Lumen Technologies reported a net loss of US$915 million for the second quarter of 2025, compared to a US$49 million net loss in the same period last year.

The company’s results included a non-cash goodwill impairment charge of US$628 million.

Diluted loss per share stood at US$0.92, versus US$0.05 a year earlier.

Adjusted EBITDA for the quarter was US$877 million, compared to US$1.011 billion in the second quarter of 2024, excluding the effects of special items.

Lumen generated US$570 million in net cash from operating activities, up from US$511 million last year.

Free cash flow was negative US$209 million, compared to negative US$156 million in the previous year, both excluding cash paid for special items.

Lumen also completed a US$2 billion bond offering, extending maturities to 2033 and reducing annual interest expense by about US$50 million.

🔗 Source: Lumen Technologies

🧠 Food for thought

1️⃣ Asset sales become financial lifeline for overleveraged telecom companies

Lumen’s $5.75 billion consumer fiber sale to AT&T demonstrates how companies use strategic divestitures to address unsustainable debt loads.

The company’s financial position shows the urgency behind this move: $17.3 billion in long-term debt against just $289 million in book value1.

The sale’s net proceeds of approximately $4.2 billion will directly pay down $4.8 billion in superpriority debt, reducing annual interest expenses by $300 million2.

This transaction follows a pattern where telecom companies shed profitable but capital-intensive consumer assets to focus resources on higher-margin enterprise services.

The deal also eliminates approximately $1 billion in annual capital expenditures related to consumer fiber, immediately improving Lumen’s cash flow position2.

2️⃣ Enterprise AI infrastructure drives massive capital reallocation in telecom