"Lumen Technologies beat adjusted earnings expectations and delivered cash flow ahead of forecast in Q3, but revenue fell short of estimates as legacy telecom segments continued to decline. The stock was near $11 at filing, trading near its 52-week high despite analyst consensus sitting at $5.24. CEO Kate Johnson said the company "demonstrated what disciplined execution and bold ambition can achieve," pointing to strong financial results and progress on modernization initiatives."
"Lumen closed a $2.4B debt refinancing that will save $135M annually in interest expense. That structural improvement matters because it directly improves cash flow without requiring operational gains. Free cash flow came in at $1.661B, ahead of expectations, while operating cash flow reached $2.511B. The company also landed $1B in new Private Connectivity Fabric deals, a key part of its shift toward higher-margin enterprise services."
"Total revenue landed at $3.087B, missing the $3.10B estimate. Mass Markets revenue fell 8% to $631M. North America Business revenue declined 3% to $2.376B. These segments remain under pressure as legacy services shrink. Adjusted EBITDA came in at $787M, down from $899M in the year-ago quarter. The decline reflects the revenue headwind, though management reiterated it expects to hit the high end of its full-year 2025 Adjusted EBITDA guidance range, citing progress in modernization and simplification efforts."
Lumen beat adjusted earnings expectations and delivered stronger cash flow in Q3 while total revenue declined slightly to $3.087B, missing estimates. The company completed a $2.4B debt refinancing that will save $135M annually in interest, improving cash flow. Free cash flow was $1.661B and operating cash flow was $2.511B. Lumen booked $1B in new Private Connectivity Fabric deals as it shifts toward higher-margin enterprise services. Mass Markets and North America Business revenues fell 8% and 3%, respectively, driving a 12% decline in adjusted EBITDA to $787M and a net loss of $621M. Management expects to reach the high end of 2025 Adjusted EBITDA guidance.
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