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DENVER - Lumen Technologies (NYSE:LUMN) reported better-than-expected third-quarter results on Thursday, as the telecommunications company exceeded analyst expectations for both earnings and revenue.
Shares rose 3.2% following the announcement, reflecting investor optimism about the company’s transformation progress.
The network infrastructure provider posted an adjusted loss of $0.20 per share for the third quarter, beating analyst estimates of a $0.26 loss. Revenue came in at $3.09 billion, surpassing the consensus estimate of $3.04 billion, though still down 4% YoY from $3.22 billion in the same quarter last year.
Lumen generated $1.66 billion in free cash flow excluding special items during the quarter, significantly higher than the $1.2 billion reported in the year-ago period. The company also delivered adjusted EBITDA of $787 million, exceeding expectations but down from $899 million in the third quarter of 2024.
"This quarter, we demonstrated what disciplined execution and bold ambition can achieve," said Kate Johnson, president and CEO of Lumen Technologies. "We delivered strong financial results—revenue, EBITDA, and free cash flow all ahead of expectations—while advancing our transformation agenda."
The company highlighted its progress in its growth segments, with revenue from "Grow" product categories increasing 8% YoY to $1.16 billion, helping to offset declines in legacy services. Public Sector revenue showed particular strength, rising 11% YoY to $478 million.
Lumen also reported significant momentum in its Private Connectivity Fabric business, securing $1 billion in new deals in October, bringing the total PCF deal value to over $10 billion.
The company reaffirmed its full-year 2025 outlook, expecting adjusted EBITDA of $3.2 billion to $3.4 billion and free cash flow of $1.2 billion to $1.4 billion. Management indicated they expect to come in near the high end of their adjusted EBITDA range, driven by better progress on modernization initiatives and improved performance from legacy services.
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