDAQ:LBRDA)
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Rating:50Neutral
Price Target:
$55.00
▲(12.80% Upside)
Action:ReiteratedDate:02/11/26
The score is held back primarily by weak and inconsistent cash generation (negative free cash flow across the years shown) and a sharp 2025 financial deterioration with increased leverage risk. Offsetting this, the latest earnings call was constructive on liquidity and operating performance (record OIBDA and improved free cash flow) and technicals show improving intermediate-term momentum, though near-term indicators look stretched and valuation is difficult to support with a negative P/E.
Positive Factors
Improving profitability and cash flow
Record adjusted OIBDA and a >70% YoY increase in free cash flow indicate the core operations are generating stronger margins and cash conversion. That improvement provides durable support for funding network investment, servicing obligations, and reducing reliance on external financing over the medium term.
Strengthened liquidity via capital raise
A successful $300M rights offering materially bolstered consolidated cash to $429M, creating a multi-quarter liquidity buffer. This increases financial flexibility to fund peak 2026 CapEx, pursue strategic opportunities, and manage near-term maturities without immediate reliance on volatile market financing.
Strategic network upgrades and funding potential
Investments in DOCSIS 4.0-capable HFC and wireless upgrades, plus provisional BEAD funding, position the company to deliver higher speeds and expand rural footprint. These structural upgrades improve competitive positioning, support higher ARPU offerings, and can lower long-term unit costs once deployed and adopted.
Negative Factors
Consistently weak cash generation
Persistent negative free cash flow and intermittent negative operating cash flow indicate profits have not reliably converted to cash. Over 2–6 months this raises sustainability concerns: ongoing reliance on external capital, constrained ability to self-fund CapEx, and less room to absorb operational shocks or pursue opportunistic investments.
Sharp 2025 revenue and earnings deterioration
A steep revenue decline and a near-total swing to negative margins in 2025 signal structural stress—driven by video exit, subscriber losses and outages—that reduces scale economies and forecasting reliability. Such volatility undermines durable earnings power and complicates long-term investment and capital allocation decisions.
Elevated leverage after 2025 step-up
A marked debt step-up and higher debt-to-equity raise balance-sheet risk, especially given weak cash conversion. Even with reported net leverage metrics (management noted ~2.3x per agreement), elevated indebtedness limits flexibility, increases refinancing and covenant risk, and raises the cost of funding during CapEx ramp.
Liberty Broadband (LBRDA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.74B
Dividend YieldN/A
Average Volume (3M)109.70K
Price to Earnings (P/E)―
Beta (1Y)0.73
Revenue Growth-21.24%
EPS Growth0.82%
CountryUS
Employees1,900
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)1.64
Shares Outstanding18,254,690
10 Day Avg. Volume132,440
30 Day Avg. Volume109,697
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.21
Price to Sales (P/S)0.00
P/FCF Ratio-21.11
Enterprise Value/Market Cap1.19
Enterprise Value/Revenue17.49
Enterprise Value/Gross Profit22.43
Enterprise Value/Ebitda-2.56
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)7.19
Revenue Forecast (FY)$1.10B
Liberty Broadband Business Overview & Revenue Model
Company DescriptionLiberty 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 MoneyLiberty Broadband generates revenue primarily through its equity interest in Charter Communications, a leading provider of cable services. The company benefits financially by receiving dividends and distributions from Charter, which are derived from its subscription-based revenue model. Charter earns money through monthly fees charged to customers for cable television, high-speed internet, and phone services. The growing demand for broadband services, particularly in residential and business sectors, contributes significantly to Charter's earnings, which in turn enhances Liberty Broadband's revenue. The company's financial performance is also influenced by strategic partnerships and market dynamics in the telecommunications industry, allowing it to capitalize on emerging trends and technological advancements.
Liberty Broadband Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 01, 2026
Earnings Call Sentiment Positive
The call highlighted a number of significant financial and operational achievements — record revenue and adjusted OIBDA, materially higher free cash flow, a successful $300 million rights offering, business revenue growth, and clear progress on network upgrades and rural buildouts. Offsetting these positives are pressures from declining data subscribers and consumer revenue (driven by the exit of video and wireless substitution), episodic fiber outages with associated repair costs and slow customer win-back, dependence on promotions for postpaid wireless growth, and a near-term increase in CapEx that will reduce free cash flow in 2026. On balance, the positive results, strong cash position, successful capital raise, and clear strategic roadmap for DOCSIS 4.0/5G deployments and Alaska buildouts outweigh the operational and timing challenges.Q4-2025 Updates
Positive Updates
Record Annual Revenue
Reported total revenue of $1.0 billion for the fiscal year, a 3% increase year-over-year, and flat revenue of $262 million in the fourth quarter versus the prior year quarter.
Record Adjusted OIBDA
Adjusted OIBDA reached a record $403 million for the full year, up 12% year-over-year; fourth-quarter adjusted OIBDA was $90 million, up 7% year-over-year.
Material Free Cash Flow Improvement
Generated $146 million of free cash flow for the full year, increasing by over 70% compared to 2024, driven by record financial growth and positive working capital swings.
Successful Capital Raise
Completed a fully subscribed rights offering, producing approximately $300 million in net proceeds; year-end consolidated cash, cash equivalents, and restricted cash totaled $429 million (inclusive of offering proceeds).
Business Segment Strength
Business revenue grew 7% for the full year and 1% in the fourth quarter; business gross margin increased to 80.1% for the year (78.3% in Q4), supported by a strong upgrade cycle.
Wireless & Convergence Progress
Consumer wireless lines grew ~2% year-over-year to 199,000 consumer lines (207,500 total wireless lines including 8,500 business lines). Postpaid lines peaked at 165,400 and 62% of postpaid lines are sold as part of a bundle (up from 57% at end of 2024).
Network Upgrades & Service Expansion
Progressing DOCSIS 4.0-capable HFC and wireless upgrades: offering 2.5 Gbps where fiber middle mile exists, upgrading Anchorage core (1.8 GHz plant, reduced node sizes) with plans to scale to 5 Gbps and beyond.
Buildout & BEAD Funding Potential
Completed iHUC one net network build-out to deliver 2.5 Gbps to Delta; provisionally awarded approximately $120 million in BEAD funds by the State of Alaska (subject to NTIA approval) to offset capital costs for expansion.
Operational Resilience
Rapid restoration after outages: Dutch Harbor fiber break repaired in under two weeks; Typhoon Helong service to two villages fully restored in under four months; fiber on a third-party network was fully restored during 2025.
Negative Updates
Decline in Data Subscribers
Data subscribers fell 3% year-over-year to 151,200, losing 4,500 data subscribers in the year and 1,200 in the fourth quarter, attributed to wireless substitution, competition from Starlink and others, and impacts from a third-party fiber break.
Consumer Revenue Pressure
Consumer revenue declined 2% for the full year, driven largely by the shutdown of the video business and data subscriber losses, partially offset by wireless revenue growth and increased federal wireless subsidies.
Service Interruptions and Repair Costs
Experienced two December fiber breaks (Dutch Harbor and Dearing); while Dutch Harbor was repaired quickly, Dearing restoration is expected in summer after ice-out and repair costs are projected in the low single-digit millions.
Reliance on Promotions for Postpaid Growth
Postpaid growth was materially driven by promotional activity (an unlimited test drive and a twelve-month free promotion); while early retention is reported as strong, growth has been promotion-dependent and some prepaid/lifeline erosion persists.
Timing and Uncertainty of BEAD Funding
The ~$120 million provisional BEAD award is subject to NTIA approval and state negotiations, creating uncertainty around the timing and ultimate amount of funding that will offset expansion capital costs.
Elevated 2026 CapEx and Near-Term Free Cash Flow Impact
Expect 2026 capital expenditures of approximately $290 million (including $20 million carryover), representing a peak year of spend; the higher CapEx is expected to drive proportionately lower free cash flow in 2026 versus 2025.
Leverage and Debt Position
Total principal amount of debt is approximately $1.0 billion with net leverage (per credit agreement) of 2.3x; consolidated net leverage was 1.6x after accounting for parent cash and non-voting preferred stock—positions to monitor as CapEx ramps.
Slow Customer Win-Back Post-Outage
Although third-party fiber service was restored, management noted that winning back customers in service-impacted areas has been slow, indicating potential churn and longer-term revenue recovery challenges in certain markets.
Company Guidance
Management guided to a “stable” 2026 while outlining a capital- and liquidity-focused plan: after reporting FY2025 revenue of about $1.0 billion (+3%), record adjusted OIBDA of $403 million (+12%) and Q4 adjusted OIBDA of $90 million (+7%), and generating $146 million of free cash flow (up >70% YoY), the company finished the year with $429 million of consolidated cash (including ~ $300 million net proceeds from a fully subscribed rights offering), ~ $1.0 billion of debt, net leverage of 2.3x (consolidated net leverage 1.6x), and $377 million of undrawn revolver capacity; management expects 2026 CapEx of ~ $290 million (including ~$20 million carryover from 2025) — a peak year after FY25 CapEx (net of grants) of $224 million — with long‑term CapEx returning to ~15–20% of revenue, which will make 2026 free cash flow proportionately lower, while investing in network upgrades (2.5 Gbps where fiber middle mile, 1.8 GHz core and DOCSIS 4.0‑capable HFC to scale toward 5 Gbps), completing Alaska plan build‑outs, pursuing strategic uses of the $300M proceeds, and expecting modest repair costs in the low single‑digit millions; operational metrics cited include 199,000 consumer wireless lines (207,500 total wireless lines including 8,500 business), 151,200 data subscribers (‑3% YoY; -4,500 YTD, -1,200 Q4), consumer gross margin 70.7% (FY) and business gross margin 80.1% (FY), and a provisional ~$120 million BEAD award (subject to NTIA approval).Liberty Broadband Financial Statement Overview
Summary
Financial statements show elevated risk: the income statement deteriorated sharply in 2025 (material revenue decline and a large net loss), cash flow quality is weak with negative operating cash flow in multiple years and negative free cash flow across all years shown, and leverage increased notably in 2025 versus prior years.Income Statement
Results deteriorated sharply in 2025, with revenue down materially (-28.4% YoY) and profitability swinging to a large net loss (net margin ~-94%) versus strong reported profits in 2021–2024. While earlier years showed healthy gross profitability (~71%–75%) and generally positive EBITDA margins (~27%–31%), the sudden 2025 collapse and volatility in earnings quality over time weigh heavily on the income statement profile.34
Negative
Balance Sheet
Leverage was moderate and fairly stable through 2021–2024 (debt-to-equity roughly ~0.38–0.46), supporting a reasonably balanced capital structure. However, 2025 shows an extreme step-up in total debt ($94.0B) and a higher debt-to-equity (~0.61), alongside negative returns on equity, indicating increased balance-sheet risk and reduced profitability support.46
Neutral
Cash Flow
Cash generation is weak and inconsistent: operating cash flow is negative in multiple years (2020, 2022, 2025) and free cash flow is negative every year shown, including a steep deterioration in 2025 (free cash flow growth ~-471.6%). Even when net income was positive (2021–2024), free cash flow remained negative, suggesting profits have not been translating into cash and raising sustainability concerns.22
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 0.00 | 1.02B | 981.00M | 975.00M | 988.00M |
| Gross Profit | 0.00 | 759.00M | 736.00M | 722.00M | 706.00M |
| EBITDA | -3.14B | 299.00M | 303.00M | 290.00M | 264.00M |
| Net Income | -2.68B | 869.00M | 688.00M | 1.26B | 732.00M |
Balance Sheet | |||||
| Total Assets | 8.83B | 16.69B | 15.64B | 15.14B | 16.97B |
| Cash, Cash Equivalents and Short-Term Investments | 57.00M | 163.00M | 158.00M | 375.00M | 191.00M |
| Total Debt | 1.75B | 3.83B | 3.82B | 3.89B | 3.85B |
| Total Liabilities | 3.13B | 6.88B | 6.62B | 6.64B | 6.83B |
| Stockholders Equity | 5.70B | 9.79B | 9.00B | 8.48B | 10.13B |
Cash Flow | |||||
| Free Cash Flow | -327.00M | -143.00M | -206.00M | -237.00M | -131.00M |
| Operating Cash Flow | -327.00M | 104.00M | 16.00M | -56.00M | 3.00M |
| Investing Cash Flow | 1.21B | 130.00M | 150.00M | 3.05B | 4.06B |
| Financing Cash Flow | -940.00M | -181.00M | -390.00M | -2.80B | -5.29B |
Liberty Broadband Technical Analysis
Neutral
48.76
Price Trends
49.29
Positive
50.76
Positive
62.96
Negative
Market Momentum
1.43
Positive
54.52
Neutral
22.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LBRDA, the sentiment is Neutral. The current price of 48.76 is below the 20-day moving average (MA) of 52.93, below the 50-day MA of 49.29, and below the 200-day MA of 62.96, indicating a neutral trend. The MACD of 1.43 indicates Positive momentum. The RSI at 54.52 is Neutral, neither overbought nor oversold. The STOCH value of 22.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LBRDA.
Liberty Broadband Risk Analysis
Liberty Broadband disclosed 9 risk factors in its most recent earnings report. Liberty Broadband reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Liberty Broadband Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $6.05B | 14.83 | 7.60% | 5.57% | 19.02% | 9.26% | |
68 Neutral | $11.14B | 9.19 | 10.38% | 4.13% | 0.63% | -21.51% | |
61 Neutral | $12.00B | 45.66 | 3.10% | 5.02% | -8.16% | -52.52% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
55 Neutral | $7.63B | -4.06 | ― | ― | -4.56% | 23.46% | |
50 Neutral | $7.74B | -2.81 | 12.74% | ― | -21.24% | 0.82% |
* Communication Services Sector Average
LBRDA
Liberty Broadband
52.95
-22.39
-29.72%
LUMN
Lumen Technologies
7.04
2.53
56.10%
KT
KT
23.97
6.76
39.28%
SKM
Sk Telecom
30.95
8.71
39.16%
TKC
Turkcell Iletisim
6.87
-0.29
-4.10%
Liberty Broadband Corporate Events
Business Operations and StrategyFinancial Disclosures
Liberty Broadband Schedules Shareholder Q&A After Earnings Call
Neutral
Jan 14, 2026
On January 13, 2026, Liberty Broadband Corporation announced it will host a brief quarterly Q&A session for shareholders and analysts following GCI Liberty, Inc.’s fourth-quarter earnings conference call, scheduled for Wednesday, February 11 at 11:15 a.m. Eastern Time. Management is expected to address questions on the financial performance and outlook of both Liberty Broadband and GCI Liberty during the call, underscoring the company’s efforts to enhance transparency and engagement with the investment community through regular access to leadership and webcast and replay options for participants.
The most recent analyst rating on (LBRDA) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on Liberty Broadband stock, see the LBRDA Stock Forecast page.
Dividends
Liberty Broadband Declares Quarterly Cash Dividend
Neutral
Dec 16, 2025
On December 16, 2025, Liberty Broadband Corporation announced that its board of directors declared a quarterly cash dividend for its Series A Cumulative Redeemable Preferred Stock. The dividend, amounting to $0.43750001 per share, will be payable on January 15, 2026, to stockholders of record as of December 31, 2025.
The most recent analyst rating on (LBRDA) stock is a Hold with a $55.00 price target. To see the full list of analyst forecasts on Liberty Broadband stock, see the LBRDA Stock Forecast page.
Business Operations and StrategyFinancial DisclosuresShareholder Meetings
Liberty Broadband Chairman Interview Airs on CNBC
Neutral
Nov 19, 2025
Liberty Broadband Corporation announced that an interview with its Chairman, John C. Malone, will be aired on CNBC on November 20, 2025, coinciding with Liberty Media Corporation’s annual Investor Meeting. The interview may include insights into the company’s financial performance and future outlook, potentially impacting stakeholders’ perspectives on the company’s strategic direction.
The most recent analyst rating on (LBRDA) stock is a Hold with a $55.00 price target. To see the full list of analyst forecasts on Liberty Broadband stock, see the LBRDA Stock Forecast page.
Shareholder Meetings
Liberty Broadband Investor Meeting Schedule Update
Neutral
Nov 14, 2025
On November 13, 2025, Liberty Media Corporation announced a change in the start time for its annual Investor Meeting scheduled for November 20, 2025. The webcast presentations will now begin at 9:00am P.T. and end at 11:30am P.T., with discussions potentially involving Liberty Broadband Corporation and GCI Liberty, Inc.
The most recent analyst rating on (LBRDA) stock is a Hold with a $55.00 price target. To see the full list of analyst forecasts on Liberty Broadband stock, see the LBRDA Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.