GCI Liberty saw its overall revenue increase during the second quarter (Q2) of the year, driven by growth in its business services segment and reduced costs across its entire operation, the company revealed this week.
The results, posted Thursday, came several weeks after GCI Liberty — formerly GCI Communication — completed its separation from Liberty Broadband Corporation. The spin-out was part of a broader transaction involving Liberty Broadband and Charter Communications. GCI is the largest provider of fiber-based telecom services in Alaska.
During the quarter, GCI pulled in $261 million in overall revenue, up 6 percent from the $246 million earned during the same period last year. Business revenue rose 14 percent to $142 million, driven by continued upgrades in schools and healthcare facilities across remote parts of the state. Consumer revenue fell 2 percent to $119 million amid declines in data and video customers tied to the 2024 end of the Affordable Connectivity Program, partially offset by growth in wireless services.
Operating income climbed 70 percent to $51 million, compared with $30 million in the prior-year quarter, while Adjusted OIBDA increased 26 percent to $108 million. Operating income margin rose to 19.5 percent from 12.2 percent, and Adjusted OIBDA margin improved to 41.4 percent from 35.0 percent.
“GCI delivered strong results during the quarter, reflecting our operating progress and breadth of connectivity services,” Ron Duncan, the CEO of GCI Liberty, said in prepared remarks. “The strength of our business translated into solid revenue and Adjusted OIBDA growth, which also reflects benefits from last year’s healthcare and education upgrade cycle and efficiencies in our cost structure that we are actively managing. Importantly, we were very pleased with the Supreme Court’s ruling in late June upholding the Universal Service Fund. This provides clarity for GCI to continue the critical work of bridging the digital divide and ensuring high quality connectivity across rural communities in Alaska.”
In the consumer segment, data revenue fell 5 percent to $60 million, with cable modem subscribers down 3 percent to 154,500. Wireless revenue grew 6 percent to $51 million, as consumer wireless lines rose 1 percent to 207,000. The company lost 1,300 cable modem subscribers but added 4,700 wireless lines in the quarter. Consumer gross margin improved slightly to 70.6 percent.
GCI Business saw data revenue increase 18 percent to $125 million, while wireless revenue declined 17 percent to $10 million. Business gross margin expanded to 81.7 percent from 74.4 percent, aided by lower direct costs.
Capital expenditures for the quarter totaled $51 million, down from $58 million a year earlier, with 2025 full-year net spending projected at approximately $250 million. Investments are focused on rural Alaska network expansion projects, including the Bethel and AU-Aleutians fiber builds, as part of the company’s commitments under the Federal Communications Commission’s Alaska Plan.
GCI Liberty ended the quarter with $117 million in cash, cash equivalents and restricted cash, and reduced total debt to $1.05 billion from $1.13 billion at the end of March. Trailing twelve-month net cash from operating activities was $342 million, with free cash flow of $153 million.
