- Total Revenue and Adjusted EBITDA Growth: 2025 total revenue remained flat at $728 million, while adjusted EBITDA increased by 3% to $190.0 million.
- Tower Portfolio Sale: Pending sale of Southwest U.S. tower portfolio for up to $297 million, expected to modestly reduce EBITDA but strengthen the balance sheet with proceeds.
- 2026 EBITDA Outlook: Adjusted EBITDA projected to rise to $190–200 million (excluding tower sale impact), with capital expenditures remaining disciplined at $105–115 million.
- Subscriber Growth and Strategy Shift: 11% YoY improvement in high-speed data subscribers in 2025; strategic focus on carrier services and broadband, exiting unprofitable legacy markets.
- Balance Sheet Strengthening: Cash, cash equivalents, and restricted cash rose to $117.2 million, with a net debt ratio of 2.36x as of 2025.
Segment Performance
The International segment saw growth in mobility and high-speed data subscribers, driving adjusted EBITDA expansion. In the U.S. segment, the company is shifting its focus towards carrier managed services and away from legacy consumer offerings. This strategic shift is expected to drive growth in high-speed data subscribers in 2026, with the company nearing a point where the decline of legacy services will no longer detract from the overall growth of its broadband business.
Outlook and Guidance
For 2026, the company expects adjusted EBITDA to increase modestly to a range of $190 million to $200 million, excluding the impact of the pending tower sale. Capital expenditures are expected to remain within a disciplined range of $105 million to $115 million. The company's CFO, Carlos R. Doglioli, highlighted the improvement in operating income, adjusted EBITDA, and cash generation, with total cash, cash equivalents, and restricted cash increasing to $117.2 million.
Valuation and Metrics
With a P/E Ratio of -24.75 and an EV/EBITDA of 5.78, the market is pricing in a challenging near-term environment. However, the company's Dividend Yield of 4.4% and Free Cash Flow Yield of 11.9% suggest that the stock may be attractive to income investors. The Net Debt / EBITDA ratio of 3.52x indicates a relatively high level of leverage, but the company's plans to strengthen its balance sheet through the pending tower sale are expected to mitigate this.
Strategic Developments
The company announced the pending sale of its Southwest U.S. tower portfolio for up to $297 million, which is expected to modestly reduce revenue and EBITDA but provide meaningful proceeds to strengthen the balance sheet. As Brad W. Martin explained, the sale will not impact the company's ability to provide managed services to carriers, and the company expects to continue driving operating efficiencies and allocating capital in a disciplined way.