Financial Analysis

(13) Commitments and Contingencies Guaranteed Service Levels Certain customers have guaranteed levels of service with varying terms. In the event the Company is unable to provide the minimum service levels, it may incur penalties or issue credits to customers. Litigation, Disputes, and Regulatory Matters The Company is involved in various lawsuits, billing disputes, legal proceedings, and regulatory matters that have arisen from time to time in the normal course of business. Management believes there are no proceedings from asserted and unasserted claims which if determined adversely would have a material adverse effect on the Companys financial position, results of operations or liquidity other than as discussed below. RHC Program GCI Holdings receives support from various USF programs including the RHC Program. The USF programs are subject to change by regulatory actions taken by the FCC, interpretations of or compliance with USF program rules, or legislative actions. The USF programs have also been subject to legal challenge, which could disrupt or eliminate the support GCI Holdings receives. Changes to any of the USF programs that GCI Holdings participates in could result in a material decrease in revenue and accounts receivable, which could have an adverse effect on GCI Holdings' business and the Company's financial position, results of operations or liquidity. As of December 31, 2025 and 2024, the Company had net accounts receivable from the RHC Program in the amounts o …

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"(5) Debt Debt is summarized as follows: Outstanding principal Carrying value December 31, December 31, December 31, 2025 2025 2024 amounts in millions Senior notes $ 600 614 619 Senior credit facility 367 367 447 Wells Fargo note payable 4 4 4 Deferred financing costs (2) (1) Total debt $ 971 983 1,069 Debt classified as current (4) (3) Total long-term debt $ 979 1,066 Senior Notes On October 7, 2020, GCI, LLC issued $600 million aggregate principal amount of 4.75% senior notes due 2028 (the Senior Notes). The Senior Notes are unsecured and interest on the Senior Notes is payable semi-annually in arrears. The Senior Notes are redeemable at the Companys option, in whole or in part, at a redemption price defined in the indenture, and accrued and unpaid interest (if any) to the date of redemption. The Senior Notes are stated net of an aggregate unamortized premium of $14 million at December 31, 2025. Such premium is being amortized to interest expense in the accompanying consolidated statements of operations. Senior Credit Facility On March 25 2025, GCI, LLC entered into a Ninth Amended and Restated Credit Agreement (the Senior Credit Facility) which refinanced in full and replaced the Prior Senior Credit Facility (as defined below) with (x) a new $450 million revolving credit facility, with a $35 million sublimit for letters of credit, that matures on March 25, 2030 (or, to the extent the senior notes (the Senior Notes) thereunder remain outstanding, the date that is 91 days p …

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Years ended December 31, 2025 2024 amounts in millions GCI Holdings Consumer Revenue Data $ 239 246 Wireless 143 142 Other 27 44 Business Revenue Data 500 457 Wireless 32 40 Other 11 11 Lease, grant, and revenue from subsidies 94 76 Total $ 1,046 1,016 …

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(9) Stock-Based Compensation Subsequent to the Original Combination, Liberty Broadband granted RSUs to certain employees of its subsidiaries under the Liberty Broadband 2019 Omnibus Incentive Plan, as amended, until its expiration on May 23, 2024 and then subsequently granted RSUs under the Liberty Broadband 2024 Omnibus Incentive Plan. Holders of Liberty Broadband RSUs who provided services primarily or solely to GCI Liberty or its subsidiaries at the time of the Distribution, received RSUs that relate to GLIBK in substitution for such Liberty Broadband RSUs. The number of shares of GLIBK subject to such substituted RSUs was determined in a manner to preserve the value of the Liberty Broadband RSUs outstanding prior to the Distribution. Pursuant to the GCI Liberty, Inc. 2025 Omnibus Incentive Plan (the 2025 Plan), the Company may grant to certain of its directors, employees and employees of its subsidiaries, RSUs and stock options to purchase a maximum of 5.0 million shares of GCI Group common stock. The Company measures the cost of employee services received in exchange for an equity classified Award (such as stock options and RSUs) based on the grant-date fair value (GDFV) of the Award, and recognizes that cost over the period during which the employee is required to provide service (usually the vesting period of the Award). The Company measures the cost of employee services received in exchange for a liability classified Award based on the current fair value of the Award, …

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(4) Goodwill and Intangible Assets Goodwill and Indefinite Lived Assets Goodwill Cable Certificates Other Total amounts in millions Balance at December 31, 2023 $ 746 550 41 1,337 Balance at December 31, 2024 746 550 41 1,337 Impairments (108) (401) (16) (525) Balance at December 31, 2025 $ 638 149 25 812 As presented in the accompanying consolidated balance sheets, wireless licenses are the majority of the other significant indefinite lived intangible assets. Intangible Assets Subject to Amortization, net December 31, 2025 December 31, 2024 Gross Net Gross Net carrying Accumulated carrying carrying Accumulated carrying amount amortization amount amount amortization amount amounts in millions Customer relationships $ 515 (215) 300 515 (173) 342 Other amortizable intangible assets 184 (112) 72 165 (96) 69 Total $ 699 (327) 372 680 (269) 411 Intangible assets are being amortized generally on an accelerated basis as reflected in amortization expense and in the future amortization table below. Amortization expense for intangible assets with finite useful lives was $57 million and $60 million for the years ended December 31, 2025 and 2024, respectively. Amortization expense for amortizable intangible assets for each of the five succeeding fiscal years is estimated to be (amounts in millions): 2026 $ 56 2027 $ 53 2028 $ 51 2029 $ 45 2030 $ 39 Impairments During the third quarter of 2025, management determined it was more likely than not that the fair value of GCI Liberty and certai …

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(7) Income Taxes The Company was included in the federal consolidated income tax return of Liberty Broadband and its subsidiaries during the periods presented, until the Separation occurred on July 14, 2025. The income tax provision included in these financial statements has been prepared on a stand-alone basis, as if GCI Liberty was not part of the consolidated Liberty Broadband tax group. Income tax expense (benefit) consists of: Years ended December 31, 2025 2024 amounts in millions Current: Federal $ 219 12 State and local 95 5 314 17 Deferred: Federal (269) 6 State and local (122) 4 (391) 10 Total: Federal (50) 18 State and local (27) 9 Income tax expense (benefit) $ (77) 27 Income tax (benefit) expense differs from the amounts computed by applying the applicable U.S. federal income tax rate of 21% as a result of the following: Years ended December 31, 2025 2024 (millions) (percent ) (millions) (percent ) U.S. Federal statutory tax rate $ (81) (21) % 20 21 % Domestic federal reconciling items Tax credits (2) (1) % (2) (2) % Non-taxable and nondeductible items, net Executive Compensation 3 1 % 1 1 % Non-deductible goodwill impairment 23 6 % Other 1 1 1 % Domestic state and local income taxes, net of federal effect (21) (5) % 7 7 % Total income tax expense (benefit) $ (77) (20) % 27 28 % For both of the years ended December 31, 2025 and 2024, state and local income taxes in Alaska comprised the majority of the domestic state and local income taxes, net of federal effect ca …

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Recently Adopted Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09, Improvements to Income Tax Disclosures (ASU 2023-09), which requires more detailed income tax disclosures. The guidance requires entities to disclose disaggregated information about their effective tax rate reconciliation as well as expanded information on income taxes paid by jurisdiction. The effective date for the standard is for fiscal years beginning after December 15, 2024. The Company adopted ASU 2023-09 on a retrospective basis as of December 31, 2025. See notes 3 and 7 for new required disclosures. Recent Accounting Pronouncements In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which expands disclosures about specific expense categories at interim and annual reporting periods. The standard is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The Company is in the process of evaluating the impact of the new standard on the related disclosures. In September 2025, the FASB issued ASU 2025-06, Intangibles Goodwill and Other Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software , which removes all ref …

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(12) Employee Benefit Plans Subsidiaries of the Company sponsor 401(k) plans, which provide their employees an opportunity to make contributions to a trust for investment. The Companys subsidiaries make matching contributions to their plans based on a percentage of the amount contributed by employees. Employer cash contributions to all plans aggregated $13 million and $14 million for the years ended December 31, 2025 and 2024, respectively. …

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(10) Related Party Transactions with Officers and Directors Chief Executive Officer Employment Agreement The Company entered into a new employment agreement with Ronald A. Duncan on August 22, 2025 (the Employment Agreement), which generally replaced Mr. Duncans prior employment agreement with GCI Communication Corp. (GCI Corp.) The Employment Agreement provides that Mr. Duncan will continue to serve as the Chief Executive Officer and President of the Company and has a term that began on July 15, 2025 and which is scheduled to end on December 31, 2028. Pursuant to the Employment Agreement, Mr. Duncan is paid an annual base salary of $990,000 and is eligible to participate in the discretionary annual target cash incentive program pursuant to which Mr. Duncan is eligible to receive annual target cash incentive compensation of $1,252,741 in each calendar year from 2026 through 2028 (the Duncan Cash IC) and annual performance-based restricted stock unit grants with a target grant value of $626,371 in each of 2026, 2027 and 2028 (the Duncan Equity IC). Each of the Duncan Cash IC and Duncan Equity IC will be subject to the achievement of annual performance metrics established by the Companys compensation committee. In connection with the entry into the Employment Agreement, Mr. Duncan also received an upfront multi-year grant of options to purchase 814 thousand shares of GLIBK for an exercise price equal to $37.85, which options are scheduled to vest in three equal installments on …

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(14) Segment Information GCI Libertys chief operating decision maker (CODM), the Chief Executive Officer, assesses performance and allocates resources based on the Companys consolidated statements of operations, as the converged network requires the CODM to manage and evaluate the results of the business in a consolidated manner to drive efficiencies and develop uniform strategies. Accordingly, key components and processes of the Companys operations are managed centrally, including capital and new technology development and deployment, customer service, marketing and advertising, legal and government affairs. Segment asset information is not used by the CODM to allocate resources. Under this organizational and reporting structure, the Company has one reportable segment. As a single reportable segment entity, the Companys segment performance measure is net earnings (loss). See note 2 for a description of the Company's disaggregated revenue by customer type and significant service offerings . Significant segment expenses that are not separately presented on the consolidated statements of operations but are reviewed by the CODM are presented below: Operating expenses Year ended December 31, 2025 2024 amounts in millions Consumer direct costs $ 139 152 Business direct costs 114 127 Technology expense 270 260 Total operating expenses $ 523 539 Consumer direct costs consists of wireless handset inventory costs, video programming, wireless distribution costs, marketing and advertisi …

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"(2) Summary of Significant Accounting Policies Cash and Cash Equivalents Cash consists of cash deposits held in global financial institutions. Cash equivalents, when held, consist of highly liquid investments with original maturities of three months or less at the time of acquisition. Cash that has restrictions upon its usage has been excluded from cash and cash equivalents. Financial instruments, which potentially subject the Company to concentration of credit risk, consist primarily of cash and cash equivalents and corporate debt securities. The Company maintains some cash and cash equivalents balances with financial institutions that are in excess of Federal Deposit Insurance Corporation insurance limits. As of December 31, 2025 , the Company had cash equivalents of $317 million (Level 1). Level 1 inputs are quoted market prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. As of December 31, 2024, the Company had no cash equivalents. Accounts Receivable and Allowance for Credit Losses Trade accounts receivable are recorded at the invoiced amount and interest is not billed to the customer. For financed device contracts with customers, which is included within trade accounts receivable and other assets, the Company imputes interest and records the imputed interest as a reduction to the related accounts receivable on the consolidated balance sheets. Interest is recognized over the financed …

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(11) Stockholders Equity Preferred Stock GCI Libertys preferred stock is issuable, from time to time, with such designations, preferences and relative participating, optional or other rights, qualifications, limitations or restrictions thereof, as shall be stated and expressed in a resolution or resolutions providing for the issue of such preferred stock adopted by the Board of Directors. As of December 31, 2025, 10,000 shares of Series A Cumulative Redeemable non-voting preferred stock were issued (the Preferred Stock). The Preferred Stock has a 12% dividend rate and $1,000 per share liquidation price plus accrued and unpaid dividends. The mandatory redemption date is July 14, 2032. The Preferred Stock is accounted for as a liability, and is included in the Other liabilities line in the consolidated balance sheets. Common Stock GLIBA has one vote per share, GLIBB has ten votes per share and GLIBK has no votes per share except as otherwise required by Nevada law. Each share of GLIBB is exchangeable at the option of the holder for one share of GLIBA. All series of our common stock participate on an equal basis with respect to dividends and distributions. Rights Offering On November 25, 2025, GCI Liberty distributed subscription rights (the Series C GCI Group Rights) to purchase shares of GLIBK to holders of GLIBA, GLIBB, and GLIBK in connection with a rights offering (the Rights Offering) that commenced on November 26, 2025. GCI Liberty distributed 0.3838 of a Series C GCI Gro …

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