Lumen Technologies (LUMN) Q1 2025 Earnings
How Did LUMN Stock React to Q1 2025 Earnings?
S&P 500 over the same 30 days: +5.15%.
Did LUMN Beat Earnings? Q1 2025 Results
Yes. Lumen Technologies reported Q1 2025 earnings of $-0.13 a share on May 1, 2025, beating the $-0.27 consensus estimate by 51.1%. Revenue was $3.2B against a $3.1B estimate.
Lumen Technologies delivered a notable beat on both the top and bottom lines in Q1 2025, offering a measure of relief for investors tracking the telecom's multi-year transformation. The company posted an adjusted loss of $0.13 per share, clearing the consensus estimate of $0.27 by 51.15%, while revenue of $3.18 billion edged past expectations by 1.79%, though it still slipped 3.3% year-over-year as legacy product attrition continued to weigh on results. The most material driver of the earnings outperformance was accelerating traction in higher-value growth segments, with North America Enterprise Grow products rising 9.9% year-over-year to $834.00 million and fiber broadband revenue surging 22.9% to $209.00 million. A new partnership with Google to deliver direct fiber access to Google Cloud added strategic credibility to Lumen's AI infrastructure pivot, as did the recent launch of a network-edge cybersecurity solution targeting enterprise clients. Management reiterated its full-year 2025 outlook, guiding for Adjusted EBITDA of $3.20 billion to $3.40 billion and free cash flow of $700.00 million to $900.00 million.
- North America Enterprise Grow products revenue up 9.9% YoY to $834M, now 48% of N.A. Enterprise revenue
- Fiber Broadband revenue grew 22.9% YoY, fiber contribution to broadband revenue rose to 45%
- Public Sector revenue grew 14.7% YoY to $483M
- Fiber net subscriber additions of 39K in the quarter, reaching 1.116 million total
- 101K fiber-enabled location additions in the quarter, reaching 4.3 million total
- SG&A expenses declined 18% YoY due to operational efficiency improvements
- Lumen Connectivity Fabric adoption grew 23% in customers, 26% in fabric port sales, and 29% in services sold QoQ
“The team's focus on operational excellence delivered better than expected financial results this quarter. We continue to expand our network capacity and utilization and create a growth engine with our Lumen Digital platform. As we transform, we will drive more innovation on top of our world-renowned fiber network, delivering greater value for our enterprise customers, shareholders, and employees.”
Lumen Technologies CEO, on the earnings call
What Was Lumen Technologies's Outlook in Q1 2025?
Lumen reiterated its full-year 2025 financial outlook: Adjusted EBITDA of $3.2 to $3.4 billion, Free Cash Flow of $700 to $900 million, Net Cash Interest of $1.2 to $1.3 billion, Capital Expenditures of $4.1 to $4.3 billion, and Cash Income Taxes of $100 to $200 million. The outlook excludes effects of Special Items, future changes in operating or capital allocation plans, and unforeseen events. The full-year outlook implies net loss ranging from $850 million to $1.655 billion and net cash provided by operating activities of $4.8 billion to $5.2 billion.
LUMN YoY Financials
| Metric | Q1 2025 | Q1 2024 | Year over year |
|---|---|---|---|
| Revenue | $3.2B | $3.3B | −3.3% |
| Gross Profit | $1.5B | $1.6B | −8.7% |
| Operating Income | $107.0M | $45.0M | +137.8% |
LUMN Revenue by Segment
LUMN Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.