Qwest Corporation Reports 13% Revenue Decline in Q2 2025

Qwest Corporation, a wholly owned subsidiary of Lumen Technologies, Inc., reported a decline in financial performance for the second quarter of 2025, with total operating revenue of $1.206 billion, down 13% from $1.389 billion in the same period last year. For the first half of 2025, revenue also decreased to $2.428 billion from $2.781 billion in the prior year. The company attributed this decline primarily to a reduction in customer counts across various service categories, particularly in lower-speed broadband and legacy voice services, as well as the relinquishment of funding from the FCC's Rural Digital Opportunity Fund.

Operating expenses for Qwest Corporation totaled $829.9 million for the second quarter, a decrease from $1.663 billion in the previous year, while operating income was reported at $377.5 million, compared to $765 million in the same quarter of 2024. The decrease in expenses was largely driven by lower employee-related costs and a reduction in depreciation and amortization expenses, as certain assets were classified as held for sale in connection with the planned divestiture of the Lumen Mass Markets fiber-to-the-home business to AT&T for $5.75 billion, expected to close in the first half of 2026.

As of June 30, 2025, Qwest served approximately 1.4 million broadband subscribers, a decrease from previous counts, reflecting a shift in customer preferences towards newer offerings such as Quantum Fiber. The company has also classified $2.691 billion in assets as held for sale, which includes property, plant, and equipment related to the divestiture. The total assets of Qwest Corporation increased to $17.828 billion from $17.362 billion at the end of 2024, primarily due to the reclassification of these assets.

Looking ahead, Qwest Corporation anticipates that the divestiture will not represent a strategic shift but will allow for a more focused approach on its core business operations. The company is also navigating macroeconomic challenges, including inflation and supply chain constraints, which have impacted operational efficiency and customer decision-making. Despite these challenges, Qwest remains committed to enhancing its service offerings and expanding its fiber network, particularly through the Quantum Fiber buildout, while managing its financial obligations and maintaining liquidity.