Q2 FY2026
Filed Aug 5, 2026Filed under $LILALiberty Latin America Reports Q2 2026 Results
Reported revenue increased 1%, Adjusted OIBDA increased 5%, operating income improved to $181 million, and Adjusted FCF improved to $58 million. Performance remained uneven across segments, with Hurricane Melissa affecting Liberty Caribbean and revenue declining at Liberty Puerto Rico.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $ 1,103 | – | 1 % |
| RevenueGAAP | $ 2,185 | – | 1 % |
| Operating income (loss)GAAP | $ 181 | – | 154 % |
| Operating income (loss)GAAP | $ 326 | – | 259 % |
| Adjusted OIBDAnon-GAAP | $ 436 | – | 5 % |
| Adjusted OIBDAnon-GAAP | $ 841 | – | 2 % |
| Property & equipment additionsother | $ 179 | – | 19 % |
| Property & equipment additionsother | $ 289 | – | 7 % |
| Property & equipment additions as a percentage of revenueother | 16 % | – | – |
| Property & equipment additions as a percentage of revenueother | 13 % | – | – |
| Adjusted FCF before distributions to noncontrolling interest ownersnon-GAAP | $ 83 | – | – |
| Adjusted FCF before distributions to noncontrolling interest ownersnon-GAAP | $ 19 | – | – |
| Distributions to noncontrolling interest ownersother | (25) | – | – |
| Distributions to noncontrolling interest ownersother | (25) | – | – |
| Adjusted FCFnon-GAAP | $ 58 | – | – |
| Adjusted FCFnon-GAAP | $ (6) | – | – |
| Cash provided by operating activitiesGAAP | $ 217 | – | – |
| Cash provided by operating activitiesGAAP | $ 259 | – | – |
| Cash used by investing activitiesGAAP | $ (128) | – | – |
| Cash used by investing activitiesGAAP | $ (236) | – | – |
| Cash used by financing activitiesGAAP | $ (35) | – | – |
| Cash used by financing activitiesGAAP | $ (74) | – | – |
| Operating income (loss) marginGAAP | 16.4 % | – | – |
| Operating income (loss) marginGAAP | 14.9 % | – | – |
| Adjusted OIBDA marginnon-GAAP | 39.5 % | – | – |
| Adjusted OIBDA marginnon-GAAP | 38.5 % | – | – |
| Total customersother | 1,839,200 | – | – |
| Organic customer additions (losses)other | 7,600 | – | – |
| Fixed RGUsother | 3,883,500 | – | – |
| Organic RGU additionsother | 35,000 | – | – |
| Organic internet additionsother | 12,100 | – | – |
| Mobile subscribersother | 6,759,800 | – | – |
| Organic mobile additions (losses)other | (49,300) | – | – |
| Organic postpaid additionsother | 33,100 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Liberty CaribbeanHurricane Melissa negatively impacted revenue by $6 million on a net basis; residential mobile subscription revenue grew 8%, while residential fixed revenue declined by 8% on a rebased basis. | $ 361.7 | – | (1) |
| C&W PanamaTotal residential revenue grew 1%, while B2B revenue was down 3% due to a decline in rates related to data services provided to government-related agencies. | 176.9 | – | — |
| Liberty NetworksGrowth was driven by the El Salvador project and lease capacity sales in Wholesale; Enterprise registered low single-digit growth. | 130.4 | – | 14 |
| Liberty Puerto RicoRevenue was affected by pressure on mobile from a lower prepaid subscriber base following the Boost migration, lower roaming revenue, and lower residential fixed pricing. | 287.5 | – | (5) |
| Liberty Costa RicaResidential mobile revenue was up 6% on a rebased basis, offset by residential fixed-business revenue that fell 11% on a rebased basis. | 168.5 | – | 11 |
| CorporateCorporate operations revenue declined. | 3.6 | – | (5) |
| EliminationsEliminations. | (26.0) | – | N.M. |
Capital returns
- Distributed $500 million of preferred stock in the second quarter.
- The quarterly cash dividend on the 9.0% Series A Cumulative Redeemable Preferred Stock will be $0.5625 per share, payable in cash on September 15, 2026 to stockholders of record at the close of business on September 1, 2026.
- Through 2026 to date the buyback is running at over $60 million.
What drove it
- Organic RGU additions were 35,000, including 12,100 organic internet additions.
- Organic postpaid additions were 33,100.
- Liberty Networks revenue increased by 14% on a reported basis, supported by the El Salvador project and lease capacity sales.
- Liberty Puerto Rico Adjusted OIBDA increased by 7%, reflecting favorable comparisons on inventory charges, programming costs, and bad debt expenses.
- Liberty Costa Rica Adjusted OIBDA increased by 18% on a reported basis, benefiting from cost-saving initiatives including reductions in call center expenses and sales commissions.
- LLA announced a 10-year strategic agreement with Amdocs that is expected to deliver in excess of $250 million in NPV to LLA.
Concerns
- Hurricane Melissa negatively impacted Liberty Caribbean revenue by $6 million on a net basis and Adjusted OIBDA by $6 million on a net basis in the second quarter.
- Liberty Caribbean revenue decreased 1% on a reported basis and Adjusted OIBDA fell by 5% on a reported basis.
- C&W Panama Adjusted OIBDA fell by 5%, reflecting higher professional services and commercial costs.
- Liberty Puerto Rico revenue was down 5%, affected by a lower prepaid subscriber base following the Boost migration, lower roaming revenue, and lower residential fixed pricing.
- Organic mobile additions (losses) were (49,300).
What to watch
- The pace of recovery in Jamaica and the continuing impact of Hurricane Melissa on Liberty Caribbean.
- Broadband additions at C&W Panama, which reported accelerating broadband additions on higher gross adds and lower churn.
- The durability of Liberty Puerto Rico postpaid additions and the trend in residential fixed pricing.
- Cost-saving initiatives at Liberty Costa Rica and the planned Amdocs agreement's intended support for Adjusted OIBDA margin expansion and capital efficiency.
- Further preferred dividends and opportunistic share repurchases.
Balance sheet and cash flow
- Cash provided by operating activities was $ 217 for Q2 2026, compared with $ 141 for Q2 2025.
- Cash used by investing activities was $ (128) for Q2 2026, compared with $ (152) for Q2 2025.
- Cash used by financing activities was $ (35) for Q2 2026, compared with $ (36) for Q2 2025.
- Adjusted FCF was $ 58 for Q2 2026, compared with $ (41) for Q2 2025.
- Adjusted FCF was $ (6) for YTD 2026, compared with $ (174) for YTD 2025.
Analysis
Liberty Latin America reported Q2 2026 revenue of $ 1,103, up 1% from $ 1,087, while Adjusted OIBDA increased 5% to $ 436. Rebased revenue was flat and rebased Adjusted OIBDA increased 3%. Operating income was $ 181, compared with an operating loss of $ (333), with the improvement primarily attributed to lower impairment, restructuring and other operating items, as well as higher Adjusted OIBDA. Adjusted OIBDA margin was 39.5 %, compared with 38.2 %.
Subscriber trends showed improved fixed momentum. Organic RGU additions were 35,000, compared with 11,900 in Q1 2026, and organic internet additions were 12,100, compared with 1,800. Organic postpaid additions were 33,100, although organic mobile additions (losses) were (49,300), compared with 15,100 in Q1 2026. Management cited recovery in Jamaica, accelerating broadband additions in Panama, and continued momentum in Puerto Rico postpaid volumes.
Segment results remained uneven. Liberty Networks revenue rose 14% and Adjusted OIBDA rose 10%, supported by the El Salvador project and lease capacity sales. Liberty Costa Rica revenue rose 11% and Adjusted OIBDA increased 18%, with cost-saving initiatives contributing. Liberty Puerto Rico revenue declined 5%, but Adjusted OIBDA increased 7%. Liberty Caribbean revenue declined 1% and Adjusted OIBDA declined 5%, while C&W Panama Adjusted OIBDA declined 5%. Hurricane Melissa had a $6 million net impact on both Liberty Caribbean revenue and Adjusted OIBDA in the second quarter.
Cash generation improved materially in the reported comparisons. Cash provided by operating activities was $ 217 versus $ 141, while Adjusted FCF was $ 58 versus $ (41). Property & equipment additions were $ 179, or 16 % of revenue, compared with $ 150, or 14 % of revenue. The company also distributed $500 million of preferred stock, declared a $0.5625 preferred quarterly cash dividend, and stated that its buyback was running at over $60 million through 2026 to date.
The filing did not provide formal forward financial guidance in the supplied text. Management announced a 10-year strategic agreement with Amdocs expected to deliver in excess of $250 million in NPV to LLA and said the arrangement supports efforts to improve the cost base, drive Adjusted OIBDA margin expansion, and improve capital efficiency. The key operating issues are Hurricane Melissa recovery, Puerto Rico mobile and fixed-revenue trends, Panama cost pressures, and execution of the announced cost initiatives.
Management, verbatim
The second quarter represented another strong quarter of postpaid mobile additions as well as highlighting better momentum in broadband. The broadband momentum includes our recovery in Jamaica and stronger net additions elsewhere in the group.
Balan Nair, President and CEO
Adjusted OIBDA returned to YoY growth in the second quarter, while still being impacted by headwinds from Hurricane Melissa. Adjusted FCF showed a healthy advance of over $160 million YoY in the first half of 2026.
Balan Nair, President and CEO
Reflecting this constructive outlook for the business and our conviction on value in the LLA equity, we accelerated share repurchases into the third quarter. Through 2026 to date the buyback is running at over $60 million and we will remain opportunistic on further purchases.
Balan Nair, President and CEO
Not in the filing
stated, not guessed- GAAP net income or loss
- GAAP diluted EPS
- Non-GAAP EPS
- Gross margin
- Operating expenses
- Cash balance
- Debt balance
- Net debt
- Formal forward revenue guidance
- Formal forward Adjusted OIBDA guidance
- Formal forward capital expenditure or property and equipment additions guidance
- Formal forward free cash flow guidance
- Prior outlook for guidance comparison
- Full capital expenditure discussion and tables, as the supplied filing text ends at the beginning of that section
AlphaAI 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.