ATN International, Inc.
For the period ended Jun 30, 2026. Filed Aug 10, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 10, 2026
ATNI$28.02+5.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-11.
0001104659-26-058667
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-10.
0001104659-26-093257
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 199 previous paragraphs and 236 current paragraphs.
104 unchanged; 74 reworded; 42 added; 13 removed; 8 previous and 16 current paragraphs rearranged.
Tables are not compared: 40 previous and 58 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (42)
Current report
At the Initial Closing, Everest paid us $267.7 million in aggregate cash consideration (the “Initial Closing Cash Consideration”), of which $153.4 million is attributable to the Assigned Sites and $114.3 million is attributable to the Managed Sites. Of the Initial Closing Cash Consideration, $255.7 million was recorded as sale consideration and $12.0 million of such amount was deferred in advanced payments and deposits on our balance sheet as it is subject to our completion of certain conditions related to the Managed Sites. We can receive up to an additional $29.6 million of the Aggregate Consideration at Subsequent Closings for the Deferred Sites when and if closing conditions are satisfied or otherwise waived.
Current report
Selling, general and administrative expenses decreased by $0.9 million, or 1.6%, to $55.3 million from $56.2 million for the three months ended June 30, 2026 and 2025, respectively. The net decrease in selling, general and administrative expenses, within our segments, consisted of the following:
Current report
Stock-based compensation decreased by $1.3 million to $1.4 million from $2.7 million for the three months ended June 30, 2026 and 2025, respectively, as a result of the impact of certain reductions in force during the three months ended June 30, 2026.
Current report
(Gain) loss on disposition of assets, transfers and contingent consideration. During the three months ended June 30, 2026, we recorded a net gain on the disposition of assets and transfers of $230.9 million. Of this net gain, $229.9 million was recognized within our US Telecom segment and was primarily related to the gain on the Tower Portfolio Transaction, while the remaining $1.0 million gain was recorded in the International Telecom segment as a result of the sale of certain real estate.
Current report
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 report
Interest expense in future periods may decline further as a result of a full period’s impact of the reduction in our debt balances.
Current report
Other expense. For the three months ended June 30, 2026 and 2025, other expense was $0.7 million and $0.6 million, respectively of expense primarily related to losses on foreign currency transactions.
Current report
The Company recorded an income tax benefit of $3.8 million in relation to a pretax loss of $13.0 million for the three months ended June 30, 2025. The effective tax rate for the three months ended June 30, 2025 was primarily impacted by the following items: (i) the mix of income generated among the jurisdictions in which we operate, (ii) net expense related to valuation allowances placed on certain deferred tax assets that are not expected to be realized based on the weight of positive and negative evidence, and (iii) discrete items including a $4.9 million benefit from the reversal of an unrecognized tax position due to a statute of limitations expiration, a $0.6 million expense for interest on prior years uncertain tax positions, and a $1.0 million benefit from the release of a capital loss carryover valuation allowance based on the Company’s conclusion that it was more likely than not that this deferred tax asset would be realized in the future.
Current report
International Telecom. Revenues within our International Telecom segment increased $2.9 million, or 1.5%, to $192.3 million from $189.4 million for the six months ended June 30, 2026 and 2025, respectively, primarily due to a $3.3 million increase in revenues from ancillary services and a $1.1 million increase in Mobility Services revenues as a result of an increase in subscribers, rates we charge our subscribers and equipment revenue within certain markets in this segment. These increases were partially offset by a $2.0 million reduction in Fixed Services revenue due to a decline in the FCC’s High-Cost Support Program in the US Virgin Islands, which was terminated on December 31, 2025.
Current report
As a result, our International Telecom segment’s operating income increased $10.1 million, or 32.6%, to $41.1 million from $31.0 million for the six months ended June 30, 2026 and 2025, respectively.
Current report
US Telecom. Revenue within our US Telecom segment increased by $3.3 million, or 1.9%, to $174.5 million from $171.2 million for the six months ended June 30, 2026 and 2025, respectively, primarily as a result of a $5.7 million increase in Carrier Services revenue due to the transition of legacy roaming arrangements to carrier service management contracts and a $1.4 million increase in Fixed Services revenue as a result of increased revenue from certain government support programs in Alaska. Partially offsetting this increase was a decline in construction revenue of $2.4 million as a result of a decrease in the number of sites completed in 2026 as compared to 2025.
Current report
Operating expenses within our US Telecom segment decreased $230.7 million to $(51.5) million from $179.2 million for the six months ended June 30, 2026 and 2025, respectively. This decrease was primarily related to the $229.9 million gain recorded in connection with the Tower Portfolio Transaction, a reduction in the cost of construction revenue and the impact of certain cost savings initiatives, including the reorganizations and reductions in force, that were implemented in the current and previous periods. These decreases were partially offset by increases in this segment’s leasing costs, as a result of the impact of the Tower Portfolio Transactions, as well as an increase in transport costs.
Current report
As a result of the above, our US Telecom segment’s operating income (loss) increased to income of $225.9 million from a loss of $7.9 million for the six months ended June 30, 2026 and 2025, respectively.
Current report
Communications Services Revenue
Current report
**Mobility Revenue.**Mobility Services revenue increased by $1.1 million, or 2.1%, to $53.5 million for the six months ended June 30, 2026 from $52.4 million for the six months ended June 30, 2025 as result of an increase in subscribers, rates we charge our subscribers and equipment revenue within certain markets in this segment.
Current report
**Fixed Revenue.**Fixed Services revenue decreased by $0.5 million, or 0.2%, to $225.6 million from $226.1 million for the six months ended June 30, 2026 and 2025, respectively. This net decrease primarily pertained to a decrease in Fixed Services revenue from consumer customers and consisted of the following:
Current report
Support Program in the US Virgin Islands being terminated on December 31, 2025.
Current report
Carrier Services Revenue. Carrier Services revenue increased by $6.0 million, or 9.0%, to $72.4 million from $66.4 million for the six months ended June 30, 2026 and 2025, respectively. The increase within our segments consisted of the following:
Current report
**Other Communications Services Revenue.**Other Communications Services revenue increased $3.1 million, or 77.5%, to $7.1 million from $4.0 million for the six months ended June 30, 2026 and 2025, respectively, as a result of an increase in revenue from ancillary services in our International Telecom segment.
Current report
Construction Revenue. During the six months ended June 30, 2026 and 2025, Construction Revenue decreased to $0.8 million from $3.3 million, respectively, as a result of a decrease in the number of sites completed during 2026 as compared to 2025.
Current report
Other Revenue
Current report
**Managed Services Revenue.**Managed Services revenue decreased by $1.1 million, or 13.1%, to $7.3 million from $8.4 million for the six months ended June 30, 2026 and 2025, respectively. The net decrease within our segments consisted of the following:
Current report
Operating Expenses
Current report
**Cost of communication services and other.**Cost of communication services and other increased by $0.5 million, or 0.3%, to $155.9 million from $155.4 million for thesix months ended June 30, 2026 and 2025, respectively. The net increase in cost of communication services and other, within our segments, consisted of the following:
Current report
Cost of construction revenue. During the six months ended June 30, 2026 and 2025, cost of construction revenue decreased to $1.0 million from $3.7 million, respectively, as a result of a decrease in the number of sites completed during 2026 as compared to 2025.
Current report
**Stock-based compensation.**Stock-based compensation decreased to $3.3 million from $4.6 million for the six months ended June 30, 2026 and 2025, respectively, as a result of the impact of certain reductions in force during the six months ended June 30, 2026.
Current report
Transaction-related charges. We incurred $7.2 million and $1.6 million of transaction-related charges during the six months ended June 30, 2026 and 2025, respectively. The increase was the result of the timing of our transaction-related charges and was primarily the result of costs incurred in connection with the Tower Portfolio Transaction during the six months ended June 30, 2026.
Current report
We incurred restructuring and reorganization expenses of $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 report
Depreciation and amortization expenses. Depreciation and amortization expenses decreased by $7.1 million, or 10.4%, to $61.3 million from $68.4 million for the six months ended June 30, 2026 and 2025, respectively. The decrease in depreciation and amortization expenses, within our segments, consisted primarily of the following:
Current report
Amortization of intangibles from acquisitions.* *Amortization of intangibles from acquisitions decreased by $1.5 million to $1.0 million from $2.5 million for the six months ended June 30, 2026 and 2025, respectively, as a result of certain assets being fully amortized in previous periods.
Current report
(Gain) loss on disposition of assets, transfers and contingent consideration. During the six months ended June 30, 2026, we recorded a net gain on the disposition of assets and transfers of $230.2 million. Of this net gain, $229.5 million was recognized within our US Telecom segment and was primarily related to the $229.9 million gain on the Tower Portfolio Transaction, while the remaining $0.7 million gain was recorded in the International Telecom segment primarily as a result of the sale of certain real estate.
Current report
During the six months ended June 30, 2025, we recorded a net loss on the disposition of assets of $3.4 million. Of this net loss, $0.4 million and $3.0 million were recognized within our International and US Telecom segments, respectively.
Current report
Interest income. Interest income was $0.6 million and $0.4 million for the six months ended June 30, 2026 and 2025, respectively. Such increase was the result of an increase in our cash and cash equivalents due to the proceeds received from the Tower Portfolio Transaction. In addition, such proceeds are being invested in higher yielding cash and cash equivalent investments.
Current report
Interest expense. Interest expense decreased to $21.3 million from $24.8 million for thesix months ended June 30, 2026 and 2025, respectively. We used a portion of the proceeds from the Tower Portfolio Transaction to reduce our outstanding debt balances, which in turn reduced our interest expense during the six months ended June 30, 2026. In addition, a decline in interest rates, which were impacted by certain interest rate swap agreements, also reduced such expense during the six months ended June 30, 2026.
Current report
We recorded an income tax expense of $43.7 million in relation to a pretax income of $226.7 million for the six months ended June 30, 2026. The effective tax rate for the six months ended June 30, 2026 was primarily impacted by the following items: (i) the mix of income generated among the jurisdictions in which we operate, (ii) the exclusion of losses in Alaska and the US Virgin Islands due to valuation allowance positions placed on certain deferred tax assets that are not expected to be realized based on the weight of positive and negative evidence, and (iii) discrete items including a $4.6 million net benefit from the reversal of an unrecognized tax position due to a statute of limitations expiration, net of interest on prior years uncertain tax positions, a $0.9 million expense associated with stock option shortfalls, and a $0.8 million expense associated with a return to provision adjustment related to tax returns filed in Guyana.
Current report
**Net income (loss) attributable to ATN International, Inc. stockholders.**Net income (loss) attributable to ATN International, Inc. stockholders was income of $164.5 million for the six months ended June 30, 2026 as compared to a loss of $16.0 million for the six months ended June 30, 2025.
Current report
Cash provided by (used in) investing activities. During the six months ended June 30, 2026, investing activities provided $228.6 million of cash as compared to the six months ended June 30, 2025 when we used $45.6 million of cash for investing activities.
Current report
This $274.2 change in cash provided by (used in) investing activities was primarily related to the Tower Portfolio Transaction, which generated $267.7 million in sales proceeds. In addition, we recorded a reduction in capital expenditures and reimbursable amounts disbursed for government capital programs of $3.8 million and $18.9 million, respectively. Proceeds from the sale of other assets also increased by $3.6 million. Offsetting these increases was a reduction in the amount we were reimbursed for government capital programs of $18.9 million.
Current report
*Cash provided by (used in) financing activities.*During the six months ended June 30, 2026, we used $67.4 million of cash for financing activities as compared to the six months ended June 30, 2025 when our financing activities provided $9.9 million of cash.
Current report
This $77.3 million change in cash provided by (used in) financing activities was primarily related to the repayment of $76.8 million of our debt, funded by the proceeds from the Tower Portfolio Transaction. In addition, we increased the cash used to pay dividends to our stockholders by $1.1 million and to repurchase our common stock from employees to satisfy certain tax withholding obligations of $1.1 million.
Showing the first 40 of 42 passages. Open the source sections for the rest.
Removed paragraphs (13)
Previous report
The Tower Portfolio Transaction may be completed in one or more closings. The Transaction Agreement sets forth certain conditions that must be satisfied prior to the conveyance of tower sites at a closing. During the period between signing and the initial closing, the parties will determine which tower sites within the Tower Portfolio have satisfied such conditions and are ready to be conveyed at the initial closing, which sites have not yet satisfied all such conditions but for which Everest is prepared to assume management pending satisfaction of such conditions, and which sites are not yet constructed or are subject to other conditions that will continue to be managed by us until such conditions are satisfied.
Previous report
The Transaction Agreement contains customary representations, warranties, covenants, and indemnities by each of the parties, and requires the receipt of certain consents and approvals prior to a closing. The waiting period required under the Hart-Scott Rodino Act of 1976 with respect to the Tower Portfolio Transaction expired in early March 2026. If the Transaction Agreement is terminated under certain circumstances that are not our fault, we will receive a termination fee equal to approximately $14.9 million.
Previous report
We continue to expect the initial closing of the Tower Portfolio Transaction to occur in the second quarter of 2026 generating gross proceeds of approximately $250 million to $270 million. Subsequent closings, totaling approximately $27 million to $47 million, are anticipated to occur over the twelve months following the initial closing, subject to the achievement of specified construction and operational milestones at designated sites within the Tower Portfolio.
Previous report
We now currently anticipate that approximately 45-55% of the amount of proceeds to be received at the initial closing will be subject to post-closing resolution, due to delays in obtaining ground lease assigning consents from government and tribal agencies, as well as other conditions being satisfied with respect to such sites.
Previous report
date of this Report, the FCC had not yet acted on this request and, as a result, the Company is currently not receiving this support. If the FCC grants our request, it may or may not extend our support on a retroactive basis from December 31, 2025; and
Previous report
(1) Corporate and other items refer to corporate overhead costs and consolidating adjustments and have been presented for reconciliation purposes to consolidated amounts.
Previous report
Construction Revenue
Previous report
Stock-based compensation for both the three months ended March 31, 2026 and 2025 was $1.9 million.
Previous report
Loss on disposition of assets, transfers and contingent consideration. During both the three months ended March 31, 2026 and 2025, we recorded a net loss on the disposition of assets and transfers of $0.8 million. Of this net loss, $0.4 million was recognized within both our International and US Telecom segments for the three-month period ended March 31, 2026, and $0.3 million and $0.5 million was recognized within our International and US Telecom segments, respectively, for the three-month period ended March 31, 2025
Previous report
Interest Expense. Interest expense in future periods may decline upon the completion of the Tower Portfolio Transaction if the proceeds from that transaction are used to reduce our debt balances.
Previous report
income from an allocation of $1.5 million of income for the three months ended March 31, 2026 and 2025, respectively. The decrease was the result of increased profitability at certain less than wholly owned subsidiaries.
Previous report
*Cash used in investing activities.*Cash used in investing activities decreased by $4.3 million to $20.8 million from $25.1 million for the three months ended March 31, 2026 and 2025, respectively. This year-over-year decrease in cash used in investing activities was primarily the result of a decrease in cash used for reimbursable capital expenditures of $8.9 million net of a $4.0 million decrease in cash inflows related to the reimbursement of capital expenditures under certain government programs. This decrease was partially offset by an increase in non-reimbursable capital expenditures of $0.2 million.
Previous report
*Cash used in financing activities.*Cash used by financing activities decreased to $2.7 million from $2.8 million for the three months ended March 31, 2026 and 2025, respectively. The decrease in cash used by financing activities of $0.1 million was primarily the result of a $1.1 million increase in cash used to repurchase our common stock from employees to satisfy certain tax withholding obligations and a $0.6 million increase in cash used for dividends paid to our stockholders. Such increases were offset by an increase in cash provided by funds payable and due to customers of $1.7 million.
Reworded paragraphs (74)
Previous wording
On February 11, 2026, through certain Commnet subsidiaries, we entered into a Purchase and Sale Agreement (the “Transaction Agreement”) with EIP Holdings IV, LLC, an affiliate of Everest Infrastructure Partners, Inc. (“Everest”), to sell approximately 214 tower portfolio sites (representing the substantial majority of our Commnet tower portfolio and operations (the “Tower Portfolio”) to Everest for up to $297 million in cash consideration, subject to certain adjustments and prorations (the “Tower Portfolio Transaction”).
Current wording
As previously disclosed, on February 11, 2026, through certain Commnet subsidiaries, we entered into a Purchase and Sale Agreement (the “Transaction Agreement”) with EIP Holdings IV, LLC, an affiliate of Everest Infrastructure Partners, Inc. (“Everest”), to sell approximately 214 tower portfolio sites (representing the substantial majority of our Commnet tower portfolio and operations, the “Tower Portfolio”) to Everest (the “Tower Portfolio Transaction”) for up to $297 million in cash consideration, subject to certain adjustments and prorations (the “Aggregate Consideration”).
Previous wording
At the initial closing, we will enter into, among other ancillary agreements, (i) a management agreement for
Current wording
On June 2, 2026 (the “Initial Closing Date”), we completed the initial closing of the Tower Portfolio Transaction (the “Initial Closing”), and we currently anticipate that we will complete the Tower Portfolio Transaction in one or more Subsequent Closings (as defined below) over the next eleven months. The Transaction Agreement sets forth certain conditions that must be satisfied prior to the conveyance of tower sites at a closing. In connection with the Initial Closing, we and Everest entered into an amendment to the Transaction Agreement to waive certain conditions to the Initial Closing and restate (i) the schedule of tower sites that were conveyed to Everest on the Initial Closing Date (the “Assigned Sites”), (ii) the list of tower sites that will be managed by Everest but still subject to certain managed site conditions prior to conveyance (the “Managed Sites”), and (iii)the list of tower sites that are still subject to certain managed site conditions and consideration has not been paid to date (the “Deferred Sites”). Everest will manage the Managed Sites until the conditions to their conveyance are satisfied, and such Managed Sites are transferred to Everest at one or more subsequent closings (each, a “Subsequent Closing”). At any Subsequent Closing at which one or more Deferred Sites are transferred, Everest will pay a portion of the Aggregate Consideration that is attributable to each Deferred Site. At the Initial Closing, we and Everest entered into, among other ancillary agreements, (i) the management agreement for the Managed Sites, (ii) master lease agreements, pursuant to which the Sale Site Subsidiary (as defined in the Transaction Agreement) will lease to the applicable Commnet Party the requisite ground, tower, or other space of the Assigned Sites (the “Leaseback”) for our continued use, and (iii) a preferred backhaul agreement whereby Commnet and/or one or more of our affiliates will become the preferred backhaul provider for Everest with respect to the Assigned Sites.
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. 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 March 31, 2026, we were awarded $100.9 million of construction grants that are pending completion.
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. Once these projects are constructed, we are obligated to provide service to the participants. We
Previous wording
During the three months ended March 31, 2026, we disbursed capital expenditures of $5.1 million under these programs and received reimbursement of $5.1 million. These cash flows are classified as investing activities in our statement of cash flows.
Current wording
During the six months ended June 30, 2026, we disbursed capital expenditures of $9.5 million under these programs and received reimbursement of $8.1 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 US 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 March 31, 2026. Through March 31, 2026, we received $37.7 million of funding under these programs and spent $40.4 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 US 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, 2026. Through June 30, 2026, we received $41.8 million of funding under these programs and spent $45.0 million on construction obligations. These amounts are recorded as operating cash flows in the Company’s statement of cash flows.
Previous wording
As of March 31, 2026, we had incurred total expenditures of $233.1 million related to this project, of which $8.4 million were incurred in 2026. Of these total expenditures, $192.2 million was classified as capital.
Current wording
As of June 30, 2026, we had incurred total expenditures of $240.0 million related to this project, of which $15.4 million were incurred in 2026. Of these total expenditures, $198.4 million was classified as capital.
Previous wording
As of March 31, 2026, $14.5 million of capital expenditures was accrued and unpaid under the Replace and Remove Program. During the three months ended March 31, 2026, we received $9.3 million of reimbursement under the program, of which $1.1 million was classified as operating cash inflows and $8.2 million was classified as investing cash inflows in our statement of cash flows. During the three months ended March 31, 2026, we determined that reimbursement was not probable for $9.0 million of capital expenditures incurred under the Replace and Remove Program. As a result, we transferred $7.0 million to assets held for sale and the remaining $2.0 million to fixed assets. Except for this $9.0 million, the Company expects to be reimbursed, within the next twelve months, for all amounts spent.
Current wording
As of June 30, 2026, $12.5 million of capital expenditures was accrued and unpaid under the Replace and Remove Program. During the six months ended June 30, 2026, we received $15.9 million of reimbursement under the program, of which $1.6 million was classified as operating cash inflows and $14.3 million was classified as investing cash inflows in our statement of cash flows. During the six months ended June 30, 2026, we determined that reimbursement was not probable for $9.0 million of capital expenditures incurred under the Replace and Remove Program. As a result, we transferred $9.0 million to fixed assets. Except for this $9.0 million, the Company expects to be reimbursed, within the next twelve months, for all amounts spent.
Previous wording
International Telecom. Revenues within our International Telecom segment increased $1.6 million, or 1.7%, to $96.1 million from $94.5 million for the three months ended March 31, 2026 and 2025, respectively, primarily due to an increase in revenues from ancillary services, increases in Mobility Services revenues as a result of an increase in subscribers and increases in Carrier Services revenue as a result of increased roaming. These increases were partially offset by a reduction in revenue received from the FCC’s High-Cost Support Program in the US Virgin Islands, which was terminated on December 31, 2025.
Current wording
International Telecom. Revenues within our International Telecom segment increased $1.3 million, or 1.4%, to $96.2 million from $94.9 million for the three months ended June 30, 2026 and 2025, respectively, primarily due to a $1.6 million increase in revenues from ancillary services and a $0.8 million increase in Mobility Services revenues as a result of an increase in subscribers, rates we charge our subscribers and equipment revenue within certain markets in this segment. These increases were partially offset by a $1.2 million reduction in Fixed Services revenue due to a decline in the FCC’s High-Cost Support Program in the US Virgin Islands which was terminated on December 31, 2025.
Previous wording
Operating expenses within our International Telecom segment decreased by $2.9 million, or 3.6%, to $76.8 million from $79.7 million for the three months ended March 31, 2026 and 2025, respectively. The net decrease was primarily the result of certain cost savings initiatives, including reorganizations and reductions in force, that were implemented in the current and previous periods as well as a decrease in depreciation and amortization expenses as a result of a reduction in capital expenditures in recent periods.
Current wording
Operating expenses within our International Telecom segment decreased by $4.4 million, or 5.6%, to $74.3 million from $78.7 million for the three months ended June 30, 2026 and 2025, respectively. The net decrease was primarily the result of certain cost savings initiatives, including reorganizations and reductions in force, that were implemented in the current and previous periods as well as a decrease in depreciation and amortization expenses as a result of a reduction in capital expenditures in recent periods.
Previous wording
As a result, our International Telecom segment’s operating income increased $4.4 million, or 29.7%, to $19.2 million from $14.8 million for the three months ended March 31, 2026 and 2025, respectively.
Current wording
As a result, our International Telecom segment’s operating income increased $5.7 million, or 35.2%, to $21.9 million from $16.2 million for the three months ended June 30, 2026 and 2025, respectively.
Previous wording
US Telecom. Revenue within our US Telecom segment increased by $1.4 million, or 1.7%, to $86.2 million from $84.8 million for the three months ended March 31, 2026 and 2025, respectively, primarily as a result of a $2.7 million increase in Carrier Services revenue due to the transition of legacy roaming arrangements to carrier service management contracts. Partially offsetting this increase was a decline in the construction revenue of $1.0 million as a result of a decrease in the number of sites completed in 2026 as compared to 2025.
Current wording
US Telecom. Revenue within our US Telecom segment increased by $1.9 million, or 2.2%, to $88.3 million from $86.4 million for the three months ended June 30, 2026 and 2025, respectively, primarily as a result of a $3.0 million increase in Carrier Services revenue due to the transition of legacy roaming arrangements to carrier service management contracts and a $1.0 million increase in Fixed Services revenue as a result of increased revenue from certain government support programs in Alaska. Partially offsetting this increase was a decline in construction revenue of $2.2 million as a result of a decrease in the number of sites completed in 2026 as compared to 2025.
Previous wording
Operating expenses within our US Telecom segment decreased $2.8 million, or 3.2%, to $84.4 million from $87.2 million for the three months ended March 31, 2026 and 2025, respectively, as a result of the impact of certain cost savings initiatives, including the reorganizations and reductions in force, that were implemented in the current and previous periods.
Current wording
Operating expenses within our US Telecom segment decreased $227.8 million to $(135.9) million from $91.9 million for the three months ended June 30, 2026 and 2025, respectively. This decrease was primarily related to the $229.9 million gain recorded in connection with the Tower Portfolio Transaction, a reduction in the cost of construction revenue and the impact of certain cost savings initiatives, including the reorganizations and reductions in force, that were implemented in the current and previous periods. These decreases were partially offset by increases in this segment’s leasing costs, as a result of the impact of the Tower Portfolio Transactions, as well as an increase in transport costs.
Previous wording
As a result of the above, our US Telecom segment’s operating income increased to income of $1.7 million from a loss of $2.4 million for the three months ended March 31, 2026 and 2025, respectively.
Current wording
As a result of the above, our US Telecom segment’s operating income (loss) increased to income of $224.2 million from a loss of $5.5 million for the three months ended June 30, 2026 and 2025, respectively.
Previous wording
Mobility Services revenue increased by $0.3 million, or 1.1%, to $26.4 million for the three months ended March 31, 2026 from $26.1 million for the three months ended March 31, 2025 as result of an increase in subscribers.
Current wording
Mobility Services revenue increased by $0.8 million, or 3.0%, to $27.1 million for the three months ended June 30, 2026 from $26.3 million for the three months ended June 30, 2025 as result of an increase in subscribers, rates we charge our subscribers and equipment revenue within certain markets in this segment.
Previous wording
**Fixed Services Revenue.**Fixed Services revenue is primarily generated by broadband, voice, and video service revenues provided to retail and business customers over our wireline networks. Fixed Services revenue within our US Telecom segment also includes awards from the CAF II program, the E-ACAM program, and the Alaska USF. Within our International Telecom segment, Fixed Services revenue includes funding, through December 31, 2025, under the FCC’s High-Cost Program in the US Virgin Islands.
Current wording
**Fixed Services Revenue.**Fixed Services revenue is primarily generated by broadband, voice, and video service revenues provided to retail and business customers over our wireline networks. Fixed Services revenue within our US Telecom segment also includes awards from the CAF II program, the E-ACAM program, and the Alaska USF. Within our International Telecom segment, Fixed Services revenue included funding, through December 31, 2025, under the FCC’s High-Cost Program in the US Virgin Islands.
Previous wording
Fixed Services revenue decreased by $0.3 million, or 0.3%, to $112.7 million from $113.0 million for the three months ended March 31, 2026 and 2025, respectively. This decrease primarily pertained to a decrease in Fixed Services revenue from business customers and consisted of the following:
Current wording
Fixed Services revenue decreased by $0.2 million, or 0.2%, to $112.9 million from $113.1 million for the three months ended June 30, 2026 and 2025, respectively. This net decrease primarily pertained to a decrease in Fixed Services revenue from consumer customers and consisted of the following:
Previous wording
Fixed Services revenue within our International Telecom segment may continue to increase as we expect 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 Service Revenue in our International Telecom segment may continue to decrease as a result of a decrease in demand for our legacy services due to subscribers using alternative methods to receive video and audio content. However, such decrease may be offset by 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.
Previous wording
Carrier Services revenue increased by $3.0 million, or 9.1%, to $36.1 million from $33.1 million for the three months ended March 31, 2026 and 2025, respectively. The increase within our segments consisted of the following:
Current wording
Carrier Services revenue increased by $3.1 million, or 9.3%, to $36.3 million from $33.2 million for the three months ended June 30, 2026 and 2025, respectively. The increase within our segments consisted of the following:
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Within our US Telecom segment, Carrier Services revenue is expected to decline upon the completion of the Tower Portfolio Transaction.
Current wording
Within our US Telecom segment, Carrier Services revenue is expected to decline as a result of a full quarter’s impact of the Tower Portfolio Transaction.
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**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 $1.5 million, or 83.3%, to $3.3 million from $1.8 million for the three months ended March 31, 2026 and 2025, respectively, as a result of an increase in revenue from ancillary services in our International Telecom segment.
Current 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 $1.6 million, or 72.7%, to $3.8 million from $2.2 million for the three months ended June 30, 2026 and 2025, respectively, as a result of an increase in revenue from ancillary services in our International 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. As of December 31, 2025, we had substantially completed the build of AT&T’s network under the FirstNet Agreement. As a result, we did not record any construction revenue during the three months ended March 31, 2026. During the three months ended March 31, 2025, we recorded construction revenue of $1.0 million.
Current wording
Construction Revenue.** **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, 2026 and 2025, Construction Revenue decreased to $0.8 million from $2.2 million, respectively, as a result of a decrease in the number of sites completed during 2026 as compared to 2025.
Previous wording
Managed Services revenue decreased by $0.4 million, or 9.5%, to $3.8 million from $4.2 million for the three months ended March 31, 2026 and 2025, respectively. The net decrease consisted of a decrease within our US Telecom segment that was partially offset by an increase within our International Telcom segment, as detailed below:
Current wording
Managed Services revenue decreased by $0.6 million, or 14.3%, to $3.6 million from $4.2 million for the three months ended June 30, 2026 and 2025, respectively. The net decrease within our segments consisted of the following:
Previous wording
Cost of communication services and other decreased by $0.8 million, or 1.0%, to $77.4 million from $78.2 million for the three months ended March 31, 2026 and 2025, 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 increased by $1.3 million, or 1.7%, to $78.5 million from $77.2 million for the three months ended June 30, 2026 and 2025, respectively. The net increase in cost of communication services and other, within our segments, consisted of the following:
Previous wording
We expect that the cost of communication services, within our US Telecom segment, will increase upon the completion of the Tower Portfolio Transaction and may also increase as a result of future inflationary pressure. However, the impact of our cost reduction initiatives, that commenced in previous periods, may partially offset those increases.
Current wording
We expect that the cost of communication services, within our US Telecom segment, will increase as a result of a full quarter’s impact of the Tower Portfolio Transaction and may also increase as a result of future inflationary pressure. However, the impact of our cost reduction initiatives, that commenced in previous periods, may partially offset those increases.
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. As of December 31, 2025, we had substantially completed the build of AT&T’s network under the FirstNet Agreement. As a result, we did not record any cost of construction revenue during the three months ended March 31, 2026. During the three months ended March 31, 2025, we recorded cost of construction revenue of $1.5 million.
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 June 30, 2026 and 2025, cost of construction revenue decreased to $1.0 million from $2.2 million, respectively, as a result of a decrease in the number of sites completed during 2026 as compared to 2025.
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We incurred $0.8 million and $1.4 million of transaction-related charges during the three months ended March 31, 2026 and 2025, respectively. Such decrease was the result of the timing of our transaction-related charges.
Current wording
We incurred $6.3 million and $0.2 million of transaction-related charges during the three months ended June 30, 2026 and 2025, respectively. The increase was primarily the result of costs incurred in connection with the Tower Portfolio Transaction during the three months ended June 30, 2026.
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 $0.7 million, $0.2 million and $0.8 million within our International Telecom segment, US Telecom segment and Corporate and Other segment, respectively, during the three months ended March 31, 2026.
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 reductions in force, totaling $0.3 million, $0.6 million and $1.7 million within our International Telecom segment, US Telecom segment and Corporate and Other segment, respectively, during the three months ended June 30, 2026.
Previous wording
We incurred restructuring and reorganization expenses of $1.5 million, $0.1 million and $0.2 million within our International Telecom segment, US Telecom segment and Corporate and Other segment, respectively, during the three months ended March 31, 2025.
Current wording
We incurred restructuring and reorganization expenses of $1.4 million, $2.4 million and $1.2 million within our International Telecom segment, US Telecom segment and Corporate and Other segment, respectively, during the three months ended June 30, 2025.
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Increase and decreases in restructuring and reorganization expenses within each segment are a result of the timing and magnitude of our reductions in force.
Current wording
Increase and decreases in restructuring and reorganization expenses within each segment were a result of the timing and magnitude of our reductions in force.
Previous wording
Depreciation and amortization expenses decreased by $3.3 million, or 9.6%, to $31.2 million from $34.5 million for the three months ended March 31, 2026 and 2025, 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 $3.7 million, or 10.9%, to $30.2 million from $33.9 million for the three months ended June 30, 2026 and 2025, respectively. The decrease in depreciation and amortization expenses, within our segments, consisted primarily of the following:
Previous wording
We expect depreciation and amortization expenses to continue 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 continue to decrease as a result of an expected decline in capital expenditures, the result of some of our previously acquired assets becoming fully depreciated and a full quarter’s impact of the Tower Portfolio Transaction.
Previous wording
Amortization of intangibles from acquisitions decreased by $0.7 million to $0.5 million from $1.2 million for the three months ended March 31, 2026 and 2025, respectively, as a result of certain assets being fully amortized in previous periods.
Current wording
Amortization of intangibles from acquisitions decreased by $0.7 million to $0.5 million from $1.2 million for the three months ended June 30, 2026 and 2025, respectively, as a result of certain assets being fully amortized in previous period.
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 and $0.3 million for the three months ended March 31, 2026 and 2025, respectively.
Current wording
Interest income. Interest income represents interest earned on our cash, cash equivalents, restricted cash and short-term investment balances. Interest income was $0.5 million and $0.1 million for the three months ended June 30, 2026 and 2025, respectively. Such increase was the result of an increase in our cash and cash equivalents due to the proceeds received from the Tower Portfolio Transaction. In addition, such proceeds are being invested in higher yielding cash and cash equivalent investments.
Previous wording
Interest expense. We incur interest expense on the 2023 CoBank Credit Facility, the 2024 Alaska Credit Facilities, the FirstNet Receivables Credit Facility, the IDB Credit Facilities, the Sacred Wind Term Debt and the OneVI
Current wording
Interest expense. We incur interest expense on the 2023 CoBank Credit Facility, the 2024 Alaska Credit Facilities, the FirstNet Receivables Credit Facility, the IDB Credit Facilities, the Sacred Wind Term Debt and the OneVI Debt (each as defined below). In addition, interest expense includes commitment fees, letter of credit fees and the amortization of debt issuance costs.
Previous wording
Interest expense decreased to $10.5 million from $12.0 million for the three months ended March 31, 2026 and 2025, respectively, as a result of reduced interest rates, which were impacted by certain interest rate swap agreements, on our borrowings.
Current wording
Interest expense decreased to $10.9 million from $12.8 million for the three months ended June 30, 2026 and 2025, respectively. We used a portion of the proceeds from the Tower Portfolio Transaction to reduce our outstanding debt balances, which in turn reduced our interest expense during the three months ended June 30, 2026. In addition, a decline in interest rates, which were impacted by certain interest rate swap agreements, also reduced such expense during the three months ended June 30, 2026.
Previous wording
Income taxes. Our effective tax rates for the three months ended March 31, 2026 and 2025 were (84.1)% and 1.7%, respectively.
Current wording
Income taxes. Our effective tax rates for the three months ended June 30, 2026 and 2025 were 18.4% and 29.0%, respectively.
Previous wording
We recorded an income tax expense of $1.6 million in relation to a pretax loss of $1.9 million for the three months ended March 31, 2026. The effective tax rate for the three months ended March 31, 2026 was primarily impacted by the following items: (i) the mix of income generated among the jurisdictions in which we operate, (ii) the exclusion of losses in Alaska and the US Virgin Islands due to valuation allowance positions placed on certain deferred tax assets that are not expected to be realized based on the weight of positive and negative evidence, and (iii) discrete expenses including $0.3 million for interest on prior years uncertain tax positions and $0.3 million expense associated with stock option shortfalls.
Current wording
We recorded an income tax expense of $42.1 million in relation to a pretax income of $228.6 million for the three months ended June 30, 2026. The effective tax rate for the three months ended June 30, 2026 was primarily impacted by the following items: (i) the mix of income generated among the jurisdictions in which we operate, (ii) the exclusion of losses in Alaska and the US Virgin Islands due to valuation allowance positions placed on certain deferred tax assets that are not expected to be realized based on the weight of positive and negative evidence, and (iii) discrete items including a $4.9 million net benefit from the reversal of an unrecognized tax position due to a statute of limitations expiration, net of interest on prior years uncertain tax positions, and a $0.8 million expense associated with a return to provision adjustment related to tax returns filed in Guyana.
Previous wording
Net loss attributable to noncontrolling interests, net of tax. Net loss attributable to noncontrolling interests, net of tax reflected an allocation of $0.7 million and $2.5 million of losses generated by our less than wholly owned subsidiaries for the three months ended March 31, 2026 and 2025, respectively. Changes in net loss attributable to noncontrolling interests, net of tax, within our segments, consisted of the following:
Current wording
Net (income) loss attributable to noncontrolling interests, net of tax. Net (income) loss attributable to noncontrolling interests, net of tax reflected an allocation of $19.2 million of income and $2.2 million of losses generated by our less than wholly owned subsidiaries for the three months ended June 30, 2026 and 2025, respectively. Changes in net (income) loss attributable to noncontrolling interests, net of tax, within our segments, consisted of the following:
Previous wording
**Net loss attributable to ATN International, Inc. stockholders.**Net loss attributable to ATN International, Inc. stockholders was $2.8 million for the three months ended March 31, 2026 as compared to $8.9 million for the three months ended March 31, 2025.
Current wording
**Net income (loss) attributable to ATN International, Inc. stockholders.**Net income (loss) attributable to ATN International, Inc. stockholders was income of $167.3 million for the three months ended June 30, 2026 as compared to a loss of $7.0 million for the three months ended June 30, 2025.
Previous wording
On a per diluted share basis, net loss was $0.29 per diluted share for the three months ended March 31, 2026 as compared to $0.69 per diluted share for the three months ended March 31, 2025. Such per share amounts were negatively impacted by accrued preferred dividends of $1.6 million and $1.5 million for the three months ended March 31, 2026 and 2025, respectively.
Current wording
On a per diluted share basis, net income was $10.71 per diluted share for the three months ended June 30, 2026 as compared to a loss of $0.56 per diluted share for the three months ended June 30, 2025. Such per share amounts were negatively impacted by accrued preferred dividends of $1.6 million and $1.5 million for the three months ended June 30, 2026 and 2025, respectively.
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expect to meet all requirements associated with these grants. As of June 30, 2026, we were awarded $100.9 million of construction grants that are pending completion.
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As of June 30, 2026, we had substantially completed the build of AT&T’s network under the FirstNet Agreement and do not expect to record any significant construction revenue in future periods.
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As of June 30, 2026, we had substantially completed the build of AT&T’s network under the FirstNet Agreement and do not expect to record any significant cost of construction revenue in future periods.
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Our effective tax rate is based upon estimated income before provision for income taxes for the year, composition of the income in different countries, and adjustments, if any, in the applicable quarterly periods for potential tax consequences, benefits and/or resolutions of tax contingencies. Our consolidated tax rate will continue to be impacted by any transactional or one-time items in the future and the mix of income in any given year generated among the jurisdictions in which we operate. While we believe we have adequately provided for all tax positions, amounts asserted by taxing authorities could materially differ from our accrued positions as a result of uncertain and complex application of tax law and regulations. Additionally, the recognition and measurement of certain tax benefits include
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estimates and judgments by management. Accordingly, we could record additional provisions or benefits for US federal, state, and foreign tax matters in future periods as new information becomes available.
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The following represents selected segment information for the six months ended June 30, 2026 and 2025 (in thousands):
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A comparison of our segment results for the six months ended June 30, 2026 and 2025 is as follows:
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Operating expenses within our International Telecom segment decreased by $7.3 million, or 4.6%, to $151.1 million from $158.4 million for the six months ended June 30, 2026 and 2025, respectively. The net decrease was primarily the result of certain cost savings initiatives, including reorganizations and reductions in force, that were implemented in the current and previous periods as well as a decrease in depreciation and amortization expenses as a result of a reduction in capital expenditures in recent periods.
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The following represents a year over year discussion and analysis of our results of operations for the six months ended June 30, 2026 and 2025 (in thousands):
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**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 $1.0 million, $0.8 million and $2.5 million within our International Telecom segment, US Telecom segment and Corporate and Other segment, respectively, during the six months ended June 30, 2026.
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Increases and decreases in restructuring and reorganization expenses within each segment were a result of the timing and magnitude of our reductions in force.
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Income taxes. Our effective tax rates for the six months ended June 30, 2026 and 2025 were 19.3% and 16.1%, respectively.
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Net (income) loss attributable to noncontrolling interests, net of tax. Net (income) loss attributable to noncontrolling interests, net of tax reflected an allocation of $18.6 million of income and $4.7 million of losses generated by our less than wholly owned subsidiaries for the six months ended June 30, 2026 and 2025, respectively. Changes in net (income) loss attributable to noncontrolling interests, net of tax, within our segments, consisted of the following:
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On a per diluted share basis, net income was $10.44 per diluted share for the six months ended June 30, 2026 as compared to a loss of $1.25 per diluted share for the six months ended June 30, 2025. Such per share amounts were negatively impacted by accrued preferred dividends of $3.2 million and $3.0 million for the six months ended June 30, 2026 and 2025, respectively.
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Term Loan, there is a prepayment fee equal to 1% until the first anniversary from the effective date, 0.5% until the second anniversary from the effective date, and 0.0% thereafter.
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On November 5, 2025, the Company and certain of its subsidiaries (the “OneVI Borrowers”) amended the OneVI Debt Agreement (the “OneVI Debt Amendment”) to extend the maturity date of the OneVI Debt from July 1,
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certain sites, (ii) master lease agreements, pursuant to which we will lease the requisite ground, tower, or other space of the conveyed tower site for our continued use, and (iii) a preferred backhaul agreement whereby we will become the preferred backhaul provider with respect to the conveyed tower sites.
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Debt (each as defined below). In addition, interest expense includes commitment fees, letter of credit fees and the amortization of debt issuance costs.
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On August 29, 2024, Alaska Communications entered into a Credit Agreement (the “2024 Alaska Credit Agreement”) with Bank of America, N.A., as administrative agent, and a syndicate of lenders (the “2024 Alaska Credit
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federal and state licenses where a pledge is prohibited by applicable law or is permitted only with the consent of a governmental authority that has not been obtained.
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anniversary of the effective date. The 2025 IDB Revolving Loan may be repaid at any time on, or prior to, its maturity of 360 days after the first disbursement date.
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of indebtedness to annual operating cash flow to 3.5 to 1.0 (the “OneVI Net Leverage Ratio”). This covenant is tested on an annual basis at the end of each fiscal year. Interest is paid quarterly at a fixed rate of 4.0% per annum and principal repayment was not required until maturity on July 1, 2026. Prepayment of amounts under the OneVI Debt Agreement are subject to a fee under certain circumstances. The debt is secured by certain assets of the OneVI subsidiaries and is guaranteed by us.
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On May 5, 2022, the OneVI Net Leverage Ratio was amended to 7.0 to 1.0 through the maturity date of July 1, 2026. The OneVI Net Leverage Ratio is tested annually, and we were in compliance with the OneVI Net Leverage Ratio as of December 31, 2025.
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Availability Under Credit Facilities. In addition to future internally generated funds, we had the following available to us under our credit facilities as of December 31, 2025 and may be able to raise funds in the capital markets by making an offering under our universal shelf registration.