10-Q · May 1, 2026
Liberty Global Ltd's Q1 2026 report indicates a significant recovery from previous losses, with a net income of $358.2 million compared to a loss of $1.3 billion in the same period last year. Revenue rose to $1.27…
Earnings analysis · 10-Q
LBTYA earnings analysis
Filed July 24, 2026 · Our reading of the company's report
The latest report
Liberty Global reported Q2 revenue of $1.172B, down $97.1M (7.7%) year over year and down 7.7% from Q1 2026’s $1.27B. Gross margin improved to about 68.0% from 63.3% a year earlier, but GAAP operating margin compressed…
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Liberty Global reported Q2 revenue of $1.172B, down $97.1M (7.7%) year over year and down 7.7% from Q1 2026’s $1.27B. Gross margin improved to about 68.0% from 63.3% a year earlier, but GAAP operating margin compressed to 0.3% from 2.3% and the company recorded a $357.8M net loss; diluted EPS was not disclosed in the supplied filing text. Segment trends were mixed, with Telenet EBITDA improving but revenue declining at Telenet, VM Ireland, and VMO2, while first-half adjusted free cash flow worsened to negative $469.7M amid $745.5M of capex.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
What stood out
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Gross-margin expansion despite revenue decline
Gross margin expanded to approximately 68.0% in Q2 2026 from 63.3% a year earlier, as programming and other direct costs fell $89.9M, or 19.3%, to $375.4M against $1.1720B of revenue.
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Telenet EBITDA and margin improved
Telenet adjusted EBITDA increased $11.9M, or 6.4%, to $197.0M, lifting its adjusted EBITDA margin to 26.2% from 23.6% in the prior-year quarter.
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First-half operating cash flow improved
Operating cash flow rose $60.1M year over year to $338.5M for the first six months of 2026, aided by lower tax and net interest payments.
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Substantial corporate liquidity
Consolidated cash and cash equivalents were $2.4186B at June 30, 2026, including $1.6101B held at unrestricted subsidiaries and available liquidity at the corporate level, subject to tax and legal considerations.
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Net loss narrowed materially
Net loss narrowed sharply to $357.8M from $2.7738B in Q2 2025, helped by a $2.1078B reduction in foreign-currency transaction losses and a $424.2M year-over-year derivative-result swing.
What to watch
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Organic revenue and fixed-line pressure
Revenue fell $97.1M, or 7.7%, year over year to $1.1720B and declined 7.7% sequentially from $1.27B in Q1 2026. Organic revenue fell $73.7M, or 6.0%, with residential fixed revenue down $23.3M organically.
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Negative FCF and elevated capex
Adjusted free cash flow was negative $469.7M for the first six months of 2026, worsening from negative $342.4M a year earlier, as cash capex rose $182.9M to $745.5M. Capex equaled about 30.5% of first-half revenue of $2.4466B.
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Leverage and rate sensitivity remain high
Consolidated debt and finance-lease obligations totaled $8.4B at June 30, 2026, including $0.6B classified as current. Variable-rate indebtedness was $6.7B at a 5.3% weighted-average rate; a 50-basis-point increase would add $33.5M to annual interest expense and cash outflows before hedges.
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Cost inflation can outpace pricing
The filing does not present a separately revised Item 1A risk-factor section versus the 2025 10-K, but reiterates inflation risk: costs may rise faster than revenue. Q2 SG&A excluding share compensation increased $12.6M, or 4.9%, while revenue fell $97.1M.
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Customer and revenue-quality pressure
Telenet’s residential fixed subscription revenue was reduced by a $12.8M write-off of previously recognized revenue in Q2 2026. Telenet total revenue declined $32.0M, or 4.1%, and VM Ireland organic revenue declined $3.3M, or 2.7%.
Management's outlook
The 10-Q contains no explicit quantitative revenue or EPS guidance. Management states it expects significant interest expense to continue for the foreseeable future and anticipates refinancing or extending maturities as debt matures in later years; it believes current resources are sufficient for foreseeable requirements over the next 12 months.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.