Liberty Latin America (LILA) Q1 2026 earnings summary

Executive summary

• Q1 2026 performance exceeded internal expectations, with strong subscriber growth, robust mobile momentum, and operational recovery, especially in Jamaica post-hurricane.

• Adjusted OIBDA and Adjusted FCF were ahead of expectations, with all segments contributing positively and net loss narrowing significantly year-over-year.

• Announced a $500 million preferred equity dividend at 9% and resumed share repurchases, reflecting confidence in future cash flow and capital return plans.

• GCI Liberty acquired a 6% stake, increasing John Malone's influence and signaling key shareholder support.

• Net loss attributable to shareholders improved to $(22.7) million from $(136.4) million year-over-year, driven by higher operating income and lower non-operating losses.

Financial highlights

• Q1 2026 revenue was $1,083 million, essentially flat year-over-year on a reported basis and down 1% rebased, with hurricane impacts and business model changes affecting results.

• Adjusted OIBDA was $405 million, flat year-over-year, with a margin of 37.4%.

• Adjusted free cash flow before distributions improved by $69 million year-over-year, reaching negative $64 million for the quarter.

• Operating income rose to $145 million, up 13% year-over-year, reflecting lower depreciation and amortization.

• Capital expenditures were $99.3 million, representing about 10% of revenue, with incremental hurricane recovery spend.

Outlook and guidance

• Management anticipates diminishing year-over-year headwinds and revenue growth for the remainder of 2026, with Jamaica's recovery expected to outperform previous guidance.

• Adjusted FCF is expected to be highly weighted to later in the year, with ongoing focus on organic growth, cash flow expansion, and cost reduction initiatives.

• Plans to complete the preferred stock distribution before the end of Q2 2026.