Lumen Technologies, Inc.

General

Reconciliation of segment revenue to total operating revenue is below:

Reconciliation of Total adjusted EBITDA to net (loss) income and segment adjusted EBITDA to total adjusted EBITDA is below:

Adjusted EBITDA is a non-GAAP financial measure and excludes (i) income tax (benefit) expense, (ii) other expense, net, which is inclusive of the net (loss) gain on extinguishment and modification of debt, interest income, and interest expense, (iii) depreciation and amortization expense, (iv) goodwill impairments and (v) non-cash stock compensation. We believe Adjusted EBITDA is a relevant and useful metric to provide to investors, is an important part of our internal reporting and is a key non-GAAP measure used by management to evaluate profitability and operating performance of Lumen and to make resource allocation decisions. There are material limitations to using Adjusted EBITDA as a financial measure, including the difficulty associated with comparing companies that use similar performance measures whose calculations may differ from our calculations. Additionally, by excluding the above-listed items, Adjusted EBITDA may exclude items that investors believe are important components of our performance. Adjusted EBITDA should not be considered a substitute for other measures of financial performance reported in accordance with GAAP.

For additional information on our reportable segments and product and services categories, see Note 4—Revenue Recognition and Note 11—Segment Information to our consolidated financial statements in Item 1 of Part I of this report.

Business Segment

Three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024

Business segment revenue decreased $88 million and $155 million, respectively, for the three and six months ended June 30, 2025, as compared to the comparable periods ended June 30, 2024. Within each product category for the three and six months ended June 30, 2025 as compared to the comparable periods ended June 30, 2024:

•Grow increased by $64 million and $141 million, respectively, primarily due to an increase of revenue from dark fiber and conduit of $37 million and $88 million and growth in IP services of $17 million and $36 million, respectively;

•Nurture decreased by $116 million and $226 million, respectively, primarily due to declines in traditional VPN services of $91 million and $179 million and declines in Ethernet services of $26 million and $52 million, respectively;

•Harvest decreased by $14 million and $62 million, respectively, primarily due to a $38 million and $81 million decline in legacy voice services and a $17 million and $29 million decline in other legacy products and services, respectively, partially offset by an increase in private line revenue of $43 million and $58 million attributable primarily to temporary rate increases; and

•Other decreased by $22 million and $8 million, respectively, primarily due to decreases in equipment sales revenue of approximately $18 million and $8 million, respectively.

Business segment expense decreased by $76 million and $141 million for the three and six months ended June 30, 2025, respectively, as compared to the three and six months ended June 30, 2024, primarily driven by a decrease of $11 million and $68 million, respectively, in employee-related costs due to lower headcount and $70 million in overall network expense for both the three and six months ended June 30, 2025.

Business segment adjusted EBITDA as a percentage of segment revenue was 46% for both the three and six months ended June 30, 2025 and 45% for both the three and six months ended June 30, 2024.

Mass Markets Segment

Three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024

Mass Markets segment revenue decreased $88 million and $129 million for the three and six months ended June 30, 2025, respectively, as compared to the three and six months ended June 30, 2024. More specifically, within each product category:

•Fiber Broadband revenue increased $36 million and $75 million, respectively, primarily driven by growth in the number of fiber customers associated with our continued increase in enabled locations from our Quantum Fiber buildout;

•Other Broadband revenue decreased $53 million and $111 million, respectively, primarily due to fewer customers for our lower speed copper-based broadband services; and

•Voice and Other decreased $71 million and $93 million, respectively, principally due to the continued loss of copper-based voice customers and a decrease of $46 million due to the relinquishment of our funding received under the FCC's RDOF. See the "Liquidity and Capital Resources—Federal Broadband Support Programs" in Item 2 of Part I below for more information.

Mass Markets segment expense decreased $29 million and $68 million for the three and six months ended June 30, 2025, respectively, as compared to the three and six months ended June 30, 2024, primarily driven by decreases of (i) $12 million and $30 million, respectively, in employee-related costs due to lower headcount, (ii) $6 million and $11 million, respectively, in marketing and advertising expense, (iii) $4 million and $6 million, respectively, in professional fees, and (iv) $6 million and $11 million, respectively, in overall network expense.

Mass Markets segment adjusted EBITDA as a percentage of segment revenue was 53% and 55% for the three and six months ended June 30, 2025 and 54% and 55% for the three and six months ended June 30, 2024, respectively.