Lumen Technologies (LUMN) Reports Q2 Earnings with Improved Outlook

Q2 2025 Earnings — Narrowed Loss and Higher FCF Outlook Amid Strategic Shift
Lumen reported Q2 results on July 31. The telecom firm is transitioning from legacy infrastructure to an AI-enabled enterprise fiber platform.

• Revenue: $3.09 billion, down 5.4% YoY
• Non-GAAP EPS: –$0.03 (vs. –$0.25 est)
• GAAP EPS: –$0.92 (includes $628M goodwill impairment)
• Adjusted EBITDA: $877M (down from $1.01B YoY)
• 2025 FCF Guidance Raised: $1.2B–$1.4B

Strategic Update:
Lumen completed its $5.75B Fiber-to-the-Home sale to AT&T, strengthened its balance sheet, and launched a $9B “AI connectivity fabric” initiative targeting hyperscaler demand.

Stock Reaction (Aug 1):
LUMN ended the day down 16.74% to $3.71, reflecting investor caution despite improved free cash flow outlook.

Key Takeaway:
Lumen’s transformation is underway, but legacy headwinds and impairment charges continue to weigh on near-term sentiment.