Liberty Latin America-CL A (NASDAQ:LILA) Q2 2025 Earnings: Revenue and EPS Miss Estimates Amid Widening Losses

Liberty Latin America Ltd. (NASDAQ:LILA) Reports Q2 2025 Earnings: Revenue Misses Estimates, EPS Falls Short

Liberty Latin America Ltd. (LILA) released its second-quarter 2025 financial results, revealing a mixed performance relative to analyst expectations. The company reported revenue of $1.087 billion, falling short of the consensus estimate of $1.126 billion. Earnings per share (EPS) came in at -$2.12, significantly below the estimated -$0.0459. The market reaction has been negative, with pre-market trading showing a decline of approximately 2.23%, reflecting investor disappointment.

Key Financial Highlights

• Revenue Decline: Reported revenue decreased by 3% year-over-year (YoY) on both a reported and rebased basis, impacted by lower contributions across most segments except Liberty Costa Rica.
• Adjusted OIBDA Growth: Despite revenue challenges, Adjusted OIBDA rose by 7% YoY to $415 million, driven by cost efficiencies, particularly in Liberty Caribbean and Liberty Puerto Rico.
• Net Loss Widens: Net loss attributable to shareholders deepened to $423 million in Q2 2025, compared to a $43 million loss in the prior-year period, largely due to a $494 million impairment charge related to spectrum licenses in Puerto Rico.
• Subscriber Trends: The company added approximately 45,000 net organic broadband and postpaid mobile subscribers across key markets but saw a decline in total mobile subscribers (-84,900 net losses in Q2).

Market Reaction & Outlook

The stock’s pre-market decline suggests investor concern over the revenue miss and widening losses. While Adjusted OIBDA growth and cost-saving initiatives provided some positive signals, the impairment charge and weaker-than-expected top-line performance weighed on sentiment.

Looking ahead, analysts project Q3 2025 revenue at $1.119 billion (a slight sequential improvement) and full-year 2025 revenue at $4.541 billion. However, the company did not provide explicit guidance in its press release, leaving investors to rely on external estimates.

Strategic Developments

• Puerto Rico Separation Plan: Liberty Latin America announced its intention to separate Liberty Puerto Rico from the broader business, potentially through a spin-off, to unlock shareholder value.
• Cost Efficiency Gains: The company highlighted strong margin expansion in key markets, with Liberty Caribbean’s Adjusted OIBDA margin improving by 480 basis points YoY to 47%.
• B2B Recovery Expected: Management anticipates stronger B2B performance in the second half of 2025, which could help offset earlier weakness.

Conclusion

Liberty Latin America’s Q2 results reflect ongoing challenges in revenue growth but demonstrate resilience in profitability through cost discipline. The market’s negative reaction underscores concerns about the company’s ability to meet growth expectations amid macroeconomic and competitive pressures.

For more detailed earnings estimates and historical performance, visit Liberty Latin America’s earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.