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LICT Corporation Reports Third Quarter 2025 Results
LICT Corporation Reports Third Quarter 2025 Results.
About this update from Lict Corp.
LICT Corporation Reports Third Quarter 2025 Results LICT Corporation Reports Third Quarter 2025 Results Non-regulated revenue climbed 12% to $21.2 million, from $18.9 million in the prior-year quarter, with overall revenues rising to $36.1 million from $33.7 million in the third quarter of 2024. EBITDA increased 11%, to $15.2 million from $13.7 million in the third quarter of 2024. Third Quarter earnings per share (EPS) totaled $233 per share, versus $228 per share in the third quarter of 2024. Fourth Quarter 2025 EPS are expected to be approximately $240, compared with adjusted EPS of $131 in the fourth quarter of 2024. Net Debt is 1.2x trailing 12-month EBITDA. The Company continues to benefit from accelerated depreciation provisions under federal tax law that went into effect in July 2025. Approved Designated Charitable Contributions to Registered Shareholders. RYE, N.Y.--(BUSINESS WIRE)-- LICT Corporation (“LICT” or the “Company”; OTC Pink®: LICT), an integrated provider of broadband and voice services, today announces its financial results for the quarter ended September 30, 2025. Shareholder Designated Charitable Contribution Program (Update) As previously announced in our November 19, 2025, press release, LICT’s Board of Directors approved the Shareholder Designated Charitable Contribution Program with a contribution of $100 per share for registered shareholders. Shareholders will have until December 15, 2025, to register shares in their own name to participate in the program. Since the program’s inception in 2016, LICT has contributed over $10 million to shareholder-designated charities. Results from Operations Third Quarter 2025 Revenues Total revenues were $36.1 million in the third quarter of 2025 compared with $33.7 million in the third quarter of 2024. Non-regulated revenues rose to $21.2 million, compared with $18.9 million in the third quarter of 2024. Regulated revenues were $14.9 million in the third quarter of 2025, versus $14.8 million in the third quarter of 2024. Third quarter of 2025 results also include regulated revenues from Manti Telephone Company (MTC), which was acquired on January 1, 2025; MTC contributed $0.9 million in regulated revenue this quarter. EBITDA EBITDA for the third quarter of 2025 increased $1.5 million, or 11%, to $15.2 million, compared to $13.7 million for the same period in 2024. The improvement was driven by higher revenues within our non-regulated operations, partially offset by higher operating expenses. We expect EBITDA margins to benefit as more projects move from planning to execution. Non-regulated EBITDA for the third quarter of 2025 increased $2.7 million, or 40%, to $9.4 million, compared with $6.7 million in the third quarter of 2024, reflecting $1.7 million of construction revenue recognized on a fiber-build project at one of our subsidiaries for a middle mile provider. Regulated EBITDA for the third quarter of 2025 was $5.9 million, compared to $7.0 million in the same period of 2024, reflecting a decrease of $1.1 million, or 15.7%. The decline was primarily driven by lower regulated revenues due to mandated pricing adjustments and higher operating expenses. Net Income and Earnings per Share Net income for the third quarter of 2025 was $3.6 million, or $233 per share, compared to $3.8 million, or $228 per share, for the same period in 2024. The $0.2 million, or 5.3%, year-over-year decrease in net income was primarily driven by higher depreciation expense, as well as higher operating and non-operating expenses. Total costs and expenses increased by $2.8 million, largely due to a $0.8 million rise in cost of revenue, which reflected expanded staffing, increased use of professional services, and higher repair and maintenance activity, particularly in the Company’s New Mexico and Utah operations. Nine months ended September 30, 2025 Revenues Total revenues were $105.1 million for the nine months ended September 30, 2025, an increase of 4.2%, compared with $100.9 million for the nine months ended September 30, 2024. Non-regulated revenues were $59.7 million for the nine months ended September 30, 2025 compared with $56.1 million for the nine months ended September 30, 2024, an increase of $3.6 million, or 6.4%, driven primarily by the revenue recognized on the fiber-build project at one of our subsidiaries. Regulated revenues were $45.4 million for the nine months ended September 30, 2025, compared with $44.7 million for the nine months ended September 30, 2024, an increase of $0.7 million, or 2%. First nine months 2025 results also include regulated revenues of $2.6 million from MTC, which was acquired on January 1, 2025. This was offset by reductions in voice service revenues consistent with broader industry trends. Additionally, interstate access revenues declined traceable to lower cost broadband services. EBITDA EBITDA for the nine months ended September 30, 2025, was $42.5 million, unchanged from the prior-year period, as revenue growth was offset by higher operating costs—particularly personnel-related and professional services expenses tied to operational expansion. Non-regulated EBITDA for the first nine months of 2025 was $23.8 million, compared to $21.0 million in the first nine months of 2024. Regulated EBITDA for the first nine months of 2025 was $18.7 million, compared to $21.5 million in the same period of 2024, reflecting a decrease of $2.8 million, or 13.0%. The decline was primarily driven by increased operating costs, including higher expenses for expanded staffing and professional services related to our operational expansion, as well as elevated repair and maintenance activity in the Company’s New Mexico and Utah operations. The following table is a reconciliation of EBITDA (from operations): Three Months Ended September 30,   Nine Months Ended September 30, (in thousands)   2025   2024   2025   2024 Operating profit from operations   $ 6,734   $ 7,066   $ 17,930   $ 21,693 Adjustments:                         Corporate expenses   1,487   1,040   4,339   3,478 Depreciation and amortization     6,993     5,562     20,238     17,369 Total adjustments     8,480     6,602     24,577     20,847 EBITDA (from operations)   $ 15,214   $ 13,668   $ 42,507   $ 42,540 Net Income and Earnings per Share Net income for the nine months ended September 30, 2025 was $10.9 million, or $687 per share, compared to $13.6 million, or $813 per share, for the same period in 2024. The $2.7 million, or 19.9%, decrease in net income was primarily driven by a $7.9 million increase in total costs and expenses. This increase was largely due to a $3.0 million rise in cost of revenue—reflecting expanded staffing, professional services, and increased repair and maintenance activity in the Company’s New Mexico and Utah operations—as well as a $2.9 million increase in depreciation and amortization expense associated with recent infrastructure investments. These higher operating and non-cash expenses were partially offset by a $4.2 million increase in revenue, driven by continued growth in broadband services in Utah and Kansas and by fiber-build construction revenue at one of our subsidiaries. 2025 Outlook – Estimated revenue for fiscal year 2025 is expected to be approximately $142 million, with EBITDA from operations of $58 million. Capital expenditures, net of grant receipts, for the year are anticipated to total $55 million. Fourth-quarter 2025 earnings per share (EPS) are expected to be approximately $240, compared with adjusted EPS of $131 in the fourth quarter of 2024. Full-year 2025 EPS is estimated to be approximately $930, versus adjusted EPS of $941 for full-year 2024. Government Programs & Funding Update: Rural Broadband Expansion Accelerates LICT continues to benefit from federal and state regulatory support for rural broadband deployment. The U.S. Supreme Court decision in June 2025 reaffirmed the constitutionality of the Universal Service Fund (“USF”). Preliminary announcements of the Broadband Equity, Access, and Deployment (“BEAD”) program awards, combined with ReConnect grant awards are creating new opportunities for LICT to expand high-quality, cost-effective service across our footprint. Federal Tax Reform - The Company continues to benefit from accelerated depreciation provisions under federal tax law. Under prior law, bonus depreciation was scheduled to phase down from 100% in 2023 to 80% in 2024 and 60% in 2025, which was expected to increase future cash tax obligations. In July 2025, federal tax reform legislation reinstated 100% bonus depreciation for qualified property placed in service after January 19, 2025. This change is expected to reduce near-term cash tax payments and improve after-tax returns on capital expenditures, particularly broadband infrastructure investments through 2028. Management is continuing to evaluate the full impact of the new law; however, based on preliminary assessments, the Company currently estimates that these provisions will result in approximately $25 million of cumulative cash tax savings through 2028. Universal Service Fund Enhanced Alternative Connect America Cost Model ("E-ACAM") Program LICT elected to participate in the FCC E-ACAM program effective January 1, 2024, which accelerates broadband deployment and improves speeds in rural portions of the United States and provides LICT $37.2 million annually through 2038, subject to a one-time FCC true-up by December 31, 2025. E-ACAM directly supports our long-term capital plans and commitment to deliver at least 100/20 Mbps service in our RLEC territory. The plan calls for completion of 50% of E-ACAM locations to be built out by December 31, 2026, 75% by December 31, 2027 and 100% by December 31, 2028. A reactivated Congressional bipartisan USF Working Group is also driving efforts to modernize the contribution system and broaden the USF funding base—efforts we support through our active participation in USTelecom and WTA - Advocates for Rural Broadband (formerly known as Western Telecommunications Alliance). Government Grants and Capital Expenditures Broadband Equity, Access, and Deployment ("BEAD") Program LICT was preliminarily awarded BEAD “Benefit of the Bargain” round grants in Kansas, Utah and Iowa, subject to final approvals by the National Telecommunications and Information Administration ("NTIA"). These grant awards would provide funding for high-speed service via both fiber and fixed wireless. Reconnect III and Reconnect IV As previously announced, LICT was awarded $157.5 million for seven United States Department of Agriculture ("USDA") ReConnect III and ReConnect IV grants in Kansas, California and New Mexico with a total project cost of $171.2 million, of which LICT’s share costs approximately $13.7 million. These Fiber-to-the-Home (“FTTH”) ReConnect grants will facilitate one Gig of broadband speed. Environmental clearance has been authorized on all seven grant projects. These FTTH projects are in various stages of construction with customers being actively connected in our Kansas and New Mexico operations. The combination of ReConnect and BEAD grants combined with the EACAM USF platform enhances LICT’s ability to expand affordable, high-speed broadband to our customers and the communities we serve. Strategic Initiatives The Company continues to implement strategic measures aimed at lowering the cost structure of its capital investment programs. By leveraging fixed wireless solutions and alternative access technologies, the Company is focused on achieving more capital-efficient network deployments while maintaining service quality and coverage targets. FIXED WIRELESS/5G — Under the leadership of Dylan Larmore, Sound Broadband LLC, the wireless subsidiary of LICT Corporation, is expanding its fixed wireless footprint through strategic deployments and spectrum optimization. The company has completed multiple successful fixed wireless deployments across existing markets and is expanding into new regions, including New Mexico, California, Kansas, and Utah. These projects are still evolving and developing. By strengthening and strategically managing LICT's spectrum holdings, Sound Broadband is creating long-term value for LICT while driving down deployment costs and maximizing performance across its networks. The company remains firmly committed to bridging the digital divide and delivering next-generation connectivity across underserved communities and diverse industry sectors—both within its current operations and beyond its historical territories. Operating Statistics / Broadband Deployment LICT owns and operates 7,604 miles of fiber optic cable (up 736 miles, or 11%, from 6,868 at December 31, 2024), 8,940 miles of copper cable, 847 miles of coaxial cable, 103 towers and 301 spectrum licenses (1,216 million MHZPoP). The table below provides a comparative summary of the Company’s subscriber and line metrics as of September 30, 2025, versus December 31, 2024.     September   December   Increase   % Increase   30, 2025   31, 2024   (Decrease)   (Decrease) Broadband lines 43,263 42,148 1,115   2.6% Fixed Wireless subscribers   7,296   7,349   (53)   (0.7)% Voice lines                 ILEC   16,555   15,871   684 A 4.3% Out of franchise   5,321   6,113   (792)   (13.0)% Total Voice lines   21,876   21,984   (108)   (0.5)% Video subscribers   3,272   3,467   (195)   (5.6)% Total revenue generating units   75,707   74,948   759   1.0% Note: ILEC Voice lines increased due to the MTC acquisition.   Liquidity and Balance Sheet Highlights Liquidity As of September 30, 2025, the Company had $50.4 million outstanding under its $100 million facility, with an average interest rate of 6.4%. The Company’s net debt totaled $68.1 million as of September 30, 2025, compared to $57.1 million as of December 31, 2024. The Company’s debt leverage ratio, calculated as net debt divided by trailing 12-month EBITDA after Corporate Expenses, was 1.2x as of September 30, 2025. Including the impact of $6.7 million in grants receivable as an adjustment to net debt, the leverage ratio would have been 1.1x for the same period. The Company maintains sufficient liquidity under its $100 million credit facility, allowing it to balance strategic investments, acquisitions, and return of capital to shareholders. Capital Expenditures In the third quarter of 2025, capital expenditures were $18.3 million, compared to $15.4 million in the prior-year period. For the nine months ended September 30, 2025, capital expenditures were $51.4 million, compared with $43.5 million in the prior year period. Third quarter investments were focused on the continued build-out of E-ACAM broadband infrastructure and early-stage activities associated with ReConnect III and IV programs. For the nine months ended September 30, 2025, the Company received $17.5 million in grant proceeds. The Company also continued to deploy capital toward fixed wireless network expansion through its Sound Broadband subsidiary. These investments remain essential to meeting the Company’s regulatory obligations and advancing the availability of high-speed broadband services across LICT’s rural service areas. Other Assets & Investments In addition to its core operations, the Company owns various complementary assets and investments, including spectrum licenses and minority interests in other entities. Management currently estimates that these assets collectively have a value in excess of $50 million. Shareholder Return For the three months ended September 30, 2025, the Company repurchased 188 shares of its common stock for a total of $2.2 million, bringing year to date repurchases to $8.3 million. On July 1, 2025, the Company's Board of Directors authorized the repurchase of an additional 250 shares, reflecting the Company’s continued commitment to disciplined capital allocation and enhancing long-term shareholder value. As of September 30, 2025, LICT had 15,544 shares outstanding. About LICT Corporation LICT Corporation (OTC Pink®: LICT) is a holding company with subsidiaries in broadband and other telecommunications services that actively seeks acquisitions, principally in its existing business. LICT has operations in California, Kansas, Iowa, New Mexico, Oregon, Utah, and Wisconsin. Additionally, the company also holds investments in wireless spectrum, MachTen Inc., Aureon Network Services, CVIN LLC, and the Kansas Fiber Network. Cautionary Note Concerning Forward Looking Statements This release contains certain forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including without limitation anticipated financial results, financing, capital expenditures and corporate transactions. It should be recognized that such information is based upon certain assumptions, projections and forecasts, including without limitation, business conditions and financial markets, regulatory and other approvals, and the cautionary statements set forth in documents filed by LICT on its website, www.lictcorp.com . As a result, there can be no assurance that any possible transactions will be accomplished or be successful, or that financial targets will be met. Such forward-looking information is subject to uncertainties, risks and inaccuracies, which could be material. LICT Corporation Statements of Operations (Unaudited) Three Months Ended September 30,   Nine Months Ended September 30, (in thousands, except share data)   2025   2024   2025   2024   Revenues     $   36,108         $   33,687         $   105,095         $   100,870     Cost and expenses:                                 Cost of revenue, excluding depreciation and amort.   17,741     17,318     53,202     50,153   General and administrative costs at operations     3,153       2,701       9,386       8,177   Corporate office expenses     1,487       1,040       4,339       3,478   Depreciation and amortization     6,993       5,562       20,238       17,369   Total costs and expenses     29,374       26,621       87,165       79,177   Operating profit     6,734       7,066       17,930       21,693   Other income (expense)                                 Investment income   48     265     890     1,473   Interest expense     (1,349 )     (1,177 )     (3,744 )     (3,243 ) Unrealized gain/(loss) on investment     (454 )     (151 )     (30 )     (788 ) Equity in earnings of affiliated companies     —       —       (66 )     225   Other     (44 )     (863 )     (141 )     (828 ) Total other income (expense)     (1,799 )     (1,926 )     (3,091 )     (3,161 )   Income from operations before income taxes 4,935 5,140 14,839 18,532 Provision for income taxes     (1,301 )     (1,357 )     (3,939 )     (4,898 ) Net income   $ 3,634     $ 3,783     $ 10,900     $ 13,634   Basic and Diluted Weighted-Average Shares 15,625 16,624 15,873 16,780   Earnings Per Share $ 233 $ 228 $ 687 $ 813   Actual shares outstanding at end of period     15,544       16,540       15,544       16,540     Highlights:                   Capital expenditures   $ 18,277     $ 15,375     $ 51,385     $ 43,490   Government grants received   $ 4,162     $ —     $ 17,467     $ — LICT Corporation Balance Sheet (Unaudited)   (in thousands)   September 30, 2025   December 31, 2024 Assets:         Current assets:         Cash and cash equivalents   $ 10,334   $ 9,546 Restricted cash     1,798     1,835 Accounts receivable, less allowances of $253 and $190, respectively     7,328     7,834 Grants receivable     6,711     12,759 Materials and supplies     12,287     12,581 Prepaid expenses and other current assets     4,002     4,681 Total current assets     42,460     49,236 Property, plant, and equipment, net     205,129     179,910 Goodwill     48,497     48,251 Other intangibles     34,243     34,100 Investments in affiliated companies     5,839     6,723 Other assets     10,912     10,836 Total assets   $ 347,080   $ 329,056       Liabilities:         Current liabilities:         Accounts payable   $ 10,066   $ 8,908 Accrued interest payable     399     105 Accrued liabilities     10,246     9,227 Current maturities of long-term debt     7,727     80 Total current liabilities     28,438     18,320 Long-term debt     70,726     66,556 Deferred income taxes     31,905     31,289 Other liabilities     9,774     9,301 Total liabilities     140,843     125,466           Total shareholders’ equity     206,237     203,590 Total liabilities and shareholders’ equity   $ 347,080   $ 329,056   https://cts.businesswire.com/ct/CT?id=bwnews&sty=20251209270349r1&sid=acqr8&distro=nx&lang=en View source version on businesswire.com: https://www.businesswire.com/news/home/20251209270349/en/ Joe Cecin Chief Operating Officer (914) 921-8821 Stephen J. Moore Vice President - Finance (914) 305-3312 Source: LICT Corporation © Copyright Business Wire 2025