Liberty Latin America Reports Q4 and FY 2025 Results

Sustained commercial momentum to finish the year

Operating income improvement; 9% FY 2025 rebased Adjusted OIBDA growth

Improving capital expenditure efficiency

Building back stronger in Jamaica

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 ("Q4") and full year ("FY") ended December 31, 2025.

CEO Balan Nair commented, "The fourth quarter capped a strong year of commercial momentum across the Liberty Latin America group."

"The residential mobile business maintained its cadence of strong postpaid mobile subscriber additions leveraging recent investments, including in 5G, and underpinned by our focus on FMC."

"Revenue was notably supported toward year-end by underlying strength in our B2B and B2G business line, particularly in Liberty Networks and C&W Panama. In Liberty Networks, we are on track with our infrastructure projects, including the construction of a new subsea route on behalf of El Salvador and our own system expansion with Manta, adding low latency and high capacity routes to Latin America, the Caribbean and the USA, that will drive incremental cash flow for LLA. Additionally, we are quite excited about our recently announced strategic agreement with Amazon Web Services that will bring enhanced products to customers in the region."

"Continued cost reductions and customer base management helped drive strong margin expansion across the group. Segment highlights included steep margin recovery at Liberty Puerto Rico, robust performance at Liberty Caribbean, despite significant headwinds from Hurricane Melissa, and double-digit FY rebased Adjusted OIBDA growth at C&W Panama. A number of efficiency initiatives are in flight across LLA which will be supportive to our financial performance in 2026."

"Our team has worked tirelessly in our recovery efforts in Jamaica, rapidly restoring our mobile service after a category 5 hurricane: we are now back to 100% and beyond pre hurricane levels. We continue to innovate our network transformation in mobile and are in the process of rebuilding our fixed network in line with the recovery of homes and businesses."

"For LLA, we drove year-over-year growth in Adjusted FCF before partner distributions, including a record fourth quarter. A key component of our performance was management of our capital intensity, which ended the year at 14% of revenue. As we turn to 2026, LLA continues to be highly focused on organic growth, cash flow expansion, and unlocking value in our equity."

Business Highlights

• Liberty Caribbean: Q4 headwinds from Hurricane Melissa
  • Mobile resilience and building back stronger in Jamaica
  • Strong YoY cost delivery supporting underlying Adjusted OIBDA
• C&W Panama: Q4 revenue growth of 10% YoY driven by B2B
  • B2B posted Q4 revenue growth of 24% YoY and 37% sequentially
  • Supportive margin mix lifts Adjusted OIBDA by 18% YoY
• Liberty Networks: Double-digit YoY revenue and Adjusted OIBDA growth in Q4
  • Recent government subsea win already contributing
  • Adjusted OIBDA margin expansion of ~200bps YoY in Q4
• Liberty Puerto Rico: Continued improvement in mobile
  • Return to positive postpaid net adds in Q4 following attractive CVP launch
  • Lower bad debt and cost reduction efforts drive YoY expansion in Adjusted OIBDA
• Liberty Costa Rica: FY record mobile postpaid net additions driving group momentum
  • Improved fixed volumes against a tough market backdrop
  • Cost initiatives in focus for 2026

Financial and Operating Highlights

Amounts may not recalculate due to rounding.

Note: rebased growth rates, consolidated Adjusted OIBDA and Adjusted FCF are non-GAAP measures. Revenue and Adjusted OIBDA reflect immaterial adjustments made to previously reported 2024 numbers. Growth rates reflect these and are also rebased for the estimated impacts of FX, acquisitions and disposals. See Non-GAAP Reconciliations section.

1. See Glossary for the definition of RGUs and mobile subscribers. Organic figures exclude RGUs and mobile subscribers of acquired entities at the date of acquisition and other non-organic adjustments, but include the impact of changes in RGUs and mobile subscribers from the date of acquisition. All subscriber / RGU additions or losses refer to net organic changes, unless otherwise noted.
2. In late October 2025, Hurricane Melissa impacted portions of Jamaica, causing significant damage to homes and network infrastructure. As a result, we have reduced our RGUs by approximately 136,000, comprised of 65,000 fixed-line telephony, 57,000 broadband internet and 14,000 video subscribers, and have reduced our homes passed and customer relationships by 133,000 and 57,000, respectively. These adjustments relate to RGUs where we currently do not expect to restore fixed services in the near term. However, our final assessment may change based upon the ultimate completion of our restoration and reconnection efforts in the impacted areas of the island. Our December 31, 2025 RGU count includes approximately 86,000 RGUs that were not receiving service as of the end of the year, but are expected to be restored in the near term, and for which we did not recognize any revenue following Hurricane Melissa.

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 and rebased revenue for the year ended December 31, 2025 was flat and 1% lower as compared to the corresponding prior-year periods, respectively.
  • In Q4, revenue grew 1% YoY on a reported and rebased basis. Strong growth at C&W Panama and Liberty Networks was partly offset by unfavorable YoY trends in Puerto Rico as well as headwinds from Hurricane Melissa impacting our Liberty Caribbean segment.

Q4 2025 Revenue Growth – Segment Highlights

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

• Liberty Caribbean: revenue decreased 4% on both a reported and rebased basis, driven by the negative impact of Hurricane Melissa from the end of October. For the fourth quarter we estimate that Hurricane Melissa negatively impacted revenue by $20 million.
  • The Jamaican mobile network recovered quickly after the hurricane, and subsequently saw a solid uplift in prepaid revenue; the smaller postpaid business has proved quite resilient. We recorded residential mobile revenue growth of 4% and 5% on a reported and rebased basis, respectively, across Liberty Caribbean supported by the continued success of FMC.
  • Residential fixed revenue was most exposed to the hurricane in Jamaica. Revenue declined by 10% and 9% on a reported and rebased basis, respectively, mainly due to the headwind of offline and lost subscribers from Hurricane Melissa. Underlying residential fixed revenue continued to feel some pressure across the region from video and voice volumes.
  • B2B revenue declined by 6% on both a reported and rebased basis driven by the impact of Hurricane Melissa and given the relatively high weighting of fixed revenue within our B2B business.
• C&W Panama: revenue increased by 10% on both a reported and rebased basis.
  • The principal driver of this strong performance was B2B, delivering 24% growth on a rebased basis, due to higher revenue from new government-related projects. Sequentially, B2B revenue increased by $29 million.
• Liberty Networks: revenue increased by 18% and 14% on a reported and rebased basis, respectively. This was driven principally by our Wholesale business, in turn supported by a large contract win as well as ongoing momentum in subsea capacity.
• Liberty Puerto Rico: revenue was 4% lower on both a reported and rebased basis. As seen in prior quarters, our rebased revenue decline was due to both a 3% decrease in residential mobile and a 4% decline in B2B, resulting from the challenges with our mobile network migration in 2024.
  • Sequentially, revenue grew by 1% supported by higher mobile equipment sales in the seasonally strong period.
• Liberty Costa Rica: revenue was flat on a reported basis and fell 2% on a rebased basis, respectively. Strength in our residential business was driven by solid growth in postpaid mobile revenue, having grown the postpaid subscriber base by 16% in 2025. This was offset by weaker B2B (-28%) as we faced a tough comparison with the prior-year period.
  • Sequentially, segment revenue increased by 9%.

Operating Income (Loss)

• We reported operating income (loss) of $126 million and $119 million for the three months ended December 31, 2025 and 2024, respectively, and $108 million and $(77) million for the year ended December 31, 2025 and 2024, respectively.
  • The improvement for the three month comparison is primarily due to the net effect of (i) an increase in Adjusted OIBDA, (ii) an increase in impairment, restructuring and other operating items, net, mostly attributable to Hurricane Melissa, and (iii) a decline in share-based compensation expense. The improvement for the full-year comparison is primarily driven by (i) an increase in Adjusted OIBDA and (ii) a decrease in depreciation and amortization.

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 for the year ended December 31, 2025 increased by 9% on both a reported and rebased basis as compared to the corresponding prior-year periods. For the fourth quarter, corresponding YoY growth rates were 8%.
  • Adjusted OIBDA increased in Q4 given strong YoY expansion at C&W Panama, Liberty Networks and Liberty Puerto Rico and notwithstanding the impact of Hurricane Melissa. These headwinds represented $27 million at the Adjusted OIBDA level in the fourth quarter.
  • Across LLA, we maintain a number of cost initiatives, which are providing our operating segments and corporate, with enhanced operating leverage, as we streamline our operating structure and achieve cost efficiencies. These activities should continue to bear fruit in 2026.

Q4 2025 Adjusted OIBDA Growth – Segment Highlights

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

• Liberty Caribbean: Adjusted OIBDA fell by 9% and 8% on a reported and rebased basis, respectively, resulting from the drag of Hurricane Melissa more than offsetting strongly improving underlying costs over the period.
• C&W Panama: Adjusted OIBDA increased by 18% on both a reported and rebased basis, driven by the aforementioned strength in B2B project revenue and supported by a favorable YoY margin mix.
• Liberty Networks: Adjusted OIBDA increased by 22% and 21% on a reported and rebased basis, respectively, primarily due to higher revenue and a favorable phasing of project-related costs for the fourth quarter.
• Liberty Puerto Rico: Adjusted OIBDA increased by 26% on both a reported and rebased basis, despite the aforementioned rebased revenue decline.
  • Adjusted OIBDA benefited from a significant reduction in bad debt expense versus the prior-year period. In addition, the business has been engaged in an aggressive cost-out program in 2025 and, as a result, has been able to further streamline and right size its operating structure and processes to complement its current customer base.
• Liberty Costa Rica: Adjusted OIBDA declined by 1% and 3% on a reported and rebased basis, respectively. This reflected lower year-over-year revenue on a rebased basis, along with higher bad debt expense.

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.

1. Table excludes Liberty Networks as that reportable segment only provides B2B-related services.
2. The table above includes the impact of 133,000 homes that we no longer pass as they were fully damaged or destroyed as a result of Hurricane Melissa and are now no longer in our count of homes passed.

Operating Income (Loss) less Property & Equipment Additions

• Operating income (loss) less property and equipment additions was $(95) million and $(122) million for the three months ended December 31, 2025 and 2024, respectively, and $(532) million and $(802) million for the year ended December 31, 2025 and 2024, 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.

1. Adjusted OIBDA less property and equipment additions for Liberty Latin America on a consolidated basis is a non-GAAP measure. Note that the sum of the reportable segments will not agree to the total for Liberty Latin America as we do not disclose amounts associated with our Corporate operations or intersegment eliminations. For the definition of Adjusted OIBDA less property and equipment additions and required reconciliations, see Non-GAAP Reconciliations section.

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 December 31, 2025:

1. Represents the aggregate amount held by subsidiaries of Liberty Latin America that are outside our borrowing groups.
2. Represents the C&W borrowing group, including the Liberty Caribbean, Liberty Networks and C&W Panama reportable segments.
3. Cash amount includes restricted cash that serves as collateral against certain letters of credit associated with the funding received from the FCC to continue to expand and improve our fixed network in Puerto Rico.
4. Consolidated leverage ratios are non-GAAP measures. For additional information, including definitions of our consolidated leverage ratios and required reconciliations, see Non-GAAP Reconciliations section.
5. For purposes of calculating our weighted average tenor, total debt excludes vendor financing, debt related to the Tower Transactions, other debt and finance lease obligations.
6. At December 31, 2025, the full amount of unused borrowing capacity under the applicable credit facilities was available to be borrowed, both before and after completion of the December 31, 2025 compliance reporting requirements.

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:

1. The FX-Neutral change represents the percentage change on a sequential basis adjusted for FX impacts and is calculated by adjusting the current-period figures to reflect translation at the foreign currency rates used to translate the prior-quarter amounts.
2. The decline in residential fixed ARPU in C&W Panama was impacted by a $5 million adjustment to unearned revenue in the fourth quarter of 2025.
3. The ARPU per customer relationship amounts in Costa Rican colones for the three months ended December 31, 2025 and September 30, 2025 were CRC 18,047 and CRC 18,516, respectively.
4. The mobile ARPU amounts in Costa Rican colones for the three months ended December 31, 2025 and September 30, 2025 were CRC 6,005 and CRC 5,687, respectively.

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; 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 operations; the impact of Hurricane Melissa on our business and operations; anticipated benefits from our partnership with AWS; the strength of our balance sheet and tenor of our debt; capital intensity expectations; our capital return policy; and other information and statements that are not historical fact.

Investor Relations
Soomit Datta
ir@lla.com

Corporate Communications
Michael Coakley
llacommunications@lla.com