Liberty Latin America — Q2 2026 Earnings Summary

Financial Performance

• Consolidated revenue was $1,103 million for Q2 2026, a 1% increase year-over-year (YoY); Year-to-Date (YTD) revenue was $2,185 million, also up 1% YoY.
• Operating income was $181 million for Q2 2026 compared to a loss of $333 million in Q2 2025; YTD operating income was $326 million compared to a loss of $205 million in the prior year.
• Adjusted OIBDA was $436 million for Q2 2026, a 5% increase YoY (3% rebased); YTD Adjusted OIBDA was $841 million, up 2% YoY (1% rebased).
• Adjusted OIBDA margin was 39.5% in Q2 2026 compared to 38.2% in Q2 2025; YTD margin was 38.5% compared to 37.9%.
• Adjusted Free Cash Flow (FCF) was $58 million for Q2 2026 compared to a loss of $41 million in Q2 2025; YTD Adjusted FCF was a loss of $6 million compared to a loss of $174 million in the prior year.
• Cash provided by operating activities was $217 million for Q2 2026 compared to $141 million in Q2 2025; YTD cash from operations was $259 million compared to $166 million.
• Capital expenditures (net) were $120.8 million for Q2 2026 compared to $139.3 million in Q2 2025; YTD CapEx was $220.1 million compared to $236.0 million.
• Property and equipment additions were $179 million for Q2 2026 (16% of revenue) compared to $150 million in Q2 2025 (14% of revenue); YTD additions were $289 million (13% of revenue) compared to $271 million (12% of revenue).
• Total debt and finance lease obligations were $8,534.4 million as of June 30, 2026, with cash, cash equivalents, and restricted cash totaling $746.9 million.
• Consolidated gross leverage ratio was 5.1x as of June 30, 2026, compared to 4.9x as of March 31, 2026; net leverage ratio was 4.6x compared to 4.5x.
• Fully-swapped borrowing costs were 6.9% as of June 30, 2026, compared to 6.7% in the prior quarter.

Guidance and Future Outlook

• Management anticipates cost-saving initiatives in Costa Rica to continue supporting Adjusted OIBDA trends in future periods.
• The company expects the 10-year strategic agreement with Amdocs to deliver in excess of $250 million in Net Present Value (NPV) over the life of the contract.
• Share repurchase activity is expected to remain opportunistic following the acceleration of over $60 million in buybacks to date in 2026.
• The company indicated confidence in future cash flow generation following the declaration of the first quarterly dividend on preferred stock.

Business Segments and Product Lines

• Liberty Caribbean: Revenue decreased 1% YoY; Adjusted OIBDA fell 5% YoY due to Hurricane Melissa impacts. Postpaid mobile additions were strong driven by Fixed-Mobile Convergence (FMC). Residential fixed revenue declined 8% on a rebased basis.
• C&W Panama: Revenue was flat YoY; Adjusted OIBDA fell 5% YoY due to higher professional services and commercial costs. Reported the highest subscriber additions in the group for broadband and postpaid, with accelerating broadband additions and lower churn.
• Liberty Networks: Revenue increased 14% YoY (10% rebased); Adjusted OIBDA increased 10% YoY (9% rebased), driven by the El Salvador project and lease capacity sales in the Wholesale business.
• Liberty Puerto Rico: Revenue decreased 5% YoY; Adjusted OIBDA increased 7% YoY. Reported the third consecutive quarter of postpaid adds and traction on SIM-only products. Fixed broadband losses diminished following a network-quality focus.
• Liberty Costa Rica: Revenue increased 11% YoY (flat rebased); Adjusted OIBDA increased 18% YoY (7% rebased), driven by cost savings in commercial expenses including call center and sales commissions.
• Subscriber Growth: The group gained 45,000 postpaid and broadband net adds in Q2. Total organic customer additions were 7,600. Fixed RGU additions were 35,000, and organic internet additions were 12,100.
• ARPU Trends: Residential mobile ARPU in Liberty Caribbean increased 9% YoY; in Liberty Costa Rica, mobile ARPU increased 13% YoY. Residential fixed ARPU in C&W Panama decreased 6% YoY.

Market and Competitive Landscape

• Geopolitics in Venezuela are driving increased carrier and enterprise interest in Liberty Networks.
• C&W Panama registered positive prepaid net additions for the last four quarters despite a prepaid to postpaid migration.
• Liberty Puerto Rico faced pressure on mobile revenue due to a lower prepaid subscriber base following the Boost migration and lower roaming revenue.
• Liberty Caribbean experienced headwinds from offline and lost subscribers due to Hurricane Melissa.

Risks and Challenges

• Hurricane Melissa negatively impacted Q2 2026 revenue by $6 million and Adjusted OIBDA by $6 million on a net basis.
• C&W Panama B2B revenue declined 3% due to a decline in rates for data services provided to government-related agencies in Q1 2026.
• Liberty Puerto Rico revenue was impacted by lower residential fixed pricing.
• Forward-looking statements cite risks including natural disasters, political events, pandemics, regulatory changes, and currency exchange fluctuations.

Management Commentary and Tone

• President and CEO Balan Nair described the quarter as "strong" regarding postpaid mobile additions and noted better momentum in broadband, including recovery in Jamaica.
• Management highlighted that Adjusted OIBDA returned to YoY growth despite headwinds from Hurricane Melissa.
• The company expressed confidence in future cash flow generation and value in LLA equity, citing the acceleration of share repurchases.
• Management announced a 10-year strategic agreement with Amdocs to improve cost base, drive margin expansion, and enhance capital efficiency.

Other Key Points

• Preferred Stock Dividend: The Board declared a regular quarterly cash dividend of $0.5625 per share on the 9.0% Series A Cumulative Redeemable Preferred Stock, payable September 15, 2026.
• Strategic Partnership: A 10-year strategic agreement with Amdocs was announced to bring scale, specialized expertise, and AI capabilities to IT operations, expected to deliver over $250 million in NPV.
• Share Repurchases: The company accelerated stock repurchase activity, with over $60 million spent to date in 2026.
• Debt Distribution: $500 million of preferred stock was distributed in the second quarter.
• Subsea Build: Liberty Networks' top line was supported by a large subsea build project.