Strong Q3 Momentum Drives Liberty Latin America Revenue Gains Amid Caribbean Recovery Efforts

Liberty Latin America’s third-quarter results showcase sustained commercial traction across its regional operations, with revenue expanding year-over-year and operating profitability making a notable recovery. The communications provider reported consolidated revenue of $1.11 billion, marking a 2% increase from the prior year period, while rebased growth—adjusting for acquisitions and foreign exchange impacts—stood at 1%.

Regional Performance Fuels Overall Growth

The company’s diverse portfolio across the Caribbean and Latin American markets delivered mixed yet predominantly positive results. Liberty Caribbean demonstrated resilience with 3% revenue growth on both reported and rebased bases, bolstered by its accelerated fixed-mobile convergence (FMC) strategy. The region’s aggressive push toward bundled services proved effective, with residential fixed revenue climbing 5% year-over-year and residential mobile revenue rising 2% on a rebased basis.

C&W Panama contributed significantly to consolidated performance, posting 6% rebased revenue growth driven primarily by enterprise and government B2B initiatives. Large-scale commercial projects generated approximately $20 million in incremental quarterly revenue compared to the prior quarter, highlighting the segment’s capacity to capture high-value business opportunities.

Liberty Networks, the company’s subsea and terrestrial fiber backbone division, achieved its strongest quarterly rebased revenue performance in two years at 6% growth, fueled by expanded wholesale and enterprise capacity solutions. The segment’s subsea expansion particularly resonated with regional connectivity demand.

In contrast, Liberty Puerto Rico faced headwinds, with rebased revenue declining 5% year-over-year to $298 million, primarily reflecting residual challenges from its mobile network infrastructure migration completed in late 2024. Residential mobile revenue contracted 7% while B2B revenues fell 16% during the quarter. However, recently launched customer value propositions showed early market traction, positioning the operation for potential Q4 improvement. Liberty Costa Rica’s revenue grew 6% on a reported basis and 3% on a rebased basis, driven by postpaid mobile expansion and equipment sales.

Operational Leverage and Cost Discipline Shine Through

The company demonstrated impressive operational execution through enterprise-wide cost reduction initiatives. Consolidated Adjusted OIBDA—a non-GAAP operating profitability metric—reached $433 million in Q3 2025, representing 8% reported growth and 7% rebased growth compared to the prior year quarter. The consolidated Adjusted OIBDA margin expanded to 39%, up from 37% year-over-year, reflecting meaningful margin expansion.

All five operating segments contributed to Adjusted OIBDA growth. Liberty Caribbean led with 10% rebased Adjusted OIBDA expansion, achieving a 47% margin—a nearly 300 basis point improvement reflecting comprehensive efficiency and savings programs implemented over the preceding year. Liberty Networks achieved 10% rebased Adjusted OIBDA growth to $65 million, driven by revenue strength and lower bad debt provisions. Liberty Costa Rica posted 7% rebased Adjusted OIBDA growth despite revenue normalization, demonstrating disciplined cost management as equipment-related expenses remained stable.

Even Liberty Puerto Rico, despite revenue pressures, grew Adjusted OIBDA 7% on a rebased basis to $95 million through aggressive operational restructuring. The segment’s right-sizing efforts reduced overall cost structures to complement its current subscriber base, driving sequential Adjusted OIBDA growth of 10% versus Q2 2025. C&W Panama’s Adjusted OIBDA increased modestly at 4% rebased growth, benefiting from B2B project revenue and network efficiency gains.

Mobile Subscriber Momentum Accelerates

The company’s mobile strategy gained tangible momentum in Q3, with postpaid net additions totaling 101,700 subscribers—the highest quarterly addition rate in three years. Liberty Caribbean led this expansion, with Jamaica contributing particularly strong postpaid growth. This subscriber quality improvement reflects the effectiveness of the FMC strategy, which incentivizes customers to bundle mobile services with fixed connectivity offerings.

Consolidated total mobile subscribers reached 6.68 million, representing a net increase of 39,100 during the quarter. Prepaid mobile saw a net decline of 62,600 subscribers, consistent with industry-wide migration trends toward postpaid arrangements offering better recurring revenue characteristics.

Profitability Recovery and Capital Efficiency

Operating income showed remarkable turnaround, reaching $188 million in Q3 2025 compared to a $380 million operating loss in Q3 2024. The improvement resulted from diminished impairment charges, Adjusted OIBDA growth, and lower depreciation-amortization expenses. For the nine-month period through September 30, the company reported an operating loss of $17 million versus $176 million in the prior year nine months.

Property and equipment additions declined to $149 million in Q3 (13% of revenue) from $171 million in the prior year quarter (16% of revenue), signaling improving capital efficiency. Year-to-date capital expenditures fell to $420 million (12.8% of revenue) from $485 million (14.7% of revenue), reflecting both disciplined investment allocation and completion of certain network infrastructure projects.

Hurricane Melissa Impact and Recovery Strategy

The company confronted significant challenges in late October when Category 5 Hurricane Melissa devastated Jamaica and the broader Caribbean region. The western half of Jamaica sustained particularly severe damage to homes, businesses, and communications infrastructure. The company anticipates adverse impacts to Q4 2025 and beyond as restoration efforts proceed.

Liberty Latin America’s parametric insurance program for storm protection was triggered, with management expecting third-party proceeds during Q4. These insurance recoveries will fund network reconstruction efforts and partially offset revenue losses during the recovery period. The company partnered with Starlink to deploy direct-to-cell satellite services, enhancing essential communications capabilities for customers during the crisis.

Balance Sheet and Liquidity Metrics

Consolidated gross leverage improved to 4.9x from 5.0x sequentially, while consolidated net leverage stood at 4.6x versus 4.7x. The weighted average debt tenor remained solid at 4.7 years with fully-swapped borrowing costs of 6.8%. Unused borrowing capacity totaled $912.8 million, providing operational flexibility.

The C&W borrowing group, representing the company’s Caribbean and Panama operations, maintained a proportionate net leverage ratio of 3.7x. Liberty Puerto Rico’s average debt tenor compressed to approximately 3.0 years with a 6.9% fully-swapped borrowing cost. Liberty Costa Rica’s net leverage reached 2.2x with a 10.6% fully-swapped borrowing cost.

Forward Outlook and Strategic Priorities

Management expects underlying seasonal strength in Adjusted Free Cash Flow during Q4 despite near-term hurricane recovery requirements. The company remains focused on several strategic priorities: advancing FMC penetration to drive customer lifetime value, optimizing cost structures across all operating segments through 2026, expanding B2B connectivity and managed services offerings, and addressing the embedded sum-of-the-parts discount in its publicly traded securities valuation.

The convergence strategy yielded tangible results in Q3, with FMC adoption driving quality subscriber growth and residential fixed ARPU improvements. Moving forward, management expects these initiatives to sustain momentum as the company navigates near-term hurricane recovery while positioning for longer-term regional growth aligned with increasing Latin American connectivity demand.