# EDGAR Filing Document

**Accession Number:** 0000716133
**File Stem:** 0001193125-25-277296
**Filing Date:** 2025-11
**Character Count:** 159636
**Document Hash:** d3c5361c117cbcc93f00bda1320bfdfc
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-25-277296.hdr.sgml**: 20251112

**ACCESSION NUMBER**: 0001193125-25-277296

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 79

**CONFORMED PERIOD OF REPORT**: 20250930

**FILED AS OF DATE**: 20251112

**DATE AS OF CHANGE**: 20251112

**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:** 251472070

**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** **September 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 September 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) | 27 |
| Item 3. | [<u>Quantitative and Qualitative Disclosures about Market Risk</u>](#item_3___quantitative_qualitative_disclo) | 39 |
| Item 4. | [<u>Controls and Procedures</u>](#item_4___controls_procedures) | 39 |
|  | **<u>PART II. Other Information</u>** |  |
| Item 1. | [<u>Legal Proceedings</u>](#item_1___legal_proceedings) | 40 |
| Item 1A. | [<u>Risk Factors</u>](#item_1a___risk_factors) | 40 |
| Item 2. | [<u>Unregistered Sales of Equity Securities and Use of Proceeds</u>](#item_2___unregistered_sales_equity_secur) | 40 |
| Item 3. | [<u>Default upon Senior Securities</u>](#item_3___defaults_upon_senior_securities) | 40 |
| Item 4. | [<u>Mine Safety Disclosure</u>](#item_4___mine_safety_disclosure) | 40 |
| Item 5. | [<u>Other Information</u>](#item_5___or_information) | 40 |
| Item 6. | [<u>Exhibits</u>](#item_6___exhibits) | 41 |
|  | [<u>Signatures</u>](#signatures) | 42 |

---

------

Cincinnati Bell Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in millions)

(Unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>September 30,** | **Three Months Ended<br>September 30,** | **Nine Months Ended<br>September 30,** | **Nine Months Ended<br>September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| **Revenue** | $279.3 | $274.7 | $830.5 | $819.1 |
| **Costs and expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of services and products, excluding items below | 112.9 | 132.6 | 355.8 | 398.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative, excluding items below | 62.5 | 65.3 | 172.5 | 191.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 85.9 | 80.1 | 257.8 | 237.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring and severance related charges | 1.1 | 0.9 | 4.6 | 0.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transaction and integration costs | 1.0 |  | 1.8 | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment of assets |  | 3.1 |  | 3.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating costs and expenses | 263.4 | 282.0 | 792.5 | 831.4 |
| **Operating income (loss)** | 15.9 | (7.3) | 38.0 | (12.3) |
| Interest expense | 32.4 | 46.6 | 98.7 | 133.5 |
| Other components of pension and postretirement benefit plans benefit | (1.1) | (3.2) | (3.7) | (4.7) |
| Other (income) expense, net | (3.3) | 20.4 | (13.5) | (16.1) |
| Loss from continuing operations before income taxes | (12.1) | (71.1) | (43.5) | (125.0) |
| Income tax expense (benefit) | 4.1 | (1.0) | 5.2 | 30.2 |
| Loss from continuing operations | (16.2) | (70.1) | (48.7) | (155.2) |
| Income (loss) from discontinued operations (net of tax) |  | 8.7 | (13.9) | 18.6 |
| **Net loss** | $(16.2) | $(61.4) | $(62.6) | $(136.6) |

---

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>September 30,** | **Three Months Ended<br>September 30,** | **Nine Months Ended<br>September 30,** | **Nine Months Ended<br>September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Net loss | $(16.2) | $(61.4) | $(62.6) | $(136.6) |
| Other comprehensive income (loss), net of tax: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation gain (loss) |  | 1.3 |  | (2.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Defined benefit plans: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gain arising from remeasurement during the period, net of tax of $1.6, $2.2, $2.0, $1.3 | 4.9 | 6.7 | 6.1 | 3.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of prior service benefits included in loss from continuing operations, net of tax of ($0.1), ($0.1), ($0.2), ($0.2) | (0.1) | (0.1) | (0.4) | (0.4) |
| &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), ($0.2), ($0.9), ($0.7) | (1.0) | (0.8) | (2.9) | (2.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Settlement gains reclassified to loss from continuing operations, net of tax of ($0.5), ($0.6), ($0.9), ($0.7) | (1.5) | (2.2) | (2.9) | (2.5) |
| Total other comprehensive income (loss) | 2.3 | 4.9 | (0.1) | (3.6) |
| Total comprehensive loss | $(13.9) | $(56.5) | $(62.7) | $(140.2) |

---

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 June 30, 2025 | $2316.1 | $(526.5) | $32.6 | $1822.2 |
| Net loss |  | (16.2) |  | (16.2) |
| Other comprehensive income |  |  | 2.3 | 2.3 |
| Balance at September 30, 2025 | $2316.1 | $(542.7) | $34.9 | $1808.3 |
| Balance at June 30, 2024 | $2116.1 | $(426.0) | $19.7 | $1709.8 |
| Net loss |  | (61.4) |  | (61.4) |
| Other comprehensive income |  |  | 4.9 | 4.9 |
| Balance at September 30, 2024 | $2116.1 | $(487.4) | $24.6 | $1653.3 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **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 |  | (62.6) |  | (62.6) |
| Other comprehensive loss |  |  | (0.1) | (0.1) |
| Balance at September 30, 2025 | $2316.1 | $(542.7) | $34.9 | $1808.3 |
| Balance at December 31, 2023 | $2116.1 | $(350.8) | $28.2 | $1793.5 |
| Net loss |  | (136.6) |  | (136.6) |
| Other comprehensive loss |  |  | (3.6) | (3.6) |
| Balance at September 30, 2024 | $2116.1 | $(487.4) | $24.6 | $1653.3 |

---

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

------

Cincinnati Bell Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in millions)

(Unaudited)

---

| | | |
|:---|:---|:---|
|  | **September 30, 2025** | **December 31, 2024** |
| **Assets** |  |  |
| Current assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $151.9 | $460.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Receivables, less allowances of $16.0 and $15.0 | 89.3 | 96.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventory, materials and supplies | 82.2 | 82.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | 24.9 | 23.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current assets | 105.3 | 10.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 453.6 | 672.8 |
| Property, plant and equipment, net | 2809.1 | 2625.3 |
| Operating lease right-of-use assets | 82.0 | 77.4 |
| Goodwill | 566.7 | 566.7 |
| Intangible assets, net | 313.5 | 353.4 |
| Other noncurrent assets | 77.8 | 166.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $4302.7 | $4462.4 |
| **Liabilities and Shareowners' Equity** |  |  |
| Current liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion of long-term debt | $26.4 | $45.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 177.7 | 174.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unearned revenue and customer deposits | 49.2 | 50.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued taxes | 12.6 | 10.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued interest | 2.7 | 0.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued payroll and benefits | 34.9 | 36.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued restructuring | 0.6 | 40.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | 117.8 | 26.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 421.9 | 385.7 |
| Long-term debt, less current portion | 1684.3 | 1720.2 |
| Operating lease liabilities | 82.0 | 77.5 |
| Pension and postretirement benefit obligations | 100.4 | 111.3 |
| Pole license agreement obligation | 36.3 | 37.8 |
| Deferred income tax liabilities | 26.3 | 20.4 |
| Other noncurrent liabilities | 143.2 | 238.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 2494.4 | 2591.4 |
| Shareowners' equity |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 2316.1 | 2316.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit | (542.7) | (480.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income | 34.9 | 35.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total shareowners' equity | 1808.3 | 1871.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and shareowners' equity | $4302.7 | $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)

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended<br>September 30,** | **Nine Months Ended<br>September 30,** |
|  | **2025** | **2024\*** |
| **Cash flows from operating activities** |  |  |
| Net loss | $(62.6) | $(136.6) |
| Adjustments to reconcile net loss to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 257.8 | 243.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment of assets |  | 3.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for credit loss on receivables | 8.1 | 7.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized loss on interest rate swaps | 9.6 | 11.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Noncash portion of interest expense | 6.3 | 6.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 5.8 | 30.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pension and other postretirement payments in excess of expense | (11.7) | (11.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;Settlement adjustment on sale of discontinued operations | 14.5 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other, net | (2.4) | (5.3) |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in receivables | (1.0) | 102.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in inventory, materials, supplies, prepaid expenses and other current assets | (5.7) | 16.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Decrease in accounts payable | (4.4) | (58.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Decrease in accrued and other current liabilities | (45.7) | (8.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase in other noncurrent assets | (6.8) | (16.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Decrease) increase in other noncurrent liabilities | (3.9) | 1.5 |
| Net cash provided by operating activities | 157.9 | 185.7 |
| **Cash flows from investing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures | (399.9) | (417.0) |
| &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;Acquisition of fiber and cable assets |  | (1.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;Insurance proceeds received for damage to equipment | 0.6 | 3.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other, net | (0.3) | (0.3) |
| Net cash used in investing activities | (408.3) | (415.2) |
| **Cash flows from financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of long-term debt | 6.5 | 307.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net decrease in corporate credit facility with initial maturities less than 90 days |  | (32.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from borrowings on receivables facilities |  | 1085.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments on receivables facilities |  | (1101.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayment of debt | (64.7) | (23.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payment of debt issuance costs | (2.0) | (3.8) |
| Net cash (used in) provided by financing activities | (60.2) | 230.4 |
| Net (decrease) increase in cash, cash equivalents and restricted cash | (310.6) | 0.9 |
| Cash, cash equivalents and restricted cash at beginning of period | 465.8 | 12.5 |
| Cash, cash equivalents and restricted cash at end of period | $155.2 | $13.4 |
| Noncash investing and financing transactions: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of property by assuming debt and other noncurrent liabilities | $— | $3.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of property on account | $78.5 | $60.0 |

---

\*Cash flows information includes cash flows from discontinued operations, prior to the sale of the CBTS and OnX businesses on December 2, 2024, for the nine months ended September 30, 2024 and the final selling price adjustment for the nine months ended September 30, 2025

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 consists of 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 consists of 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 Securities Exchange Commission ("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 ("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.

**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 nine months ended September 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 September 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>** | **September 30, 2025** | **December 31, 2024** |
| Cash and cash equivalents | $151.9 | $460.7 |
| Restricted cash included in Other noncurrent assets | 3.3 | 5.1 |
| Cash, cash equivalents and restricted cash per Condensed Consolidated Statements of Cash Flows | $155.2 | $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 third quarter of 2025, the Company received insurance proceeds of $2.1 million for business interruption, and recorded the amount to "Cost of services and products" on the Condensed Consolidated Statements of Operations. 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) expense, 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.

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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.

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 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 September 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 $0.4 million and $3.5 million for the nine months ended September 30, 2025 and 2024, respectively. The Company has incurred life-to-date legal fees related to this matter of $13.8 million since August of 2023. The Company collected $3.6 million from their 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 September 30, 2025 for continuing operations was an expense of $4.1 million, despite a loss before income tax of $12.1 million. The tax expense reported is significantly lower than the $2.5 million benefit expected at statutory rates, due primarily to valuation allowances on net operating loss deferred tax assets.

Income tax expense was reported in the three months ended September 30, 2025 for continuing operations, despite a loss before income tax, whereas an income tax benefit was reported on a loss before income tax in the comparable period of 2024 for continuing operations. Valuation allowances recorded against net operating loss deferred tax assets had a significant impact on income tax expense recorded in both periods.

The income tax provision for the nine months ended September 30, 2025 for continuing operations was an expense of $5.2 million, despite a loss before income tax of $43.5 million. The tax expense reported is significantly lower than the $9.1 million benefit expected at statutory rates, due primarily to valuation allowances on net operating loss deferred tax assets.

In the nine months ended September 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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On July 4, 2025, the U.S. signed into law the One Big Beautiful Bill Act ("OBBBA"), which included various provisions specific to businesses. Of particular significance to the Company are the changes that OBBBA made to the limitation on the deductibility of interest expense. The Company is now able to deduct significantly more interest expense than it was prior to the enactment of OBBBA. A discrete tax adjustment of $2.5 million was recorded in the reporting period for the release of valuation allowances on deferred tax assets as a result of the impacts of OBBBA.

*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 and products. 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.

**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 to purchase the Disposal Group (Note 9), the Company aggregates its products and services delivered across all geographical markets into one reportable segment, the Network business, 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.

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**Recently Issued Accounting Standards**

*Accounting Standards Recently Adopted*

In November 2023, the FASB issued Accounting Standards Update ("ASU") No. 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.

In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software ("ASU 2025-06") which removes the prescriptive software development stages and replaces them with a probable-to-complete recognition threshold. The amendments in this update are effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period. The update may be applied using a prospective, modified or retrospective transition approach. The Company is currently evaluating the effects of ASU 2025-06 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 September 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 $213.5 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 beginning in 2026. 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>** |  |
| Three months ended December 31, 2025 | $4.9 |
| 2026 | 24.8 |
| 2027 | 43.6 |
| 2028 | 30.0 |
| 2029 | 10.3 |
| Thereafter | 99.9 |

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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 consisting of 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, which is 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 |
| Additions | 0.3 | 3.0 | 3.3 |
| Amortization | (0.4) | (2.0) | (2.4) |
| Balance as of September 30, 2025 | $4.9 | $26.9 | $31.8 |

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The Company recognizes a liability for cash received up-front for IRU contracts. At September 30, 2025 and December 31, 2024, $4.8 million and $4.3 million, respectively, of contract liabilities were included in "Other current liabilities." At September 30, 2025 and December 31, 2024, $89.6 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 September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| **<u>(dollars in millions)</u>** | **2025** | **2024** | **2025** | **2024** |
| Data | $160.8 | $146.8 | $476.4 | $431.6 |
| Video | 38.1 | 44.9 | 115.7 | 134.8 |
| Voice | 51.3 | 56.3 | 160.5 | 173.2 |
| Other | 29.1 | 26.7 | 77.9 | 79.5 |
| Total Revenue | $279.3 | $274.7 | $830.5 | $819.1 |

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**3. Goodwill and Intangible Assets**

**Goodwill**

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

**Intangible Assets**

The Company's intangible assets consisted of the following:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **September 30, 2025** | **September 30, 2025** | **September 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 | $(247.9) | $297.1 | $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 | (0.6) | 0.5 | 1.1 | (0.5) | 0.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 568.5 | (269.3) | 299.2 | 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 | $(269.3) | $313.5 | $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 $13.3 million and $40.0 million for the three and nine months ended September 30, 2025, respectively. Amortization expense for finite-lived intangible assets was $15.7 million and $48.1 million for the three and nine months ended September 30, 2024, respectively. No impairment losses were recognized on intangible assets for the three and nine months ended September 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>** |  |
| Three months ending December 31, 2025 | $13.4 |
| 2026 | 48.9 |
| 2027 | 44.4 |
| 2028 | 39.8 |
| 2029 | 35.2 |
| Thereafter | 117.5 |
| Total | $299.2 |

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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>** | **September 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 |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit Agreement - Term B-5 Loans | 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 | 10.1 | 9.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current portion of long-term debt | 26.4 | 45.6 |
| Long-term debt, less current portion: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit Agreement - Term B-1 Loans | 476.3 | 480.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit Agreement - Term B-3 Loans | 193.5 | 195.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit Agreement - Term B-4 Loans |  | 921.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit Agreement - Term B-5 Loans | 916.7 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Various Cincinnati Bell Telephone notes <sup>(1)</sup> | 86.1 | 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 | 35.4 | 37.7 |
|  | 1718.3 | 1759.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net unamortized discount | (4.9) | (5.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unamortized note issuance costs | (29.1) | (33.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term debt, less current portion | 1684.3 | 1720.2 |
| Total debt | $1710.7 | $1765.8 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)As of September 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 $4.5 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**

In September 2025, the Company entered into an amendment (the "Amendment No. 6") 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 senior secured term loans (the "Term B-5 Loans"). The proceeds of the Term B-5 Loans were used to refinance in full the outstanding aggregate principal amount of the Term B-4 Loans and to pay fees and expenses in connection with the refinancing of the Term B-4 Loans. The other material terms, conditions and covenants of the Credit Agreement were unchanged by Amendment No. 6.

The Company incurred deferred financing costs of $0.8 million related to the issuance of the Term B-5 Loans and capitalized the amount as a reduction to the outstanding debt balance in 2025. In addition, the Company incurred deferred financing costs of $0.6 million and $0.3 million related to Term B-1 Loans and Term B-3 Loans, respectively, related to the reduction in the interest rate margin and capitalized the amounts as a reduction to the outstanding debt balance in 2025.

The September 2025 amendment was accounted for as a modification of the Term Loans. Accordingly, no loss was recorded and new financing costs deferred are being amortized over the new and amended maturities of the term loan.

The Company had no outstanding borrowings on the Credit Agreement's revolving credit facility, leaving $400.0 million available for borrowings as of September 30, 2025. The revolving credit facility matures in August 2028, and the Term B-1 Loans, Term B-3 Loans and Term B-5 Loans under the Credit Agreement mature in November 2028.

**Accounts Receivable Securitization Facility**

As of September 30, 2025, the Company had no borrowings and $26.7 million of letters of credit outstanding under the Network Receivables Facility, leaving $32.2 million remaining availability on the total borrowing capacity of $58.9 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"), a 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.

In July 2025, the Company redeemed $6.3 million of the CBT Notes resulting in a gain on extinguishment of debt of $0.4 million.

**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.

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**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** | **September 30, 2025** | **December 31, 2024** |
| Operating lease assets, net of amortization | Operating lease right-of-use assets | $82.0 | $77.4 |
| Finance lease assets, net of amortization | Property, plant and equipment, net | 23.8 | 19.8 |
| Operating lease liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current operating lease liabilities | Other current liabilities | 7.0 | 6.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Noncurrent operating lease liabilities | Operating lease liabilities | 82.0 | 77.5 |
| Total operating lease liabilities |  | 89.0 | 83.9 |
| Finance lease liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current finance lease liabilities | Current portion of long-term debt | 10.1 | 9.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Noncurrent finance lease liabilities | Long-term debt, less current portion | 35.4 | 37.7 |
| Total finance lease liabilities |  | $45.5 | $47.6 |

---

.

Supplemental cash flow information related to leases is as follows:

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended September 30,** | **Nine Months Ended September 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 | $2.5 | $3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating cash flows from operating leases | $4.8 | $8.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financing cash flows from finance leases | $8.4 | $11.5 |
| Right-of-use assets obtained in exchange for lease obligations: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;New operating leases | $9.7 | $20.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;New finance leases | $6.5 | $8.3 |

---

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

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**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 third quarter of 2025, the Company entered into four forward starting non-amortizing interest rate swaps to convert variable rate debt to fixed rate debt. The interest rate swaps have notional amounts of $225.0 million, $150.0 million, $125.0 million and $100.0 million resulting in interest payments based on an average fixed rate per swap of 3.1475%, 3.1530%, 3.1570% and 3.1615%, respectively, plus the applicable margin per the requirements in the Credit Agreement. The interest rate swaps will commence in June 2026 and expire in July 2028.

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 expired 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) expense, 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 September 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** | **September 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 | $2.4 | $— | $2.4 | $— |
| Liabilities: |  |  |  |  |  |
| Interest Rate Swap | Other current liabilities | $0.3 | $— | $0.3 | $— |
| Interest Rate Swap | Other noncurrent liabilities | $1.0 | $— | $1.0 | $— |
| Interest Rate Cap | Other current liabilities | $0.2 | $— | $0.2 | $— |

---

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 nine months ended September 30, 2025 and 2024, in addition to the derivative contract type:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **Three Months Ended <br>September 30,** | **Three Months Ended <br>September 30,** | **Nine Months Ended <br>September 30,** | **Nine Months Ended <br>September 30,** |
| **<u>(dollars in millions)</u>** | **Statement of Operations Location** | **2025** | **2024** | **2025** | **2024** |
| Interest Rate Swap | Other (income) expense, net | $(0.9) | $14.9 | $1.8 | $(4.9) |
| Interest Rate Cap | Other (income) expense, net | $(0.1) | $5.6 | $— | $(1.9) |

---

**Disclosure on Financial Instruments**

The carrying values of the Company's financial instruments approximate the estimated fair values as of September 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:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **September 30, 2025** | **September 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\* | $1694.3 | $1696.9 | $1751.2 | $1755.5 |
| Other financing arrangements | 39.3 | 40.8 | 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 September 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 September 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.

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**7. Pension and Postretirement Plans**

As of September 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 third quarter of 2025, the Hawaiian Telcom defined benefit plan for union employees made lump sum payments of $4.6 million resulting in a reduction of the benefit obligation of $4.6 million. The Company recorded a pension settlement gain of $0.5 million in the third 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 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 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 third quarter of 2025, the Company purchased a group annuity contract to transfer a portion of its pension liability and related responsibility for benefit payments of certain in-pay participants and beneficiaries within our existing defined benefit plans. Additionally, the Greater Cincinnati defined benefit plan for management employees and for union employees made lump sum payments of $1.4 million and $3.9 million, respectively, resulting in a reduction of the benefit obligation of $1.4 million and $3.9 million, respectively. The Company recorded a pension settlement gain of $1.5 million in the third quarter of 2025 as a result of the annuity purchases and 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 for each of the pension plans.

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

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Pension and postretirement (benefits) costs are as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 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 | $0.1 |
| Other components of pension and postretirement benefit plans expense: |  |  |  |  |
| &nbsp;&nbsp;Interest cost on projected benefit obligation | 3.0 | 5.0 | 1.2 | 1.3 |
| &nbsp;&nbsp;Expected return on plan assets | (1.8) | (5.5) |  |  |
| &nbsp;&nbsp;Amortization of: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Prior service benefit |  |  | (0.2) | (0.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Actuarial gain | (0.1) |  | (1.2) | (1.0) |
| Pension settlement gain | (2.0) | (2.8) |  |  |
| Pension / postretirement (benefit) cost | $(0.9) | $(3.3) | $(0.1) | $0.2 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| **<u>(dollars in millions)</u>** | **Pension Benefits** | **Pension Benefits** | **Postretirement and Other Benefits** | **Postretirement and Other Benefits** |
| Service cost | $— | $— | $0.2 | $0.3 |
| Other components of pension and postretirement benefit plans expense: |  |  |  |  |
| &nbsp;&nbsp;Interest cost on projected benefit obligation | 10.6 | 15.1 | 3.7 | 3.8 |
| &nbsp;&nbsp;Expected return on plan assets | (9.6) | (16.8) |  |  |
| &nbsp;&nbsp;Amortization of: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Prior service benefit |  |  | (0.6) | (0.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;Actuarial gain | (0.2) | (0.1) | (3.6) | (2.9) |
| Pension settlement gain | (3.8) | (3.2) |  |  |
| Postretirement curtailment gain |  |  | (0.2) |  |
| Pension / postretirement (benefit) cost | $(3.0) | $(5.0) | $(0.5) | $0.6 |

---

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

For the nine months ended September 30, 2025, contributions to the qualified pension plans were $1.7 million, and contributions to the non-qualified pension plans were $1.8 million. For the nine months ended September 30, 2024, contributions to the qualified pension plans were $0.6 million and contributions to the non-qualified pension plans were $1.4 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 nine months ended September 30, 2025 and 2024, contributions to our postretirement plans were $4.7 million and $5.0 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:

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| | | | |
|:---|:---|:---|:---|
| **<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 June 30, 2025 | $32.6 | $— | $32.6 |
| Remeasurement of benefit obligations | 4.9 |  | 4.9 |
| Reclassifications, net | (2.6) (a) |  | (2.6) |
| Balance as of September 30, 2025 | $34.9 | $— | $34.9 |
| Balance as of June 30, 2024 | $28.3 | $(8.6) | $19.7 |
| Remeasurement of benefit obligations | 6.7 |  | 6.7 |
| Reclassifications, net | (3.1) (a) |  | (3.1) |
| Foreign currency gain |  | 1.3 | 1.3 |
| Balance as of September 30, 2024 | $31.9 | $(7.3) | $24.6 |

---

---

| | | | |
|:---|:---|:---|:---|
| **<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 | 6.1 |  | 6.1 |
| Reclassifications, net | (6.2) (a) |  | (6.2) |
| Balance as of September 30, 2025 | $34.9 | $— | $34.9 |
| Balance as of December 31, 2023 | $33.2 | $(5.0) | $28.2 |
| Remeasurement of benefit obligations | 3.9 |  | 3.9 |
| Reclassifications, net | (5.2) (a) |  | (5.2) |
| Foreign currency loss |  | (2.3) | (2.3) |
| Balance as of September 30, 2024 | $31.9 | $(7.3) | $24.6 |

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&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 nine months ended September 30, 2024 reported as Income from discontinued operations (net of tax) on the Condensed Consolidated Statements of Operations are as follows:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended September 30, 2024** | **Nine Months Ended September 30, 2024** |
| **Revenue** | $184.6 | $545.6 |
| **Costs and expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of services and products, excluding items below | 124.4 | 370.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative, excluding items below | 37.9 | 122.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization |  | 5.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring and severance related charges | 0.5 | 2.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transaction costs | 9.4 | 19.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating costs and expenses | 172.2 | 521.5 |
| **Operating income** | 12.4 | 24.1 |
| Interest expense | 0.4 | 1.1 |
| Other expense (income), net | 0.4 | (0.9) |
| Income from discontinued operations before income taxes | 11.6 | 23.9 |
| Income tax expense | 2.9 | 5.3 |
| **Net income from discontinued operations** | $8.7 | $18.6 |

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

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| | | |
|:---|:---|:---|
|  | **Nine Months Ended <br>September 30,** | **Nine Months Ended <br>September 30,** |
|  | **2025** | **2024** |
| Depreciation and amortization | $— | $5.7 |
| Settlement adjustment on sale of discontinued operations | $(14.5) | $— |
| Capital expenditures | $— | $(14.6) |

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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:

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| | | | |
|:---|:---|:---|:---|
| **<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 |
| Charges | 1.1 |  | 1.1 |
| Payments | (3.7) |  | (3.7) |
| Balance as of September 30, 2025 | $0.6 | $— | $0.6 |

---

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 and $1.1 million recorded in the first and third quarters of 2025, respectively, are related to the 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:

---

| | | | |
|:---|:---|:---|:---|
| **<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 |
| Charges | 1.1 |  | 1.1 |
| Payments | (3.6) | (0.1) | (3.7) |
| Balance as of September 30, 2025 | $0.6 | $— | $0.6 |

---

------

**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:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| **<u>(dollars in millions)</u>** | **2025** | **2024** | **2025** | **2024** |
| **Revenue** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Network | $279.3 | $274.7 | $830.5 | $819.1 |
| Total revenue | $279.3 | $274.7 | $830.5 | $819.1 |
| **Operating income (loss)** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Network | $22.6 | $(3.3) | $56.5 | $4.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate | (6.7) | (4.0) | (18.5) | (17.0) |
| Total operating income (loss) | $15.9 | $(7.3) | $38.0 | $(12.3) |
| **Expenditures for long-lived assets\*** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Network | $110.5 | $115.8 | $390.9 | $403.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate | 3.1 |  | 9.0 |  |
| Total expenditures for long-lived assets | $113.6 | $115.8 | $399.9 | $403.8 |
| **Depreciation and amortization** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Network | $85.3 | $80.1 | $257.1 | $237.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate | 0.6 |  | 0.7 | 0.1 |
| Total depreciation and amortization | $85.9 | $80.1 | $257.8 | $237.8 |

---

\* Includes cost of acquisitions

------

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:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| **<u>(dollars in millions)</u>** | **2025** | **2024** | **2025** | **2024** |
| **Network Revenue** | $279.3 | $274.7 | $830.5 | $819.1 |
| Less: Significant and other segment expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Employee and related costs | 47.6 | 58.0 | 137.6 | 170.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Programming expense | 34.6 | 37.9 | 105.2 | 114.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Network expense | 6.2 | 7.6 | 19.6 | 25.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract services | 21.5 | 25.8 | 66.5 | 72.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other expenses | 60.4 | 67.7 | 183.4 | 192.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 85.3 | 80.1 | 257.1 | 237.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring and severance related charges | 1.1 | 0.9 | 4.6 | 0.8 |
| **Network operating costs and expenses** | 256.7 | 278.0 | 774.0 | 814.4 |
| **Network operating income (loss)** | $22.6 | $(3.3) | $56.5 | $4.7 |

---

------

**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 September 30, 2025 and the results of operations for the three and nine months ended September 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 consists of 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 consists of 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 IWG Holdings, LLC ("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 includes 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 82% of the Cincinnati ILEC operating territory and speeds up to one gigabit or more per second to nearly 67% 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.

------

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| **<u>(dollars in millions)</u>** | **2025** | **2024** | **Change** | **% Change** | **2025** | **2024** | **Change** | **% Change** |
| Revenue: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Data | $160.8 | $146.8 | $14.0 | 10% | $476.4 | $431.6 | $44.8 | 10% |
| &nbsp;&nbsp;&nbsp;&nbsp;Video | 38.1 | 44.9 | (6.8) | (15)% | 115.7 | 134.8 | (19.1) | (14)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Voice | 51.3 | 56.3 | (5.0) | (9)% | 160.5 | 173.2 | (12.7) | (7)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 29.1 | 26.7 | 2.4 | 9% | 77.9 | 79.5 | (1.6) | (2)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Revenue | 279.3 | 274.7 | 4.6 | 2% | 830.5 | 819.1 | 11.4 | 1% |
| Operating costs and expenses: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of services and products | 112.9 | 132.6 | (19.7) | (15)% | 355.8 | 398.2 | (42.4) | (11)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative | 57.4 | 61.3 | (3.9) | (6)% | 156.5 | 174.6 | (18.1) | (10)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 85.3 | 80.1 | 5.2 | 6% | 257.1 | 237.7 | 19.4 | 8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring and severance related charges | 1.1 | 0.9 | 0.2 | 22% | 4.6 | 0.8 | 3.8 | n/m |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment of assets |  | 3.1 | (3.1) | n/m |  | 3.1 | (3.1) | n/m |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating costs and expenses | 256.7 | 278.0 | (21.3) | (8)% | 774.0 | 814.4 | (40.4) | (5)% |
| Network operating income (loss) | $22.6 | $(3.3) | $25.9 | n/m | $56.5 | $4.7 | $51.8 | n/m |
| Network operating margin | 8.1% | (1.2)% |  |  | 6.8% | 0.6% |  |  |
| Capital expenditures | $110.5 | $115.3 | $(4.8) | (4)% | $390.9 | $402.4 | $(11.5) | (3)% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
| **<u>Metrics information (in thousands):</u>** | **2025** | **2024** | **Change** | **% Change** |
| ***Greater Cincinnati*** |  |  |  |  |
| **Strategic** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Internet\* | 385.8 | 358.6 | 27.2 | 8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Video | 105.6 | 117.0 | (11.4) | (10)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Enterprise Fiber - Ethernet Bandwidth | 17381 | 15370 | 2011 | 13% |
| &nbsp;&nbsp;&nbsp;&nbsp;Units passed FTTP\*\* | 952.9 | 814.8 | 138.1 | 17% |
| **Legacy** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Internet\*\*\* | 11.4 | 25.1 | (13.7) | (55)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Voice Lines | 175.8 | 201.8 | (26.0) | (13)% |

---

\* Internet speeds of 100mbps or more

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

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

------

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
| **<u>Metrics information (in thousands):</u>** | **2025** | **2024** | **Change** | **% Change** |
| ***Hawaii*** |  |  |  |  |
| **Strategic** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Internet\* | 122.5 | 100.4 | 22.1 | 22% |
| &nbsp;&nbsp;&nbsp;&nbsp;Video | 36.8 | 33.9 | 2.9 | 9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Enterprise Fiber - Ethernet Bandwidth | 10271 | 8004 | 2267 | 28% |
| &nbsp;&nbsp;&nbsp;&nbsp;Units passed FTTP\*\* | 452.4 | 384.0 | 68.4 | 18% |
| **Legacy** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Internet\*\*\* | 17.7 | 25.5 | (7.8) | (31)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Voice Lines\*\*\*\* | 142.6 | 157.6 | (15.0) | (10)% |

---

\* 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 September 30, 2024 has also been updated to reflect the change in definition and reporting method.

------

**Revenue**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 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 | $83.1 | $21.7 | $104.8 | $70.7 | $16.8 | $87.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Enterprise Fiber | 25.0 | 15.1 | 40.1 | 24.6 | 14.0 | 38.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Video | 31.2 | 6.9 | 38.1 | 37.8 | 7.1 | 44.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Strategic | 139.3 | 43.7 | 183.0 | 133.1 | 37.9 | 171.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Legacy |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Voice | 30.0 | 21.3 | 51.3 | 33.5 | 22.8 | 56.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Internet | 2.7 | 2.6 | 5.3 | 5.2 | 3.6 | 8.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Data | 6.5 | 4.1 | 10.6 | 7.0 | 4.9 | 11.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Legacy | 39.2 | 28.0 | 67.2 | 45.7 | 31.3 | 77.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 14.5 | 14.6 | 29.1 | 11.6 | 15.1 | 26.7 |
| Total Network revenue | $193.0 | $86.3 | $279.3 | $190.4 | $84.3 | $274.7 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 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 | $243.6 | $61.5 | $305.1 | $203.9 | $46.8 | $250.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Enterprise Fiber | 74.8 | 44.5 | 119.3 | 72.4 | 41.5 | 113.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Video | 94.8 | 20.9 | 115.7 | 113.4 | 21.4 | 134.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Strategic | 413.2 | 126.9 | 540.1 | 389.7 | 109.7 | 499.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Legacy |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Voice | 94.9 | 65.6 | 160.5 | 103.3 | 69.9 | 173.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Internet | 9.4 | 8.9 | 18.3 | 18.1 | 11.5 | 29.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Data | 20.6 | 13.1 | 33.7 | 21.7 | 15.7 | 37.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Legacy | 124.9 | 87.6 | 212.5 | 143.1 | 97.1 | 240.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 34.2 | 43.7 | 77.9 | 31.3 | 48.2 | 79.5 |
| Total Network revenue | $572.3 | $258.2 | $830.5 | $564.1 | $255.0 | $819.1 |

---

------

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

Revenue totaling $279.3 million and $830.5 million for the three and nine months ended September 30, 2025 increased $4.6 million and $11.4 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 nine months ended September 30, 2025 increased $12.0 million and $40.7 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 19,300 Strategic Internet subscribers in Greater Cincinnati and 17,000 Strategic Internet subscribers in Hawaii in the nine months ended September 30, 2025. In Greater Cincinnati, we passed 18,700 and 54,200 addresses in the three and nine months ended September 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 17,300 and 51,600 addresses in the three and nine months ended September 30, 2025. The Average Revenue Per User ("ARPU") for the three and nine months ended September 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 nine months ended September 30, 2025 increased $1.5 million and $5.4 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 13% and 28% increases in Ethernet Bandwidth in Greater Cincinnati and Hawaii, respectively. In addition, revenue in Hawaii increased $1.1 million and $3.0 million, respectively, associated with an IRU contract related to the SEA-US cable system.

*<u>Legacy</u>*

Legacy revenue for the three and nine months ended September 30, 2025 decreased $9.8 million and $27.7 million, respectively, compared to the same periods in 2024 due to the decline in voice lines and internet subscribers. Voice lines declined 13% and 10% 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 nine months ended September 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 months ended September 30, 2025 increased $2.4 million compared to the same period in the prior year primarily due to incremental nonrecurring revenue generated in Hawaii .

Other revenue for the nine months ended September 30, 2025 decreased $1.6 million compared to the same period in the prior year primarily due to decreased revenue from subsidized fiber build projects in 2025, partially offset by trends impacting the quarter.

**Operating Costs and Expenses**

Cost of services and products decreased $19.7 million for the three months ended September 30, 2025 compared to the same period in the prior year due to decreases in payroll related costs of $5.9 million due to headcount reductions executed in the prior year, video content costs of $3.3 million, and network related expenses of $1.4 million related to the decommissioning of certain copper assets as customers continue to migrate from copper-based services to fiber-based services. Additionally, the Company received $2.1 million of insurance proceeds related to a business interruption claim filed in a prior year related to loss of income in Lahaina that was recorded as benefit to expense in the three months ended September 30, 2025.

Cost of services and products decreased $42.4 million for the nine months ended September 30, 2025 compared to the same period in the prior year primarily due to decreases in payroll related costs of $19.1 million, video content costs of $9.6 million, $5.5 million of network related expenses related to similar trends that impacted the quarter and proceeds from business interruption claim of $2.1 million.

SG&A expenses decreased $3.9 million and $18.1 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in the prior year primarily due to decreased payroll related costs of $4.5 million and $13.5 million, respectively. 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.

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Depreciation and amortization expense increased $5.2 million and $19.4 million for the three and nine months ended September 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 $1.1 million and $4.6 million were recorded for the three and nine months ended September 30, 2025, respectively, related to a continuation of the 2024 Voluntary Severance Plan offered to certain employees.

In October 2025, the company commenced a strategic review of its Agile business. The evaluation of alternatives may include, among other options, continued operation with targeted restructuring initiatives designed to enhance profitability and cash flow, a sale of the business or specific assets, or a potential merger. Once this review is complete, there may be a risk of impairment or write-down of Agile's assets. At September 30, 2025, the carrying value of Agile is $82.0 million, including goodwill of $36.2 million.

**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 nine months ended September 30, 2025, we passed 18,700 and 54,200 FTTP addresses, respectively, in Greater Cincinnati. As of September 30, 2025, the Company is able to deliver internet speeds up to six gigabits or more to 952,900 residential and commercial addresses, or approximately 82% of the Cincinnati ILEC operating territory in Greater Cincinnati. Greater Cincinnati capital expenditures for the three months ended September 30, 2025 increased $6.8 million compared to the comparable period in the prior year due to network construction expenditures and real estate purchases as the Company continues its expansion efforts to adjacent markets.

Greater Cincinnati capital expenditures for nine months ended September 30, 2025 decreased $10.4 million compared to the comparable period in the prior year primarily due to network upgrades that were completed in 2024 that more than offset the increased construction expenditures and real estate purchases that impacted the quarter. Additionally, Agile capital expenditures for the nine months ended September 30, 2025 decreased by $9.1 million primarily related to tower build projects in 2024 that did not recur in 2025.

In Hawaii, we passed 17,300 and 51,600 FTTP addresses in the three and nine months ended September 30, 2025. Hawaii capital expenditures for the three and nine months ended September 30, 2025 decreased $11.6 million and $1.1 million, respectively, compared to the comparable periods in the prior year. Decreased capital expenditures in the three months ended September 30, 2025, compared to the prior year period, are primarily due to construction expenditures in third quarter of 2024 related to a specific IRU agreement to provide dedicated fiber routes as well as decreased real estate purchases. For the nine months ended September 30, 2025, the trends impacting the quarter were partially offset by equipment purchases for customer installations in the first quarter of 2025 and increased network construction expenditures. As of September 30, 2025, the Company is able to deliver internet speeds up to six gigabits or more to 452,400 residential and commercial addresses, or nearly 67% 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 $6.7 million and $18.5 million in the three and nine months ended September 30, 2025, respectively, compared to $4.0 million and $17.0 million in three and nine months ended September 30, 2024, respectively. Corporate costs increased in both comparable periods primarily due to increased expenses of $0.9 million and $4.1 million in the three and nine months ended September 30, 2025, respectively, related to an ongoing technology transformation project to replace certain of the Company's legacy financial systems. Depreciation expense increased $0.6 million in the three and nine months ended September 30, 2025, compared to the same periods in the prior year due to software assets related to the technology transformation project placed in service in the third quarter of 2025. Additionally, transaction and integration costs increased $1.0 million and $1.7 million in the three and nine months ended September 30, 2025 compared to the same periods in the prior year. These increased corporate costs in the nine months ended September 30, 2025 were partially offset by decreased expenses incurred related to the Disposal Group 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.

------

Interest expense decreased $14.2 million and $34.8 million, respectively, for the three and nine months ended September 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, neither of which were drawn during 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 decreased for the three and nine months ended September 30, 2025 compared to the same period in 2024 primarily due to settlement gains recorded in each of the first three quarters of 2025 related to lump sum payments funded by the Hawaii defined benefit plan for union employees as well as a settlement gain recorded in the third quarter of 2025 as a result of the Company purchasing a group annuity contract and transferring a portion of its pension liability and the related responsibility for benefit payments within existing defined benefit plans. The benefit was partially offset due to the remeasurement of the pension and postretirement projected benefit obligations that resulted in increased expense due to decreased benefit from expected return on plan assets.

Other income, net totaled $3.3 million and $13.5 million for the three and nine months ended September 30, 2025, respectively, primarily due to interest income of $1.8 million and $8.2 million in the three and nine months ended September 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 $1.8 million in the nine months ended September 30, 2025.

Other income, net totaled expense of $20.4 million and income of $16.1 million for the three and nine months ended September 30, 2024, respectively, primarily due to recording losses associated with the Company's interest rate swap agreements and interest rate cap agreements of $20.5 million in the three months ended September 30, 2024 and gains of $6.8 million in the nine months ended September 30, 2024. In addition, in the nine months ended September 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 $12.1 million for the three months ended September 30, 2025, resulting in a decrease in the loss of $59.0 million compared to the same period in 2024 due to operating income generated, in addition to lower interest expense compared to the same period in the prior year and losses recorded in the three months ended September 30, 2024 associated with the Company's interest rate swap agreements and interest rate cap agreements.

Loss from continuing operations before income taxes totaled $43.5 million for the nine months ended September 30, 2025, resulting in a decrease in the loss of $81.5 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 nine months ended September 30, 2025 compared to the same period in the prior year.

The income tax provision for the three months ended September 30, 2025 for continuing operations was an expense of $4.1 million, despite a loss before income tax of $12.1 million. The tax expense reported is significantly lower than the $2.5 million benefit expected at statutory rates, due primarily to valuation allowances on net operating loss deferred tax assets.

Income tax expense was reported in the three months ended September 30, 2025 for continuing operations, despite a loss before income tax, whereas an income tax benefit was reported on a loss before income tax in the comparable period of 2024 for continuing operations. Valuation allowances recorded against net operating loss deferred tax assets had a significant impact on income tax expense recorded in both periods.

The income tax provision for the nine months ended September 30, 2025 for continuing operations was an expense of $5.2 million, despite a loss before income tax of $43.5 million. The tax expense reported is significantly lower than the $9.1 million benefit expected at statutory rates, due primarily to valuation allowances on net operating loss deferred tax assets.

In the nine months ended September 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.

------

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

As of September 30, 2025, the Company had an accumulated deficit of $542.7 million and $1,710.7 million of outstanding indebtedness.

The Company's primary source of cash is generated by operations. The Company generated $157.9 million and $185.7 million of cash flows from operations during the nine months ended September 30, 2025 and 2024, respectively. As of September 30, 2025, the Company had $584.1 million of short-term liquidity, comprised of $151.9 million of cash and cash equivalents, $400.0 million of undrawn capacity on our Revolving Credit Facility due 2028 and $32.2 million available under the Network Receivables Facility.

As of September 30, 2025, the Company had no borrowings and $26.7 million of letters of credit outstanding under the Network Receivables Facility, leaving $32.2 million remaining availability on the total borrowing capacity of $58.9 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.

In September 2025, the Company entered into an amendment (the "Amendment No. 6") 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 senior secured term loans (the "Term B-5 Loans"). The proceeds of the Term B-5 Loans were used to refinance in full the outstanding aggregate principal amount of the Term B-4 Loans and to pay fees and expenses in connection with the refinancing of the Term B-4 Loans.

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 nine months ended September 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 September 30, 2025, the Company was in compliance with the Credit Agreement covenants and ratios.

------

**Cash Flows**

Cash provided by operating activities during the nine months ended September 30, 2025 totaled $157.9 million, a decrease of $27.8 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 $44.4 million in 2025 associated with initiatives executed in the fourth quarter of 2024 and first half of 2025, an increase of $31.5 million compared to payments of $12.9 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 $37.3 million, primarily due to no borrowings on the Network Receivables Facility or the Credit Agreement's revolving credit facility in 2025.

Cash used in investing activities during the nine months ended September 30, 2025 totaled $408.3 million, a decrease of $6.9 million compared to the same period in the prior year. This decrease is due to lower capital expenditures of $17.1 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 nine months ended September 30, 2025. The decrease was partially offset by $14.5 million of proceeds previously received from the sale of CBTS in 2024 that were remitted back to TowerBrook in the second quarter of 2025 related to post-closing adjustments, pursuant to the Purchase Agreement.

Cash used in financing activities during the nine months ended September 30, 2025 totaled $60.2 million primarily due to the extinguishment of the Company's existing Paniolo financing arrangement of $21.4 million, repayment of $18.9 million to resolve a temporary bank overdraft resulting from a miscommunication on payroll dates and related funding requirements, repayment of $6.3 million of outstanding principal amounts of the Company's CBT Notes in the third quarter of 2025, and required payments on the Company's Term Loans due 2028 of $9.9 million.

Cash provided by financing activities during the nine months ended September 30, 2024 totaled $230.4 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 $32.5 million and $16.6 million, respectively and required payments totaling $11.7 million on the Term B-1, B-2 and B-3 Loans.

------

**<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 nine months ended September 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 nine months ended September 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 third quarter of 2025 and have concluded that, other than the changes described below, there were no other changes to Cincinnati Bell Inc.'s internal control over financial reporting during the third quarter of 2025 that materially affect, or are reasonably likely to materially affect, Cincinnati Bell Inc.'s internal control over financial reporting.

In connection with the evaluation described above, the Company is in the midst of a broad, multi-year, technology transformation project to modernize mainframe, middleware and legacy systems to achieve better process efficiencies across sourcing, project management, and accounting through the use of various solutions. Implementation of new accounting ERP modules for general ledger, project management, accounts payable, procurement and fixed asset management were implemented at the beginning of the third quarter of 2025 for Hawaii operations and consolidated reporting. Additional phases will continue to be implemented over the next twelve months. Emphasis has been on the maintenance of effective internal controls and assessment of the design and operating effectiveness of key control activities throughout development and deployment of each phase.

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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 nine months ended September 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**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | <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>](https://www.sec.gov/Archives/edgar/data/716133/000095015725000796/ex10-1.htm) | Amendment No. 6 to Credit Agreement dated as of September 17, 2025 by and among Red Fiber Parent LLC, Cincinnati Bell Inc, each of the Guarantors party hereto, Goldman Sachs Bank USA, as administrative agent for the Lenders, the Amendment No. 6 Lead Arranger, the Term B-1 Lender, the Term B-3 Lender and the Term B-5 Lenders party hereto. | 8-K<br>| 9/18/2025 | 10.1 | 1-8519<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 September 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 September 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 September 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 September 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 September 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 September 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.

------

**<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.

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| | | |
|:---|:---|:---|
|  |  | Cincinnati Bell Inc. |
| Date: | November 12, 2025 | /s/ Joshua T. Duckworth |
|  |  | Joshua T. Duckworth |
|  |  | Chief Financial Officer |
| Date: | November 12, 2025 | /s/ Suzanne E. Maratta |
|  |  | Suzanne E. Maratta |
|  |  | Chief Accounting Officer |

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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.

---

| | | |
|:---|:---|:---|
| Date: | November 12, 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: | November 12, 2025 | /s/ Joshua T. Duckworth |
|  |  | Joshua T. Duckworth |
|  |  | Chief Financial Officer |

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