Frontier Communications 2025 Q2 Earnings Misses Targets as Net Loss Remains Unchanged

Frontier Communications (FYBR) reported its fiscal 2025 Q2 earnings on July 29th, 2025. The company posted a net loss of $123 million, consistent with the previous year's Q2, and maintained an EPS of -$0.49, missing the Zacks Consensus Estimate of -$0.31. Frontier's revenue reached $1.54 billion, exceeding expectations by 1.33%. However, the company decided not to provide financial guidance due to the pending acquisition by Verizon, which is expected to close by the first quarter of 2026.

Revenue

Frontier Communications reported a 4.0% increase in total revenue, reaching $1.54 billion in Q2 2025, compared to $1.48 billion in Q2 2024. The Data and Internet services segment generated $1.08 billion, while Voice services contributed $282 million. Video services brought in $68 million, and the Other segment accounted for $87 million. Subsidy and other revenue added $17 million to the total.

Earnings/Net Income

Frontier Communications maintained an EPS of -$0.49 in Q2 2025, the same as the previous year, with a net loss holding steady at $123 million. Overall, the EPS performance was disappointing.

Post-Earnings Price Action Review

The strategy of buying Frontier Communications shares on the earnings release date and holding them for 30 days has yielded a 6.48% return over the past three years. However, this performance falls short when compared to the benchmark's 39.25% return, resulting in an excess loss of 32.76%. This indicates significant underperformance relative to broader market trends. Additionally, the strategy experienced a maximum drawdown of 29.63%, highlighting considerable volatility and risk. This suggests that while there might be occasional gains, the strategy carries substantial risk, and the returns have not been sufficient to justify the volatility. Investors should carefully consider the inherent risks and compare them to potential returns before choosing such a strategy.

CEO Commentary

"Q2 was a breakout quarter for the builders of Gigabit America – we delivered record fiber sales while growing ARPU and achieved our highest quarterly revenue and EBITDA since we emerged from bankruptcy four years ago," said Nick Jeffery, President and Chief Executive Officer of Frontier. Jeffery emphasized that the company’s strategy centers on the belief that every new fiber customer strengthens their business, resulting in outsized market share relative to their footprint. He expressed gratitude to the team for their efforts in connecting more homes to high-speed fiber internet and earning customer loyalty.

Guidance

In light of the pending acquisition by Verizon, Frontier will not be providing a financial outlook or hosting a conference call. The transaction is anticipated to close by the first quarter of 2026, pending necessary regulatory approvals and the fulfillment of other conditions outlined in the merger agreement.

Additional News

Frontier Communications is in the midst of a significant transition with the pending acquisition by Verizon Communications Inc., expected to conclude by the first quarter of 2026, subject to regulatory approval. This strategic move is set to reshape the telecommunications landscape, positioning Frontier under Verizon's expansive umbrella. Recently, Frontier was recognized as one of America's Most Innovative Companies by Fortune, emphasizing its transformative role in the fiber internet industry. Under the leadership of CEO Nick Jeffery, the company has achieved remarkable technological advancements, including the introduction of high-speed gigabit services. Additionally, Frontier congratulated FCC Commissioner Brendan Carr on his appointment as Chairman, acknowledging his support for broadband expansion, which aligns with Frontier’s mission to enhance connectivity across the nation.