**Lumen Technologies Reports Smaller Q2 Loss, Raises Cash Flow Forecast**
Lumen Technologies has announced a smaller-than-anticipated loss for the second quarter of the year, alongside a significant increase in its full-year free cash flow forecast. The telecom and networking company reported an adjusted loss of 3 cents per share, which is notably better than analysts’ expectations of a 26-cent loss, as per data from LSEG.
The company has revised its 2025 free cash flow projection to between $1.2 billion and $1.4 billion, a substantial increase from the previous estimate of $700 million to $900 million. CFO Chris Stansbury attributed this optimistic outlook to strong performance and the benefits derived from recent tax legislation, which has allowed Lumen to invest more effectively.
The new tax law enables companies like Lumen to deduct a greater amount of interest expenses and accelerate the depreciation of significant investments, thereby enhancing short-term cash flow. For the quarter ending June 30, Lumen reported revenue of $3.09 billion, slightly below the analysts’ average estimate of $3.11 billion. This revenue shortfall included a $46 million adjustment related to the FCC’s Rural Digital Opportunity Fund (RDOF), following the sale of Lumen’s consumer fiber business to AT&T.
In May, Lumen agreed to sell its consumer fiber business to AT&T for $5.75 billion in cash, a strategic move aimed at sharpening its focus on enterprise services and reducing capital expenditures. The company also recorded a one-time non-cash goodwill impairment charge of $628 million associated with this divestiture, contributing to a net loss of $915 million for the quarter. Stansbury noted that this divestiture is expected to lower annual capital expenditures by approximately $1 billion while reducing adjusted core earnings by $150 million.
Lumen has reaffirmed its full-year adjusted EBITDA guidance, projecting a range of $3.2 billion to $3.4 billion, with expectations to reach the upper end of this range.
**FAQ**
**What factors contributed to Lumen Technologies’ improved financial outlook?**
Lumen Technologies’ improved financial outlook is primarily due to cost savings from tax legislation, strong operational performance, and strategic divestitures that are expected to enhance cash flow and reduce capital expenditures.
