The company's operational profile has deteriorated significantly, with gross margins collapsing to -2.2% in 2025Q4 from 74.3% in 2023Q4.
| Sales/Revenue | 4.75B | 5.51B | 5.92B | 6.45B | 6.95B | 7.31B |
| Revenue Growth % | -13.8% | -6.88% | -8.28% | -7.22% | -4.95% | - |
| Cost of Goods Sold | 0 | 1.48B | 1.58B | 1.62B | 1.7B | 1.93B |
| COGS % of Revenue | - | 26.89% | 26.73% | 25.12% | 24.39% | 26.36% |
| Gross Profit | 0 | 4.03B | 4.33B | 4.83B | 5.26B | 5.38B |
| Gross Margin % | - | 73.11% | 73.27% | 74.88% | 75.61% | 73.64% |
| Gross Profit Growth % | -100% | -7.08% | -10.25% | -8.12% | -2.4% | - |
| Operating Expenses | 5.76B | 1.98B | 4.53B | 2.07B | 2.15B | 2.67B |
| OpEx % of Revenue | 121.25% | 35.88% | 76.57% | 32.16% | 30.9% | 36.56% |
| Selling, General & Admin | 456M | 438M | 1.3B | 1.21B | 1.14B | 1.36B |
| SG&A % of Revenue | 9.6% | 7.95% | 21.99% | 18.82% | 16.39% | 18.58% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - |
| Other Operating Expenses | - | - | - | - | - | - |
| Operating Income | -1.01B | 2.05B | -195M | 2.75B | 3.11B | 2.71B |
| Operating Margin % | -21.25% | 37.24% | -3.3% | 42.72% | 44.71% | 37.07% |
| Operating Income Growth % | -149.2% | 1151.79% | -107.08% | -11.36% | 14.64% | - |
| EBITDA | -324M | 2.8B | 628M | 3.62B | 4.12B | 4.03B |
| EBITDA Margin % | -6.82% | 50.91% | 10.62% | 56.06% | 59.23% | 55.05% |
| EBITDA Growth % | -111.55% | 346.5% | -82.63% | -12.19% | 2.26% | - |
| D&A (Non-Cash Add-back) | 685M | 753M | 823M | 860M | 1.01B | 1.31B |
| EBIT | -884M | 2.08B | 2.21B | 2.75B | 3.11B | 2.71B |
| Net Interest Income | -91M | -62M | -80M | -172M | -286M | -353M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | - | - | - | - | - | - |
| Other Income/Expense | - | - | - | - | - | - |
| Pretax Income | -975M | 2.01B | -270M | 2.59B | 2.82B | 2.3B |
| Pretax Margin % | -20.54% | 36.56% | -4.56% | 40.16% | 40.51% | 31.48% |
| Income Tax | 352M | 527M | 561M | 671M | 709M | 595M |
| Effective Tax Rate % | -36.1% | 26.17% | -207.78% | 25.91% | 25.18% | 25.85% |
| Net Income | -1.33B | 1.49B | -831M | 1.92B | 2.11B | 1.71B |
| Net Margin % | -27.95% | 27% | -14.05% | 29.76% | 30.31% | 23.34% |
| Net Income Growth % | -189.24% | 278.94% | -143.3% | -8.92% | 23.43% | - |
| Net Income (Continuing) | -1.33B | 1.49B | -831M | 1.92B | 2.11B | 1.71B |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| EPS Growth % | - | - | - | - | - | - |
| EPS (Basic) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Diluted Shares Outstanding | 0 | 0 | 0 | 0 | 0 | 0 |
| Basic Shares Outstanding | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Payout Ratio | - | - | - | - | 27.05% | 101.05% |
Terminal legacy revenue decline
As indicated by the most recent financial data, Qwest Corp. experienced a significant 15.0% year-over-year revenue contraction in 2025Q4, reflecting an accelerating trend of top-line decay that suggests the company is struggling to offset the rapid migration of customers away from its legacy wireline infrastructure.
The consistent quarterly revenue decline from $1.5B in 2023Q4 to $1.2B in 2025Q4 highlights a structural inability to stabilize the subscriber base. This trajectory suggests that the core business model is facing terminal velocity issues, as the pace of legacy service abandonment appears to be outpacing any potential growth from modern service offerings.
According to the reported income statements, gross margins plummeted to -2.2% in 2025Q4, a stark reversal from the 74.3% levels observed in 2023Q4, which suggests that the company's cost-to-serve is no longer aligned with its rapidly diminishing revenue base in the current operating environment.
The extreme volatility in gross margins indicates that the company's high fixed-cost structure is becoming increasingly difficult to absorb as revenue scales downward. Investors should monitor whether this margin collapse is a result of one-time asset impairments or a permanent shift in the underlying economics of the network.
Based on the latest quarterly filings, the company reported an operating margin of -174.0% in 2025Q4, demonstrating that the firm's operating leverage has become a significant liability as fixed costs remain rigid while the top-line revenue continues to experience a sustained and material downward trajectory.
The inability to scale SG&A expenses in proportion to revenue declines suggests a lack of operational flexibility within the current management framework. This negative operating leverage implies that every additional dollar of revenue lost exerts a disproportionately severe impact on the company's bottom-line profitability.
As reported in recent financial statements, the net income swing to a $2.1B loss in 2025Q4, compared to previous periods of profitability, suggests that non-operating items or massive asset write-downs are significantly distorting the company's true economic performance and masking the underlying operational cash flow reality.
The erratic nature of net income, characterized by deep losses in 2023Q4 and 2025Q4, warrants further investigation into the nature of these charges. It appears that the company is periodically recognizing the economic obsolescence of its legacy assets, which complicates any attempt to derive a normalized earnings baseline.
While the income statement reflects a deteriorating operational profile, some market participants may argue that the company's extensive physical rights-of-way and legacy conduit assets hold intrinsic value that is not captured by the current negative operating margins and consistent revenue contraction observed in recent filings.
The counter-narrative suggests that the company may be better viewed as a real estate and infrastructure play rather than a traditional telecommunications service provider. However, this perspective remains speculative, as the current income statement provides no evidence that these assets can be monetized effectively to offset the ongoing operational losses.
Quick answers to the most common questions about buying CTBB stock.
For fiscal year 2025, Qwest Corp. NT (CTBB) reported total revenue of $4.75B. This represents a 35.1% decline compared to $7.31B in 2020.
Qwest Corp. NT (CTBB) reported a net loss of $1.33B for the fiscal year ending 2025.
Qwest Corp. NT (CTBB) reported an operating income of $-1009.0M, resulting in an operating profit margin of -21.3%. This margin reflects the operational efficiency of the business before interest and taxes.