Liberty Capital — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated revenue for the three months ended September 30, 2026, increased 4% year-over-year to $267 million; total revenue for the nine months ended September 30, 2026, remained flat at $784 million compared to the prior year.
• Operating income for the three months ended September 30, 2026, was $36 million, a significant improvement from a loss of $488 million in the prior year period; operating income for the nine months ended September 30, 2026, was $95 million compared to a loss of $379 million in the prior year.
• Adjusted OIBDA for the three months ended September 30, 2026, increased 10% to $101 million; Adjusted OIBDA for the nine months ended September 30, 2026, decreased 7% to $290 million.
• Adjusted OIBDA margin for the three months ended September 30, 2026, was 37.8% (up 200 basis points from 35.8%); Adjusted OIBDA margin for the nine months ended September 30, 2026, was 37.0% (down 290 basis points from 39.9%).
• Net cash provided by operating activities on a trailing twelve-month basis through September 30, 2026, was $311 million.
• Free cash flow on a trailing twelve-month basis through September 30, 2026, was $37 million.
• Total debt decreased to $1,163 million as of September 30, 2026, from $1,263 million as of June 30, 2026.
• Cash, cash equivalents, and restricted cash decreased to $417 million as of September 30, 2026, from $510 million as of June 30, 2026.
• GCI leverage was 2.7x as of September 30, 2026, compared to 2.8x as of June 30, 2026.
• Liberty Capital leverage remained stable at 2.1x for both June 30, 2026, and September 30, 2026.
• Deferred revenue increased to $152 million ($24 million current, $128 million long-term) as of September 30, 2026, from $153 million ($23 million current, $130 million long-term) as of December 31, 2025.

Guidance and Future Outlook:

• GCI expects to close the Quintillion acquisition shortly.
• GCI's net capital expenditures for the full year 2026 are expected to be $290 million, including $20 million carried over from 2025.
• A significant portion of the increased 2026 capital expenditures is related to hybrid fiber-coaxial network improvements in urban Alaska.

Business Segments and Product Lines:

• Consumer Segment: Revenue increased 3% to $118 million for the three months ended September 30, 2026, and declined 1% to $350 million for the nine months ended September 30, 2026.
  • Consumer data revenue increased 2% to $60 million for the quarter and declined 1% to $179 million for the nine months.
  • Consumer wireless revenue increased 4% to $54 million for the quarter and 3% to $158 million for the nine months.
  • Consumer broadband subscribers increased 1% to 154,500 as of September 30, 2026.
  • Consumer wireless lines in service increased 1% to 202,000 as of September 30, 2026; GCI added 3,000 consumer wireless lines year-to-date.
  • Consumer gross margin was 72.0% for the nine months ended September 30, 2026, a 100 basis point increase from the prior year.
• Business Segment: Revenue increased 5% to $149 million for the three months ended September 30, 2026, and 1% to $434 million for the nine months ended September 30, 2026.
  • Business data revenue increased 6% to $132 million for the quarter and 2% to $383 million for the nine months.
  • Business wireless revenue decreased 10% to $9 million for the quarter and 3% to $29 million for the nine months.
  • Business wireless lines in service decreased 4% to 7,900 as of September 30, 2026.
  • Business gross margin was 77.2% for the nine months ended September 30, 2026, a 350 basis point decrease from the prior year.
• GCI fully exited the video business in 2025, impacting year-to-date consumer revenue comparisons.
• Consumer data revenue growth in the quarter was driven by an acquisition of a small broadband provider in the second quarter, partially offset by an organic decrease in data subscribers.

Market and Competitive Landscape:

• Business data revenue growth was driven by service upgrades with existing healthcare and education customers.
• Business data revenue growth for the nine months was partially offset by $4 million of revenue in the prior year period relating to a successful appeal of rates for services provided to certain healthcare customers.
• Business direct costs increased due to higher distribution costs for healthcare and education customers and restored service on the Quintillion network during the prior year third quarter.

Risks and Challenges:

• Forward-looking statements involve risks including competitive issues, customer demand, economic conditions (including inflationary pressures), and regulatory and legislative matters affecting Universal Service Fund programs.
• Risks include the completion of the Quintillion acquisition, capital resource requirements, and the ability to execute growth strategies.
• The dividend policy and share repurchase program may be modified, suspended, or terminated at any time.
• Actual results may differ materially from forward-looking statements due to various risks and uncertainties detailed in the company's Form 10-K and Form 10-Q.

Management Commentary and Tone:

• Ron Duncan, CEO, stated the company continues to execute against priorities at GCI and reported a solid quarter reflecting the strength and reach of the network infrastructure.
• Management expressed confidence in the ongoing cash-generating power of the business while preserving balance sheet capacity for future growth investments.
• Management noted the expectation to close the Quintillion acquisition soon.

Other Key Points:

• Liberty Capital declared a quarterly dividend of $0.375 per share of GCI Group common stock, payable on December 15, 2026, to holders of record on November 30, 2026.
• Liberty Capital authorized a $100 million inaugural share repurchase program for GCI Group common stock.
• Subsequent to the quarter end, GCI raised $300 million of secured financing and retired the remaining 4.75% senior notes due 2028, extending its nearest maturity to 2030.
• On October 28, 2026, GCI amended its credit agreement to add a $270 million incremental senior secured Term A-3 loan facility maturing on October 28, 2031.
• On October 16, 2026, GCI increased its revolving credit facility by $30 million to $480 million.
• GCI's credit facility had undrawn capacity of $383 million (net of letters of credit) as of September 30, 2026.
• GCI spent $202 million on capital expenditures net of grant proceeds for the nine months ended September 30, 2026.
• Impairment of goodwill and intangible assets was $525 million in the prior year periods but $0 in the current periods.
• Acquisition costs were $1 million for the three months ended September 30, 2026, and $8 million for the nine months ended September 30, 2026.
• Stock-based compensation increased to $6 million for the three months and $21 million for the nine months ended September 30, 2026, compared to $2 million and $9 million in the prior year periods, respectively.
• GCI made a $160 million loan to Quintillion during the nine months ended September 30, 2026.
• GCI paid $11 million for acquisitions, net of cash acquired, during the nine months ended September 30, 2026.