| SEGMENT REPORTING |
13. SEGMENT REPORTING Through March 31, 2026, the Company had the following two reportable and operating segments: (i) International Telecom and (ii) US Telecom. Operating income is the segment measure of profit or loss reported to the chief operating decision maker for purposes of assessing the segments’ performance and making capital allocation decisions. The Company believes operating income is a useful measure of its operating results as it provides relevant and useful information to investors and other users of its financial data in evaluating the effectiveness of its operations and underlying business trends in a manner that is consistent with management’s evaluation of business performance. The Company’s chief operating decision maker is its Chief Executive Officer. The following tables provide information for each operating segment (in thousands): | | | | | | | | | | | | | For the Three Months Ended March 31, 2026 | | | | | | | | | | | | | | | International | | US | | Corporate and | | | | | | Telecom | | Telecom | | Other (1) | | Consolidated | Revenue | | | | | | | | | | | | | Communication Services | | | | | | | | | | | | | Mobility - Business | | $ | 5,176 | | $ | — | | $ | — | | $ | 5,176 | Mobility - Consumer | | | 21,183 | | | — | | | — | | | 21,183 | Total Mobility | | | 26,359 | | | — | | | — | | | 26,359 | Fixed - Business | | | 18,747 | | | 29,927 | | | — | | | 48,674 | Fixed - Consumer | | | 41,840 | | | 22,154 | | | — | | | 63,994 | Total Fixed | | | 60,587 | | | 52,081 | | | — | | | 112,668 | Carrier Services | | | 4,197 | | | 31,889 | | | — | | | 36,086 | Other | | | 3,194 | | | 151 | | | — | | | 3,345 | Total Communication Services Revenue | | | 94,337 | | | 84,121 | | | — | | | 178,458 | Construction | | | — | | | — | | | — | | | — | Other | | | | | | | | | | | | | Managed Services | | | 1,721 | | | 2,040 | | | — | | | 3,761 | Total other revenue | | | 1,721 | | | 2,040 | | | — | | | 3,761 | Total Revenue | | | 96,058 | | | 86,161 | | | — | | | 182,219 | | | | | | | | | | | | | | Operating Expenses | | | | | | | | | | | | | Cost of communication services and other | | | 33,629 | | | 43,797 | | | — | | | 77,426 | Selling, general and administrative | | | 28,141 | | | 22,872 | | | 5,163 | | | 56,176 | Stock-based compensation | | | 127 | | | 28 | | | 1,780 | | | 1,935 | Transaction-related charges | | | — | | | 17 | | | 816 | | | 833 | Restructuring and reorganization expenses | | | 745 | | | 191 | | | 789 | | | 1,725 | Depreciation and amortization | | | 13,574 | | | 16,858 | | | 724 | | | 31,156 | Amortization of intangibles from acquisitions | | | 241 | | | 255 | | | — | | | 496 | Loss on disposition of assets, transfers and contingent consideration | | | 378 | | | 404 | | | — | | | 782 | Total Operating Expenses | | | 76,835 | | | 84,422 | | | 9,272 | | | 170,529 | Income (loss) from operations | | | 19,223 | | | 1,739 | | | (9,272) | | | 11,690 | Other expense | | | | | | | | | | | | | Interest income | | | | | | | | | | | | 132 | Interest expense | | | | | | | | | | | | (10,478) | Other expense | | | | | | | | | | | | (3,232) | Other expense | | | | | | | | | | | | (13,578) | Loss before income taxes | | | | | | | | | | | | (1,888) | | | | | | | | | | | | | | Other segment disclosures: | | | | | | | | | | | | | | | International | | US | | Corporate and | | | | | | Telecom | | Telecom | | Other (1) | | Consolidated | Net (income) loss attributable to non-controlling interests | | | (2,606) | | | 3,283 | | | — | | | 677 |
| (1) | Corporate and other items refer to corporate overhead costs and consolidating adjustments and have been presented for reconciliation purposes to consolidated amounts. |
| | | | | | | | | | | | | For the Three Months Ended March 31, 2025 | | | | | | | | | | | | | | | International | | US | | Corporate and | | | | | | Telecom | | Telecom | | Other (1) | | Consolidated | Revenue | | | | | | | | | | | | | Communication Services | | | | | | | | | | | | | Mobility - Business | | $ | 4,849 | | $ | 39 | | $ | — | | $ | 4,888 | Mobility - Consumer | | | 21,192 | | | — | | | — | | | 21,192 | Total Mobility | | | 26,041 | | | 39 | | | — | | | 26,080 | Fixed - Business | | | 18,493 | | | 29,244 | | | — | | | 47,737 | Fixed - Consumer | | | 42,872 | | | 22,415 | | | — | | | 65,287 | Total Fixed | | | 61,365 | | | 51,659 | | | — | | | 113,024 | Carrier Services | | | 3,904 | | | 29,227 | | | — | | | 33,131 | Other | | | 1,740 | | | 56 | | | — | | | 1,796 | Total Communication Services Revenue | | | 93,050 | | | 80,981 | | | — | | | 174,031 | Construction | | | — | | | 1,046 | | | — | | | 1,046 | Other | | | | | | | | | | | | | Managed Services | | | 1,446 | | | 2,771 | | | — | | | 4,217 | Total Other Revenue | | | 1,446 | | | 2,771 | | | — | | | 4,217 | Total Revenue | | | 94,496 | | | 84,798 | | | — | | | 179,294 | | | | | | | | | | | | | | Operating Expenses | | | | | | | | | | | | | Cost of communication services and other | | | 34,963 | | | 43,261 | | | — | | | 78,224 | Cost of construction revenue | | | — | | | 1,501 | | | — | | | 1,501 | Selling, general and administrative | | | 27,143 | | | 22,521 | | | 5,564 | | | 55,228 | Stock-based compensation | | | 215 | | | 78 | | | 1,612 | | | 1,905 | Transaction-related charges | | | — | | | — | | | 1,436 | | | 1,436 | Restructuring and reorganization expenses | | | 1,506 | | | 134 | | | 190 | | | 1,830 | Depreciation and amortization | | | 15,377 | | | 18,284 | | | 866 | | | 34,527 | Amortization of intangibles from acquisitions | | | 251 | | | 975 | | | — | | | 1,226 | (Gain) loss on disposition of assets, transfers and contingent consideration | | | 291 | | | 459 | | | — | | | 750 | Total Operating Expenses | | | 79,746 | | | 87,213 | | | 9,668 | | | 176,627 | Income (loss) from operations | | | 14,750 | | | (2,415) | | | (9,668) | | | 2,667 | Other expense | | | | | | | | | | | | | Interest income | | | | | | | | | | | | 272 | Interest expense | | | | | | | | | | | | (11,950) | Other expense | | | | | | | | | | | | (2,568) | Other expense | | | | | | | | | | | | (14,246) | Loss before income taxes | | | | | | | | | | | | (11,579) | | | | | | | | | | | | | | Other segment disclosures: | | | | | | | | | | | | | | | International | | US | | Corporate and | | | | | | Telecom | | Telecom | | Other (1) | | Consolidated | | | | | | | | | | | | | | Net (income) loss attributable to non-controlling interests | | | (1,474) | | | 3,933 | | | — | | | 2,459 |
| (1) | Corporate and other items refer to corporate overhead costs and consolidating adjustments and have been presented for reconciliation purposes to consolidated amounts. |
Selected balance sheet data for each of the Company’s segments as of March 31, 2026 and December 31, 2025 consists of the following (in thousands): | | | | | | | | | | | | | | | International | | US | | Corporate and | | | | | | Telecom | | Telecom | | Other (1) | | Consolidated | March 31, 2026 | | | | | | | | | | | | | Cash, cash equivalents, and restricted cash | | $ | 90,904 | | $ | 32,110 | | $ | 476 | | $ | 123,490 | Total current assets | | | 179,405 | | | 136,978 | | | 18,742 | | | 335,125 | Fixed assets, net | | | 444,678 | | | 503,235 | | | 6,910 | | | 954,823 | Goodwill | | | 4,835 | | | — | | | — | | | 4,835 | Total assets | | | 707,281 | | | 878,236 | | | 89,136 | | | 1,674,653 | Total current liabilities | | | 109,039 | | | 120,212 | | | 47,644 | | | 276,895 | Total debt, including current portion | | | 61,943 | | | 335,621 | | | 172,596 | | | 570,160 | December 31, 2025 | | | | | | | | | | | | | Cash, cash equivalents, and restricted cash | | $ | 79,165 | | $ | 35,915 | | $ | 2,074 | | $ | 117,154 | Total current assets | | | 165,341 | | | 141,592 | | | 20,943 | | | 327,876 | Fixed assets, net | | | 451,303 | | | 533,443 | | | 7,021 | | | 991,767 | Goodwill | | | 4,835 | | | — | | | — | | | 4,835 | Total assets | | | 701,579 | | | 881,968 | | | 89,707 | | | 1,673,254 | Total current liabilities | | | 97,305 | | | 120,637 | | | 45,157 | | | 263,099 | Total debt, including current portion | | | 59,952 | | | 329,034 | | | 176,181 | | | 565,167 |
For the three months ended March 31, 2026 and 2025, the Company spent $34.5 million and $43.3 million, respectively, on capital expenditures relating to its telecommunications networks and business support systems, of which $13.5 million and $22.4 million, respectively, are reimbursable under various government programs. The following notes the Company’s capital expenditures, by operating segment, for these periods (in thousands). | | | | | | | | | | | | | | | Capital Expenditures | | | | | | | | | | | | | | | | | International | | | US | | | Corporate and | | | | Three months ended March 31, | | | Telecom | | | Telecom | | | Other (1) | | | Consolidated | 2026 | | $ | 8,261 | | $ | 26,284 | | $ | — | | $ | 34,545 | 2025 | | | 10,803 | | | 32,472 | | | 2 | | | 43,277 |
| (1) | Corporate and other items refer to corporate overhead costs and consolidating adjustments and have been presented for reconciliation purposes to consolidated amounts. |
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