Lumen Technologies Reports Decline in Revenue and Increased Losses in Q2 2025

Lumen Technologies, Inc. reported a decline in financial performance for the second quarter of 2025, with operating revenue of $3.09 billion, down 5% from $3.27 billion in the same period last year. For the first half of 2025, revenue totaled $6.27 billion, a decrease of 4% compared to $6.56 billion in the first half of 2024. The company experienced a net loss of $915 million for the quarter, compared to a loss of $49 million in the prior year, resulting in a basic and diluted loss per share of $0.92. The significant loss was attributed to a goodwill impairment charge of $628 million related to the planned divestiture of its Mass Markets fiber-to-the-home business.

Operating expenses increased by 18% to $3.70 billion for the second quarter, primarily driven by the goodwill impairment and higher selling, general, and administrative expenses. The company reported total operating expenses of $6.77 billion for the first half of 2025, up 6% from $6.38 billion in the previous year. The increase in expenses was partially offset by a decrease in costs associated with services and products, which fell slightly to $1.62 billion for the quarter.

In terms of strategic developments, Lumen announced a definitive agreement on May 21, 2025, to sell its Mass Markets fiber-to-the-home business in 11 states to AT&T for $5.75 billion in cash. This transaction is expected to close in the first half of 2026, subject to regulatory approvals. The divestiture is part of Lumen's strategy to streamline operations and focus on its core business segments. As of June 30, 2025, the company had approximately 2.5 million broadband subscribers in its Mass Markets segment, which saw a revenue decline of 13% year-over-year.

Operationally, Lumen reported a total of 1,026,140,909 shares of common stock outstanding as of July 29, 2025. The company continues to face challenges in its Business segment, with revenue decreasing by 3% to $2.49 billion for the second quarter. The decline was driven by reduced demand for traditional services, although the "Grow" category, which includes emerging products, saw a 6% increase in revenue. The company also reported a total employee headcount of approximately 24,000 as of June 30, 2025.

Looking ahead, Lumen anticipates that the divestiture will enhance its financial flexibility and reduce annual interest expenses by approximately $300 million. The company plans to use the proceeds from the sale to pay down debt, which is expected to improve its overall financial position. However, Lumen also acknowledged ongoing macroeconomic pressures, including inflation and supply chain challenges, which could impact future performance. The company remains focused on executing its Quantum Fiber buildout and enhancing its service offerings to meet evolving customer demands.