Liberty Latin America (NASDAQ:LILA) reported second-quarter revenue of $1.1 billion, up 1% on a reported basis and flat on a rebased basis, while adjusted OIBDA rose 3% year over year on a rebased basis to $436 million. The company added 45,000 mobile postpaid and broadband subscribers during the quarter, with positive contributions across its operating segments.
CEO Balan Nair said the quarterly performance reflected continued mobile postpaid momentum and improving broadband additions, including progress beyond the company’s recovery efforts in Jamaica. Consolidated adjusted OIBDA margin reached 40%, an increase of approximately 130 basis points from a year earlier, according to CFO Chris Noyes.
Cash Flow, Capital Spending and Capital Allocation
Adjusted free cash flow before distributions was $83 million in the second quarter and $19 million for the first half. Those figures represented increases of $124 million and $164 million, respectively, from the comparable periods of 2025. Noyes attributed the improvement to stronger operating cash flow, working-capital performance and vendor-financing timing.
The company said free cash flow remains weighted toward the fourth quarter. However, Noyes cautioned that second-half cash flow will likely be less robust than the prior-year period, partly because the company received $81 million of weather-derivative proceeds in the fourth quarter of 2025 following Hurricane Melissa.
Property and equipment additions totaled $179 million in the quarter and $289 million year to date, or 16% and 13% of revenue, respectively. The company expects capital spending to be higher in the second half than in the first half, while remaining within the same percentage-of-revenue range as 2025 for the full year.
Liberty Latin America had $8.5 billion of total debt, $700 million of cash and consolidated net leverage of 4.6 times at quarter-end, along with approximately $900 million of borrowing capacity.
During June, the company distributed roughly $500 million of notional value of preferred stock to common shareholders. The preferred instrument carries a 9% annual dividend, paid quarterly. The company also repurchased more than $60 million of common stock through the third quarter to date and had nearly $140 million remaining under its repurchase authorization.
Nair said management intends to remain opportunistic but disciplined with repurchases, noting that the company views its common shares as undervalued. He said the company would weigh repurchases against deleveraging and potential acquisition opportunities, though he added that management currently sees no opportunity offering better value than its own stock.
Caribbean, Panama and Costa Rica Operations
Liberty Caribbean added 11,000 postpaid subscribers during the second quarter, including 6,000 in Jamaica. The company launched 5G service in Jamaica in June, covering about 70% of the population and serving both residential and enterprise postpaid customers.
Revenue at Liberty Caribbean was $362 million and adjusted OIBDA was $165 million, both reflecting rebased year-over-year declines. Noyes said Hurricane Melissa reduced revenue and adjusted OIBDA by roughly $6 million combined during the quarter. He said the recovery is progressing and that the business is positioned for “much improved results” in the fourth quarter.
Nair said Jamaica’s mobile business has improved following the hurricane, including market share and ARPU gains. The company is approaching pre-hurricane operating levels in fixed services, though he said some homes will not be rebuilt. Its business-to-business operations are largely back, with bad debt “pretty much under control,” he said.
Cable & Wireless Panama generated $177 million of revenue and $65 million of adjusted OIBDA. Revenue was flat year over year, while adjusted OIBDA declined 5%, reflecting lower business-to-business revenue and higher professional-services costs. The segment’s adjusted OIBDA margin was 37%.
Panama delivered the group’s highest subscriber additions across postpaid mobile and broadband. Postpaid subscribers grew at a double-digit year-over-year rate, while fixed-mobile convergence penetration exceeded 40%. Residential broadband net additions rose to 10,000, aided by commercial efforts and lower churn.
The company initiated postpaid price increases in Panama in July, followed by fixed-service increases later in the month and in early August. Nair said early customer feedback was supportive, including lower customer-care contacts and reduced churn compared with historical price actions.
In Costa Rica, revenue was flat on a rebased basis at $169 million, while adjusted OIBDA increased 7% on a rebased basis to $64 million. The adjusted OIBDA margin expanded about 200 basis points to 38%, which Noyes said partly reflected the impact of cost-reduction and efficiency initiatives. Mobile revenue rose 6%, offsetting declines in residential fixed and business-to-business revenue.
Puerto Rico Progress and Financing
Liberty Puerto Rico reported $288 million in revenue, down 5% on a rebased basis, while adjusted OIBDA increased 7% to $93 million. Its adjusted OIBDA margin expanded to 32% from 29% a year earlier.
The unit posted positive postpaid additions for a third consecutive quarter. Nair said postpaid churn improved significantly during the first half, and by the end of July the company had become a net port-in gainer against both competitors for the first time since its migration. He attributed the performance to channel improvements, new talent, network investments, additional spectrum and a mix of subsidized and unsubsidized mobile offers.
Liberty Puerto Rico also continued to reduce broadband churn, while video net additions remained positive for a second consecutive quarter. The company implemented a $2 monthly price increase across its television portfolio after growth in video gross additions and stabilization in churn.
For near-term liquidity, the Puerto Rico business raised financing through unrestricted subsidiaries, including a $140 million revolving credit facility maturing in 2030 and a $200 million senior secured term loan facility. Of the term loan, $150 million has been drawn and $50 million remains available.
Nair said Puerto Rico is self-funded through local operations and that the company continues to work constructively with debt counterparties on its capital structure. A potential spinoff remains among the options being considered, he said.
Networks Expansion and AI Cost Program
Liberty Networks was the company’s strongest revenue performer, delivering $130 million in revenue and $67 million in adjusted OIBDA. Revenue and adjusted OIBDA increased 10% and 9%, respectively, on a rebased basis. Wholesale revenue rose 14%, supported by a milestone on an El Salvador subsea project and lease-capacity sales, while enterprise revenue increased 3%.
The company is also launching Phoenix, a 378-kilometer submarine cable extension into Venezuela through the Americas-II route. Nair said the project will provide 14 terabytes of capacity and direct access to Caracas, which he described as the country’s largest concentration of enterprise and carrier demand.
Nair said Liberty Networks has high cash conversion and operating contribution margins, and that the company intends to pursue additional organic and potential inorganic growth opportunities in the business.
Separately, Liberty Latin America announced an AI-driven IT services agreement with Amdocs that it estimates has a net present value exceeding $250 million. Nair said the transition is expected to begin in the fourth quarter, with cost savings beginning then as well. The agreement is intended to modernize legacy systems, support AI capabilities and reduce operating and capital expenditures over time.
About Liberty Latin America (NASDAQ:LILA)
Liberty Latin America is a telecommunications company that provides video, broadband internet, telephony and mobile services across Latin America and the Caribbean. The company’s operations span consumer and business markets, offering cable television packages, high-speed broadband connections, fixed-line voice services and wireless data plans. Through its brands, including Flow in several Caribbean territories and VTR in Chile, Liberty Latin America focuses on delivering converged digital solutions designed to meet both residential and enterprise needs.
Formed in 2018 as a spin-off from Liberty Global, Liberty Latin America built its initial footprint by integrating legacy assets acquired from Cable & Wireless Communications and Columbus Communications.
