LICT Corporation Announces Strong Q2 2025 Results

08/14/2025 – 07:50 AM

• Leadership strengthened with the appointment of Joe Cecin as COO

• Supreme Court ruled in favor of the current universal service fund – and the new tax bill provides for enhanced cash flow

• Advancing our multi-year, government-supported network expansion to bring broadband to unserved and underserved areas, supporting nationally significant infrastructure growth and long-term value creation.

• Revenue increased 2%, to $34.4 million versus $33.7 million in the second quarter of 2024

• Non-regulated is 56% of total revenue, increasing 2% to $19.2 million from $18.8 million in the prior year

• Broadband and Voice lines increased year-over-year due to Manti Telephone Company acquisition

• Fixed Wireless ready for significant growth

RYE, N.Y.–(BUSINESS WIRE)–
LICT Corporation (“LICT” or the “Company”; OTC Pink^®: LICT), an integrated provider of broadband and voice services, today announced its financial results for the quarter ended June 30, 2025, and also welcomed Joe Cecin as Chief Operating Officer. Joe is an engineering graduate of the U.S. Military Academy at West Point, has earned an MBA from Stanford University and brings over 30 years of telecommunications industry experience spanning operations, infrastructure development, and leadership in private equity-backed businesses.

Shareholder Designated Charitable Contribution Program

In 2016, the Company established the Shareholder Designated Charitable Contribution Program. Under this initiative, all registered shareholders were eligible to designate a qualified 501(c)(3) charitable organization, and the Company made contributions of $100 per share on their behalf.

From 2016 through 2024, LICT donated more than $10 million to shareholder-designated charities nationwide, reflecting the generosity of our shareholder base and the Company’s ongoing commitment to social responsibility.

Pending Board of Director approval, the program will continue with a $100 per share shareholder designated charitable contribution, commencing December 2025.

LICT believes that charitable giving is a fundamental obligation for those with the means to make a meaningful impact. By empowering shareholders to direct contributions to causes they value, the program has extended LICT’s commitment to community engagement and philanthropy.

Results from Operations

Revenues

Second Quarter 2025

Total revenues were $34.4 million in the second quarter of 2025 compared with $33.7 million in the second quarter of 2024.

Non-regulated revenues were $19.2 million, 56% of total revenues, compared with $18.8 million in the second quarter of 2024. The increase was primarily due to higher sales of broadband services and high-speed data circuits, mostly in Utah, Kansas and California.

Regulated revenues were $15.2 million, representing an increase of $0.3 million, or 2.0%, compared to $14.9 million in the second quarter of 2024. Second quarter 2025 results also include regulated revenues from Manti Telephone Company (MTC), which was acquired on January 1, 2025; MTC contributed $0.9 million in regulated revenue this quarter. This acquisition supports our continued strategic expansion in rural markets. This was offset by reductions in voice service revenues consistent with broader industry trends. Additionally, interstate access revenues declined due to a drop in special access circuits which have been replaced with lower cost broadband services.

Six Months ended June 30, 2025

Total revenues were $69.0 million for the six months ended June 30, 2025 compared with $67.2 million for the six months ended June 30, 2024.

Non-regulated revenues were $38.6 million for the six months ended June 30, 2025 compared with $37.2 million for the six months ended June 30, 2024, an increase of $1.4 million, or 3.8%, driven by higher sales of broadband services and high-speed data circuits while at the same time encountering increased competition and pricing pressures in our expansion markets.

Regulated revenues were $30.4 million for the six months ended June 30, 2025, compared with $29.9 million for the six months ended June 30, 2024. These results also include regulated revenues of $1.7 million from the Manti Telephone Company (MTC), which was acquired on January 1, 2025. This was offset by reductions in voice service revenues consistent with broader industry trends. Additionally, interstate access revenues declined due to a drop in special access circuits which have been replaced with lower cost broadband services.

EBITDA

Second Quarter 2025

EBITDA for the second quarter of 2025 was $13.5 million compared to $14.2 million for the same period in 2024, representing a decrease of $0.7 million, or 4.9%. The year-over- year decline primarily reflects higher operating expenses, particularly in labor, professional services, and maintenance activities supporting our ongoing network expansion. Importantly, as a greater number of capital expenditure projects transition from planning to execution in the second half of the year, a larger portion of labor and professional services expenses is expected to be capitalized. This shift is anticipated to reduce the impact of these costs on operating expenses going forward, supporting improved EBITDA margins in future periods.

Non-regulated EBITDA for the second quarter of 2025 was $7.1 million, unchanged from the same period in 2024. Regulated EBITDA for the second quarter of 2025 was $6.4 million, compared to $7.2 million in the same period of 2024, reflecting a decrease of $0.8 million, or 11.1%. The decline was primarily driven by lower regulated revenues due to mandated pricing adjustments and by higher operating expenses.

Six Months Ended June 30, 2025

EBITDA for the six months ended June 30, 2025 was $27.3 million, compared to $28.9 million for the same period in 2024, representing a decrease of $1.6 million, or 5.5%. The decline in EBITDA is consistent with the increase in operating costs, particularly higher personnel-related and professional service expenses tied to operational expansion. Although revenue growth in certain markets provided a partial offset, the net impact of these cost pressures resulted in a modest decline in EBITDA, which, along with higher depreciation and amortization expense, contributed to the overall decrease in net income.

Non-regulated EBITDA for the first six months of 2025 was $14.4 million, compared to $14.4 million in the first six months 2024. Regulated EBITDA for the first six months of 2025 was $12.9 million, compared to $14.5 million in the same period of 2024, reflecting a decrease of $1.6 million, or 11.0%. The decline was primarily driven by increased operating costs, including higher expenses for expanded staffing and professional services related to our operational expansion, as well as elevated repair and maintenance activity in the Company’s New Mexico and Utah operations.

The following table is a reconciliation of EBITDA to Operating profit from operations:

Net income and Earnings per Share

Second Quarter 2025

Net income for the second quarter of 2025 was $3.2 million, or $198 per share, compared to $4.9 million, or $293 per share, for the same period in 2024. The $1.7 million, or 34.7%, year-over-year decrease in net income was primarily driven by higher operating and non- operating expenses. Total costs and expenses increased by $2.3 million, largely due to a $1.1 million rise in cost of revenue, which reflected expanded staffing, increased use of professional services, and higher repair and maintenance activity, particularly in the