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Liberty Broadband Corp (LBRDK)
NASDAQ:LBRDK
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Liberty Broadband
(NASDAQ:LBRDK)
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Rating:52Neutral
Price Target:
$56.00
▲(6.59% Upside)
Action:ReiteratedDate:02/11/26
The score is held down primarily by weak financial performance signals (losses, negative operating cash flow, negative free cash flow, and higher reported leverage). Technicals are supportive but appear overbought, while valuation is constrained by a negative P/E. The latest earnings call provides a partial offset with improved operational metrics, liquidity actions, and constructive guidance, despite near-term CapEx and subscriber risks.
Positive Factors
Record Adjusted OIBDA and Revenue
Record revenue and adjusted OIBDA demonstrate durable operating leverage and improved margin conversion. Strong adjusted OIBDA enhances internal funding capacity for network investment and strategic initiatives, providing a sustained buffer against subscriber or price volatility over the medium term.
Improved Free Cash Flow & Liquidity
Material free cash flow generation plus a ~$300M rights offering materially improves liquidity and reduces near-term refinancing pressure. This durable flexibility supports planned capex, grant matching, and opportunistic investments without sole reliance on volatile operating cash flows.
Clear Network Upgrade Roadmap
A defined technology roadmap (DOCSIS 4.0, multi-Gbps targets, core upgrades) strengthens competitive positioning by enabling higher speeds and service tiers. Over the medium term this supports ARPU preservation, bundling with wireless, and improved customer retention versus competitors lacking similar upgrade plans.
Negative Factors
Weak Cash Generation Trends
Negative operating cash flow and persistently negative free cash flow indicate structural cash-generation weakness. Reliance on external funding for operations and capex reduces strategic optionality, raises funding cost sensitivity, and increases execution risk for multi-year network projects.
Large Increase in Reported Leverage
A material step-up in reported leverage elevates interest, covenant and refinancing risk. Higher debt burdens constrain capital allocation for upgrades or acquisitions, reduce buffer against revenue volatility and increase the company's sensitivity to credit market conditions over the medium term.
Declining Data Subscribers and Consumer Revenue Pressure
Ongoing declines in data subscribers and consumer revenue from video exits and substitution undermine scale economics. Persistent subscriber erosion pressures ARPU and margin sustainability, making it harder to realize returns on fixed network investments without successful upsell or diversification.
Liberty Broadband (LBRDK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.74B
Dividend YieldN/A
Average Volume (3M)1.14M
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)-22.11
Shares Outstanding124,856,050
10 Day Avg. Volume998,080
30 Day Avg. Volume1,142,043
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 ConsensusModerate Buy
Number of Analyst Covering0
EPS Forecast (FY)5.44
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 significant ownership stake in Charter Communications, which operates the Spectrum brand. The company's primary revenue streams include subscription fees from high-speed internet services, cable television services, and related telecommunication services. Additionally, Liberty Broadband benefits from advertising revenue generated by Charter's cable operations and from partnerships with content providers that enhance its service offerings. The growth in demand for broadband services, particularly in underserved areas, and the expansion of Charter's customer base contribute to Liberty Broadband's earnings, as does its strategy of investing in technology and infrastructure to improve service quality and customer satisfaction.
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 highlights a strong financial year with record revenue and adjusted OIBDA, meaningfully higher free cash flow, successful capital raise (~$300M rights offering), wireless subscriber momentum and clear network upgrade plans (DOCSIS 4.0, 2.5–5 Gbps targets). Offsets include a decline in data subscribers (–3%), consumer revenue pressure from video exit and data losses (–2%), near-term CapEx peaking in 2026 (~$290M) that will depress free cash flow next year, operational disruptions from fiber breaks and weather, and uncertainty around final BEAD funding timing. Overall, the positives (record profitability, cash generation, strategic funding and technology roadmap) outweigh the operational and timing risks.Q4-2025 Updates
Positive Updates
Record Revenue and Adjusted OIBDA
Reported record full-year revenue of $1.0 billion (up 3% YoY) and record adjusted OIBDA of $403 million (up 12% YoY). Fourth-quarter revenue was $262 million (flat YoY) and adjusted OIBDA was $90 million (up 7% YoY).
Strong Free Cash Flow and Liquid Balance Sheet
Generated $146 million in free cash flow for the year (up over 70% YoY). Consolidated cash, cash equivalents and restricted cash totaled $429 million (inclusive of ~ $300 million net proceeds from a fully subscribed rights offering).
Rights Offering Completed to Bolster Flexibility
Completed a fully subscribed rights offering yielding ~ $300 million in net proceeds to be used for general corporate purposes and potential strategic acquisitions/investments.
Wireless Subscriber Momentum and Convergence Gains
Consumer wireless lines grew ~2% YoY to 199,000 lines; total wireless lines ended at 207,500 (including 8,500 business lines). Peak postpaid reached ~165,400 lines. Bundling increased: ~62% of postpaid lines sold as part of a bundle (up from 57% in 2024); ~40% of broadband customers have one or more wireless lines.
Business Segment Growth and High Margins
Business revenue grew 7% for the year (1% in Q4). Business gross margin improved to 80.1% for the year (78.3% in Q4), driven by revenue growth and lower direct costs.
Network Investment and Technology Roadmap
Advancing DOCSIS 4.0-capable HFC upgrades, offering 2.5 Gbps where fiber middle mile exists, upgrading Anchorage core to a 1.8 GHz plant, and planning broader rollouts to reach 5 Gbps and beyond to improve speeds and reliability.
Completed Key Buildouts and Rural Expansion Progress
Completed the iHUC one-net fiber build that brings 2.5 Gbps service to Delta area; remain on track to complete Alaska plan build-out commitments in 2026 and extend the Alaska plan with the new Alaska Connect fund to 2034.
Provisional BEAD Award Could Offset CapEx
Provisionally awarded approximately $120 million in BEAD funds by the State of Alaska (subject to NTIA approval), which could offset capital costs for expansion into unserved locations.
Negative Updates
Decline in Data Subscribers
Data subscribers declined ~3% YoY to 151,200 (down 4,500 during the year and down 1,200 in Q4). Causes cited include wireless substitution, limited competitive responses (e.g., Starlink), and customer loss from a third-party fiber break; customer recovery in impacted areas has been slow.
Consumer Revenue Pressure from Video Exit and Data Losses
Consumer revenue declined ~2% for the year (and in the fourth quarter) primarily due to the exit from the video business and the decline in data subscribers, partially offset by wireless growth.
Operational Disruptions from Fiber Breaks and Weather Events
Experienced two late-2025 fiber breaks (Dutch Harbor repaired in under two weeks; Dearing expected to be restored in summer) and Typhoon Helong affected two villages (service restored in under four months). Repair costs are expected in the low single-digit millions and there was a small revenue overhang in January.
Near-Term CapEx Peak and Free Cash Flow Pressure
CapEx net of grant proceeds was $224 million in 2025; management expects 2026 CapEx of ~ $290 million (including $20 million carryover), representing a near-term peak that will reduce free cash flow in 2026 versus 2025.
Uncertainty Around BEAD Timing and Final Awards
The provisional ~$120 million BEAD award remains subject to NTIA approval and there is substantial uncertainty about the timing and final distribution, which creates execution/timing risk for capital recovery.
Erosion in Prepaid and Lifeline Segments
Management noted continued slow erosion in prepaid and government-subsidized lifeline segments, which partially offsets postpaid wireless growth and contributed to modest consumer churn.
Company Guidance
Management guided that 2026 should be a stable year with a peak CapEx of approximately $290 million (including ~$20 million carryover from 2025) before stepping down toward historical CapEx of 15–20% of revenue, which will drive proportionately lower free cash flow versus 2025’s $146 million (up >70% YoY); 2025 results referenced on the call included $1.0 billion of revenue (up 3%), record adjusted OIBDA of $403 million (up 12%) and Q4 adjusted OIBDA of $90 million (up 7%), consumer gross margin of 70.7% for the year (69.7% in Q4) and business gross margin of 80.1% for the year (78.3% in Q4). At year-end the company had consolidated cash, cash equivalents and restricted cash of $429 million (inclusive of ~ $300 million net proceeds from a fully subscribed rights offering), total principal debt of ~ $1.0 billion, net leverage per the credit agreement of 2.3x (consolidated net leverage 1.6x), and $377 million of undrawn credit capacity net of letters of credit. Operational priorities and guidance include completing Alaska plan build-outs in 2026, significant network investment (2.5 Gbps service where fiber middle mile exists, Anchorage core upgrades to a 1.8 GHz plant, and scaled DOCSIS 4.0‑capable HFC rollouts to 5 Gbps+), continued rural wireless build and convergence initiatives, expected repair costs from recent fiber breaks in the low single‑digit millions with Dearing service restored in summer, a provisional BEAD award of ~ $120 million (subject to NTIA timing/approval), and subscriber metrics to note: 199,000 consumer wireless lines (207,500 total wireless including 8,500 business), consumer wireless growth of 2% YoY with 3,500 consumer net adds (6,700 postpaid adds) and a peak postpaid base of 165,400, bundling at ~62% of postpaid lines (up from 57%) and ~40% of broadband customers having one or more wireless lines, while data subs declined 3% to 151,200 (down 4,500 Y/Y and 1,200 in Q4).Liberty Broadband Financial Statement Overview
Summary
Overall financial quality screens weak: the provided scores highlight a sharp 2025 downshift with revenue down ~28%, a swing to sizable losses, negative operating cash flow, persistently negative free cash flow, and a large reported increase in debt—raising volatility and funding risk versus prior years.Income Statement
Results deteriorated sharply in 2025: revenue fell ~28% year over year (to $566M) and profitability swung to sizable losses (net loss of $533M, EBITDA negative). While 2021–2024 showed generally high reported net profit margins and modest revenue growth, the latest year reflects a clear break in trend and materially weaker operating performance.32
Negative
Balance Sheet
Leverage appears manageable through 2021–2024 with debt-to-equity roughly ~0.38–0.46, but 2025 shows a dramatic step-change in the capital structure (debt of ~$94.0B against equity/assets of ~$154.2B), raising financial risk. Return on equity also turned slightly negative in 2025, indicating weaker capital productivity alongside the earnings decline.41
Neutral
Cash Flow
Cash generation is inconsistent and recently weak: operating cash flow turned negative in 2025 (-$327M) after being modestly positive in 2024 (+$104M). Free cash flow is negative across all shown years (including a steep decline in 2025), suggesting ongoing cash burn and reliance on balance-sheet flexibility or other funding sources rather than internally generated cash.28
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
52.54
Price Trends
49.34
Positive
51.03
Positive
63.44
Negative
Market Momentum
1.57
Positive
52.68
Neutral
20.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LBRDK, the sentiment is Neutral. The current price of 52.54 is above the 20-day moving average (MA) of 52.53, above the 50-day MA of 49.34, and below the 200-day MA of 63.44, indicating a neutral trend. The MACD of 1.57 indicates Positive momentum. The RSI at 52.68 is Neutral, neither overbought nor oversold. The STOCH value of 20.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
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% | |
52 Neutral | $7.74B | -2.82 | 10.76% | ― | -21.24% | 0.82% |
* Communication Services Sector Average
LBRDK
Liberty Broadband
52.54
-21.87
-29.39%
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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.