Highlights

  • Second quarter 2026 revenue fell 9% to $2.81 billion, while the net loss narrowed to $201 million from $915 million.
  • Strategic Business revenue rose 14% to $1.29 billion on dark fiber and conduit, while Legacy revenue fell 15%.
  • Total debt stood at $13.4 billion at June 30, 2026, after the $5.72 billion Mass Markets fiber sale.
  • Lumen closed its $487 million Alkira acquisition on July 1 and projects $3.2 billion to $3.4 billion of capital spending.

Lumen Technologies, Inc. (NYSE:LUMN) shares were trading near their 52-week low at USD 4.43 on October 21, 2026, down 1.23%. The filings show that Lumen closed the sale of its Mass Markets Fiber-to-the-Home business to AT&T on February 2, bought Alkira on July 1 and reported second quarter 2026 results in a quarterly report filed August 4.

Lumen is a Louisiana corporation headquartered in Monroe, Louisiana, and describes itself as a digital networking services company serving enterprises in a multi-cloud, AI-first market. It sells to Business customers through Large Enterprise, Mid-Market Enterprise, Public Sector, Wholesale, and International and Other channels, with revenue split between Strategic and Legacy products, and serves a smaller Mass Markets base of residential and small business customers. Its fiscal year ends December 31.

Revenue Lower After Divestiture, Loss Narrower

Operating revenue for the quarter ended June 30, 2026 was $2.81 billion, down 9% from $3.09 billion, mainly because of the divestiture. Mass Markets revenue fell 40% to $361 million, with Fiber Broadband revenue down 92% to $17 million. Business revenue declined 2% to $2.44 billion. Within it, Strategic revenue grew 14% to $1,289 million, including a $109 million increase from dark fiber and conduit, while Legacy revenue dropped 15% to $1,155 million on declines in VPN, voice and private line services.

Lumen reported an operating loss of $88 million, compared with $603 million a year earlier, when it booked a $628 million goodwill impairment. The current quarter included a $31 million net loss on the sale of the business. The net loss was $201 million, or $0.20 per share, against $915 million, or $0.92. For six months, the net loss was $401 million, including a $565 million net pre-tax gain on the divestiture.

The sale carried obligations. Lumen recorded $729 million of liabilities for contractual credits and commercial agreements, including a 20-year indefeasible right of use for AT&T over certain retained fiber at no extra charge, and it provides transition services. Management expects the sale to reduce recurring revenue and operating cash flow, and to cut Mass Markets fiber capital expenditures by about $1 billion a year.

Debt Paydown, Liquidity and Legal Matters

Lumen received $5.72 billion of pre-tax cash proceeds, subject to post-closing adjustments, and applied $4.8 billion along with cash on hand to repurchase debt on February 2. Total long-term debt fell to $13.2 billion from $17.4 billion at the end of 2025, and total consolidated indebtedness was $13.4 billion, including $6.8 billion of secured debt. In May, Level 3 Financing issued $1.0 billion of 7.500% senior notes due 2037, and on April 14 Lumen entered an $825 million revolving credit agreement.

At June 30, Lumen held $1.9 billion in cash and had $660 million of revolver capacity after letters of credit. Capital expenditures were $1.85 billion in the six months. The Alkira purchase will reduce liquidity by the $487 million paid. Management said it believes liquidity will cover requirements for at least 12 months and plans to refinance a substantial portion of maturing debt later, subject to market conditions and covenants.

The filing also describes continuing legal matters, including securities and derivative suits, class actions over lead-sheathed cables, a Fair Credit Reporting Act class action, Marshall Fire litigation, Latin American tax indemnification claims and federal information requests, including a Justice Department False Claims Act demand, about Huawei equipment.

Outlook and Stated Priorities

Lumen's stated strategy centers on expanding network capacity through its AI backbone initiative, selling Private Connectivity Fabric solutions that monetize excess conduit and fiber, managing non-core business for cash flow and lowering costs and debt. The filing says it expects continued decline in legacy services and growth in strategic products, and that it expects to sign more PCF agreements but cannot assure when. It projects $3.2 billion to $3.4 billion of capital expenditures over the next 12 months, primarily for network modernization and fiber expansion.