ATN International, Inc. Q1 FY2026 earnings call

• Core telecom revenues grew 3% year over year driven by business, carrier services, and other ancillary revenues offsetting subsidy-related decline. • Delivered operating income of $11.7 million for the quarter, up $9 million versus last year, driven by revenue growth, cost management efforts, and reduced depreciation and amortization expense. • Incurred approximately $2 million of restructuring and reorganization expenses in Q1 and expect $1 million to $2 million more in Q2. • Total adjusted EBITDA for the quarter was 49 million, up 10% year-over-year, with margin improving 200 basis points to 26.7%. • In international segment, steady top line growth and margin expansion with total revenue up 2%, adjusted EBITDA up 6%. • In domestic segment, revenue up about 2%, adjusted EBITDA up 11%. • Ended quarter with $123 million in cash, cash equivalents, and restricted cash, up $6 million from year end. • Total debt was $570 million, up $5 million from end of 2025, net debt ratio improved to 2.3 times. • Net cash from operating activities decreased by ~$6 million due to higher working capital requirements. • Capital expenditures flat at 21 million, reimbursable capex spend declined to 14 million. • ComNet subsidiaries entered into agreement to sell 214 towers and related operations in SW US for up to 297 million, initial closing expected in Q2 with gross cash proceeds $250 million to $270 million, additional closings tied to milestones. • Excluding tower transaction, expected full year 2026 adjusted EBITDA to increase modestly from 2025 levels in $190 million to $200 million, reduction of ~$6 million to $8 million after initial tower sale close. • Plan to reassess and update 2026 full year outlook after initial closing. • Capital expenditures net of reimbursable spending expected to remain in $105 million to $115 million range. • Encouraged by recent performance and 2026 outlook reflecting focus on improving margins, expanding cash flow generation, and maintaining healthy balance sheet. • Focus to translate observations into concrete action for long-term value creation.

International Segment: Total revenue increased 2% to 96 million, adjusted EBITDA was $34 million, up 6% from the same period last year. Revenue growth reflects carrier services, other ancillary revenues, business and post-paid consumer mobility subscribers growth offsetting prepaid mobility subs decline. Fixed consumer revenue declined due to end of government support. On like-to-like basis, revenues grew 3% normalizing support revenue impact. Higher revenue and lower costs drove adjusted EBITDA increase and margin expanded by 140 basis points to 35.7%. Domestic Segment: Revenue was 86 million, up about 2% year-over-year. Adjusted EBITDA increased 11% to 19 million. Higher carrier services revenue from key projects and fixed business revenues offset absence of construction revenues. Normalizing construction revenues, revenues up 3% year-over-year. Higher revenue levels and cost discipline drove profitability increase.

• ComNet subsidiaries expect initial closing of tower sale in Q2 with gross cash proceeds $250 million to $270 million, additional closings totaling $27 to $47 million over following 12 months tied to construction and operational milestones. • Excluding tower transaction, expect full year 2026 adjusted EBITDA to increase modestly from 2025 levels in $190 million to $200 million. • Following initial tower sale close in Q2, expect reduction in annual adjusted EBITDA of approximately $6 million to $8 million. • Plan to reassess and update 2026 full year outlook after initial closing. • Expect capital expenditures net of reimbursable spending to remain in range of $105 million to $115 million for 2026.

Q: Why did you stop disclosing total broadband, homes past, and subscribers?

A: Felt it included legacy products being decommissioned, focusing on high-speed SAPs where effort and investment are put.

Q: What's the biggest bottleneck in driving faster growth or adoption in markets post-investment phase?

A: Believed there's been good monetization, some competition especially on mobility side, also need to focus on migration from copper network but everything indicates heading in right direction.

Q: Update around BEAT or other government subsidy programs?

A: Working through existing programs worth couple hundred million bucks, provisional awards of BEAT over ~140 million in total between Southwest and Alaska, BD not having significant impact on 2026 yet as process not completed.