Liberty Broadband (LBRDA) investor relations material

Executive summary

• Reported revenue of $261 million and Adjusted OIBDA of $96 million for Q2 2026, with Free Cash Flow of $59 million over the trailing 12 months.

• Announced a new capital allocation policy, including a quarterly dividend of $60 million per year starting in December.

• GCI remains a stable, cash-generative business, with capital intensity expected to decline after 2026.

• The Quintillion acquisition is expected to enhance network resilience and Free Cash Flow, with $20 million in run rate synergies anticipated over 24 months post-closing.

• Report covers the quarter ended June 30, 2026, following the divestiture of GCI and pending merger with Charter Communications.

Financial highlights

• Q2 revenue was $261 million, flat year-over-year; Adjusted OIBDA declined 11% year-over-year to $96 million.

• Free Cash Flow for the trailing 12 months was $59 million, down from the prior year due to higher CapEx and lower OIBDA.

• Net loss from continuing operations was $2,125 million for Q2 2026, compared to net income of $356 million in Q2 2025.

• The loss was driven by a $3.0 billion impairment on the Charter investment due to a sustained decline in Charter's share price.

• Revenue from Charter (equity method) decreased to $13.5 billion in Q2 2026 from $13.8 billion in Q2 2025.

Outlook and guidance

• Capital intensity is expected to peak in 2026, then decline in 2027 and 2028, returning to historical levels and boosting cash flow.

• The Quintillion transaction is expected to close in 2026, with $20 million in run rate synergies over 24 months and immediate Free Cash Flow accretion.

• Management expects available liquidity and proceeds from Charter share repurchases to cover corporate expenses and debt service for the foreseeable future.

• Dividend of $15 million per quarter to begin in Q4 2026, representing about half of next year's Free Cash Flow.

• The company remains subject to contractual restrictions while the Charter merger is pending.