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Liberty Broadband Corp (LBRDK)
NASDAQ:LBRDK
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Liberty Broadband
(NASDAQ:LBRDK)
Rating:64Neutral
Price Target:
$66.00
▲(9.02% Upside)
Positive Factors
Financial Performance
Better than expected 4Q results from Liberty’s relatively small 'GCI' Alaskan cable/telco assets.
Strategic Transactions
The firm’s announced merger with BUY rated CHTR.
Valuation
A reduction in the public NAV discount from 15% to 8% led to a material $40 increase in the LBRDK target price to $145.
Negative Factors
Market Risks
Market volatility can drive a widening of the NAV gap, posing a risk to investors.
Shareholder Risks
Liberty shareholders have all the risks of Charter shareholders, including the possibility that a deal with CHTR could occur at a lower than expected valuation or may not happen.
Liberty Broadband (LBRDK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.60B
Dividend YieldN/A
Average Volume (3M)1.85M
Price to Earnings (P/E)8.0
Beta (1Y)0.87
Revenue Growth7.24%
EPS Growth35.79%
CountryUS
Employees1,900
SectorCommunication Services
Sector Strength96
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.94
Shares Outstanding124,847,510
10 Day Avg. Volume927,830
30 Day Avg. Volume1,849,997
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap2.00
Enterprise Value/Revenue16.39
Enterprise Value/Gross Profit20.95
Enterprise Value/Ebitda10.92
Forecast
1Y Price Target
$66.00Price Target Upside9.02% Upside
Rating ConsensusHold
Number of Analyst Covering1
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 subscription fees for its cable television and broadband internet services provided by Charter Communications. The company earns money from residential customers who subscribe to various tiers of internet and cable packages, as well as from commercial clients requiring more robust service solutions. Key revenue streams include monthly service fees, installation and equipment rental fees, and advertising revenues from its cable television operations. Additionally, Liberty Broadband benefits from strategic partnerships and investments in emerging technology companies and media ventures, which can contribute to its overall earnings and growth prospects.
Liberty Broadband Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Oct 31, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements including record-breaking performance for GCI and strategic advancements in Alaska's connectivity. However, service disruptions and declines in consumer subscriptions were noted as challenges.Q1-2025 Updates
Positive Updates
Best Quarter Ever for GCI
The first quarter of 2025 was GCI's best quarter ever, with revenue of $266 million and adjusted OIBDA of $111 million, up 9% and 23% respectively over the prior year. Adjusted OIBDA margin was 42%.
Successful Connection of Bethel, Alaska
On April 15, GCI completed a major milestone by connecting Bethel, the largest community in Western Alaska, with fiber all the way from Anchorage. Bethel residents will have access to a 5G wireless network and 2.5 gigabits unlimited broadband service.
Refinancing and Liquidity Enhancements
GCI refinanced its senior credit facility with a $450 million revolver and a $300 million Term Loan A, extending maturities at attractive rates. GCI's leverage was 2.8 times, with $292 million of undrawn capacity.
Continued Growth in Enterprise Services
Growth was driven primarily by data, revenue, and business, benefiting from the strong upgrade cycle in school and healthcare services in rural Alaska.
Negative Updates
Service Disruption Due to Fiber Break
On January 18th, the Quintillion Fiber under the ice in the Beaufort Sea failed for the second time in three years, disrupting traffic for GCI's consumer and enterprise customers. Consumer services have been partially restored but are expected to remain degraded until the fiber break is repaired in late summer.
Decline in Consumer Subscriptions
GCI Consumer experienced a decline of 400 wireless subscribers and a decline of 5,000 cable modem customers. The decline in wireless was due to postpaid growth being offset by losses in prepaid and lifeline.
Company Guidance
During the Liberty Broadband 2025 Q1 Earnings Call, guidance highlighted several key metrics and strategic initiatives. Liberty Broadband reported consolidated cash and restricted cash of $565 million, with $338 million in restricted cash earmarked for debt service. The Charter and Liberty Broadband transaction, with a fixed exchange ratio, is expected to close by June 30, 2027. GCI's Q1 revenue reached $266 million, with adjusted OIBDA at $111 million, marking increases of 9% and 23% respectively compared to the previous year. GCI's adjusted OIBDA margin stood at 42%, driven by growth in data revenue from healthcare and education services in rural Alaska. The company also experienced a decline of 400 wireless subscribers and a reduction of 5,000 cable modem customers, attributed to the termination of the ACP program. GCI's net CapEx for 2025 is projected at $250 million, focusing on connectivity investments in Alaska, with historical CapEx typically representing 15% to 20% of revenue. Additionally, GCI recently connected Bethel with fiber from Anchorage, enabling access to advanced broadband services.Liberty Broadband Financial Statement Overview
Summary
Liberty Broadband shows strong revenue growth and profitability margins, but the high leverage and weak cash flow performance are significant concerns. The company needs to address its debt levels and improve cash flow generation to ensure long-term financial stability.Income Statement
Liberty Broadband shows strong revenue growth with a TTM revenue growth rate of 1.45%. The gross profit margin is robust at 78.23%, indicating efficient cost management. However, the net profit margin is unusually high at 103.04%, suggesting potential one-time gains or accounting adjustments. EBIT and EBITDA margins are also strong, reflecting operational efficiency.75
Positive
Balance Sheet
The company has a high debt-to-equity ratio of 8.71 in the TTM, indicating significant leverage, which could pose risks if not managed properly. Return on equity is moderate at 10.85%, showing decent profitability relative to shareholder equity. The equity ratio is not calculated, but the high leverage is a concern.60
Neutral
Cash Flow
Cash flow performance is weak with negative free cash flow and a free cash flow growth rate of -59.50% in the TTM. The operating cash flow to net income ratio is low at 0.32, indicating that net income is not fully translating into cash flow. The negative free cash flow to net income ratio suggests cash flow challenges.45
Neutral
| 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
Negative
60.54
Price Trends
72.91
Negative
79.07
Negative
77.41
Negative
Market Momentum
-2.89
Negative
34.90
Neutral
18.55
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LBRDK, the sentiment is Negative. The current price of 60.54 is below the 20-day moving average (MA) of 60.81, below the 50-day MA of 72.91, and below the 200-day MA of 77.41, indicating a bearish trend. The MACD of -2.89 indicates Negative momentum. The RSI at 34.90 is Neutral, neither overbought nor oversold. The STOCH value of 18.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LBRDK.
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
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $4.76B | 10.96 | 7.38% | 5.96% | 19.25% | 5.69% | |
72 Outperform | $9.29B | 15.10 | 5.22% | 3.00% | -1.22% | -17.07% | |
67 Neutral | $8.40B | 11.77 | 8.49% | 4.61% | -4.74% | -16.57% | |
64 Neutral | $8.60B | 7.99 | 10.76% | ― | 7.24% | 35.79% | |
60 Neutral | $46.60B | 4.15 | -11.40% | 4.15% | 1.85% | -42.71% | |
54 Neutral | $4.87B | ― | -78.94% | ― | -6.50% | 43.47% | |
48 Neutral | $9.33B | ― | -7.82% | ― | 4.15% | -311.82% |
* Communication Services Sector Average
Performance Comparison
LBRDK
Liberty Broadband
60.54
4.78
8.57%
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5.63
0.19
3.49%
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20.00
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SKM
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21.47
-2.51
-10.47%
TKC
Turkcell Iletisim
5.48
-1.38
-20.12%
FYBR
Frontier Communications Parent
37.32
1.29
3.58%
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.