# EDGAR Filing Document

**Accession Number:** 0000716133
**File Stem:** 0000950170-25-107969
**Filing Date:** 2025-8
**Character Count:** 190737
**Document Hash:** eabb0a420901c6575bf082ad561f532b
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000950170-25-107969.hdr.sgml**: 20250813

**ACCESSION NUMBER**: 0000950170-25-107969

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 80

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250813

**DATE AS OF CHANGE**: 20250813

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** CINCINNATI BELL INC
- **CENTRAL INDEX KEY:** 0000716133
- **STANDARD INDUSTRIAL CLASSIFICATION:** TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 311056105
- **STATE OF INCORPORATION:** OH
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-08519
- **FILM NUMBER:** 251211226

**BUSINESS ADDRESS:**
- **STREET 1:** 221 E FOURTH ST
- **CITY:** CINCINNATI
- **STATE:** OH
- **ZIP:** 45202
- **BUSINESS PHONE:** 513-397-9900

**MAIL ADDRESS:**
- **STREET 1:** P O BOX 2301
- **CITY:** CINCINNATI
- **STATE:** OH
- **ZIP:** 45201

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** BROADWING INC
- **DATE OF NAME CHANGE:** 20000512

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** CINCINNATI BELL INC /OH/
- **DATE OF NAME CHANGE:** 19920703

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** CBI INC
- **DATE OF NAME CHANGE:** 19830814

?xml version='1.0' encoding='ASCII'? 10-Q

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM** 10-Q

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** 

**For the Quarterly Period Ended** **June 30,** 2025

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from to** 

**Commission File Number** 1-8519

CINCINNATI BELL INC.

---

| | |
|:---|:---|
| Ohio | 31-1056105 |
| **(State of Incorporation)** | **(I.R.S. Employer Identification No.)** |

---

221 East Fourth Street**,** Cincinnati**,** Ohio 45202

**(Address of principal executive offices) (Zip Code)**

**(**513**)** 397-9900

**(Registrant's telephone number, including area code)**

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☐ No ☒

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (**§** 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☐ |
|  |  | Emerging growth company | ☐ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Securities Registered Pursuant to Section 12(b) of the Act:

**As of June 30, 2025, there were 100 common shares of the Company outstanding, all of which were held by Red Fiber Parent LLC. The Company is filing this Form 10-Q with the SEC on a voluntary basis.**

------

**TABLE OF CONTENTS**

**<u>PART I. Financial Information</u>**

---

| | | |
|:---|:---|:---|
| Description |  | Page |
| Item 1. | Financial Statements |  |
|  | [<u>Condensed Consolidated Statements of Operations (Unaudited)</u>](#condensed_consolidated_statements_operat) | 1 |
|  | [<u>Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)</u>](#condensed_consolidated_comprehensive_inc) | 2 |
|  | [<u>Condensed Consolidated Statements of Equity (Deficit) (Unaudited)</u>](#condensed_consolidated_shareowners_equit) | 3 |
|  | [<u>Condensed Consolidated Balance Sheets (Unaudited)</u>](#condensed_consolidated_bs) | 4 |
|  | [<u>Condensed Consolidated Statements of Cash Flows (Unaudited)</u>](#condensed_consolidate_cash_flows) | 5 |
|  | [<u>Notes to Condensed Consolidated Financial Statements (Unaudited)</u>](#notes_to_condensed_consolidated_financia) | 6 |
| Item 2. | [<u>Management's Discussion and Analysis of Financial Condition and Results of Operations</u>](#item_2___managements_discussion_analysis) | 26 |
| Item 3. | [<u>Quantitative and Qualitative Disclosures about Market Risk</u>](#item_3___quantitative_qualitative_disclo) | 37 |
| Item 4. | [<u>Controls and Procedures</u>](#item_4___controls_procedures) | 37 |
|  | **<u>PART II. Other Information</u>** |  |
| Item 1. | [<u>Legal Proceedings</u>](#item_1___legal_proceedings) | 38 |
| Item 1A. | [<u>Risk Factors</u>](#item_1a___risk_factors) | 38 |
| Item 2. | [<u>Unregistered Sales of Equity Securities and Use of Proceeds</u>](#item_2___unregistered_sales_equity_secur) | 38 |
| Item 3. | [<u>Default upon Senior Securities</u>](#item_3___defaults_upon_senior_securities) | 38 |
| Item 4. | [<u>Mine Safety Disclosure</u>](#item_4___mine_safety_disclosure) | 38 |
| Item 5. | [<u>Other Information</u>](#item_5___or_information) | 38 |
| Item 6. | [<u>Exhibits</u>](#item_6___exhibits) | 39 |
|  | [<u>Signatures</u>](#signatures) | 40 |

---

------

Cincinnati Bell Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in millions)

(Unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended <br>June 30,** | **Three Months Ended <br>June 30,** | **Six Months Ended <br>June 30,** | **Six Months Ended <br>June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| **Revenue** | $274.8 | $272.8 | $551.2 | $544.4 |
| **Costs and expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of services and products, excluding items below | 120.8 | 132.1 | 242.9 | 265.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative, excluding items below | 55.0 | 62.9 | 110.0 | 126.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 87.3 | 80.3 | 171.9 | 157.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring and severance related charges | (0.2) | (0.3) | 3.5 | (0.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Transaction and integration costs | 0.5 |  | 0.8 | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating costs and expenses | 263.4 | 275.0 | 529.1 | 549.4 |
| **Operating income (loss)** | 11.4 | (2.2) | 22.1 | (5.0) |
| Interest expense | 33.2 | 45.3 | 66.3 | 86.9 |
| Other components of pension and postretirement benefit plans benefit | (1.2) | (1.0) | (2.6) | (1.5) |
| Other income, net | (3.1) | (6.5) | (10.2) | (36.5) |
| Loss from continuing operations before income taxes | (17.5) | (40.0) | (31.4) | (53.9) |
| Income tax expense (benefit) | 0.6 | (2.6) | 1.1 | 31.2 |
| Loss from continuing operations | (18.1) | (37.4) | (32.5) | (85.1) |
| Income (loss) from discontinued operations (net of tax) |  | 3.1 | (13.9) | 9.9 |
| **Net loss** | $(18.1) | $(34.3) | $(46.4) | $(75.2) |

---

The accompanying notes are an integral part of the condensed consolidated financial statements.

------

Cincinnati Bell Inc.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Dollars in millions)

(Unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended <br>June 30,** | **Three Months Ended <br>June 30,** | **Six Months Ended <br>June 30,** | **Six Months Ended <br>June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Net loss | $(18.1) | $(34.3) | $(46.4) | $(75.2) |
| Other comprehensive income (loss), net of tax: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation loss |  | (1.0) |  | (3.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;Defined benefit plans: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net (loss) gain arising from remeasurement during the period, net of tax of $0.0, ($0.9), $0.4, ($0.9) |  | (2.8) | 1.2 | (2.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of prior service benefits included in loss from continuing operations, net of tax of $0.0, $0.0, ($0.1), ($0.1) | (0.2) | (0.2) | (0.3) | (0.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of net actuarial gain included in loss from continuing operations, net of tax of ($0.3), ($0.3), ($0.6), ($0.5) | (1.0) | (0.8) | (1.9) | (1.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Settlement gains reclassified to loss from continuing operations, net of tax of ($0.2), ($0.1), ($0.4), ($0.1) | (0.6) | (0.3) | (1.4) | (0.3) |
| Total other comprehensive loss | (1.8) | (5.1) | (2.4) | (8.5) |
| Total comprehensive loss | $(19.9) | $(39.4) | $(48.8) | $(83.7) |

---

The accompanying notes are an integral part of the condensed consolidated financial statements.

------

Cincinnati Bell Inc.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT)

(Dollars in millions)

(Unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Additional Paid-in** |  | **Accumulated Other<br>Comprehensive** |  |
|  | **Capital** | **Accumulated Deficit** | **Income (Loss)** | **Total** |
| Balance at March 31, 2025 | $2316.1 | $(508.4) | $34.4 | $1842.1 |
| Net loss |  | (18.1) |  | (18.1) |
| Other comprehensive loss |  |  | (1.8) | (1.8) |
| Balance at June 30, 2025 | $2316.1 | $(526.5) | $32.6 | $1822.2 |
| Balance at March 31, 2024 | $2116.1 | $(391.7) | $24.8 | $1749.2 |
| Net loss |  | (34.3) |  | (34.3) |
| Other comprehensive loss |  |  | (5.1) | (5.1) |
| Balance at June 30, 2024 | $2116.1 | $(426.0) | $19.7 | $1709.8 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Additional Paid-in** |  | **Accumulated Other<br>Comprehensive** |  |
|  | **Capital** | **Accumulated Deficit** | **Income (Loss)** | **Total** |
| Balance at December 31, 2024 | $2316.1 | $(480.1) | $35.0 | $1871.0 |
| Net loss |  | (46.4) |  | (46.4) |
| Other comprehensive loss |  |  | (2.4) | (2.4) |
| Balance at June 30, 2025 | $2316.1 | $(526.5) | $32.6 | $1822.2 |
| Balance at December 31, 2023 | $2116.1 | $(350.8) | $28.2 | $1793.5 |
| Net loss |  | (75.2) |  | (75.2) |
| Other comprehensive loss |  |  | (8.5) | (8.5) |
| Balance at June 30, 2024 | $2116.1 | $(426.0) | $19.7 | $1709.8 |

---

The accompanying notes are an integral part of the condensed consolidated financial statements.

------

Cincinnati Bell Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in millions)

(Unaudited)

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **December 31, 2024** |
| **Assets** |  |  |
| Current assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $188.4 | $460.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Receivables, less allowances of $16.1 and $15.0 | 94.5 | 96.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventory, materials and supplies | 71.8 | 82.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | 27.0 | 23.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current assets | 105.5 | 10.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 487.2 | 672.8 |
| Property, plant and equipment, net | 2758.6 | 2625.3 |
| Operating lease right-of-use assets | 77.4 | 77.4 |
| Goodwill | 566.7 | 566.7 |
| Intangible assets, net | 326.8 | 353.4 |
| Other noncurrent assets | 76.3 | 166.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $4293.0 | $4462.4 |
| **Liabilities and Shareowners' Equity** |  |  |
| Current liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion of long-term debt | $26.2 | $45.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 149.4 | 174.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unearned revenue and customer deposits | 49.2 | 50.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued taxes | 10.0 | 10.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued interest | 0.9 | 0.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued payroll and benefits | 30.1 | 36.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued restructuring | 3.2 | 40.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | 120.8 | 26.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 389.8 | 385.7 |
| Long-term debt, less current portion | 1695.2 | 1720.2 |
| Operating lease liabilities | 77.9 | 77.5 |
| Pension and postretirement benefit obligations | 107.1 | 111.3 |
| Pole license agreement obligation | 36.3 | 37.8 |
| Deferred income tax liabilities | 21.0 | 20.4 |
| Other noncurrent liabilities | 143.5 | 238.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 2470.8 | 2591.4 |
| Shareowners' equity |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 2316.1 | 2316.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit | (526.5) | (480.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income | 32.6 | 35.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total shareowners' equity | 1822.2 | 1871.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and shareowners' equity | $4293.0 | $4462.4 |

---

The accompanying notes are an integral part of the condensed consolidated financial statements.

------

Cincinnati Bell Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in millions)

(Unaudited)

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024\*** |
| **Cash flows from operating activities** |  |  |
| Net loss | $(46.4) | $(75.2) |
| Adjustments to reconcile net loss to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 171.9 | 163.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for credit loss on receivables | 5.8 | 4.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized loss (gain) on interest rate swaps | 7.9 | (15.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;Noncash portion of interest expense | 4.1 | 5.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 1.3 | 30.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pension and other postretirement payments in excess of expense | (7.6) | (5.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Settlement adjustment on sale of discontinued operations | 14.5 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other, net | (1.4) | (5.3) |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in receivables | (3.9) | 115.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Decrease in inventory, materials, supplies, prepaid expenses and other current assets | 4.4 | 12.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Decrease in accounts payable | (23.4) | (92.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Decrease in accrued and other current liabilities | (48.2) | (4.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase in other noncurrent assets | (6.3) | (6.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Decrease) increase in other noncurrent liabilities | (2.7) | 2.2 |
| Net cash provided by operating activities | 70.0 | 128.7 |
| **Cash flows from investing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures | (286.3) | (296.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;Final selling price adjustment from sale of discontinued operations | (14.5) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of assets | 5.8 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Insurance proceeds received for damage to equipment | 0.5 | 3.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other, net | (0.2) | (1.1) |
| Net cash used in investing activities | (294.7) | (294.4) |
| **Cash flows from financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of long-term debt | 6.5 | 306.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net decrease in corporate credit facility with initial maturities less than 90 days |  | (105.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from borrowings on receivables facilities |  | 761.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments on receivables facilities |  | (772.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayment of debt | (54.5) | (15.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payment of debt issuance costs | (0.6) | (3.7) |
| Net cash (used in) provided by financing activities | (48.6) | 170.6 |
| Net (decrease) increase in cash, cash equivalents and restricted cash | (273.3) | 4.9 |
| Cash, cash equivalents and restricted cash at beginning of period | 465.8 | 12.5 |
| Cash, cash equivalents and restricted cash at end of period | $192.5 | $17.4 |
| Noncash investing and financing transactions: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of property by assuming debt and other noncurrent liabilities | $— | $3.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of property on account | $69.1 | $61.8 |

---

\*Cash flows information includes cash flows from discontinued operations for the six months ended June 30, 2024.

The accompanying notes are an integral part of the condensed consolidated financial statements.

------

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**

**1. Description of Business and Accounting Policies**

**Description of Business** — Cincinnati Bell Inc. and its consolidated subsidiaries ("Cincinnati Bell," "we," "our," "us" or the "Company") provide integrated communications that keep consumer and enterprise customers connected with each other and with the world. The Company generates a large portion of its revenue by serving customers in two distinct regions. These regions are defined by the Company as 1) Greater Cincinnati, which includes Cincinnati, Ohio, a radius of approximately 25 miles around Cincinnati, Ohio, including parts of northern Kentucky and southeastern Indiana, Dayton, Ohio, and Columbus, Ohio and 2) Hawaii, which includes the island of Oahu and the neighboring islands. The Company operates its business through one reportable segment, Network. All revenue is generated from U.S. operations.

**Basis of Presentation —** The Condensed Consolidated Financial Statements of the Company have been prepared pursuant to the rules and regulations of the SEC and, in the opinion of management, include all adjustments necessary for a fair statement of the results of operations, other comprehensive income, financial position and cash flows for each period presented.

The adjustments referred to above are of a normal and recurring nature. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") have been condensed or omitted pursuant to SEC rules and regulations for interim reporting.

These Condensed Consolidated Financial Statements should be read in conjunction with the Company's 2024 Annual Report on Form 10-K. The December 31, 2024 Condensed Consolidated Balance Sheet data was derived from audited financial statements but does not include all required annual disclosures.

The sale of the CBTS and OnX businesses (the "Disposal Group") on December 2, 2024 represented a strategic shift in our business. Therefore, the results of operations from the Disposal Group are reported as discontinued operations in our financial statements. See Note 9 for all required disclosures.

**Business Combinations —** In accounting for business combinations, we apply the accounting requirements of Accounting Standards Codification 805 ("ASC 805"), "Business Combinations," which requires the recording of net assets of acquired businesses at fair value. In developing fair value estimates for acquired assets and assumed liabilities, management analyzes a variety of factors including market data, estimated future cash flows of the acquired operations, industry growth rates, current replacement cost for fixed assets, and market rate assumptions for contractual obligations. Such a valuation requires management to make significant estimates and assumptions, particularly with respect to the intangible assets. In addition, any contingent consideration is presented at fair value at the date of acquisition, and transaction costs are expensed as incurred. The Company reports in its Condensed Consolidated Financial Statements provisional amounts for the items for which accounting is incomplete. Goodwill is adjusted for any changes to provisional amounts made within the measurement period.

**Use of Estimates —** Preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ from those estimates. In the normal course of business, the Company is subject to various regulatory and tax proceedings, lawsuits, claims and other matters. The Company believes adequate provision has been made for all such asserted and unasserted claims in accordance with U.S. GAAP. Such matters are subject to many uncertainties and outcomes that are not predictable with assurance.

**Accounting Policies —** The complete summary of significant accounting policies is included in the notes to the consolidated financial statements as presented in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

**Variable Interest Entity —** The Company holds an interest in a limited liability company, Digital Access Ohio LLC ("DAO"), that is considered a variable interest entity ("VIE") in accordance with the guidance of ASC 810 "Consolidation." DAO is considered a VIE as it has insufficient equity capital to finance its activities without additional financial support. The Company is the primary beneficiary of DAO as it has the power over the activities that most significantly impact the economic performance of DAO and has the obligation to absorb expected losses and the right to receive expected benefits that could be significant to DAO. As a result, the Company consolidated DAO, and all significant intercompany accounts have been eliminated. For the three and six months ended June 30, 2025 and 2024, results of operations of DAO were not significant.

Funding of DAO is provided in the form of cash contributions, debt issuance and grants that include a free standing warrant that allows the holder of the warrant at its option to convert the warrant into a class A-2 share of DAO at any time during the period commencing on the 2<sup>nd</sup> anniversary of the funding agreement and ending on the 10<sup>th</sup>anniversary of the funding agreement date. The Company has recorded the fair value associated with the warrant to "Other noncurrent liabilities" on the Condensed Consolidated Balance Sheets. The Company will continue to assess whether it has a controlling financial interest in DAO and whether it is the primary beneficiary at each reporting period.

------

**Cash, Cash Equivalents and Restricted Cash —** Cash consists of funds held in bank accounts. Cash equivalents consist of short-term, highly liquid investments with original maturities of three months or less. Restricted cash as of June 30, 2025 consists of funds held in an escrow account for the payment of an invoice and funds held by DAO. Restricted cash as of December 31, 2024 consists of funds held by DAO. Restricted cash is included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the Condensed Consolidated Statements of Cash Flows. A reconciliation of cash, cash equivalents and restricted cash to the Condensed Consolidated Balance Sheets follows:

---

| | | |
|:---|:---|:---|
| **<u>(dollars in millions)</u>** | **June 30, 2025** | **December 31, 2024** |
| Cash and cash equivalents | $188.4 | $460.7 |
| Restricted cash included in Other noncurrent assets | 4.1 | 5.1 |
| Cash, cash equivalents and restricted cash per Condensed Consolidated Statements of Cash Flows | $192.5 | $465.8 |

---

**Goodwill —** Goodwill represents the excess of the purchase price consideration over the fair value of net assets acquired and recorded in connection with business acquisitions. Goodwill is allocated at the business segment level. Goodwill is tested for impairment on an annual basis or when events or changes in circumstances indicate that such assets may be impaired. If the net book value of the reporting unit exceeds its fair value, an impairment loss is recognized. An impairment loss is measured as the excess of the carrying value of goodwill of a reporting unit over its fair value.

**Indefinite-Lived Intangible Assets —** Intangible assets represent purchased assets that lack physical substance but can be separately distinguished from goodwill because of contractual or legal rights, or because the asset is capable of being separately sold or exchanged. Federal Communications Commission ("FCC") licenses for wireless spectrum and other perpetual licenses represent indefinite-lived intangible assets. The Company may renew the wireless licenses in a routine manner every ten years for a nominal fee, provided the Company continues to meet the service and geographic coverage provisions required by the FCC. Intangible assets not subject to amortization are tested for impairment annually, or when events or changes in circumstances indicate that the asset might be impaired.

**Long-Lived Assets —** Management reviews the carrying value of property, plant and equipment and other long-lived assets, including intangible assets with definite lives, when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. An impairment loss is recognized when the estimated future undiscounted cash flows expected to result from the use of an asset (or group of assets) and its eventual disposition is less than its carrying amount. An impairment loss is measured as the amount by which the asset's carrying value exceeds its estimated fair value. Long-lived intangible assets are amortized based on the estimated economic value generated by the asset in future years.

**Accounting for Impacts of Involuntary Events and Contingencies —** Assets destroyed or damaged as a result of involuntary events are written off or reduced in carrying value to their salvage value. When recovery of all or a portion of the amount of property damage loss or other covered expenses through insurance proceeds is demonstrated to be probable, a receivable is recorded and offsets the loss or expense up to the amount of the total loss or expense. Proceeds ultimately received from insurance claims for business interruption, direct expenditures and amounts for capital assets in excess of net book value will be recorded to results of operations when collected. No gain is recorded until all contingencies related to the insurance claim have been resolved.

In August 2023, wildfires ignited on Maui and Hawaii islands and spread rapidly due to extreme wind conditions caused in part by Hurricane Dora which traveled 800 miles offshore west of Maui. The fires caused widespread damage to Lahaina town on the island of Maui and the surrounding area, including physical loss and damage to certain of the Company's fiber and copper assets and Company owned equipment located on customer premises. The Company experienced the loss of business income immediately following the fires and is expected to continue to experience loss of business income in the affected areas. The Company has filed insurance claims for the physical loss and damages experienced in Lahaina and for business income losses. In the first quarter of 2024, the Company received insurance reimbursements of $3.0 million that exceeded the net book value related to the physical loss and damage claims, and recorded the amount to "Other income, net" on the Condensed Consolidated Statements of Operations. The Company has received life-to-date insurance reimbursements of $7.0 million related to this claim that have exceeded the net book value related to the physical loss and damage claims.

The Company's Hawaiian Telcom subsidiary, along with many other parties, including governmental entities, landowners, utilities and other telecommunication providers, has been named as a defendant in multiple civil lawsuits brought by individual plaintiffs, a putative class, and subrogation plaintiffs in state and federal court in Hawaii arising out of the August 2023 windstorm and wildfires on the island of Maui. Among other things, the lawsuits allege that the defendants were responsible for, and/or were negligent in failing to prevent, the wildfires that led to severe destruction of property and loss of life. Hawaiian Telcom has denied any responsibility for the damages caused by the wildfires.

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The parties to the litigation, including Hawaiian Telcom, have engaged in confidential mediation and discussions regarding a global settlement of the litigation. On August 2, 2024, the defendants, individual plaintiffs, and class plaintiffs entered into a term sheet that contemplates a global resolution of all claims arising out of the August 2023 windstorm and wildfires on Maui that does not include any admission of liability in which the defendants would collectively pay an aggregate of $4.037 billion. The settlement also would resolve all claims among the defendants. Hawaiian Telcom's contribution is a total of $100.0 million including the $2.5 million previously contributed for the One 'Ohana Fund, subject to necessary judicial review and approvals. However, until final settlement documents are signed by all the parties to the term sheet, there can be no assurances that a settlement will be completed, or that Hawaiian Telcom will be able to settle the lawsuits against it on the terms set forth in the term sheet*.* If the settlement is not completed, Hawaiian Telcom intends to vigorously defend the lawsuits in which it is named as defendant.

As a result, the Company concluded that, with the agreement to the term sheet related to the August 2023 wildfires on Maui, the global settlement was probable, and the related loss was reasonably estimable. Accordingly, the Company recognized an incremental liability of $93.5 million recorded to "Other Noncurrent liabilities" in the Condensed Consolidated Balance Sheets offset by an insurance receivable included in "Other noncurrent assets" as of December 31, 2024.

In the first quarter of 2025, the general liability of $97.5 million related to this matter was reclassed from "Other noncurrent liabilities" to "Other current liabilities" in the Condensed Consolidated Balance Sheets as the payment is expected to be made in the first half of 2026. The offsetting receivable of $96.6 million associated with amounts expected to be reimbursed by insurance was also reclassed from "Other noncurrent assets," to "Other current assets" in the Condensed Consolidated Balance Sheets. As of June 30, 2025, the balance remains at $97.5 million recorded to "Other current liabilities" and the offsetting receivable of $96.6 million recorded to "Other current assets" in the Condensed Consolidated Balance Sheets.

Legal expenses related to this matter were $0.3 million and $3.4 million for the six months ended June 30, 2025 and 2024, respectively. The Company has incurred life-to-date legal fees related to this matter of $13.4 million since August of 2023. The Company collected $1.8 million from their insurance provider in the second quarter of 2025 and has recorded a $7.1 million insurance receivable to "Receivables, net" on the Condensed Consolidated Balance Sheets as a result of agreement by the Company's insurance provider to reimburse a portion of professional fees incurred.

**Income and Operating Taxes**

*Income taxes* — In accordance with ASC 740-270, the Company's income tax provision for interim periods is determined through the use of an estimated annual effective tax rate applied to year-to-date ordinary income/loss plus or minus the tax effects of discrete items. The income tax provision for the three months ended June 30, 2025 for continuing operations was an expense of $0.6 million, despite a loss before income tax of $17.5 million. The tax expense reported is significantly lower than the $3.7 million benefit expected at statutory rates, due primarily to valuation allowances on additional deferred tax assets related to disallowed interest expense deductions. The tax expense reported in the three months ended June 30, 2025 for continuing operations is higher than the tax benefit in the comparable period of 2024 for continuing operations due to a lower loss before tax, with valuation allowances recorded against net operating loss deferred tax assets recorded in both periods.

The income tax provision for the six months ended June 30, 2025 for continuing operations was an expense of $1.1 million, despite a loss before income tax of $31.4 million. The tax expense reported is significantly lower than the $6.6 million benefit expected at statutory rates, due primarily to valuation allowances on additional deferred tax assets related to disallowed interest expense deductions.

In the six months ended June 30, 2024, a significant tax expense was reported in continuing operations, despite a loss before income tax, due most notably to additional valuation allowances recorded in that comparable period. Additionally, a discrete tax expense item was recorded in the comparable period in order to record a deferred tax liability for the tax effect of the difference between book basis and tax basis in the Disposal Group.

On July 4, 2025, the U.S. signed into law the One Big Beautiful Bill Act, which included various provisions specific to businesses. This legislation was signed into law subsequent to the Company's quarter end and its impact on the Company is currently being evaluated.

*Operating taxes —* Certain operating taxes such as property, sales, use, and gross receipts taxes are reported as expenses in operating income primarily within cost of services. These taxes are not included in income tax expense because the amounts to be paid are not dependent on our level of income. Liabilities for audit exposures are established based on management's assessment of the probability of payment. The provision for such liabilities is recognized as property, plant and equipment, operating tax expense, or depreciation expense depending on the nature of the audit exposure. Upon resolution of an audit, any remaining liability not paid is released against the account in which it was originally recorded. Certain telecommunication taxes and surcharges that are collected from customers are also recorded as revenue; however, in accordance with ASC 606, revenue associated with these charges is excluded from the transaction price.

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**Derivative Financial Instruments —** The Company accounts for derivative financial instruments by recognizing derivative instruments as either assets or liabilities in the Condensed Consolidated Balance Sheets at fair value and recognizing the resulting gains or losses as adjustments to the Condensed Consolidated Statements of Operations or "Accumulated other comprehensive income." The Company does not hold or issue derivative financial instruments for trading or speculative purposes.

For derivative instruments that hedge the exposure to variability in expected future cash flows that are designated and qualify as cash flow hedges, the gain or loss on the derivative instrument is reported as a component of "Accumulated other comprehensive income" in stockholder's equity and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. To receive hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions. Derivatives that do not qualify as hedges are adjusted to fair value through earnings in the current period. All cash flows associated with the Company's derivative instruments are classified as operating activities in the Condensed Consolidated Statements of Cash Flows.

**Segment —** The Company provides products and services that can be categorized as Data, Video, Voice or Other that represent 100% of the Company's consolidated sales from continuing operations. Since the February 2, 2024 definitive purchase agreement with TowerBrook (Note 9), the Company aggregates its products and services delivered across all geographical markets into one reportable segment due to the products and services having similar economic characteristics with similar long-term financial performance. In addition, the Company's geographical markets offer customers similar products, have similar distribution methods, operate in similar regulatory environments, purchase the majority of capital required to build the network to deliver the services from similar (and in many cases identical) vendors, and serve similar types of customers. Operating divisions are organized primarily on a legal entity basis so that the operating division management team can be responsive to local needs and can execute company strategic plans and initiatives throughout the locations in their operating division. The legal entity basis of organization reflects how the business is managed and how the Company's Chief Executive Officer, who acts as the Company's chief operating decision maker, assesses performance internally. All of the Company's continuing operations are domestic.

**Recently Issued Accounting Standards**

*Accounting Standards Recently Adopted*

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The ASU is effective for public business entities for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The amendments within ASU 2023-07 are required to be applied on a retrospective basis. The Company adopted the new standard in the fourth quarter of 2024 and applied the amendment on a retrospective basis. The Company's adoption of the standard provides enhanced disclosure surrounding its Chief Operating Decision Maker and the relevant measure of segment profit or loss used to assess performance and allocate resources for the Network business, the Company's single reportable segment. The newly adopted standard also provides further clarity surrounding significant segment expenses within the Company's Network segment, presented in Note 11 Business Segment Information.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires reporting entities to disclose disaggregated information about the entity's effective tax rate reconciliation as well as information on income taxes paid. The ASU is effective for public business entities for annual periods beginning after December 15, 2024, although early adoption is permitted. The amendments in this ASU will be applied on a prospective basis with the option to apply the standard retrospectively. The Company has adopted ASU 2023-09 for its annual period ending December 31, 2025. ASU 2023-09 is expected to impact our income tax disclosures beginning with the consolidated financial statements included in the annual report on Form 10-K for the year ending December 31, 2025, but will have no impact on our results of operations, cash flows, or financial condition.

*Accounting Standards yet to be Adopted*

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses ("DISE"), which aims to increase expense reporting requirements, with enhanced disclosure surrounding the nature of expenses presented within the income statement, including selling expenses. The ASU is effective for public business entities for annual reporting periods beginning after December 15, 2026 and interim reporting periods within annual reporting periods beginning after December 15, 2027. The amendments within this ASU will be applied on a prospective basis with the option for retrospective application. The Company is currently evaluating the effects of this standard on its consolidated financial statements and related disclosures.

Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company's consolidated financial statements upon adoption.

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**2. Revenue**

The Company provides products and services that can be categorized as Data, Video, Voice or Other to both residential and commercial customers.

Residential customers have implied month-to-month contracts. Commercial customers, with the exception of contracts associated with the Southeast Asia to United States ("SEA-US") trans-Pacific submarine cable system, typically have contracts with an initial duration of one to five years and automatically renew on a month-to-month basis. Customers are invoiced on a monthly basis for services rendered. Contracts for projects that are included within the Other revenue stream are typically short in duration and less than one year. Contracts associated with the SEA-US cable system typically range from 15 to 25 years and payment is prepaid.

The Company has elected the practical expedient described in ASC 606-10-32-18 that allows an entity to not adjust the promised amount of consideration for the effects of a significant financing component if the entity expects that the period of time between the transfer of a promised good or service to the customer and when the customer pays for such good or service will be one year or less. Customers are typically billed immediately upon the rendering of services or the delivery of products. Payment terms for customers are between 30 and 120 days. Subsequent to the acquisition of Hawaiian Telcom Holdco., Inc. ("Hawaiian Telcom"), the Company began recognizing a financing component associated with the up-front payments for services to be delivered under indefeasible right of use ("IRU") contracts for fiber circuit capacity. The IRU contracts typically have a duration ranging from 15 to 25 years.

**Performance Obligations**

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, or a series of distinct goods or services, and is the unit of account defined in ASC Topic 606. The transaction price identified in the contract is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Contract modifications for changes to services provided are routine throughout the term of our contracts. In most instances, contract modifications are for the addition or reduction of services that are distinct, and price changes are based on the stand-alone selling price of the service and, as such, are accounted for on a prospective basis as a new contract.

Goods and services are sold individually, or a contract may include multiple goods or services. For contracts with multiple goods and services, the transaction price identified in the contract is allocated to each performance obligation using the stand-alone selling price of each distinct good or service in the contract.

Performance obligations are satisfied either over time as services are performed or at a point in time. Substantially all of our service revenue is recognized over time. For services transferred over time, the Company has elected the practical expedient to recognize revenue based on amounts invoiced to the customer as the Company has concluded that the invoice amount directly corresponds with the value of services provided to the customer. Management considers this a faithful depiction of the transfer of control as services are provided evenly over the month and are substantially the same over the life of the contract. As the Company has elected the practical expedients detailed at ASC 606-10-50-13, revenue for these unsatisfied performance obligations that will be billed in future periods has not been disclosed.

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As of June 30, 2025, our estimated revenue, including a financing component, expected to be recognized in the future related to performance obligations associated with customer contracts that are unsatisfied (or partially unsatisfied) is $217.2 million. In the third quarter of 2024, the Company was awarded a contract of $50.0 million to subsidize broadband expansion in Southwest Ohio. The revenue is expected to be recognized in 2026 and 2027. Certain IRU contracts extend for periods of up to 30 years and are invoiced at the beginning of the contract term. The revenue from such contracts is recognized over time as services are provided over the contract term. The expected revenue to be recognized for existing customer contracts is as follows:

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| | |
|:---|:---|
| **<u>(dollars in millions)</u>** |  |
| Six months ending December 31, 2025 | $9.4 |
| 2026 | 50.6 |
| 2027 | 37.4 |
| 2028 | 10.3 |
| 2029 | 10.2 |
| Thereafter | 99.3 |

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The Company has identified four distinct performance obligations, namely Data, Voice, Video, and Other. For each of the Data, Voice, and Video services, service is delivered to the customer continuously and in a substantially similar manner for each period of the agreement, the customer takes full control over the services as the service is delivered, and as such, Data, Voice, and Video are identified to be a series of distinct services. Services provided can be categorized into three main categories that include Strategic, Legacy and Other. The Strategic and Legacy categories may include one or more of the aforementioned performance obligations. Data services include internet access, digital subscriber lines, ethernet, routed network services, SONET (Synchronous Optical Network), dedicated internet access, wavelength, digital signal, IRU revenue and revenue associated with the SEA-US cable system. Voice services include traditional and fiber voice lines, switched access, digital trunking, consumer and business long distance calling, and certain communications services including data and VoIP services, tailored solutions that include converged IP communications of data, voice and mobility applications, MPLS (Multi-Protocol Label Switching) and conferencing services. Video services are offered through our fiber network to residential and commercial customers based on various standard plans with the opportunity to add premium channels. To receive video services, customers are required to use the Company's set top boxes that are billed as part of the monthly recurring service. Set top boxes are not considered a separate performance obligation from video because the equipment is necessary for the service to operate and the customer has no alternative use for the equipment.

Services and products not included in Data, Voice or Video are included in Other revenue and are comprised of wire care, time and materials projects, advertising, management of distributed antenna systems, certain pass through fees including processing, franchise, and regulatory fees, subsidized fiber build projects and other fees that are generally nonrecurring in nature. Other revenue also includes revenue contributed by Hawaiian Telcom for the sale of hardware products and maintenance contracts as well as installation projects and cloud services which include storage, SLA-based monitoring and management, cloud computing and cloud consulting. The sale of hardware products and maintenance contracts is recognized at a point in time while transfer of control of the other services and products is evaluated on an individual project basis and can occur over time or at a point in time.

The Company uses multiple methods to determine stand-alone selling prices. For internet products categorized as Strategic, included within the Data performance obligation, and Voice, Legacy Data and Other performance obligations, stand-alone selling prices are determined based on a list price, discount off of list price, a tariff rate, a margin percentage range, or a minimum margin percentage.

For the sale of hardware products, the Company evaluated whether it is the principal or the agent. The Company has concluded it acts as an agent because it does not control the inventory before it is transferred to customers, it does not have the ability to direct the product to anyone besides the purchasing customer, and it does not integrate the hardware with any of its own goods or services. Based on this assessment, the performance obligation is to arrange a sale of hardware between the vendor and the customer. In the instance where there is an issue with the hardware, the Company coordinates with the manufacturer to facilitate a return in accordance with the standard manufacturer warranty. Hardware returns are not significant to the Company.

For hardware sales, revenue is recognized net of the cost of product and is recognized when the hardware is either shipped or delivered in accordance with the terms of the contract. For certain projects within Voice and Other, revenue is recognized when the customer communicates acceptance of the services performed. For contracts with freight on board shipping terms, management has elected to account for shipping and handling as activities to fulfill the promise to transfer the good, and, therefore has not evaluated whether shipping and handling activities are promised services to its customers.

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**Contract Balances** 

The Company recognizes incremental fulfillment costs as an asset when installation expenses are incurred as part of performing the agreement for Data, Voice and Video product offerings in which the contract life is longer than one year. These fulfillment costs are amortized ratably over the expected life of the customer, which is representative of the expected period of benefit of the asset capitalized. The expected life of the customer is determined utilizing the average churn rate for each product. The Company calculates average churn based on the historical average customer life. We also recognize an asset for incremental fulfillment costs for certain Voice services that require us to incur installation and provisioning expenses and are amortized over the average contract term. Customer churn rates and average contract term assumptions are reviewed on an annual basis. Fulfillment costs are capitalized to "Other noncurrent assets." The related amortization expense is recorded to "Cost of services and products."

The Company recognizes an asset for the incremental costs of acquiring a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive programs related to Data, Voice and Video services meet the requirements to be capitalized. The contract asset established for the costs of acquiring a contract is recorded to "Other noncurrent assets." Sales incentives are amortized ratably over the period that services are delivered using either an average churn rate or average contract term, both representative of the expected period of benefit of the asset capitalized. Customer churn rates and average contract term assumptions are reviewed on an annual basis. The related amortization expense is recorded to "Selling, general and administrative."

Management has elected to use the practical expedient detailed in ASC 340-40-25-4 to expense any costs to fulfill a contract and costs to obtain a contract as they are incurred when the amortization period would have been one year or less. This practical expedient has been applied to fulfillment costs that include installation costs associated with wiring projects. In addition, this practical expedient has been applied to acquisition costs associated with revenue from certain Voice projects.

The following table presents the activity for the Company's contract assets:

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| | | | |
|:---|:---|:---|:---|
| **<u>(dollars in millions)</u>** | **Fulfillment Costs** | **Costs of Acquisition** | **Total** |
| Balance as of December 31, 2024 | $5.2 | $23.8 | $29.0 |
| Additions | 0.4 | 3.0 | 3.4 |
| Amortization | (0.5) | (2.0) | (2.5) |
| Balance as of March 31, 2025 | 5.1 | 24.8 | 29.9 |
| Additions | 0.4 | 3.1 | 3.5 |
| Amortization | (0.5) | (2.0) | (2.5) |
| Balance as of June 30, 2025 | $5.0 | $25.9 | $30.9 |

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The Company recognizes a liability for cash received up-front for IRU contracts. At June 30, 2025 and December 31, 2024, $4.6 million and $4.3 million, respectively, of contract liabilities were included in "Other current liabilities." At June 30, 2025 and December 31, 2024, $91.5 million and $89.4 million, respectively, of contract liabilities were included in "Other noncurrent liabilities."

**Disaggregated Revenue**

The following table presents revenues disaggregated by product and service lines:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| **<u>(dollars in millions)</u>** | **2025** | **2024** | **2025** | **2024** |
| Data | $159.3 | $143.3 | $315.6 | $284.8 |
| Video | 38.8 | 44.7 | 77.6 | 89.9 |
| Voice | 53.8 | 57.6 | 109.2 | 116.9 |
| Other | 22.9 | 27.2 | 48.8 | 52.8 |
| Total Revenue | $274.8 | $272.8 | $551.2 | $544.4 |

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**3. Goodwill and Intangible Assets**

**Goodwill**

As of June 30, 2025 and December 31, 2024, the goodwill balance totaled $566.7 million. No impairment losses were recognized in goodwill for the three and six months ended June 30, 2025 and 2024.

**Intangible Assets**

The Company's intangible assets consisted of the following:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Gross Carrying** | **Accumulated** | **Net** | **Gross Carrying** | **Accumulated** | **Net** |
| **<u>(dollars in millions)</u>** | **Amount** | **Amortization** | **Amount** | **Amount** | **Amortization** | **Amount** |
| Intangible assets subject to amortization |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Customer relationships | $545.0 | $(234.7) | $310.3 | $545.0 | $(208.2) | $336.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Trade names | 22.4 | (20.8) | 1.6 | 22.4 | (20.6) | 1.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Technology | 1.1 | (0.5) | 0.6 | 1.1 | (0.5) | 0.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 568.5 | (256.0) | 312.5 | 568.5 | (229.3) | 339.2 |
| Intangible assets not subject to amortization |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;FCC licenses and spectrum usage rights | 7.5 |  | 7.5 | 7.4 |  | 7.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Perpetual licenses | 6.8 |  | 6.8 | 6.8 |  | 6.8 |
| Total intangible assets | $582.8 | $(256.0) | $326.8 | $582.7 | $(229.3) | $353.4 |

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The finite-lived intangible assets are amortized over their useful lives based on a number of assumptions, including the estimated period of economic benefit and utilization.

Amortization expense for finite-lived intangible assets was $13.4 million and $26.7 million for the three and six months ended June 30, 2025, respectively. Amortization expense for finite-lived intangible assets was $16.2 million and $32.4 million for the three and six months ended June 30, 2024, respectively. No impairment losses were recognized on intangible assets for the three and six months ended June 30, 2025 and 2024.

The estimated useful lives for each finite-lived intangible asset class are as follows:

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| | |
|:---|:---|
| Customer relationships | 15 years |
| Trade names | 3 to 10 years |
| Technology | 7 years |

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The annual estimated amortization expense for future years is as follows:

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| | |
|:---|:---|
| **<u>(dollars in millions)</u>** |  |
| Six months ending December 31, 2025 | $26.7 |
| 2026 | 48.9 |
| 2027 | 44.4 |
| 2028 | 39.8 |
| 2029 | 35.2 |
| Thereafter | 117.5 |
| Total | $312.5 |

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**4. Debt and Other Financing Arrangements**

The Company's debt consists of the following:

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| | | |
|:---|:---|:---|
| **<u>(dollars in millions)</u>** | **June 30, 2025** | **December 31, 2024** |
| Current portion of long-term debt: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit Agreement - Term B-1 Loans | $5.0 | $5.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit Agreement - Term B-3 Loans | 2.0 | 2.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit Agreement - Term B-4 Loans | 9.3 | 9.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other bank debt |  | 18.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Paniolo Fiber Assets Financing Arrangement |  | 0.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Finance lease liabilities | 9.9 | 9.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current portion of long-term debt | 26.2 | 45.6 |
| Long-term debt, less current portion: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit Agreement - Term B-1 Loans | 477.5 | 480.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit Agreement - Term B-3 Loans | 194.0 | 195.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit Agreement - Term B-4 Loans | 916.6 | 921.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Various Cincinnati Bell Telephone notes <sup>(1)</sup> | 93.1 | 93.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Paniolo Fiber Assets Financing Arrangement |  | 20.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Digital Access Ohio Advance | 10.3 | 10.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Finance lease liabilities | 38.2 | 37.7 |
|  | 1729.7 | 1759.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net unamortized discount | (5.2) | (5.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unamortized note issuance costs | (29.3) | (33.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term debt, less current portion | 1695.2 | 1720.2 |
| Total debt | $1721.4 | $1765.8 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)As of June 30, 2025 and December 31, 2024, the net carrying amount of the Various Cincinnati Bell Telephone notes included an unamortized fair value adjustment recorded on the Company's merger date, September 7, 2021, of $5.2 million and $5.9 million, respectively. The adjustment is amortized over the life of the notes and is recorded as a reduction of interest expense.

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**Credit Agreement**

The Company had no outstanding borrowings on the Credit Agreement's revolving credit facility, leaving $400.0 million available for borrowings as of June 30, 2025. The revolving credit facility matures in August 2028, and the Term B-1 Loans, Term B-3 Loans and Term B-4 Loans under the Credit Agreement mature in November 2028.

**Accounts Receivable Securitization Facility**

As of June 30, 2025, the Company had no borrowings and $26.7 million of letters of credit outstanding under the Network Receivables Facility, leaving $28.8 million remaining availability on the total borrowing capacity of $55.5 million. The maximum borrowing limit for loans and letters of credit under the Network Receivables Facility is $60.0 million, in the aggregate. The available borrowing capacity on the facility is calculated monthly based on the quantity and quality of outstanding accounts receivable, and thus may be lower than the maximum borrowing limit.

In March 2025, the Company executed an amendment to the Network Receivables Facility that increased the maximum borrowing limit for loans and letters of credit to $60.0 million, extended the termination date to March 2028 and extended the renewal date to March 2027. The Company incurred deferred financing costs of $0.4 million in the three months ended March 31, 2025 related to amending the Network Receivables Facility.

Under the Network Receivables Facility, certain U.S. subsidiaries, as originators, sell their respective trade receivables on a continuous basis to Cincinnati Bell Funding LLC ("CBF"), wholly-owned consolidated subsidiary of the Company. Although CBF is a wholly-owned consolidated subsidiary of the Company, CBF is legally separate from the Company and each of the Company's other subsidiaries. Upon and after the sale or contribution of the accounts receivable to CBF, such accounts receivable are legally assets of CBF and, as such, are not available to creditors of other subsidiaries or the parent company.

**Cincinnati Bell Telephone Notes ("CBT Notes")**

CBT Notes consist of remaining principal of 6.30% unsecured senior notes due 2028, which are guaranteed on a subordinated basis by the Company but not its subsidiaries. The CBT Notes may be redeemed at any time and are subject to customary events of default.

**Paniolo Fiber Assets Financing Arrangement**

In connection with the acquisition of the assets of Paniolo in the third quarter of 2021, the Company's wholly-owned subsidiary, Hawaiian Telcom Inc., entered into a purchase money financing agreement to finance a portion of the Paniolo Acquisition. The Paniolo fiber assets financing arrangement provided for a five-year $23.0 million loan secured by the Paniolo assets acquired in the transaction.

In February 2025, the Company extinguished the debt associated with the financing arrangement at a discounted rate of 99.25%. The Company paid the outstanding debt balance as well as the accrued and unpaid interest as of the extinguishment date. As a result of the debt extinguishment, a nominal gain was recorded.

------

**5. Leases**

**Lessee Disclosures**

The Company primarily leases real estate for offices, retail stores and central offices, as well as equipment, cell towers, designated space on third party towers and fleet vehicles. Upon adoption of ASC 842, the Company elected not to recognize leases with terms of one-year or less on the balance sheet.

Supplemental balance sheet information related to the Company's leases is as follows:

---

| | | | |
|:---|:---|:---|:---|
| **<u>(dollars in millions)</u>** | **Balance Sheet Location** | **June 30, 2025** | **December 31, 2024** |
| Operating lease assets, net of amortization | Operating lease right-of-use assets | $77.4 | $77.4 |
| Finance lease assets, net of amortization | Property, plant and equipment, net | 24.7 | 19.8 |
| Operating lease liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current operating lease liabilities | Other current liabilities | 6.3 | 6.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Noncurrent operating lease liabilities | Operating lease liabilities | 77.9 | 77.5 |
| Total operating lease liabilities |  | 84.2 | 83.9 |
| Finance lease liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current finance lease liabilities | Current portion of long-term debt | 9.9 | 9.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Noncurrent finance lease liabilities | Long-term debt, less current portion | 38.2 | 37.7 |
| Total finance lease liabilities |  | $48.1 | $47.6 |

---

.

Supplemental cash flow information related to leases is as follows:

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| **<u>(dollars in millions)</u>** | **2025** | **2024** |
| **Supplemental Cash Flows Information \*** |  |  |
| Cash paid for amounts included in the measurement of lease liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating cash flows from finance leases | $1.7 | $2.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating cash flows from operating leases | $3.2 | $5.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financing cash flows from finance leases | $6.0 | $7.6 |
| Right-of-use assets obtained in exchange for lease obligations: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;New operating leases | $3.3 | $12.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;New finance leases | $6.5 | $7.2 |

---

\*Supplemental cash flows information includes cash flows from discontinued operations for the six months ended June 30, 2024.

------

**6. Financial Instruments and Fair Value Measurements**

**Fair Value Measurements**

The Company defines fair value as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. To increase consistency and comparability in fair value measurements, the Company uses a three-level hierarchy that prioritizes the use of observable inputs. The three levels are:

Level 1 — Quoted market prices for identical instruments in an active market;

Level 2 — Quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs); and

Level 3 — Unobservable inputs that reflect management's determination of assumptions that market participants would use in pricing the asset or liability. These inputs are developed based on the best information available, including our own data.

The determination of where an asset or liability falls in the hierarchy requires significant judgment.

**Cash Flow Hedging**

*Cash Flow Hedges Not Designated as Hedging Instruments*

The Company uses non-designated cash flow hedges including interest rate swap agreements and interest rate cap agreements to minimize its exposure to interest rate fluctuations on variable rate debt borrowings. Interest rate swaps involve the exchange of fixed and variable rate interest payments and do not represent an actual exchange of the underlying notional amounts between parties. Interest rate caps provide that the counterparty will pay the purchaser at the end of each contractual period in which the index interest rate exceeds the contractually agreed upon cap rate.

In the first quarter of 2024, the Company entered into a forward starting non-amortizing interest rate swap to convert variable rate debt to fixed rate debt. The interest rate swap has a notional amount of $200.0 million resulting in interest payments based on an average fixed rate per swap of 4.3030%, plus the applicable margin per the requirements in the Credit Agreement. The interest rate swap expires in July 2025.

In the first quarter of 2023, the Company entered into three forward starting non-amortizing interest rate swaps to convert variable rate debt to fixed rate debt. The interest rate swaps have notional amounts of $150.0 million, $150.0 million and $100.0 million resulting in interest payments based on an average fixed rate per swap of 3.6875%, 3.6500% and 3.5095%, respectively, plus the applicable margin per the requirements in the Credit Agreement. The interest rate swaps expire in March 2027.

In the second quarter of 2022, the Company entered into three forward starting non-amortizing interest rate swaps to convert variable rate debt to fixed rate debt. The interest rate swaps have notional amounts of $175.0 million, $115.0 million and $85.0 million resulting in interest payments based on an average fixed rate per swap of 2.9185%, 2.8520% and 2.8605%, respectively, plus the applicable margin per the requirements in the Credit Agreement. The interest rate swaps expire in May 2026.

In the second quarter of 2022, the Company entered into two interest rate cap agreements to limit exposure to interest rate risk on variable rate debt. The interest rate caps each have a cap rate of 3.0% with notional amounts of $200.0 million and $175.0 million and deferred premiums of $6.7 million and $5.3 million, respectively. The deferred premiums will be paid on a monthly basis over the term of the respective interest rate cap. The interest rate caps expire in May 2026.

The fair value of the Company's interest rate swaps and interest rate caps are impacted by the credit risk of both the Company and its counterparties. The Company has agreements with its derivative financial instrument counterparties that contain provisions providing that if the Company defaults on the indebtedness associated with its derivative financial instruments, then the Company could also be declared in default on its derivative financial instruments obligations. In addition, the Company minimizes nonperformance risk on its derivative instruments by evaluating the creditworthiness of its counterparties, which are limited to major banks and financial institutions.

The Company does not apply hedge accounting to the interest rate swaps and interest rate caps and records all mark-to-market adjustments directly to "Other income, net" in the Condensed Consolidated Statements of Operations. The fair values of the interest rate swaps and interest rate caps are categorized as Level 2 in the fair value hierarchy as they are based on well-recognized financial principles and available market data.

------

As of June 30, 2025, the fair values of the interest rate swaps and interest rate caps are recorded in the Condensed Consolidated Balance Sheets as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **<u>(dollars in millions)</u>** | **Balance Sheet Location** | **June 30, 2025** | **Quoted Prices in<br>active markets<br>Level 1** | **Significant<br>observable inputs<br>Level 2** | **Significant<br>unobservable inputs <br>Level 3** |
| Assets: |  |  |  |  |  |
| Interest Rate Swap | Other current assets | $4.1 | $— | $4.1 | $— |
| Interest Rate Cap | Other current assets | $0.2 | $— | $0.2 | $— |
| Liabilities: |  |  |  |  |  |
| Interest Rate Swap | Other noncurrent liabilities | $1.7 | $— | $1.7 | $— |

---

As of December 31, 2024, the fair values of the interest rate swaps and interest rate caps are recorded in the Condensed Consolidated Balance Sheets as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **<u>(dollars in millions)</u>** | **Balance Sheet Location** | **December 31, 2024** | **Quoted Prices in<br>active markets<br>Level 1** | **Significant<br>observable inputs<br>Level 2** | **Significant<br>unobservable inputs<br>Level 3** |
| Assets: |  |  |  |  |  |
| Interest Rate Swap | Other current assets | $6.5 | $— | $6.5 | $— |
| Interest Rate Swap | Other noncurrent assets | $2.8 | $— | $2.8 | $— |
| Interest Rate Cap | Other current assets | $1.1 | $— | $1.1 | $— |
| Interest Rate Cap | Other noncurrent assets | $0.2 | $— | $0.2 | $— |
| Liabilities: |  |  |  |  |  |
| Interest Rate Swap | Other current liabilities | $0.1 | $— | $0.1 | $— |

---

The following table summarizes the location of losses (gains) in the Condensed Consolidated Statements of Operations that were recognized during the three and six months ended June 30, 2025 and 2024, in addition to the derivative contract type:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **Three Months Ended <br>June 30,** | **Three Months Ended <br>June 30,** | **Six Months Ended <br>June 30,** | **Six Months Ended <br>June 30,** |
| **<u>(dollars in millions)</u>** | **Statement of Operations Location** | **2025** | **2024** | **2025** | **2024** |
| Interest Rate Swap | Other income, net | $0.1 | $(4.7) | $2.7 | $(19.8) |
| Interest Rate Cap | Other income, net | $(0.5) | $(1.7) | $0.1 | $(7.5) |

---

**Disclosure on Financial Instruments**

The carrying values of the Company's financial instruments approximate the estimated fair values as of June 30, 2025 and December 31, 2024, except for the Company's long-term debt and other financing arrangements. The carrying and fair values of these items are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
| **<u>(dollars in millions)</u>** | **Carrying Value** | **Fair Value** | **Carrying Value** | **Fair Value** |
| Long-term debt, including current portion\* | $1702.6 | $1700.8 | $1751.2 | $1755.5 |
| Other financing arrangements | 39.3 | 36.7 | 40.8 | 39.2 |

---

\*Excludes finance leases, other financing arrangements and note issuance costs

The fair value of our long-term debt was based on closing or estimated market prices of the Company's debt at June 30, 2025 and December 31, 2024, which is considered Level 2 of the fair value hierarchy. The fair value of the other financing arrangements was calculated using a discounted cash flow model that incorporates current borrowing rates for obligations of similar duration, which is considered Level 3 of the fair value hierarchy. As of June 30, 2025, the current borrowing rate was estimated by applying the Company's credit spread to the risk-free rate for a similar duration borrowing.

------

**7. Pension and Postretirement Plans**

As of June 30, 2025, the Company sponsors three noncontributory defined benefit plans and a postretirement health and life insurance plan in Greater Cincinnati (collectively, the "Cincinnati Plans"), and one noncontributory defined benefit plan for union employees and two postretirement health and life insurance plans for Hawaiian Telcom employees (collectively, the "Hawaii Plans").

In the second quarter of 2025, the Hawaiian Telcom defined benefit plan for union employees made lump sum payments of $6.5 million resulting in a reduction of the benefit obligation of $6.5 million. The Company recorded a pension settlement gain of $0.6 million in the second quarter of 2025 as a result of the lump sum payments to the plan participants exceeding the sum of the service cost and the interest cost components of the net pension cost.

In the second quarter of 2025, the Greater Cincinnati defined benefit plan for management employees made lump sum payments of $10.6 million resulting in a reduction of the benefit obligation of $10.6 million. The Company recorded a pension settlement gain of $0.2 million in the second quarter of 2025 as the estimated lump sum payments to the plan participants in 2025 are expected to exceed the sum of the service cost and the interest cost components of the net pension cost.

In the first quarter of 2025, the Hawaiian Telcom defined benefit plan for union employees made lump sum payments of $8.0 million resulting in a reduction of the benefit obligation of $8.0 million. The Company recorded a pension settlement gain of $1.0 million in the first quarter of 2025 as a result of the lump sum payments to the plan participants exceeding the sum of the service cost and the interest cost components of the net pension cost.

In the first quarter of 2025, the Greater Cincinnati defined benefit plan for management employees made lump sum payments of $0.7 million resulting in a reduction of the benefit obligation of $0.7 million. The Company recorded a nominal pension settlement gain in the first quarter of 2025 as the estimated lump sum payments to the plan participants in 2025 are expected to exceed the sum of the service cost and the interest cost components of the net pension cost.

In the first quarter of 2025, as a result of the sale of the Disposal Group and restructuring activities carried out by the Company in the fourth quarter of 2024 (described in Note 10), certain participants of the Greater Cincinnati postretirement benefit plan for management employees are no longer eligible for retiree life insurance benefits as the service component was not satisfied as of their termination date. As a result of the participant changes, curtailment accounting was triggered in the first quarter of 2025 and a gain of $0.2 million was recorded.

In the second quarter of 2024, the Hawaiian Telcom defined benefit plan for union employees made lump sum payments of $5.5 million resulting in a reduction of the benefit obligation of $5.5 million. The Company recorded a pension settlement gain of $0.4 million in the second quarter of 2024 as a result of the lump sum payments to the plan participants exceeding the sum of the service cost and the interest cost component of the net pension cost.

In accordance with ASC 715, only the service cost component of net benefit cost is eligible for capitalization, which was immaterial for the three and six months ended June 30, 2025 and 2024.

Pension and postretirement (benefits) costs are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| **<u>(dollars in millions)</u>** | **Pension Benefits** | **Pension Benefits** | **Postretirement and Other Benefits** | **Postretirement and Other Benefits** |
| Service cost | $— | $— | $— | $0.1 |
| Other components of pension and postretirement benefit plans expense: |  |  |  |  |
| &nbsp;&nbsp;Interest cost on projected benefit obligation | 3.7 | 5.0 | 1.2 | 1.3 |
| &nbsp;&nbsp;Expected return on plan assets | (3.8) | (5.6) |  |  |
| &nbsp;&nbsp;Amortization of: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Prior service benefit |  |  | (0.2) | (0.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Actuarial gain |  | (0.1) | (1.3) | (1.0) |
| Pension settlement gain | (0.8) | (0.4) |  |  |
| Pension / postretirement (benefit) cost | $(0.9) | $(1.1) | $(0.3) | $0.2 |

---

------

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| **<u>(dollars in millions)</u>** | **Pension Benefits** | **Pension Benefits** | **Postretirement and Other Benefits** | **Postretirement and Other Benefits** |
| Service cost | $— | $— | $0.1 | $0.2 |
| Other components of pension and postretirement benefit plans expense: |  |  |  |  |
| &nbsp;&nbsp;Interest cost on projected benefit obligation | 7.6 | 10.1 | 2.5 | 2.5 |
| &nbsp;&nbsp;Expected return on plan assets | (7.8) | (11.3) |  |  |
| &nbsp;&nbsp;Amortization of: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Prior service benefit |  |  | (0.4) | (0.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;Actuarial gain | (0.1) | (0.1) | (2.4) | (1.9) |
| Pension settlement gain | (1.8) | (0.4) |  |  |
| Postretirement curtailment gain |  |  | (0.2) |  |
| Pension / postretirement (benefit) cost | $(2.1) | $(1.7) | $(0.4) | $0.4 |

---

Amortization of prior service benefit and actuarial gain in the three and six months ended June 30, 2025 and 2024 represent reclassifications from accumulated other comprehensive income.

For the six months ended June 30, 2025, contributions to the qualified pension plans were $0.9 million, and contributions to the non-qualified pension plans were $1.2 million. For the six months ended June 30, 2024, there were no contributions to the qualified pension plans and contributions to the non-qualified pension plans were $0.8 million. Based on current assumptions, total contributions are expected to be approximately $2 million to the qualified pension plans and approximately $2 million to the non-qualified pension plans in 2025.

For the six months ended June 30, 2025 and 2024, contributions to our postretirement plans were $3.1 million and $3.4 million, respectively. Management expects to make total cash payments of approximately $7 million related to its postretirement health plans in 2025.

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**8. Equity**

**Accumulated Other Comprehensive Income (Loss)**

The changes in accumulated other comprehensive income (loss) by component were as follows:

---

| | | | |
|:---|:---|:---|:---|
| **<u>(dollars in millions)</u>** | **Unrecognized<br>Net Periodic<br>Pension and<br>Postretirement<br>Benefit (Cost)** | **Foreign<br>Currency<br>Translation Gain (Loss)** | **Total** |
| Balance as of March 31, 2025 | $34.4 | $— | $34.4 |
| Reclassifications, net | (1.8) (a) |  | (1.8) |
| Balance as of June 30, 2025 | $32.6 | $— | $32.6 |
| Balance as of March 31, 2024 | $32.4 | $(7.6) | $24.8 |
| Remeasurement of benefit obligations | (2.8) |  | (2.8) |
| Reclassifications, net | (1.3) (a) |  | (1.3) |
| Foreign currency loss |  | (1.0) | (1.0) |
| Balance as of June 30, 2024 | $28.3 | $(8.6) | $19.7 |

---

---

| | | | |
|:---|:---|:---|:---|
| **<u>(dollars in millions)</u>** | **Unrecognized<br>Net Periodic<br>Pension and<br>Postretirement<br>Benefit (Cost)** | **Foreign<br>Currency<br>Translation Gain (Loss)** | **Total** |
| Balance as of December 31, 2024 | $35.0 | $— | $35.0 |
| Remeasurement of benefit obligations | 1.2 |  | 1.2 |
| Reclassifications, net | (3.6) (a) |  | (3.6) |
| Balance as of June 30, 2025 | $32.6 | $— | $32.6 |
| Balance as of December 31, 2023 | $33.2 | $(5.0) | $28.2 |
| Remeasurement of benefit obligations | (2.8) |  | (2.8) |
| Reclassifications, net | (2.1) (a) |  | (2.1) |
| Foreign currency loss |  | (3.6) | (3.6) |
| Balance as of June 30, 2024 | $28.3 | $(8.6) | $19.7 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)These reclassifications are included in the other components of net periodic pension and postretirement benefit plans expense and represent amortization of prior service benefit and actuarial gain, net of tax and settlement gains, net of tax. The other components of net periodic pension and postretirement benefit plans expense are recorded in "Other components of pension and postretirement benefit plans benefit" on the Condensed Consolidated Statements of Operations. See Note 7 for further disclosures.

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**9. Discontinued Operations**

On February 2, 2024, the Company entered into a definitive purchase agreement (the "Purchase Agreement") with TowerBrook Capital Partners ("TowerBrook") which provided that TowerBrook would acquire the Disposal Group from the Company for a purchase price of $670.0 million. On December 2, 2024, Cincinnati Bell completed the transaction. Pursuant to terms of the Purchase Agreement, TowerBrook acquired the Disposal Group for the purchase price of $670.0 million plus an incremental $18.4 million for certain working capital changes that occurred between the date of the Purchase Agreement and December 2, 2024. During the three months ended March 31, 2025, a post-closing selling price adjustment and completion of other Purchase Agreement provisions in connection with the sale resulted in adjustments of pre-tax $14.5 million ($13.9 million after tax) recorded to discontinued operations which reduced the previously reported pre-tax gain on the sale of the Disposal Group of $93.7 million to $79.2 million. The payment to TowerBrook for the adjustment was remitted in April 2025.

Management evaluated the criteria to report a disposal group as held for sale and concluded that all of the criteria were met as of February 2024. Accordingly, the Company has reported the results of operations for the Disposal Group as discontinued operations in the Condensed Consolidated Statements of Operations through the date of sale.

All depreciation and amortization expense associated with intangible assets, property, plant and equipment and right of use assets associated with the Disposal Group ceased as of February 2, 2024.

Financial results of the Disposal Group for the three and six months ended June 30, 2024 reported as Income from discontinued operations (net of tax) on the Condensed Consolidated Statements of Operations are as follows:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
| **Revenue** | $176.7 | $361.0 |
| **Costs and expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of services and products, excluding items below | 123.9 | 246.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative, excluding items below | 40.9 | 84.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization |  | 5.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring and severance related charges | 1.9 | 2.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transaction costs | 6.2 | 10.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating costs and expenses | 172.9 | 349.3 |
| **Operating income** | 3.8 | 11.7 |
| Interest expense | 0.3 | 0.7 |
| Other income, net | (0.4) | (1.3) |
| Income from discontinued operations before income taxes | 3.9 | 12.3 |
| Income tax expense | 0.8 | 2.4 |
| **Net income from discontinued operations** | $3.1 | $9.9 |

---

The following is selected operating and investing cash flow activity from discontinued operations included in the Condensed Consolidated Statements of Cash Flows:

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended <br>June 30,** | **Six Months Ended <br>June 30,** |
|  | **2025** | **2024** |
| Depreciation and amortization | $— | $5.7 |
| Settlement adjustment on sale of discontinued operations | $(14.5) | $— |
| Capital expenditures | $— | $(9.5) |

---

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**10. Restructuring and Severance**

Liabilities have been established for employee separations and contract terminations. A summary of activity in the restructuring liability is shown below:

---

| | | | |
|:---|:---|:---|:---|
| **<u>(dollars in millions)</u>** | **Employee Separation** | **Contract Terminations** | **Total** |
| Balance as of December 31, 2024 | $40.2 | $0.2 | $40.4 |
| Charges | 3.7 |  | 3.7 |
| Payments | (40.2) |  | (40.2) |
| Balance as of March 31, 2025 | $3.7 | $0.2 | $3.9 |
| Payments | (0.5) |  | (0.5) |
| Reversals |  | (0.2) | (0.2) |
| Balance as of June 30, 2025 | $3.2 | $— | $3.2 |

---

In the fourth quarter of 2024, the Company executed a restructuring plan consisting of an organizational restructuring to centralize the Company's management, align resources with strategic product lines and reduce costs associated with certain functions (the "Organizational Restructuring"). Certain employees were offered enhanced severance benefits under the 2024 voluntary severance program ("2024 VSP"). The Organizational Restructuring has resulted in the elimination of certain positions and termination of employment for certain employees in the Network segment and the Corporate function. These charges were recorded in the fourth quarter of 2024 at the time management resolved to undertake the Organizational Restructuring and are expected to be fully paid in 2025.

Severance charges of $3.7 million were recorded in the first quarter of 2025 related to a continuation of the 2024 VSP offered to certain employees in the Network segment.

Contract termination costs consist of payments due to vendors to exit contractual agreements that will no longer be utilized as a result of the Company's decision to cease operations of an ancillary business as part of its ongoing integration in 2024. In the second quarter of 2025, $0.2 million of previously accrued contract termination costs were reversed as they are no longer expected to be incurred.

A summary of restructuring activity is presented below:

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| | | | |
|:---|:---|:---|:---|
| **<u>(dollars in millions)</u>** | **Network** | **Corporate** | **Total** |
| Balance as of December 31, 2024 | $39.2 | $1.2 | $40.4 |
| Charges | 3.7 |  | 3.7 |
| Payments | (39.1) | (1.1) | (40.2) |
| Balance as of March 31, 2025 | $3.8 | $0.1 | $3.9 |
| Payments | (0.5) |  | (0.5) |
| Reversals | (0.2) |  | (0.2) |
| Balance as of June 30, 2025 | $3.1 | $0.1 | $3.2 |

---

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**11. Business Segment Information**

The Company's operations are managed and reported to its Chief Executive Officer ("CEO"), the Company's chief operating decision maker ("CODM"). The CODM evaluates the performance of two regions, Greater Cincinnati, which services customers through the altafiber brand, and Hawaii, which services customers through our Hawaiian Telcom brand, and allocates resources based on geography. These operating segments are aggregated into one reportable segment, Network, due to similarities in the nature and economics of the regions, suppliers utilized, operating processes, and long-term financial performance. The accounting policies for the Network segment are consistent with those described in the Summary of Significant Accounting Policies.

The CODM uses Operating Income to evaluate income or loss generated from each region and to guide decisions on capital investments. These decisions may include capital expenditures and/or acquisitions. See Note 2 for a description of the Company's disaggregated revenues by product and service line. Significant segment expenses are presented in the Company's consolidated statements of operations. Additional disaggregated significant segment expenses that are reviewed by the CODM, that are not separately presented on the Company's consolidated statements of operations, are presented below. Segment asset information is not used by the CODM to allocate resources.

Certain corporate administrative expenses have been allocated to the Network segment based upon the nature of the expense.

Our business segment information is as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| **<u>(dollars in millions)</u>** | **2025** | **2024** | **2025** | **2024** |
| **Revenue** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Network | $274.8 | $272.8 | $551.2 | $544.4 |
| Total revenue | $274.8 | $272.8 | $551.2 | $544.4 |
| **Operating income (loss)** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Network | $17.6 | $4.2 | $33.9 | $8.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate | (6.2) | (6.4) | (11.8) | (13.0) |
| Total operating income (loss) | $11.4 | $(2.2) | $22.1 | $(5.0) |
| **Expenditures for long-lived assets\*** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Network | $140.0 | $132.7 | $280.4 | $288.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate | 3.1 |  | 5.9 |  |
| Total expenditures for long-lived assets | $143.1 | $132.7 | $286.3 | $288.0 |
| **Depreciation and amortization** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Network | $87.2 | $80.2 | $171.8 | $157.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate | 0.1 | 0.1 | 0.1 | 0.1 |
| Total depreciation and amortization | $87.3 | $80.3 | $171.9 | $157.7 |

---

\* Includes cost of acquisitions

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The following table provides information about the Network segment significant expenses that are reviewed by the CODM, that are not separately presented on the Company's consolidated statements of operations:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| **<u>(dollars in millions)</u>** | **2025** | **2024** | **2025** | **2024** |
| **Network Revenue** | $274.8 | $272.8 | $551.2 | $544.4 |
| Less: Significant and other segment expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Employee and related costs | 44.8 | 57.0 | 90.0 | 112.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Programming expense | 35.8 | 38.3 | 70.6 | 76.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Network expense | 5.9 | 8.3 | 13.4 | 17.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract services | 22.8 | 24.6 | 45.0 | 47.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other expenses | 60.9 | 60.5 | 123.0 | 125.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization expense | 87.2 | 80.2 | 171.8 | 157.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring and severance related charges | (0.2) | (0.3) | 3.5 | (0.1) |
| **Network operating costs and expenses** | 257.2 | 268.6 | 517.3 | 536.4 |
| **Network operating income** | $17.6 | $4.2 | $33.9 | $8.0 |

---

------

**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations**

**Cautionary Statement Concerning Forward-Looking Statements**

This Quarterly Report on Form 10-Q and the documents incorporated by reference herein contain forward-looking statements regarding future events and results that are subject to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, are statements that could be deemed forward-looking statements. These statements are based on current expectations, estimates, forecasts, and projections about the industries in which we operate and the beliefs and assumptions of our management. Words such as "expects," "anticipates," "predicts," "projects," "intends," "plans," "believes," "seeks," "estimates," "continues," "endeavors," "strives," "may," "will," "proposes," "potential," "could," "should," "outlook" or variations of such words and similar expressions are intended to identify such forward-looking statements. In addition, any statements that refer to projections of future financial performance, anticipated growth and trends in businesses, and other characterizations of future events or circumstances are forward-looking statements. Readers are cautioned these forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties, which could cause actual results to differ materially and adversely from those reflected in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in this Quarterly Report on Form 10-Q and, in particular, the risks discussed under the caption "Risk Factors" in Part II, Item 1A, and those discussed in other documents the Company filed with the Securities and Exchange Commission ("SEC"). Actual results may differ materially and adversely from those expressed in any forward-looking statements. The Company undertakes no obligation to revise or update any forward-looking statements for any reason.

**Introduction**

This Management's Discussion and Analysis section provides an overview of Cincinnati Bell Inc.'s financial condition as of June 30, 2025 and the results of operations for the three and six months ended June 30, 2025 and 2024. This discussion should be read in conjunction with the accompanying Condensed Consolidated Financial Statements and accompanying notes as well as the Company's Annual Report on Form 10-K for the year ended December 31, 2024. Results for interim periods may not be indicative of results for the full year or any other interim period.

**Business Overview**

Cincinnati Bell Inc. and its consolidated subsidiaries ("Cincinnati Bell," "we," "our," "us" or the "Company") provide integrated communications that keep consumer and enterprise customers connected with each other and with the world. We provide Data, Video, and Voice solutions to consumer and enterprise customers over an expanding fiber network and a legacy copper network. The Company serves customers in two distinct regions. These regions are defined by the Company as 1) Greater Cincinnati, which includes Cincinnati, Ohio, a radius of approximately 25 miles around Cincinnati, Ohio, including parts of northern Kentucky and southeastern Indiana, Dayton, Ohio, and Columbus, Ohio that is served through our altafiber brand and 2) Hawaii, which includes the island of Oahu and the neighboring islands that is served through our Hawaiian Telcom brand. The Company operates its businesses through one reportable business segment.

During 2025, the U.S. announced a variety of trade-related actions, including the imposition of tariffs on imports from several countries. In response, many countries announced their own retaliatory tariffs. Certain tariffs were paused for a period of time but have not been withdrawn. The global trade environment continues to be volatile. The likelihood of the U.S. or its trading partners resuming tariffs, imposing new or reciprocal tariffs, or other forms of trade-related sanctions is highly uncertain. We do not yet know the impact of the recent government actions or the potential changes in global political conditions on our business due to uncertainties as the situation continues to evolve.

**Sale of IT Services Business**

On February 2, 2024, the Company entered into a definitive purchase agreement (the "Purchase Agreement") with TowerBrook Capital Partners ("TowerBrook") which provided that TowerBrook would acquire the CBTS and OnX businesses (the "Disposal Group") from the Company for a purchase price of $670.0 million (the "Proceeds"). Management evaluated the criteria to report the Disposal Group as held for sale and concluded that all of the criteria were met as of February 2024. As a result, the Company reported the assets and the liabilities included in the Disposal Group as held for sale and the operations as discontinued for interim periods and comparable prior year periods.

On December 2, 2024 (the "Closing Date"), upon the terms and subject to the conditions set forth in the Purchase Agreement, the divestiture of the Disposal Group was completed. The Proceeds from the Purchase Agreement included cash from TowerBrook in the amount of $688.4 million. The Company recorded a preliminary pre-tax gain on sale of the Disposal Group of $93.7 million upon closing of the sale which was the amount of cash proceeds received (net of cash divested) less costs to sell in excess of the Disposal Group's carrying value. In the first quarter of 2025, the Proceeds were adjusted for post-closing adjustments as defined in the Purchase Agreement, and the Company recorded a liability of $14.5 million that was paid to TowerBrook in April 2025. The pre-tax gain of $93.7 million recorded in the prior year was reduced by a pre-tax loss of $14.5 million recorded in the first quarter of 2025, for a net pre-tax gain on sale of the Disposal Group of $79.2 million. The proceeds received in 2024 were used to pay on the Closing Date (1) $180.0 million of existing debt and accrued interest under the Credit Agreement, (2) $214.3 million of existing debt and accrued interest under the Company's Network and CBTS Receivables Facilities, (3) $23.9 million of consideration payable for transaction-related bonuses, and (4) transaction costs of $7.1 million primarily consisting of legal and transaction-related advisory fees associated with the sale.

------

**<u>Discussion of Results of Operations</u>**

The Company provides products and services that can be categorized as Data, Video, Voice or Other to both residential and commercial customers. These products and services are further categorized by management as Strategic, Legacy, or Other. Cincinnati Bell Telephone Company LLC ("CBT"), a subsidiary of the Company, is the incumbent local exchange carrier ("ILEC") for a geography that covers a radius of approximately 25 miles around Cincinnati, Ohio, and includes parts of northern Kentucky and southeastern Indiana. CBT has operated in this territory for over 150 years. In 2022, the Company announced that we will begin doing business as "altafiber" and started our network expansion outside of this territory to provide fiber services to adjacent markets. Voice and data services that are delivered beyond the Company's ILEC territory, particularly in Dayton, Mason, and Columbus, Ohio, are provided through the operations of Cincinnati Bell Extended Territories LLC ("CBET"), a subsidiary of CBT. On July 2, 2018, the Company acquired Hawaiian Telcom. Hawaiian Telcom is the ILEC for the State of Hawaii and the largest full-service provider of communications services and products in the state. Originally incorporated in Hawaii in 1883 as Mutual Telephone Company, Hawaiian Telcom has a strong heritage of over 140 years as Hawaii's communications carrier. Its services are offered on all of Hawaii's major islands, with recent expansion of its video service from Oahu to all of the major islands. On May 2, 2022, the Company acquired Agile, based in Canton, Ohio. Agile leases wireless infrastructure assets to third parties and provides connectivity through hybrid fiber wireless data networks primarily to customers in Ohio and Pennsylvania. On April 17, 2023, the Company acquired Ohio Transparent Telecom Inc. ("OTT"). OTT provides network security, data connectivity, and unified communications solutions to commercial and enterprise customers across multiple sectors throughout Ohio and Michigan.

Strategic revenue include internet access for speeds that meet or exceed 100 megabits per second and Enterprise Fiber, each categorized below as Data as well as Video. The Company is able to deliver speeds of up to six gigabits per second to approximately 80% of the Cincinnati ILEC operating territory and speeds up to one gigabit or more per second to nearly 65% of Hawaii's total addressable market. Enterprise Fiber products include metro-ethernet, dedicated internet access, wavelength, IRU contracts, connectivity services provided by Agile, and wireless backhaul to macro-towers and small cells. Hawaiian Telcom Enterprise Fiber revenue also includes revenue from the SEA-US cable system. As enterprise customers migrate from legacy products and copper-based technology, our metro-ethernet product becomes the preferred method of transport due to its ability to support multiple applications on a single physical connection.

Legacy revenue include internet access for speeds of less than 100 megabits per second, traditional voice lines, consumer and business long distance, switched access, digital trunking, DSL, DS0, DS1, DS3, and other value-added services such as caller identification, voicemail, call waiting and call return. Legacy products also include certain communications services including data and VoIP services, tailored solutions that include converged IP communications of data, voice and mobility applications, MPLS (Multi-Protocol Label Switching) and conferencing services.

Other revenue is comprised of wire care, time and materials projects, advertising, management of distributed antenna systems, certain pass-through fees such as franchise fees and regulatory fees, other fees that are not billed on a monthly recurring basis, and subsidized fiber build project revenue related to extending the Company's fiber network in the Greater Cincinnati territory subsidized through our UniCity program and in Hawaii subsidized through a customer contract. Other revenue also includes revenue contributed by Hawaiian Telcom for the sale of hardware and maintenance contracts as well as installation projects and cloud services which include storage, SLA-based monitoring and management, cloud computing and cloud consulting.

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---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| **<u>(dollars in millions)</u>** | **2025** | **2024** | **Change** | **% Change** | **2025** | **2024** | **Change** | **% Change** |
| Revenue: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Data | $159.3 | $143.3 | $16.0 | 11% | $315.6 | $284.8 | $30.8 | 11% |
| &nbsp;&nbsp;&nbsp;&nbsp;Video | 38.8 | 44.7 | (5.9) | (13)% | 77.6 | 89.9 | (12.3) | (14)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Voice | 53.8 | 57.6 | (3.8) | (7)% | 109.2 | 116.9 | (7.7) | (7)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 22.9 | 27.2 | (4.3) | (16)% | 48.8 | 52.8 | (4.0) | (8)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Revenue | 274.8 | 272.8 | 2.0 | 1% | 551.2 | 544.4 | 6.8 | 1% |
| Operating costs and expenses: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of services and products | 120.8 | 132.1 | (11.3) | (9)% | 242.9 | 265.6 | (22.7) | (9)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative | 49.4 | 56.6 | (7.2) | (13)% | 99.1 | 113.3 | (14.2) | (13)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 87.2 | 80.2 | 7.0 | 9% | 171.8 | 157.6 | 14.2 | 9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring and severance related charges | (0.2) | (0.3) | 0.1 | (33)% | 3.5 | (0.1) | 3.6 | n/m |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating costs and expenses | 257.2 | 268.6 | (11.4) | (4)% | 517.3 | 536.4 | (19.1) | (4)% |
| Network operating income | $17.6 | $4.2 | $13.4 | n/m | $33.9 | $8.0 | $25.9 | n/m |
| Network operating margin | 6.4% | 1.5% |  | 4.9 pts | 6.2% | 1.5% |  | 4.7 pts |
| Capital expenditures | $140.0 | $131.9 | $8.1 | 6% | $280.4 | $287.1 | $(6.7) | (2)% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
| **<u>Metrics information (in thousands):</u>** | **2025** | **2024** | **Change** | **% Change** |
| ***Greater Cincinnati*** |  |  |  |  |
| **Strategic** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Internet\* | 378.9 | 350.8 | 28.1 | 8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Video | 107.5 | 119.3 | (11.8) | (10)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Enterprise Fiber - Ethernet Bandwidth | 16845 | 14513 | 2332 | 16% |
| &nbsp;&nbsp;&nbsp;&nbsp;Units passed FTTP\*\* | 934.2 | 809.6 | 124.6 | 15% |
| **Legacy** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Internet\*\*\* | 13.0 | 29.2 | (16.2) | (55)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Voice Lines | 183.5 | 207.2 | (23.7) | (11)% |

---

\* Internet speeds of 100mbps or more

\*\* Fiber-to-the-Premise (FTTP).

\*\*\* Internet speeds of less than 100mbps

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---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
| **<u>Metrics information (in thousands):</u>** | **2025** | **2024** | **Change** | **% Change** |
| ***Hawaii*** |  |  |  |  |
| **Strategic** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Internet\* | 116.4 | 95.8 | 20.6 | 22% |
| &nbsp;&nbsp;&nbsp;&nbsp;Video | 35.8 | 33.2 | 2.6 | 8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Enterprise Fiber - Ethernet Bandwidth | 9581 | 7571 | 2010 | 27% |
| &nbsp;&nbsp;&nbsp;&nbsp;Units passed FTTP\*\* | 435.1 | 368.4 | 66.7 | 18% |
| **Legacy** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Internet\*\*\* | 20.2 | 27.0 | (6.8) | (25)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Voice Lines\*\*\*\* | 146.2 | 160.6 | (14.4) | (9)% |

---

\* Internet speeds of 100mbps or more

\*\* Fiber-to-the-Premise (FTTP); includes units passed for both consumer and business on Oahu and neighboring islands

\*\*\* Internet speeds of less than 100mbps

\*\*\*\* In the first quarter of 2025, the Company updated its definition and reporting method in Hawaii. Voice Lines as of June 30, 2024 has also been updated to reflect the change in definition and reporting method.

------

**Revenue**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** |
|  | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
| **<u>(dollars in millions)</u>** | **Greater Cincinnati** | **Hawaii** | **Total** | **Greater Cincinnati** | **Hawaii** | **Total** |
| ***Revenue*** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Strategic |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Internet | $81.2 | $20.8 | $102.0 | $68.0 | $15.6 | $83.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Enterprise Fiber | 25.1 | 14.7 | 39.8 | 23.8 | 13.8 | 37.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Video | 32.0 | 6.8 | 38.8 | 37.7 | 7.0 | 44.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Strategic | 138.3 | 42.3 | 180.6 | 129.5 | 36.4 | 165.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Legacy |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Voice | 31.8 | 22.0 | 53.8 | 34.2 | 23.4 | 57.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Internet | 3.0 | 3.1 | 6.1 | 6.0 | 3.8 | 9.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Data | 6.9 | 4.5 | 11.4 | 7.2 | 5.1 | 12.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Legacy | 41.7 | 29.6 | 71.3 | 47.4 | 32.3 | 79.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 8.4 | 14.5 | 22.9 | 10.7 | 16.5 | 27.2 |
| Total Network revenue | $188.4 | $86.4 | $274.8 | $187.6 | $85.2 | $272.8 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
| **<u>(dollars in millions)</u>** | **Greater Cincinnati** | **Hawaii** | **Total** | **Greater Cincinnati** | **Hawaii** | **Total** |
| ***Revenue*** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Strategic |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Internet | $160.5 | $39.8 | $200.3 | $133.2 | $30.0 | $163.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Enterprise Fiber | 49.8 | 29.4 | 79.2 | 47.8 | 27.5 | 75.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Video | 63.6 | 14.0 | 77.6 | 75.6 | 14.3 | 89.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Strategic | 273.9 | 83.2 | 357.1 | 256.6 | 71.8 | 328.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Legacy |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Voice | 64.9 | 44.3 | 109.2 | 69.8 | 47.1 | 116.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Internet | 6.7 | 6.3 | 13.0 | 12.9 | 7.9 | 20.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Data | 14.1 | 9.0 | 23.1 | 14.7 | 10.8 | 25.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Legacy | 85.7 | 59.6 | 145.3 | 97.4 | 65.8 | 163.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 19.7 | 29.1 | 48.8 | 19.7 | 33.1 | 52.8 |
| Total Network revenue | $379.3 | $171.9 | $551.2 | $373.7 | $170.7 | $544.4 |

---

------

*<u>Total Network revenue</u>*

Revenue totaling $274.8 million and $551.2 million for the three and six months ended June 30, 2025 increased $2.0 million and $6.8 million, respectively, compared to the same periods in 2024 primarily due to increased Strategic revenue from growth in the Strategic Internet subscriber base which more than offset the decrease in Video, Legacy Internet and Legacy Voice revenue.

*<u>Strategic</u>*

Strategic revenue for the three and six months ended June 30, 2025 increased $14.7 million and $28.7 million, respectively, compared to the same periods in 2024 primarily due to the increase in the subscriber base for internet. The internet subscriber base continues to increase as we focus attention on growing the strategic internet subscriber base, adding 12,400 strategic internet subscribers in Greater Cincinnati and 10,800 strategic internet subscribers in Hawaii in the six months ended June 30, 2025. In Greater Cincinnati, we passed 21,300 and 35,500 addresses in the three and six months ended June 30, 2025 primarily related to multi-dwelling units and single family homes in Dayton, Ohio and in Columbus, Ohio. In Hawaii, our accelerated fiber build pace enabled us to pass 16,700 and 34,300 addresses in the three and six months ended June 30, 2025. The Average Revenue Per User ("ARPU") for the three and six months ended June 30, 2025 increased for internet in both Greater Cincinnati and Hawaii compared to the same period in 2024 primarily due to price increases and more customers subscribing to higher broadband tiers.

Enterprise Fiber revenue for the three and six months ended June 30, 2025 increased $2.2 million and $3.9 million, respectively, compared to the same periods in 2024 primarily due to customers migrating from legacy product offerings to higher bandwidth fiber solutions as evidenced by the 16% and 27% increases in Ethernet Bandwidth in Greater Cincinnati and Hawaii, respectively. In addition, revenue in Hawaii increased $0.9 million and $1.9 million, respectively, associated with the IRU contract related to the SEA-US cable system.

*<u>Legacy</u>*

Legacy revenue for the three and six months ended June 30, 2025 decreased $8.4 million and $17.9 million, respectively, compared to the same periods in 2024 due to the decline in voice lines and internet subscribers. Voice lines declined 11% and 9% in Greater Cincinnati and Hawaii, respectively, as traditional voice lines become less relevant. Legacy internet subscribers continue to decrease in Greater Cincinnati and Hawaii as subscribers demand the higher speeds that can be provided by fiber. In addition, declines in DS1, DS3 and digital trunking have contributed to the Legacy revenue decline for the three and six months ended June 30, 2025 compared to the same periods in 2024 as customers migrate away from these solutions to fiber-based solutions.

*<u>Other</u>*

Other revenue for the three and six months ended June 30, 2025 decreased $4.3 million and $4.0 million, respectively, compared to the same periods in the prior year primarily due to decreased revenue from subsidized fiber build projects in the second quarter of 2025 impacting both comparable periods.

**Operating Costs and Expenses**

Cost of services and products decreased $11.3 million for the three months ended June 30, 2025 compared to the same period in the prior year primarily due to decreases in payroll related costs of $7.0 million due to headcount reductions executed in the prior year, video content costs of $2.6 million, and network related expenses of $2.1 million related to the decommissioning of certain copper assets as customers continue to migrate from copper-based services to fiber-based services. The decrease was partially offset by a $1.0 million increase in software development expenses due to higher software support fees.

Cost of services and products decreased $22.7 million for the six months ended June 30, 2025 compared to the same period in the prior year primarily due to decreases in payroll related costs of $12.8 million, video content costs of $6.4 million, and $3.9 million of network related expenses related to similar trends that impacted the quarter. The decrease was partially offset by higher software development expenses of $1.4 million.

SG&A expenses decreased $7.2 million for the three months ended June 30, 2025 compared to the same period in the prior year primarily due to decreased payroll related costs of $5.3 million, decreased contract services and legal fees of $1.4 million and decreased advertising expense of $0.3 million. The decrease in payroll related costs is primarily due to headcount reductions made during restructuring initiatives that were executed in the fourth quarter of 2024. The decrease in contract services and legal costs is primarily due to lower expenses incurred in 2025 related to the wildfires in Hawaii compared to 2024 as additional expenses are now partially covered by our insurance policies.

SG&A expenses decreased $14.2 million for the six months ended June 30, 2025 compared to the same period in the prior year primarily due to decreased payroll related costs of $9.5 million, contract services and legal fees of $2.6 million, and advertising expenses of $2.5 million. The decreases in payroll related costs and contract services and legal costs are related to similar trends that impacted the quarter.

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Depreciation and amortization expense increased $7.0 million and $14.2 million for the three and six months ended June 30, 2025, respectively, compared to the same period in 2024 primarily due to increased additions from capital invested to expand and upgrade the Company's fiber network and related capacity.

Restructuring and severance charges of $3.5 million were recorded for the six months ended June 30, 2025 related to a continuation of the 2024 Voluntary Severance Plan offered to certain employees that was finalized in the first quarter of 2025.

**Capital Expenditures**

Capital expenditures are incurred to expand our fiber network, upgrade and increase capacity for our networks, and to maintain our fiber and copper networks. The Company is focused on building FTTP addresses, and in the three and six months ended June 30, 2025, we passed 21,300 and 35,500 FTTP addresses, respectively, in Greater Cincinnati. As of June 30, 2025, the Company is able to deliver internet speeds up to six gigabits or more to 934,200 residential and commercial addresses, or approximately 80% of our operating territory in Greater Cincinnati. Greater Cincinnati capital expenditures for the three and six months ended June 30, 2025 decreased $8.8 million and $17.2 million, respectively, compared to the comparable periods in the prior year due to network upgrades that were completed in 2024 and timing of equipment purchases related to customer installations. Additionally, Agile capital expenditures for the three and six months ended June 30, 2025 decreased by $4.3 million and $7.5 million, respectively, primarily related to tower build projects in 2024 that did not recur in 2025.

In Hawaii, we passed 16,700 and 34,300 FTTP addresses in the three and six months ended June 30, 2025. Hawaii capital expenditures for the three and six months ended June 30, 2025 increased $17.0 million and $10.5 million, respectively, compared to the comparable periods in the prior year due to construction expenditures related to a specific IRU agreement to provide dedicated fiber routes and vehicle purchases in the first quarter of 2024 partially offset by equipment purchases for customer installations in the first quarter of 2025. As of June 30, 2025, the Company is able to deliver internet speeds up to six gigabits or more to 435,100 residential and commercial addresses, or nearly 65% of Hawaii's total addressable market.

**Corporate**

Corporate is comprised primarily of general and administrative costs that have not been allocated to the Network business segment and transaction and integration costs. Corporate costs totaled $6.2 million and $11.8 million in the three and six months ended June 30, 2025, respectively, compared to $6.4 million and $13.0 million in three and six months ended June 30, 2024, respectively. Corporate costs decreased in both comparable periods primarily due to expenses related to the Disposal Group incurred by Corporate in 2024 that did not recur in 2025 as well as higher bank fees related to the sale of certain receivables under the terms of the factoring agreement in the first quarter of 2024. These increased expenses in 2024 were partially offset by increased expenses of $1.4 million and $3.2 million in the three and six months ended June 30, 2025, respectively, related to an ongoing project to replace certain of the Company's legacy financial systems.

Interest expense decreased $12.1 million and $20.6 million, respectively, for the three and six months ended June 30, 2025 compared to the same period in 2024 primarily due to less interest expense incurred on the Network Receivables Facility and on the Credit Agreement's revolving credit facility which both were not drawn on during the first half of 2025. The decrease in interest expense was partially offset by increased debt of $300 million on the Term B-4 Loan that the Company entered into in the second quarter of 2024.

Other components of pension and postretirement benefit plans benefit increased for the three and six months ended June 30, 2025 compared to the same period in 2024 primarily due to settlement gains of $1.0 million and $0.2 million, respectively, recorded in the first and second quarters of 2025 related to lump sum payments funded by the Hawaii defined benefit plan for union employees.

Other income, net totaled $3.1 million and $10.2 million for the three and six months ended June 30, 2025, respectively, primarily due to interest income of $2.8 million and $6.4 million in the three and six months ended June 30, 2025, respectively. In addition, the Company recorded a patronage distribution of $6.7 million from one of the syndicated lenders of the Term B-1 Loans and Term B-3 Loans in the Company's Credit Agreement. Income was partially offset by a net loss associated with the Company's interest rate swap agreements and interest rate cap agreements of $2.8 million in the six months ended June 30, 2025.

Other income, net totaled $6.5 million and $36.5 million for the three and six months ended June 30, 2024, respectively, primarily due to recording gains associated with the Company's interest rate swap agreements and interest rate cap agreements of $6.4 million and $27.3 million in the three and six months ended June 30, 2024, respectively. In addition, in the six months ended June 30, 2024, the Company recorded a patronage distribution of $6.1 million from one of the syndicated lenders of the Term B-1 Loans and Term B-3 Loans in the Company's Credit Agreement and received insurance reimbursements of $3.0 million related to the physical loss and damage claims filed as a result of the wildfires in Hawaii.

------

Loss from continuing operations before income taxes totaled $17.5 million for the three months ended June 30, 2025 resulting in a decrease in the loss of $22.5 million compared to the same period in 2024 due to operating income generated in addition to lower interest expense in the three months ended June 30, 2025 compared to the same period in the prior year.

Loss from continuing operations before income taxes totaled $31.4 million for the six months ended June 30, 2025 resulting in a decrease in the loss of $22.5 million compared to the same period in 2024 due to operating income generated and lower interest expense, partially offset by an unfavorable change to other income, net in the six months ended June 30, 2025 compared to the same period in the prior year.

The income tax provision for the three months ended June 30, 2025 for continuing operations was an expense of $0.6 million, despite a loss before income tax of $17.5 million. The tax expense reported is significantly lower than the $3.7 million benefit expected at statutory rates, due primarily to valuation allowances on additional deferred tax assets related to disallowed interest expense deductions.

The tax expense reported in the three months ended June 30, 2025 for continuing operations is higher than the tax benefit in the comparable period of 2024 for continuing operations due to a lower loss before tax, with valuation allowances recorded against net operating loss deferred tax assets recorded in both periods.

The income tax provision for the six months ended June 30, 2025 for continuing operations was an expense of $1.1 million, despite a loss before income tax of $31.4 million. The tax expense reported is significantly lower than the $6.6 million benefit expected at statutory rates, due primarily to valuation allowances on additional deferred tax assets related to disallowed interest expense deductions.

In the six months ended June 30, 2024, a significant tax expense was reported in continuing operations, despite a loss before income tax, due most notably to additional valuation allowances recorded in that comparable period. Additionally, a discrete tax expense item was recorded in the comparable period in order to record a deferred tax liability for the tax effect of the difference between book basis and tax basis in the Disposal Group.

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**<u>Financial Condition, Liquidity, and Capital Resources</u>**

As of June 30, 2025, the Company had an accumulated deficit of $526.5 million and $1,721.4 million of outstanding indebtedness.

The Company's primary source of cash is generated by operations. The Company generated $70.0 million and $128.7 million of cash flows from operations during the six months ended June 30, 2025 and 2024, respectively. As of June 30, 2025, the Company had $617.2 million of short-term liquidity, comprised of $188.4 million of cash and cash equivalents, $400.0 million of undrawn capacity on our Revolving Credit Facility due 2028 and $28.8 million available under the Network Receivables Facility.

As of June 30, 2025, the Company had no borrowings and $26.7 million of letters of credit outstanding under the Network Receivables Facility, leaving $28.8 million remaining availability on the total borrowing capacity of $55.5 million. Capacity on the Network Receivables Facility is calculated and will continue to be calculated based on the quantity and quality of outstanding accounts receivables.

In May 2024, the Company entered into an amendment (the "Amendment No. 3") to the Credit Agreement to provide for (i) a $300 million incremental increase to the existing Term B-2 Loans (as defined in the Credit Agreement) (the "Incremental Term B-2 Loans") and (ii) the extension of the maturity date for the commitments under the Company's Revolving Credit Facility to August 2028. The Incremental Term B-2 Loans are part of the same class of Loans as the existing Term B-2 Loans and have the same terms as such Term B-2 Loans. The proceeds of the Incremental Term B-2 Loans were used (a) to repay the outstanding loans under the Revolving Credit Facility, (b) to repay a portion of borrowings under the Company's accounts receivable securitization facility, (c) to pay fees, expenses and other transaction costs related to Amendment No. 3 and the transactions contemplated thereby and (d) for working capital and other general corporate purposes. The other material terms, conditions and covenants of the Credit Agreement were unchanged by Amendment No. 3.

In June 2024, the Company entered into an amendment (the "Amendment No. 4") to the Credit Agreement to provide for a reduction in the interest rate margin applicable to the Term B-3 Loans under the Credit Agreement. The other material terms, conditions and covenants of the Credit Agreement were unchanged by Amendment No. 4.

In December 2024, the Company entered into an amendment (the "Amendment No. 5") to the Credit Agreement to provide for (i) a reduction in the interest rate margin applicable to the Term B-1 Loans and the Term B-3 Loans under the Credit Agreement and (ii) the incurrence of a new tranche of $930,590,472 senior secured term loans (the "Term B-4 Loans"). The proceeds of the Term B-4 Loans were used to refinance in full the outstanding aggregate principal amount of the Term B-2 Loans and to pay fees and expenses in connection with the refinancing of the Term B-2 Loans.

In March 2025, the Company executed an amendment to the Network Receivables Facility that increased the maximum borrowing limit for loans and letters of credit to $60.0 million, extended the termination date to March 2028 and extended the renewal date to March 2027.

One of the syndicated lenders of the Term B-1 Loans and Term B-3 Loans in the Credit Agreement is a cooperative bank owned by its customers. Annually, this bank distributes patronage in the form of cash and stock in the cooperative based on the Company's average outstanding loan balance. The Company will recognize the patronage, generally as declared, in "Other income, net." The stock component will be recognized at its stated cost basis. The Company received $6.7 million and $6.1 million in patronage dividends in the six months ended June 30, 2025 and 2024, respectively.

The Company's primary uses of cash are for working capital requirements, capital expenditures and debt service and, to a lesser extent, to fund pension and retiree medical obligations. The Company believes that cash on hand, operating cash flows, its Revolving Credit Facility due 2028, its Network Receivables Facility, and the expectation that the Company will continue to have access to capital markets to refinance debt and other obligations as they mature and come due, should allow the Company to meet its cash requirements for the foreseeable future.

As of June 30, 2025, the Company was in compliance with the Credit Agreement covenants and ratios.

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**Cash Flows**

Cash provided by operating activities during the six months ended June 30, 2025 totaled $70.0 million, a decrease of $58.7 million compared to the same period in the prior year. The decrease is primarily due to cash flows associated with the Disposal Group that are included in the prior year period but excluded in the current period as a result of the completion of the sale transaction in December 2024. Additionally, restructuring payments of $40.7 million in 2025 associated with initiatives executed in the fourth quarter of 2024 and first half of 2025, an increase of $28.5 million compared to payments of $12.2 million in the same period in the prior year, contributed to lower operating cash flows. These decreases to operating cash flows were partially offset by lower interest payments of $19.6 million, primarily due to no borrowings on the Network Receivables Facility or the Credit Agreement's revolving credit facility in the first half of 2025.

Cash used in investing activities during the six months ended June 30, 2025 totaled $294.7 million, an increase of $0.3 million compared to the same period in the prior year. Increase is due to $14.5 million of proceeds previously received from the sale of CBTS in 2024 that was remitted back to TowerBrook in the second quarter of 2025 related to post-closing adjustments as defined in the Purchase Agreement. This increase was partially offset by decreased capital expenditures of $10.3 million primarily due to expenditures incurred by the Disposal Group in the prior year comparable period and proceeds from the sale of property received in the six months ended June 30, 2025.

Cash used in financing activities during the six months ended June 30, 2025 totaled $48.6 million primarily due to the extinguishment of the Company's existing Paniolo financing arrangement of $21.4 million and a repayment of $18.9 million to resolve a temporary bank overdraft resulting from a miscommunication on payroll dates and related funding requirements.

Cash provided by financing activities during the six months ended June 30, 2024 totaled $170.6 million primarily due to the issuance of $300.0 million of Incremental Term B-2 Loans which was partially offset by net payments on the Revolving Credit Facility due 2028 and receivables facilities of $105.5 million and $10.7 million, respectively.

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**<u>Regulatory Matters</u>**

Refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2024 for a complete description of regulatory matters. There are no material changes for the six months ended June 30, 2025.

**<u>Contingencies</u>**

In the normal course of business, the Company is subject to various regulatory and tax proceedings, lawsuits, claims and other matters. The Company believes adequate provision has been made for all such asserted and unasserted claims in accordance with accounting principles generally accepted in the United States. Such matters are subject to many uncertainties and outcomes that are not predictable with assurance.

**<u>Critical Accounting Policies</u>**

The Company's consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. Application of these principles requires management to make estimates or judgments that affect the amounts reported in the accompanying Condensed Consolidated Financial Statements and information available as of the date of the financial statements. As this information changes, the financial statements could reflect different estimates or judgments.

The Company's most critical accounting policies and estimates are described in our Annual Report on Form 10-K for the year ended December 31, 2024.

**<u>Recently Issued Accounting Standards</u>**

The adoption of new accounting standards did not have a material impact on the Company's financial results for the six months ended June 30, 2025. Furthermore, accounting standards that have been issued or proposed by the FASB or other standard-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company's condensed consolidated financial statements upon adoption.

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**Item 3. Quantitative and Qualitative Disclosures about Market Risk**

Refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2024 for a description of the Company's market risks.

**Item 4. Controls and Procedures**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Evaluation of disclosure controls and procedures.

Cincinnati Bell Inc.'s management, with the participation of the Chief Executive Officer and Chief Financial Officer, have evaluated the effectiveness of the Company's disclosure controls and procedures (as defined in SEC Rule 13a-15(e)) as of the end of the period covered by this report. Based on this evaluation, Cincinnati Bell Inc.'s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of the period covered by this report, such controls and procedures were effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Changes in internal control over financial reporting.

Cincinnati Bell Inc.'s management, with the participation of the Chief Executive Officer and Chief Financial Officer, have evaluated any changes in the Company's internal control over financial reporting that occurred during the second quarter of 2025 and have concluded that there were no changes to Cincinnati Bell Inc.'s internal control over financial reporting during the second quarter of 2025 that materially affect, or are reasonably likely to materially affect, Cincinnati Bell Inc.'s internal control over financial reporting.

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PART II. OTHER INFORMATION

**Item 1. Legal Proceedings**

Cincinnati Bell and its subsidiaries are involved in a number of legal proceedings. Liabilities are established for legal claims when losses associated with the claims are judged to be probable and the loss can be reasonably estimated. In many lawsuits and arbitrations, including most class action lawsuits, it is not possible to determine whether a liability has been incurred or to estimate the amount of the liability until the case is close to resolution, in which case a liability will not be recognized until that time. Based on information currently available, consultation with counsel, available insurance coverage and recognized liabilities, the Company believes that except as otherwise described in Note 1 of the Notes to Condensed Consolidated Financial Statements (Unaudited) included in Item 1 of Part I of this Form 10-Q the eventual outcome of all claims will not, individually or in the aggregate, have a material effect on the Company's financial position or results of operations.

**Item 1A. Risk Factors**

Refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2024 for a comprehensive listing of the Company's risk factors. There were no material changes in the risk factors identified by the Company during the six months ended June 30, 2025.

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds**

None.

**Item 3. Defaults upon Senior Securities**

None.

**Item 4. Mine Safety Disclosure**

None.

**Item 5. Other Information**

No reportable items.

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**Item 6. Exhibits**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | <u>Incorporated by Reference</u> | <u>Incorporated by Reference</u> |  |  |
| Exhibit<br><u>Number</u> | <br><u>Exhibit Description</u> | <br><u>Form</u> | <br><u>Filing Date</u> | <br><u>Exhibit No.</u> | <br><u>SEC File No.</u> | Filed<br><u>Herewith</u> |
| [<u>3.1</u>](https://www.sec.gov/Archives/edgar/data/716133/000156459022020783/ck716133-ex31_585.htm) | Second Amended Articles of Incorporation of Cincinnati Bell Inc. | 10-K | 5/19/2022 | 3.1 | 1-8519 |  |
| [<u>3.2</u>](https://www.sec.gov/Archives/edgar/data/716133/000095017024109587/ck0000716133-ex3_2.htm) | Fourth Amended and Restated Regulations of Cincinnati Bell Inc. | 8-K | 9/26/2024 | 3.2 | 1-8519 |  |
| [<u>10.1</u>](ck0000716133-ex10_1.htm) | Employment Agreement between Cincinnati Bell Inc. and Gregory M. Wheeler effective as of February 23, 2023 |  |  |  |  | **+**<br>|
| [<u>31.1</u>](ck0000716133-ex31_1.htm) | Certificate of the Chief Executive Officer Pursuant to Rule 15d-14(a) |  |  |  |  | **+** |
| [<u>31.2</u>](ck0000716133-ex31_2.htm) | Certificate of the Chief Financial Officer Pursuant to Rule 15d-14(a) |  |  |  |  | **+** |
| 101 | The following financial statements from Cincinnati Bell Inc.'s Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 were formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations and Comprehensive Income (Loss), (iii) Condensed Consolidated Statements of Equity (Deficit), (iv) Condensed Consolidated Statements of Cash Flows, and (v) Notes to Condensed Consolidated Financial Statements. | The following financial statements from Cincinnati Bell Inc.'s Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 were formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations and Comprehensive Income (Loss), (iii) Condensed Consolidated Statements of Equity (Deficit), (iv) Condensed Consolidated Statements of Cash Flows, and (v) Notes to Condensed Consolidated Financial Statements. | The following financial statements from Cincinnati Bell Inc.'s Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 were formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations and Comprehensive Income (Loss), (iii) Condensed Consolidated Statements of Equity (Deficit), (iv) Condensed Consolidated Statements of Cash Flows, and (v) Notes to Condensed Consolidated Financial Statements. | The following financial statements from Cincinnati Bell Inc.'s Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 were formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations and Comprehensive Income (Loss), (iii) Condensed Consolidated Statements of Equity (Deficit), (iv) Condensed Consolidated Statements of Cash Flows, and (v) Notes to Condensed Consolidated Financial Statements. | The following financial statements from Cincinnati Bell Inc.'s Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 were formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations and Comprehensive Income (Loss), (iii) Condensed Consolidated Statements of Equity (Deficit), (iv) Condensed Consolidated Statements of Cash Flows, and (v) Notes to Condensed Consolidated Financial Statements. | The following financial statements from Cincinnati Bell Inc.'s Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 were formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations and Comprehensive Income (Loss), (iii) Condensed Consolidated Statements of Equity (Deficit), (iv) Condensed Consolidated Statements of Cash Flows, and (v) Notes to Condensed Consolidated Financial Statements. |
| 104 | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101). | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101). | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101). | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101). | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101). | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101). |

---

The Company's reports on Form 10-K, 10-Q, 8-K and other information are available free of charge at the following website: http://www.altafiber.com. The Company has ceased to be a registrant but continues to voluntarily file annual, quarterly and certain other information with the SEC due to contractual provisions included in certain indentures.

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**<u>SIGNA</u><u>TURES</u>**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  |  | Cincinnati Bell Inc. |
| Date: | August 13, 2025 | /s/ Joshua T. Duckworth |
|  |  | Joshua T. Duckworth |
|  |  | Chief Financial Officer |
| Date: | August 13, 2025 | /s/ Suzanne E. Maratta |
|  |  | Suzanne E. Maratta |
|  |  | Chief Accounting Officer |

---

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## Exhibit 10.1

**Exhibit 10.1** 

**AMENDED AND RESTATED EMPLOYMENT AGREEMENT**

This Amended and Restated Employment Agreement ("<u>Agreement</u>") is made as of the Effective Date between Cincinnati Bell Inc. ("<u>Employer</u>") and Gregory M. Wheeler ("Employee"). For purposes of this Agreement, the "Effective Date" means February 23, 2023.

Employer and Employee agree as follows:

1. <u>Employment</u>. By this Agreement, Employer and Employee set forth the terms of Employer's employment of Employee on and after the Effective Date. Any prior agreements or understandings with respect to Employee's employment by Employer are canceled as of the Effective Date.

2. <u>Term of Agreement</u>. The term of this Agreement initially shall be the one-year period commencing on the Effective Date. On the first anniversary of the Effective Date and on each subsequent anniversary of the Effective Date, the term of this Agreement automatically shall be extended for a period of one additional year. Notwithstanding the foregoing, the term of this Agreement is subject to termination as provided in Section 13.

3. <u>Duties</u>.

A. Employee will serve as President, Business Markets or in such other equivalent capacity as may be designated by Employer's President and Chief Executive Officer. Employee will report to the Employer's President and Chief Executive Officer.

B. Employee shall furnish such managerial, executive, financial, technical and other skills, advice, and assistance in operating Employer and its Affiliates as Employer may reasonably request. For purposes of this Agreement, "Affiliate" means each corporation or organization that is deemed to be a single employer with Employer under Section 414(b) or (c) of the Internal Revenue Code of 1986, as amended (the "<u>Code</u>") (<u>i.e.</u>, as part of a controlled group of corporations that includes Employer or under common control with Employer).

C. Employee shall also perform such other duties, consistent with the provisions of Section 3.A., as are reasonably assigned to Employee by the Employer's President and Chief Executive Officer.

D. Employee shall devote Employee's entire time, attention and energies to the business of Employer and its Affiliates. The words "entire time, attention and energies" are intended to mean that Employee shall devote Employee's full effort during reasonable working hours to the business of Employer and its Affiliates and shall devote at least 40 hours per week to the business of Employer and its Affiliates. Employee shall travel to such places as are necessary in the performance of Employee's duties.

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**Exhibit 10.1** 

4. <u>Compensation</u>.

A. Employee shall receive a base salary (the "<u>Base Salary</u>") of at least $$395,000 per year, payable not less frequently than monthly, for each year during the term of this Agreement, subject to proration for any partial year. Such Base Salary, and all other amounts payable under this Agreement, shall be subject to withholding as required by law.

B. In addition to the Base Salary, Employee shall be eligible to receive an annual incentive (the "<u>Incentive</u>") for each calendar year for which services are performed under this Agreement. Any Incentive for a calendar year shall be payable in the calendar year following the calendar year for which the Incentive is earned in accordance with Employer's regular incentive payment policies. Each year, Employee shall be given an Incentive target of not less than 100% of Base Salary, subject to proration for a partial year. The Incentive target shall be established from time to time by Employer's Compensation Committee if Employee is a Senior Management Officer (as defined in the Delegated Authority Schedule of Red Fiber Holdings LLC and its subsidiaries) or is otherwise a Senior Management Officer whose compensation is determined by the Compensation Committee, or, if Employee is not so subject, then in accordance with the provisions of Employer's then existing annual incentive plan or any similar plan made available to employees of Employer ("annual incentive plan") in which Employee participates. Any Incentive award granted to Employee shall further be subject to the terms and conditions of any such applicable annual incentive plan.

C. On at least an annual basis, Employee shall receive a formal performance review and be considered for Base Salary and/or Incentive target increases.

5. <u>Expenses</u>. All reasonable and necessary expenses incurred by Employee in the course of the performance of Employee's duties to Employer shall be reimbursable in accordance with Employer's then current travel and expense policies.

6. <u>Benefits</u>.

A. While Employee remains in the employ of Employer, Employee shall be eligible to participate in all of the various employee benefit plans and programs, which are made available to similarly situated officers of Employer, in accordance with the eligibility provisions and other terms and conditions of such plans and programs.

B. Notwithstanding anything contained herein to the contrary, the Base Salary and any Incentives otherwise payable to Employee shall be reduced by any benefits paid to Employee by Employer under any disability plans made available to Employee by Employer ("<u>Disability Plans</u>").

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**Exhibit 10.1** 

7. <u>Confidentiality</u>. Employer and its Affiliates are engaged in the telecommunications industry within the U.S. Employee acknowledges that in the course of employment with the Employer (including prior to the Effective Date), Employee has been and will be entrusted with or obtain access to information proprietary to Employer and its Affiliates with respect to the following (all of which information is referred to hereinafter collectively as the "Information"); the organization and management of Employer and its Affiliates; the names, addresses, buying habits and other special information regarding past, present and potential customers, employees and suppliers of Employer and its Affiliates; customer and supplier contracts and transactions or price lists of Employer, its Affiliates and their suppliers; products, services, programs and processes sold, licensed or developed by Employer or its Affiliates; technical data, plans and specifications, and present and/or future development projects of Employer and its Affiliates; financial and/or marketing data respecting the conduct of the present or future phases of business of Employer and its Affiliates; computer programs, systems and/or software; ideas, inventions, trademarks, trade secrets, business information, know-how, processes, improvements, designs, redesigns, discoveries and developments of Employer and its Affiliates; and other information considered confidential by any of the Employer, its Affiliates or customers or suppliers of Employer and its Affiliates. At all times during the term of this Agreement and thereafter, Employee agrees to retain the Information in absolute confidence and not to disclose the Information to any person or organization except as required in the performance of Employee's duties for Employer, without the express written consent of Employer; provided that Employee's obligation of confidentiality shall not extend to any Information which becomes generally available to the public other than as a result of disclosure by Employee.

8. <u>New Developments</u>. All ideas, inventions, discoveries, concepts, trade secrets, trademarks, service marks or other developments or improvements, whether patentable or not, conceived by Employee, alone or with others, at any time during the term of Employee's employment (including prior to the Effective Date), whether or not during working hours or on Employer's premises, which are within the scope of or related to the business operations of Employer or its Affiliates ("New Developments"), shall be and remain the exclusive property of Employer. Employee agrees that any New Developments which, within one year after the termination of employment with Employer, are made, disclosed, reduced to a tangible or written form or description or are reduced to practice by Employee and which are based upon, utilize or incorporate Information shall, as between Employee and Employer, be presumed to have been made during Employee's employment by Employer. Employee further agrees that Employee will not, during the term of Employee's employment with Employer, improperly use or disclose any proprietary information or trade secrets of any former employer or other person or entity and that Employee will not bring onto Employer premises any unpublished document or proprietary information belonging to any such employer, person or entity unless consented to in writing by such employer, person or entity.

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**Exhibit 10.1** 

At all times during the term of this Agreement and thereafter, Employee shall do all things reasonably necessary to ensure ownership of such New Developments by Employer, including the execution of documents assigning and transferring to Employer all of Employee's rights, title and interest in and to such New Developments and the execution of all documents required to enable Employer to file and obtain patents, trademarks, service marks and copyrights in the United States and foreign countries on any of such New Developments.

9. <u>Surrender of Material Upon Termination</u>. Employee hereby agrees that upon termination of Employee's employment, for whatever reason and whether voluntary or involuntary, Employee will immediately surrender to Employer all of the property and other things of value in his possession or in the possession of any person or entity under Employee's control that are the property of Employer or any of its Affiliates, including without any limitation all personal notes, drawings, manuals, documents, photographs or the like, including copies and derivatives thereof, and e-mails and other electronic and digital information of all types regardless of where or the type of device on which such materials may be stored by Employee, relating directly or indirectly to any Information, materials or New Developments, or relating directly or indirectly to the business of Employer or any of its Affiliates.

10. <u>Remedies.</u>

A. Employer and Employee hereby acknowledge and agree that the services rendered by Employee to Employer, the information disclosed to Employee during and by virtue of Employee's employment (including prior to the Effective Date) and Employee's commitments and obligations to Employer and its Affiliates herein are of a special, unique and extraordinary character, and that the breach of any provision of this Agreement by Employee will cause Employer irreparable injury and damage, and consequently the Employer shall be entitled to, in addition to all other remedies available to it, injunctive and equitable relief to prevent a breach of Sections 7, 8, 9, 11 and 12 of this Agreement and to secure the enforcement of this Agreement.

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**Exhibit 10.1** 

B. Except as provided in Section 10.A.*,* the parties hereto agree to submit to final and binding arbitration any dispute, claim or controversy, whether for breach of this Agreement or for violation of any of Employee's statutorily created or protected rights, arising between the parties that either party would have been otherwise entitled to file or pursue in court or before any administrative agency (herein "<u>claim</u>"), and each party waives all right to sue the other party.

(i) This agreement to arbitrate and any resulting arbitration award are enforceable under and subject to the Federal Arbitration Act, 9 U.S.C. § 1 et seq. ("<u>FAA</u>"). If the FAA is held not to apply for any reason, then Ohio Revised Code Chapter 271l regarding the enforceability of arbitration agreements and awards will govern this Agreement and the arbitration award.

(ii) (a) All of a party's claims must be presented at a single arbitration hearing. Any claim not raised at the arbitration hearing is waived and released. The arbitration hearing will take place in Cincinnati, Ohio.

(b) The arbitration process will be governed by the Employment Dispute Resolution Rules of the American Arbitration Association ("<u>AAA</u>") except to the extent they are modified by this Agreement. In the event that any provisions of this Section 10.B. are determined by AAA to be unenforceable or impermissibly contrary to AAA rules, then this Section 10.B. shall be modified as necessary to comply with AAA requirements.

(c) Employee has had an opportunity to review the AAA rules and the requirements that Employee must pay a filing fee for which Employer has agreed to split on an equal basis.

(d) The arbitrator will be selected from a panel of arbitrators chosen by the AAA. After the filing of a Request for Arbitration, the AAA will send simultaneously to Employer and Employee an identical list of names of five persons chosen from the panel. Each party will have 10 days from the transmittal date in which to strike up to two names, number the remaining names in order of preference and return the list to the AAA.

(e) Any pre-hearing disputes will be presented to the arbitrator for expeditious, final and binding resolution.

(f) The award of the arbitrator will be in writing and will set forth each issue considered and the arbitrator's finding of fact and conclusions of law as to each such issue.

(g) If the arbitrator finds that a party has sustained its burden of proof in establishing a violation of applicable law, the arbitrator shall have the same power and authority as would a judge to grant any relief, including costs and attorney's fees, that a court could grant, consistent with applicable principles of common, decisional, and statutory law in the relevant jurisdiction. The arbitrator may assess to either party, or split, the arbitrator's fee and expenses and the cost of the transcript, if any, in accordance with the arbitrator's determination of the merits of each party's position or as principles of equity may require.

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**Exhibit 10.1** 

(h) Employer and Employee recognize that a primary benefit each derives from arbitration is avoiding the delay and costs normally associated with litigation. Therefore, neither party will be entitled to conduct any discovery prior to the arbitration hearing except that: (i) Employer will furnish Employee with copies of all non-privileged documents in Employee's personnel file; (ii) if the claim is for discharge, Employee will furnish Employer with records of earnings and benefits relating to Employee's subsequent employment (including self-employment) and all documents relating to Employee's efforts to obtain subsequent employment; (iii) the parties will exchange copies of all documents they intend to introduce as evidence at the arbitration hearing at least 10 days prior to such hearing; (iv) Employee will be allowed (at Employee's expense) to take the depositions, for a period not to exceed four hours each, of two representatives of Employer, and Employer will be allowed (at its expense) to depose Employee for a period not to exceed four hours; and (v) Employer or Employee may ask the arbitrator to grant additional discovery to the extent permitted by AAA rules upon a showing that such discovery is necessary.

(i) Nothing herein will prevent either party from taking the deposition of any witness where the sole purpose for taking the deposition is to use the deposition in lieu of the witness testifying at the hearing and the witness is, in good faith, unavailable to testify in person at the hearing due to poor health, residency and employment more than 50 miles from the hearing site, conflicting travel plans or other comparable reason.

(j) Arbitration must be requested in writing no later than 6 months from the date that the party knew or should have known of the matter disputed by the claim. A party's failure to initiate arbitration within the time limits herein will be considered a waiver and release by that party with respect to any claim subject to arbitration under this Agreement.

(k) Employer and Employee consent that judgment upon the arbitration award may be entered in any federal or state court that has jurisdiction.

(1) Except as provided in Section 10.A., neither party will commence or pursue any litigation on any claim that is or was subject to arbitration under this Agreement. Nothing in this Agreement shall be construed to prevent Employee from filing or participating in a charge of discrimination filed with the EEOC or similar state or local administrative agencies. However, upon receipt of a right to sue letter or similar administrative determination, Employee's claim becomes subject to arbitration as set forth in this this Agreement.

(m) All aspects of any arbitration procedure under this Agreement, including the hearing and the record of the proceedings, are confidential and will not be open to the public, except to the extent the parties agree otherwise in writing, or as may be appropriate in any subsequent proceedings between the parties, or as may otherwise be appropriate in response to a governmental agency or legal process or as may be required to be disclosed by Employer pursuant to applicable law, rule or regulation to which Employer is subject, including requirements of the Securities and Exchange Commission and any stock exchanges on which Employer's securities are listed.

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**Exhibit 10.1** 

11. <u>Covenant Not to Compete, No Interference; No Solicitation</u>. For purposes of this Section 11 only, the term "Employer" shall mean, collectively, Employer and each of its Affiliates. At all times during the term of this Agreement and during the two-year period following the termination of Employee's employment with Employer for any reason (or if this period is unenforceable by law, then for such period as shall be enforceable), Employee will not engage in any business offering services related to the current business of Employer, whether as a principal, partner, joint venture, agent, employee, salesman, consultant, director or officer, where such position would involve Employee in any business activity in competition with Employer. This restriction will be limited to the geographical area where Employer is then engaged in such competing business activity or to such other geographical area as a court shall find reasonably necessary to protect the goodwill and business of Employer.

During the two-year period following termination of Employee's employment with Employer for any reason (or if this period is unenforceable by law, then for such period as shall be enforceable), Employee will not interfere with or adversely affect, either directly or indirectly, Employer's relationships with any person, firm, association, corporation or other entity which is known by Employee to be, or is included on any listing to which Employee had access during the course of employment, as a customer, client, supplier, consultant or employee of Employer and that Employee will not divert or change, or attempt to divert or change, any such relationship to the detriment of Employer or to the benefit of any other person, firm, association, corporation or other entity.

During the two-year period following the termination of Employee's employment with Employer for any reason (or if this period is unenforceable by law, then for such period as shall be enforceable), Employee shall not, without the prior written consent of Employer, accept employment, as an employee, consultant or otherwise, with any company or entity which is a supplier of Employer at any time during the one-year period prior to the termination of Employee's employment with Employer.

Employee will not, during or at any time within two years after the termination of Employee's employment with Employer, induce or seek to induce any other employee of Employer to terminate his or her employment relationship with Employer.

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**Exhibit 10.1** 

Employee acknowledges and agrees that the covenants, restrictions, agreements and obligations set forth herein are founded upon valuable consideration and, with respect to the covenants, restrictions, agreements and obligations set forth in this Section 11, are reasonable in duration and geographic scope. The time period and geographical area set forth in this Section 11 are each divisible and separable, and, in the event that the covenants not to compete and/or not to divert business or employees contained therein are judicially held invalid or unenforceable as to such time period and/or geographical area, they will be valid and enforceable in such geographical area(s) and for such time period(s) which the court determines to be reasonable and enforceable. Employee agrees that in the event that any court of competent jurisdiction determines that the above covenants are invalid or unenforceable to join with Employer in requesting such court to construe the applicable provision by limiting or reducing it so as to be enforceable to the extent compatible with the then applicable law. Furthermore, it is agreed that any period of restriction or covenant hereinabove stated shall not include any period of violation or period of time required for litigation or arbitration to enforce such restrictions or covenants.

12. <u>Goodwill</u>. Subject to the provisions of Section 10.B.(ii)(l) above, during the term of this Agreement and thereafter, Employee will not disparage Employer or any of its Affiliates in any way which could adversely affect the goodwill, reputation and business relationships of Employer or any of its Affiliates with the public generally, or with any of their customers, suppliers or employees, and Employer will not disparage Employee. Employee understands and agrees that Employer shall be entitled to make any such public disclosures as are required by applicable law, rule or regulation regarding Employee, including termination of Employee's employment with Employer, and that any public disclosures so made by Employer and other statements materially consistent with such public disclosures shall not be restricted in any manner by this Section 12.

13. <u>Termination</u>.

A. (i) To the extent permitted by law, Employer or Employee may terminate this Agreement (and Employee's employment hereunder) upon Employee's failure or inability to perform the services required hereunder, because of any physical or mental infirmity for which Employee receives disability benefits under any Disability Plans, over a period of one hundred twenty consecutive working days during any twelve consecutive month period (a "<u>Terminating Disability</u>").

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**Exhibit 10.1** 

(ii) If Employer or Employee elects to terminate this Agreement in the event of a Terminating Disability, such termination shall be effective immediately upon the giving of written notice by the terminating party to the other.

(iii) Upon termination of this Agreement on account of Terminating Disability, Employer shall pay Employee only Employee's any accrued but unpaid Base Salary to the date of termination, any accrued but unused vacation to the date of termination, any accrued and earned Incentive for the year prior to the year of the termination and any earned and vested benefits under any Employer benefit plan to the date of termination (the "<u>Accrued Compensation</u>") (subject to offset for any amounts received pursuant to the Disability Plans). In the event of a Terminating Disability, Employer also shall provide Employee with disability benefits and all other benefits according to the provisions of the applicable Disability Plans and any other Employer plans in which Employee is then participating.

(iv) If the parties elect not to terminate this Agreement upon an event of a Terminating Disability and Employee returns to active employment with Employer prior to such a termination, or if such disability exists for less than one hundred twenty consecutive working days, the provisions of this Agreement shall remain in full force and effect.

B. This Agreement (and Employee's employment hereunder) terminates immediately and automatically on the death of Employee, provided, however, that Employee's estate shall be paid only Employee's Accrued Compensation as of the date of death.

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**Exhibit 10.1** 

C. Employer may terminate this Agreement immediately, upon written notice to Employee, for Cause. For purposes of this Agreement, Employer shall have "Cause" to terminate this Agreement only if Employer's Board of Directors reasonably determines in good faith that any one or more of the following has occurred: (a) conviction of any crime (whether or not a felony) involving dishonesty, fraud, embezzlement, or similar crime of moral turpitude; (b) conviction of a felony (other than a traffic violation); (c) acts constituting fraud or willful misconduct as an employee of the Employer or its Affiliates, including but not limited to misappropriation or embezzlement in the performance of duties as an employee of the Employer or its Affiliates; (d) the willful and continued material failure or refusal of Employee to perform any of his or her duties to the Employer of its Affiliates (other than any such failure resulting from Employee's incapacity due to physical or mental illness) which is reasonably likely to result in material harm to the Employer of its Affiliates; (e) Employee's material violation or breach of the this Agreement, any restrictive covenants under this Agreement or any other restrictive covenant provision the Employee is bound by in any agreement between Employee and the Employer or its Affiliates (f) Employee's material violation or breach of the documented code of ethics, code of conduct or similar document of the Employer or its Affiliates which has been timely provided to, and acknowledged by, Employee; or (g) willfully or grossly negligently engaging in conduct materially injurious to the Employer or its Affiliates. Upon termination for Cause, Employee shall be entitled to receive only Employee's Accrued Compensation to the date of termination.

D. Employer may terminate this Agreement (and Employee's employment hereunder) immediately, upon written notice to Employee for any reason other than those set forth in Sections 13.A., B. and C. Notwithstanding the foregoing, Employer may not terminate this Agreement (and Employee's employment hereunder) under this Section 13.D within one year after the Effective Date (the "<u>Protected Period</u>"), provided that the Employer may place the Employee on garden leave during the Protected Period, reducing or eliminating his or her responsibilities during such Protected Period, and will be entitled to terminate the Employee pursuant to this Section 13.D upon expiration of the Protected Period. In addition, Employee may terminate this Agreement (and Employee's employment hereunder) immediately, upon written notice to Employer, as a result of a Constructive Termination. In the event of a termination of this Agreement (and Employee's employment hereunder) by Employer, or by Employee as a result of a Constructive Termination, under this Section 13.D., in addition to the Accrued Compensation:

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**Exhibit 10.1** 

(i) Employer shall pay Employee in a lump sum cash payment an amount equal to two times the Employee's annual Base Salary rate in effect at the time of the termination of this Agreement within sixty (60) days following Employee's termination of employment with Employer; and

(ii) subject to Employee timely and properly electing coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 ("<u>COBRA</u>"), Employer shall provide Employee access to continued medical, dental, and vision coverage for a period of up to eighteen (18) months beginning the first day of the calendar month following Executive's termination of employment and ending on the first to occur of the last day of the eighteenth (18<sup>th</sup>) month, the date Executive ceases to be eligible for COBRA or the date Executive, his spouse and eligible dependents become eligible to be covered under another employer's medical, dental and vision plans, whichever is sooner(with the cost of such coverage to Employee equal to the active employee rate for the coverage plus applicable tax withholdings on the difference between the full COBRA premium for the coverage and the active employee rate), provided that, if the Employer determines in its sole discretion that it cannot provide the foregoing subsidy of COBRA coverage without potentially violating or causing the Employer to incur additional expense as a result of noncompliance with applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Employer instead will pay Employee a taxable lump sum payment in an amount equal to the monthly COBRA premium (or an equivalent monthly payment in the event the Employee is no longer eligible for COBRA) that Employee would be required to pay to continue the group health coverage in effect on the date of Employee's termination of employment for eighteen (18) months for Employee and Employee's eligible dependents pursuant to the Employer's health insurance plans in which Employee or Employee's eligible dependents participated as of the day of Executive's termination (which amount shall be based on the premium for the first month of COBRA coverage).

E. Employee may resign upon 60 days' prior written notice to Employer. In the event of a resignation under this Section 13.E. this Agreement (and Employee's employment hereunder) shall terminate and Employee shall be entitled to receive only any Accrued Compensation. Should Employee resign, Employer may adjust Employee's authority, reporting relationship, or responsibilities at any time during the 60-day notice period and any such adjustment shall not constitute a Constructive Termination under this Agreement.

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**Exhibit 10.1** 

F. Upon termination of this Agreement (and Employee's employment hereunder) as a result of an event of termination described in this Section 13 and except for Employer's payment of the required payments under this Section 13 (including any Accrued Compensation), all further compensation under this Agreement shall terminate. Employee further agrees that in order to be entitled to receive any payments under this Section 13 (other than any Accrued Compensation), upon the request of Employer, Employee will execute and not revoke a release of claims against Employer in the Employer standard form, which release shall contain customary and appropriate terms and conditions as determined in good faith by Employer. Such release must be executed and non-revocable within 60 days of Employee's termination of employment provided, however, if such 60-day period commences in one calendar year and ends in the following calendar year, payment of a any amounts under this Section 13 (other than any Accrued Compensation) shall not commence until the first payroll date in the second calendar year. Employee's rights with respect to any award granted under the "2021 LTIP" (as defined below) or the "CBTS Sale Bonus Agreement" (as defined below) shall be determined pursuant to the terms of the applicable plan.

G. The termination of this Agreement (and Employee's employment hereunder) shall not amend, alter or modify the rights and obligations of the parties under Sections 7, 8, 9, 10, 11,12 and 13 hereof, the terms of which shall survive the termination of this Agreement for any reason whatsoever.

H. For purposes of this Section 13, "Constructive Termination" shall be deemed to have occurred if, without Employee's consent, there is a material reduction by Employer in Employee's authority, reporting relationship or responsibilities, there is a reduction by Employer in Employee's Base Salary or Incentive target or Employee is required by Employer to relocate from the Greater Cincinnati, Ohio Area by 50 or more miles. In no event will a Constructive Termination be deemed to occur under this Agreement unless (i) the Employee notifies the Employer in writing of the occurrence of any event that constitutes a Constructive Termination within sixty (60) days of the occurrence of such event, (ii) the Employer does not cure such circumstances within thirty (30) days of receipt of such notice and (iii) the Employee terminates his or her employment within thirty (30) days of such failure to cure.

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**Exhibit 10.1** 

I. Notwithstanding any other provision in this Agreement, in the event that it is determined (by the reasonable computation of an independent nationally recognized certified public accounting firm that shall be selected by Employer (the "<u>Accountant</u>")) that the aggregate amount of the payments, distributions, benefits and entitlements of any type payable by Employer or any affiliate to or for the benefit of Employee (including any payment, distribution, benefit or entitlement made by any person or entity effecting a Change in Control (as defined in the 2021 LTIP)), in each case, that could be considered "parachute payments" within the meaning of Section 280G of the Code (such payments, the "<u>Parachute Payments</u>") that, but for this Section 13.I. would be payable to Employee, exceeds the greatest amount of Parachute Payments that could be paid to Employee without giving rise to any liability for any excise tax imposed by Code Section 4999 (or any successor provision thereto) or any similar tax imposed by state or local law, or any interest or penalties with respect to such tax (such tax or taxes, together with any such interest or penalties, collectively referred to as the "<u>Excise Tax</u>"), then the aggregate amount of Parachute Payments payable to Employee shall not exceed the amount which produces the greatest after-tax benefit to Employee after taking into account any Excise Tax to be payable by Employee. For the avoidance of doubt, this provision shall reduce the amount of Parachute Payments otherwise payable to Employee, if doing so would place Employee in a more favorable net after-tax economic position as compared with not reducing the amount of Parachute Payments (taking into account the Excise Tax payable in respect of such Parachute Payments). Any reduction under this Section 280G shall be applied against the payment to be made under Section 13.D.(i).

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**Exhibit 10.1** 

14. <u>Code Section 409A</u>.

A. This Agreement is intended to comply with Code Section 409A or an exemption thereunder and shall be construed and administered in accordance with Code Section 409A. Notwithstanding any other provision of this Agreement, payments provided under this Agreement may only be made upon an event and in a manner that complies with Code Section 409A or an applicable exemption. Any payments under this Agreement that may be excluded from Code Section 409A as separation pay, as a short-term deferral, or under any other applicable exclusion shall be excluded from Code Section 409A to the maximum extent possible. For purposes of Code Section 409A, each installment payment provided under this Agreement shall be treated as a separate payment. Any payments to be made under this Agreement upon a termination of employment shall only be made upon a "separation from service" under Code Section 409A. To the extent any reimbursements or in-kind benefits due Employee under this Agreement constitutes "deferred compensation" under Section 409A of the Code, any such reimbursements or in-kind benefits shall be paid to Employee in a manner consistent with Treas. Reg. Section 1.409A-3(i)(1)(iv). Notwithstanding the foregoing, Employer makes no representations that the payments and benefits provided under this Agreement comply with, or are exempt from compliance from, Code Section 409A and in no event shall Employer be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by Employee on account of non-compliance with Code Section 409A.

B. Notwithstanding any other provision of this Agreement, if any payment or benefit provided to Employee in connection with his termination of employment is determined to constitute "nonqualified deferred compensation" within the meaning of Code Section 409A and Employee is determined to be a "specified employee" as defined in Code Section 409A(a)(2)(b)(i), then such payment or benefit shall not be paid until a date that is within five days following (and not before) the six-month anniversary of the date of Employee's termination of employment (the "<u>Specified Employee Payment Date</u>") to the extent required by Code Section 409A. The aggregate of any payments that would otherwise have been paid before the Specified Employee Payment Date shall be paid to Employee in a lump sum on the Specified Employee Payment Date and thereafter, any remaining payments shall be paid without delay in accordance with their original schedule.

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**Exhibit 10.1** 

15. <u>Assignment</u>. As this is an agreement for personal services involving a relation of confidence and a trust between Employer and Employee, all rights and duties of Employee arising under this Agreement, and the Agreement itself, are non-assignable by Employee.

16. <u>Notices</u>. Any notice required or permitted to be given under this Agreement shall be sufficient if in writing and if delivered personally or by certified mail to Employee at Employee's place of residence as then recorded on the books of Employer or to Employer at its principal office.

17. <u>Waiver</u>. No waiver or modification of this Agreement or the terms contained herein shall be valid unless in writing and signed by Employee and an authorized executive officer of Employer. The waiver by any party hereto of a breach of any provision of this Agreement by the other party shall not operate or be construed as a waiver of any subsequent breach by such party.

18. <u>Governing Law</u>. This agreement shall be governed by the laws of the State of Ohio and, to the extent applicable, federal law.

19. <u>Entire Agreement</u>. This Agreement contains the entire agreement of the parties respect to its subject matter and supersedes all prior discussions, agreements, commitments, or understandings of every kind and nature relating thereto, whether oral or written, between Employee and Employer. There are no other contracts, agreements or understandings, whether oral or written, existing between them except as contained or referred to in this Agreement other than awards to be granted under the Red Fiber Holdings, LLC Long-Term Incentive Plan ("<u>2021 LTIP</u>") or a Red Fiber Holdings, LLC Business Value Award Agreement ("<u>CBTS Sale Bonus Agreement</u>"). For the avoidance of doubt, nothing herein affects any of the parties' rights or obligations under the Merger Agreement or any agreements entered into in connection therewith. Employee acknowledges and agrees that Employee has not relied on any oral or written promises or representations other than those explicitly stated in this Agreement.

20. <u>Severability</u>. In case anyone or more of the provisions of this Agreement is held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or other enforceability shall not affect any other provisions hereof, and this Agreement shall be construed as if such invalid, illegal or unenforceable provisions have never been contained herein.

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**Exhibit 10.1** 

21. <u>Successors and Assigns</u>. Subject to the requirements of Paragraph 14 above, this Agreement shall be binding upon Employee, Employer and Employer's successors and assigns.

22. <u>Confidentiality of Agreement Terms</u>. The terms of this Agreement shall be held in strict confidence by Employee and shall not be disclosed by Employee to anyone other than Employee's spouse, Employee's legal counsel and Employee's other advisors, unless required by law. Further, except as provided in the preceding sentence, Employee shall not reveal the existence of this Agreement or discuss its terms with any person (including but not limited to any employee of Employer or its Affiliates) without the express authorization of the President of Employer, provided that Employee shall advise any prospective new employer of the existence of Employee's non-competition, confidentiality and similar obligations under this Agreement. To the extent that the terms of this Agreement have been disclosed by Employer, in a public filing or otherwise, the confidentiality requirements of this Section 22 shall no longer apply to such terms.

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**Exhibit 10.1** 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be effective as of the day and year first above written.

**CINCINNATI BELL INC. EMPLOYEE**

By: <u>/s/ Leigh R. Fox</u> <u>/s/ Gregory M Wheeler</u> 

Leigh R. Fox Gregory M. Wheeler

Title: <u>President and CEO</u> 

Date: <u>6/10/2023</u> Date: <u>3/28/2023</u> 

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## Exhibit 31.1

**Exhibit 31.1**

**Certifications**

I, Leigh R. Fox, Chief Executive Officer, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this quarterly report on Form 10-Q of Cincinnati Bell Inc;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure control and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

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| | | |
|:---|:---|:---|
| Date: | August 13, 2025 | /s/ Leigh R. Fox |
|  |  | Leigh R. Fox |
|  |  | Chief Executive Officer |

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## Exhibit 31.2

**Exhibit 31.2**

**Certifications**

I, Joshua T. Duckworth, Chief Financial Officer, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this quarterly report on Form 10-Q of Cincinnati Bell Inc;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure control and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

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| | | |
|:---|:---|:---|
| Date: | August 13, 2025 | /s/ Joshua T. Duckworth |
|  |  | Joshua T. Duckworth |
|  |  | Chief Financial Officer |

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