Lumen Technologies Reports Solid Second Quarter 2026 Results; Digital Transformation Accelerates
Lumen Technologies, Inc. (LUMN) filed an SEC Form 8-K — Results of Operations and Financial Condition. NEWS RELEASE Lumen Technologies Reports Solid Second Quarter 2026 Results; Digital Transformation Accelerates Company advances its enterprise disruption strategy and growth conviction; closes Alkira acquisition to unlock digital revenue opportunity DENVER, Aug 4, 2026 — Lumen Tec
How this was made
The 30-second read
Why it matters
The most tradable elements are the reported Q2 financial metrics (revenue, net loss, operating cash flow, free cash flow ex special items, adjusted EBITDA ex special items) and the stated progress metrics for NaaS adoption, alongside the completed Alkira deal.
Market read
A same-day primary disclosure of Q2 results with cash-flow improvement and a higher strategic revenue mix, plus a completed acquisition, can drive re-rating and near-term positioning.
What to watch
The filing reiterates full-year guidance but does not provide new quantitative guidance ranges beyond what is already stated; traders may need to compare these metrics versus Street expectations to gauge surprise.
Lumen Technologies Reports Solid Second Quarter 2026 Results; Digital Transformation Accelerates
Strategic revenue grew 14% year over year and free cash flow excluding Special Items improved to $327 million, but total revenue declined 9%, Mass Markets revenue declined 40%, and Adjusted EBITDA excluding Special Items declined to $802 million from $877 million.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total RevenueGAAP | $2.81B | (3)% | (9)% |
| Cost of Services and ProductsGAAP | $1.42B | – | – |
| Selling, General and Administrative ExpensesGAAP | $779M | – | – |
| Net Loss on Sale of BusinessGAAP | $31M | – | – |
| Stock-based Compensation ExpenseGAAP | $18M | – | – |
| Net LossGAAP | −$201M | – | – |
| Net Loss, Excluding Special Itemsnon-GAAP | −$73M | – | – |
| Adjusted EBITDAnon-GAAP | $598M | – | – |
| Adjusted EBITDA, Excluding Special Itemsnon-GAAP | $802M | – | – |
| Net Loss MarginGAAP | (7.2) % | – | – |
| Net Loss Margin, Excluding Special Itemsnon-GAAP | (2.6) % | – | – |
| Adjusted EBITDA Marginnon-GAAP | 21.3 % | – | – |
| Adjusted EBITDA Margin, Excluding Special Itemsnon-GAAP | 28.6 % | – | – |
| Net Cash Provided by Operating ActivitiesGAAP | $971M | – | – |
| Capital ExpendituresGAAP | $902M | – | – |
| Capital Expenditures, Excluding Special Itemsnon-GAAP | $780M | – | – |
| Unlevered Cash Flownon-GAAP | $157M | – | – |
| Unlevered Cash Flow, Excluding Special Itemsnon-GAAP | $415M | – | – |
| Free Cash Flownon-GAAP | $69M | – | – |
| Free Cash Flow, Excluding Special Itemsnon-GAAP | $327M | – | – |
| Net Loss per Common Share - DilutedGAAP | $(0.20) | – | – |
| Net Loss per Common Share - Diluted, Excluding Special Itemsnon-GAAP | $(0.07) | – | – |
| Weighted Average Shares Outstanding (in millions) - DilutedGAAP | 1.00B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Large EnterpriseRevenue by sales channel. | $794M | 2% | 4% |
| Mid-Market EnterpriseRevenue by sales channel. | $435M | (1)% | (8)% |
| Public SectorRevenue by sales channel. | $490M | (3)% | 1% |
| North America Enterprise ChannelsRevenue by sales channel. | $1.72B | —% | —% |
| WholesaleRevenue by sales channel. | $653M | 1% | (5)% |
| North America Business RevenueRevenue by sales channel. | $2.37B | —% | (2)% |
| International and OtherRevenue by sales channel. | $72M | (1)% | (10)% |
| Business RevenueRevenue by sales channel and product category. | $2.44B | —% | (2)% |
| Mass Markets RevenueRevenue by sales channel. | $361M | (21)% | (40)% |
| StrategicBusiness revenue by product category. Strategic revenue increased to approximately 53% of total business revenue, up from 51% in the first quarter. | $1.29B | 3% | 14% |
| LegacyBusiness revenue by product category. | $1.16B | (4)% | (15)% |
full-year 2026 outlook
- NoteAdjusted EBITDA excluding Special Items: $3.1 to $3.3 billion
- NoteFree Cash Flow excluding Special Items: $1.9 to $2.1 billion
- NoteNet Cash Interest: $650 to $750 million
- NoteCapital Expenditures excluding Special Items: $3.2 to $3.4 billion
- NoteCash Income Taxes (Refunded): ($350) to ($450) million
- NoteIncome tax expense: $45 to $200 million
- NoteTotal other expense, net: $1.1 to $1.3 billion
- NoteDepreciation and amortization expense: $2.6 to $2.8 billion
- NoteStock-based compensation expense: $60 to $80 million
What drove it
- Strategic revenue was $1,289 million, up 14% year over year and 3% quarter over quarter.
- Strategic revenue increased to approximately 53% of total business revenue, up from 51% in the first quarter.
- The company reported more than 3,000 NaaS customers, with quarter-over-quarter new customer adoption up 22%, active ports up 34%, and active services up 29%.
- Lumen closed the acquisition of Alkira, extending its digital capabilities for enterprise connectivity across clouds, sites, partners, and AI workloads.
- The company said it redeployed resources toward higher-growth, higher-margin digital opportunities through product-portfolio rationalization and simplification initiatives.
Concerns
- Total Revenue was $2.805 billion, down 9% year over year and 3% quarter over quarter.
- Mass Markets Revenue was $361 million, down 40% year over year and 21% quarter over quarter.
- Legacy revenue was $1,155 million, down 15% year over year and 4% quarter over quarter.
- Adjusted EBITDA excluding Special Items was $802 million, compared to $877 million in the second quarter 2025.
- Adjusted EBITDA Margin was 21.3 %, compared to 23.4 % in the second quarter 2025.
- The company reported a Net Loss of $(201) million and diluted loss per share of $(0.20).
What to watch
- Execution toward the reiterated full-year 2026 Adjusted EBITDA excluding Special Items outlook of $3.1 to $3.3 billion.
- Execution toward Free Cash Flow excluding Special Items outlook of $1.9 to $2.1 billion.
- Strategic revenue growth and the mix of Strategic revenue within total business revenue.
- The pace of Legacy and Mass Markets revenue declines.
- NaaS customer adoption, active ports, and active services.
- Capital expenditures excluding Special Items relative to the $3.2 to $3.4 billion full-year 2026 outlook.
Balance sheet and cash flow
- Net Cash Provided by Operating Activities was $971 million in the second quarter 2026, compared to $570 million in the second quarter 2025.
- Free Cash Flow, excluding Special Items, was $327 million in the second quarter 2026, compared to $(209) million in the second quarter 2025.
- As of Jun. 30, 2026, Lumen had cash and cash equivalents of $1.876 billion.
Analysis
Lumen reported $2.805 billion of total revenue for the second quarter 2026, compared with $3.092 billion in the second quarter 2025 and $2.899 billion in the first quarter 2026. The revenue result reflects sharply lower Mass Markets Revenue, which was $361 million and declined 40% year over year and 21% quarter over quarter. Business Revenue was $2,444 million, down 2% year over year and unchanged quarter over quarter.
The business mix continued to move toward the company’s Strategic category. Strategic revenue was $1,289 million, up 14% year over year and 3% quarter over quarter, while Legacy revenue was $1,155 million, down 15% year over year and 4% quarter over quarter. Strategic revenue reached approximately 53% of total business revenue, compared with 51% in the first quarter. Large Enterprise revenue increased 4% year over year, Public Sector increased 1%, while Mid-Market Enterprise, Wholesale, and International and Other each declined year over year.
Profitability remained pressured on a year-over-year basis despite improvement in reported losses. Net Loss was $(201) million compared with $(915) million, and Net Loss Margin was (7.2) % compared with (29.6) %. Adjusted EBITDA excluding Special Items was $802 million compared with $877 million, although its margin was 28.6 % compared with 28.4 %. The company also incurred $31 million of Net Loss on Sale of Business and reported $18 million of Stock-based Compensation Expense.
Cash generation improved materially. Net Cash Provided by Operating Activities was $971 million compared with $570 million, and Free Cash Flow excluding Special Items was $327 million compared with $(209) million. Capital Expenditures excluding Special Items were $780 million compared with $824 million. Lumen ended the period with $1.876 billion of cash and cash equivalents.
Management reiterated its full-year 2026 outlook, including Adjusted EBITDA excluding Special Items of $3.1 to $3.3 billion and Free Cash Flow excluding Special Items of $1.9 to $2.1 billion. The guide also calls for Capital Expenditures excluding Special Items of $3.2 to $3.4 billion. The operational focus is on digital networking, with more than 3,000 NaaS customers and reported quarter-over-quarter increases in new customer adoption, active ports, and active services, alongside the completed Alkira acquisition.
Management, verbatim
Lumen is putting innovation back where it belongs - inside the network itself. By embedding digital intelligence directly into the physical network layer, we’re delivering higher-impact business outcomes instead of competing on price alone. That’s a fundamentally different value proposition in enterprise networking, and a new chapter for Lumen customers and investors.
Kate Johnson, CEO
Our second quarter results reflect continued execution against our financial objectives and ongoing momentum in the business. Strategic revenue increased to 53% of total business revenue, up from 51% in the first quarter, as customers increasingly adopt our digital networking solutions.
Chris Stansbury, President and CFO
Not in the filing
stated, not guessed- GAAP gross profit
- GAAP gross margin
- GAAP operating income or loss
- GAAP operating margin
- Debt
- Share repurchases
- Dividends
- Prior-quarter Net Loss
- Prior-quarter Adjusted EBITDA
- Prior-quarter operating cash flow
- Prior-quarter free cash flow
- Revenue guidance
- Gross margin guidance
- Operating expenses guidance
- Tax rate guidance
- Previous-release outlook for comparison with reported results
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This SEC 8-K includes Lumen’s Q2 2026 results and a release highlighting its transformation strategy, strategic revenue mix shift, and the completion of its Alkira acquisition.
Ticker impact
Lumen reported Q2 2026 results with revenues of $2.805B, Free Cash Flow excluding special items of $327M, and reiterated full-year outlook.
Near-term bias modestly positive if investors focus on cash flow and strategic revenue mix, but revenue contraction may cap upside.
The filing provides multiple concrete datapoints (FCF ex special items, strategic revenue mix, NaaS customer/usage growth) plus a completed acquisition, which can re-rate expectations. However, total revenue fell YoY and Adjusted EBITDA ex special items declined, limiting the magnitude of the positive read-through.
Market effects
Enterprise networking and digital transformation narratives may get incremental support from Lumen’s NaaS traction and cash-flow improvement.
Limited direct regional spillover; primarily affects US telecom-equipment and enterprise services sentiment.
Minor global relevance, but the AI-driven multi-cloud enterprise framing could influence broader enterprise networking expectations.
Counterpoint
Investors may discount the cash-flow improvement as partly driven by special-item adjustments and focus on the YoY revenue decline and margin pressure signals.
Key entities
- companyLumen Technologies, Inc.
Reported Q2 2026 results, highlighted strategic revenue mix improvement, NaaS customer growth, closed the Alkira acquisition, and reiterated full-year outlook.
- acquisition_targetAlkira
Acquisition closed during the quarter, intended to extend Lumen’s digital capabilities for connecting clouds, sites, partners, and AI workloads.
- executiveKate Johnson
CEO quoted on embedding digital intelligence into the network layer.
- executiveChris Stansbury
President and CFO quoted on strategic revenue mix and execution against financial objectives.
