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Item 2. Management’s Discussion and Analysis

2026-08-06 compared with 2026-05-07 · 85 added, 69 removed, 161 unchanged (49% of the section changed)

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Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2025 .

These forward-looking statements and such risks, uncertainties and other factors speak

only as of the date of this Quarterly Report, and we expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein, to reflect any change in our expectations with regard thereto, or any other change in events, conditions or circumstances on which any such statement is based.

These forward-looking statements and such risks, uncertainties and other factors speak only as of the date of this Quarterly Report, and we expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein, to reflect any change in our expectations with regard thereto, or any other change in events, conditions or circumstances on which any such statement is based.

The following discussion and analysis provides information concerning our results of operations and financial condition.

This discussion should be read in conjunction with our accompanying condensed consolidated financial statements and the notes thereto and our Annual Report on Form 10-K for the year ended December 31, 2025 .

GCI Liberty, Inc.

(“GCI Liberty”) consists of 100% of the outstanding equity interests in GCI, LLC, GCI Holdings, LLC (“GCI Holdings” or “GCI”) and their subsidiaries (collectively, the “GCI Business”), and was formerly owned by Liberty Broadband, prior to the Separation (defined below).

GCI Liberty was formed in Nevada in December 2024 for the purpose of ultimately holding the GCI Business.

On July 14, 2025, Liberty Broadband and its subsidiaries completed an internal reorganization in order for Liberty Broadband to transfer the GCI Business to GCI Liberty in exchange for GCI Liberty stock, including 10,000 shares of GCI Liberty non-voting preferred stock, and the assumption of liabilities related to the GCI Business by GCI Liberty.

The internal reorganization resulted in GCI Liberty owning, directly or indirectly, GCI, LLC and the operations comprising, and the entities that conduct, the GCI Business.

Liberty Capital Corporation (f/k/a GCI Liberty, Inc.

prior to a name change on May 21, 2026) (“Liberty Capital”) consists of 100% of the outstanding equity interests in GCI, LLC, GCI Holdings, LLC (“GCI Holdings” or “GCI”) and their subsidiaries (collectively, the “GCI Business”), and was formerly owned by Liberty Broadband, prior to the Separation (defined below).

Liberty Capital was formed in Nevada in December 2024 for the purpose of ultimately holding the GCI Business.

On July 14, 2025, Liberty Broadband and its subsidiaries completed an internal reorganization in order for Liberty Broadband to transfer the GCI Business to Liberty Capital in exchange for Liberty Capital stock, including 10,000 shares of Liberty Capital non-voting preferred stock, and the assumption of liabilities related to the GCI Business by Liberty Capital.

The internal reorganization resulted in Liberty Capital owning, directly or indirectly, GCI, LLC and the operations comprising, and the entities that conduct, the GCI Business.

Following the internal reorganization, Liberty Broadband sold all of the non-voting preferred stock (the “Preferred Stock Sale”) to third parties.

The non-voting preferred stock is issued by GCI Liberty, and has a 12% dividend rate and $1,000 per share liquidation price plus accrued and unpaid dividends.

The non-voting preferred stock is issued by Liberty Capital, has a 12% dividend rate and $1,000 per share liquidation price plus accrued and unpaid dividends.

The mandatory redemption date is July 14, 2032.

Following the Preferred Stock Sale, GCI Liberty effected a reclassification of GCI Liberty’s existing common stock into a sufficient number of shares of Series A GCI Group common stock (“GLIBA”), Series B GCI Group common stock (“GLIBB”) and Series C GCI Group common stock (“GLIBK”) to complete the divestiture of GCI Liberty pursuant to the distribution (the “Distribution”) by Liberty Broadband to the holders of record of Liberty Broadband common stock, as of the record date for the Distribution, of all the shares of GCI Group common stock held by Liberty Broadband immediately prior to the Distribution.

Following the Preferred Stock Sale, Liberty Capital effected a reclassification of Liberty Capital’s existing common stock into a sufficient number of shares of Liberty Capital Series A GCI Group common stock (“GLIBA”), Liberty Capital Series B GCI Group common stock (“GLIBB”) and Liberty Capital Series C GCI Group common stock (“GLIBK”) to complete the divestiture of Liberty Capital pursuant to the distribution (the “Distribution”) by Liberty Broadband to the holders of record of Liberty Broadband common stock, as of the record date for the Distribution, of all the shares of Liberty Capital GCI Group common stock held by Liberty Broadband immediately prior to the Distribution.

The internal reorganization, the Preferred Stock Sale, the reclassification and the Distribution are collectively referred to as the “Separation.”

In connection with the Separation, the Company entered into certain agreements, including a separation and distribution agreement, a tax sharing agreement (the “Tax Sharing Agreement”) and a tax receivables agreement (the “Tax Receivables Agreement”), pursuant to which, among other things, GCI Liberty and Liberty Broadband will indemnify each other against certain losses that may arise.

The Tax Sharing Agreement governs the allocation of taxes, tax benefits, tax items and tax-related losses between Liberty Broadband and GCI Liberty, and the Tax Receivables Agreement governs the respective rights and obligations of Liberty Broadband and GCI Liberty with respect to certain tax matters.

In connection with the Separation, the Company entered into certain agreements, including a separation and distribution agreement, a tax sharing agreement (the “Tax Sharing Agreement”) and a tax receivables agreement (the “Tax Receivables Agreement”), pursuant to which, among other things, Liberty Capital and Liberty Broadband will indemnify each other against certain losses that may arise.

The Tax Sharing Agreement governs the allocation of taxes, tax benefits, tax items and tax-related losses between Liberty Broadband and Liberty Capital, and the Tax Receivables Agreement governs the respective rights and obligations of Liberty Broadband and Liberty Capital with respect to certain tax matters.

In addition, the Company entered into certain agreements, including a services agreement (the “Services Agreement”), a facilities sharing agreement and an aircraft time sharing agreement, with Liberty Media and/or its subsidiaries.

Pursuant to the Services Agreement, Liberty Media provides GCI Liberty with public company support services, including legal, tax, accounting, treasury, information technology, cybersecurity, internal audit and investor relations services.

GCI Liberty reimburses Liberty Media for all out-of-pocket expenses incurred by Liberty Media in providing the services and pays a services fee that is subject to review and evaluation for reasonableness on a quarterly basis.

Pursuant to the Services Agreement, Liberty Media provides Liberty Capital with public company support services, including legal, tax, accounting, treasury, information technology, cybersecurity, internal audit and investor relations services.

Liberty Capital reimburses Liberty Media for all out-of-pocket expenses incurred by Liberty Media in providing the services and pays a services fee that is subject to review and evaluation for reasonableness on a quarterly basis.

Update on Economic Conditions

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In recent years, varying factors, including the conflict in Iran, have contributed to significant volatility and disruption of financial markets and global supply chains.

After several years of higher interest rates, the U.S.

Federal Reserve decreased interest rates in 2024 and the latter half of 2025, with no additional decreases thus far in 2026.

Mounting inflationary cost pressures and recessionary fears have negatively impacted the U.S.

and global economy.

Increased equipment costs, for example due to increased tariffs, could also impact GCI’s results.

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The Supreme Court issued a decision on June 27, 2025, reversing the Fifth Circuit and upholding the constitutionality of the USF contribution factor.

There is continuing litigation, as petitioners have filed a new Petition for

Review in the Fifth Circuit, on October 1, 2025, to challenge two statutory provisions that the Supreme Court did not have occasion to address, and pursuant to which GCI or its customers receive universal service support, as well as to challenge the legality of the USAC, which administers that program for the FCC.

There is continuing litigation, as petitioners have filed a new Petition for Review in the Fifth Circuit, on October 1, 2025, to challenge two statutory provisions that the Supreme Court did not have occasion to address, and pursuant to which GCI or its customers receive universal service support, as well as to challenge

the legality of the USAC, which administers that program for the FCC.

Oral argument is scheduled in the case for August 5, 2026.

GCI Holdings receives support from various USF programs.

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Changes to any of the USF programs that GCI Holdings participates in could result in a material decrease in revenue and accounts receivable, which could have an adverse effect on GCI Holdings’ business and the Company’s financial position, results of operations or liquidity.

Quintillion Acquisition

On April 21, 2026, GCI Holdings agreed pursuant to a securities purchase agreement (the “Purchase Agreement”), subject to receipt of regulatory approval and satisfaction of customary closing conditions, to acquire all of the issued and outstanding equity interests in Q Gateway Intermediate Holdings, LLC, a Delaware limited liability company (“Quintillion”), in exchange for consideration of $310 million in cash subject to certain adjustments (including working capital, cash, indebtedness and transaction expenses), reimbursement of up to $50 million for certain capital expenditures incurred by Quintillion, and potential earn-out payments in 2028, 2029 and 2031.

Concurrent with the entry into the Purchase Agreement, GCI, LLC, as lender, entered into a Term Loan Credit Agreement with the seller in the acquisition, as borrower, providing, subject to the satisfaction of certain condition precedents, for a term loan in an initial principal amount of $160 million.

The term loan bears interest at Secured Overnight Financing Rate (“SOFR”) plus a margin of 8.50% (with, subject to certain conditions, up to SOFR plus 2.00% payable in cash and the remainder paid-in-kind).

The acquisition is currently expected to close during the fourth quarter of 2026.

Concurrent with the entry into the Purchase Agreement, GCI, LLC, as lender, entered into a Term Loan Credit Agreement with the seller in the acquisition, as borrower, providing for a term loan in an initial principal amount of $160 million.

The term loan bears interest at the Secured Overnight Financing Rate (“SOFR”) plus a margin of 8.50% (with, subject to certain conditions, up to SOFR plus 2.00% payable in cash and the remainder paid-in-kind).

Upon the closing of the acquisition, the outstanding amounts under the term loan will automatically be deemed paid in full and credited toward the purchase price;

if the acquisition does not close, the term loan will mature on April 21, 2031.

On April 29, 2026, GCI Communication Corporation, a wholly-owned subsidiary of the Company, purchased SPITwSPOTS, Inc.

(“SwS”), a local fixed wireless access provider of broadband services, for total cash consideration of approximately $11 million.

The Company recorded $10 million of goodwill, $11 million of fixed assets, $8 million of other assets, offset by $18 million of other liabilities related to the acquisition.

The acquisition price allocation is preliminary and subject to revision as of June 30, 2026.

Other Corporate Activity

As of April 22, 2026, GCI Liberty has received all required regulatory approvals, including from the FCC, allowing its Chairman of the Board of Directors, Dr.

Malone, to hold de jure voting control of GCI Liberty and its subsidiaries.

As of April 22, 2026, Liberty Capital has received all required regulatory approvals, including from the FCC, allowing its Chairman of the Board of Directors, Dr.

Malone, to hold de jure voting control of Liberty Capital and its subsidiaries.

As a result, the existing letter agreement, dated December 31, 2024, that limited Dr.

Malone’s voting power to below 50% has terminated by its terms, and Dr.

Malone may now vote his equity ownership in full, which represents an approximate 53.7% voting interest based on outstanding shares as of March 23, 2026.

On April 16, 2026, GCI Liberty completed the purchase of approximately 61 thousand Class A Common Shares (“LILA”) and approximately 12.3 million Class C Common Shares (“LILAK”), in each case, of Liberty Latin America Ltd.

Malone may now vote his equity ownership in full, which represents an approximate 53.7% voting interest based on outstanding shares as of March 23, 2026, the most recent record date applicable to a vote of Liberty Capital shareholders.

On April 16, 2026, Liberty Capital completed the purchase of approximately 61 thousand Class A Common Shares (“LILA”) and approximately 12.3 million Class C Common Shares (“LILAK”), in each case, of Liberty Latin America Ltd.

(“LLA”) for approximately $107 million in cash.

On April 16, 2026, the Board of Directors approved renaming the parent company from GCI Liberty, Inc.

to Liberty Capital Corporation.

The company does not intend to change the tickers.

On May 22, 2026, the Company’s Chairman purchased the LLA shares back from the Company at its cost of $8.63 per share for aggregate cash of $107 million.

Results of Operations – Consolidated

Provided in the tables below is information regarding the historical consolidated operating results and other income and expense of GCI Liberty.

Provided in the tables below is information regarding the historical consolidated operating results and other income and expense of Liberty Capital.

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Adjusted OIBDA

Consolidated revenue decreased $10 million for the three months ended March 31, 2026, as compared to the same period in 2025.

Consolidated revenue remained flat and decreased $10 million for the three and six months ended June 30, 2026, respectively, as compared to the same periods in 2025.

The following table highlights selected key performance indicators used in evaluating the Company’s business.

Cable modem subscribers 1

Broadband subscribers 1, 2

Wireless lines in service 3

Wireless lines in service 4

1 A cable modem subscriber is defined by the purchase of cable modem service regardless of the level of service purchased.

If one entity purchases multiple cable modem service access points, each access point is counted as a subscriber.

Small-to-Medium Business customers, promotional cable modem access points and customers that have been inactive for 60 days or less are included.

1 A broadband subscriber is defined by the purchase of high speed data service.

If one entity purchases multiple broadband service access points, each access point is counted as a subscriber.

Small-to-Medium Business customers, promotional broadband access points and customers that have been inactive for 60 days or less are included.

2 Consumer broadband subscribers as of June 30, 2026 includes approximately 5,400 acquired subscribers from the SwS acquisition.

3 A consumer wireless line in service is defined as a wireless device with a monthly fee for services.

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Total revenue

Consumer data revenue decreased $2 million for the three months ended March 31, 2026, as compared to the same period in 2025, driven by a decrease in the number of subscribers.

Consumer wireless revenue increased $2 million for the three months ended March 31, 2026, as compared to the same period in 2025, driven by an increase in the number of subscribers.

Consumer other revenue decreased $6 million for the three months ended March 31, 2026, as compared to the same period in 2025.

Consumer other revenue consists of consumer voice revenue, and up until the third quarter of 2025, video revenue, and other revenue.

The decrease was primarily due to no video revenue being recorded during the quarter ended March 31, 2026 as a result of the discontinuation of video services in the prior year.

Business data revenue decreased $4 million for the three months ended March 31, 2026, as compared to the same period in 2025 .

The three months ended March 31, 2025 benefited from approximately $4 million of revenue relating to the successful appeal of rates for services provided to certain healthcare customers in prior years.

Business wireless revenue remained flat for the three months ended March 31, 2026, as compared to the same period in 2025.

Business other revenue remained flat for the three months ended March 31, 2026, as compared to the same period in 2025.

Consumer data revenue remained flat and decreased $2 million for the three and six months ended June 30, 2026, respectively, as compared to the same periods in 2025.

The decrease for the six months ended June 30, 2026 was driven by a decrease in the number of subscribers, not including the subscribers acquired in the SwS acquisition.

Without the SwS subscribers, consumer data subscribers were down 2.5% compared to the same period in the prior year.

Consumer wireless revenue increased $1 million and $3 million for the three and six months ended June 30, 2026, respectively, as compared to the same periods in 2025, driven by an increase in the number of subscribers.

Consumer other revenue decreased $3 million and $9 million for the three and six months ended June 30, 2026, respectively, as compared to the same periods in 2025.

Consumer other revenue consists of consumer voice revenue, other revenue and up until the third quarter of 2025, video revenue.

The decrease was primarily due to no video revenue being recorded during the three and six months ended June 30, 2026 as a result of the discontinuation of video services in the prior year.

Business data revenue increased $2 million and decreased $2 million for the three and six months ended June 30, 2026, respectively, as compared to the same periods in 2025 .

The increase for the three months ended June 30, 2026 was primarily due to service upgrades with existing healthcare and education customers.

The decrease for the six months ended June 30, 2026 was primarily due to one-time revenue that occurred during the six months ended June 30, 2025 of approximately $4 million related to the successful appeal of rates for services provided to certain healthcare customers in prior years.

This decrease was offset by an increase due to service upgrades with existing healthcare and education customers.

Business wireless revenue remained flat for both the three and six months ended June 30, 2026, as compared to the same periods in 2025.

Business other revenue remained flat for both the three and six months ended June 30, 2026, as compared to the same periods in 2025.

Operating expense

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Consumer direct costs consists of wireless handset inventory costs, video programming, wireless distribution costs, marketing and advertising expenses, bad debt expense, credit card and other transactional fees, and personnel expense for managing relationships with consumer customers.

Consumer direct costs decreased $4 million for the three months ended March 31, 2026, as compared to the same period in 2025, due to decreases in video programming costs as a result of the discontinuation of video services (as discussed above).

Consumer direct costs decreased $2 million and $6 million for the three and six months ended June 30, 2026, respectively, as compared to the same periods in 2025, due to decreases in video programming costs as a result of the discontinuation of video services (as discussed above).

The decreases in video programming costs were partially offset by increases in wireless distribution costs.

Business direct costs consists of network distribution costs, largely to healthcare and education customers, as well as personnel expense for managing relationships with business customers.

Business direct costs increased $6 million for the three months ended March 31, 2026, as compared to the same period in 2025, due to increases in distribution costs for health care and education customers.

The increase was primarily related to temporary cost savings of approximately $5 million in the first quarter of 2025 from a fiber break on a third party network in which GCI Holdings uses capacity, which was fully restored during the three months ended September 30, 2025.

Business direct costs increased $9 million and $15 million for the three and six months ended June 30, 2026, respectively, as compared to the same periods in 2025, due to increases in distribution costs for healthcare and education customers.

A portion of this increase in distribution costs related to temporary cost savings of approximately $3 million and $8 million during the three and six months ended June 30, 2025, respectively, from a fiber break on a third party network in which GCI Holdings uses capacity which was fully restored during the three months ended September 30, 2025.

The remaining portion of the increase was due to higher distribution costs to provide upgraded services, primarily due to higher circuit costs for a specific circuit.

Technology expense consists of field and technology operations costs incurred to manage the Company's network, including personnel expenses, professional service fees, software related costs, lease expenses, maintenance costs, as well as utility costs.

Technology expenses increased $5 million for the three months ended March 31, 2026, as compared to the same period in 2025, primarily due to increased professional service fees, and to a lesser extent, an increase in maintenance and software costs.

Technology expenses increased $2 million and $7 million for the three and six months ended June 30, 2026, respectively, as compared to the same periods in 2025, primarily due to increased professional service fees, and to a lesser extent, an increase in maintenance and software costs.

Selling, general and administrative expense consists of corporate overhead costs largely comprised of personnel expenses, software costs, insurance expense, property taxes and professional service fees.

Selling, general and administrative expense increased $3 million for the three months ended March 31, 2026, as compared to the same period in 2025, primarily due to amounts allocated pursuant to the Services Agreement.

Stock-based compensation increased $6 million for the three months ended March 31, 2026, as compared to the same period in 2025, primarily due to a delay in grants to GCI employees until after the Separation was effective combined with a change in grant timing for GCI employees resulting in two years of value being granted in March 2026, a portion of which vested immediately.

Depreciation and amortization remained relatively flat for the three months ended March 31, 2026, as compared to the same period in 2025.

Acquisition costs increased $3 million, as compared to the same period in 2025, due to expenses incurred related to the future acquisition of Quintillion, as described above.

Selling, general and administrative expense increased $3 million and $6 million for the three and six months ended June 30, 2026, respectively, as compared to the same periods in 2025, primarily due to amounts allocated pursuant to the Services Agreement.

Stock-based compensation increased $2 million and $8 million for the three and six months ended June 30, 2026, respectively, as compared to the same periods in 2025, primarily due to a delay in grants to GCI employees until after the Separation was effective combined with a change in grant timing for GCI employees resulting in two years of value being granted in March 2026, a portion of which vested immediately.

Depreciation and amortization increased $4 million and $3 million for the three and six months ended June 30, 2026, respectively, as compared to the same period in 2025, primarily due to an increase in assets placed in service.

Acquisition costs increased $4 million and $7 million, respectively, as compared to the same period in 2025, primarily due to expenses incurred related to the future acquisition of Quintillion, as described above.

Operating Income (Loss).

Consolidated operating income decreased $28 million for the three months ended March 31, 2026, as compared to the same period in 2025.

Consolidated operating income decreased $22 million and $50 million for the three and six months ended June 30, 2026, respectively, as compared to the same periods in 2025.

Operating income was impacted by the above explanations.

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In addition, this measure allows management to view operating results, perform analytical comparisons and identify strategies to improve performance.

Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income, net income, cash flow provided by operating activities and other measures of financial performance prepared in accordance with U.S.

Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income, net income, cash flow provided by operating

activities and other measures of financial performance prepared in accordance with U.S.

generally accepted accounting principles.

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Adjusted OIBDA

Consolidated Adjusted OIBDA decreased $20 million during the three months ended March 31, 2026, as compared to the same period in 2025, due to the items discussed above.

Consolidated Adjusted OIBDA decreased $12 million and $32 million during the three and six months ended June 30, 2026, respectively, as compared to the same periods in 2025, due to the items discussed above.

Other Income and Expense

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Interest Expense.

Interest expense decreased $2 million during the three months ended March 31, 2026, as compared to the same period in 2025, primarily due to lower amounts outstanding and lower interest rates on the Company’s Senior Credit Facility (as defined in note 5 to the accompanying condensed consolidated financial statements) compared to the prior year.

Other, net income increased $3 million during the three months ended March 31, 2026, as compared to the same period in 2025, primarily related to interest and dividend income related to the Company’s cash equivalents which were higher in the first quarter of 2026 compared to the prior year as a result of the rights offering (as defined and described in note 1 to the accompanying condensed consolidated financial statements).

Interest expense remained flat and decreased $2 million during the three and six months ended June 30, 2026, respectively, as compared to the same periods in 2025.

The decrease for the six months ended June 30, 2026 was primarily due to lower amounts outstanding during the majority of the six months ended June 30, 2026 and lower interest rates on the Company’s Senior Credit Facility (as defined in note 5 to the accompanying condensed consolidated financial statements) compared to the prior year.

Other, net income increased $4 million and $7 million during the three and six months ended June 30, 2026, respectively, as compared to the same periods in 2025, primarily related to interest and dividend income related to the Company’s cash equivalents which were higher in the first half of 2026 compared to the prior year as a result of the rights offering (as defined and described in note 1 to the accompanying condensed consolidated financial statements).

Income taxes.

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Effective income tax rate

For the three months ended March 31, 2026, the income tax expense was in excess of the U.S.

For both the three and six months ended June 30, 2026 and 2025, the income tax expense was in excess of the U.S.

statutory tax rate of 21% primarily due to state income taxes and nondeductible executive compensation.

For the three months ended March 31, 2025, the income tax expense was in excess of the U.S.

statutory rate of 21% primarily due to state income taxes.

Net earnings (loss).

The Company had net earnings of $18 million and $35 million for the three months ended March 31, 2026 and 2025, respectively.

The Company had net earnings of $16 million and $27 million for the three months ended June 30, 2026 and 2025, respectively, and net earnings of $34 million and $62 million for the six months ended June 30, 2026 and 2025, respectively.

The change in net earnings (loss) was the result of the above-described fluctuations in our revenue, expenses, and other income and expenses.

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available cash balances, cash generated by the operating activities of GCI Holdings, dividend and interest receipts, capital market transactions and debt (including borrowings under the Senior Credit Facility (as discussed in note 5 to the accompanying condensed consolidated financial statements)) .

As of March 31, 2026, GCI Liberty had a cash and cash equivalents balance of $435 million, which was substantially held in cash equivalents.

As of June 30, 2026, Liberty Capital had a cash and cash equivalents balance of $497 million, which was substantially held in cash equivalents.

When applicable, cash equivalents are invested in U.S.

Treasury securities, other

government securities or government guaranteed funds, AAA rated money market funds and other highly rated financial and corporate debt instruments.

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Treasury securities, other government securities or government guaranteed funds, AAA rated money market funds and other highly rated financial and corporate debt instruments.

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Net cash provided by (used in) financing activities

The decrease in cash provided by operating activities during the three months ended March 31, 2026, as compared to the same period in 2025, was primarily driven by decreased net earnings and timing differences in working capital accounts.

During the three months ended March 31, 2026 and 2025, net cash flows used in investing activities were primarily related to capital expenditures, net of grant proceeds of $55 million and $49 million, respectively.

The projected uses of our cash and restricted cash are debt repayments, net capital expenditures of approximately $235 million, approximately $45 million for interest payments on outstanding debt, reimbursements to Liberty Media for amounts due under various agreements and to fund investment opportunities at GCI Liberty (including the LLA investments discussed above), and acquisitions (including the Quintillion acquisition discussed above).

The decrease in cash provided by operating activities during the six months ended June 30, 2026, as compared to the same period in 2025, was primarily driven by decreased net earnings and timing differences in working capital accounts.

During the six months ended June 30, 2026, net cash flows used in investing activities were primarily related to a loan to Quintillion of $160 million and capital expenditures, net of grant proceeds of $125 million.

During the six months ended June 30, 2025, net cash flows used in investing activities were primarily relate to capital expenditures, net of grant proceeds of $100 million.

During the six months ended June 30, 2026, net cash provided by financing activities were primarily related to net debt borrowings of $220 million.

During the six months ended June 30, 2025, net cash used by financing activities were primarily related to net debt repayments of $84 million.

The projected uses of our cash and restricted cash are debt repayments, net capital expenditures of approximately $165 million, approximately $30 million for interest payments on outstanding debt, reimbursements to Liberty Media for amounts due under various agreements and to fund investment opportunities at Liberty Capital, funding of possible future dividends, and acquisitions (including the Quintillion acquisition discussed above).

We expect cash and other available sources of liquidity as discussed above to cover expenses for the foreseeable future.

GCI, LLC is in compliance with all debt maintenance covenants as of March 31, 2026.

In July 2026, the Executive Committee of our Board of Directors adopted a dividend policy providing for regular quarterly cash dividends on our GCI Group common stock beginning in the fourth quarter of 2026 with an initial aggregate amount of approximately $60 million annually at inception, or approximately $15 million per quarter.

Under the policy, the Board (or an authorized committee) currently intends to declare quarterly cash dividends to the GCI Group common stockholders, subject to the Company's financial condition, results of operations, capital requirements, applicable law and other factors the Board (or an authorized committee) deems relevant.

All future dividends remain within the discretion of the Board of Directors (or an authorized committee thereof), and the dividend policy may be modified, suspended or terminated at any time.

GCI, LLC is in compliance with all debt maintenance covenants as of June 30, 2026.

See note 5 to the accompanying condensed consolidated financial statements for a description of all indebtedness obligations.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis