GCI Liberty, Inc. Annual Report - How They Did This Year

Curious about GCI Liberty, Inc.? This summary provides a clear, concise overview of the company's performance and strategic direction for the fiscal year ended December 31, 2025. You can find GCI Liberty's stock trading on The Nasdaq Stock Market LLC under the symbols GLIBA (Series A GCI Group common stock) and GLIBK (Series C GCI Group common stock). Let's dive into the details to help you understand the company better.

Business Overview (What the Company Does)

GCI Liberty, Inc. operates as a holding company, primarily investing in the telecommunications and media sectors. Its core asset is a controlling stake in GCI Holdings, LLC, which delivers a full range of communication services—including wireless, video, voice, and data—primarily to customers in Alaska. GCI Liberty also holds strategic investments in other publicly traded and private companies, actively managing its portfolio and allocating capital to maximize long-term shareholder value.

Financial Performance (Revenue, Profit, Year-over-Year Changes)

GCI Liberty delivered solid operational performance across its key segments in fiscal year 2025. GCI Holdings, LLC, reported a 3.5% increase in consolidated revenue, fueled by strong demand for broadband services and a stable wireless subscriber base. Strategic investments also boosted the company's overall asset value, achieving an average portfolio appreciation of 7% during the year.

GCI Liberty's consolidated revenue reached $1.15 billion for fiscal year 2025, up from $1.11 billion in the previous year. Net income attributable to GCI Liberty shareholders climbed to $185 million, or $2.10 per diluted share, compared to $160 million, or $1.85 per diluted share, in 2024. This improvement stemmed primarily from enhanced operational efficiencies at GCI Holdings and favorable market conditions for specific portfolio investments.

Adjusted OIBDA (Operating Income Before Depreciation and Amortization) grew by 5% to $450 million, reflecting disciplined cost management and revenue growth. Free Cash Flow (FCF) totaled $120 million, providing strong liquidity for strategic initiatives and debt reduction. GCI Holdings' broadband segment saw subscriber growth of 2%, reaching 250,000 subscribers by year-end.

Risk Factors (Key Risks)

Investors should consider several key risks:

• Intense Competition: The telecommunications market remains highly competitive, leading to ongoing pressure on pricing and the need for continuous technology investments.
• Regulatory Changes: Evolving federal and state regulations, especially in telecommunications and media, could affect operations, costs, or strategic flexibility.
• Technological Obsolescence: Rapid technological advancements demand significant capital expenditures to maintain competitive service offerings.
• Economic Downturns: A general economic slowdown, particularly in Alaska, could reduce consumer spending on discretionary services and impact business customers.
• Cybersecurity Threats: The company faces ongoing risks from cyberattacks and data breaches, potentially causing financial losses, reputational damage, and regulatory penalties.
• Dependence on Key Subsidiaries: As a holding company, GCI Liberty's performance relies heavily on the operational and financial success of its underlying investments, especially GCI Holdings.

Management Discussion & Analysis (MD&A) Highlights

Key Wins and Challenges This Year:

• Successful 5G Network Expansion: GCI Holdings completed its 5G network rollout across key Alaskan markets by Q3 2025, enhancing service quality and attracting new subscribers.
• Strategic Investment Gains: The company realized significant gains, generating $50 million in cash proceeds from the partial divestiture of a non-core technology investment.
• Debt Refinancing: GCI Liberty successfully refinanced $300 million of high-interest debt in Q2 2025, reducing annual interest expenses by approximately $8 million.
• Increased Competition: The company faced heightened competition in the wireless segment as national carriers expanded their footprint, leading to increased marketing expenditures.
• Regulatory Scrutiny: GCI Liberty navigated evolving regulatory landscapes concerning data privacy and net neutrality, which required significant compliance investments.
• Supply Chain Disruptions: Minor delays and increased costs for network equipment occurred due to ongoing global supply chain issues, though proactive inventory management largely mitigated these impacts.

Leadership and Strategy Changes: In Q1 2025, the Board of Directors appointed Sarah Chen as the new Chief Financial Officer. She brings extensive experience in telecommunications finance and strategic planning. The company refined its strategic focus for the coming years, emphasizing:

• Accelerated Fiber-to-the-Home (FTTH) Deployment: A multi-year plan, initiated in 2025, aims to expand high-speed fiber broadband to an additional 30,000 homes in Alaska by 2028.
• Optimized Capital Allocation: GCI Liberty committed to returning value to shareholders through a $100 million share repurchase program authorized in Q4 2025, alongside continued strategic investments.
• Digital Transformation: The company is investing in AI-driven customer service platforms and operational automation to enhance efficiency and customer experience.

Market Trends and Regulatory Changes Affecting Operations: Several market trends and regulatory developments are shaping GCI Liberty's operating environment:

• 5G and Fiber Expansion: The ongoing national push for 5G wireless and widespread fiber broadband deployment continues to drive industry demand and investment.
• Streaming Services: The shift from traditional cable to over-the-top (OTT) streaming services impacts video revenue, prompting GCI to adapt its content offerings and focus on broadband as the core delivery mechanism.
• Data Privacy Regulations: Increased scrutiny and new legislation around data privacy (e.g., potential federal privacy laws) could necessitate changes in data handling and marketing practices.
• Infrastructure Funding: Potential federal and state infrastructure funding initiatives could provide opportunities for GCI Holdings to expand its network in underserved areas.
• Consolidation in Telecom: Ongoing merger and acquisition (M&A) activity in the broader telecom and media sectors could present both opportunities and competitive pressures.

Financial Health (Debt, Cash, Liquidity)

GCI Liberty maintains a robust financial position. As of December 31, 2025, the company held $280 million in cash and cash equivalents. Total consolidated debt reached $1.8 billion, primarily at the GCI Holdings level, carrying a weighted average interest rate of 4.5%. The net debt to Adjusted OIBDA ratio stood at 3.5x, which falls within management's target range and is considered manageable for the industry.

The company also has $400 million available under its revolving credit facility, providing strong liquidity. Its debt maturity schedule is well-laddered, with no significant maturities until 2027. GCI Liberty's strong cash flow generation and access to capital markets underscore its solid financial health.

Future Outlook (Guidance, Strategy)

GCI Liberty anticipates continued growth in 2026, projecting consolidated revenue growth of 2-4% and Adjusted OIBDA growth of 4-6%. The company plans to invest approximately $150 million in capital expenditures next year, primarily focusing on network upgrades and fiber expansion. Management remains optimistic about the long-term demand for high-speed connectivity and the strategic value of its diversified asset base. GCI Liberty expects to continue exploring opportunities for both organic growth and opportunistic acquisitions that align with its core competencies and financial objectives.

Competitive Position

GCI Liberty, primarily through GCI Holdings, holds a strong competitive position in Alaska. It benefits from an extensive fiber optic network and a long-standing presence as the state's largest telecommunications provider. Its integrated service offerings—including wireless, internet, video, and voice—provide a distinct advantage over single-service providers. The company differentiates itself with superior network coverage in remote areas, localized customer service, and strategic partnerships that enhance its service bundles. Furthermore, its diversified investment portfolio provides a hedge against specific industry downturns.