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Liberty Global C (LBTYK)
NASDAQ:LBTYK
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Liberty Global C
(NASDAQ:LBTYK)
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Rating:58Neutral
Price Target:
$13.00
▲(14.94% Upside)
Action:ReiteratedDate:02/19/26
The score is held back mainly by weak and volatile profitability despite strong revenue rebound and solid free cash flow. Technicals are supportive with the stock above major moving averages, though overbought RSI adds caution. Valuation is unattractive/unclear due to a negative P/E, while the earnings call is moderately positive on strategic value-unlocking actions but tempered by softer 2026 operating guidance.
Positive Factors
Scale & cash-generative core
The company’s aggregate telecom scale (~$22B revenue, ~$8B EBITDA) provides a durable cash-generating base across multiple national operators. That diversified operating footprint supports steady subscription revenues, funding for network investment and resilience to country-specific shocks over the medium term.
Strong free cash flow
Consistent positive free cash flow (~$1.45B TTM, +21%) demonstrates robust cash conversion despite income statement volatility. This cash supports capital expenditure, deleveraging, targeted buybacks and funding for strategic deals, underpinning financial flexibility over the next 2–6 months.
Strategic transactions to unlock value
Announced M&A and structural actions (VodafoneZiggo stake deal, Ziggo/Telenet combination, Nexfibre expansion) create scale, cost and capex synergies and explicit NPV targets. These deals materially re-shape the portfolio and provide a clear, durable pathway to higher free cash flow and reduced group leverage by 2028.
Negative Factors
Severely negative profitability
Deeply negative margins (EBIT ~-103%, net ~-51% TTM) indicate large losses or non-recurring charges and weak earnings quality. If such profitability weakness persists it can erode equity, limit reinvestment capacity and strain long-term ability to fund network capex and distributions despite healthy revenue and FCF.
Near-term operational weak guidance
Operator-level guidance (VMO2, VodafoneZiggo, parts of the portfolio) points to mid-single-digit revenue and EBITDA declines in 2026 driven by competition and deliberate resilience investments. These structural near-term headwinds will depress cash flow and slow deleveraging or distributions in the medium term.
Execution & regulatory financing risk
Key elements of the deleveraging plan depend on contingent financing and approvals (Wyre, Telenet refinancings). Combined with reduced pro forma corporate cash (~$1.5B), these execution and regulatory dependencies increase the risk that planned asset sales, spin-offs or refinancings are delayed, slowing structural improvement.
Liberty Global C (LBTYK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.35B
Dividend YieldN/A
Average Volume (3M)971.04K
Price to Earnings (P/E)―
Beta (1Y)0.34
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees6,820
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-8.71
Shares Outstanding149,366,100
10 Day Avg. Volume1,005,224
30 Day Avg. Volume971,038
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.41
Price to Sales (P/S)0.82
P/FCF Ratio-32.60
Enterprise Value/Market Cap2.60
Enterprise Value/Revenue2.32
Enterprise Value/Gross Profit8.76
Enterprise Value/Ebitda10.55
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Liberty Global C Business Overview & Revenue Model
Company DescriptionLiberty Global plc, together with its subsidiaries, provides broadband internet, video, fixed-line telephony, and mobile communications services to residential and business customers. It offers value-added broadband services, such as intelligent WiFi features; security; smart home, online storage solutions, and Web spaces; Connect Box, a set-top or Horizon box that delivers in-home Wi-Fi service; community Wi-Fi via routers in home, which provides access to the internet; and public Wi-Fi access points in train stations, hotels, bars, restaurants, and other public places. The company also provides various tiers of digital video programming and audio services, as well as digital video recorders and multimedia home gateway systems; and channels, including general entertainment, sports, movies, series, documentaries, lifestyles, news, adult, children, and ethnic and foreign channels. In addition, it offers postpaid and prepaid mobile services; circuit-switched telephony services; and personal call manager, unified messaging, and a second or third phone line at an incremental cost. Further, the company offers business services comprising voice, advanced data, video, wireless, cloud-based services, and mobile and converged fixed-mobile services to small or home office, small business, and medium and large enterprises, as well as on a wholesale basis to other operators. It operates in the United Kingdom, Belgium, Switzerland, Ireland, Poland, Slovakia, and internationally. Liberty Global plc was founded in 2004 and is based in London, the United Kingdom.
How the Company Makes MoneyLiberty Global C generates revenue primarily through subscription services, which include broadband internet, television, and telephony. The company charges its customers monthly fees for these services, generating stable recurring revenue. In addition to subscriptions, Liberty Global earns money through advertising revenue from its television platforms and partnerships with content providers. The company may also engage in wholesale agreements to sell network capacity to other service providers. Significant factors contributing to its earnings include strategic partnerships with content creators and distributors, which enhance its service offerings, as well as investments in network expansion and technology upgrades to improve service quality and customer experience.
Liberty Global C Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call contained a mix of near-term operational challenges (Q4 revenue/EBITDA declines, competitive pressure in the UK, Telenet cost headwinds, and lower short-term guidance for 2026) but emphasized multiple strategic, value-creating transactions (Vodafone stake acquisition, Ziggo Group spin plan, Nexfibre expansion), substantial corporate cost reductions (75% cut in net corporate spend), strong treasury execution (refinanced ~$15B) and progress in growth assets (Formula E, data centers, Liberty Blume, energy/EV). Management signaled a clear path to unlock equity value through combination, deleveraging and asset monetizations with quantified synergy and free cash flow targets. Overall, the transformative deals and disciplined capital actions materially outweigh the near-term operational softness, supporting a constructive outlook for shareholder value creation over the medium term.Q4-2025 Updates
Positive Updates
Aggregate Telecom Scale and Profitability
Liberty Telecom (4 national FMC OpCos) generates approximately $22.0B of revenue and $8.0B of EBITDA on an aggregate basis, providing a material, cash-generative core business.
Major Strategic Transactions Announced (Benelux & UK)
Announced acquisition of Vodafone's 50% stake in VodafoneZiggo for EUR 1.0B cash plus 10% equity in a new Ziggo Group (to hold VodafoneZiggo + Telenet) and Nexfibre (JV) acquisition of Substantial Group/Netomnia (EV GBP 2.0B, net GBP 1.1B at close) to create an 8M-home UK fiber platform by 2027.
Ziggo Group Value-Creation Plan
Combination of Netherlands and Belgium expected to serve ~7M mobile subs and >5M broadband subs with combined revenue ~EUR 6.6B and EBITDA >EUR 2.5B; management estimates ~EUR 1.0B NPV of synergies and a path to ~4.5x leverage and ~USD 500M annual free cash flow by 2028; intention to list Ziggo on Euronext in 2027 and spin off 90% to shareholders.
Nexfibre/Nexfibre 2.0 Benefits to VMO2
VMO2 to receive ~GBP 1.1B cash and 15% Nexfibre stake, gain ~500k broadband customers at close, avoid CapEx & connection costs with an estimated NPV of ~GBP 800M, and have potential ~GBP 400M NPV from construction/managed services contracts.
Corporate Cost Reduction
Net corporate spend reduced by ~75% over the last 12 months; Liberty Services & Corporate closed 2025 at negative $130M adjusted EBITDA (better than $150M target), and Liberty expects corporate adjusted EBITDA around negative $50M in 2026.
Cash Position and Active Treasury Management
Consolidated cash ended the year at $2.2B; proactive refinancing extended maturities and refinanced ~USD 15B across credit silos, materially reducing 2028 maturities. Management expects to end 2026 with ~USD 1.5B corporate cash pro forma for announced transactions and expected asset sales.
Delivered Against Guidance and Shareholder Returns
OpCos (VMO2, VodafoneZiggo, Telenet) delivered on full-year guidance metrics; repurchased 5% of shares during the year (spend $34M in Q4) and $15B of buybacks over the last 9 years (shares outstanding down ~63% since 2017).
Growth Portfolio and Executions
Liberty Growth fair market value broadly stable at $3.4B; Formula E progress (Gen4 car), data center assets (EdgeConneX, AtlasEdge) show strong top-line growth (supporting >$1B year-end valuation), Liberty Blume grew revenue >20% to >GBP 100M with ~GBP 400M order book, and energy/EV assets advanced (Egg Power GBP 400M senior debt; Believ 2,500 sockets averaging ~GBP 1,500 EBITDA per socket and 23,000 additional awarded).
Negative Updates
Quarterly Revenue and EBITDA Declines (VMO2)
VMO2 reported Q4 revenue decline of 5.9% (reported) and adjusted EBITDA decline of 2.4% (reported), impacted by lower Nexfibre construction revenues and sustained competitive pressure; management expects 2026 service revenue decline of ~3%–5% and adjusted EBITDA decline of ~3%–5% (guidance excludes Nexfibre/Substantial Group effects).
VodafoneZiggo Near-Term Weakness and 2026 Guidance
VodafoneZiggo reported Q4 revenue decline of 2.3% and adjusted EBITDA decline of 3.4% (Q4); 2026 management guidance expects stable to low-single-digit revenue decline and mid- to high-single-digit adjusted EBITDA decline driven by incremental OpEx and CapEx investments into network resilience and service reliability (EUR ~100M incremental investment in 2026).
Telenet Profitability Pressure
Telenet Q4 revenue declined 1.3% while adjusted EBITDA declined 9.9% year-on-year due to elevated labor and marketing costs, higher professional services and outsourced labor spend, and effects from not renewing Belgium football broadcasting rights.
Competitive Pressure in UK Fixed Market
Management cited sustained intense competition in the UK fixed consumer market and Ofcom-related dynamics; VMO2 guidance reflects a cautious view on fixed consumer demand (management attributes ~70% of weaker guidance to cautious fixed consumer outlook).
Wholesale Fee Headwind from Nexfibre
VMO2 will pay higher wholesale fees to Nexfibre as part of the UK transaction, which is already reducing some operational efficiencies and contributing to near-term EBITDA pressure in guidance.
Reduced Corporate Cash Pro Forma
Consolidated cash of $2.2B at year-end is expected to be reduced pro forma for announced transactions and anticipated asset sales to roughly $1.5B by year-end 2026, reflecting cash deployed in strategic deals and commitments.
Uncertainties and Conditional Elements (Wyre/Telenet & Wyre Financing)
Wyre financing of EUR 4.35B (committed) is contingent on regulatory approval (BCA) of fiber sharing agreement; Telenet refinance steps paused due to market conditions and will require further asset disposals (Wyre stake sale) and refinancing execution to fully realize deleveraging plans.
Near-Term Investment Drag on Cash Flow and EBITDA
Multiple near-term deliberate investments (network resilience at VodafoneZiggo, Nexfibre-related wholesale payments, incremental OpEx/CapEx) mean 2026 will see weaker adjusted EBITDA and free cash flow in parts of the portfolio (e.g., VodafoneZiggo adjusted FCF targeted ~EUR 100M with no shareholder distributions planned for 2026).
Company Guidance
Liberty Global's 2026 guidance was given by operating company: VMO2 (pro forma for O2 Daisy) expects total service revenues to decline 3–5% and adjusted EBITDA to decline 3–5%, with property & equipment additions of £2.0–2.2bn (ex‑ROU), adjusted free cash flow ≈£200m and shareholder distributions ≈£200m (guidance excludes the Nexfibre/Substantial Group transaction). VodafoneZiggo expects revenue to be stable to down low single digits, adjusted EBITDA to fall mid‑ to high‑single digits, P&E additions of ~23–25% of revenue, ~€100m of incremental OpEx+CapEx for network resilience in 2026 (reducing to a ~€50m OpEx impact in 2027–28), adjusted free cash flow ≈€100m and no distributions. Telenet (IFRS, ex‑Wyre) expects stable revenue growth, low‑single‑digit adjusted EBITDAaL growth, P&E additions ≈20% of revenue and positive adjusted free cash flow ≈€20m. At corporate, Liberty Corporate expects ~$(50)m negative adjusted EBITDA; the company also targets roughly $1.5bn of corporate cash at year‑end 2026, has introduced a 1.5% AUM management fee for Liberty Growth (effective Jan‑2026), and noted Liberty Services/Corporate closed 2025 at about $(130)m adjusted EBITDA (vs. a $150m target).Liberty Global C Financial Statement Overview
Summary
Revenue rebounded sharply (+24.9% TTM) and free cash flow remains strong (TTM FCF ~$1.45B, up ~21%), but profitability is severely negative and highly volatile (EBIT margin ~-103%, net margin ~-51% TTM). Leverage is moderate (debt-to-equity ~0.72), yet negative ROE and large losses/charges are the key financial risk.Income Statement
TTM (Trailing-Twelve-Months) shows a sharp rebound in revenue (+24.9%), but profitability collapsed with deeply negative operating and net margins (EBIT margin ~-103%, net margin ~-51%), implying substantial non-recurring charges and/or heavy operating pressure. Prior years were volatile: 2024 posted solid profitability (net margin ~36%) while 2023 was heavily loss-making. Overall, revenue momentum is improving, but earnings quality and consistency are weak.28
Negative
Balance Sheet
Leverage looks manageable for the sector with debt-to-equity around 0.72 in TTM (Trailing-Twelve-Months) and ~0.54–0.80 in recent annual periods, and equity remains sizeable. The key concern is return on equity turning negative in TTM alongside large losses, which can pressure the capital base if sustained. Balance sheet risk appears moderate, but profitability-driven deterioration is the swing factor.62
Positive
Cash Flow
Cash generation remains a relative strength: TTM (Trailing-Twelve-Months) produced positive operating cash flow (~$1.2B) and free cash flow (~$1.45B) with free cash flow up ~21% versus the prior period. However, operating cash flow fell versus 2024, and cash flow covers less than half of net income in TTM—consistent with the earnings being distorted by large losses/charges. Still, the business is generating meaningful free cash flow despite income statement volatility.67
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.88B | 4.34B | 4.12B | 4.02B | 10.31B |
| Gross Profit | 1.29B | 2.89B | 2.83B | 2.95B | 7.29B |
| EBITDA | 1.07B | 987.90M | 951.90M | 1.27B | 3.65B |
| Net Income | -7.14B | 1.59B | -4.05B | 1.47B | 13.43B |
Balance Sheet | |||||
| Total Assets | 22.60B | 25.44B | 42.09B | 42.90B | 46.92B |
| Cash, Cash Equivalents and Short-Term Investments | 2.16B | 2.15B | 3.64B | 4.35B | 3.18B |
| Total Debt | 10.16B | 9.85B | 10.23B | 15.55B | 16.19B |
| Total Liabilities | 12.65B | 12.90B | 23.08B | 20.32B | 21.32B |
| Stockholders Equity | 9.74B | 12.37B | 19.06B | 22.44B | 25.93B |
Cash Flow | |||||
| Free Cash Flow | -123.00M | 1.12B | 1.24B | 1.95B | 2.14B |
| Operating Cash Flow | 1.22B | 2.03B | 2.17B | 2.84B | 3.55B |
| Investing Cash Flow | -883.90M | 684.70M | -1.84B | 1.28B | -5.80B |
| Financing Cash Flow | -226.10M | -2.25B | -692.40M | -3.28B | -1.55B |
Liberty Global C Technical Analysis
Positive
11.31
Price Trends
11.01
Positive
11.09
Positive
10.90
Positive
Market Momentum
0.27
Negative
60.22
Neutral
61.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LBTYK, the sentiment is Positive. The current price of 11.31 is above the 20-day moving average (MA) of 11.29, above the 50-day MA of 11.01, and above the 200-day MA of 10.90, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 60.22 is Neutral, neither overbought nor oversold. The STOCH value of 61.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LBTYK.
Liberty Global C Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $5.22B | 10.07 | 25.22% | 7.78% | 0.59% | 8.86% | |
75 Outperform | $3.79B | 5.96 | 53.38% | ― | 6.42% | ― | |
68 Neutral | $4.99B | -33.08 | -2.95% | 0.40% | 15.38% | -292.52% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | $4.88B | -42.17 | 2.54% | 0.39% | -22.79% | 79.90% | |
58 Neutral | $4.35B | -0.57 | ― | ― | ― | ― | |
55 Neutral | $8.19B | -4.59 | ― | ― | -4.56% | 23.46% |
* Communication Services Sector Average
LBTYK
Liberty Global C
12.10
0.17
1.42%
LUMN
Lumen Technologies
7.83
3.50
80.83%
PHI
PLDT
23.77
1.05
4.62%
TEO
Telecom Argentina
11.46
-0.32
-2.72%
TDS
Telephone & Data Systems
45.29
8.78
24.05%
VEON
VEON
56.24
10.42
22.74%
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.