Adjusted EBITDA was $877 million with a 28.4% margin, down 250 basis points year-over-year, impacted by a $46 million onetime RDOF giveback and special items totaling $152 million.
Fiber broadband revenue in Mass Markets increased 19.9% year-over-year, with 117,000 fiber-enabled homes added and 34,000 Quantum Fiber customers added during the quarter.
Free cash flow excluding special items was negative $209 million, with capital expenditures at $891 million.
Lumen reported total revenue decline of 5.4% to $3.092 billion in 2Q 2025, with business segment revenue down 3.4% to $2.49 billion and Mass Markets segment revenue down 12.8% to $602 million.
North American enterprise channels revenue declined 2.4% year-over-year, with Grow product revenue up 8.5%, Nurture down 18%, and Harvest up 2.1%.
Public Sector revenue grew 8.2% year-over-year, helped by Grow revenue up 9.4% and Harvest revenue up approximately 49%, though Harvest is expected to normalize in H2 2025.
Total business Grow revenue increased 6% year-over-year, with total IP sales up nearly 38% and IP revenue up mid-single digits.
Wholesale revenue declined approximately 5%, with Harvest revenue down 6.2% and Nurture revenue down 8.6%.
Automotive revenue was $733 million, down 4% sequentially, driven by weakness in America and Europe but offset by strength in China.
Cash and short-term investments totaled $2.8 billion with total liquidity of $4 billion.
Free cash flow was $106 million, down sequentially due to working capital timing but year-to-date free cash flow margin remains on track at 19% of revenue.
GAAP and non-GAAP gross margin was 37.6%, above midpoint guidance, with manufacturing utilization flat at 68% post capacity impairment.
GAAP diluted EPS was $0.41, non-GAAP diluted EPS was $0.53, both down from prior year due to market conditions.
GAAP operating expenses were $359 million, down from $396 million a year ago; non-GAAP operating expenses were $298 million, down $17 million sequentially but above midpoint guidance due to restructuring delays.
GAAP operating margin was 13.2%, non-GAAP operating margin was 17.3%.
Industrial revenue increased 2% sequentially, with traditional industrial slightly down but medical and aerospace/defense growing.
Inventory days decreased by 11 days to 208 days, with base inventory healthy at 121 days excluding strategic builds.
Other revenue, including AI data center, increased 16% quarter-over-quarter and nearly doubled year-over-year.
Q2 revenue was $1.47 billion, exceeding the midpoint of guidance and up 1.6% sequentially.
Dafinchi