Liberty Latin America Reports Q2 2026 Results

Gained 45,000 postpaid and broadband net adds in Q2

Operating Income & Adjusted OIBDA YoY growth

Significant expansion in cash flow from operations and Adjusted FCF

Completed preferred stock distribution; declared quarterly preferred dividend

Accelerated stock repurchase activity: over $60 million to date in 2026

DENVER, Colorado--(BUSINESS WIRE)--Liberty Latin America Ltd. (“Liberty Latin America” or “LLA”) (NASDAQ: LILA and LILAK, OTC Link: LILAB) today announced its financial and operating results for the three months (“Q2”) and six months (“YTD” or “H1”) ended June 30, 2026.

President and CEO Balan Nair commented, “The second quarter represented another strong quarter of postpaid mobile additions as well as highlighting better momentum in broadband. The broadband momentum includes our recovery in Jamaica and stronger net additions elsewhere in the group.”

“Adjusted OIBDA returned to YoY growth in the second quarter, while still being impacted by headwinds from Hurricane Melissa. Adjusted FCF showed a healthy advance of over $160 million YoY in the first half of 2026.”

“To further accelerate cost initiatives across the group, we are announcing a 10-year strategic agreement with Amdocs that brings greater scale, specialized expertise and expanded technology and AI capabilities to our IT operations. This further supports efforts to improve our cost base, drive Adjusted OIBDA margin expansion and improve capital efficiency. This transaction is expected to deliver in excess of $250 million in NPV to LLA.”

“As discussed at our first quarter earnings, we distributed $500 million of preferred stock in the second quarter and announce today our first quarterly dividend on September 15, 2026 to preferred shareholders. This provides for an attractive return on the preferred security while also indicating our confidence in future cash flow generation.”

“Reflecting this constructive outlook for the business and our conviction on value in the LLA equity, we accelerated share repurchases into the third quarter. Through 2026 to date the buyback is running at over $60 million and we will remain opportunistic on further purchases.”

Business Highlights

• Liberty Caribbean: Hurricane impacts lessening though still affecting YoY growth
  • Strong performance in postpaid mobile driven by FMC
  • Continued recovery in online fixed RGUs in Jamaica
• C&W Panama: Highest subscriber additions in the LLA group across broadband and postpaid
  • Accelerating broadband additions on higher gross adds and lower churn
  • Healthy prepaid additions despite prepaid to postpaid migration
• Liberty Networks: Projects driving top line
  • Revenue and Adjusted OIBDA supported by large subsea build project
  • Geopolitics driving increased carrier and enterprise interest in Venezuela
• Liberty Puerto Rico: Improving momentum on subscriber volumes continues
  • Third consecutive quarter of postpaid adds; traction on SIM-only product
  • Diminishing fixed broadband losses following network-quality focus
• Liberty Costa Rica: Improving Adjusted OIBDA
  • Holding firm on volumes in competitive fixed market
  • Cost savings starting to flow, driving up Adjusted OIBDA

Preferred Dividend Update

Liberty Latin America also today announced that its Board of Directors declared the regular quarterly cash dividend payable to holders of its 9.0% Series A Cumulative Redeemable Preferred Stock. The per share amount of the quarterly cash dividend will be $0.5625, payable in cash on September 15, 2026 to stockholders of record of the preferred stock at the close of business on September 1, 2026.

Financial and Operating Highlights

Revenue Highlights

The following table presents (i) revenue of each of our segments and corporate operations for the periods indicated and (ii) the percentage change from period-to-period on both a reported and rebased basis:

• Reported revenue for the three and six months ended June 30, 2026 was 1% higher compared to the corresponding prior-year periods. Rebased revenue over the respective periods was flat and 1% lower.
  • On a rebased basis, strong growth at Liberty Networks was offset by declines in Liberty Puerto Rico and, to a lesser extent, Liberty Caribbean.

Q2 2026 Revenue Growth – Segment Highlights

(All growth rates are year-over-year unless otherwise specified)

• Liberty Caribbean: revenue decreased 1% and 2% on a reported and rebased basis. For the second quarter of 2026, Hurricane Melissa negatively impacted revenue by $6 million on a net basis. We have seen continued strength in residential mobile, with subscription revenue growing 8%, driven by rising FMC penetration and strong postpaid subscriber additions, as well from supportive pricing on both postpaid and prepaid. Residential fixed revenue declined by 8% on a rebased basis with continued headwinds from offline and lost subscribers from Hurricane Melissa.
• C&W Panama: revenue was flat in Q2. Total residential revenue grew 1% supported by a double-digit expansion in the postpaid subscriber base, while we have also registered positive prepaid net additions for the last four quarters. B2B revenue was down 3% in Q2 driven by a decline in rates during the first quarter of 2026 related to data services provided to government-related agencies.
• Liberty Networks: revenue increased by 14% and 10% on a reported and rebased basis, respectively. This was driven by our El Salvador project and lease capacity sales in our Wholesale business. Enterprise continued to register low single-digit growth in the quarter.
• Liberty Puerto Rico: revenue was down 5% due to pressure on mobile, predominantly coming from a lower prepaid subscriber base following the Boost migration as well as from lower roaming revenue. Lower residential fixed pricing also contributed to the segment decline.
  • Sequentially, however, mobile service revenue trends were more supportive on the back of an increase in postpaid ARPU in Q2 as well as postpaid net additions. Residential fixed revenue declined only slightly on a sequential basis, reflecting more modest pricing weakness, as well as a second consecutive quarter of positive RGU additions.
• Liberty Costa Rica: revenue was up 11% on a reported basis and flat on a rebased basis. We continued to grow residential mobile revenue, up 6% on a rebased basis, on the back of the strong postpaid subscriber additions over the last twelve months. This continues, however, to be offset by the residential fixed business which saw revenue fall 11% on a rebased basis.

Operating Income

• We reported operating income (loss) of $181 million and ($333 million) for the three months ended June 30, 2026 and 2025, respectively, and $326 million and ($205 million) for the six months ended June 30, 2026 and 2025, respectively.
  • The improvements for each of the three and six-months comparisons are primarily due to (i) declines in impairment, restructuring and other operating items, as we incurred impairment on spectrum assets during the 2025 periods, and (ii) increases in Adjusted OIBDA.

Adjusted OIBDA Highlights

The following table presents (i) Adjusted OIBDA of each of our reportable segments and our corporate category for the periods indicated and (ii) the percentage change from period-to-period on both a reported and rebased basis:

• Adjusted OIBDA on a reported basis for the three and six months ended June 30, 2026 was up 5% and 2%, respectively, over prior-year periods. On a rebased basis, Adjusted OIBDA grew 3% and 1% over the corresponding periods.
  • We saw strong expansion in Adjusted OIBDA from Liberty Costa Rica, Liberty Networks and Liberty Puerto Rico, offset by declines in Liberty Caribbean and C&W Panama. The headwinds from Hurricane Melissa were $6 million on a net basis at the Adjusted OIBDA level in the second quarter.

Q2 2026 Adjusted OIBDA Growth – Segment Highlights

(All growth rates are year-over-year unless otherwise specified)

• Liberty Caribbean: Adjusted OIBDA fell by 5% on a reported basis and 6% on a rebased basis, largely resulting from the impact of Hurricane Melissa.
• C&W Panama: Adjusted OIBDA fell by 5% in Q2, reflecting higher professional services and commercial costs.
• Liberty Networks: Adjusted OIBDA increased by 10% and 9% on a reported and rebased basis, respectively, reflecting a positive delta from El Salvador project revenue and costs booked this quarter.
• Liberty Puerto Rico: Adjusted OIBDA increased by 7%. The improvement reflected a favorable year-over-year comparison on inventory charges, programming costs, as well as bad debt expenses.
• Liberty Costa Rica: Adjusted OIBDA increased by 18% and 7% on a reported and rebased basis, respectively, benefitting from cost-saving initiatives principally associated with reductions in commercial costs, including call center expenses and sales commissions. We continue to anticipate cost saving initiatives supporting trends in the coming periods.

Property & Equipment Additions and Capital Expenditures

The table below highlights the categories of the property and equipment additions (P&E Additions) for the indicated periods and reconciles to cash paid for capital expenditures, net.

Operating Income (Loss) less Property & Equipment Additions

• Operating income (loss) less property and equipment additions was $3 million and ($483 million) for the three months ended June 30, 2026 and 2025, respectively, and $37 million and ($475 million) for the six months ended June 30, 2026 and 2025, respectively.

Adjusted OIBDA less Property & Equipment Additions

The following table presents (i) Adjusted OIBDA less property and equipment additions for each of our reportable segments and Liberty Latin America for the periods indicated and (ii) the percentage change from period-to-period.

Summary of Debt, Finance Lease Obligations and Cash & Cash Equivalents

The following table details the U.S. dollar equivalent balances of the outstanding principal amounts of our debt and finance lease obligations, and cash and cash equivalents at June 30, 2026:

Residential Fixed ARPU per Customer Relationship

The following table provides residential fixed ARPU per customer relationship for the indicated periods:

Residential Mobile ARPU

The following table provides residential ARPU per mobile subscriber for the indicated periods:

Forward-Looking Statements and Disclaimer

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our strategies, priorities and objectives, financial and operational performance; cost reduction and efficiency initiatives; growth expectations; our digital strategy, product innovation and commercial plans and projects; subscriber growth; expectations on demand for connectivity in the region; the recovery by our Puerto Rico and Jamaica operations; the impact of Hurricane Melissa on our business and operations; the anticipated benefits from our partnership with Amdocs; the strength of our balance sheet and tenor of our debt; capital intensity expectations; future share repurchases; our future projected sources and uses of cash; and other information and statements that are not historical fact. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements. These risks and uncertainties include events that are outside of our control, such as hurricanes and other natural disasters, political or social events, and pandemics, such as COVID-19, the uncertainties surrounding such events, the ability and cost to restore networks in the markets impacted by hurricanes or generally to respond to any such events; the continued use by subscribers and potential subscribers of our services and their willingness to upgrade to our more advanced offerings; our ability to meet challenges from competition, to manage rapid technological change or to maintain or increase rates to our subscribers or to pass through increased costs to our subscribers; the effects of changes in laws or regulation; general economic factors; our ability to successfully acquire and integrate new businesses and realize anticipated efficiencies from acquired businesses; the availability of attractive programming for our video services and the costs associated with such programming; our ability to achieve forecasted financial and operating targets; the outcome of any pending or threatened litigation; the ability of our operating companies to access cash of their respective subsidiaries; the impact of our operating companies' future financial performance, or market conditions generally, on the availability, terms and deployment of capital; fluctuations in currency exchange and interest rates; the ability of suppliers and vendors to timely deliver quality products, equipment, software, services and access; our ability to adequately forecast and plan future network requirements including the costs and benefits associated with network expansions; and other factors detailed from time to time in our filings with the Securities and Exchange Commission, including our most recently filed Form 10-K and Form 10-Q. These forward-looking statements speak only as of the date of this press release. We expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

About Liberty Latin America

Liberty Latin America is a leading communications company operating in over 20 countries across Latin America and the Caribbean under the consumer brands BTC, Flow, Liberty and Más Móvil. The communications and entertainment services that we offer to our residential and business customers in the region include digital video, broadband internet, telephony and mobile services. Our business products and services include enterprise-grade connectivity, data center, hosting and managed solutions, as well as information technology solutions with customers ranging from small and medium enterprises to international companies and governmental agencies.

Investor Relations
Soomit Datta
ir@lla.com

Corporate Communications
Michael Coakley
llacommunications@lla.com