Lumen Technologies Reports Strong Third Quarter Results; Signs Additional $1B in PCF Deals, Meets Key Transformation Milestones

During the third quarter, Lumen reported total revenue of $3.087 billion, a 4% decrease from $3.221 billion in the same period last year. Despite this decline, the company exceeded expectations for key financial metrics, including Adjusted EBITDA and Free Cash Flow. Notably, Lumen generated Adjusted EBITDA of $787 million, down from $899 million in Q3 2024, while Free Cash Flow reached $1.661 billion, a substantial increase from $1.198 billion year-over-year.

Lumen's CEO, Kate Johnson, expressed pride in the company's performance, stating, "This quarter, we demonstrated what disciplined execution and bold ambition can achieve... Our investments in Private Connectivity Fabric, NaaS, and digital innovation are opening new doors."

Lumen has made significant strides in its operational execution. The company successfully completed Phase I of its Enterprise Resource Planning (ERP) implementation, as well as progressing on the sale of its consumer fiber-to-the-home (FTTH) business to AT&T, which is expected to close in early 2026.

In October 2025, Lumen signed an additional $1 billion in new Private Connectivity Fabric (PCF) deals, bringing the total value of PCF agreements to over $10 billion. This includes scaling its Network as a Service (NaaS) platform and launching the IoD offnet innovation, designed to enhance connectivity and service offerings.

Despite the positive financial results, Lumen faced challenges, including a reported net loss attributed to several special items and increased costs. The company anticipates continuing its focus on transformation initiatives aimed at reducing operational costs, with a goal of achieving $1 billion in annualized cost savings by the end of 2027.

Lumen reiterated its full-year 2025 financial outlook, projecting:

Lumen Technologies continues to navigate a complex telecommunications landscape with strategic foresight and operational integrity. With a solid financial foundation and ambitious plans for growth, the company is poised to play a pivotal role in supporting the burgeoning demands of the digital economy, particularly as it builds the backbone of the AI economy. Investors and stakeholders will be keenly watching how Lumen capitalizes on its recent successes and addresses ongoing challenges in the quarters to come.

For more details about Lumen's performance, the management team will host a conference call at 5:00 p.m. ET today, which will be streamed live on Lumen's investor relations website.