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Description of business We are a facilities-based provider of low-cost, high-speed Internet access, private network services, optical wavelength and optical transport services and data center colocation space and power. Our network is specifically designed and optimized to transmit packet-routed data.
The business is unprofitable at the operating level (-10.36% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue declined 5.8% YoY. The question is whether this is cyclical or a structural shift.
Negative free cash flow of -$198M. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$968M
▼ -5.8% YoY
Net Income (TTM)
-$170M
▲ +10.7% YoY
Op. Margin
-7.68%
▲ +8.7pp YoY
ROIC
-4.22%
▲ +3.2pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$208M
▲ +2.7% YoY
Op. Cash Flow (TTM)
-$32M
▼ -22.4% YoY
Net Debt
$806M
Cash & Equiv.
$140M
5Y CAGR: +11.4%
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