United States Cellular (USM) stock experienced a significant plummet of 5.62% during the pre-market trading session on Friday, February 21, 2025. The sharp decline in the company's share price was primarily driven by its disappointing fourth-quarter earnings results.

The Chicago-based wireless telecommunications provider reported a net income of $5 million, or $0.05 per diluted share, for the fourth quarter of 2024. This represents a substantial drop from the $14 million, or $0.16 per share, reported in the same period a year earlier. Additionally, the company's total operating revenue for the quarter fell by 3% year-over-year to $970 million, missing analysts' expectations of $960.3 million.

The weak financial performance can be attributed to several factors, including a decline in postpaid and prepaid subscriber additions, coupled with higher operating expenses. USM's wireless segment faced challenges in retaining customers, with postpaid net losses reaching 14,000 and prepaid net losses of 4,000 during the quarter. Furthermore, the company recorded a non-cash impairment charge of $136 million related to certain wireless spectrum licenses, further weighing on its profitability.