TLDR
- LICT stock rises 0.43% as Q1 revenue improves to $35.7 million.
- Net income drops 56.1% as costs and investment losses pressure profit.
- EBITDA reaches $14 million, though margin narrows to 39.1%.
- Broadband expansion supports revenue but raises operating expenses.
- LICT plans larger credit facility to fund broadband buildout projects.
LICT Corporation reported higher first-quarter revenue and EBITDA, while rising costs and investment losses reduced net income sharply. Revenue increased 3.2% to $35.7 million, but net income fell 56.1% to $1.8 million. LICT stock edged 0.43% higher to $11,750, with limited movement during the session.
LICT Revenue Growth Supports Higher EBITDA
LICT generated $35.7 million in first-quarter revenue, compared with $34.6 million during the same period last year. Non-regulated revenue climbed 4% to $20.2 million, while regulated revenue increased to $15.5 million. Broadband growth, federal support, and fiber construction revenue drove the overall increase.
EBITDA increased by $200,000 to $14 million, compared with $13.8 million one year earlier. The EBITDA margin narrowed to 39.1% from 39.9% because operating costs increased. LICT spent more on broadband expansion, staffing, professional services, repairs, and network development.
Non-regulated EBITDA rose 3.4% to $7.7 million, supported by broadband revenue and fiber project construction. Regulated EBITDA declined 1.8% to $6.3 million because operating expenses increased. Operating profit also dropped to $4.1 million from $5.6 million during the previous year.
Net Income Falls as Expenses Increase
LICT reported first-quarter net income of $1.8 million, down from $4.1 million in 2025. Earnings per share fell to $119 from $256, reflecting weaker profit despite higher quarterly revenue. Several operating and non-cash expenses reduced the company’s bottom-line performance.
The company recorded a $1.2 million unrealized investment loss during the quarter. In contrast, LICT reported a $424,000 unrealized gain during the first quarter of 2025. Depreciation and amortization also increased by $1.1 million following recent infrastructure investment.
Cost of revenue rose by $500,000 as LICT expanded staffing and maintenance work in New Mexico and Utah. General, administrative, and corporate costs also increased during the reporting period. Stronger revenue and a $900,000 reduction in income tax provisions partly limited the decline.
Broadband Expansion Drives Capital Spending
LICT spent $14.1 million on capital projects during the first quarter, down from $15.5 million last year. The company received $4.5 million in grants related to broadband network expansion programs. Net capital spending reached approximately $9.6 million for the quarter.
The company operated 8,286 miles of fiber cable by March, adding 102 miles since December. LICT also reported 50,939 broadband connections, although total broadband customers declined slightly during the quarter. Fiber subscriber growth partly offset lower fixed wireless subscriptions as some customers changed services.
LICT carried $82.5 million in net debt, while its leverage ratio remained at 1.9 times EBITDA. The company plans to expand its revolving credit facility from $100 million to $150 million. It also expects potential fiber contracts worth more than $60 million through early 2029.
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