v3.26.3
Segment Information
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Segment Information
Note 10—Segment Information

Historically, we disclosed two reportable segments, Business and Mass Markets, based on customer-facing sales channels, reflecting how the business was managed and how we supported our customers. In connection with the sale of the Mass Markets Fiber‑to‑the‑Home business in 11 states to AT&T, which closed on February 2, 2026, our Chief Executive Officer, who serves as the Chief Operating Decision Maker ("CODM"), changed how the business is managed beginning in January 2026. The CODM now makes operating decisions and assesses performance and profitability on a consolidated basis and does not regularly review discrete financial information for individual business components.

As a result, we manage our business, make operating decisions, and evaluate financial performance based on one operating segment, which also represents our single reportable segment. The CODM primarily uses net income (loss), as well as a secondary non-GAAP financial measure of adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA"), to assess financial performance and allocate resources. These financial measures are used by the CODM to make key operating decisions.

Although our revenue is disaggregated by product and sales channel, which aligns with the customer markets in which the revenues are generated, we do not allocate significant operating expenses, assets, or debt to those sales channels. See Note 4—Revenue Recognition for additional information regarding revenue disaggregation.

The following tables present selected financial information with respect to our single operating segment:

Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
(Dollars in millions)
Revenue$2,715 3,087 8,419 9,361 
Operating expenses
Cost of services and products related to network expenses800 929 2,450 2,846 
Headcount costs617 685 1,851 1,953 
Non-headcount costs781 902 2,289 2,436 
Net gain on sale of business(4)— (569)— 
Stock-based compensation18 13 49 35 
Depreciation and amortization670 674 2,002 2,075 
Goodwill impairment— — — 628 
Total operating expenses
2,882 3,203 8,072 9,973 
Total operating (loss) income(167)(116)347 (612)
Total other expense, net(168)(697)(760)(1,595)
Loss before income taxes(335)(813)(413)(2,207)
Income tax (benefit) expense(70)(192)253 (470)
Net loss$(265)(621)(666)(1,737)
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
(Dollars in millions)
Revenue$2,715 3,087 8,419 9,361 
Operating expenses
Cost of services and products related to network expenses800 929 2,450 2,846 
Headcount costs617 685 1,851 1,953 
Non-headcount costs781 902 2,289 2,436 
Net gain on sale of business(4)— (569)— 
Adjusted EBITDA
$521 571 2,398 2,126 

Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
(Dollars in millions)
Net loss
$(265)(621)(666)(1,737)
Stock-based compensation18 13 49 35 
Depreciation and amortization670 674 2,002 2,075 
Goodwill impairment— — — 628 
Total other expense, net168 697 760 1,595 
Income tax (benefit) expense(70)(192)253 (470)
Adjusted EBITDA
$521 571 2,398 2,126