LUMN Lumen Technologies, Inc.

Overview and Growth

Lumen Technologies, Inc. generated $12.40B of revenue in fiscal 2025, with net loss of $1.74B and an operating cash inflow of $4.74B. At $12.40B, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. Compared with $13.11B in fiscal 2024, revenue decreased 5.4%, a top-line contraction that reduced operating scale. Diluted earnings per share were -$1.75, translating the period’s attributable earnings into the amount reported for each diluted share. Total assets stood at $34.34B, showing the scale of resources supporting revenue, earnings, liquidity, and financing. Asset turnover was 0.36x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

The first profit layer was $5.76B of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. Gross margin was 46.5%, so that share of each revenue unit remained after the cost of revenue reported for the period. The reported operating result was an operating loss of $812.00M, reflecting costs that exceeded gross profit. Relative to revenue, the operating deficit measured 6.5%, showing the shortfall after operating costs. The company ended the period with a net loss of $1.74B, extending the operating result through all remaining items. Measured against revenue, the bottom-line deficit represented 14.0% after all recognized items. Before income taxes, the company recorded a loss of $2.72B, bridging the operating result to the final net loss. Pretax margin was -21.9%, reflecting a pre-tax loss equal to 21.9% of revenue. The company recognized an income-tax benefit of $977.00M, increasing after-tax earnings relative to the pretax result. Relative to total assets, the net loss represented 5.1%. Compared with a $55.00M net loss in fiscal 2024, the current loss increased to $1.74B.

Liquidity and Capital Structure

Total assets were $34.34B, supported by $35.46B of liabilities and -$1.12B of shareholder equity. With total equity at -$1.12B, the company carried a negative book-capital position, increasing its reliance on liabilities and future earnings. The near-term balance sheet paired $7.91B of current assets with $4.39B of current liabilities at the reporting date. The current ratio was 1.8x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. Cash and equivalents totaled $1.00B, identifying the most liquid reported component available within the broader current-asset balance. The cash balance equaled 22.8% of current liabilities, showing how much near-term coverage came from cash alone. Liabilities represented 103.3% of total assets, quantifying the liability-funded share of the company’s resource base. Measured against total assets, cash and equivalents represented 2.9%, a balance-sheet composition measure rather than a liquidity forecast. The asset base changed 2.5% from $33.50B in fiscal 2024, leaving current total assets higher year over year. Against $464.00M of equity in fiscal 2024, the current book-equity balance moved 340.7% and ended lower. The reported cash balance changed 46.9% from $1.89B in fiscal 2024, ending lower year over year.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $4.74B, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. Capital spending was $4.37B, absorbing part of the cash generated from operations before free cash flow. Relative to operating cash flow, capital expenditures measured 92.2%, connecting investment intensity with the company’s cash-generation base. After capital spending, free cash flow was $371.00M, leaving cash available for debt reduction, shareholder returns, or further investment. Relative to revenue, free cash flow equaled 3.0%, showing how much sales converted into cash after investment. The free-cash-flow-to-assets relationship was 1.1%, comparing post-investment cash with the balance-sheet asset base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.