Liberty Capital Corporation

What they do

Liberty Capital owns 100% of GCI, LLC, which provides wireline and wireless telecommunications, video, and broadband services in Alaska. The company operates through Consumer and Business segments, offering data, voice, video, and wireless services to residential and commercial customers. It is newly independent, having completed a separation from Liberty Broadband in July 2025.

Revenue drivers

• Consumer — Consumer revenue was $117 million in Q2 2026, down 2% year-over-year; six-month revenue $232 million, down 3%. Includes residential broadband, video, and wireless services.
• Business — Business revenue was $144 million in Q2 2026, up 1%; six-month revenue $285 million, down 1%. Includes enterprise data, voice, and managed services.
• Total revenue — Total revenue was flat at $261 million in Q2 2026; six-month revenue $517 million, down 2% from $527 million in the prior year.

Recent performance

For the second quarter of 2026, Liberty Capital reported total revenue of $261 million, flat year-over-year, and operating income of $29 million. Adjusted OIBDA declined 11% to $96 million. Net cash provided by operating activities was $308 million and free cash flow was $59 million over the trailing twelve months ended June 30, 2026. The company repurchased $129 million of its 2028 unsecured notes after quarter end. For fiscal 2025, the company reported net income of -$309 million on revenue of $1.05 billion.

Strategy

Management states priorities of driving operational excellence and growing free cash flow at GCI, while generating shareholder value through opportunistic investments and capital returns. The company is pursuing the acquisition of Quintillion, expected to close this year, and has secured additional financing capacity to support it. Liberty Capital intends to initiate a recurring quarterly dividend beginning in December 2026, with an aggregate amount of approximately $60 million annually at inception. The company also regularly assesses opportunities to address its remaining Senior Notes due 2028.

Risks

• Competition — GCI faces competition, including from non-geostationary satellites and other providers receiving federal grants to construct additional terrestrial networks.
• Indebtedness — The company has significant debt ($1.2 billion long-term debt as of June 30, 2026) and may be unable to obtain additional financing or refinance existing indebtedness on acceptable terms.
• Regulatory changes — Changes in FCC regulations, including Universal Service Fund programs, could adversely affect results of operations.
• Customer demand — Customer losses or changes in demand for its products and services could negatively impact financial performance.

Outlook

Management expects GCI to deliver stable performance this year with a step-up in cash generation next year. The company intends to close the Quintillion acquisition this year. It plans to initiate a quarterly dividend in December 2026, subject to board declaration. Management expects to continue evaluating attractive investment opportunities.