LICT Corporation Reports Preliminary Unaudited Fourth Quarter and Fiscal Year 2025 Results

Broadband Services Remain the Primary Growth Driver of Telecommunications Operations

RYE, N.Y.--(BUSINESS WIRE)-- LICT Corporation (“LICT” or the “Company”; OTC Pink®: LICT), an integrated provider of broadband and voice services, today reported preliminary, unaudited financial results for the fourth quarter and full year 2025.

HIGHLIGHTS

• Fourth quarter revenue increased 8.8% year-over-year to $36.3 million
• EBITDA increased 9% to $13.9 million with EBITDA margin of approximately 38%
• Fiber network expanded 19% to 8,184 route miles in 2025
• LICT continues to serve our communities with the support from numerous government programs aimed to increase broadband and communications connectivity in rural areas across the United States (“U.S.”).
• Shareholder Charitable Contribution Program: Successfully completed at $100 per share for registered shareholders. LICT has contributed more than $11.2 million to charitable organizations through this program since its inception in 2016.
• Net leverage remained at 1.5x trailing 12-month EBITDA.

Joe Cecin, LICT’s Chief Operating Officer commented, “Solid operating performance in 2025 was a result of expanded broadband deployments across our rural service territories with revenue growth driven primarily by broadband subscriber growth, fiber construction activity and contributions from the Manti Telephone Company (MTC) acquisition completed in early 2025.” Cecin continued, “With our investments in middle mile and distribution fiber we are well-positioned to meet the build-out requirements of federal broadband programs while supporting long-term demand for high-speed connectivity across the LICT markets.”

Broadband services remain LICT’s primary growth engine and represent the fastest growing segment of our revenue base as customers migrate from legacy voice and video services to high-speed internet connectivity. Owned and operated fiber optic cable expanded 19.0% to 8,184 route miles over the same period.

During 2025, LICT invested $77.1 million in network infrastructure, with $24.5 million offset by government grant funding, supporting broadband expansion across underserved communities, for a net outlay of $52.6 million.

Stephen J. Moore, LICT’s Vice President of Finance added, “Management maintains a conservative balance sheet. The company ended the year with net leverage of approximately 1.5x trailing 12-month EBITDA, providing significant financial flexibility for continued infrastructure investment and opportunistic share repurchases.”

Results from Operations

Fourth quarter 2025

Revenues

Total revenues were $36.3 million in the fourth quarter of 2025 compared with $33.4 million in the fourth quarter of 2024.

• Non-regulated revenues rose 12.1% to $21.3 million, compared with $19.0 million in the fourth quarter of 2024.
• Regulated revenues were $15.0 million in the fourth quarter of 2025, versus $14.3 million in the fourth quarter of 2024. Fourth quarter of 2025 results also include $1.0 million of regulated revenues from Manti Telephone Company (MTC), which was included in our results for January 1, 2025.

EBITDA

EBITDA for the fourth quarter of 2025 increased $1.1 million, or 9.0%, to $13.9 million, compared to $12.8 million for the same period in 2024. EBITDA margin remained stable at approximately 38.4%, compared with 38.3% in the prior-year period. The improvement reflects higher revenues within the Company’s non-regulated operations, partially offset by higher operating expenses. As network expansion projects move from planning into active construction and service deployment, the Company expects operating leverage to support continued margin stability over time.

• Non-regulated EBITDA for the fourth quarter of 2025 increased $2.3 million, or 36.5%, to $8.6 million, compared with $6.3 million in the fourth quarter of 2024, primarily reflecting construction revenue recognized on a fiber-build project at one of our subsidiaries for a middle mile provider.
• Regulated EBITDA for the fourth quarter of 2025 was $5.3 million, compared to $6.5 million in the same period of 2024, reflecting a decrease of $1.2 million, or 18.4%. The decline was primarily driven by increased operating costs, including higher expenses for expanded staffing and professional services related to our operational expansion, as well as elevated repair and maintenance activity in the Company’s New Mexico and Utah operations.

Net Income and Earnings per Share

Net income for the fourth quarter of 2025 was $1.2 million, or $77 per share, compared with $7.0 million, or $427 per share, for the same period in 2024. The $4.9 million, or 70%, decrease in net income year over year primarily reflects a $6.5 million non-cash gain (or $301 per share) recorded in the fourth quarter of 2024 related to the revaluation of contingent consideration associated with the Manti acquisition.

Excluding this item, adjusted net income for the fourth quarter of 2024 was approximately $2.1 million, or $126 per share. On a comparable basis, adjusted net income declined by approximately $0.9 million, or 43%. This decrease primarily reflects higher depreciation expense related to recent infrastructure investments, along with increased operating and non-operating expenses, partially offset by higher revenues from the Company’s non-regulated operations.

Twelve months ended December 31, 2025

Revenues

Total revenues were $141.4 million for the year ended December 31, 2025, an increase of 5.4%, compared with $134.2 million for the year ended December 31, 2024.

• Non-regulated revenues were $81.0 million for the year ended December 31, 2025 compared with $75.2 million for the year ended December 31, 2024, an increase of $5.8 million, or 7.7%. The increase was driven primarily by $3.3 million of revenue recognized from a non-recurring fiber-build project at one of our subsidiaries. In addition, higher broadband service sales contributed $3.2 million of incremental revenue, partially offset by a $0.7 million decline in video and other services.
• Regulated revenues were $60.4 million for the year ended December 31, 2025, compared with $59.1 million for the year ended December 31, 2024, an increase of $1.3 million, or 2.2%. The year ended December 31, 2025 results also include regulated revenues of $3.6 million from MTC, which was acquired on January 1, 2025. This was offset by reductions in voice service revenues consistent with broader industry trends. Additionally, interstate access revenues declined due to lower cost broadband services.

EBITDA

EBITDA for the year ended December 31, 2025 was $56.4 million, compared with $55.4 million in the prior-year. EBITDA margin was approximately 39.9%, compared with 41.2% in 2024. The increase in EBITDA primarily reflects additional revenue from a fiber-build project at one of the Company’s subsidiaries, partially offset by higher operating costs, including increased personnel and professional services expenses associated with operational expansion. The decline in EBITDA margin reflects the mix of project-based construction revenue and higher operating costs associated with network expansion during the year.

• Non-regulated EBITDA for the year ended December 31, 2025 increased to $32.4 million, compared with $27.4 million in the prior year, driven primarily by construction revenue recognized on a fiber-build project at one of our subsidiaries.
• Regulated EBITDA for the year ended December 31, 2025 was $24.0 million, compared with $28.0 million in the same period of 2024, a decrease of $4.0 million, or 14.3%. The decline primarily reflects higher operating costs, including expanded staffing, professional services related to operational growth, and increased repair and maintenance activity in the New Mexico and Utah operations.

The following table is a reconciliation of EBITDA:

		Three Months Ended December 31,						Twelve Months Ended December 31,
(in thousands)		2025			2024			2025			2024
Operating profit		$	2,652		$	4,453		$	20,584		$	26,146
Adjustments:
Corporate expenses			2,081			1,278			6,412			4,756
Charitable contributions			1,017			543			1,024			543
Depreciation and amortization			8,180			6,543			28,418			23,913
Total adjustments			11,278			8,364			35,854			29,212
EBITDA (from operations)		$	13,930		$	12,817		$	56,438		$	55,358

Net Income and Earnings per Share

Net income for the twelve months ended December 31, 2025 was $12.2 million, or $771 per share, compared with $20.6 million, or $1,235 per share, for the same period in 2024. The $8.4 million, or 40.8%, decrease in net income primarily reflects a $6.5 million one-time non-cash gain recorded in 2024 related to the revaluation of contingent consideration associated with the Manti acquisition.

Excluding this one-time gain, adjusted net income for 2024 was $14.1 million, or $1,007 per share. On a comparable basis, adjusted net income for 2025 declined $1.9 million, or 13.5%, primarily due to a $12.7 million increase in total costs and expenses, largely driven by:

• Depreciation and amortization expenses increased $4.5 million associated with recent infrastructure investments;
• Cost of revenue increased $4.1 million reflecting expanded staffing, professional services, and higher repair and maintenance activity in the Company’s New Mexico and Utah operations;
• General and administrative costs and corporate expenses increased; and
• Charitable contributions were $1.0 million.

These higher operating and non-cash expenses were partially offset by a $7.2 million increase in revenue, driven by continued broadband growth in Utah and Kansas and fiber-build construction revenue recognized at one of the Company’s subsidiaries. The Company also recorded a $4.1 million decrease in its provision for income taxes, primarily reflecting tax benefits associated with 100% bonus depreciation on qualifying capital expenditures.

Liquidity and Balance Sheet Highlights

Liquidity

As of December 31, 2025, the Company had $63.9 million outstanding under its $100 million facility, with an average interest rate of 6.3%.

• Net debt totaled $80.3 million as of December 31, 2025, compared to $57.1 million as of December 31, 2024.
• Debt leverage ratio, calculated as net debt divided by trailing 12-month EBITDA after Corporate Expenses, was 1.5x as of the fiscal year ended 2025.

Capital Expenditures

Gross capital expenditures totaled $25.7 million in the fourth quarter of 2025, compared to $25.0 million in the prior-year period. For the twelve months ended December 31, 2025, gross capital expenditures were $77.1 million, compared with $68.5 million in the prior year period. Fourth quarter investments were focused on the continued build-out of E-ACAM broadband infrastructure and early-stage activities associated with ReConnect III and IV programs.

During the twelve months ended December 31, 2025, the Company received $24.5 million in grant proceeds related to these network expansion initiatives. After giving effect to these grant reimbursements, net capital expenditures for the year were approximately $52.6 million. In addition, the Company also continued to invest in fixed wireless network expansion through its Sound Broadband subsidiary.

These investments remain essential to meeting the Company’s regulatory obligations and advancing the availability of high-speed broadband services across LICT’s rural service areas.

Other Assets & Investments

In addition to its core operations, the Company owns various complementary assets and investments, including spectrum licenses and minority interests in other entities. Management currently estimates that these assets collectively have a value in excess of $50 million.

Rural Broadband Expansion Accelerates: A Key Driver of Growth

Government Programs

LICT continues to benefit from federal and state programs that support the expansion of high-speed broadband infrastructure in rural markets. The Company participates in the FCC’s Enhanced Alternative Connect America Cost Model (“E-ACAM”) program, which supports broadband deployment across LICT’s rural service territories.

• E-ACAM provided $37.2 million in annual support during 2024 and 2025. Following a one time regulatory revision to the E-ACAM support levels, based on the FCC’s revised eligible locations list completed in December 2025, support is expected to increase to $40.4 million in 2026, decline modestly in 2027, and stabilize at approximately $35.4 million annually from 2028 through 2038 for total expected support of approximately $541.7 million for the 15 year period ended 2038.
• The Company also received approximately $8.3 million in state Universal Service Fund support in 2025, supporting broadband deployment in New Mexico, California, Kansas, and Utah.
• In addition, the Company has been awarded $157.5 million in USDA ReConnect III and IV grants supporting seven fiber-to-the-home broadband projects across Kansas, California, and New Mexico. These projects have a total expected cost of $171.2 million, of which LICT’s required contribution is approximately $13.7 million. Construction on these projects is underway, with customers already being connected in certain markets. Government funding programs materially reduce the Company’s capital requirements associated with rural broadband deployment and support the continued expansion of high-speed broadband across LICT’s service territories.

Broadband Deployment & Subscriber Growth

Broadband services remain the primary growth driver of LICT's telecommunications operations.

• At December 31, 2025, LICT owned and operated 8,184 miles of fiber optic cable, an increase of 1,316 miles, or 19%, compared with 6,868 at December 31, 2024. The Company also operates 8,942 miles of copper cable, 850 miles of coaxial cable, 104 towers and 301 spectrum licenses (1,216 million MHZPoP).
• Total broadband connections increased 3.0% year over year to 50,978, reflecting continued demand for high-speed connectivity across LICT’s rural service territories. Broadband services now represent approximately two-thirds of total revenue-generating units, underscoring the Company’s ongoing transition toward data-driven services.

The table below provides a comparative summary of the Company’s subscriber and line metrics as of December 31, 2025, versus December 31, 2024.

		December 31, 2025		December 31, 2024		Increase (Decrease)			% Increase (Decrease)
Broadband lines		43,976		42,497		1,479			3.5	%
Fixed Wireless subscribers		7,002		7,000		2			—	%
Total Broadband		50,978		49,497		1,481			3.0	%
Voice lines
ILEC		16,203		15,871		332			2.1	%
Out of franchise		5,142		6,113		(971	)		(15.9	)%
Total Voice lines		21,345		21,984		(639	)		(2.9	)%
Video subscribers		3,254		3,467		(213	)		(6.1	)%
Total revenue generating units		75,577		74,948		629			0.8	%

Strategic Initiatives

The Company continues to focus on improving the capital efficiency of its network investments. By incorporating fixed wireless technologies and alternative access solutions alongside fiber deployment, LICT is able to expand broadband coverage while reducing overall deployment costs in certain markets.

• Sound Broadband Inc. - LICT is selling 19% of Sound Broadband to its management, subject to regulatory and financial requirements. Sound Broadband continues expanding fixed wireless broadband services across LICT’s operating territories, including Iowa, Wisconsin, New Mexico, California, Kansas, and Utah. Fixed wireless technology complements the Company’s fiber network by providing a cost-effective solution for delivering high-speed broadband in certain rural and hard-to-serve areas.
• Returning Cash to Shareholders - For the year ended December 31, 2025, the Company repurchased 847 shares of its common stock for a total of $10.6 million. As of December 31, 2025, LICT had 15,326 shares outstanding.
• Shareholder Designated Charitable Contribution Program - In the fourth quarter of 2025, LICT Corporation’s Board of Directors approved the annual Shareholder Designated Charitable Contribution Program. Under the program, the Company contributed $100 per share to charitable organizations designated by registered shareholders of record as of December 15, 2025. For 2025, LICT contributed approximately $1.0 million to shareholder-designated 501(c)(3) organizations. Since the program’s inception in 2016, the Company has contributed more than $11.2 million to charities designated by its shareholders.

Inorganic Growth - To repeat what we have stated in the past, we are following Warren Buffet and Berkshire Hathaway’s criteria for acquisitions.

- At least $5 million of pre-tax earnings
- Consistent earning power
- Good return on equity with little or no debt
- Management in place
- Simple business
- An offering price

We are looking at other regulated industries such as natural gas (local distribution), water companies and even generators/distributors of electricity.

We are also exploring the opportunity to buy manufacturing companies where we have knowledge. If you know of any, let us know.

LICT Corporation Statements of Operations (Unaudited)
		Three Months Ended December 31,								Twelve Months Ended December 31,
(in thousands, except share data)		2025				2024				2025				2024
Revenues		$	36,303			$	33,371			$	141,398			$	134,241
Cost and expenses:
Cost of revenue, excluding depreciation and amort.			18,913				17,841				72,114				67,994
General and administrative costs at operations			3,460				2,712				12,846				10,889
Corporate office expenses			2,081				1,278				6,412				4,756
Charitable contributions			1,017				543				1,024				543
Depreciation and amortization			8,180				6,544				28,418				23,913
Total costs and expenses			33,651				28,918				120,814				108,095
Operating profit			2,652				4,453				20,584				26,146
Other income (expense)
Investment income			66				55				956				1,528
Interest expense			(1,455	)			(945	)			(5,199	)			(4,188	)
Unrealized gain/(loss) on investment			364				334				333				(454	)
Equity in earnings of affiliated companies			—				(183	)			(66	)			42
Other			71				6,891				23				6,063
Total other income (expense)			(954	)			6,152				(3,953	)			2,991
Income from operations before income taxes			1,698				10,605				16,631				29,137
Provision for income taxes			(503	)			(3,624	)			(4,443	)			(8,522	)
Net income		$	1,195			$	6,981			$	12,188			$	20,615
Basic and Diluted Weighted-Average Shares			15,422				16,368				15,799				16,686
Earnings Per Share (excluding one-time events)		$	77			$	427			$	771			$	1,235
From continuing operations (excluding one-time events)		$	77			$	126			$	771			$	941
Actual shares outstanding at end of period			15,326				16,173				15,326				16,173
Highlights:
Capital expenditures		$	25,745			$	25,030			$	77,130			$	68,520
Government grants received		$	7,038			$	5,236			$	24,505			$	5,236

LICT Corporation Balance Sheet (Unaudited)
(in thousands)		December 31, 2025			December 31, 2024
Assets:
Current assets:
Cash and cash equivalents		$	11,684		$	9,546
Restricted cash			668			1,835
Accounts receivable, less allowances of $253 and $190, respectively			10,361			7,834
Grants receivable			2,539			12,759
Materials and supplies			11,822			12,581
Prepaid expenses and other current assets			4,516			4,681
Total current assets			41,590			49,236
Property, plant, and equipment, net			219,446			179,910
Goodwill			50,614			48,251
Other intangibles			33,611			34,100
Investments in affiliated companies			6,202			6,723
Other assets			10,790			10,836
Total assets		$	362,253		$	329,056
Liabilities:
Current liabilities:
Accounts payable		$	8,441		$	8,908
Accrued interest payable			541			105
Accrued liabilities			15,814			9,227
Current maturities of long-term debt			7,731			80
Total current liabilities		$	32,527		$	18,320
Long-term debt			84,216			66,556
Deferred income taxes			31,402			31,289
Other liabilities			8,895			9,301
Total liabilities			157,040			125,466
Total shareholders’ equity			205,213			203,590
Total liabilities and shareholders’ equity		$	362,253		$	329,056

About LICT Corporation

LICT Corporation and Subsidiaries (OTC Pink®: LICT) is a diversified broadband and communications company with operations in California, Kansas, Iowa, New Mexico, Oregon, Utah and Wisconsin. The company also holds investments in wireless spectrum, including MachTen Inc., Aureon Network Services, CVIN LLC and the Kansas Fiber Network. LICT’s strategy is to serve customers with fiber, wireless and next-generation solutions and bring advanced connectivity services not only to rural areas, but also to adjacent urban markets, expanding its footprint and closing the digital divide. More information is available at lictcorp.com.

Cautionary Note Concerning Forward Looking Statements

This release contains certain forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including without limitation anticipated financial results, financing, capital expenditures and corporate transactions. It should be recognized that such information is based upon certain assumptions, projections and forecasts, including without limitation, business conditions and financial markets, regulatory and other approvals, and the cautionary statements set forth in documents filed by LICT on its website, www.lictcorp.com. As a result, there can be no assurance that any possible transactions will be accomplished or be successful, or that financial targets will be met. Such forward-looking information is subject to uncertainties, risks and inaccuracies, which could be material.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260319162481/en/

Joe Cecin

Chief Operating Officer

(914) 921-8821

Stephen J. Moore

Vice President - Finance

(914) 305-3312

Source: LICT Corporation