Lumen Strategic Mix Reaches 55% of Business Revenue

The Tip Desk · November 10, 2026 · 3 min read

Strategic revenue was $1.28 billion, up 10% from a year earlier, as total revenue fell to $2.715 billion.

Lumen Technologies (LUMN) reported third-quarter 2026 revenue of $2.715 billion, down 12% from $3.09 billion a year earlier and down 3% from $2.805 billion in the second quarter.

The telecommunications company said Strategic revenue grew 10% year over year to $1.28 billion, representing 55% of business revenue, up from 53% in the second quarter. Business revenue was $2.346 billion, down 4% from a year earlier and down 4% sequentially from $2.444 billion.

Legacy business revenue was $1.067 billion, down 17% from $1.289 billion a year earlier and down 8% sequentially from $1.155 billion. Mass Markets revenue was $369 million, down 42% from $631 million a year earlier.

Large Enterprise revenue was $810 million, up 4% from $782 million a year earlier. Mid-Market Enterprise revenue was $430 million, down 7% from $464 million. Public Sector revenue was $429 million, down 10% from $476 million. Wholesale revenue was $607 million, down 7% from $655 million.

Adjusted EBITDA excluding Special Items was $715 million, compared with $787 million a year earlier. The company said it remains on track for an adjusted EBITDA inflection in 2026. Adjusted EBITDA margin excluding Special Items was 26.3%, versus 25.5% a year earlier.

Reported net loss was $(265) million, or $(0.26) a share, versus $(621) million, or $(0.62) a share, a year earlier. Excluding Special Items, diluted loss was $(0.14) a share versus $(0.20).

Net cash provided by operating activities was $518 million, versus $2.5 billion a year earlier. Free cash flow excluding Special Items was $(76) million, versus $1.7 billion a year earlier. As of September 30, 2026, Lumen had cash and cash equivalents of $978 million.

More than 4,000 customers were on Lumen’s Network-as-a-Service platform, with active customers up 24% sequentially and a 38% increase in active ports. Twenty percent of NaaS Internet on Demand ports carried multiple services at nearly 100% direct margin, the company said. Strategic sales rose 30% year over year and Strategic waves sales increased 22% sequentially. Lumen signed $700 million in additional PCF deals year to date, bringing cumulative signed agreements to over $13.5 billion.

The company introduced Intelligent Internet across more than 10 million U.S. locations and announced plans to accelerate copper decommissioning in Florida, Iowa, Nevada and Utah. Chief Executive Kate Johnson said the company is delivering on its transformation and building a stronger Lumen. President and Chief Financial Officer Chris Stansbury said the results show a higher-quality revenue base with stronger margins and more operating leverage, and that Lumen remains on track to deliver adjusted EBITDA inflection this year and return to business revenue growth in 2028.

Lumen reiterated its full-year 2026 outlook of adjusted EBITDA excluding Special Items of $3.1 to $3.3 billion and free cash flow excluding Special Items of $1.9 to $2.1 billion.