GCI Liberty Reports $256.3 Million Revenue in Q1 2026, Net Earnings Drop to $18 Million

GCI Liberty, Inc. reported a revenue of $256.3 million for the first quarter of 2026, a decrease of $10 million compared to $266.3 million in the same period of 2025. The company's net earnings also fell to $18 million, down from $35 million year-over-year. This decline in profitability was attributed to various factors, including a decrease in consumer data revenue and increased operational costs. The basic net earnings per share for the quarter were $0.45, compared to $1.13 in the prior year.

The company's operating expenses for the quarter totaled $226.2 million, an increase from $208 million in the previous year. Notably, selling, general, and administrative expenses rose to $39 million from $30 million, largely due to stock-based compensation costs that increased significantly. Additionally, GCI Liberty incurred $3 million in acquisition costs related to its planned acquisition of Quintillion, which is expected to enhance its service offerings and market position.

In terms of operational metrics, GCI Liberty reported a decline in its cable modem subscribers, which fell to 150,500 from 154,700 a year earlier. However, the number of consumer wireless lines in service increased to 200,000, up from 195,500, indicating a positive trend in wireless service adoption. The company also noted a slight decrease in business wireless lines, which dropped to 7,700 from 8,700. These shifts reflect the company's ongoing efforts to adapt to changing consumer preferences and market conditions.

Strategically, GCI Liberty is pursuing growth through acquisitions, having agreed to acquire Quintillion for $310 million, subject to regulatory approval. This acquisition is part of a broader strategy to expand its service capabilities and geographic reach. Additionally, the company completed a rights offering in late 2025, raising approximately $300 million to support general corporate purposes, including potential acquisitions and capital expenditures.

Looking ahead, GCI Liberty remains focused on navigating economic challenges, including inflationary pressures and potential impacts from regulatory changes. The company anticipates recognizing $240 million in future revenue from unsatisfied performance obligations, indicating a positive outlook for revenue generation. However, management cautioned that ongoing economic conditions in Alaska, where the company primarily operates, could affect demand for its services and overall financial performance.