Qwest Corporation Reports 12% Revenue Decline in Q1 2025

Qwest Corporation, a wholly owned subsidiary of Lumen Technologies, Inc., reported a decline in financial performance for the first quarter of 2025, with total operating revenue of $1.22 billion, down 12% from $1.39 billion in the same period last year. The company’s net income also decreased, totaling $284.4 million compared to $333.5 million in the first quarter of 2024. The decrease in revenue was attributed to a reduction in customer counts across various service categories, particularly in lower-speed broadband and legacy voice services, as customers migrated to newer offerings.

Operating expenses for Qwest Corporation decreased by 7% to $834.9 million, down from $897.0 million in the prior year. The reduction in expenses was primarily driven by lower employee-related costs and a decrease in services purchased from affiliates. Notably, selling, general, and administrative expenses fell by 19% to $104.1 million, reflecting a decrease in bad debt expense and lower headcount. The company’s operating income for the quarter was reported at $388.5 million, a slight increase from $388.0 million in the previous year.

In terms of operational metrics, Qwest served approximately 1.5 million broadband subscribers as of March 31, 2025. The company continues to focus on expanding its fiber network, particularly through its Quantum Fiber buildout initiative. However, the company faced challenges related to increased construction labor rates and supply chain constraints, which have delayed some of its expansion targets. The filing also noted that Qwest's cash management arrangements with Lumen Technologies significantly influence its liquidity, with $900 million due from Lumen under a revolving promissory note.

Looking ahead, Qwest Corporation anticipates that ongoing macroeconomic pressures, including inflation and supply chain issues, may continue to impact its financial performance. The company is committed to enhancing its service offerings and improving operational efficiencies to adapt to changing market conditions. Despite the challenges, Qwest remains focused on its strategic initiatives, including the expansion of its fiber services and the transition of customers from legacy products to newer, more profitable offerings. The company’s management expressed confidence in its ability to navigate these challenges and maintain its market position.