Lumen Technologies, Inc.

RESULTS OF OPERATIONS

The following table summarizes the results of our consolidated operations:

Operating Revenue

The following table summarizes our consolidated operating revenue recorded under our revenue categories described in Note 4—Revenue Recognition:

Operating revenue decreased $372 million and $942 million. The following were primary drivers within each revenue category:

•Strategic revenue increased $112 million and $378 million. This was primarily as a result of:

◦an increase of $59 million and $239 million in revenue from dark fiber and conduit; and

◦an increase of $12 million and $48 million from growth in IP services.

•Legacy revenue decreased $222 million and $614 million. This was primarily as a result of:

◦a decrease of $65 million and $215 million in VPN services; and

◦a decrease of $84 million and $238 million in voice services and private line services.

•Fiber Broadband revenue decreased $208 million and $525 million. This was primarily as a result of:

◦fewer Mass Markets subscribers as a result of our divestiture of the Mass Markets Fiber-to-the-Home business, as further described above.

•Other Broadband revenue decreased $51 million and $156 million. This was primarily as a result of:

◦fewer Mass Markets customers for our low speed copper-based broadband services.

•Voice and Other revenue decreased $3 million and $25 million. This was primarily as a result of:

◦a decrease of $90 million in voice revenue, for the nine month period, and offsetting increases of $46 million and $27 million, respectively, due to the withdrawal from the Rural Digital Opportunity Fund ("RDOF") program and the revenue related to support payments received under the Federal

Communications Commission's Connect America Fund Phase II program, which lapsed on December 31, 2021.

Operating Expenses

The following table summarizes our operating expenses:

nm Percentages greater than 200% and comparisons between positive and negative values or to/from zero values are considered not meaningful.

Cost of Services and Products (exclusive of depreciation and amortization)

Cost of services and products (exclusive of depreciation and amortization) decreased $268 million and $729 million. This was primarily as a result of:

•a decrease of $128 million and $418 million in network expense;

•a decrease of $188 million and $420 million in employee-related expenses; and

•an offsetting increase of $67 million and $119 million in professional fees.

Selling, General and Administrative

Selling, general and administrative expenses decreased $45 million and increased $98 million. This was primarily as a result of:

•for the three month period, a decrease of $85 million, $23 million and $14 million in professional fees, property and other tax expenses, and marketing and advertising expenses, respectively; and an offsetting increase of $64 million and $16 million in employee-related expenses and hardware and software expenses, respectively; and

•for the nine month period, an increase of $195 million and $72 million in employee-related expenses and hardware and software expenses, respectively; and an offsetting decrease of $60 million, $31 million, $17 million and $15 million in professional fees, marketing and advertising expenses, external commissions, property and other tax expenses, respectively.

Net Gain on Sale of Business

For a discussion of the net gain on sale of business that we recognized during the nine months ended September 30, 2026, see Note 2—Divestiture and Acquisition.

Depreciation and Amortization

The following table details our depreciation and amortization expense:

Depreciation decreased $17 million and $85 million. This was primarily as a result of:

•a decrease of $64 million, for the nine month period, due to the discontinuation of the depreciation of the tangible assets of our Mass Markets Fiber-to-the-Home business held for sale during the second quarter of 2025; and

•a decrease of $15 million and $12 million associated with the net decrease in depreciable assets.

Amortization increased $13 million and $12 million. This was primarily as a result of:

•an increase of $6 million for both periods due to intangibles acquired as part of the Alkira acquisition.

Goodwill Impairment

We are required to perform impairment tests related to our goodwill annually, which we perform as of October 31, or sooner if an indicator of impairment occurs. See Note 3—Goodwill and Intangible Assets for further details.

Other Consolidated Results

The following table summarizes our total other expense, net and income tax (benefit) expense:

nm Percentages greater than 200% and comparisons between positive and negative values or to/from zero values are considered not meaningful.

Interest Expense

Interest expense decreased $130 million and $389 million. This was primarily as a result of:

•a decrease in average outstanding long-term debt of $5 billion and $3 billion.

Net Gain (Loss) on Early Retirement of Debt

For a discussion of certain transactions that resulted in the net gain (loss) on debt we recognized for the three and nine months ended September 30, 2026, see Note 5—Long-Term Debt and Credit Facilities. See Note 7—Long-Term Debt and Credit Facilities to the consolidated financial statements in Item 8 of Part II of our Annual Report on Form 10-K for the year ended December 31, 2025 for discussion of the 2025 transactions that resulted in the net loss on debt recognized for the three and nine months ended September 30, 2025.

Other Income, Net

Other income, net reflects certain items not directly related to our core operations, including:

Income Tax Expense

Our effective tax rate was as follows:

Our effective tax rate for the nine months ended September 30, 2026 was driven primarily by tax attributable to nondeductible goodwill from the Mass Markets Fiber-to-the-Home divestiture. Our effective tax rate for the nine months ended September 30, 2025 includes a $42 million unfavorable impact from our goodwill impairment.