MachTen Reports Financial Results for the Second Quarter of 2025

Rhea-AI Summary

MachTen (OTC: MACT) reported Q2 2025 financial results, with revenue of $4.22 million (vs $4.25M in Q2 2024) and net income of $640,000 (vs $1.1M). EBITDA reached $2.1 million, down from $2.4M year-over-year.

The company continues executing its fiber investment strategy, with year-to-date capital investments of $3.7 million, adding over 50 fiber route-miles and 1,000 passings. MachTen serves approximately 1,800 fiber broadband customers across 9,500 passings and expects to reach ~3,500 new fiber passings in 2025 under the Enhanced-ACAM program.

The company is progressing with ReConnect (RC3) projects to improve connectivity to >2,500 locations over ~500 miles, with an estimated total multi-year cost of ~$85 million. As of June 30, 2025, MachTen had $1.73 million in cash and $17 million in outstanding debt.

Positive

• None.

Negative

• Revenue declined slightly to $4.22M from $4.25M year-over-year
• Operating profit decreased to $1.3M from $1.7M due to higher depreciation and operating expenses
• Net income dropped to $640,000 from $1.1M in the prior year period
• EBITDA declined to $2.1M from $2.4M year-over-year

TRAVERSE CITY, Mich., Sept. 03, 2025 (GLOBE NEWSWIRE) -- MachTen, Inc. (OTC: MACT) today announced financial results for the second quarter and six months ended June 30, 2025.

“We continue to execute our fiber-based investment plan, while improving the operational foundation for sustained growth,” said Dan Miller, Chief Executive Officer. “Our team remains focused on establishing the most reliable broadband network in the communities we serve and driving long-term value for customers and shareholders.”

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Second Quarter 2025 Financial Highlights

• Revenue: $4.22 million vs $4.25 million in 2Q24, as subscriber gains in our fiber-optic footprint were offset by declines in voice services provided on the legacy copper network. New orders for fiber internet in July and August exceed 350 customers, with additional pre-orders of more than 250 in areas currently under construction.
• Operating Profit: $1.3 million vs. $1.7 million in 2Q24, driven by increased depreciation expense of $145k and increased operating expenses of $140k.
• Net Income: $640,000 vs. $1.1 million in the prior year period.
• EBITDA (Non-GAAP): $2.1 million vs. $2.4 million. See “Non-GAAP Financial Measures.”

Year-to-Date 2025 (Six Months Ended June 30, 2025)

• Revenue: $8.35 million vs. $8.42 million in 2024.
• Operating Profit: $2.42 million vs. $2.85 million.
• Net Income: $1.23 million vs. $1.65 million.
• EBITDA (Non-GAAP): $4.2 million vs. $4.3 million.

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Strategic & Operational Highlights

• Fiber Build & Passings: Year-to-date capital investments of approximately $3.7 million, adding more than 50 fiber route-miles and 1,000 passings in the first half of 2025.
  
  As of June 30, 2025, Michigan Broadband serves approximately 1,800 fiber broadband customers across 9,500 passings; take-rates are expected to improve as build areas mature.
• E-ACAM Program: We reiterate our expectation to reach ~3,500 new fiber passings in 2025 under the Enhanced-ACAM program, bringing total E-ACAM locations served to approximately ~4,500 by year-end 2025, or about 50% of the amount required by the end of 2028.
• ReConnect (RC3) Projects: Construction continued on RC3 grant projects that will ultimately improve connectivity to >2,500 locations over ~500 miles, with an estimated total multi-year cost of ~$85 million, inclusive of up to $16 million in matching investment by MachTen.
• Network Modernization: The core switching and routing upgrade initiated in early 2025 is progressing, designed to enhance reliability, throughput, and redundancy as fiber replaces legacy copper-based DSL. The impact to our customers service has already been significant, and will continue to improve in the 2^nd half of 2025.
• Operating Services Agreement (OSA) with UP Fiber, Inc.: Michigan Broadband is finalizing an OSA with UP Fiber related to its acquisition of AT&T’s wireline assets in Michigan’s Upper Peninsula. Under the OSA, Michigan Broadband will provide customer service, billing, sales, marketing, and administrative support to UP Fiber and benefit from increased network capacity.
  

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Balance Sheet & Liquidity

• Cash & Cash Equivalents: $1.73 million as of June 30, 2025.
• Debt: MachTen’s $20 million term loan with the National Cooperative Services Corporation (NCSC), executed in August 2024, had $17 million outstanding at a weighted average interest rate of approximately 5.5% as of June 30, 2025.
• Capital Allocation: We remain disciplined, prioritizing fiber builds with the highest expected returns and programs with contractual support.
  

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Non-GAAP Financial Measures

EBITDA is a non-GAAP financial measure commonly used in the telecommunications industry as it eliminates differences in financial, capitalization, and tax structures. We believe EBITDA trends are a valuable indicator of whether our operations produce sufficient operating cash flow to fund working capital needs, service debt, and fund capital expenditures.

We define EBITDA as Operating Profit from Continuing Operations plus depreciation and amortization expense and corporate expenses. A reconciliation of EBITDA to the most directly comparable GAAP measure will be provided in our supplemental materials for the period.

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About MachTen, Inc.

MachTen is a holding company for Michigan Broadband Services, Upper Peninsula Telephone Company (UPTC), Michigan Central Broadband Company (MCBC), and Alpha Enterprises Ltd. MachTen’s subsidiaries provide broadband internet access and communications services, including voice, video, home automation, and managed hosting services. Investors should refer to filings posted at www.machteninc.com for additional information.

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Forward-Looking Statements

This press release contains “forward-looking statements,” including statements regarding expected build activity, program milestones, projected passings, subscriber growth, capital investments, regulatory developments, and anticipated financial performance. Forward-looking statements are based on current expectations and assumptions and involve risks and uncertainties that could cause actual results to differ materially. Factors that could cause such differences include, among others, changes in economic conditions, regulatory or legal developments, the availability and cost of labor and materials, program timing and eligibility, competitive dynamics, and other risks described in our public disclosures. MachTen undertakes no obligation to update forward-looking statements, except as required by law.

MachTen, Inc. and Subsidiaries
Condensed Consolidated Statements of Financial Condition
(in thousands, except per share data)
		30-Jun				December 31,
			2025				2024
		(Unaudited)				(Audited)
Assets
Cash and cash equivalents		$	1,728			$	1,683
Accounts receivable			1,033				1,353
Materials and supplies			3,490				3,013
Other current assets			534				467
Current assets		$	6,785			$	6,516
Property, plant and equipment, net			34,384				32,402
Right-of-use assets, net			544				544
Goodwill			100				100
Other noncurrent assets			92				129
Total assets		$	41,905			$	39,691
Liabilities and Shareholders' Equity
Current liabilities:
Trade accounts payable		$	1,424			$	2,238
Accrued liabilities			1,741				952
Current operating lease liability			60				105
Total current liabilities			3,226				3,295
Deferred income taxes			3,864				3,867
Term Loan (NCSC)			17,000				16,000
Preferred Stock			514				514
Long term operating lease liability			572				526
Other noncurrent liabilities			166				159
Total Long-Term Liabilities			22,116				21,066
Shareholders' equity
Common Stock			3				3
Additional paid-in capital			10,530				10,530
Unearned Compensation			(317	)			(317	)
Retained earnings			6,349				5,114
Total shareholders' equity			16,565				15,330
Total liabilities and shareholders' equity		$	41,907			$	39,691
Basic shares outstanding			3,271				3,271

MachTen, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)
		3 Months Ended
		June 30, 2025				June 30, 2024
Operating Revenue:
Regulated Revenue		$	3,176			$	3,241
Broadband			855				840
Video & Other			184				165
Total operating revenue			4,215				4,246
Operating Costs:
Cost of revenue			1,454				1,314
General and administrative			645				511
Depreciation and accretion			841				696
Total costs			2,940				2,521
Operating income			1,275				1,725
Other Income (Expense):
Interest expense			(222	)			(255	)
Investment income			11				2
Total non-operating income / (loss)			(211	)			(253	)
Income before provision for income taxes			1,064				1,472
Provision for income taxes			423				417
Net income		$	641			$	1,055
Earnings per share attributable to common
stockholders:
Basic		$	0.20			$	0.32
Diluted		$	0.20			$	0.32
Weighted average shares outstanding:
Basic			3,272				3,272
Diluted			3,272				3,272
EBITDA Reconciliation					3 Months Ended
		June 30, 2025				June 30, 2024
Operating Profit		$	1,275			$	1,725
Depreciation & Amortization			837				693
Total EBITDA			2,112				2,418

Contact:

Dan Miller Chief Executive Officer (914) 921-5193

FAQ

What were MachTen's (MACT) Q2 2025 earnings results?

MachTen reported Q2 2025 revenue of $4.22 million, operating profit of $1.3 million, and net income of $640,000. EBITDA was $2.1 million.

How many fiber broadband customers does MachTen serve as of Q2 2025?

MachTen serves approximately 1,800 fiber broadband customers across 9,500 passings as of June 30, 2025.

What is MachTen's debt position as of Q2 2025?

MachTen had $17 million in outstanding debt from a $20 million term loan with NCSC at a weighted average interest rate of approximately 5.5%.

What is MachTen's capital investment in fiber infrastructure for 2025?

MachTen invested $3.7 million year-to-date, adding over 50 fiber route-miles and 1,000 passings in the first half of 2025.

What is the scope of MachTen's ReConnect (RC3) projects?

The RC3 projects will improve connectivity to over 2,500 locations across approximately 500 miles, with an estimated total multi-year cost of $85 million.