$LUMN

Lumen Technologies, Inc.

CIK:0000018926|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Thousands, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
OPERATING REVENUE	$ 2,805	$ 3,092	$ 5,704	$ 6,274
OPERATING EXPENSES
Cost of services and products (exclusive of depreciation and amortization)	1,415	1,624	2,850	3,311
Selling, general and administrative	779	755	1,573	1,430
Net loss (gain) on sale of business	31	0	(565)	0
Depreciation and amortization	668	688	1,332	1,401
Goodwill impairment	0	628	0	628
Total operating expenses	2,893	3,695	5,190	6,770
OPERATING (LOSS) INCOME	(88)	(603)	514	(496)
OTHER (EXPENSE) INCOME
Interest expense	(201)	(338)	(426)	(685)
Net gain (loss) on early retirement of debt (Note 5)	6	(236)	(220)	(271)
Other income, net	28	28	54	58
Total other expense, net	(167)	(546)	(592)	(898)
LOSS BEFORE INCOME TAXES	(255)	(1,149)	(78)	(1,394)
Income tax (benefit) expense	(54)	(234)	323	(278)
NET LOSS	$ (201)	$ (915)	$ (401)	$ (1,116)
BASIC AND DILUTED LOSS PER COMMON SHARE
BASIC (in dollars per share)	$ (0.20)	$ (0.92)	$ (0.40)	$ (1.12)
DILUTED (in dollars per share)	$ (0.20)	$ (0.92)	$ (0.40)	$ (1.12)
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING
BASIC (in shares)	1,004,104	994,543	1,001,498	992,906
DILUTED (in shares)	1,004,104	994,543	1,001,498	992,906

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
OPERATING ACTIVITIES
Net loss	$ (201)	$ (915)	$ (401)	$ (1,116)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization			1,332	1,401
Net gain on sale of business	31	0	(565)	0
Goodwill impairment	0	628	0	628
Deferred income taxes			(484)	(409)
Provision for uncollectible accounts			7	31
Net loss on early retirement of debt	(6)	236	220	271
Stock-based compensation			31	22
Changes in current assets and liabilities:
Accounts receivable			(68)	(80)
Accounts payable			(320)	172
Accrued income and other taxes			927	87
Other current assets and liabilities, net			(116)	(229)
Retirement benefits			(130)	(1)
Change in deferred revenue			1,772	718
Changes in other assets and liabilities, net			65	69
Other, net			24	101
Net cash provided by operating activities			2,294	1,665
INVESTING ACTIVITIES
Capital expenditures			(1,845)	(1,682)
Proceeds from sale of business			4,977	0
Proceeds from sale of property, plant and equipment, and other assets			21	31
Other, net			3	9
Net cash provided by (used in) investing activities			3,156	(1,642)
FINANCING ACTIVITIES
Net proceeds from issuance of long-term debt			1,728	4,261
Payments of long-term debt			(6,253)	(4,284)
Debt issuance and extinguishment costs and related fees			(15)	(308)
Other, net			(37)	(13)
Net cash used in financing activities			(4,577)	(344)
Net increase (decrease) in cash, cash equivalents and restricted cash			873	(321)
Cash, cash equivalents and restricted cash at beginning of period			1,014	1,900
Cash, cash equivalents and restricted cash at end of period	1,887	1,579	1,887	1,579
Supplemental cash flow information:
Income taxes refunded (paid), net			136	(7)
Interest paid (net of capitalized interest of $83 and $72)			(371)	(676)
Supplemental noncash information regarding financing activities:
Cancellation of term loans as part of refinancings (Note 5)			(2,318)	(121)
Issuance of term loans as part of refinancings (Note 5)			2,318	121
Cash, cash equivalents and restricted cash:
Cash and cash equivalents	1,876	1,568	1,876	1,568
Restricted cash included in Other current assets, net	3	2	3	2
Restricted cash included in Other assets, net	8	9	8	9
Total	$ 1,887	$ 1,579	$ 1,887	$ 1,579

CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
CURRENT ASSETS
Cash and cash equivalents	$ 1,876	$ 1,003
Accounts receivable, net of allowance of $45 and $67	1,377	1,314
Assets held for sale	0	4,285
Other current assets, net	856	1,307
Total current assets	4,109	7,909
Property, plant and equipment, net of accumulated depreciation of $24,377 and $23,744	20,300	19,575
OTHER ASSETS
Intangible assets, net	4,040	4,463
Other assets, net	2,333	2,395
Total other assets	6,373	6,858
TOTAL ASSETS	30,782	34,342
CURRENT LIABILITIES
Current maturities of long-term debt	56	88
Accounts payable	1,035	1,508
Accrued expenses and other liabilities
Salaries and benefits	654	854
Income and other taxes	755	279
Current operating lease liabilities	289	266
Interest	176	149
Other current liabilities	299	203
Liabilities held for sale	0	38
Current portion of deferred revenue	999	1,005
Total current liabilities	4,263	4,390
LONG-TERM DEBT	13,150	17,353
DEFERRED CREDITS AND OTHER LIABILITIES
Deferred income taxes, net	1,787	2,270
Benefit plan obligations, net	1,932	2,103
Deferred revenue	8,178	6,406
Other liabilities	2,960	2,937
Total deferred credits and other liabilities	14,857	13,716
COMMITMENTS AND CONTINGENCIES (Note 11)
STOCKHOLDERS' DEFICIT
Preferred stock—non-redeemable, $25.00 par value, authorized 2,000 and 2,000 shares, issued and outstanding 7 and 7 shares	0	0
Common stock, no par value, authorized 2,200,000 and 2,200,000 shares, issued and outstanding 1,030,122 and 1,025,446 shares	19,178	19,185
Accumulated other comprehensive loss	(564)	(601)
Accumulated deficit	(20,102)	(19,701)
Total stockholders' deficit	(1,488)	(1,117)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 30,782	$ 34,342