Crown Castle Reports 4.2% Revenue Decline and $173 Million Net Loss in Q2 2025

Crown Castle Inc. reported a decline in financial performance for the second quarter of 2025, with net revenues of $1.06 billion, down 4.2% from $1.11 billion in the same period last year. The decrease was primarily driven by a 5% drop in site rental revenues, which totaled $1.01 billion compared to $1.06 billion in the prior year. The company also experienced a net loss of $173 million for the first half of 2025, a significant decline from a net income of $562 million during the same period in 2024. This loss was largely attributed to a $1.1 billion loss from discontinued operations related to the pending sale of its Fiber Business.

In terms of operational metrics, Crown Castle's Adjusted Site Rental Gross Margin fell to $762 million from $819 million year-over-year, reflecting the impact of higher tower non-renewals, particularly due to the consolidation of T-Mobile and Sprint networks. The company reported a decrease in its customer base, with approximately 89% of site rental revenues derived from major carriers like T-Mobile, AT&T, and Verizon Wireless. The company’s employee headcount has also been reduced as part of its restructuring efforts, which included a 15% reduction in workforce initiated in 2023.

Strategically, Crown Castle is in the process of divesting its Fiber Business, having signed a definitive agreement to sell it for $8.5 billion in cash. This transaction is expected to close in the first half of 2026, pending regulatory approvals. The company has classified the Fiber Business as discontinued operations, which has led to significant accounting adjustments and a loss from disposal of $252 million in the second quarter. The restructuring plans initiated in 2023 and 2024 aim to enhance operational efficiencies and reduce costs, with a focus on aligning the company’s resources with its core tower operations.

Looking ahead, Crown Castle anticipates a continued decline in site rental revenues due to higher non-renewals and a decrease in long-term prepaid rent amortization. The company expects sustaining capital expenditures to remain around 1% of net revenues for the full year 2025. Despite the challenges, Crown Castle remains focused on maximizing cash flows from its existing tower portfolio and returning value to shareholders through dividends and share repurchases, although it has recently reduced its dividend payout to maintain financial flexibility. The company’s outlook reflects a cautious approach as it navigates the transition following the divestiture of its Fiber Business.