Liberty Broadband (LBRDA) Q1 2026 earnings summary

Executive summary

• Announced definitive agreement to acquire Quintillion for $310 million in cash, plus up to $50 million in reimbursed CapEx and potential earn-outs, aiming to enhance network scale and resilience in Alaska.

• Invested $107 million to acquire Searchlight Capital Partners' equity interest in Liberty Latin America, with plans to acquire additional shares from Dr. John Malone and affiliates.

• Completed the divestiture of GCI Liberty as a condition to the pending merger with Charter, resulting in GCI Liberty being presented as a discontinued operation from July 14, 2025.

• Entered into a definitive agreement for Charter to acquire the company, with all necessary shareholder approvals obtained and closing expected to coincide with Charter's transaction with Cox Enterprises.

• Ongoing monthly repurchases of Charter shares under amended agreements to maintain liquidity and manage equity caps during the merger period.

Financial highlights

• Consolidated cash, equivalents, and restricted cash totaled $448 million at quarter end; total principal debt was approximately $1 billion.

• Net earnings from continuing operations were $203 million for Q1 2026, down from $234 million in Q1 2025.

• Adjusted OIBDA was $93 million, down 18% year-over-year, impacted by $13 million in mostly non-recurring items.

• Free cash flow for the trailing twelve months was $99 million, down 13% year-over-year due to higher CapEx.

• Net borrowings of $810 million on the Margin Loan Facility in Q1 2026 to fund the repurchase of exchangeable debentures.

Outlook and guidance

• CapEx, including Quintillion, expected to peak in 2026 at approximately $290 million, then return to historical 15%-20% of revenue.

• Liquidity expected to be supported by Charter share repurchases, debt facilities, and loans from Charter.

• Projected uses of cash for the remainder of 2026 include debt service, interest payments, preferred stock dividends, and transaction-related expenses.

• Quintillion acquisition expected to be accretive to free cash flow in the first year after closing.

• Business expected to remain stable with a focus on network investment, rural expansion, and customer value.