TRAVERSE CITY, Mich., Sept. 03, 2025 (GLOBE NEWSWIRE) -- MachTen, Inc. (OTC: MACT) today announced financial results for the second quarter and six months ended June 30, 2025.
"We continue to execute our fiber-based investment plan, while improving the operational foundation for sustained growth," said Dan Miller, Chief Executive Officer. "Our team remains focused on establishing the most reliable broadband network in the communities we serve and driving long-term value for customers and shareholders."
Second Quarter 2025 Financial Highlights
-- Revenue: $4.22 million vs $4.25 million in 2Q24, as subscriber gains in
our fiber-optic footprint were offset by declines in voice services
provided on the legacy copper network. New orders for fiber internet in
July and August exceed 350 customers, with additional pre-orders of more
than 250 in areas currently under construction.
-- Operating Profit: $1.3 million vs. $1.7 million in 2Q24, driven by
increased depreciation expense of $145k and increased operating expenses
of $140k.
-- Net Income: $640,000 vs. $1.1 million in the prior year period.
-- EBITDA (Non-GAAP): $2.1 million vs. $2.4 million. See "Non-GAAP Financial
Measures."
Year-to-Date 2025 (Six Months Ended June 30, 2025)
-- Revenue: $8.35 million vs. $8.42 million in 2024. -- Operating Profit: $2.42 million vs. $2.85 million. -- Net Income: $1.23 million vs. $1.65 million. -- EBITDA (Non-GAAP): $4.2 million vs. $4.3 million.
Strategic & Operational Highlights
-- Fiber Build & Passings: Year-to-date capital investments of approximately
$3.7 million, adding more than 50 fiber route-miles and 1,000 passings in
the first half of 2025.As of June 30, 2025, Michigan Broadband serves
approximately 1,800 fiber broadband customers across 9,500 passings;
take-rates are expected to improve as build areas mature.
-- E-ACAM Program: We reiterate our expectation to reach 3,500 new fiber
passings in 2025 under the Enhanced-ACAM program, bringing total E-ACAM
locations served to approximately 4,500 by year-end 2025, or about 50%
of the amount required by the end of 2028.
-- ReConnect (RC3) Projects: Construction continued on RC3 grant projects
that will ultimately improve connectivity to >2,500 locations over 500
miles, with an estimated total multi-year cost of $85 million, inclusive
of up to $16 million in matching investment by MachTen.
-- Network Modernization: The core switching and routing upgrade initiated
in early 2025 is progressing, designed to enhance reliability, throughput,
and redundancy as fiber replaces legacy copper-based DSL. The impact to
our customers service has already been significant, and will continue to
improve in the 2nd half of 2025.
-- Operating Services Agreement (OSA) with UP Fiber, Inc.: Michigan
Broadband is finalizing an OSA with UP Fiber related to its acquisition
of AT&T's wireline assets in Michigan's Upper Peninsula. Under the OSA,
Michigan Broadband will provide customer service, billing, sales,
marketing, and administrative support to UP Fiber and benefit from
increased network capacity.
Balance Sheet & Liquidity
-- Cash & Cash Equivalents: $1.73 million as of June 30, 2025.
-- Debt: MachTen's $20 million term loan with the National Cooperative
Services Corporation (NCSC), executed in August 2024, had $17 million
outstanding at a weighted average interest rate of approximately 5.5% as
of June 30, 2025.
-- Capital Allocation: We remain disciplined, prioritizing fiber builds with
the highest expected returns and programs with contractual support.
Non-GAAP Financial Measures
EBITDA is a non-GAAP financial measure commonly used in the telecommunications industry as it eliminates differences in financial, capitalization, and tax structures. We believe EBITDA trends are a valuable indicator of whether our operations produce sufficient operating cash flow to fund working capital needs, service debt, and fund capital expenditures.
We define EBITDA as Operating Profit from Continuing Operations plus depreciation and amortization expense and corporate expenses. A reconciliation of EBITDA to the most directly comparable GAAP measure will be provided in our supplemental materials for the period.
About MachTen, Inc.
MachTen is a holding company for Michigan Broadband Services, Upper Peninsula Telephone Company (UPTC), Michigan Central Broadband Company $(MCBC)$, and Alpha Enterprises Ltd. MachTen's subsidiaries provide broadband internet access and communications services, including voice, video, home automation, and managed hosting services. Investors should refer to filings posted at www.machteninc.com for additional information.
Forward-Looking Statements
This press release contains "forward-looking statements," including statements regarding expected build activity, program milestones, projected passings, subscriber growth, capital investments, regulatory developments, and anticipated financial performance. Forward-looking statements are based on current expectations and assumptions and involve risks and uncertainties that could cause actual results to differ materially. Factors that could cause such differences include, among others, changes in economic conditions, regulatory or legal developments, the availability and cost of labor and materials, program timing and eligibility, competitive dynamics, and other risks described in our public disclosures. MachTen undertakes no obligation to update forward-looking statements, except as required by law.
MachTen, Inc. and Subsidiaries
Condensed Consolidated Statements of Financial
Condition
(in thousands, except per share
data)
30-Jun December 31,
2025 2024
(Unaudited) (Audited)
Assets
Cash and cash equivalents $ 1,728 $ 1,683
Accounts receivable 1,033 1,353
Materials and supplies 3,490 3,013
Other current assets 534 467
Current assets $ 6,785 $ 6,516
======== =========
Property, plant and equipment, net 34,384 32,402
Right-of-use assets, net 544 544
Goodwill 100 100
Other noncurrent assets 92 129
Total assets $ 41,905 $ 39,691
======== =========
Liabilities and Shareholders' Equity
Current liabilities:
Trade accounts payable $ 1,424 $ 2,238
Accrued liabilities 1,741 952
Current operating lease liability 60 105
Total current liabilities 3,226 3,295
Deferred income taxes 3,864 3,867
Term Loan (NCSC) 17,000 16,000
Preferred Stock 514 514
Long term operating lease
liability 572 526
Other noncurrent liabilities 166 159
Total Long-Term Liabilities 22,116 21,066
Shareholders' equity
Common Stock 3 3
Additional paid-in capital 10,530 10,530
Unearned Compensation (317) (317)
Retained earnings 6,349 5,114
-------- ---------
Total shareholders' equity 16,565 15,330
Total liabilities and
shareholders' equity $ 41,907 $ 39,691
======== =========
Basic shares outstanding 3,271 3,271
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MachTen, Inc. and Subsidiaries
Condensed Consolidated Statements of
Operations (Unaudited)
(in thousands, except per share
data)
3 Months Ended
----------------------------
June 30, June 30,
2025 2024
-------- ------------------
Operating Revenue:
Regulated Revenue $ 3,176 $ 3,241
Broadband 855 840
Video & Other 184 165
Total operating revenue 4,215 4,246
Operating Costs:
Cost of revenue 1,454 1,314
General and administrative 645 511
Depreciation and accretion 841 696
Total costs 2,940 2,521
Operating income 1,275 1,725
Other Income (Expense):
Interest expense (222) (255)
Investment income 11 2
Total non-operating income /
(loss) (211) (253)
Income before provision for income
taxes 1,064 1,472
Provision for income taxes 423 417
Net income $ 641 $ 1,055
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