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, August 04, 2026–(BUSINESS WIRE)–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.
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 $152 million, respectively
____________________
1 Represents a non-GAAP financial measure as later defined below under “Non-GAAP Financial Measures”.
Financial Results
Metric, as reported
Second Quarter
($ 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 $112 million for the second quarter of 2026 and 2025, respectively.
Revenue
Second
Quarter
First
Quarter
QoQ
Percent
Second
Quarter
YoY
Percent
($ 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.
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.”
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.
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.
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.
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.
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
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
…
