ATN International, Inc.

Previous wording

The following chart summarizes the operating activities of our principal subsidiaries, the segments in which we reported our revenue and the markets we served as of June 30, 2025:

Current wording

The following chart summarizes the operating activities of our principal subsidiaries, the segments in which we reported our revenue and the markets we served during the nine months ended September 30, 2025:

Previous wording

In July 2019, we entered into a Network Build and Maintenance Agreement with AT&T Mobility, LLC (“AT&T”) that we subsequently amended through March 31, 2025 (the “FirstNet Agreement”). In connection with the FirstNet Agreement, we are building a portion of AT&T’s network for the First Responder Network Authority (“FirstNet”) in or near our current operating areas in the western United States. Pursuant to the FirstNet Agreement and subject to certain limitations contained therein, all cell sites must be completed and accepted within a specified period of time. Since the inception of the project through June 30, 2025, we have recorded $77 million in construction revenue and expect to record approximately $6 million in additional construction revenue and related costs as sites are completed. We expect to substantially complete the build by the end of 2025. Revenues from construction are expected to have minimal impact on the Company’s operating income.

Current wording

In July 2019, we entered into a Network Build and Maintenance Agreement with AT&T Mobility, LLC (“AT&T”) that we subsequently amended through March 31, 2025 (the “FirstNet Agreement”). In connection with the FirstNet Agreement, we are building a portion of AT&T’s network for the First Responder Network Authority (“FirstNet”) in or near our current operating areas in the western United States. Pursuant to the FirstNet Agreement and subject to certain limitations contained therein, all cell sites must be completed and accepted within a specified period of time. Since the inception of the project through September 30, 2025, we have recorded $81 million in construction revenue and expect to record approximately $5 million in additional construction revenue and related costs as sites are completed. We expect to substantially complete the build during the first half of 2026. Revenues from construction are expected to have minimal impact on the Company’s operating income.

Previous wording

In general, all telecommunications providers are obligated to contribute to the Universal Service Fund (“USF”), which is used to promote the availability of qualifying telecommunications and broadband service to low-income households, households located in rural and high-cost areas, and to schools, libraries, and rural health care providers. We contribute to the USF and also receive various forms of USF support. We are subject to audit by the Universal Service Administrative Company (“USAC”) with respect to our federal contributions and our receipts of universal service funding. To our knowledge, we comply in all material respects with applicable federal and state USF assessment and support requirements.

Current wording

In general, all telecommunications providers are obligated to contribute to the Universal Service Fund (“USF”), which is used to promote the availability of qualifying telecommunications and broadband service to low-income households, households located in rural and high-cost areas, and to schools, libraries, and rural health care providers. We contribute to the USF and also receive various forms of USF support. We are subject to audit by the Universal Service Administrative Company (“USAC”) with respect to our federal contributions and our receipts of universal service funding. To our knowledge, as of the date of this Report, we were in compliance with, in all material respects, applicable federal and state USF assessment and support requirements.

Previous wording

We have also been awarded construction grants to build network connectivity for eligible communities. The funding of these grants, used to reimburse us for our construction costs, is generally distributed after we incur reimbursable costs. Completion deadlines began in 2025 and once these projects are constructed, we are obligated to provide service to the participants. We expect to meet all requirements associated with these grants. As of June 30, 2025, we were awarded $103.8 million of construction grants.

Current wording

We have also been awarded construction grants to build network connectivity for eligible communities. The funding of these grants, used to reimburse us for our construction costs, is generally distributed after we incur reimbursable costs. Completion deadlines began in 2025 and once these projects are constructed, we are obligated to provide service to the participants. We expect to meet all requirements associated with these grants. As of September 30, 2025, we were awarded $103.5 million of construction grants.

Previous wording

During the six months ended June 30, 2025, we disbursed capital expenditures of $12.2 million under these programs and received reimbursement of $9.4 million. These cash flows are classified as investing activities in our statement of cash flows.

Current wording

During the nine months ended September 30, 2025, we disbursed capital expenditures of $16.7 million under these programs and received reimbursement of $12.6 million. These cash flows are classified as investing activities in our statement of cash flows.

Previous wording

In addition, we partner with tribal governments to obtain grants under various government grant programs including, but not limited to, the Tribal Broadband Connectivity Program (“TBCP”) and the Rural Development Broadband ReConnect Program (“ReConnect”). These programs are administered by United States government agencies to deploy broadband connectivity in certain underserved areas. We were identified as a sub recipient of grants under these programs totaling $239 million as of June 30, 2025. Through June 30, 2025, we have received $23.5 million of funding under these programs and spent $25.4 million on construction obligations. These amounts are recorded as operating cash flows in the Company’s statement of cash flows.

Current wording

In addition, we partner with tribal governments to obtain grants under various government grant programs including, but not limited to, the Tribal Broadband Connectivity Program (“TBCP”) and the Rural Development Broadband ReConnect Program (“ReConnect”). These programs are administered by United States government agencies to deploy broadband connectivity in certain underserved areas. We were identified as a sub recipient of grants under these programs totaling $239 million as of September 30, 2025. Through September 30, 2025, we have received $34.0 million of funding under these programs and spent $31.9 million on construction obligations. These amounts are recorded as operating cash flows in the Company’s statement of cash flows.

Previous wording

In July 2022, we were approved to participate in the Federal Communication Commission’s Secure and Trusted Communications Networks Reimbursement Program (the “Replace and Remove Program”), designed to reimburse providers of advanced communications services for reasonable costs incurred in the required removal, replacement, and disposal of communications equipment and services in their networks that has been deemed to pose a national security risk. Pursuant to the Replace and Remove Program, our eligible subsidiaries were initially allocated up to approximately $207 million to replace, remove and securely destroy such communications equipment and services in our networks in the western United States and in the US Virgin Islands, however, in December 2024, this program was fully funded for an increased allocation to the Company of an aggregate amount of approximately $517 million. The Replace and Remove Program requires each of our participating subsidiaries to complete the project no later than a specified deadline, which was recently extended to the second quarter of 2026.

Current wording

communications equipment and services in their networks that has been deemed to pose a national security risk. Pursuant to the Replace and Remove Program, our eligible subsidiaries were initially allocated up to approximately $207 million to replace, remove and securely destroy such communications equipment and services in our networks in the western United States and in the US Virgin Islands; however, in December 2024, this program was fully funded for an increased allocation to the Company of an aggregate amount of approximately $517 million. The Replace and Remove Program requires each of our participating subsidiaries to complete the project no later than a specified deadline, which was recently extended to the second quarter of 2026.

Previous wording

We have incurred total expenditures of $200.5 million related to this project, of which $32.1 million were incurred in 2025. Of these total expenditures, $167.8 million were classified as capital.

Current wording

We have incurred total expenditures of $213.7 million related to this project, of which $45.3 million were incurred in 2025. Of these total expenditures, $177.4 million were classified as capital.

Previous wording

At June 30, 2025, $17.0 million of capital expenditures were accrued and unpaid under the Replace and Remove Program. We expect to be reimbursed, within the next twelve months, for all amounts spent to date. During the six months ended June 30, 2025, we received $37.0 million of reimbursement under the program, of which $5.1 million was classified as operating cash inflows and $31.9 million was classified as investing cash inflows in our statement of cash flows.

Current wording

At September 30, 2025, $11.0 million of capital expenditures were accrued and unpaid under the Replace and Remove Program. We expect to be reimbursed, within the next twelve months, for all amounts spent to date. During the nine months ended September 30, 2025, we received $57.7 million of reimbursement under the program, of which $9.1 million was classified as operating cash inflows and $48.6 million was classified as investing cash inflows in our statement of cash flows.

Previous wording

Through June 30, 2025, the Company has the following two reportable and operating segments: (i) International Telecom and (ii) US Telecom.

Current wording

Through September 30, 2025, the Company had the following two reportable and operating segments: (i) International Telecom and (ii) US Telecom.

Previous wording

Operating expenses within our International Telecom segment increased by $15.7 million, or 24.9%, to $78.7 million from $63.0 million for the three months ended June 30, 2025 and 2024, respectively. Operating expenses for the three months ended June 30, 2024 included a $15.8 million gain on the disposition of long-lived assets, primarily real estate. Operating expenses for the three months ended June 30, 2025 were reduced by the result of certain cost savings initiatives, including reorganization and reductions in force that were implemented in current and previous periods partially offset by $1.4 million of restructuring and reorganization expenses that were incurred during the current period.

Current wording

Operating expenses within our International Telecom segment decreased by $4.3 million, or 5.3%, to $77.1 million from $81.4 million for the three months ended September 30, 2025 and 2024, respectively. Operating expenses for the three months ended September 30, 2025 decreased through certain cost savings initiatives, including reorganization and reductions in force, that were implemented in current and previous periods.

Previous wording

As a result, our International Telecom segment’s operating income decreased $16.2 million, or 50.0%, to $16.2 million from $32.4 million for the three months ended June 30, 2025 and 2024, respectively.

Current wording

As a result, our International Telecom segment’s operating income increased $5.2 million, or 40.3%, to $18.1 million from $12.9 million for the three months ended September 30, 2025 and 2024, respectively.

Previous wording

As a result of the above, our US Telecom segment’s operating income decreased to a loss of $5.5 million from income of $0.9 million for the three months ended June 30, 2025 and 2024, respectively.

Current wording

As a result of the above, our US Telecom segment’s operating income increased to income of $0.4 million from a loss of $44.3 million for the three months ended September 30, 2025 and 2024, respectively.

Previous wording

Mobility revenue decreased by $1.3 million, or 4.7%, to $26.3 million for the three months ended June 30, 2025 from $27.6 million for the three months ended June 30, 2024. The decrease in Mobility revenue, within our segments, consisted of the following:

Current wording

Mobility revenue decreased by $0.8 million, or 2.9%, to $26.7 million for the three months ended September 30, 2025 from $27.5 million for the three months ended September 30, 2024. The decrease in Mobility revenue, within our segments, consisted of the following:

Previous wording

Mobility revenue within our International Telecom may decrease as a result of increased competition and regulatory changes partially offset by our continued network upgrades, marketing efforts and conversion of our current subscriber base to higher margin prepaid and postpaid plans.

Current wording

Mobility revenue within our International Telecom may decrease as a result of increased competition and regulatory changes partially offset by our continued network upgrades, marketing efforts, and conversion of our subscriber base to higher margin prepaid and postpaid plans.

Previous wording

We do not expect to record Mobility revenue within our US Telecom segment in future periods due to the conclusion of our providing retail mobility services under our own brand name to retail customers.

Current wording

We do not expect to record Mobility revenue within our US Telecom segment in the future.

Previous wording

**Fixed Revenue.**Fixed revenue is primarily generated by broadband, voice, and video service revenues provided to retail and business customers over our wireline networks. Fixed revenue within our US Telecom segment also includes awards from the Connect America Fund Phase II program, the Enhanced Alternative Connect America Cost Model program, and the Alaska Universal Service Fund. In addition, and through early April 2024, Fixed revenue within the US Telecom segment also included revenue from the Emergency Connectivity Fund (ECF) and Affordable Care Program (ACP). Within our International Telecom segment, Fixed revenue includes funding under the FCC’s High-Cost Program in the US Virgin Islands.

Current wording

**Fixed Revenue.**Fixed revenue is primarily generated by broadband, voice, and video service revenues provided to retail and business customers over our wireline networks. Fixed revenue within our US Telecom segment also includes awards from the CAF II program, the E-ACAM program, and the Alaska USF . In addition, and through early April 2024, Fixed revenue within the US Telecom segment also included revenue from the Emergency Connectivity Fund (“ECF”) and Affordable Care Program (“ACP”). Within our International Telecom segment, Fixed revenue includes funding under the FCC’s High-Cost Program in the US Virgin Islands.

Previous wording

Fixed revenue within our International Telecom segment may increase due to the popularity of video and audio streaming, the demand for cloud services and smart home, business and city solutions to increase the demand for broadband and other data services from consumers, businesses and governments. However, such increases may be offset by a decrease in demand for our legacy services due to subscribers using alternative methods to receive video and audio content.

Current wording

Fixed revenue within our International Telecom segment may increase due to investments in the fixed network combined with the popularity of video and audio streaming, the demand for cloud services and smart home, business and city solutions to increase the demand for broadband and other data services from consumers, businesses and governments. However, such increases may be offset by a decrease in demand for our legacy services, as subscribers opt for alternative methods to receive video and audio content.

Previous wording

Within our US Telecom segment, Fixed revenue from business customers in Alaska and our western United States operations may increase as we further deploy fiber and fiber-fed broadband with capital investment and government grant funding, which will increase access for both consumers and businesses.

Current wording

Within our US Telecom segment, Fixed revenue from business customers in Alaska and our western United States operations may increase as we further deploy fiber and fiber-fed broadband with capital investment and government grant funding, which will improve access for both consumers and businesses.

Previous wording

Carrier Services Revenue. Carrier Services revenue is generated by both our International Telecom and US Telecom segments**.**Within our International Telecom segment, Carrier Services revenue includes international long-distance services, roaming revenues generated by other carriers’ customers roaming into our retail markets, transport services and access services provided to other telecommunications carriers. Within our US Telecom segment, Carrier Services revenue includes services provided under the FirstNet Agreement and Verizon Carrier Managed Services Agreement, wholesale roaming revenues, the provision of network switching services, tower lease revenue and other services provided to other carriers.

Current wording

Carrier Services Revenue. Carrier Services revenue is generated by both our International Telecom and US Telecom segments. Within our International Telecom segment, Carrier Services revenue includes international long-distance services, roaming revenues generated by other carriers’ customers roaming into our retail markets, transport services and access services provided to other telecommunications carriers. Within our US Telecom segment, Carrier Services revenue includes services provided under the FirstNet Agreement and Verizon CMS Agreement, wholesale roaming revenues, the provision of network switching services, tower lease revenue and other services provided to other carriers.

Previous wording

Within our International Telecom segment, Carrier Services revenue may increase if international travel increases.

Current wording

Within our International Telecom segment, Carrier Services revenue may increase if international travel in our markets grow.

Previous wording

Within our US Telecom segment, Carrier Services revenue may continue to decrease as a result of the impact of carrier service management contracts.

Current wording

Within our US Telecom segment, Carrier Services revenue may increase as a result of the impact of carrier service management contracts.

Previous wording

**Other Communications Services Revenue.**Other Communications Services revenue includes project-related revenue generated within both our International and US Telecom segments and ancillary services that the operations within our International Telecom segment provide to its retail subscribers. Other Communications Services revenue increased $0.8 million, or 57.1%, to $2.2 million from $1.4 million for the three months ended June 30, 2025 and 2024, respectively, as a result of an increase in revenue from ancillary services in our International Telecom segment partially offset by a reduction in certain non-recurring project-related revenue being recognized in our US Telecom segment.

Current wording

**Other Communications Services Revenue.**Other Communications Services revenue includes ancillary services provided by operations within our International Telecom segment, as well as project-related revenue generated within both our International and US Telecom segments. Other Communications Services revenue increased $1.1 million, or 78.6%, to $2.5 million from $1.4 million for the three months ended September 30, 2025 and 2024, respectively, as a result of an increase in revenue from ancillary services in our International Telecom segment partially offset by a reduction in certain non-recurring project-related revenue recognized in our US Telecom segment.

Previous wording

Construction revenue represents revenue generated within our US Telecom segment for the construction of network cell sites related to the FirstNet Agreement. During the three months ended June 30, 2025 and 2024, Construction revenue increased to $2.2 million from $0.8 million, respectively, primarily as a result of an increase in the number of sites completed during 2025 as compared to 2024. We expect to substantially complete the build related to the FirstNet Agreement by the end of 2025.

Current wording

Construction revenue represents revenue generated within our US Telecom segment for the construction of network cell sites related to the FirstNet Agreement. During the three months ended September 30, 2025 and 2024, Construction revenue increased to $1.1 million from $0.2 million, respectively, primarily as a result of an increase in the number of sites completed during 2025 as compared to 2024. We expect to substantially complete the build related to the FirstNet Agreement by the first half of 2026.

Previous wording

International Telecom. Managed Services revenue in our International Telecom segment decreased $0.4 million, or 23.5%, to $1.3 million from $1.7 million for the three months ended June 30, 2025 and 2024, respectively.

Current wording

International Telecom. Managed Services revenue in our International Telecom segment increased $0.2 million, or 16.7%, to $1.4 million from $1.2 million for the three months ended September 30, 2025 and 2024, respectively.

Previous wording

US Telecom. Within our US Telecom segment, Managed Services revenue decreased $0.5 million, or 14.7%, to $2.9 million from $3.4 million for the three months ended June 30, 2025 and 2024, respectively.

Current wording

US Telecom. Within our US Telecom segment, Managed Services revenue increased $0.3 million, or 11.5%, to $2.9 million from $2.6 million for the three months ended September 30, 2025 and 2024, respectively.

Previous wording

Cost of communication services and other decreased by $1.1 million, or 0.7%, to $155.4 million from $156.5 million for thesix months ended June 30, 2025 and 2024, respectively. The net decrease in cost of communication services and other, within our segments, consisted of the following:

Current wording

Cost of communication services and other decreased by $1.1 million, or 1.4%, to $77.9 million from $79.0 million for the three months ended September 30, 2025 and 2024, respectively. The net decrease in cost of communication services and other, within our segments, consisted of the following:

Previous wording

Cost of communication services in both our International and US Telecom segments may decrease as a result of the ongoing cost reduction initiatives that commenced in previous periods, but such decrease may be partially offset by future inflationary pressure.

Current wording

Cost of communication services in both our International and US Telecom segments may decrease as a result of the ongoing cost reduction initiatives, but such decrease may be partially offset by future inflationary pressure.

Previous wording

Cost of construction revenue. Cost of construction revenue includes the expenses incurred in connection with the construction of and the delivery to AT&T of cell sites in accordance with our FirstNet Agreement. During the three months ended June 30, 2025 and 2024, cost of construction revenue increased to $2.2 million from $0.8 million, respectively, as a result of an increase in the number of sites completed during 2025 as compared to 2024. We expect to substantially complete the build by the end of 2025.

Current wording

Cost of construction revenue. Cost of construction revenue includes the expenses incurred in connection with the construction of and the delivery to AT&T of cell sites in accordance with our FirstNet Agreement. During the three months ended September 30, 2025 and 2024, cost of construction revenue increased to $1.1 million from $0.2 million, respectively, as a result of an increase in the number of sites completed during 2025 as compared to 2024. We expect to substantially complete the build during the first half of 2026.

Previous wording

Selling, general and administrative expenses decreased by $1.5 million, or 2.6%, to $56.2 million from $57.7 million for the three months ended June 30, 2025 and 2024, respectively. The decreases in selling, general and administrative expenses occurred within all of our segments and were primarily related to certain cost containment initiatives, including reorganizations and reductions in force, that were implemented in the current and previous periods. The impact to each of our segments, consisted of the following:

Current wording

Selling, general and administrative expenses increased by $0.7 million, or 1.3%, to $54.3 million from $53.6 million for the three months ended September 30, 2025 and 2024, respectively. The net increase in selling, general and administrative expenses, within of our segments, was primarily related to increases in legal, regulatory and other professional fees, partially offset by the impact of certain cost containment initiatives, including reorganizations and reductions in force, that were implemented in the current and previous periods. The impact to each of our segments, consisted of the following:

Previous wording

Selling, general and administrative expenses in all our segments may continue to decrease as a result of the ongoing cost reduction initiatives that commenced in previous periods, but such decrease may be partially offset by future inflationary pressure.

Current wording

Selling, general and administrative expenses in all our segments may decrease as a result of the ongoing cost reduction initiatives that commenced in previous periods, but such decrease may be partially offset by future inflationary pressure.

Previous wording

Stock-based compensation for the three months ended June 30, 2025 and 2024 was $2.7 million and $2.8 million, respectively.

Current wording

Stock-based compensation for the three months ended September 30, 2025 and 2024 was $2.0 million and $1.8 million, respectively.

Previous wording

We incurred $0.2 million and a nominal amount of transaction-related charges during the three months ended June 30, 2025 and 2024, respectively.

Current wording

We incurred $0.4 million of transaction-related charges during the three months ended September 30, 2025.

Previous wording

**Restructuring and reorganization expenses.**In our efforts to advance our cost management actions to drive higher operating efficiencies and margins, we incurred certain restructuring and reorganization expenses, primarily reductions in force, totaling $2.9 million, $2.5 million and $1.4 million within our International Telecom segment, US Telecom segment and Corporate and Other segment, respectively, during the six months ended June 30, 2025.

Current wording

**Restructuring and reorganization expenses.**In our efforts to advance our cost management actions to drive higher operating efficiencies and margins, we incurred certain restructuring and reorganization expenses, primarily related to reductions in force, totaling $0.6 million, $0.3 million and $1.1 million within our International Telecom segment, US Telecom segment and Corporate and Other segment, respectively, during the three months ended September 30, 2025.

Previous wording

Depreciation and amortization expenses decreased by $1.7 million, or 4.8%, to $33.9 million from $35.6 million for the three months ended June 30, 2025 and 2024, respectively. The net decrease in depreciation and amortization expenses, within our segments, consisted primarily of the following:

Current wording

Depreciation and amortization expenses decreased by $4.4 million, or 11.8%, to $32.9 million from $37.3 million for the three months ended September 30, 2025 and 2024, respectively. The net decrease in depreciation and amortization expenses, within our segments, consisted primarily of the following:

Previous wording

We expect depreciation and amortization expenses to decrease as a result of an expected decline in capital expenditures and as a result of some of our previously acquired assets becoming fully depreciated.

Current wording

We expect depreciation and amortization expenses to decrease as a result of the decline in capital expenditures and as a result of some of our previously acquired assets becoming fully depreciated.

Previous wording

Amortization of intangibles from acquisitions decreased by $0.7 million to $1.2 million from $1.9 million for the three months ended June 30, 2025 and 2024, respectively.

Current wording

Amortization of intangibles from acquisitions decreased by $0.8 million to $1.2 million from $2.0 million for the three months ended September 30, 2025 and 2024, respectively.

Previous wording

(Gain) loss on disposition of assets and transfers. During the three months ended June 30, 2025, we recorded a net loss on the disposition of assets of $2.7 million. Of this net loss, $0.1 million and $2.6 million were recognized within our International and US Telecom segments, respectively.

Current wording

(Gain) loss on disposition of assets, transfers and contingent consideration. During the three months ended September 30, 2025, we recorded a net loss on the disposition of assets of $1.6 million primarily in connection with the revaluation of contingent consideration relating to a prior year’s acquisition within the US Telecom segment.

Previous wording

During the three months ended June 30, 2024, we recorded a gain on the disposition of assets of $15.9 million primarily relating to the sale of real estate in our International Telecom segment.

Current wording

During the three months ended September 30, 2024, we recorded a loss on the disposition and transfer of assets of $1.5 million primarily relating to the disposal of certain assets within our US Telecom segment.

Previous wording

Interest income. Interest income represents interest earned on our cash, cash equivalents, restricted cash and short-term investment balances. Interest income was $0.1 million for the three months ended June 30, 2025 and 2024.

Current wording

Interest income. Interest income represents interest earned on our cash, cash equivalents, restricted cash and short-term investment balances. Interest income was $0.2 million for both the three months ended September 30, 2025 and 2024.