Companies /Communication Services

Lumen Technologies Inc

NYSE: LUMN Telecom Services
$6.15
â–² $0.06 (+1.00%) today
Markets open · 2:23pm ET

Q2 2025 Earnings

Reported Jul 31, 2025, 4:15pm ET · SEC source
$-0.03
Beat +88.70%
EPS · est. $-0.27
$3.1B
Miss −0.68%
Revenue · est. $3.1B
+23.7%
Beating market
LUMN vs S&P since report
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
−16%−8%0+8%Jul 31Aug 1report 4:15pm ETearnings−1.6%−11.6%
−16%−8%0+8%Jul 31Aug 1earnings−1.6%−11.6%
LUMN −11.6%S&P 500 −1.6%
−16%−8%0+8%Jul 31Aug 1report 4:15pm ETearnings−1.9%−11.6%
−16%−8%0+8%Jul 31Aug 1earnings−1.9%−11.6%
LUMN −11.6%NASDAQ −1.9%
−16%−8%0+8%Jul 30Aug 8report 4:15pm ETearnings+1.0%−12.4%
−16%−8%0+8%Jul 30Aug 8earnings+1.0%−12.4%
LUMN −12.4%S&P 500 +1.0%
−16%−8%0+8%Jul 30Aug 8report 4:15pm ETearnings+2.0%−12.4%
−16%−8%0+8%Jul 30Aug 8earnings+2.0%−12.4%
LUMN −12.4%NASDAQ +2.0%
−16.63%
Day of report
+1.08%
Next session
+1.35%
One week
+27.22%
30 days

S&P 500 over the same 30 days: +3.54%.

Did LUMN Beat Earnings? Q2 2025 Results

Lumen Technologies delivered a sharply better-than-feared adjusted result in Q2 2025, even as the broader turnaround story remained a work in progress. The telecom company posted an adjusted loss of $0.03 per diluted share, well ahead of the consensus estimate of a $0.27 loss, an 88.70% beat, while revenue of $3.09 billion came in just 0.68% below expectations and declined 5.4% year-over-year, partly weighed down by approximately $46 million in one-time RDOF revenue givebacks. The headline GAAP net loss swelled to $915 million, driven by a $628 million non-cash goodwill impairment tied to its Mass Markets unit following the announced $5.75 billion sale of roughly 95% of its Quantum Fiber consumer business to AT&T, a deal that sharpens Lumen's enterprise focus and is expected to reduce gross leverage from 4.9x to approximately 3.9x. The company's Private Connectivity Fabric pipeline has now reached nearly $9 billion in deals signed, underscoring its AI infrastructure ambitions, and management raised its full-year free cash flow guidance to $1.20 to $1.40 billion from a prior range of $0.70 to $0.90 billion, citing an anticipated $400 million tax refund and lower capital expenditures.

Key Takeaways
  • Public Sector revenue grew 8.2% YoY to $486 million
  • Fiber Broadband revenue grew 19.9% YoY
  • N.A. Enterprise Grow products revenue grew 8.5% YoY
  • Modernization and simplification cost-reduction target raised from $250M to $350M exit run-rate
  • Fiber broadband subscribers grew to 1.15 million from 992,000 a year ago
  • NaaS adoption strong: customers +35% Q/Q, fabric port sales +31% Q/Q, services sold +22% Q/Q

“Our second quarter results underscore the momentum of our transformation strategy and the discipline of our execution. We are delivering on our financial milestones and building a stronger, more modern company. With the sale of our consumer fiber business, successful debt refinancing, and continued modernization gains, we're laying our foundation for future revenue growth — we are playing to win.”

Lumen Technologies CEO, on the earnings call

Forward Guidance & Outlook

Lumen maintained its full-year 2025 Adjusted EBITDA guidance of $3.2 to $3.4 billion but now expects to come in near the high end, driven by better modernization and simplification progress, improved cost controls, and improved performance from legacy services. Free Cash Flow guidance was significantly raised to $1.2 to $1.4 billion from the prior $0.7 to $0.9 billion, primarily driven by an anticipated $400 million tax refund from recent tax legislation, lower capital expenditures, better Adjusted EBITDA performance, and lower interest expense. Capital expenditures are expected near the low end of the $4.1 to $4.3 billion range due to project timing. Net cash interest is expected near the low end of $1.2 to $1.3 billion driven by recent debt refinancings. Cash income taxes shifted to a refund of ($400) to ($300) million from the prior outflow of $100 to $200 million. The company also increased its 2025 exit run-rate cost-reduction target from $250 million to $350 million.

LUMN YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$900.0M$1.8B$2.7B$3.3B$3.1BRevenue
$0$900.0M$1.8B$2.7BRevenue

LUMN Revenue by Segment

Grow$1.1B+6.0%
Harvest$554.0M−2.0%
Large Enterprise$732.0M−2.3%
Wholesale$690.0M−5.0%
Nurture$634.0M−15.0%
Mass Markets$602.0M−12.8%
Mid-Market Enterprise$500.0M−11.0%
Public Sector$486.0M+8.2%

LUMN Revenue by Geography

North America$3.0B

Figures from SEC filings and company reports. Not investment advice.