GCI Liberty Reports First Quarter 2026 Financial and Operating Results
GCI Liberty, Inc. (“GCI Liberty”) (Nasdaq: GLIBA, GLIBK) today reported first quarter 2026 results. Headlines include(1): GCI Liberty(2) revenue declined 4% to $256 million, operating income was ...
ENGLEWOOD, Colo.: GCI Liberty, Inc. (“GCI Liberty”) (Nasdaq: GLIBA, GLIBK) today reported first quarter 2026 results.
Headlines include(1):
- GCI Liberty(2) revenue declined 4% to $256 million, operating income was $30 million and Adjusted OIBDA(3) declined 18% to $93 million, inclusive of $13 million of items that are not comparable to the prior year period
- GCI Liberty generated net cash provided by operating activities of $329 million and free cash flow(3) of $99 million over the trailing twelve months ended March 31, 2026
- Total wireless lines in service increased 2% to 207,700
- Consumer cable modem subscribers declined 3% to 150,500
- GCI entered into a definitive agreement to acquire Quintillion, a fiber infrastructure provider in Alaska that will enable GCI to create a ringed subsea and terrestrial fiber network across Alaska with improved network resiliency and reliability
- GCI Liberty completed the acquisition of an approximate 6% equity interest in Liberty Latin America (“LLA”) from Searchlight Capital Partners for an aggregate cash purchase price of $107 million and is currently in discussions with Dr. John C. Malone, Chairman of the Board and Director Emeritus of LLA, with respect to the potential acquisition of his equity interests in LLA, including certain high vote shares, in exchange for newly issued GCI Liberty Series C shares
- GCI Liberty to change its name to Liberty Capital Corporation (“Liberty Capital”)
“GCI had another solid quarter, reflecting our continued commitment to providing the highest quality connectivity to our customers. We also announced GCI’s planned acquisition of Quintillion, bringing together two complementary networks that will increase the quality of Alaska’s communications infrastructure. The transaction is expected to be accretive to free-cash-flow and advances our long-term strategy to invest in critical network assets to enhance connectivity for all Alaskans,” said GCI Liberty CEO, Ron Duncan. “Additionally, GCI Liberty’s opportunistic investment in Liberty Latin America is the first step in executing our growth strategy as Liberty Capital. We remain focused on operating excellence while also creating long-term shareholder value through strategic capital deployment.”
Business Updates
On April 21, 2026, GCI entered into a definitive agreement under which GCI will acquire 100% of the equity in Q Gateway Intermediate Holdings, LLC (“Quintillion”), a fiber infrastructure provider in Alaska, in exchange for consideration of $310 million in cash subject to certain adjustments, reimbursement of up to $50 million for certain capital expenditures incurred by Quintillion and potential earn-out payments in 2028, 2029 and 2031. Closing is anticipated following the receipt of regulatory approval and satisfaction of customary closing conditions. Existing customer relationships, contractual obligations and service arrangements are expected to continue without change following the close of the transaction. The transaction is expected to bring together complementary subsea and terrestrial fiber networks to enhance the scale, resiliency and reach of GCI’s statewide network. The transaction is expected to provide cost efficiencies and to be accretive to free cash flow. Additional information regarding the proposed acquisition can be found in the 8-K filed by GCI Liberty with the Securities and Exchange Commission (“SEC”).
On April 16, 2026, GCI Liberty completed the purchase of approximately 61,000 Class A common shares and 12.3 million Class C common shares of LLA for $107 million in cash from Searchlight Capital. GCI Liberty is also currently in good faith discussions with Dr. Malone with respect to GCI Liberty’s potential acquisition of his equity interests in LLA, including certain high-vote shares, in exchange for newly issued Series C common stock of GCI Liberty.
GCI Liberty is renaming the public parent company to Liberty Capital Corporation. No changes will be made to the tickers as a result of the name change and its Alaska subsidiary will continue to operate under the GCI name and brand.
Discussion of Results
The following table provides the financial results of GCI Liberty for the first quarter of 2025 and 2026.
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(amounts in millions) |
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| 1Q25 |
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| 1Q26 |
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| % Change | ||
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Consolidated Financial Metrics |
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Revenue |
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Consumer |
| $ | 121 |
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| $ | 115 |
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| (5 | ) | % |
Business |
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| 145 |
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| 141 |
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| (3 | ) | % |
Total revenue |
| $ | 266 |
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| $ | 256 |
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| (4 | ) | % |
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Operating expenses (exclusive of depreciation and amortization): |
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Consumer direct costs |
| $ | (36 | ) |
| $ | (32 | ) |
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| 11 |
| % |
Business direct costs |
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| (26 | ) |
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| (32 | ) |
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| (23 | ) | % |
Technology expense |
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| (63 | ) |
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| (68 | ) |
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| (8 | ) | % |
Total operating expenses (exclusive of depreciation and amortization) |
| $ | (125 | ) |
| $ | (132 | ) |
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| (6 | ) | % |
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Selling, general and administrative expense (exclusive of stock-based compensation) |
| $ | (28 | ) |
| $ | (31 | ) |
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| (11 | ) | % |
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Stock-based compensation |
| $ | (2 | ) |
| $ | (8 | ) |
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| (300 | ) | % |
Depreciation and amortization |
| $ | (53 | ) |
| $ | (52 | ) |
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| 2 |
| % |
Acquisition costs |
| $ | - |
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| (3 | ) |
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| (100 | ) | % |
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Operating income (loss) |
| $ | 58 |
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| $ | 30 |
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| (48 | ) | % |
Operating income margin (%) |
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| 21.8 | % |
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| 11.7 | % |
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| (1,010 | ) | bps |
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Adjusted OIBDA(a) |
| $ | 113 |
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| $ | 93 |
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| (18 | ) | % |
Adjusted OIBDA margin(a) (%) |
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| 42.5 | % |
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| 36.3 | % |
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| (620 | ) | bps |
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Capital expenditures, net of grant proceeds |
| $ | (49 | ) |
| $ | (55 | ) |
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| (12 | ) | % |
| ____________________ | |
(a) | See reconciling schedule 1. |
GCI revenue decreased 4% in the first quarter of 2026. Consumer revenue decreased 5%, driven primarily by fully exiting the video business in 2025. Business revenue declined 3%, driven by a decline in data revenue.
Operating income decreased $28 million and Adjusted OIBDA decreased $20 million in the first quarter driven primarily by $13 million of items impacting year-over-year comparability as well as increased operating expenses. During the first quarter of 2025, GCI recognized a $4 million benefit from the successful appeal of rates for services provided to certain healthcare customers in prior years. The first quarter of 2025 also had a $2 million net benefit related to a fiber break on the Quintillion network in which GCI uses capacity that has since been restored. During the first quarter of 2026, operating expenses also increased primarily due to increased professional service fees driven by $4 million of incremental professional fees related to driving efficiencies. Selling, general and administrative expenses grew primarily due to $3 million of public company costs which were not in the cost base in the prior year quarter but will continue to be part of ongoing expenses. The decline in operating income was also impacted by higher stock-based compensation expense due to a delay in grants until the spin-off from Liberty Broadband Corporation was completed combined with a change in grant timing for GCI employees.
Year to date, GCI has spent $55 million, net of grant proceeds, on capital expenditures related primarily to improvements to the wireless and data networks in rural Alaska. GCI's net capital expenditures for the full year 2026 are expected to be $290 million, including $20 million carried over from 2025 due to normal course timing shifts. A significant portion of the increased capital expenditures in 2026 are related to hybrid fiber-coaxial network improvements.
On a trailing twelve-month basis through the first quarter of 2026, net cash provided by operating activities totaled $329 million and free cash flow over the same period was $99 million.
GCI Consumer | |||||||||||||
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(amounts in millions, except operating metrics) |
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| 1Q25 |
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| 1Q26 |
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| % Change | ||
GCI Consumer |
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Financial Metrics |
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Revenue |
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Data |
| $ | 61 |
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| $ | 59 |
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| (3 | ) | % |
Wireless |
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| 50 |
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| 52 |
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| 4 |
| % |
Other |
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| 10 |
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| 4 |
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| (60 | ) | % |
Total revenue |
| $ | 121 |
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| $ | 115 |
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| (5 | ) | % |
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Consumer direct costs |
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| (36 | ) |
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| (32 | ) |
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