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1. Company Snapshot

1.a. Company Description

Liberty Broadband Corporation engages in the communications businesses.It operates through GCI Holdings and Charter segments.The GCI Holdings segment provides a range of wireless, data, video, voice, and managed services to residential customers, businesses, governmental entities, and educational and medical institutions primarily in Alaska under the GCI brand.


The Charter segment offers subscription-based video services comprising video on demand, high-definition television, and digital video recorder service; local and long-distance calling, voicemail, call waiting, caller ID, call forwarding, and other voice services, as well as international calling services; and Spectrum TV.It also provides internet services, including an in-home Wi-Fi product that provides customers with high-performance wireless routers and managed Wi-Fi services; advanced community Wi-Fi; mobile internet; and a security suite that offers protection against computer viruses and spyware.In addition, this segment offers internet access, data networking, fiber connectivity to cellular towers and office buildings, video entertainment, and business telephone services; advertising services on cable television networks and digital outlets; and operates regional sports and news networks.


Liberty Broadband Corporation was incorporated in 2014 and is based in Englewood, Colorado.

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1.b. Last Insights on LBRDA

Liberty Broadband Corporation faced challenges in recent months, with the company's Q3 2025 earnings call indicating a cautious tone. The call, led by CEO Ronald Duncan, focused on the company's financials and operational performance. A quarterly Q&A conference call was also conducted on October 13, 2025, suggesting that management was actively engaging with investors. However, the earnings call prepared remarks transcript did not reveal any significant new product announcements or acquisitions. According to recent reports, the company's financial performance may be impacted by market conditions.

1.c. Company Highlights

2. Liberty Broadband Delivers Mixed Q1 Results Amidst Strategic Transformations

Liberty Broadband reported its Q1 2025 earnings, showcasing a mix of financial resilience and operational challenges. The company generated $266 million in revenue, a 9% year-over-year increase, driven by strong performance in data and business services. Adjusted OIBDA rose to $111 million, marking a 23% improvement, with margins expanding to 42%. This growth underscores the company's ability to navigate competitive pressures and macroeconomic uncertainties. Notably, EPS came in at $1.87, surpassing consensus estimates of $1.20, reflecting operational efficiency and cost management.

Publication Date: May -08

📋 Highlights
  • Charter Acquisition and Spin-off Update: - Charter's acquisition expected to close on June 30, 2027; GCI Liberty spin-off planned for summer 2023.
  • Financial Position: - Liberty Broadband holds $565 million in cash, $338 million in restricted cash, and $3.7 billion in debt.
  • GCI Q1 Performance: - GCI reported $266 million in revenue and $111 million in adjusted OIBDA, with a 42% margin.
  • Subscriber Trends: - GCI lost 400 wireless subs and 5,000 cable modem customers, partly due to prepaid losses and ACP program end.
  • CapEx and Fiber Investment: - GCI spent $49 million on CapEx, with $250 million net CapEx planned for 2025 for rural Alaska connectivity.

Operational Highlights: Managing Subscriber Losses and Fiber Outages

While Liberty Broadband posted solid financial results, operational challenges emerged. The company experienced a decline of 400 wireless subscribers and 5,000 cable modem customers, primarily due to prepaid losses and the expiration of the ACP program. Despite these headwinds, operating expenses decreased, benefiting from lower distribution costs and temporary savings related to fiber break repairs. Ron Duncan noted that the Quintillion Fiber outage disrupted services, though consumer services were partially restored, with full restoration expected by late summer. These disruptions highlight the fragility of rural connectivity infrastructure, a critical area of focus for Liberty Broadband.

Strategic Initiatives: Investing in Fiber and Preparing for Regulatory Changes

Liberty Broadband continued to invest heavily in its infrastructure, spending $49 million on CapEx during the quarter. The company expects net CapEx of $250 million for 2025, primarily aimed at enhancing rural Alaska's connectivity. A major milestone was achieved with the completion of the Bethel fiber connection, offering 5G wireless and unlimited broadband services. Management also emphasized preparedness for potential Supreme Court rulings on the Universal Service Fund, which could impact future funding for rural broadband initiatives. Additionally, Liberty Broadband is exploring pricing strategies, though no significant changes in consumer behavior have been observed due to macroeconomic factors.

Valuation and Expectations: Assessing Investor Sentiment

Liberty Broadband's valuation metrics suggest a mixed investment thesis. The stock trades at a P/S ratio of 13.17 and an EV/EBITDA of 14.81, reflecting the market's expectations for continued growth in broadband services. However, the company's net debt-to-EBITDA ratio of 3.18 raises concerns about leverage, particularly in a rising interest rate environment. Analysts expect revenue growth of 3.0% next year, though the stock's current valuation may already price in these expectations. Investors will closely monitor the company's ability to sustain margins and execute on its fiber expansion plans.

3. NewsRoom

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Liberty Broadband Corporation (LBRDK) Q3 2025 Earnings Call Prepared Remarks Transcript

Nov -05

Source: seekingalpha.com

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Liberty Broadband Corporation to Conduct Quarterly Q&A Conference Call

Oct -13

Source: businesswire.com

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Liberty Broadband Corporation to Conduct Quarterly Q&A Conference Call

Jul -15

Source: businesswire.com

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Liberty Broadband Corporation Completes Spin-Off of GCI Liberty, Inc.

Jul -14

Source: businesswire.com

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Liberty Broadband Corporation Announces When-Issued Trading, Ex-Dividend Date and Trading Symbol Information in Connection with Upcoming Spin-Off of GCI Liberty, Inc.

Jul -10

Source: businesswire.com

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Liberty Broadband Corporation Announces Record Date and Distribution Date for Spin-Off of GCI Liberty, Inc.

Jun -20

Source: businesswire.com

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SHAREHOLDER ALERT: Levi & Korsinsky, LLP Informs Shareholders of an Investigation into Liberty Broadband Corp

Jun -16

Source: accessnewswire.com

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SHAREHOLDER ALERT: Levi & Korsinsky, LLP Informs Shareholders of an Investigation Into Liberty Broadband Corp

Jun -13

Source: accessnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.00%)

6. Segments

Charter

Expected Growth: 1.2%

Charter's growth is driven by increasing demand for high-speed internet and video services, strategic acquisitions, and investments in network infrastructure. Additionally, the company's focus on customer retention, bundled offerings, and cost savings initiatives contribute to its growth. Liberty Broadband Corporation's support and guidance also play a crucial role in Charter's expansion.

Eliminate Equity Method Affiliate

Expected Growth: 0.8%

Liberty Broadband Corporation's 0.8 growth is driven by increasing demand for high-speed internet and video services, strategic acquisitions, and investments in network infrastructure. Additionally, the elimination of the equity method affiliate is expected to improve financial performance and enhance shareholder value.

GCI Holdings

Expected Growth: 1.1%

GCI Holdings' 1.1% growth is driven by increasing demand for high-speed data and video services in Alaska, coupled with strategic investments in network upgrades and expansion. Additionally, the company's focus on business and wholesale services, as well as its cost savings initiatives, contribute to its steady growth.

7. Detailed Products

Broadband Internet

High-speed internet services for residential and business customers

Video Services

Cable television services offering a range of channels and on-demand content

Voice Services

Landline phone services for residential and business customers

Business Services

Customized telecommunications solutions for businesses

Advertising Services

Targeted advertising solutions for businesses

Data and Cloud Services

Managed data and cloud services for businesses

8. Liberty Broadband Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Liberty Broadband Corporation operates in a highly competitive industry, and there are several substitutes available to customers. However, the company's strong brand reputation and high-quality services help to mitigate the threat of substitutes.

Bargaining Power Of Customers

Liberty Broadband Corporation's customers have limited bargaining power due to the company's strong market position and limited availability of alternative services.

Bargaining Power Of Suppliers

Liberty Broadband Corporation's suppliers have some bargaining power due to the company's dependence on them for high-quality equipment and services. However, the company's strong relationships with suppliers help to mitigate this threat.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry in the industry is high due to the presence of several established players, including Comcast, Charter, and AT&T. Liberty Broadband Corporation must continually innovate and improve its services to remain competitive.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 29.78%
Debt Cost 6.96%
Equity Weight 70.22%
Equity Cost 8.79%
WACC 8.25%
Leverage 42.42%

11. Quality Control: Liberty Broadband Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Nexstar Media

A-Score: 7.3/10

Value: 7.0

Growth: 8.2

Quality: 7.6

Yield: 7.0

Momentum: 7.0

Volatility: 6.7

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Comcast

A-Score: 6.5/10

Value: 8.4

Growth: 5.2

Quality: 8.0

Yield: 7.0

Momentum: 1.5

Volatility: 8.7

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Liberty Broadband

A-Score: 4.9/10

Value: 7.0

Growth: 9.0

Quality: 6.8

Yield: 0.0

Momentum: 2.0

Volatility: 4.7

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Frontier Communications Parent

A-Score: 4.5/10

Value: 7.0

Growth: 3.0

Quality: 3.1

Yield: 0.0

Momentum: 6.0

Volatility: 8.0

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Iridium Communications

A-Score: 4.4/10

Value: 5.6

Growth: 6.6

Quality: 6.0

Yield: 4.0

Momentum: 0.5

Volatility: 4.0

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Cogent Communications

A-Score: 4.1/10

Value: 5.2

Growth: 2.7

Quality: 2.1

Yield: 10.0

Momentum: 0.0

Volatility: 4.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

46.13$

Current Price

46.13$

Potential

-0.00%

Expected Cash-Flows