Liberty Latin America NASDAQ: LILA executives told investors the company opened 2026 with what CEO Balan Nair described as a “very solid performance,” highlighted by mobile postpaid subscriber growth, stronger-than-expected adjusted operating cash flow and an improved free cash flow trajectory despite ongoing hurricane-related impacts in Jamaica.
Mobile postpaid growth and Jamaica recovery drive Q1 outperformance
Nair said Liberty Latin America added 50,000 mobile postpaid subscribers in the first quarter, with “all segments across the group contributing.” He attributed the growth to fixed-mobile convergence initiatives and continued migration from prepaid to postpaid plans.
The company reported $405 million of adjusted OIBDA in Q1 2026, which Nair said came in ahead of internal expectations, led by Jamaica and Liberty Caribbean. CFO Chris Noyes said revenue totaled $1.1 billion, “consistent with last year,” reflecting a 1% rebased decline. Both executives pointed to specific headwinds weighing on year-over-year comparisons, including a full quarter of Hurricane Melissa impacts, project timing and cost/revenue phasing in B2B, and a change in the Costa Rican fixed residential equipment business model.
Nair said adjusted free cash flow before distributions to non-controlling interests improved materially versus last year, even with hurricane effects. Noyes quantified adjusted free cash flow before partner distributions at negative $64 million in Q1, which he said was $40 million better year-over-year, driven by stronger cash flow from operations and lower capital spending. He also noted seasonality, saying working capital in the first quarter is “always constrained” after a typically strong fourth quarter, and that free cash flow is “highly weighted to later in the year.”
In Jamaica, Nair said the business is recovering faster than anticipated. He cited the speed of reconnecting homes to the residential fixed network and continued mobile strength. Nair said the company’s direct-to-cell connectivity during the hurricane supported customer affinity, and he noted that the network was recognized by Ookla as the fastest mobile network on the island in the second half of 2025.
Preferred stock dividend and renewed share repurchases
Management also outlined capital return actions and balance sheet updates. Nair announced the company’s intent to distribute a $500 million notional amount of preferred equity as a dividend, carrying a 9% cash-paid rate. Noyes said the company expects to complete the distribution before the end of Q2, describing the structure as providing shareholders “an attractive cash pay security” and “a regearing of our equity,” adding that the company is “leaning into the levered equity model” based on its conviction in future free cash flow generation.
Nair said the company also resumed share repurchases during the quarter for the first time since the first half of 2024. Noyes said the company had roughly $184 million remaining under board authorization at quarter end, while Nair cited approximately $185 million remaining and said the company would remain opportunistic.
Segment updates: hurricane impacts, B2B timing, and new product initiatives
Liberty Caribbean (including Jamaica): Noyes said Liberty Caribbean reported $355 million in revenue and $163 million in adjusted OIBDA, with year-over-year declines primarily due to the hurricane, including a $12 million negative revenue effect. Nair said Liberty Caribbean added 15,000 postpaid subscribers in the quarter, including 11,000 in Jamaica. He said Jamaica experienced a seasonal drop in prepaid subscribers versus Q4, but the company “took an opportunity to increase price” and posted strong prepaid revenue growth year-over-year. He added that the fixed business “felt the brunt of the hurricane,” though residential fixed broadband net additions remained positive.
Nair said revenue-generating residential customers in Jamaica fell by more than 110,000 through Q4 after Hurricane Melissa, but the company added back 30,000 such customers in Q1. He said Liberty Latin America is now “more optimistic” about reconnecting customers previously removed from fixed counts, as power has returned and network mapping has been updated. Nair reiterated prior targets discussed at full-year 2025 results—returning to run-rate Jamaican adjusted OIBDA by year-end and limiting negative 2026 free cash flow impact to up to $100 million—adding that the company is increasingly confident it will land “on the right side” of those goals, “especially on free cash flow.”
Cable & Wireless Panama: Nair said Panama’s first quarter tends to be seasonally quieter for B2B after a strong Q4, but highlighted residential initiatives and mobile postpaid growth. He said postpaid subscribers grew 10% year-over-year, supported by customer value management using data analytics for upsell and cross-sell, and that fixed-mobile convergence penetration is “over 40%,” while postpaid churn is at historically low levels. Nair said prepaid trends were positive but were pressured by a regulatory pushback on certain price increases; he highlighted adoption of a loyalty program and value-added services such as cash advances, trivia and gaming. Noyes said CWP posted $176 million in revenue and $64 million in adjusted OIBDA, down 1% year-over-year on a rebased basis, as growth in fixed and mobile was offset by B2B declines tied to government contract pricing negotiations and seasonal timing.
Liberty Networks: Both executives pointed to underlying demand for subsea capacity. Nair said wholesale demand from international and regional carriers and hyperscalers remains healthy. Noyes said Liberty Networks generated $121 million in revenue (7% rebased growth) while adjusted OIBDA declined 5% to $55 million, impacted by the timing of El Salvador project costs. Noyes added the company recognized $7 million of El Salvador subsea build costs in Q1 without corresponding revenue. Nair described two major projects—Manta, in build through 2027 with elevated CapEx and working capital ahead of go-live, and El Salvador, where milestone-based revenue and costs are “lumpy.”
Liberty Costa Rica: Nair said Costa Rica remains the company’s most competitive fixed market, with five national players and additional regional competition. He said the fixed residential subscriber base is broadly stable but ARPU is pressured by downward front-book pricing over the past year. Noyes said Costa Rica posted $158 million in revenue and $57 million in adjusted OIBDA, down 4% and 8% year-over-year on a rebased basis, driven by lower residential fixed and B2B revenue, ARPU pressure, and reduced equipment sales under the “buy to own” model. Nair also announced Liberty Costa Rica signed an agreement with Starlink to launch a direct-to-cell service, branded “Liberty-Starlink,” planned for the second half of 2026. He said the service is intended to provide connectivity in rural, mountainous, maritime and other hard-to-reach areas, including national parks, and to support both consumer and corporate clients.
Liberty Puerto Rico: Nair said Puerto Rico’s mobile business posted positive postpaid additions for the second consecutive quarter, helped by commercial value propositions such as Liberty SIMple, a subsidy-free postpaid SIM offer. He said the postpaid port-in/port-out ratio exceeded 1 in April, indicating postpaid market share growth. Noyes said Liberty Puerto Rico revenue was $296 million (down 1%), while adjusted OIBDA rose 12% to $91 million, largely due to cost improvements including lower labor and bad debt expense. Nair added that the company’s focus has shifted back toward residential fixed, citing improved fixed NPS, lower churn closer to pre-migration levels and diminishing net broadband losses that recently “disappear[ed] almost entirely.”
Leverage, liquidity, and Puerto Rico liability management
Noyes said Liberty Latin America ended the quarter with $8.4 billion of total debt and $1.5 billion of liquidity, including just under $700 million in cash and almost $800 million available under committed credit lines. Consolidated net leverage was 4.5x, and Noyes said excluding Puerto Rico leverage would bring leverage to the “mid-3s.” He said more than 75% of borrowings are due in 2031 and beyond.
In Puerto Rico, Noyes said the credit silo has $3 billion of total debt, with borrowing group net leverage of 8x and covenant leverage of restricted subsidiaries of 14x. He said Liberty Puerto Rico borrowed the remaining $50 million under its unrestricted subsidiary facility during the quarter, bringing total proceeds under that facility to $250 million and strengthening liquidity. He added that the company continues evaluating liability management options “to maximize value,” which “may or may not include direct engagement with its lenders and bondholders.”
Analyst Q&A: pricing discipline and energy costs
During the Q&A, Benchmark’s Matthew Harrigan asked about front-book and back-book pricing dynamics, citing Costa Rica and broader industry examples. Nair responded that the company has been “very disciplined” with front-book pricing, saying that between 2019 and 2024 it did not take price increases “anywhere,” resulting in competitive front-book positioning. He described Costa Rica as an “aberration,” and said Liberty is willing to “play the ARPU game to hang on to market share,” emphasizing the importance of maintaining share in competitive markets.
New Street Research’s David Lopes asked about the impact of rising energy costs. Nair said the company remains focused on costs and expects further improvements, including through expanded use of AI, noting Liberty has implemented AI on the front line and is working on back-office deployment. Noyes added that energy costs are “roughly 2% of revenue” overall, and said network upgrades and topology improvements have helped reduce energy usage over time, with mitigation strategies available if regional energy prices rise.
Closing the call, Nair said management’s announcements reflect “significant confidence” in Liberty Latin America’s business and future free cash flow growth prospects, and he also highlighted what he called John Malone’s increased investment in the company.
About Liberty Latin America NASDAQ: LILA
Liberty Latin America is a telecommunications company that provides video, broadband internet, telephony and mobile services across Latin America and the Caribbean. The company's operations span consumer and business markets, offering cable television packages, high-speed broadband connections, fixed-line voice services and wireless data plans. Through its brands, including Flow in several Caribbean territories and VTR in Chile, Liberty Latin America focuses on delivering converged digital solutions designed to meet both residential and enterprise needs.
Formed in 2018 as a spin-off from Liberty Global, Liberty Latin America built its initial footprint by integrating legacy assets acquired from Cable & Wireless Communications and Columbus Communications.
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