Welcome to the GCI Liberty 2025 Q2 Earnings Call. [Operator Instructions] As a reminder, this conference will be recorded as of today, August 7, 2025. I would now like to turn the call over to Shane Kleinstein, Senior Vice President of Investor Relations. Please go ahead.

Thank you, and good morning. Before we begin, we'd like to remind everyone that this call includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in the prospectus forming part of GCI Liberty's registration statement and the most recent Forms 10-Q filed by GCI Liberty and Liberty Broadband with the SEC. These forward-looking statements speak only as of the date of this call, and GCI Liberty and Liberty Broadband expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in GCI Liberty or Liberty Broadband's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. On today's call, we will discuss certain non-GAAP financial measures for GCI Liberty, including adjusted OIBDA, adjusted OIBDA margin and free cash flow. Information regarding the required definitions, along with comparable GAAP metrics and reconciliations, including Schedule 1, can be found in the earnings press release issued today, which is available on GCI Liberty's website. Today speaking on the call, we have Ron Duncan, CEO of GCI Liberty; Brian Wendling, GCI Liberty's Chief Accounting and Principal Financial Officer. And also during Q&A, will answer questions related to Liberty Broadband. Members of both GCI and Liberty Broadband management will be available to answer questions during the Q&A portion. With that, I will turn the call over to Ron.

Good morning. We were pleased to complete the spin-off of GCI Liberty from Liberty Broadband last month, allowing me to speak to you today on our first quarterly call as a once again public company. 2025 is off to a great start. GCI continues to lead in the provision of statewide service to all of our customers. This has been a particular value to our rural health and education customers. In the last 12 months, we have achieved significant upsells in this segment as rural schools and clinics have purchased additional bandwidth. We grew consumer wireless subscribers 1% year-over-year, ending the quarter with 207,000 subscribers. During the quarter, we added 4,700 consumer wireless lines. On the data side, we saw a 3% decline year-over-year, ending the quarter with 154,500 cable modem subscribers. During the quarter, we lost 1,300 data subscribers. The decline of data subs over the past year is largely due to the elimination of the ACP program in 2024, the fiber break on a third-party network in which GCI uses capacity, Starlink competition and wireless substitution. Financially, these results have translated into a record last 12 months OIBDA of $405 million as of the second quarter. The USF challenge at the Supreme Court, which had been an overhang on our business and led to a negative credit watch earlier in the year, has been definitively and favorably resolved. Looking at several other financial highlights. In March, we successfully refinanced our senior credit facility and pushed out maturities to 2030 and 2031. In the second quarter, we were able to reduce our net debt by $86 million, bringing our total leverage down to 2.3x as defined by our credit agreement. The combination of these events led S&P to eliminate the negative credit watch and raise our credit rating in…

Thank you, Ron, and good morning, everyone. As Ron said, the GCI Liberty spin-off from Liberty Broadband was completed on July 14. Holders of Liberty Broadband common stock received 0.2 shares of the corresponding series of GCI Liberty common stock per share of the corresponding series of Liberty Broadband common stock held on record as of that date and on the record date. At quarter end, GCI Liberty had consolidated cash, cash equivalents and restricted cash of $117 million and total principal amount of debt of approximately $1 billion. As a reminder, GCI refinanced its senior credit facility in March with a $450 million revolver that matures in 2030 and a $300 million Term Loan A that matures in 2031. At quarter end, GCI's leverage as defined by its credit agreement was 2.3x, and GCI's credit facility had $377 million of undrawn capacity net of letters of credit. Prior to the spin-off and subsequent to quarter end, $10 million of nonvoting preferred stock of GCI Liberty was issued to Liberty Broadband and then sold by Liberty Broadband to third-party buyers. The GCI Liberty nonvoting preferred stock pays a 12% dividend with a redemption date in 2032. Now looking at GCI's results, GCI generated total revenue of $261 million, representing 6% growth in the second quarter. Adjusted OIBDA of $108 million increased 26%. Results in the quarter continued to benefit from a strong upgrade cycle in schools and health care corporations that began in the third quarter of 2024 as well as growth in consumer wireless and cost efficiencies. Note, we expect a slowdown in adjusted OIBDA growth in the back half of this year, partially driven by fully lapping the upsell cycle in schools that began in the third quarter of '24. Additionally, we have benefited from several other onetime…

Thank you, Brian. We appreciate your interest in GCI Liberty and look forward to continuing to update you on our progress. With that, we'll open the call up for Q&A.

[Operator Instructions] And we have a question from Barry Sine with Litchfield Hills Research, which will be our last question on the call.

I wanted to ask about your acquisition strategy. On the June 3 call you guys did, you spoke about acquisitions likely being a key part of your strategy. And if I think about the Alaska telecom environment, you've tried buying a TV station, Quintillion has scour issues, MTA is a co-op. You could always buy the Iditarod. Liberty has created a lot of value at Formula 1. Would you go out of Alaska? Would you go out of your industry? What are your criteria for acquisitions?

Thank you, Barry. Yes, I think buying Iditarod would be great, and we'll turn that into international sport and infuriate Pet beyond all belief. Obviously, there's not a lot of attractive acquisitions of scale in Alaska. So any acquisition strategy would largely be directed out of state. It wouldn't necessarily be within the business we're currently in today. I don't think we're looking at leveraging the operating resources of GCI in any future acquisition strategy rather than the financial resources and the tax assets. That said, GCI as a public company is not quite 4 weeks old. We haven't had our first full quarterly Board meeting yet, and we don't have a developed list of acquisition targets or even necessarily a list of priorities and strategy for that. You'll have to give us a little more time to develop that. But obviously, we have a lot of cash flow to deploy, and we have a lot of tax asset that can be accelerated. So with that, I think we are done for this quarter, and we appreciate your interest in GCI. We look forward to getting back to you at the end of the next quarter. Thank you.

Thank you. This concludes today's conference. You may disconnect your lines at this time. Enjoy the rest of your day.