Frontier Communications Parent (FYBR 0.27%), a leading provider of fiber-optic internet and communications services, released its second-quarter 2025 results on July 29, 2025. The company reported GAAP revenue of $1.54 billion in Q2 2025, topping analyst expectations of $1.51 billion (GAAP). However, net loss per share (GAAP) widened to $0.49 in Q2 2025, missing the consensus forecast of a $0.21 GAAP loss per share. Adjusted EBITDA rose 8.4% year over year in Q2 2025, indicating momentum in fiber broadband. The period reflected strong operational progress with customer and revenue growth, despite persistent losses and high capital investment ahead of a pending merger with Verizon Communications Inc. The overall quarter demonstrated increased commercial activity and ongoing transformation, but also highlighted continuing bottom-line losses and heavy spending to support network growth.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $(0.49) | $(0.21) | $(0.49) | 0.0% |
| Revenue (GAAP) | $1,539 million | $1,514.27 million | $1,480 million | 4.0% |
| Adjusted EBITDA | $607 million | $560 million | 8.4% | |
| Operating Margin (GAAP) | 2.9% | 6.1% | (3.2 pp) | |
| Net Cash from Operating Activities | $477 million | $374 million | 27.5% |
Source: Analyst estimates for the quarter provided by FactSet.
Business Overview and Strategic Focus
Frontier Communications Parent provides broadband internet, voice, and video services, with a main emphasis on expanding its fiber-optic network. The company aims to transition more customers from legacy copper connections to faster fiber-optic lines. Its revenue is driven by residential (consumer) and business broadband, phone, and related services across several regions in the United States.
Recently, Frontier’s strategy has centered on scaling its fiber footprint, driven by increasing demand for high-speed internet. Customer experience, operational efficiency, and capital discipline are key success factors, particularly as competition intensifies and technology shifts towards faster, more reliable connections.
Quarter Highlights: Growth Drivers and Key Metrics
The quarter was marked by continued success in fiber buildout. The company passed 8.5 million total locations with fiber as of Q2 2025, adding 334,000 during the quarter, up from 7.2 million a year ago. The number of broadband customers climbed to 3.227 million as of Q2 2025, a 7.2% year-over-year increase as of June 30, 2025, compared to June 30, 2024, while fiber broadband customers jumped 20.0% year-over-year in Q2 2025. Consumer fiber revenue grew 16.4% year-over-year, reaching $609 million in Q2 2025, with consumer fiber broadband revenue up 26.2% year-over-year in Q2 2025.
Average revenue per user (ARPU) for consumer fiber broadband rose to $68.54 in Q2 2025, up 4.9% year-over-year in Q2 2025. This metric reflects how much revenue the company earns from each active consumer fiber internet account. Similarly, business and wholesale fiber broadband ARPU increased 0.9% to $98.72 in Q2 2025, indicating more modest pricing improvements in the enterprise segment. The consumer fiber churn rate, which measures the percentage of customers leaving the service each month, fell to 1.29% in Q2 2025 from 1.40% in Q2 2024.
Segment results showed both consumer and business/wholesale growth. Consumer segment revenue increased 4.6% year-over-year in Q2 2025, reflecting strong take-up of fiber products. Within the business and wholesale segment, fiber revenue grew 4.1% year-over-year in Q2 2025. The company noted ongoing declines in copper-based service revenue in Q2 2025, although higher customer acquisition expenses had a partial offsetting impact.
Profitability, however, remained constrained. Net loss was $123 million in both Q2 2025 and Q2 2024. Operating free cash flow (non-GAAP) was negative $368 million in Q2 2025, reflecting high capital expenditure (CapEx) outlays of $845 million in Q2 2025. The net leverage ratio (non-GAAP) was 4.9x as of Q2 2025, continuing to reflect substantial indebtedness, though there are no major maturities until 2027 and available liquidity stands at $2.3 billion.
A significant development affecting the company’s outlook is its pending merger with Verizon Communications Inc, announced in September 2024. The deal offers a 43.7% premium to Frontier’s share price and is targeted to close by the first quarter of 2026. During the period, the company reiterated it would not provide forward guidance or host a conference call while the acquisition remains pending.
Looking Ahead: Management Commentary and Guidance
Due to the proposed merger, management did not issue forward financial guidance for the next quarter or the remainder of fiscal 2025. Leadership explicitly stated that, "In light of the pending transaction, Frontier will not be hosting a conference call or providing a financial outlook." As a result, investors have no official outlook to reference for upcoming results or targets.
With the Verizon deal pending, Frontier’s future direction will depend on regulatory approval, integration planning, and ongoing operational performance. Key issues to monitor include the pace of fiber buildout, the company’s ability to improve free cash flow, and management of leverage as large capital investments continue. The performance of both consumer and enterprise fiber products, alongside churn rates and ARPU trends, will remain central to Frontier’s business outlook.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
