Lumen Technologies, Inc.LUMN
Lumen Technologies, Inc. Segments Disclosure
Note 16 — Segment Information
Our business is managed based on customer-facing sales channels to align with how we support our customers. Our chief operating decision maker ("CODM"), who is our CEO, makes decisions and assesses the performance of the Company reviewing two segments: Business and Mass Markets. Our reportable segments have not been aggregated.
Under our Business segment, we provide products and services to meet the needs of our enterprise and wholesale customers under five distinct sales channels — Large Enterprise, Mid-Market Enterprise, Public Sector, Wholesale and International and Other. For Business segment revenue, we report the following product categories: Grow, Nurture, Harvest and Other, in each case through the sales channels outlined above. The Business segment included the results of our EMEA business prior to the sale on November 1, 2023.
Under our Mass Markets segment, we provide products and services to residential and small business customers. We report the following product categories: Fiber Broadband, Other Broadband, and Voice and Other.
See detailed descriptions of these product and service categories in Note 4 — Revenue Recognition.
As described in more detail below, our segments are managed based on the direct costs of providing services to their customers and directly associated headcount and non-headcount operating expenses. Shared costs are managed separately and included in "other unallocated expense" in the table included below under the heading "— Revenue and Expenses." As referenced above, we reclassified certain prior period amounts to conform to the current period presentation. See Note 1 — Background and Summary of Significant Accounting Policies for additional detail on these changes. The CODM uses adjusted EBITDA as the key indicator in assessing performance and allocating resources for both the Business segment and Mass Markets segment.
The following tables summarize our segment results for 2025, 2024 and 2023 based on the segment categorization we were operating under as of December 31, 2025.
| Year Ended December 31, 2025 | |||||||||||
| Business | Mass Markets | ||||||||||
| (Dollars in millions) | |||||||||||
| Segment revenue | $ | 9,895 | 2,507 | ||||||||
| Segment expense | |||||||||||
| Cost of services and products | 2,786 | 49 | |||||||||
| Headcount costs | 1,172 | 573 | |||||||||
| Non-headcount costs | 1,414 | 489 | |||||||||
| Total expense | 5,372 | 1,111 | |||||||||
| Total segment adjusted EBITDA | $ | 4,523 | 1,396 | ||||||||
| Year Ended December 31, 2024 | |||||||||||
| Business | Mass Markets | ||||||||||
| (Dollars in millions) | |||||||||||
| Segment revenue | $ | 10,366 | 2,742 | ||||||||
| Segment expense | |||||||||||
| Cost of services and products | 3,062 | 69 | |||||||||
| Headcount costs | 1,258 | 636 | |||||||||
| Non-headcount costs | 1,429 | 541 | |||||||||
| Total expense | 5,749 | 1,246 | |||||||||
| Total segment adjusted EBITDA | $ | 4,617 | 1,496 | ||||||||
| Year Ended December 31, 2023 | |||||||||||
| Business | Mass Markets | ||||||||||
| (Dollars in millions) | |||||||||||
| Segment revenue | $ | 11,586 | 2,971 | ||||||||
| Segment expense | |||||||||||
| Cost of services and products | 3,247 | 79 | |||||||||
| Headcount costs | 1,489 | 744 | |||||||||
| Non-headcount costs | 1,593 | 592 | |||||||||
| Total expense | 6,329 | 1,415 | |||||||||
| Total segment adjusted EBITDA | $ | 5,257 | 1,556 | ||||||||
Revenue and Expenses
Our segment revenue includes all revenue from our two segments as described in more detail above. Our segment revenue is based upon each customer's classification. We report our segment revenue based upon all services provided to that segment's customers. Our segment expenses include (i) specific cost of service expenses incurred as a direct result of providing services and products to segment customers, (ii) headcount costs, which primarily includes salaries, commissions, and group insurance, and (iii) non-headcount costs, which primarily include legal and other professional fees, marketing and advertising expenses, other network-related expenses, and external commissions. We have not allocated assets or debt to specific segments.
The following items are excluded from our segment results, because they are centrally managed and not monitored by or reported to our chief operating decision maker by segment:
•network expenses not incurred as a direct result of providing services and products to segment customers and centrally managed expenses such as Finance, Human Resources, Legal, Marketing, Product Management, and IT, all of which are reported as "other unallocated expense" in the table below;
•depreciation and amortization expense;
•goodwill or other impairments;
•interest expense;
•stock-based compensation;
•other income and expense items; and
•income tax expense.
The following table reconciles total segment adjusted EBITDA to net loss for the years ended December 31, 2025, 2024 and 2023:
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (Dollars in millions) | |||||||||||||||||
| Total segment adjusted EBITDA | $ | 5,919 | 6,113 | 6,813 | |||||||||||||
| Depreciation and amortization | (2,749) | (2,956) | (2,985) | ||||||||||||||
| Goodwill impairment | (628) | — | (10,693) | ||||||||||||||
| Other unallocated expense | (3,306) | (2,668) | (2,667) | ||||||||||||||
| Stock-based compensation | (48) | (29) | (52) | ||||||||||||||
| Operating (loss) income | (812) | 460 | (9,584) | ||||||||||||||
| Total other expense, net | (1,904) | (690) | (653) | ||||||||||||||
| Loss before income taxes | (2,716) | (230) | (10,237) | ||||||||||||||
| Income tax (benefit) expense | (977) | (175) | 61 | ||||||||||||||
| Net loss | $ | (1,739) | (55) | (10,298) | |||||||||||||
We do not have any single customer that comprises more than 10% of our consolidated total operating revenue.
The assets we hold outside of the U.S. represent less than 10% of our total assets. Revenue from sources outside of the U.S. comprises less than 10% of our total operating revenue.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Mar 11, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Feb 23, 2017 | |
| 2015 | Feb 25, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.