Revenue continues to contract, falling to $2.9 billion in 2026Q1, while operating margins remain highly volatile, swinging from a -19.5% loss in 2025Q2 to a 20.8% profit in 2026Q1.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 12.12B | 12.4B | 13.11B | 14.56B | 17.48B | 19.69B | 20.71B | 21.46B | 23.44B | 17.66B | 17.47B | 17.9B | 18.03B | 18.09B | 18.38B | 15.35B | 7.04B | 4.97B | 2.6B | 2.66B | 2.45B | 2.48B | 2.41B | 2.38B | 1.97B | 2.12B | 1.85B | 1.68B | 1.5B | 901.5M | 749.7M |
| Revenue Growth % | -6.78% | -5.39% | -9.95% | -16.71% | -11.22% | -4.95% | -3.48% | -8.47% | 32.78% | 1.06% | -2.4% | -0.73% | -0.35% | -1.53% | 19.71% | 118.01% | 41.56% | 91.34% | -2.13% | 8.52% | -1.27% | 2.99% | 1.12% | 20.73% | -6.87% | 14.71% | 10.09% | 11.83% | 66.31% | 20.25% | 16.27% |
| Cost of Goods Sold | 4.95B | 6.64B | 6.7B | 7.14B | 7.87B | 8.49B | 8.93B | 9.13B | 10.86B | 8.2B | 7.77B | 7.78B | 7.85B | 7.51B | 7.64B | 6.33B | 2.41B | 1.75B | 955.47M | 937.38M | 888.41M | 821.93M | 755.41M | 1.16B | 973.69M | 1.09B | 932.46M | 819.8M | 768.7M | 474.3M | 394.4M |
| COGS % of Revenue | - | 53.52% | 51.14% | 49.08% | 45.02% | 43.11% | 43.13% | 42.57% | 46.33% | 46.46% | 44.5% | 43.45% | 43.51% | 41.49% | 41.57% | 41.2% | 34.23% | 35.22% | 36.75% | 35.29% | 36.3% | 33.15% | 31.38% | 48.71% | 49.38% | 51.3% | 50.51% | 48.89% | 51.27% | 52.61% | 52.61% |
| Gross Profit | 4.27B | 5.76B | 6.41B | 7.41B | 9.61B | 11.2B | 11.78B | 12.32B | 12.58B | 9.45B | 9.7B | 10.12B | 10.19B | 10.59B | 10.74B | 9.03B | 4.63B | 3.22B | 1.64B | 1.72B | 1.56B | 1.66B | 1.65B | 1.22B | 998.31M | 1.03B | 913.47M | 856.9M | 730.6M | 427.2M | 355.3M |
| Gross Margin % | 35.23% | 46.48% | 48.86% | 50.92% | 54.98% | 56.89% | 56.87% | 57.43% | 53.67% | 53.54% | 55.5% | 56.55% | 56.49% | 58.51% | 58.43% | 58.8% | 65.77% | 64.78% | 63.25% | 64.71% | 63.7% | 66.85% | 68.62% | 51.29% | 50.62% | 48.7% | 49.49% | 51.11% | 48.73% | 47.39% | 47.39% |
| Gross Profit Growth % | - | -10.01% | -13.6% | -22.86% | -14.19% | -4.92% | -4.43% | -2.04% | 33.09% | -2.51% | -4.21% | -0.62% | -3.81% | -1.39% | 18.96% | 94.88% | 43.74% | 95.96% | -4.34% | 10.23% | -5.91% | 0.32% | 35.29% | 22.31% | -3.2% | 12.9% | 6.6% | 17.29% | 71.02% | 20.24% | 12.22% |
| Operating Expenses | 7.49B | 5.95B | 5.95B | 17B | 9.52B | 6.91B | 10.82B | 15.05B | 9.29B | 7.44B | 7.37B | 7.52B | 7.78B | 8.04B | 8.02B | 7B | 2.57B | 1.99B | 922.92M | 925.79M | 893.78M | 920.92M | 898.01M | 470.64M | 422.9M | 473.38M | 388.06M | 348.8M | 328.6M | 159.5M | 132M |
| OpEx % of Revenue | - | 47.96% | 45.35% | 116.76% | 54.44% | 35.12% | 52.22% | 70.14% | 39.61% | 42.16% | 42.16% | 41.99% | 43.12% | 44.45% | 43.67% | 45.61% | 36.52% | 39.99% | 35.5% | 34.85% | 36.51% | 37.15% | 37.3% | 19.77% | 21.45% | 22.36% | 21.02% | 20.8% | 21.92% | 17.69% | 17.61% |
| Selling, General & Admin | 3.32B | 3.2B | 2.97B | 3.2B | 3.08B | 2.9B | 3.5B | 3.71B | 4.17B | 3.51B | 3.45B | 3.33B | 3.35B | 3.5B | 3.24B | 2.98B | 1.14B | 1.01B | 399.14M | 389.53M | 370.27M | 388.99M | 397.1M | 0 | 11.28M | 0 | 0 | 0 | 0 | 0 | 0 |
| SG&A % of Revenue | - | 25.79% | 22.67% | 21.97% | 17.61% | 14.71% | 16.87% | 17.31% | 17.77% | 19.87% | 19.74% | 18.59% | 18.56% | 19.35% | 17.65% | 19.38% | 16.16% | 20.39% | 15.35% | 14.66% | 15.13% | 15.69% | 16.5% | - | 0.57% | - | - | - | - | - | - |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | -317M | -184M | 460M | -9.58B | 95M | 4.29B | 962M | -2.73B | 570M | 2.01B | 2.33B | 2.6B | 2.41B | 1.45B | 2.71B | 2.02B | 2.06B | 1.23B | 721.35M | 793.08M | 665.54M | 736.4M | 753.95M | 750.4M | 575.41M | 557.92M | 525.41M | 508.1M | 402M | 267.7M | 223.3M |
| Operating Margin % | -2.62% | -1.48% | 3.51% | -65.84% | 0.54% | 21.77% | 4.64% | -12.7% | 2.43% | 11.38% | 13.34% | 14.55% | 13.37% | 8.03% | 14.76% | 13.19% | 29.25% | 24.79% | 27.75% | 29.86% | 27.19% | 29.7% | 31.32% | 31.52% | 29.18% | 26.35% | 28.46% | 30.3% | 26.81% | 29.7% | 29.79% |
| Operating Income Growth % | - | -140% | 104.8% | -10188.42% | -97.78% | 345.43% | 135.29% | -578.25% | -71.63% | -13.81% | -10.52% | 8.09% | 65.86% | -46.44% | 33.98% | -1.7% | 67.05% | 70.94% | -9.04% | 19.16% | -9.62% | -2.33% | 0.47% | 30.41% | 3.13% | 6.19% | 3.41% | 26.39% | 50.17% | 19.88% | 10.11% |
| EBITDA | 2.38B | 2.56B | 3.42B | -6.6B | 3.33B | 8.66B | 5.67B | 2.1B | 5.69B | 5.95B | 6.25B | 6.79B | 6.84B | 5.99B | 7.49B | 6.05B | 3.49B | 2.21B | 1.25B | 1.33B | 1.19B | 1.27B | 1.25B | 1.22B | 987.03M | 1.03B | 913.47M | 856.9M | 730.6M | 427.2M | 355.3M |
| EBITDA Margin % | 19.66% | 20.68% | 26.06% | -45.33% | 19.08% | 44% | 27.39% | 9.8% | 24.27% | 33.67% | 35.76% | 37.96% | 37.92% | 33.13% | 40.78% | 39.42% | 49.61% | 44.38% | 47.89% | 50.05% | 48.58% | 51.16% | 52.13% | 51.29% | 50.05% | 48.7% | 49.49% | 51.11% | 48.73% | 47.39% | 47.39% |
| EBITDA Growth % | -30.69% | -24.91% | 151.77% | -297.93% | -61.51% | 52.72% | 169.71% | -63.04% | -4.29% | -4.83% | -8.05% | -0.64% | 14.08% | -20.01% | 23.83% | 73.21% | 58.23% | 77.31% | -6.33% | 11.8% | -6.25% | 1.07% | 2.77% | 23.71% | -4.29% | 12.9% | 6.6% | 17.29% | 71.02% | 20.24% | 12.22% |
| D&A (Non-Cash Add-back) | 2.7B | 2.75B | 2.96B | 2.98B | 3.24B | 4.38B | 4.71B | 4.83B | 5.12B | 3.94B | 3.92B | 4.19B | 4.43B | 4.54B | 4.78B | 4.03B | 1.43B | 974.71M | 523.79M | 536.25M | 523.51M | 531.93M | 500.9M | 470.64M | 411.63M | 473.38M | 388.06M | 348.8M | 328.6M | 159.5M | 132M |
| EBIT | -1.53B | -1.43B | 1.14B | -9.08B | 341M | 4.14B | 886M | -2.75B | 614M | 2.02B | 2.34B | 2.63B | 2.42B | 1.52B | 2.57B | 2.02B | 2.09B | 1.18B | 763.6M | 793.08M | 665.54M | 736.4M | 753.95M | 750.4M | 575.41M | 425.31M | 386.14M | 508.1M | 479.8M | 267.7M | 223.3M |
| Net Interest Income | -883M | -1.21B | -1.25B | -1.12B | -1.31B | -1.52B | -1.67B | -2.02B | -2.18B | -1.48B | -1.32B | -1.31B | -1.31B | -1.3B | -1.32B | -1.07B | -544M | -370.41M | -202.22M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 54M | 75M | 119M | 41M | 24M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | -2.29B | -2.72B | -230M | -10.24B | -991M | 2.7B | -782M | -4.77B | -1.56B | 540M | 1.02B | 1.32B | 1.11B | 224M | 1.25B | 948M | 1.53B | 814.51M | 560.09M | 618.94M | 591.15M | 736.4M | 547.37M | 531.96M | 293.46M | 553.06M | 386.19M | 429.3M | 387.5M | 408.4M | 203.7M |
| Pretax Margin % | -18.93% | -21.9% | -1.75% | -70.32% | -5.67% | 13.72% | -3.78% | -22.21% | -6.67% | 3.06% | 5.84% | 7.35% | 6.16% | 1.24% | 6.8% | 6.18% | 21.76% | 16.37% | 21.54% | 23.3% | 24.15% | 29.7% | 22.74% | 22.34% | 14.88% | 26.12% | 20.92% | 25.6% | 25.85% | 45.3% | 27.17% |
| Income Tax | -556M | -977M | -175M | 61M | 557M | 668M | 450M | 503M | 170M | -849M | 394M | 438M | 338M | 463M | 473M | 375M | 582.95M | 301.88M | 194.36M | 200.57M | 221.12M | 203.29M | 210.13M | 187.25M | 103.54M | 210.03M | 154.71M | 189.5M | 158.7M | 152.4M | 74.6M |
| Effective Tax Rate % | 24.24% | 35.97% | 76.09% | -0.6% | -56.21% | 24.73% | -57.54% | -10.55% | -10.88% | -157.22% | 38.63% | 33.28% | 30.45% | 206.7% | 37.84% | 39.56% | 38.05% | 37.06% | 34.7% | 32.41% | 37.41% | 27.61% | 38.39% | 35.2% | 35.28% | 37.98% | 40.06% | 44.14% | 40.95% | 37.32% | 36.62% |
| Net Income | -1.74B | -1.74B | -55M | -10.3B | -1.55B | 2.03B | -1.23B | -5.27B | -1.73B | 1.39B | 626M | 878M | 772M | -239M | 777M | 573M | 947.71M | 647.21M | 365.73M | 418.37M | 370.03M | 334.48M | 337.24M | 344.71M | 801.62M | 343.03M | 231.47M | 239.8M | 228.8M | 256M | 129.1M |
| Net Margin % | -14.34% | -14.02% | -0.42% | -70.74% | -8.86% | 10.33% | -5.95% | -24.55% | -7.39% | 7.87% | 3.58% | 4.91% | 4.28% | -1.32% | 4.23% | 3.73% | 13.46% | 13.01% | 14.07% | 15.75% | 15.12% | 13.49% | 14.01% | 14.48% | 40.65% | 16.2% | 12.54% | 14.3% | 15.26% | 28.4% | 17.22% |
| Net Income Growth % | -455.27% | -3061.82% | 99.47% | -565.25% | -176.14% | 265.02% | 76.62% | -204.04% | -224.77% | 121.89% | -28.7% | 13.73% | 423.01% | -130.76% | 35.6% | -39.54% | 46.43% | 76.96% | -12.58% | 13.06% | 10.63% | -0.82% | -2.17% | -57% | 133.69% | 48.19% | -3.47% | 4.81% | -10.63% | 98.3% | 12.46% |
| Net Income (Continuing) | -1.74B | -1.74B | -55M | -10.3B | -1.55B | 2.03B | -1.23B | -5.27B | -1.73B | 1.39B | 626M | 878M | 772M | -239M | 777M | 573M | 949.13M | 512.63M | 365.73M | 418.37M | 370.03M | 334.48M | 337.24M | 344.71M | 189.92M | 144.15M | 124.23M | 239.8M | 228.8M | 256M | 129.1M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.13M | -1.38M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5.92M | 5.86M | 0 | 7.82M | 9.23M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -1.74 | -1.75 | -0.06 | -10.48 | -1.54 | 1.91 | -1.14 | -4.92 | -1.63 | 2.21 | 1.16 | 1.58 | 1.36 | -0.40 | 1.25 | 1.07 | 3.13 | 2.16 | 3.52 | 3.72 | 3.07 | 2.49 | 2.41 | 2.35 | 5.61 | 1.05 | 0.90 | 1.70 | 1.64 | 1.87 | 0.95 |
| EPS Growth % | -455.31% | -3041.83% | 99.47% | -580.52% | -180.63% | 267.54% | 76.83% | -201.84% | -173.76% | 90.52% | -26.58% | 16.18% | 440% | -132% | 16.82% | -65.81% | 44.91% | -38.64% | -5.38% | 21.17% | 23.29% | 3.32% | 2.55% | -58.11% | 434.29% | 16.67% | -47.06% | 3.66% | -12.3% | 96.84% | 9.2% |
| EPS (Basic) | - | -1.75 | -0.06 | -10.48 | -1.54 | 1.92 | -1.14 | -4.92 | -1.63 | 2.21 | 1.16 | 1.58 | 1.36 | -0.40 | 1.25 | 1.07 | 3.13 | 2.16 | 3.53 | 3.82 | 3.17 | 2.55 | 2.45 | 2.40 | 5.66 | 1.06 | 0.91 | 1.72 | 1.67 | 1.89 | 0.96 |
| Diluted Shares Outstanding | 998.89M | 994.55M | 987.68M | 983.08M | 1.01B | 1.07B | 1.08B | 1.07B | 1.07B | 628.69M | 540.68M | 555.09M | 569.74M | 600.89M | 622.28M | 534.12M | 301.3M | 299.7M | 102.56M | 113.09M | 122.23M | 136.09M | 142.14M | 148.78M | 142.88M | 142.31M | 141.86M | 141.43M | 140.1M | 136.88M | 135.32M |
| Basic Shares Outstanding | 998.89M | 994.55M | 987.68M | 983.08M | 1.01B | 1.06B | 1.08B | 1.07B | 1.06B | 627.81M | 539.55M | 554.28M | 568.43M | 597.5M | 620.21M | 532.78M | 300.62M | 299.3M | 102.27M | 109.36M | 116.67M | 130.84M | 137.22M | 143.58M | 141.61M | 140.74M | 140.07M | 138.85M | 137.01M | 134.95M | 134.69M |
| Dividend Payout Ratio | - | - | - | - | - | 53.47% | - | - | - | 104.61% | 186.42% | 136.45% | 159.07% | - | 233.08% | 271.55% | 92.65% | 86.63% | 60.23% | 6.94% | 7.89% | 9.53% | 9.33% | 9.29% | 3.76% | 8.35% | 11.58% | 10.59% | 10.58% | 8.87% | 16.89% |
Structural Revenue Erosion
As indicated by the most recent quarterly filings, LUMN's revenue has consistently declined, reaching $2.9 billion in 2026Q1, which represents an 8.9% year-over-year contraction as the company struggles to offset the rapid churn of legacy voice and data services with new fiber-based product adoption.
The persistent revenue decay suggests that the transition to Quantum Fiber is not yet occurring at a velocity sufficient to stabilize the top line. Investors should monitor whether the current rate of decline in legacy segments will continue to outpace the growth of next-generation enterprise services, potentially limiting the company's long-term addressable market.
Based on historical income statements, LUMN has experienced significant gross margin instability, with figures fluctuating from a low of 26.7% in 2024Q2 to a more normalized 46.5% by 2025Q4, reflecting the high fixed-cost burden inherent in maintaining a massive, aging physical telecommunications infrastructure.
The wide variance in gross margins appears to be driven by periodic network-related expenses and the lumpy nature of legacy asset decommissioning. This volatility suggests that the company lacks the pricing power or operational efficiency to maintain consistent profitability, leaving margins highly sensitive to maintenance requirements and service mix shifts.
According to reported financial data, LUMN's operating income has exhibited extreme volatility, swinging from a $603 million loss in 2025Q2 to a $602 million profit in 2026Q1, indicating that SG&A expenses remain disproportionately high relative to the company's ability to scale its core fiber revenue.
The inability to consistently leverage operating expenses against a shrinking revenue base suggests that the company's cost structure remains bloated. Future profitability may depend on whether management can successfully execute its simplification strategy to permanently reduce SG&A without further eroding the service quality required to retain enterprise clients.
As evidenced by the recurring net losses and inconsistent operating margins, the company's financial performance warrants skepticism, particularly as the 2026Q1 net loss of $200 million highlights the ongoing difficulty in achieving a sustainable bottom-line inflection despite various debt restructuring efforts and divestiture-led capital allocation.
Short-term improvements in operating income may be masking underlying structural weaknesses, such as the potential for accelerated enterprise churn as customers migrate to cheaper SD-WAN alternatives. Investors should remain cautious, as the current reliance on non-operating items and divestitures to manage the balance sheet may not be a viable long-term substitute for core operational profitability.
Quick answers to the most common questions about buying LUMN stock.
For fiscal year 2025, Lumen Technologies, Inc. (LUMN) reported total revenue of $12.40B. This represents a 1554.3% increase compared to $749.7M in 1996.
Lumen Technologies, Inc. (LUMN) reported a net loss of $1.74B for the fiscal year ending 2025.
Lumen Technologies, Inc. (LUMN) reported an operating income of $-184.0M, resulting in an operating profit margin of -1.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Lumen Technologies, Inc. (LUMN) generated $5.76B in gross profit for the year, representing a gross profit margin of 46.5%. This demonstrates the company's core pricing power and production efficiency.