GCI LLC CL C | 8-K: FY2026 Q2 Revenue: USD 261 M

Revenue: As of FY2026 Q2, the actual value is USD 261 M.

EPS: As of FY2026 Q2, the actual value is USD 0.4.

EBIT: As of FY2026 Q2, the actual value is USD 35 M.

Consolidated Financial Performance (Three Months Ended June 30, 2026 vs. 2025)

Revenue

• Total revenue was flat at $261 million for both periods. Consumer revenue decreased by 2% to $117 million, while Business revenue increased by 1% to $144 million.

Operating Expenses

• Total operating expenses (exclusive of depreciation and amortization) increased by 7% to - $137 million.
• Consumer direct costs decreased by 6% to - $33 million.
• Business direct costs increased by 35% to - $35 million.
• Technology expense increased by 3% to - $69 million.

Selling, General and Administrative Expense

• This expense (exclusive of stock-based compensation) increased by 12% to - $28 million.

Adjusted OIBDA

• Adjusted OIBDA declined by 11% to $96 million, with the margin decreasing by 460 basis points to 36.8%.

Stock-based Compensation

• Increased by 40% to - $7 million.

Depreciation and Amortization

• Increased by 8% to - $56 million.

Acquisition Costs

• Totaled - $4 million, compared to $0 in the prior period.

Operating Income

• Operating income decreased by 43% to $29 million, with the margin decreasing by 840 basis points to 11.1%.

Capital Expenditures

• Capital expenditures, net of grant proceeds, increased by 37% to - $70 million.

Consolidated Financial Performance (Six Months Ended June 30, 2026 vs. 2025)

Revenue

• Total revenue decreased by 2% to $517 million.
• Consumer revenue declined by 3% to $232 million, and Business revenue declined by 1% to $285 million.

Operating Expenses

• Total operating expenses (exclusive of depreciation and amortization) increased by 6% to - $269 million.
• Consumer direct costs decreased by 8% to - $65 million.
• Business direct costs increased by 29% to - $67 million.
• Technology expense increased by 5% to - $137 million.

Selling, General and Administrative Expense

• This expense (exclusive of stock-based compensation) increased by 11% to - $59 million.

Adjusted OIBDA

• Adjusted OIBDA declined by 14% to $189 million, with the margin decreasing by 530 basis points to 36.6%.

Stock-based Compensation

• Increased by 114% to - $15 million.

Depreciation and Amortization

• Increased by 3% to - $108 million.

Acquisition Costs

• Totaled - $7 million, compared to $0 in the prior period.

Operating Income

• Operating income decreased by 46% to $59 million, with the margin decreasing by 930 basis points to 11.4%.

Capital Expenditures

• Capital expenditures, net of grant proceeds, increased by 25% to - $125 million.

GCI Consumer Segment Performance (Six Months Ended June 30, 2026 vs. 2025)

Revenue

• Total GCI Consumer revenue decreased by 3% to $232 million.
• Data revenue decreased by 2% to $119 million.
• Wireless revenue increased by 3% to $104 million.
• Other revenue decreased by 50% to $9 million.

Direct Costs

• Consumer direct costs decreased by 8% to - $65 million.

Gross Margin

• Consumer gross margin decreased by 1% to $167 million, with the margin percentage increasing by 160 basis points to 72.0%.

Operational Metrics

• As of June 30, 2026, broadband subscribers totaled 155,400, a 1% increase.
• As of June 30, 2026, wireless lines in service totaled 202,100, a 1% increase.

GCI Business Segment Performance (Six Months Ended June 30, 2026 vs. 2025)

Revenue

• Total GCI Business revenue decreased by 1% to $285 million.
• Data revenue decreased by 1% to $251 million, while Wireless and Other revenues remained flat at $20 million and $14 million, respectively.

Direct Costs

• Business direct costs increased by 29% to - $67 million, primarily due to higher distribution costs.

Gross Margin

• Business gross margin decreased by 7% to $218 million, with the margin percentage decreasing by 540 basis points to 76.5%.

Operational Metrics

• As of June 30, 2026, wireless lines in service totaled 8,000, a 7% decrease.

Cash Flow (Trailing Twelve Months Ended June 30, 2026 vs. 2025)

Net Cash Provided by Operating Activities

• Totaled $308 million, a decrease from $342 million in the prior period.

Free Cash Flow

• Was $59 million, a decrease from $153 million in the prior period.

Cash Flow (Six Months Ended June 30, 2026 vs. 2025)

Net Cash Provided by Operating Activities

• Was $164 million, down from $226 million.

Net Cash Used in Investing Activities

• Was - $296 million, compared to - $94 million.

Net Cash Provided by Financing Activities

• Was $213 million, compared to - $90 million.

Net Increase in Cash, Cash Equivalents and Restricted Cash

• Was $81 million, up from $42 million.

Cash, Cash Equivalents and Restricted Cash, End of Period

• Totaled $510 million, up from $117 million.

Balance Sheet and Debt (As of June 30, 2026 vs. March 31, 2026)

Cash, Cash Equivalents and Restricted Cash

• Increased to $510 million from $448 million.

Total Debt

• Increased to $1,263 million from $1,035 million.

Leverage

• GCI Leverage increased to 2.8x from 2.3x.
• Liberty Capital Leverage increased to 2.1x from 1.6x.

Undrawn Capacity

• GCI’s credit facility had $447 million in undrawn capacity (net of letters of credit).

Outlook / Guidance

• GCI expects to close the Quintillion acquisition in 2026, and Liberty Capital intends to initiate a recurring quarterly dividend of approximately $15 million per quarter, totaling $60 million annualized, starting in December 2026. GCI’s net capital expenditures for the full year 2026 are projected to be $290 million.