Lumen Technologies (NYSE: LUMN) posts Q2 2026 loss but stronger cash flow
Rhea-AI Filing Summary
Lumen Technologies, Inc. reported second quarter 2026 results. Total revenue was $2.805 billion, down from $3.092 billion in the prior-year quarter. Net loss was $(201) million, or $(0.20) per diluted share, improving from $(915) million, or $(0.92) per share. Adjusted EBITDA excluding Special Items was $802 million, compared with $877 million, for a 28.6% margin.
Strategic business revenue rose to 53% of total business revenue, while total business revenue was $2.444 billion and Mass Markets revenue declined to $361 million. Net cash provided by operating activities increased to $971 million, and Free Cash Flow excluding Special Items turned positive at $327 million versus $(209) million a year earlier. Cash and cash equivalents were $1.876 billion and long-term debt $13.150 billion as of June 30, 2026.
The company closed the Alkira acquisition to enhance digital networking capabilities and reported more than 3,000 Network-as-a-Service customers with strong quarter-over-quarter usage growth. Lumen reiterated its full-year 2026 outlook, including Adjusted EBITDA excluding Special Items of $3.1–$3.3 billion and Free Cash Flow excluding Special Items of $1.9–$2.1 billion, and appointed John Hinshaw as an independent director.
Positive
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Filing Explained
The board seat is filled immediately, while the disclosed $176,250 equity award remains subject to a one-year vesting period.
On
The filing reports a prorated restricted stock unit grant for the day after appointment with a target grant-date value of
The company’s reiterated 2026 free-cash-flow outlook includes
8-K Event Classification
5 items: 2.02, 5.02, 7.01, 9.01, 28.6
5 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 5.02
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers
Governance
Key personnel changes including departures, elections, or appointments of directors and executive officers.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Item 28.6
Item 28.6
Key Figures
Total revenue Q2 2026: $2.805 billion
Net loss Q2 2026: $(201) million
Adjusted EBITDA excluding Special Items Q2 2026: $802 million
+5 more
8 metrics
Total revenue Q2 2026
$2.805 billion
For the quarter ended June 30, 2026, compared with $3.092 billion in Q2 2025
Net loss Q2 2026
$(201) million
Quarter ended June 30, 2026, versus $(915) million in Q2 2025
Adjusted EBITDA excluding Special Items Q2 2026
$802 million
Non-GAAP Adjusted EBITDA excluding Special Items, versus $877 million in Q2 2025
Free Cash Flow excluding Special Items Q2 2026
$327 million
Free Cash Flow excluding Special Items, compared with $(209) million in Q2 2025
Net cash provided by operating activities Q2 2026
$971 million
Second quarter 2026 net cash from operating activities, versus $570 million in second quarter 2025
Cash and cash equivalents
$1.876 billion
Cash and cash equivalents balance as of June 30, 2026
Long-term debt
$13.150 billion
Long-term debt outstanding as of June 30, 2026, down from $17.353 billion at December 31, 2025
2026 Adjusted EBITDA guidance excluding Special Items
$3.1–$3.3 billion
Full-year 2026 outlook range for Adjusted EBITDA excluding Special Items
Key Terms
Adjusted EBITDA, Free Cash Flow, Network-as-a-Service, Mass Markets Fiber-to-the-Home, +2 more
6 terms
Adjusted EBITDA financial
"Generated Adjusted EBITDA1 of $802 million for the second quarter 2026"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Free Cash Flow financial
"Free Cash Flow, excluding Special Items, was $327 million in the second quarter 2026"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Network-as-a-Service technical
"more than 3,000 NaaS customers today and quarter-over-quarter growth across key usage metrics"
Network-as-a-service (NaaS) is a way companies obtain and run computer networking — like connectivity, security, and traffic management — as a subscription service rather than buying and maintaining their own hardware. Think of it like renting a utility instead of installing pipes yourself. For investors, NaaS models can mean steadier, recurring revenue, faster customer growth, and lower capital needs for providers, but also greater competition and reliance on service quality.
Mass Markets Fiber-to-the-Home technical
"sale of our Mass Markets Fiber-to-the-Home business to AT&T"
Rural Digital Opportunity Fund regulatory
"relinquishment of our program awards under the FCC's Rural Digital Opportunity Fund"
A Rural Digital Opportunity Fund is a government-run funding program that pays broadband providers to build high-speed internet in sparsely populated areas where private companies might not invest on their own. Think of it like public seed money to extend roads into remote neighborhoods: it lowers the cost and risk of building infrastructure. Investors watch these funds because the subsidies change potential revenues, reduce construction risk, and affect which companies win long-term contracts and customers in underserved markets.
Special Items financial
"The largest components of our Special Items reflected in this release"
Special items are unusual or infrequent gains or losses that a company reports separately from its regular operating profit, such as restructuring costs, asset write-downs, legal settlements, or one-time gains from selling a business. Investors pay attention because these items can make reported profits look better or worse than the company’s ongoing performance—like a homeowner’s one-off roof repair affecting a single month’s budget but not the household’s regular income and expenses.
Earnings Snapshot
Total revenue: $2.805 billion · Guidance included
Quarter ended June 30, 2026
Total revenue
$2.805 billion
down from $3.092 billion in Q2 2025
Net loss
$(201) million
improved from $(915) million in Q2 2025
Adjusted EBITDA excluding Special Items
$802 million
down from $877 million in Q2 2025
Free Cash Flow excluding Special Items
$327 million
up from $(209) million in Q2 2025
Guidance
For full year 2026, the outlook includes Adjusted EBITDA excluding Special Items of $3.1 to $3.3 billion and Free Cash Flow excluding Special Items of $1.9 to $2.1 billion.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What were Lumen Technologies (LUMN) Q2 2026 revenue and year-over-year change?
Lumen reported Q2 2026 revenue of $2.805 billion, compared with $3.092 billion in Q2 2025. This represents a 9.3% year-over-year decline, driven largely by lower Mass Markets revenue while total business revenue decreased more modestly.
How much did Lumen Technologies (LUMN) lose in Q2 2026 and how does it compare to last year?
Lumen recorded a Q2 2026 net loss of $(201) million, versus a net loss of $(915) million in Q2 2025. Diluted loss per share improved to $(0.20) from $(0.92), and net loss margin narrowed to (7.2)% from (29.6)%.
How did cash flow metrics for Lumen Technologies (LUMN) perform in Q2 2026?
Net cash provided by operating activities was $971 million in Q2 2026, up from $570 million a year earlier. Free Cash Flow excluding Special Items reached $327 million, compared with $(209) million in Q2 2025, marking a significant improvement in cash generation.
What 2026 financial outlook did Lumen Technologies (LUMN) reiterate?
For full year 2026, Lumen reiterated outlook for Adjusted EBITDA excluding Special Items of $3.1–$3.3 billion and Free Cash Flow excluding Special Items of $1.9–$2.1 billion. The company also projected capital expenditures of $3.2–$3.4 billion and net cash interest of $650–$750 million.
What is the Alkira acquisition mentioned by Lumen Technologies (LUMN)?
Lumen closed the acquisition of Alkira in Q2 2026. The deal is intended to extend Lumen’s digital networking capabilities, helping enterprises connect clouds, sites, partners, and AI workloads more quickly and easily as part of its programmable network and Network-as-a-Service strategy.
Who is John Hinshaw and what compensation will he receive at Lumen Technologies (LUMN)?
John Hinshaw was appointed to Lumen’s board effective August 4, 2026, serving until the 2027 annual meeting. He joins the nominating and corporate governance and risk and security committees, and will receive standard non-employee director pay, including a prorated RSU grant valued at $176,250 vesting after one year.
How is Lumen Technologies (LUMN) shifting its business revenue mix?
In Q2 2026, Lumen’s Strategic revenue reached $1.289 billion, or 53% of total business revenue, up from 51% in Q1 2026 and reflecting 14.1% year-over-year growth. Legacy business revenue declined to $1.155 billion, or 47% of business revenue, as the mix shifts toward digital offerings.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||
(318 ) 388-9000
(Telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of any registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company | |||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02. | Results of Operations and Financial Condition. | ||||
On August 4, 2026, Lumen Technologies, Inc. (the “Company” or “we” or “us”) issued a press release announcing financial results for the second quarter ended June 30, 2026 (the "Earnings Release"). A copy of the Earnings Release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
| Item 5.02. | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. | ||||
On August 4, 2026, the board of directors (the “Board”) of the Company, on the recommendation of its nominating and corporate governance committee, appointed John Hinshaw to fill a vacancy on the Board. Mr. Hinshaw’s appointment is effective immediately and he will serve until the Company’s 2027 annual meeting of shareholders and until his successor is duly elected and qualified. The Board also appointed Mr. Hinshaw to its nominating and corporate governance committee and its risk and security committee.
The Board has determined that Mr. Hinshaw qualifies as an independent director under the independence standards of the NYSE listing rules and the Company’s Corporate Governance Guidelines.
Mr. Hinshaw will receive compensation for his Board and committee service on the same basis as all other non-employee directors of the Company, in accordance with the Company’s non-employee director compensation program as previously described in the Company’s definitive proxy statement, filed with the Securities and Exchange Commission on April 6, 2026. With respect to the equity-based component of the program, on the day following his appointment, Mr. Hinshaw will receive a prorated grant of restricted stock units with a target grant date value of $176,250, vesting on the first anniversary of the grant date and otherwise subject to the same terms as the equity awards received by the Company’s other non-employee directors in connection with their most recent grants. In addition, Mr. Hinshaw will enter into the Company’s standard form of indemnification agreement for directors, a copy of which has been filed as Exhibit 10.5 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
Item 7.01. | Regulation FD Disclosure. | ||||
A copy of the earnings presentation that the Company will present regarding its financial results during the teleconference beginning at 5:00 p.m. Eastern time on August 4, 2026 is attached to this Current Report on Form 8-K as Exhibit 99.2. The earnings presentation is also available on the “Investors” page of the Company’s website (http://www.lumen.com).
In addition, on August 4, 2026, the Company issued a press release announcing Mr. Hinshaw’s appointment to the Board. A copy of the press release is attached hereto as Exhibit 99.3.
The information in Items 2.02 and 7.01 of this Form 8-K, including Exhibits 99.1, 99.2, and 99.3, respectively, attached hereto, is furnished and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”), or otherwise subject to the liabilities of that section, and such information shall not be deemed to be incorporated by reference into any of the Company’s filings under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
| Item 9.01. | Financial Statements and Exhibits. | ||||
(d)The following exhibits are furnished with this Current Report on Form 8-K:
| Exhibit No. | Description | |||||||
| Exhibit 99.1 | Press release dated August 4, 2026, reporting second quarter 2026 financial results. | |||||||
Exhibit 99.2 | Earnings Presentation dated August 4, 2026, reporting second quarter 2026 financial results. | |||||||
| Exhibit 99.3 | Press release dated August 4, 2026, announcing the appointment of John Hinshaw to the Lumen Technologies, Inc. Board of Directors. | |||||||
| Exhibit 104 | Cover page formatted as Inline XBRL and contained in Exhibit 101. | |||||||
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| LUMEN TECHNOLOGIES, INC. | ||||||||
Date: August 4, 2026 | By: | /s/ Donald Holt | ||||||
| Donald Holt | ||||||||
| Chief Accounting Officer and Controller | ||||||||
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| NEWS RELEASE |  | |||||||
Lumen Technologies Reports Solid Second Quarter 2026 Results; Digital Transformation Accelerates
Company advances its enterprise disruption strategy and growth conviction; closes Alkira acquisition to unlock digital revenue opportunity
DENVER, Aug 4, 2026 — Lumen Technologies, Inc. (NYSE: LUMN) today reported second quarter 2026 results demonstrating continued execution against its transformation strategy and progress toward the financial and operational goals outlined at Investor Day. During the quarter, Lumen delivered financial results in line with expectations, continued improving its business revenue mix, advanced simplification initiatives, and strengthened its digital platform strategy for enterprise customers operating in an AI-driven, multi-cloud world.
Among the company’s highlights from the quarter:
•Financial Performance: Delivered solid second quarter results with Strategic revenue increasing to approximately 53% of total business revenue, up from 51% in the first quarter.
•Operational Execution: Redeployed resources towards higher-growth, higher margin digital opportunities by rationalizing the product portfolio. Continue to deliver on Modernization and Simplification; further reducing internal systems complexity.
•Growth Pivot: On track towards full year guidance and long-term framework from Investor Day. Adoption of digital networking services is high, with more than 3,000 NaaS customers today and quarter-over-quarter growth across key usage metrics: new customer adoption up 22%, active ports up 34%, and active services up 29%.
•Alkira Acquisition: Closed the acquisition of Alkira, extending Lumen’s digital capabilities and helping enterprises connect clouds, sites, partners, and AI workloads more quickly and easily.
“Lumen is putting innovation back where it belongs - inside the network itself," said Lumen CEO Kate Johnson. "By embedding digital intelligence directly into the physical network layer, we’re delivering higher-impact business outcomes instead of competing on price alone. That’s a fundamentally different value proposition in enterprise networking, and a new chapter for Lumen customers and investors."
“Our second quarter results reflect continued execution against our financial objectives and ongoing momentum in the business. Strategic revenue increased to 53% of total business revenue, up from 51% in the first quarter, as customers increasingly adopt our digital networking solutions,” said Lumen President and CFO Chris Stansbury.
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Second Quarter 2026 Highlights
•Reported revenues of $2.805 billion for the second quarter 2026
•Reported Net Cash Provided by Operating Activities of $971 million for the second quarter 2026 compared to Net Cash Provided by Operating Activities of $570 million for the second quarter 2025
•Generated Free Cash Flow1 of $327 million for the second quarter 2026, excluding cash paid for Special Items1 of $258 million, compared to Free Cash Flow1 of $(209) million for the second quarter 2025, excluding cash paid for Special Items1 of $112 million
•Reported Net Loss of $(201) million for the second quarter 2026, compared to Net Loss of $(915) million for the second quarter 2025
•Reported diluted loss per share of $(0.20) for the second quarter 2026, compared to diluted loss per share of $(0.92) for the second quarter 2025. Excluding Special Items1, diluted loss per share was $(0.07) for the second quarter 2026, compared to $(0.03) diluted loss per share for the second quarter 2025
•Generated Adjusted EBITDA1 of $802 million for the second quarter 2026, compared to $877 million for the second quarter 2025, excluding the effects of Special Items1 of $204 million and $152 million, respectively
1 Represents a non-GAAP financial measure as later defined below under "Non-GAAP Financial Measures".
2
Financial Results
| Metric, as reported | Second Quarter | |||||||
| ($ in millions, except per share data) | 2026 | 2025 | ||||||
Large Enterprise | $ | 794 | 766 | |||||
| Mid-Market Enterprise | 435 | 473 | ||||||
| Public Sector | 490 | 483 | ||||||
| North America Enterprise Channels | 1,719 | 1,722 | ||||||
| Wholesale | 653 | 688 | ||||||
| North America Business Revenue | 2,372 | 2,410 | ||||||
International and Other | 72 | 80 | ||||||
Business Revenue | 2,444 | 2,490 | ||||||
Mass Markets Revenue | 361 | 602 | ||||||
Total Revenue | $ | 2,805 | 3,092 | |||||
| Cost of Services and Products | 1,415 | 1,624 | ||||||
| Selling, General and Administrative Expenses | 779 | 755 | ||||||
| Net Loss on Sale of Business | 31 | — | ||||||
Stock-based Compensation Expense | 18 | 12 | ||||||
Net Loss | (201) | (915) | ||||||
Net Loss, Excluding Special Items(1)(2) | (73) | (29) | ||||||
Adjusted EBITDA(1) | 598 | 725 | ||||||
Adjusted EBITDA, Excluding Special Items(1)(3) | 802 | 877 | ||||||
Net Loss Margin | (7.2) | % | (29.6) | % | ||||
Net Loss Margin, Excluding Special Items(1)(2) | (2.6) | % | (0.9) | % | ||||
Adjusted EBITDA Margin(1) | 21.3 | % | 23.4 | % | ||||
Adjusted EBITDA Margin, Excluding Special Items(1)(3) | 28.6 | % | 28.4 | % | ||||
| Net Cash Provided by Operating Activities | 971 | 570 | ||||||
Capital Expenditures | 902 | 891 | ||||||
Capital Expenditures, Excluding Special Items(1)(4) | 780 | 824 | ||||||
Unlevered Cash Flow(1) | 157 | 54 | ||||||
Unlevered Cash Flow, Excluding Special Items(1)(5) | 415 | 166 | ||||||
Free Cash Flow(1)(4) | 69 | (321) | ||||||
Free Cash Flow, Excluding Special Items(1)(5) | 327 | (209) | ||||||
Net Loss per Common Share - Diluted | $ | (0.20) | $ | (0.92) | ||||
Net Loss per Common Share - Diluted, Excluding Special Items(1)(2) | $ | (0.07) | $ | (0.03) | ||||
| Weighted Average Shares Outstanding (in millions) - Diluted | 1,004.1 | 994.5 | ||||||
(1) See "Non-GAAP Financial Measures" at the end of this release for definitions of non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures. | ||||||||
(2) Excludes Special Items (net of the income tax effect thereof) in the amounts of $128 million and $886 million for the second quarter of 2026 and 2025, respectively. | ||||||||
(3) Excludes Special Items in the amounts of $204 million and $152 million for the second quarter of 2026 and 2025, respectively. | ||||||||
(4) Excludes Special Items in the amounts of $122 million and $67 million for the second quarter of 2026 and 2025, respectively. | ||||||||
(5) Excludes Special Items in the amounts of $258 million and $112 million for the second quarter of 2026 and 2025, respectively. | ||||||||
3
Revenue | Second Quarter | First Quarter | QoQ Percent | Second Quarter | YoY Percent | ||||||||||||
| ($ in millions) | 2026 | 2026 | Change | 2025 | Change | ||||||||||||
| Revenue By Sales Channel | |||||||||||||||||
| Large Enterprise | $ | 794 | 778 | 2% | 766 | 4% | |||||||||||
| Mid-Market Enterprise | 435 | 439 | (1)% | 473 | (8)% | ||||||||||||
| Public Sector | 490 | 506 | (3)% | 483 | 1% | ||||||||||||
| North America Enterprise Channels | 1,719 | 1,723 | —% | 1,722 | —% | ||||||||||||
| Wholesale | 653 | 648 | 1% | 688 | (5)% | ||||||||||||
| North America Business Revenue | 2,372 | 2,371 | —% | 2,410 | (2)% | ||||||||||||
| International and Other | 72 | 73 | (1)% | 80 | (10)% | ||||||||||||
Business Revenue | 2,444 | 2,444 | —% | 2,490 | (2)% | ||||||||||||
Mass Markets Revenue | 361 | 455 | (21)% | 602 | (40)% | ||||||||||||
Total Revenue | $ | 2,805 | 2,899 | (3)% | 3,092 | (9)% | |||||||||||
Business Revenue by Product Category | |||||||||||||||||
Strategic | $ | 1,289 | 1,246 | 3% | 1,130 | 14% | |||||||||||
Legacy | 1,155 | 1,198 | (4)% | 1,360 | (15)% | ||||||||||||
Business Revenue | $ | 2,444 | 2,444 | —% | 2,490 | (2)% | |||||||||||
Revenue
Total Revenue was $2.805 billion for the second quarter 2026, compared to $3.092 billion for the second quarter 2025.
Cash Flow
Net Cash Provided by Operating Activities was $971 million in the second quarter 2026, compared to $570 million in the second quarter 2025.
Free Cash Flow, excluding Special Items, was $327 million in the second quarter 2026, compared to $(209) million in the second quarter 2025.
Liquidity
As of Jun. 30, 2026, Lumen had cash and cash equivalents of $1.876 billion.
4
2026 Financial Outlook
The Company reiterated its full-year 2026 financial outlook, which is detailed below:
Metric (1)(2) | Outlook | ||||
Adjusted EBITDA excluding Special Items(3) | $3.1 to $3.3 billion | ||||
Free Cash Flow excluding Special Items(3) | $1.9 to $2.1 billion | ||||
Net Cash Interest | $650 to $750 million | ||||
| Capital Expenditures excluding Special Items | $3.2 to $3.4 billion | ||||
Cash Income Taxes (Refunded) | ($350) to ($450) million | ||||
Other Metrics(3) | Range | ||||
| Income tax expense | $45 to $200 million | ||||
| Total other expense, net | $1.1 to $1.3 billion | ||||
| Depreciation and amortization expense | $2.6 to $2.8 billion | ||||
| Stock-based compensation expense | $60 to $80 million | ||||
(1) Outlook metrics reflect our expectations as of the date hereof. Actual results may vary and are subject to a number of risks and uncertainties, many of which are beyond our control. See “Forward-Looking Statements.” | |||||
(2) Reflects a $400 million refund from recent tax legislation. Excludes the taxes related to the Mass Markets Fiber-to-the-Home divestiture. | |||||
(3) Adjusted EBITDA, Free Cash Flow and Capital Expenditures, in each case, excluding Special Items, are non-GAAP financial measures. For definitions of these non-GAAP financial measures and reconciliations of historical non-GAAP financial measures to the most directly comparable GAAP measures, see "Non-GAAP Financial Measures" at the end of this release and our Investor Relations website. A reconciliation of these forward-looking non-GAAP financial measures to corresponding GAAP measures cannot be provided without unreasonable effort due to the inherent uncertainty and difficulty of forecasting, with sufficient precision, the timing and amount of certain material non-recurring items that have not yet occurred. Forward-looking non-GAAP financial measures may vary materially from the corresponding GAAP financial measures. For the full year 2026, the Company currently expects certain expenses, which are reconciling items to net loss, to be in the ranges reflected above. Actual results may vary and are subject to a number of risks and uncertainties, many of which are beyond our control. See “Forward-Looking Statements.” | |||||
5
Investor Call
Lumen’s management team will host a conference call at 5:00 p.m. ET today, Aug 4, 2026. The conference call will be streamed live over the Lumen website at ir.lumen.com. Additional information regarding second quarter 2026 results, including the presentation materials, will be available on the Investor Relations website prior to the call. A webcast replay of the call will also be available on our website for one year.
Media Relations Contacts: | Investor Relations Contact: | |||||||
Anita Gomes | Jim Breen, CFA | |||||||
anita.gomes@lumen.com | investor.relations@lumen.com | |||||||
| +1 858-229-8538 | +1 603-404-7003 | |||||||
About Lumen Technologies:
Lumen is unleashing the world's digital potential. We ignite business growth by connecting people, data, and applications – quickly, securely, and effortlessly. As the trusted network for AI, Lumen uses the scale of our network to help companies realize AI's full potential. From metro connectivity to long-haul data transport to our edge cloud, security, managed service, and digital platform capabilities, we meet our customers’ needs today and as they build for tomorrow.
For news and insights visit news.lumen.com, LinkedIn: /lumentechnologies, X: @lumentechco, Facebook: /lumentechnologies, Instagram: @lumentechnologies and YouTube: /lumentechnologies. Lumen and Lumen Technologies are registered trademarks of Lumen Technologies LLC in the United States. Lumen Technologies LLC is a wholly-owned affiliate of Lumen Technologies, Inc.
6
Forward-Looking Statements
Except for historical and factual information, the matters set forth in this release and our other oral or written statements identified by words such as “estimates,” “expects,” “anticipates,” “believes,” “plans,” “intends,” “will,” and similar expressions with respect to the future are forward-looking statements as defined by the federal securities laws, and are subject to the “safe harbor” protections thereunder. The forward-looking statements included in this release including without limitation statements regarding our future financial results of operations, cash flows, or financial condition, our modernization efforts and related target cost savings, expectations regarding the timing and amount of tax refunds, our long-term framework and progress toward financial and operational goals outlined at Investor Day; our ability to improve our business revenue mix, grow strategic revenues, increase adoption and usage of our digital networking and Network-as-a-Service offerings, and execute our AI, multi-cloud and digital platform strategies; our ability to realize anticipated benefits from the Alkira acquisition, including enhanced digital networking capabilities for enterprises connecting clouds, sites, partners and AI workloads, our product rationalization, workforce, network infrastructure and IT systems initiatives, including the anticipated timing and amount of related cost savings and capital expenditures; our ability to redeploy resources toward higher-growth digital opportunities; our ability to complete, integrate or realize anticipated benefits from divestitures, transition and separation services, debt transactions, refinancing activities and other strategic transactions; and the assumptions on which they are based are not guarantees of future results and are based on current expectations only, are inherently speculative, and are subject to a number of risks and uncertainties, many of which are beyond our control. These risks and uncertainties include those described in our Securities and Exchange Commission ("SEC") filings, including those set forth in the Risk Factors section and under the heading "Special Note Regarding Forward-Looking Statements" in our most recently filed Annual Report on Form 10-K, our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2026 to be filed with the SEC, and in our other filings with the SEC. Additional factors or risks that we currently deem immaterial, that are not presently known to us, or that arise in the future could also cause our actual results to differ materially from our expected results. Given these uncertainties, investors are cautioned not to unduly rely upon our forward-looking statements, which speak only as of the date made. We undertake no obligation to publicly update or revise any forward-looking statements for any reason, whether as a result of new information, future events or developments, changed circumstances, or otherwise. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements. Furthermore, any information about our intentions contained in any of our forward-looking statements reflects our intentions as of the date of such forward-looking statement, and is based upon, among other things, our assessment of regulatory, technological, industry, competitive, economic, or market conditions as of such date. We may change our intentions, strategies or plans (including our capital allocation plans) at any time and without notice, based upon any changes in such factors or otherwise, and we undertake no obligation to make any public announcement of such changed intentions, except to the extent required by applicable law.
7
| Lumen Technologies, Inc. | ||||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||||||
| THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025 | ||||||||||||||||||||||||||
| (UNAUDITED) | ||||||||||||||||||||||||||
| ($ in millions, except per share amounts; shares in thousands) | ||||||||||||||||||||||||||
| Three months ended June 30, | (Decrease) / Increase | Six months ended June 30, | (Decrease) / Increase | |||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| OPERATING REVENUE | $ | 2,805 | 3,092 | (9) | % | 5,704 | 6,274 | (9) | % | |||||||||||||||||
| OPERATING EXPENSES | ||||||||||||||||||||||||||
| Cost of services and products (exclusive of depreciation and amortization) | 1,415 | 1,624 | (13) | % | 2,850 | 3,311 | (14) | % | ||||||||||||||||||
| Selling, general and administrative | 779 | 755 | 3 | % | 1,573 | 1,430 | 10 | % | ||||||||||||||||||
| Net loss (gain) on sale of business | 31 | — | nm | (565) | — | nm | ||||||||||||||||||||
| Depreciation and amortization | 668 | 688 | (3) | % | 1,332 | 1,401 | (5) | % | ||||||||||||||||||
| Goodwill impairment | — | 628 | nm | — | 628 | nm | ||||||||||||||||||||
| Total operating expenses | 2,893 | 3,695 | (22) | % | 5,190 | 6,770 | (23) | % | ||||||||||||||||||
| OPERATING (LOSS) INCOME | (88) | (603) | (85) | % | 514 | (496) | nm | |||||||||||||||||||
| OTHER (EXPENSE) INCOME | ||||||||||||||||||||||||||
| Interest expense | (201) | (338) | (41) | % | (426) | (685) | (38) | % | ||||||||||||||||||
| Net gain (loss) on early retirement of debt | 6 | (236) | nm | (220) | (271) | (19) | % | |||||||||||||||||||
| Other income, net | 28 | 28 | — | % | 54 | 58 | (7) | % | ||||||||||||||||||
| Total other expense, net | (167) | (546) | (69) | % | (592) | (898) | (34) | % | ||||||||||||||||||
| Income tax (benefit) expense | (54) | (234) | (77) | % | 323 | (278) | nm | |||||||||||||||||||
| NET LOSS | $ | (201) | $ | (915) | (78) | % | $ | (401) | $ | (1,116) | (64) | % | ||||||||||||||
| BASIC LOSS PER SHARE | $ | (0.20) | (0.92) | (78) | % | (0.40) | (1.12) | (64) | % | |||||||||||||||||
| DILUTED LOSS PER SHARE | $ | (0.20) | (0.92) | (78) | % | (0.40) | (1.12) | (64) | % | |||||||||||||||||
| WEIGHTED AVERAGE SHARES OUTSTANDING | ||||||||||||||||||||||||||
| Basic | 1,004,104 | 994,543 | 1 | % | 1,001,498 | 992,906 | 1 | % | ||||||||||||||||||
| Diluted | 1,004,104 | 994,543 | 1 | % | 1,001,498 | 992,906 | 1 | % | ||||||||||||||||||
| nm - Percentages greater than 200% and comparisons between positive and negative values are considered not meaningful. | ||||||||||||||||||||||||||
8
| Lumen Technologies, Inc. | |||||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||||
AS OF JUNE 30, 2026 AND DECEMBER 31, 2025 | |||||||||||
| (UNAUDITED) | |||||||||||
| ($ in millions) | |||||||||||
| June 30, 2026 | December 31, 2025 | ||||||||||
| ASSETS | |||||||||||
| CURRENT ASSETS | |||||||||||
| Cash and cash equivalents | $ | 1,876 | 1,003 | ||||||||
Accounts receivable, less allowance of $45 and $67 | 1,377 | 1,314 | |||||||||
| Assets held for sale | — | 4,285 | |||||||||
| Other | 856 | 1,307 | |||||||||
| Total current assets | 4,109 | 7,909 | |||||||||
Property, plant and equipment, net of accumulated depreciation of $24,377 and $23,744 | 20,300 | 19,575 | |||||||||
| OTHER ASSETS | |||||||||||
| Other intangible assets, net | 4,040 | 4,463 | |||||||||
| Other, net | 2,333 | 2,395 | |||||||||
| Total other assets | 6,373 | 6,858 | |||||||||
| TOTAL ASSETS | $ | 30,782 | 34,342 | ||||||||
| LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | |||||||||||
| CURRENT LIABILITIES | |||||||||||
| Current maturities of long-term debt | $ | 56 | 88 | ||||||||
| Accounts payable | 1,035 | 1,508 | |||||||||
| Accrued expenses and other liabilities | |||||||||||
| Salaries and benefits | 654 | 854 | |||||||||
| Income and other taxes | 755 | 279 | |||||||||
| Current operating lease liabilities | 289 | 266 | |||||||||
| Interest | 176 | 149 | |||||||||
| Other | 299 | 203 | |||||||||
| Liabilities held for sale | — | 38 | |||||||||
| Current portion of deferred revenue | 999 | 1,005 | |||||||||
| Total current liabilities | 4,263 | 4,390 | |||||||||
| LONG-TERM DEBT | 13,150 | 17,353 | |||||||||
| DEFERRED CREDITS AND OTHER LIABILITIES | |||||||||||
| Deferred income taxes, net | 1,787 | 2,270 | |||||||||
| Benefit plan obligations, net | 1,932 | 2,103 | |||||||||
| Deferred revenue | 8,178 | 6,406 | |||||||||
| Other | 2,960 | 2,937 | |||||||||
| Total deferred credits and other liabilities | 14,857 | 13,716 | |||||||||
| STOCKHOLDERS' DEFICIT | |||||||||||
| Common stock | 19,178 | 19,185 | |||||||||
| Accumulated other comprehensive loss | (564) | (601) | |||||||||
| Accumulated deficit | (20,102) | (19,701) | |||||||||
| Total stockholders' deficit | (1,488) | (1,117) | |||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ | 30,782 | 34,342 | ||||||||
9
| Lumen Technologies, Inc. | |||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
| SIX MONTHS ENDED JUNE 30, 2026 AND 2025 | |||||||||||
| (UNAUDITED) | |||||||||||
| ($ in millions) | |||||||||||
| Six months ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| OPERATING ACTIVITIES | |||||||||||
| Net loss | $ | (401) | (1,116) | ||||||||
| Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 1,332 | 1,401 | |||||||||
| Net gain on sale of business | (565) | — | |||||||||
| Goodwill impairment | — | 628 | |||||||||
| Deferred income taxes | (484) | (409) | |||||||||
| Provision for uncollectible accounts | 7 | 31 | |||||||||
| Net loss on early retirement of debt | 220 | 271 | |||||||||
| Stock-based compensation | 31 | 22 | |||||||||
| Changes in current assets and liabilities, net | 423 | (50) | |||||||||
| Retirement benefits | (130) | (1) | |||||||||
| Change in deferred revenue | 1,772 | 718 | |||||||||
| Changes in other assets and liabilities, net | 65 | 69 | |||||||||
| Other, net | 24 | 101 | |||||||||
| Net cash provided by operating activities | 2,294 | 1,665 | |||||||||
| INVESTING ACTIVITIES | |||||||||||
| Capital expenditures | (1,845) | (1,682) | |||||||||
| Proceeds from sale of business | 4,977 | — | |||||||||
| Proceeds from sale of property, plant and equipment, and other assets | 21 | 31 | |||||||||
| Other, net | 3 | 9 | |||||||||
| Net cash provided by (used in) investing activities | 3,156 | (1,642) | |||||||||
| FINANCING ACTIVITIES | |||||||||||
| Net proceeds from issuance of long-term debt | 1,728 | 4,261 | |||||||||
| Payments of long-term debt | (6,253) | (4,284) | |||||||||
| Debt issuance and extinguishment costs and related fees | (15) | (308) | |||||||||
| Other, net | (37) | (13) | |||||||||
| Net cash used in financing activities | (4,577) | (344) | |||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | 873 | (321) | |||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 1,014 | 1,900 | |||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 1,887 | 1,579 | ||||||||
| Cash, cash equivalents and restricted cash: | |||||||||||
| Cash and cash equivalents | $ | 1,876 | 1,568 | ||||||||
| Restricted cash | 11 | 11 | |||||||||
| Total | $ | 1,887 | 1,579 | ||||||||
10
Non-GAAP Financial Measures
In addition to providing key metrics for management to evaluate the Company's performance, the Company believes that the non-GAAP financial measures described below and included in this release and which may be referred to on the conference call discussing the Company's second quarter 2026 financial results assist investors in their understanding of period-to-period operating performance and in identifying historical and prospective trends.
Non-GAAP financial measures are not presented to be replacements or alternatives to the measures prepared in accordance with accounting principles generally accepted in the United States (GAAP), and investors are urged to consider these non-GAAP financial measures in addition to, and not in substitution for, or superior to, financial measures prepared in accordance with GAAP. Lumen may calculate its non-GAAP financial measures differently from similarly titled measures presented by other companies.
Reconciliations of non-GAAP financial measures to the most comparable GAAP measures are included in the attached financial schedules and our Investor Relations website.
Special Items. We use the term Special Items to describe items that impacted a period’s statement of operations or cash flows which the Company believes do not relate to the ordinary course of the Company's business and do not reflect the Company's underlying business performance. As described herein, the Company presents certain GAAP and non-GAAP financial measures both including and excluding the effects of Special Items.
The largest components of our Special Items reflected in this release are net gain on sale of business related to the sale of our Mass Markets Fiber-to-the-Home business to AT&T and net losses associated with the early retirement of debt. The other main components of our Special Items include Modernization and Simplification costs, Transaction and Separation costs, and Income from Transition and Separation Services. Modernization and Simplification costs are associated with a multi-year transformation initiative to streamline our network infrastructure, product portfolio, and IT systems, and to modernize our workforce, designed to deliver $1 billion in annualized cost savings on a run-rate basis exiting 2027. Transaction and Separation costs reflect transaction and separation costs associated with the sale of our Mass Markets Fiber-to-the-Home business to AT&T and additional transaction and separation costs associated with supporting transition and separation services of our previous divestitures. Income from Transition and Separation Services includes charges we billed for transitional services and IT professional services provided to the purchasers in connection with our recent divestitures. Other items impacting Adjusted EBITDA and Net Loss include remittance of awards and associated fees related to the voluntary relinquishment of our program awards under the FCC's Rural Digital Opportunity Fund (“RDOF”), and certain charges primarily related to the recognition of losses on disposal of certain operating assets related to our divestitures and certain charges or payments related to litigation‑related expenses arising from specific matters that are not indicative of normal, recurring business activities.
Net Loss Excluding Special Items ($) is defined as Net Loss from the Statements of Operations excluding Special Items impacting Net Loss, which are further described above and detailed in the attached schedules. The Company also presents Diluted Net Loss per Share excluding Special Items, calculated as Net Loss excluding Special Items divided by the weighted average of the diluted number of common shares outstanding in the relevant period.
11
Net Loss Excluding Special Items (%) is defined as Net Loss excluding Special Items divided by total revenue.
Management believes that Net Loss excluding Special Items, Net Loss Margin excluding Special Items and Diluted Net Loss Per Share excluding Special Items are relevant and useful metrics to provide to investors.
There are material limitations to using these non-GAAP financial measures, including the difficulty associated with comparing companies that use similarly-titled performance measures whose calculations may differ from our calculations. Additionally, by excluding Special Items, these non-GAAP financial measures may exclude items that investors believe are important components of our performance. Such measures should not be considered a substitute for, or superior to, other measures of financial performance reported in accordance with GAAP.
Adjusted EBITDA ($) is defined as Net Loss from the Statements of Operations before Income tax expense (benefit), Total other expense, net (which represents the net impact of interest expense, net loss on early retirement of debt, and other income, net), depreciation and amortization expense, stock-based compensation expense, and goodwill impairment. The Company also presents Adjusted EBITDA excluding Special Items, which are further described above.
Adjusted EBITDA Margin (%) is defined as Adjusted EBITDA divided by total revenue. The Company also presents Adjusted EBITDA Margin excluding Special Items, which are further described above.
Management believes that Adjusted EBITDA and Adjusted EBITDA Margin (with and without Special Items) are relevant and useful metrics to provide to investors, as they are an important part of our internal reporting and are key measures used by management to evaluate profitability and operating performance of Lumen and to make resource allocation decisions. Management believes such measures are especially important in a capital-intensive industry such as telecommunications. Management also uses Adjusted EBITDA and Adjusted EBITDA Margin (and similarly uses these terms excluding Special Items) to compare our performance to that of our competitors and to eliminate certain non-cash and non-operating items in order to consistently measure from period to period our ability to fund capital expenditures and growth, service debt, and determine bonuses. Adjusted EBITDA excludes stock-based compensation expense because of the non-cash nature of this item. Adjusted EBITDA also excludes Total other expense, net (which represents the net impact of interest expense, net loss (gain) on early retirement of debt, and other income, net) and Income tax expense (benefit).
There are material limitations to using Adjusted EBITDA and Adjusted EBITDA Margin (in each case, with and without Special Items) as a financial measure, including the difficulty associated with comparing companies that use similarly-titled performance measures whose calculations may differ from our calculations. Additionally, by excluding the above-listed items, Adjusted EBITDA and Adjusted EBITDA Margin (in each case, with and without Special Items) may exclude items that investors believe are important components of our performance. Adjusted EBITDA and Adjusted EBITDA Margin (either with or without Special Items) should not be considered a substitute for, or superior to, other measures of financial performance reported in accordance with GAAP.
Capital Expenditures excluding Special Items is defined as Capital Expenditures from the Statements of Cash Flows excluding Special Items.
Management believes that Capital Expenditures excluding Special Items is a relevant and useful metric to provide investors.
12
There are material limitations to using Capital Expenditures excluding Special Items, including the difficulty associated with comparing companies that use similarly-titled performance measures whose calculations may differ from our calculations. Additionally, by excluding Special Items, these non-GAAP financial measures may exclude items that investors believe are important components of our performance. Capital Expenditures excluding Special Items should not be considered a substitute for, or superior to, other measures of financial performance reported in accordance with GAAP.
Unlevered Cash Flow is defined as net cash provided by (used in) operating activities less capital expenditures, plus cash interest paid and less interest income, all as disclosed in the Statements of Cash Flows. Management believes that Unlevered Cash Flow is a relevant metric to provide to investors, because it reflects the operational performance of Lumen and, measured over time, enables management and investors to monitor the underlying business’ growth pattern and ability to generate cash. The Company also presents Unlevered Cash Flow excluding Special Items, which are further described above.
There are material limitations to using Unlevered Cash Flow (with or without Special Items) to measure our cash performance as it excludes certain material items that investors may believe are important components of our cash flows. Comparisons of our Unlevered Cash Flow to that of some of our competitors may be of limited usefulness as other companies may use similarly-titled performance measures whose calculations may differ from our calculations. Additionally, this financial measure is subject to variability quarter over quarter as a result of the timing of payments related to accounts receivable, accounts payable, payroll, and capital expenditures. Unlevered Cash Flow (with or without Special Items) should not be considered a substitute for, or superior to, other measures of liquidity reported in accordance with GAAP.
Free Cash Flow is defined as net cash provided by (used in) operating activities less capital expenditures as disclosed in the Statements of Cash Flows. Management believes that Free Cash Flow is a relevant metric to provide to investors, as it is an indicator of our ability to generate cash to service our debt. The Company also presents Free Cash Flow excluding Special Items, which are further described above.
There are material limitations to using Free Cash Flow (with or without Special Items) to measure our performance as it excludes certain material items that investors may believe are important components of our cash flows. Comparisons of our Free Cash Flow to that of some of our competitors may be of limited usefulness as other companies may use similarly-titled performance measures whose calculations may differ from our calculations. Additionally, this financial measure is subject to variability quarter over quarter as a result of the timing of payments related to interest expense, accounts receivable, accounts payable, payroll and capital expenditures. Free Cash Flow (either with or without Special Items) should not be considered a substitute for, or superior to, other measures of liquidity reported in accordance with GAAP.
13
| Lumen Technologies, Inc. | |||||||||||||||||
| Non-GAAP Special Items | |||||||||||||||||
| (UNAUDITED) | |||||||||||||||||
| ($ in millions) | |||||||||||||||||
| Actual QTD | Actual YTD | ||||||||||||||||
| Special Items Impacting Adjusted EBITDA | 2Q26 | 2Q25 | 2Q26 | 2Q25 | |||||||||||||
| Net loss (gain) on sale of business | $ | 31 | — | (565) | — | ||||||||||||
Transaction and separation costs(1) | 48 | 92 | 101 | 108 | |||||||||||||
Modernization and simplification(2) | 116 | 41 | 222 | 91 | |||||||||||||
Other(3) | 9 | 19 | 16 | 52 | |||||||||||||
| Total Special Items impacting Adjusted EBITDA | $ | 204 | 152 | (226) | 251 | ||||||||||||
| Actual QTD | Actual YTD | ||||||||||||||||
Special Items Impacting Net Loss | 2Q26 | 2Q25 | 2Q26 | 2Q25 | |||||||||||||
| Net loss (gain) on sale of business | $ | 31 | — | (565) | — | ||||||||||||
Transaction and separation costs(1) | 48 | 92 | 101 | 108 | |||||||||||||
Modernization and simplification(2) | 116 | 41 | 222 | 91 | |||||||||||||
Other(3) | 9 | 19 | 16 | 52 | |||||||||||||
Goodwill impairment | — | 628 | — | 628 | |||||||||||||
Net (gain) loss on early retirement of debt(4) | (6) | 236 | 220 | 271 | |||||||||||||
Income from transition and separation services(5) | (35) | (39) | (76) | (76) | |||||||||||||
Total Special Items impacting Net Loss | 163 | 977 | (82) | 1,074 | |||||||||||||
Income tax effect of Special Items(6) | (35) | (91) | (57) | (116) | |||||||||||||
Total Special Items impacting Net Loss, net of tax | $ | 128 | 886 | (139) | 958 | ||||||||||||
| Actual QTD | Actual YTD | ||||||||||||||||
| Special Items Impacting Cash Flows | 2Q26 | 2Q25 | 2Q26 | 2Q25 | |||||||||||||
Transaction and separation costs(1) | $ | 28 | 10 | 112 | 26 | ||||||||||||
Modernization and simplification(2)(7) | 120 | 57 | 230 | 95 | |||||||||||||
Capital expenditures for modernization and simplification(8) | 122 | 67 | 206 | 105 | |||||||||||||
Income from transition and separation services(5) | (20) | (27) | (34) | (81) | |||||||||||||
Other(9) | 8 | 5 | 21 | 17 | |||||||||||||
RDOF Relinquishment Payment(10) | — | — | 99 | — | |||||||||||||
Total Special Items impacting Cash Flows | $ | 258 | 112 | 634 | 162 | ||||||||||||
(1) Primarily reflects transaction and separation costs associated with (i) the Q1 2026 sale of our Mass Markets Fiber-to-the-Home business to AT&T, (ii) additional transaction and separation costs associated with supporting transition and separation services of our previous divestitures and (iii) the Q2 2025 expense of $49 million for fees related to the relinquishment of our funding received under the FCC's Rural Digital Opportunity Fund. | |||||||||||||||||
(2) Includes costs incurred related to network infrastructure, product portfolio, IT systems, and workforce modernization designed to deliver $1 billion annualized in cost savings on a run-rate basis exiting 2027. | |||||||||||||||||
(3) Includes primarily the recognition of a loss on disposal of certain operating assets in Q1 2025 related to our divestitures. | |||||||||||||||||
(4) Reflects net (gain) loss as a result of cash tender offers and refinancing of certain debt instrument and credit facilities. | |||||||||||||||||
(5) Reflects income from transition and separation services and includes charges we billed for transition services and IT professional services provided to the purchasers in connection with our divestitures. | |||||||||||||||||
(6) Tax effect calculated using the annualized effective statutory tax rate, excluding any non-recurring discrete items, which was 21.3% for Q2 2026, 25.0% for Q1 2026, and 26.0% for Q1 and Q2 2025. | |||||||||||||||||
(7) Includes the related cash payments of expenses captured as described in footnote 2 above. | |||||||||||||||||
(8) Includes primarily the related cash payments for capital expenditures incurred under the programs described in footnote 2 above. | |||||||||||||||||
(9) Includes primarily payments related to litigation‑related expenses arising from specific matters that are not indicative of normal, recurring business activities. | |||||||||||||||||
(10) Reflects the Q1 2026 payment for remittance of awards and associated fees related to the voluntary relinquishment of our RDOF awards. As a result, we will no longer receive funding through the RDOF program. | |||||||||||||||||
14
| Lumen Technologies, Inc. | |||||||||||||||||
| Non-GAAP Cash Flow Reconciliation | |||||||||||||||||
| (UNAUDITED) | |||||||||||||||||
| ($ in millions) | |||||||||||||||||
| Actual QTD | Actual YTD | ||||||||||||||||
| 2Q26 | 2Q25 | 2Q26 | 2Q25 | ||||||||||||||
Net cash provided by operating activities(1) | $ | 971 | 570 | 2,294 | 1,665 | ||||||||||||
| Capital expenditures | (902) | (891) | (1,845) | (1,682) | |||||||||||||
Free Cash Flow(1) | 69 | (321) | 449 | (17) | |||||||||||||
| Cash interest paid | 122 | 396 | 371 | 676 | |||||||||||||
| Interest income | (34) | (21) | (47) | (42) | |||||||||||||
Unlevered Cash Flow(1) | $ | 157 | 54 | 773 | 617 | ||||||||||||
Free Cash Flow(1) | $ | 69 | (321) | 449 | (17) | ||||||||||||
Transaction and separation costs(2) | 28 | 10 | 112 | 26 | |||||||||||||
Modernization and simplification(2) | 120 | 57 | 230 | 95 | |||||||||||||
Capital expenditures for modernization and simplification(2) | 122 | 67 | 206 | 105 | |||||||||||||
Income from transition and separation services(2) | (20) | (27) | (34) | (81) | |||||||||||||
Other(2) | 8 | 5 | 21 | 17 | |||||||||||||
RDOF Relinquishment Payment(2) | — | — | 99 | — | |||||||||||||
Free Cash Flow excluding Special Items(1) | $ | 327 | (209) | 1,083 | 145 | ||||||||||||
Unlevered Cash Flow(1) | $ | 157 | 54 | 773 | 617 | ||||||||||||
Transaction and separation costs(2) | 28 | 10 | 112 | 26 | |||||||||||||
Modernization and simplification(2) | 120 | 57 | 230 | 95 | |||||||||||||
Capital expenditures for modernization and simplification(2) | 122 | 67 | 206 | 105 | |||||||||||||
Income from transition and separation services(2) | (20) | (27) | (34) | (81) | |||||||||||||
Other(2) | 8 | 5 | 21 | 17 | |||||||||||||
RDOF Relinquishments Payment(2) | — | — | 99 | — | |||||||||||||
Unlevered Cash Flow excluding Special Items(1) | $ | 415 | 166 | 1,407 | 779 | ||||||||||||
Capital expenditures | $ | (902) | (891) | $ | (1,845) | (1,682) | |||||||||||
Capital expenditures for modernization and simplification(2) | 122 | 67 | 206 | 105 | |||||||||||||
Capital expenditures excluding Special Items | $ | (780) | (824) | $ | (1,639) | (1,577) | |||||||||||
(1) Includes $729 million of proceeds from the Mass Markets Fiber-to-the-Home divestiture for the allocated fair value associated with contractual credits and commercial agreements that are classified as cash flow from operations and the impact of a $101 million voluntary pension contribution in Q1 2026. | |||||||||||||||||
(2) Refer to Non-GAAP Special Items table for details of the Special Items impacting cash flows included above. | |||||||||||||||||
15
| Lumen Technologies, Inc. | |||||||||||||||||
Adjusted EBITDA and Reconciliation of Non-GAAP Financial Measures | |||||||||||||||||
| (UNAUDITED) | |||||||||||||||||
| ($ in millions) | |||||||||||||||||
| Actual QTD | Actual YTD | ||||||||||||||||
| 2Q26 | 2Q25 | 2Q26 | 2Q25 | ||||||||||||||
Net loss | $ | (201) | (915) | (401) | (1,116) | ||||||||||||
| Income tax expense (benefit) | (54) | (234) | 323 | (278) | |||||||||||||
| Total other expense, net | 167 | 546 | 592 | 898 | |||||||||||||
| Depreciation and amortization expense | 668 | 688 | 1,332 | 1,401 | |||||||||||||
| Stock-based compensation expense | 18 | 12 | 31 | 22 | |||||||||||||
| Goodwill impairment | — | 628 | — | 628 | |||||||||||||
Adjusted EBITDA | $ | 598 | 725 | 1,877 | 1,555 | ||||||||||||
Net loss (gain) on sale of business(1) | 31 | — | (565) | — | |||||||||||||
Transaction and separation costs(1) | 48 | 92 | 101 | 108 | |||||||||||||
Modernization and simplification(1) | 116 | 41 | 222 | 91 | |||||||||||||
Other(1) | 9 | 19 | 16 | 52 | |||||||||||||
Adjusted EBITDA excluding Special Items | $ | 802 | 877 | 1,651 | 1,806 | ||||||||||||
Net loss | $ | (201) | (915) | (401) | (1,116) | ||||||||||||
Net loss (gain) on sale of business(1) | 31 | — | (565) | — | |||||||||||||
Transaction and separation costs(1) | 48 | 92 | 101 | 108 | |||||||||||||
Modernization and simplification(1) | 116 | 41 | 222 | 91 | |||||||||||||
Other(1) | 9 | 19 | 16 | 52 | |||||||||||||
Goodwill impairment(1) | — | 628 | — | 628 | |||||||||||||
Net (gain) loss on early retirement of debt(1) | (6) | 236 | 220 | 271 | |||||||||||||
Income from transition and separation services(1) | (35) | (39) | (76) | (76) | |||||||||||||
Income tax effect of Special Items(1) | (35) | (91) | (57) | (116) | |||||||||||||
Net loss excluding Special Items(1) | $ | (73) | (29) | (540) | (158) | ||||||||||||
| Total revenue | $ | 2,805 | 3,092 | 5,704 | 6,274 | ||||||||||||
Net loss margin | (7.2) | % | (29.6) | % | (7.0) | % | (17.8) | % | |||||||||
Net loss margin, excluding special items and income tax effect thereof | (2.6) | % | (0.9) | % | (9.5) | % | (2.5) | % | |||||||||
Adjusted EBITDA margin | 21.3 | % | 23.4 | % | 32.9 | % | 24.8 | % | |||||||||
Adjusted EBITDA margin excluding special items | 28.6 | % | 28.4 | % | 28.9 | % | 28.8 | % | |||||||||
| Net Loss per Common Share - Diluted | $ | (0.20) | (0.92) | $ | (0.40) | (1.12) | |||||||||||
Net Loss per Common Share - Diluted, Excluding Special Items(1) | $ | (0.07) | (0.03) | $ | (0.54) | (0.16) | |||||||||||
| Weighted Average Shares Outstanding (in millions) - Diluted | 1,004.1 | 994.5 | 1,001.5 | 992.9 | |||||||||||||
(1) Refer to Non-GAAP Special Items table for details of the Special Items included above. | |||||||||||||||||
16
Second Quarter 2026 Results August 4, 2026
© 2026 Lumen Technologies. All Rights Reserved. 1 Forward-Looking Statements Except for historical and factual information, the matters discussed in this presentation and other oral or written statements made by Lumen may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are identified by words such as "expects," "anticipates," "believes," "plans," "intends," "estimates," "projects," "targets," "will," "may," "could," "should," and similar expressions and include, but are not limited to, statements regarding our future financial performance and outlook; revenue trends and growth opportunities; cash flows, capital expenditures and capital allocation priorities; our modernization and simplification initiatives and anticipated cost savings; the benefits, opportunities and expected impact of the Alkira acquisition and its integration; the development and adoption of our network, cloud, security and digital services offerings; market opportunity, including total addressable market estimates; customer demand and adoption trends; and other plans, objectives, expectations and intentions. Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict and many of which are beyond our control. These risks and uncertainties include those described in our Securities and Exchange Commission ("SEC") filings, including, among others, changes in customer demand; competitive pressures; technological developments; cybersecurity incidents; the success of our strategic initiatives and product offerings; our ability to realize anticipated benefits, synergies and opportunities from acquisitions, including Alkira; integration risks; economic, regulatory and market conditions; capital market conditions; and those set forth in the Risk Factors section and under the heading "Special Note Regarding Forward-Looking Statements" in our Annual Report on Form 10-K filed with the SEC on February 20, 2026 and our subsequent Quarterly Reports on Form 10-Q filed with the SEC, and in our other filings with the SEC. Additional factors or risks that we currently deem immaterial, that are not presently known to us, or that arise in the future could also cause our actual results to differ materially from our expected results. Given these uncertainties, investors are cautioned not to unduly rely upon our forward-looking statements, which speak only as of the date made. We undertake no obligation to publicly update or revise any forward-looking statements for any reason, whether as a result of new information, future events or developments, changed circumstances, or otherwise. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements. Furthermore, any information about our intentions contained in any of our forward-looking statements reflects our intentions as of the date of such forward-looking statement, and is based upon, among other things, our assessment of regulatory, technological, industry, competitive, economic, or market conditions as of such date. We may change our intentions, strategies or plans (including our capital allocation plans) at any time and without notice, based upon any changes in such factors or otherwise, and we undertake no obligation to make any public announcement of such changed intentions, except to the extent required by applicable law.
© 2026 Lumen Technologies. All Rights Reserved. 2 This presentation includes certain historical and forward-looking non-GAAP financial measures, including but not limited to adjusted EBITDA, as well as adjusted EBITDA, adjusted EBITDA margin, free cash flow and capital expenditures excluding the effects of special items. In addition to providing key metrics for management to evaluate the company’s performance, we believe these measurements assist investors in their understanding of period-to-period operating performance and in identifying historical and prospective trends. Non-GAAP financial measures are not presented to be replacements or alternatives to the measures prepared in accordance with accounting principles generally accepted in the United States (GAAP), and investors are urged to consider these non-GAAP financial measures in addition to, and not in substitution for, or superior to, financial measures prepared in accordance with GAAP. Lumen may calculate its non-GAAP financial measures differently from similarly titled measures presented by other companies. Reconciliations of non-GAAP financial measures to the most comparable GAAP measures are included in the financial schedules to the Company’s accompanying earnings release. Reconciliations of information and additional non-GAAP historical financial measures that may be discussed during the call, along with further descriptions of non-GAAP financial measures, will be available in the Investor Relations portion of the company’s website at http://ir.lumen.com. Non-GAAP Financial Measures
© 2026 Lumen Technologies. All Rights Reserved. 3 KATE JOHNSON CEO
© 2026 Lumen Technologies. All Rights Reserved. 4 Winning Recognition, Earning Trust U.S. News & World Report as a 2026–2027 “Best Company to Work For – South” Lumen Named the “Company to Beat” in Enterprise Networking - Gartner named to TIME’s “America’s Best Companies 2026” Communications media and entertainment industry award 2026 company of the year (North American Dedicated Internet Access) 2026 North American Broadcast Video Managed Services Source: Gartner, AI Vendor Race: Lumen Is the Company to Beat in Enterprise WAN and Connectivity Services for AI, Kameron Chao, Susan Welsh de Grimaldo, Karen Brown, 25 June 2026. "Gartner does not endorse any company, vendor, product or service depicted in its publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner publications consist of the opinions of Gartner’s business and technology insights organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this publication, including any warranties of merchantability or fitness for a particular purpose."
© 2026 Lumen Technologies. All Rights Reserved. 5 Announcing The Close of Alkira
© 2026 Lumen Technologies. All Rights Reserved. BEFORE: Network sprawl Complex. Costly. Hard to secure. > Higher riskSlow to change Higher cost UsersBranches Data Centers Security Network Services Colos and Partners Cloud Providers Clouds ALKIRA Digital Services Platform Multi-Cloud Gateway Underlay Lumen private IP connectivity fabric Security Network Services Policy Observability Automation Branches Colocation Cloud Providers Partners UsersBranches Data Centers Clouds AFTER: Alkira + Lumen Simple. Secure. Built for scale. Lumen + Alkira: The Programmable Network, Realized From network sprawl to a simple, secure, multi-cloud fabric Lower riskFaster to connect Lower cost
© 2026 Lumen Technologies. All Rights Reserved. 7 The Alkira Advantage – by the Numbers delivered new region from ground up in <2 days vs. typical >2months3 reduced global network operational costs by 40% “Strategically, for me, [it’s] stronger. It answers the fundamental question, why Lumen instead of AT&T, Verizon, Cisco.“ – VP, TECHNOLOGY & AI, PROSPECT “The uniqueness is basically the combination of the physical underlay with that programmable cloud controlling layer.“ – C-LEVEL, IT & TECH, PROSPECT connected 1,400 stores in 3 weeks4 73% decrease in number of firewalls 93% decrease in time needed to add a new security service 44% decrease in number of devices for cloud connection 96% decrease in time required to add a new cloud 84% decrease in staff hours to manage cloud networks 91% decrease in time required to add a new extranet partner 93% decrease in time needed to connect a new data center ¹ Source: Nemertes, "Alkira Real Economic Value Report," October 2024 (DN11954). Study-wide average across all participants, not specific to the customers pictured to the left ² Source: Matt Hoag, CTO, Koch Business Solutions — Alkira case study, "Koch Industries Deploys Alkira For Their Cloud Networking Journey." ³ Source: Guruprasad Ramamoorthy and team, S&P Global — Alkira case study, "Network Infrastructure On-Demand: S&P Global's Transformation with Alkira." ⁴ Source: Wei Dong (VP & CISO), Michaels — Futuriom Leadership Brief, "How Michaels Networked 1,400 Stores in Three Weeks." 2 Alkira Real Economic Value Report1
© 2026 Lumen Technologies. All Rights Reserved. 8 Cloud & carrier agnostic Private-network performance A single control plane Lumen Multi-Cloud Gateway SaaS providers and neoclouds1 The Lumen Programmable Network Metro connectivityData centers RapidRoutes Lumen Fabric Port Enterprises Off-net enterprises, data centers, and international Lumen Connectivity Fabric Off-net Lumen Connectivity Fabric On-demand networking and cloud/multi-cloud services Software-based policy control, automation, and orchestration Lumen Connect Designed to be ubiquitous, universal, on-demand, intelligent, and secure 1 Illustrative cloud connections
© 2026 Lumen Technologies. All Rights Reserved. 9 NaaS Customers Services Sold Fabric Ports 2Q26 Adoption Rate (Q/Q) +22% +29% +34% Number of customers that purchase and use one or more ports in quarter Number of fabric ports deployed by customers to support multi- cloud networking Number of services sold across all fabric ports Lumen NaaS Adoption Remains Strong
© 2026 Lumen Technologies. All Rights Reserved. 10 The Lumen Platform 1st Party MarketplaceLumen Connect Alkira Physical Infrastructure Programmable Network Connected Ecosystem 58M Intercity Fiber Miles1 ~19M Metro Fiber Miles2RapidRoutes Metro Expansion & Enhancements Data Center Interconnect Control Plane: North/South – East/West | On Demand | On-net/Off-net | Direct Cloud On-Ramps | Multi-Cloud Gateway CustomersSaaS providersTech MarketplacesCarriersClouds 1 Projected YE 2031 2 As of June 30, 2026
© 2026 Lumen Technologies. All Rights Reserved. 11 CHRIS STANSBURY PRESIDENT & CFO
© 2026 Lumen Technologies. All Rights Reserved. 12 Operational and Financial Accomplishments in 2Q’26 End of sale for enterprise voice offerings; enhanced focus on higher-return digital products Solid financial results; EBITDA, revenue, and FCF all in-line with expectations Closed the Alkira acquisition; enabling smarter connectivity Reduced SEC filers from 3 to 1; executing another Modernization & Simplification milestone
© 2026 Lumen Technologies. All Rights Reserved. 13 ($ in millions) 2Q’26 Y/Y% Change Q/Q% Change Large Enterprise $794 3.7% 2.1% Mid-Market Enterprise $435 (8.0%) (0.9%) Public Sector $490 1.4% (3.2%) N.A. Enterprise $1,719 (0.2%) (0.2%) Wholesale $653 (5.1%) 0.8% N.A. Total Business $2,372 (1.6%) 0.0% International & Other $72 (10.0%) (1.4%) Total Business $2,444 (1.8%) 0.0% Total Mass Markets $361 (40.0%) (20.7%) Total Revenue $2,805 (9.3%) (3.2%) 2Q’26 Total Reported Revenue ($ in millions) 2Q’26 Y/Y% Change Q/Q% Change % Total Digital $39 - - - PCF $91 - - - Other Strategic $1,159 - - - Strategic $1,289 14.1% 3.5% 53% Legacy $1,155 (15.1%) (3.6%) 47% Total Business $2,444 (1.8%) 0.0% 100%
© 2026 Lumen Technologies. All Rights Reserved. 14 Total Business Revenue: Strategic vs. Legacy Total business revenue on glidepath to inflection driven by continued strategic revenue expansion Total Business Revenue: Strategic vs. Legacy $1,155 $1,289 40% 41% 42% 44% 45% 45% 48% 49% 51% 53% 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 Legacy Strategic Strategic as % of Total
© 2026 Lumen Technologies. All Rights Reserved. 15 2Q’26 Adjusted EBITDA* excluding special items ($ in millions) 2Q’26 Y/Y% Change Total Revenue $2,805 (9.3%) Adjusted EBITDA* $802 (8.6%) Adjusted EBITDA* Margin 28.6% 20 bps Adjusted EBITDA* $598 2Q’26 Special Items: (+) Net (gain) loss on sale of businesses $31 (+) Transaction and separation costs(1) $48 (+) Modernization and simplification(2) $116 (+) Other $9 Adjusted EBITDA* excl. Special Items $802 (1) Primarily reflects transaction and separation costs associated with (i) the Q1 2026 sale of our Mass Markets fiber-to-the-home business to AT&T and (ii) additional transaction and separation costs associated with supporting transition and separation services of our previous divestitures. (2) Includes costs incurred related to network infrastructure, product portfolio, IT systems, and workforce modernization designed to deliver $1 billion annualized in cost savings on a run-rate basis exiting 2027. *For definitions of non-GAAP financial measures and reconciliations to GAAP figures, see Lumen’s Investor Relations website. ($ in millions)
© 2026 Lumen Technologies. All Rights Reserved. 16 Consolidated Cash Flow Summary ($ in millions) 2Q’26 Cash Flow from Operations $971 Capital Expenditures(1) $780 Free Cash Flow(1) $327 Net Cash Interest $88 Key Metrics 1) Excluding Special Items impacting Capital Expenditures and Cash Flows. For definitions of non-GAAP financial measures and reconciliations to GAAP figures, see Lumen’s Investor Relations website.
© 2026 Lumen Technologies. All Rights Reserved. 17 2026 Financial Outlook Metric(1)(2)(3)(4) Outlook Adjusted EBITDA $3.1 to $3.3 billion Free Cash Flow $1.9 to $2.1 billion Net Cash Interest $650 million to $750 million Capital Expenditures $3.2 to $3.4 billion Cash Income Taxes (refund) ($350) to ($450) million (1) For definitions of non-GAAP financial measures and certain reconciliations to GAAP figures, see Lumen’s Investor Relations website. (2) Outlook measures in this presentation and the accompanying schedules (i) exclude the effects of Special Items or future changes in our operating or capital allocation plans, unforeseen changes in regulation, laws or litigation, and other unforeseen events or circumstances impacting our financial performance and (ii) speak only as of August 4, 2026. See “Forward Looking Statements” at the beginning of this presentation. (3) Reflects a $400 million refund from recent tax legislation. Excludes the taxes related to the Mass Markets FTTH divestiture. (4) Free Cash Flow guidance for 2026 includes $729 million of proceeds from the Mass Markets Fiber-to-the-Home divestiture classified as cash flow from operations. Free Cash Flow for the first quarter of 2026 as reported includes this $729 million. The cash proceeds from the divestiture were primarily used to pay down debt in the first quarter of 2026.
© 2025 Lumen Technologies. All Rights Reserved. 18