Qwest Corporation, a wholly-owned subsidiary of Lumen Technologies, Inc., reported a decline in financial performance for the third quarter of 2025, with total operating revenue of $1.161 billion, down 15% from $1.363 billion in the same period last year. For the nine months ending September 30, 2025, revenue decreased to $3.589 billion from $4.144 billion in 2024, reflecting a 13% decline. The company’s net income for the quarter was $176.4 million, compared to $737 million for the same period in 2024, indicating a significant drop in profitability.
The decrease in revenue was attributed to a decline in customer counts across various service categories, particularly in lower-speed broadband and voice services. The company reported approximately 1.3 million broadband subscribers as of September 30, 2025, a reduction attributed to customers migrating to Lumen's Quantum Fiber services. Additionally, Qwest's affiliate services revenue fell by 16% year-over-year, primarily due to reduced demand for legacy telecommunication services. Operating expenses for the quarter totaled $918.9 million, a slight increase from $865.6 million in the previous year, driven by higher costs associated with employee-related expenses and network services.
Strategically, Qwest is in the process of divesting its Mass Markets fiber-to-the-home business to AT&T for $5.75 billion, a transaction expected to close in early 2026, pending regulatory approvals. This divestiture is not anticipated to represent a strategic shift for the company, as it will continue to report the operating results of the business until the transaction is finalized. The assets and liabilities associated with this business have been classified as held for sale on the balance sheet, with total assets held for sale amounting to $2.689 billion as of September 30, 2025.
In terms of operational metrics, Qwest's cash and cash equivalents increased to $36 million from $26 million at the end of 2024. The company reported total assets of $17.855 billion, up from $17.362 billion at the end of the previous fiscal year. The company’s long-term debt remained stable at approximately $1.7 billion, with no maturities due in the next 12 months. Looking ahead, Qwest anticipates that its liquidity needs will be met through cash generated from operations and amounts due from Lumen Technologies, although ongoing macroeconomic challenges, including inflation and supply chain constraints, may impact future performance.
About QWEST CORP
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