Lumen Technologies Reports Strong Third Quarter Results; Signed Additional $1B in PCF Deals, Delivered on Key Transformation Milestones

DENVER--( BUSINESS WIRE)--Lumen Technologies (NYSE: LUMN) today reported strong third-quarter results that demonstrate continued progress in its bold transformation and position the company on a path to sustainable growth. Among the company’s highlights during the quarter:

“This quarter, we demonstrated what disciplined execution and bold ambition can achieve,” said Kate Johnson, president and CEO of Lumen Technologies. “We delivered strong financial results—revenue, EBITDA, and free cash flow all ahead of expectations—while advancing our transformation agenda. Our investments in Private Connectivity Fabric, NaaS, and digital innovation are opening new doors, and the momentum is unmistakable. We’re scaling our platform, expanding our reach, and accelerating our pivot to sustainable growth as we build the backbone of the AI economy. I’m proud of our team’s accomplishments—and even more excited for what’s ahead.”

Third Quarter 2025 Highlights

1 Represents a non-GAAP measure as later defined below under "Descriptions of Non-GAAP Metrics.

2 Includes the impact of $170 million voluntary pension contribution in the third quarter 2024.

Financial Results

Metric, as reported

Third Quarter

($ in millions, except per share data)

2025

2024

Large Enterprise

752

761

Mid-Market Enterprise

488

542

Public Sector

478

430

North America Enterprise Channels

1,718

1,733

Wholesale

658

712

North America Business Revenue

2,376

2,445

International and Other

Business Segment Revenue

2,456

2,537

Mass Markets Segment Revenue

631

684

Total Revenue

3,087

3,221

Cost of Services and Products

1,700

1,692

Selling, General and Administrative Expenses

829

696

Stock-based Compensation Expense

Net Loss

(621

)

(148

)

Net Loss, Excluding Special Items (1)(2)

(197

)

(133

)

Adjusted EBITDA (1)

571

843

Adjusted EBITDA, Excluding Special Items (1)(3)

787

899

Net Loss Margin

(20.1

(4.6

Net Loss Margin, Excluding Special Items (1)(2)

(6.4

(4.1

Adjusted EBITDA Margin (1)

18.5

26.2

Adjusted EBITDA Margin, Excluding Special Items (1)(3)

25.5

27.9

Net Cash Provided by Operating Activities

2,511

2,032

Capital Expenditures

1,041

850

Unlevered Cash Flow (1)

1,760

1,470

Unlevered Cash Flow, Excluding Cash Special Items (1)(4)

1,951

1,486

Free Cash Flow (1)

1,470

1,182

Free Cash Flow, Excluding Cash Special Items (1)(4)

1,661

1,198

Net Loss per Common Share - Diluted

(0.62

)

(0.15

)

Net Loss per Common Share - Diluted, Excluding Special Items (1)(2)

(0.20

)

(0.13

)

Weighted Average Shares Outstanding (in millions) - Diluted

996.0

988.8

(1) See the attached schedules for definitions of non-GAAP metrics and reconciliations to GAAP figures.

(2) Excludes Special Items (net of the income tax effect thereof), in the amounts of (i) $424 million for the third quarter of 2025 and (ii) $15 million for the third quarter of 2024.

(3) Excludes Special Items in the amounts of (i) $216 million for the third quarter of 2025 and (ii) $56 million for the third quarter of 2024.

(4) Excludes cash paid for Special Items in the amounts of (i) $191 million for the third quarter of 2025 and (ii) $16 million for the third quarter of 2024.

Revenue

Third

Quarter

Second

Quarter

QoQ

Percent

Third

Quarter

YoY

Percent

($ in millions)

2025

Change

2024

Change

Revenue By Sales Channel

Large Enterprise

752

732

761

(1)%

Mid-Market Enterprise

488

500

(2)%

542

(10)%

Public Sector

478

486

(2)%

430

11%

North America Enterprise Channels

1,718

—%

1,733

(1)%

Wholesale

658

690

(5)%

712

(8)%

North America Business Revenue

2,376

2,408

(1)%

2,445

(3)%

International and Other

(2)%

(13)%

Business Segment Revenue

2,456

2,490

(1)%

2,537

(3)%

Mass Markets Segment Revenue

631

602

684

(8)%

Total Revenue

3,087

3,092

—%

3,221

(4)%

Business Segment Revenue by Product Category

Grow

1,160

1,127

1,077

Nurture

611

634

(4)%

729

(16)%

Harvest

497

554

(10)%

550

(10)%

Subtotal

2,268

2,315

(2)%

2,356

(4)%

Other

188

175

181

Business Segment Revenue

2,456

2,490

(1)%

2,537

(3)%

Revenue

Total Revenue was $3.087 billion for the third quarter 2025, compared to $3.221 billion for the third quarter 2024.

Cash Flow

Free Cash Flow, excluding Special Items, was $1.661 billion in the third quarter 2025, compared to $1.198 billion in the third quarter 2024.

Liquidity

As of September 30, 2025, Lumen had cash and cash equivalents of $2.401 billion.

2025 Financial Outlook

The Company reiterated its full-year 2025 financial outlook issued on July 31, 2025, which is detailed below:

Metric (1)(2)

Outlook

Adjusted EBITDA (3)

$3.2 to $3.4 billion

Free Cash Flow (4)

$1.2 to $1.4 billion

Net Cash Interest (5)

$1.2 to $1.3 billion

Capital Expenditures (6)

$4.1 to $4.3 billion

Cash Income Taxes (Refunded) Paid (7)

($400) to ($300) million

(1) For definitions of non-GAAP metrics and reconciliations to GAAP figures, see the attached schedules and our Investor Relations website.

(2) Outlook measures in this chart and the accompanying schedules (i) exclude the effects of Special Items, goodwill impairment, future changes in our operating or capital allocation plans, unforeseen changes in regulation, laws or litigation, and other unforeseen events or circumstances impacting our financial performance and (ii) speak only as of Oct. 30, 2025. See “Forward-Looking Statements.”

(3) Expect to come in near the high end of range driven primarily by better progress on our modernization and simplification initiatives and improved performance from legacy services.

(4) Primarily driven by the anticipated $400 million tax refund referenced below in Note 7, lower capital expenditures, better Adjusted EBITDA performance, and lower interest expense.

(5) Expect to come in near low end of the range, driven primarily from recent debt refinancings.

(6) Expect to be at the low end of the range primarily due to project timing.

(7) Reflects our expectation of receiving a $400 million refund from recent tax legislation, and assumes receipt thereof in 2025 (which could be delayed by a prolonged shutdown of the U.S. government).

Investor Call

Lumen’s management team will host a conference call at 5:00 p.m. ET today, October 30, 2025. The conference call will be streamed live over the Lumen website at ir.lumen.com. Additional information regarding third quarter 2025 results, including the presentation materials, will be available on the Investor Relations website prior to the call. A webcast replay of the call will also be available on our website for one year.

About Lumen Technologies:

Lumen is unleashing the world's digital potential. We ignite business growth by connecting people, data, and applications – quickly, securely, and effortlessly. As the trusted network for AI, Lumen uses the scale of our network to help companies realize AI's full potential. From metro connectivity to long-haul data transport to our edge cloud, security, managed service, and digital platform capabilities, we meet our customers’ needs today and as they build for tomorrow.

For news and insights visit news.lumen.com, LinkedIn: /lumentechnologies, X: @lumentechco, Facebook: /lumentechnologies, Instagram: @lumentechnologies and YouTube: /lumentechnologies. Lumen and Lumen Technologies are registered trademarks of Lumen Technologies LLC in the United States. Lumen Technologies LLC is a wholly-owned affiliate of Lumen Technologies, Inc.

Forward-Looking Statements

Except for historical and factual information, the matters set forth in this release and other of our oral or written statements identified by words such as “estimates,” “expects,” “anticipates,” “believes,” “plans,” “intends,” “will,” and similar expressions with respect to the future are forward-looking statements as defined by the federal securities laws, and are subject to the “safe harbor” protections thereunder. The forward-looking statements included in this press release including without limitation statements regarding our future financial results of operations, cash flows, or financial condition, our transformation strategy, our completed, pending, or proposed transactions, including with respect to the anticipated sale of our consumer fiber business, our modernization efforts and our competitive position, and the assumptions on which they are based are not guarantees of future results and are based on current expectations only, are inherently speculative, and are subject to a number of risks and uncertainties, many of which are beyond our control. Actual events and results may differ materially from those anticipated, estimated, projected or implied by us in those statements if one or more of these risks or uncertainties materialize, or if our underlying assumptions prove incorrect. Factors that could cause our actual results to differ materially from those anticipated, estimated, projected or implied by us in those forward-looking statements include but are not limited to: the effects of intense competition from a wide variety of competitive providers, including decreased demand for our more mature service offerings and increased pricing pressures; the effects of new, emerging or competing technologies, including those that could make our products less desirable or obsolete; our ability to successfully and timely attain our key operating imperatives, including attaining projected cost savings, simplifying and consolidating our network, simplifying, and automating our service support systems, attaining our infrastructure buildout targets, replacing aging or obsolete plant and equipment, and strengthening our relationships with customers; our ability to successfully and timely monetize our network related assets through leases, commercial service arrangements or similar transactions (including as part of our Private Connectivity Fabric SM solutions), including the possibility that the benefits of or demand for these transactions may be less than anticipated, that the costs thereof may be more than anticipated, or that we may be unable to satisfy any conditions of any such transactions in a timely manner, or at all; our ability to safeguard our network, and to avoid the adverse impact of cyber-attacks, security breaches, service outages, system failures, or similar events impacting our network or the availability and quality of our services; the effects of ongoing changes in the regulation of the communications industry, including the outcome of legislative, regulatory, or judicial proceedings relating to content liability standards, intercarrier compensation, universal service, service standards and obligations, broadband deployment, data protection, network security, privacy, and net neutrality; our ability to generate cash flows sufficient to fund our financial commitments and objectives, including our capital expenditures, operating costs, debt obligations, taxes, and pension contributions and other benefits payments; our ability to effectively retain and hire key personnel and to successfully negotiate collective bargaining agreements on reasonable terms without work stoppages; our ability to successfully adjust to changes in customer demand for our products and services, including increased demand for high-speed data transmission services, low-latency connectivity, and scalable infrastructure driven largely by the growth of artificial intelligence applications and workloads, and the risk that we may misjudge the timing, scale, or nature of such demand, leading to potential misalignment of our investments or strategic priorities; our ability to enhance our growth products and manage the decline of our legacy products, including by maintaining the quality and profitability of our existing offerings, introducing profitable new offerings on a timely and cost-effective basis, and transitioning customers from our legacy products to our newer offerings; our ability to successfully and timely implement our corporate strategies, including our transformation, modernization and simplification, buildout and deleveraging strategies; our ability to successfully consummate and timely realize the anticipated benefits from the pending sale of our Mass Markets fiber-to-the-home business in 11 states to AT&T; our ability to successfully and timely realize the anticipated benefits from our 2022 and 2023 divestitures, our 2024 debt modification and extinguishment transactions, and our 2025 debt refinancing transactions, in each case as described in our prior reports filed with the U.S. Securities and Exchange Commission (the "SEC"); changes in our operating plans, corporate strategies, or capital allocation plans, whether based upon changes in our cash flows, cash requirements, financial performance, financial position, market or regulatory conditions, or otherwise; the impact of any future material acquisitions or divestitures that we may transact, including our pending sale of our Mass Markets fiber-to-the-home business in 11 states; the negative impact of increases in the costs of our pension, healthcare, post-employment, or other benefits, including those caused by changes in capital markets, interest rates, mortality rates, demographics, or regulations; the impact of events that harm our reputation or brands, including the potential negative impact of customer or shareholder complaints, government investigations, security breaches, or service outages impacting us or our industry; adverse changes in our access to credit markets on acceptable terms, whether caused by unstable markets, debt covenant restrictions, changes in our financial position, lower credit ratings, or otherwise; our ability to meet the terms and conditions of our debt obligations and covenants, including our ability to make transfers of cash in compliance therewith; our ability to maintain favorable relations with our security holders, key business partners, suppliers, vendors, landlords, or lenders; our ability to timely obtain necessary hardware, software, equipment, services, governmental permits, and other items on favorable terms; the potential adverse effects arising out of allegations regarding the release of hazardous materials into the environment from network assets owned or operated by us or our predecessors, including any resulting governmental actions, removal costs, litigation, compliance costs, or penalties; our ability to collect our receivables from, or continue to do business with, financially-troubled customers; our ability to continue to use intellectual property necessary to conduct our operations; any adverse developments in legal or regulatory proceedings involving us; changes in tax, trade, tariff, pension, healthcare, or other laws or regulations, in governmental support programs, or in general government funding levels, including any adverse impact of a prolonged shutdown of the U.S. government; our ability to use our net operating loss carryforwards in the amounts projected and to fully realize any anticipated benefits from recently-enacted federal tax legislation; the effects of changes in accounting policies, practices, or assumptions, including changes that could potentially require additional future impairment charges; the effects of adverse weather, terrorism, epidemics, pandemics, war, rioting, vandalism, societal unrest, political discord, or other natural or man-made disasters or disturbances; the potential adverse effects if our internal controls over financial reporting have weaknesses or deficiencies, or otherwise fail to operate as intended; the effects of changes in interest rates or inflation; the effects of more general factors such as changes in exchange rates, in operating costs, in public policy, in the views of financial analysts, or in general market, labor, economic, public health, or geopolitical conditions; and other risks referenced in our filings with the SEC. Additional factors or risks that we currently deem immaterial, that are not presently known to us, or that arise in the future could also cause our actual results to differ materially from our expected results. Given these uncertainties, investors are cautioned not to unduly rely upon our forward-looking statements, which speak only as of the date made. We undertake no obligation to publicly update or revise any forward-looking statements for any reason, whether as a result of new information, future events or developments, changed circumstances, or otherwise. Furthermore, any information about our intentions contained in any of our forward-looking statements reflects our intentions as of the date of such forward-looking statement, and is based upon, among other things, our assessment of regulatory, technological, industry, competitive, economic, and market conditions as of such date. We may change our intentions, strategies or plans (including our capital allocation plans) at any time and without notice, based upon any changes in such factors or otherwise.

Reconciliation to GAAP

This release includes certain historical and forward-looking non-GAAP financial measures, including but not limited to Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Unlevered Cash Flow and adjustments to GAAP and non-GAAP measures to exclude the effect of Special Items.

In addition to providing key metrics for management to evaluate the Company’s performance, we believe these above-described measurements assist investors in their understanding of period-to-period operating performance and in identifying historical and prospective trends.

Reconciliations of non-GAAP financial measures to the most comparable GAAP measures are included in the attached financial schedules. Non-GAAP measures are not presented to be replacements or alternatives to the GAAP measures, and investors are urged to consider these non-GAAP measures in addition to, and not in substitution for, measures prepared in accordance with GAAP. Lumen may present or calculate its non-GAAP measures differently from other companies.

Lumen Technologies, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS

THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

(UNAUDITED)

($ in millions, except per share amounts; shares in thousands)

Three months ended

September 30,

(Decrease) / Increase

Nine months ended

September 30,

(Decrease) / Increase

2025

2024

2025

2024

OPERATING REVENUE

3,087

3,221

(4)%

9,361

9,779

(4)%

OPERATING EXPENSES

Cost of services and products (exclusive of depreciation and amortization)

1,700

1,692

—%

5,011

4,997

—%

Selling, general and administrative

829

696

19%

2,259

2,261

—%

Net loss on sale of business

—

—%

—

Depreciation and amortization

674

707

(5)%

2,075

2,198

(6)%

Goodwill impairment

—

—%

628

—

Total operating expenses

3,203

3,095

9,973

9,473

OPERATING (LOSS) INCOME

(116

)

126

(612

)

306

OTHER (EXPENSE) INCOME

Interest expense

(319

)

(351

)

(9)%

(1,004

)

(1,015

)

(1)%

Net (loss) gain on early retirement of debt

(395

)

(666

)

277

Other income, net

(69)%

321

(77)%

Total other expense, net

(697

)

(298

)

134%

(1,595

)

(417

)

Income tax benefit (expense)

192

470

(29

)

NET LOSS

(621

)

(148

)

(1,737

)

(140

)

BASIC LOSS PER SHARE

(0.62

)

(0.15

)

(1.75

)

(0.14

)

DILUTED LOSS PER SHARE

(0.62

)

(0.15

)

(1.75

)

(0.14

)

WEIGHTED AVERAGE SHARES OUTSTANDING

Basic

995,998

988,794

993,937

986,963

Diluted

995,998

988,794

993,937

986,963

Exclude: Special Items (1)

424

1,382

(158

)

NET LOSS EXCLUDING SPECIAL ITEMS

(197

)

(133

)

48%

(355

)

(298

)

19%

DILUTED LOSS PER SHARE EXCLUDING SPECIAL ITEMS

(0.20

)

(0.13

)

54%

(0.36

)

(0.30

)

20%

(1) Excludes the Special Items described in the accompanying Non-GAAP Special Items table, net of the income tax effect thereof.

nm - Percentages greater than 200% and comparisons between positive and negative values are considered not meaningful.

Lumen Technologies, Inc.

CONSOLIDATED BALANCE SHEETS

AS OF SEPTEMBER 30, 2025 AND DECEMBER 31, 2024

(UNAUDITED)

($ in millions)

September 30, 2025

December 31, 2024

ASSETS

CURRENT ASSETS

Cash and cash equivalents

2,401

1,889

Accounts receivable, less allowance of $53 and $59

1,263

1,231

Assets held for sale

3,787

Other

1,256

1,250

Total current assets

8,707

4,394

Property, plant and equipment, net of accumulated depreciation of $23,420 and $23,121

19,107

20,421

GOODWILL AND OTHER ASSETS

Goodwill

—

1,964

Other intangible assets, net

4,411

4,806

Other, net

2,061

1,911

Total goodwill and other assets

6,472

8,681

TOTAL ASSETS

34,286

33,496

LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY

CURRENT LIABILITIES

Current maturities of long-term debt

412

Accounts payable

1,089

749

Accrued expenses and other liabilities

Salaries and benefits

760

716

Income and other taxes

323

272

Current operating lease liabilities

273

253

Interest

133

197

Other

224

179

Liabilities held for sale

—

Current portion of deferred revenue

1,000

861

Total current liabilities

3,932

3,639

LONG-TERM DEBT

17,578

17,494

DEFERRED CREDITS AND OTHER LIABILITIES

Deferred income taxes, net

2,314

2,890

Benefit plan obligations, net

2,140

2,205

Deferred revenue

6,200

3,733

Other

3,295

3,071

Total deferred credits and other liabilities

13,949

11,899

STOCKHOLDERS' (DEFICIT) EQUITY

Common stock

19,173

19,149

Accumulated other comprehensive loss

(647

)

(723

)

Accumulated deficit

(19,699

)

(17,962

)

Total stockholders' (deficit) equity

(1,173

)

464

TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY

34,286

33,496

Lumen Technologies, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

(UNAUDITED)

($ in millions)

Nine months ended September 30,

2025

2024

OPERATING ACTIVITIES

Net loss

(1,737

)

(140

)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization

2,075

2,198

Net loss on sale of business

—

Goodwill impairment

628

—

Deferred income taxes

(597

)

Provision for uncollectible accounts

Net loss (gain) on early retirement and modification of debt

666

(277

)

Debt modification costs and related fees

—

(80

)

Gain on sale of investment

—

(205

)

Stock-based compensation

Changes in current assets and liabilities, net

330

531

Retirement benefits

(185

)

Changes in deferred revenue

2,468

1,572

Changes in other noncurrent assets and liabilities, net

102

185

Other, net

145

(40

)

Net cash provided by operating activities

4,176

3,645

INVESTING ACTIVITIES

Capital expenditures

(2,723

)

(2,316

)

Proceeds from sale of property, plant and equipment, and other assets

283

Other, net

Net cash used in investing activities

(2,669

)

(1,999

)

FINANCING ACTIVITIES

Net proceeds from issuance of long-term debt

6,920

1,325

Payments of long-term debt

(7,259

)

(2,069

)

Net payments of revolving line of credit

—

(200

)

Debt issuance and extinguishment costs and related fees

(641

)

(282

)

Other, net

(15

)

(15

)

Net cash used in financing activities

(995

)

(1,241

)

Net decrease in cash, cash equivalents and restricted cash

512

405

Cash, cash equivalents and restricted cash at beginning of period

1,900

2,248

Cash, cash equivalents and restricted cash at end of period

2,412

2,653

Cash, cash equivalents and restricted cash:

Cash and cash equivalents

2,401

2,640

Restricted cash

Total

2,412

2,653

Lumen Technologies, Inc.

OPERATING METRICS

(UNAUDITED)

Operating Metrics

3Q25

2Q25

3Q24

Mass Markets broadband subscribers

(in thousands)

Fiber broadband subscribers

1,190

1,150

1,035

Other broadband subscribers (1)

1,227

1,308

1,566

Mass Markets total broadband subscribers (2)

2,417

2,458

2,601

Mass Markets broadband enabled units (3)

(in millions)

Fiber broadband enabled units

4.5

4.4

4.1

Other broadband enabled units

17.5

17.6

17.9

Mass Markets total broadband enabled units

22.0

(1) Other broadband subscribers are customers that primarily subscribe to lower speed copper-based broadband services marketed under the CenturyLink brand.

(2) Mass Markets broadband subscribers are customers that purchase broadband connection service through their existing telephone lines, stand-alone telephone lines, or fiber-optic cables. Our methodology for counting our Mass Markets broadband subscribers includes only those lines that we use to provide services to external customers and excludes lines used solely by us and our affiliates. It also excludes unbundled loops and includes stand-alone Mass Markets broadband subscribers. We count lines when we install the service. Other companies may use different methodologies.

(3) Represents the total number of units capable of receiving our broadband services at period end. Other companies may use different methodologies to count their broadband enabled units.

Description of Non-GAAP Metrics

Pursuant to Regulation G and Item 10(e) of Regulation S-K, the Company is hereby providing definitions of non-GAAP financial metrics and reconciliations to the most directly comparable GAAP measures.

The following describes and reconciles those financial measures as reported under accounting principles generally accepted in the United States (GAAP) with those financial measures as adjusted by the items detailed below and presented in the accompanying news release. These calculations are not prepared in accordance with GAAP and should not be viewed as alternatives to GAAP. In keeping with its historical financial reporting practices, the Company believes that the supplemental presentation of these calculations provides meaningful non-GAAP financial measures to help investors understand and compare business trends among different reporting periods on a consistent basis.

We use the term Special Items as a non-GAAP measure to describe items that impacted a period’s statement of operations for which investors may want to give special consideration due to their magnitude, nature or both. We do not call these items non-recurring because, while some are infrequent, others may recur in future periods.

The largest components of our Special Items reflected in this release are one-time or unusual charges, including charges for goodwill impairment and gains or losses associated with the early retirement of debt or sale of investments. The other main components of our Special Items include Modernization and Simplification costs, Transaction and Separation costs, and Income from Transition and Separation Services. Modernization and Simplification costs are associated with a multi-year transformation initiative to streamline our network infrastructure, product portfolio, and IT systems, and to modernize our workforce to deliver $1 billion in annualized cost savings on a run-rate basis exiting 2027. Transaction and Separation costs are primarily associated with providing certain transition services in connection with our divestitures and costs related to certain debt transactions which were unusual and infrequent. Income from Transition and Separations Services includes charges we have billed for certain services provided to the purchasers in connection with our recent divestitures. Other primarily includes the recognition of previously deferred gain on our sale of select CDN contracts and the recognition of losses on disposal of certain operating assets.

Adjusted EBITDA ($) is defined as net income (loss) from the Statements of Operations before income tax (expense) benefit, total other income (expense), depreciation and amortization, stock-based compensation expense and impairments.

Adjusted EBITDA Margin (%) is defined as Adjusted EBITDA divided by total revenue.

Management believes that Adjusted EBITDA and Adjusted EBITDA Margin are relevant and useful metrics to provide to investors, as they are an important part of our internal reporting and are key measures used by management to evaluate profitability and operating performance of Lumen and to make resource allocation decisions. Management believes such measures are especially important in a capital-intensive industry such as telecommunications. Management also uses Adjusted EBITDA and Adjusted EBITDA Margin (and similarly uses these terms excluding Special Items) to compare our performance to that of our competitors and to eliminate certain non-cash and non-operating items in order to consistently measure from period to period our ability to fund capital expenditures, fund growth, service debt and determine bonuses. Adjusted EBITDA excludes non-cash stock compensation expense and impairments because of the non-cash nature of these items. Adjusted EBITDA also excludes interest income, interest expense and income taxes. Adjusted EBITDA also excludes depreciation and amortization expense because these non-cash expenses primarily reflect the impact of historical capital investments, as opposed to the cash impacts of capital expenditures made in recent periods, which may be evaluated through cash flow measures. Adjusted EBITDA further excludes the gain (or loss) on extinguishment and modification of debt and other income (expense), net, because none of these items are related to the primary business operations of Lumen.

There are material limitations to using Adjusted EBITDA as a financial measure, including the difficulty associated with comparing companies that use similar performance measures whose calculations may differ from our calculations. Additionally, by excluding the above-listed items, Adjusted EBITDA may exclude items that investors believe are important components of our performance. Adjusted EBITDA and Adjusted EBITDA Margin (either with or without Special Items) should not be considered a substitute for other measures of financial performance reported in accordance with GAAP.

Unlevered Cash Flow is defined as net cash provided by (used in) operating activities less capital expenditures, plus cash interest paid and less interest income, all as disclosed in the Statements of Cash Flows. Management believes that Unlevered Cash Flow is a relevant metric to provide to investors, because it reflects the operational performance of Lumen and, measured over time, enables management and investors to monitor the underlying business’ growth pattern and ability to generate cash. Unlevered Cash Flow (either with or without Special Items) excludes cash used or received for acquisitions, divestitures and debt service and the impact of exchange rate changes on cash and cash equivalents balances.

There are material limitations to using Unlevered Cash Flow to measure our cash performance as it excludes certain material items that investors may believe are important components of our cash flows. Comparisons of our Unlevered Cash Flow to that of some of our competitors may be of limited usefulness. Additionally, this financial measure is subject to variability quarter over quarter as a result of the timing of payments related to accounts receivable, accounts payable, payroll and capital expenditures. Unlevered Cash Flow should not be used as a substitute for net change in cash, cash equivalents and restricted cash in the Consolidated Statements of Cash Flows.

Free Cash Flow is defined as net cash provided by (used in) operating activities less capital expenditures as disclosed in the Statements of Cash Flows. Management believes that Free Cash Flow is a relevant metric to provide to investors, as it is an indicator of our ability to generate cash to service our debt. Free Cash Flow excludes cash used or received for acquisitions, divestitures, principal repayments and the impact of exchange rate changes on cash and cash equivalents balances.

There are material limitations to using Free Cash Flow to measure our performance as it excludes certain material items that investors may believe are important components of our cash flows. Comparisons of our Free Cash Flow to that of some of our competitors may be of limited usefulness since until recently we did not pay a significant amount of income taxes due to net operating loss carryforwards, and therefore generated higher cash flow than a comparable business that does pay income taxes. Additionally, this financial measure is subject to variability quarter over quarter as a result of the timing of payments related to interest expense, accounts receivable, accounts payable, payroll and capital expenditures. Free Cash Flow (either with or without Special Items) should not be used as a substitute for net change in cash, cash equivalents and restricted cash on the Consolidated Statements of Cash Flows.

Lumen Technologies, Inc.

Non-GAAP Special Items

(UNAUDITED)

($ in millions)

Actual QTD

Actual YTD

Special Items Impacting Adjusted EBITDA

3Q25

3Q24

3Q25

3Q24

Severance

119

Consumer and other litigation

—

)

Net loss on sale of business

—

Transaction and separation costs (1)

187

232

Modernization and simplification (2)

—

164

—

Other (3)

)

Real estate transactions

Total Special Items impacting Adjusted EBITDA

216

467

362

Actual QTD

Actual YTD

Special Items Impacting Net Income (Loss)

3Q25

3Q24

3Q25

3Q24

Severance

119

Consumer and other litigation

—

)

Net loss on sale of business

—

Transaction and separation costs (1)

187

232

Modernization and simplification (2)

—

164

—

Other (3)

)

Real estate transactions

Goodwill impairment

—

628

—

Net loss (gain) on early retirement of debt (4)

395

666

(277

)

Income from transition and separation services (5)

(38

)

(37

)

(114

)

(107

)

Gain on sale of investment

—

(205

)

Total Special Items impacting Net Income (Loss)

573

1,647

(227

)

Income tax effect of Special Items (6)

(149

)

(265

)

Total Special Items impacting Net Income (Loss), net of tax

424

1,382

(158

)

Actual QTD

Actual YTD

Special Items Impacting Cash Flows

3Q25

3Q24

3Q25

3Q24

Severance

115

Consumer and other litigation

—

Transaction and separation costs (1)

198

Modernization and simplification (2)

162

—

362

—

Income from transition and separation services (5)

(34

)

(30

)

(115

)

(82

)

Total Special Items impacting Cash Flows

191

353

231

(1) Reflects transaction and separation costs associated with (i) the Q2 2025 expense of $49 million for fees related to the voluntary relinquishment of our funding received under the FCC's Rural Digital Opportunity Fund, (ii) the pending sale of our Mass Markets fiber-to-the-home business, including approximately 95% of Quantum Fiber, in 11 states to AT&T, (iii) our 2022 and 2023 divestitures, (iv) our March 22, 2024 debt transaction support agreement and our September 24, 2024 exchange offer and (v) our evaluation of other potential transactions.

(2) Includes costs incurred related to network infrastructure, product portfolio, IT systems, and workforce modernization designed to deliver $1 billion annualized in cost savings on a run-rate basis exiting 2027.

(3) Includes primarily (i) the recognition of Q1 2024 previously deferred gain on sale of select CDN contracts in October 2023, based on the transfer of remaining customer contracts as of March 31, 2024 and (ii) the recognition of a loss on disposal of certain operating assets in Q2 2024 and Q1 2025.

(4) Reflects primarily net loss (gain) as a result of (i) refinancing of certain debt instruments and credit facilities in Q3, Q2 and Q1 2025, (ii) repurchase of $75 million aggregate principal amount of outstanding debt in Q2 2024 and (iii) the debt transaction support agreement and resulting debt extinguishment in Q1 2024.

(5) Reflects income from transition, separation and IT professional services provided to the purchasers in connection with our divestitures.

(6) Tax effect calculated using the annualized effective statutory tax rate, excluding any non-recurring discrete items, which was 26.0% for Q3 2025, Q2 2025 Q1 2025 and Q3 2024 and 30.0% for Q2 2024 and Q1 2024.

Lumen Technologies, Inc.

Non-GAAP Cash Flow Reconciliation

(UNAUDITED)

($ in millions)

Actual QTD

Actual YTD

3Q25

3Q24

3Q25

3Q24

Net cash provided by operating activities (1)

2,511

2,032

4,176

3,645

Capital expenditures

(1,041

)

(850

)

(2,723

)

(2,316

)

Free Cash Flow (1)

1,470

1,182

1,453

1,329

Cash interest paid

308

306

984

877

Interest income

(18

)

(18

)

(60

)

(90

)

Unlevered Cash Flow (1)

1,760

1,470

2,377

2,116

Free Cash Flow (1)

1,470

1,182

1,453

1,329

Add back: Severance (2)

115

Add back: Consumer and other litigation (2)

—

Add back: Transaction and separation costs (2)

198

Add back: Modernization and Simplification (2)

162

—

362

—

Remove: Income from transition and separation services (2)

(34

)

(30

)

(115

)

(82

)

Free Cash Flow excluding cash Special Items (1)

1,661

1,198

1,806

1,560

Unlevered Cash Flow (1)

1,760

1,470

2,377

2,116

Add back: Severance (2)

115

Add back: Consumer and other litigation (2)

—

Add back: Transaction and separation costs (2)

198

Add back: Modernization and Simplification

162

—

362

—

Remove: Income from transition and separation services (2)

(34

)

(30

)

(115

)

(82

)

Unlevered Cash Flow excluding cash Special Items (1)

1,951

1,486

2,730

2,347

(1) Includes the impact of (i) $170 million voluntary pension contribution in Q3 2024 and (ii) $700 million in cash tax refund received in Q1 2024.

(2) Refer to Non-GAAP Special Items table for details of the Special Items impacting cash included above.

Lumen Technologies, Inc.

Adjusted EBITDA Non-GAAP Reconciliation

(UNAUDITED)

($ in millions)

Actual QTD

Actual YTD

3Q25

3Q24

3Q25

3Q24

Net loss

(621

)

(148

)

(1,737

)

(140

)

Income tax (benefit) expense

(192

)

(24

)

(470

)

Total other expense, net

697

298

1,595

417

Depreciation and amortization expense

674

707

2,075

2,198

Stock-based compensation expense

Goodwill impairment

—

628

—

Adjusted EBITDA

571

843

2,126

2,525

Add back: Severance (1)

119

Add back: Consumer and other litigation (1)

—

)

Add back: Net loss on sale of business (1)

—

Add back: Transaction and separation costs (1)

187

232

Add back: Modernization and simplification (1)

—

164

—

Add back (remove): Other (1)

)

Add back: Real estate transaction costs (2)

Adjusted EBITDA excluding Special Items

787

899

2,593

2,887

Net loss excluding Special Items (1)

(197

)

(133

)

(355

)

(298

)

Total revenue

3,087

3,221

9,361

9,779

Net loss margin

(20.1

(4.6

(18.6

(1.4

Net loss margin, excluding special items

(6.4

(4.1

(3.8

(3.0

Adjusted EBITDA margin

18.5

26.2

22.7

25.8

Adjusted EBITDA margin excluding special items

25.5

27.9

27.7

29.5

(1) Refer to Non-GAAP Special Items table for details of the Special Items included above.

Outlook

To enhance the information in our outlook with respect to non-GAAP metrics, we are providing a range for certain GAAP measures that are components of the reconciliation of the non-GAAP metrics. The provision of these ranges is in no way meant to indicate that Lumen is explicitly or implicitly providing an outlook on those GAAP components of the reconciliation. In order to reconcile each non-GAAP financial metric to GAAP, Lumen has to use ranges for the GAAP components that arithmetically add up to the non-GAAP financial metric. While Lumen believes that it has used reasonable assumptions in connection with developing the outlook for its non-GAAP financial metrics, it fully expects that the ranges used for the GAAP components will vary from actual results. We will consider our outlook of non-GAAP financial metrics to be accurate if the specific non-GAAP metric is met or exceeded, even if the GAAP components of the reconciliation are different from those provided in an earlier reconciliation.

Lumen Technologies, Inc.

2025 OUTLOOK (1) (2)

(UNAUDITED)

($ in millions)

Adjusted EBITDA Outlook

Twelve Months Ended December 31, 2025

Range

Low

High

Net loss

(1,455

)

(650

)

Income tax expense

215

Total other expense, net

1,500

1,300

Depreciation and amortization expense

2,900

2,700

Stock-based compensation expense

Adjusted EBITDA

3,200

3,400

Free Cash Flow Outlook

Twelve Months Ended December 31, 2025

Range

Low

High

Net cash provided by operating activities

5,300

5,700

Capital expenditures

(4,100

)

(4,300

)

Free Cash Flow

1,200

1,400

(1) For definitions of non-GAAP metrics and reconciliation to GAAP figures, see the above schedules and our Investor Relations website.

(2) Outlook measures in this chart (i) exclude the effects of Special Items, goodwill impairments, future changes in our operating or capital allocation plans, unforeseen changes in regulation, laws or litigation, and other unforeseen events or circumstances impacting our financial performance and (ii) speak only as of Oct 30, 2025. See “Forward-Looking Statements.”