Recent SEC filings highlight ongoing regulatory and labor developments impacting GCI Liberty, including litigation affecting the Universal Service Fund program and a pending unionization election.

• The U.S. Court of Appeals for the Fifth Circuit vacated the fourth quarter 2025 USF contribution factor and found the FCC's creation of the USAC illegal, creating uncertainty around USF support that accounts for 47% of GCI's revenue for the nine months ended September 30, 2026, and 46% for the year ended December 31, 2025, with $107 million in USF net receivables as of September 30, 2026. This ruling could materially decrease revenue and adversely affect financial position and liquidity.[S2]
• On September 16, 2026, a petition was filed to unionize an eight-person unit within GCI, with a mail ballot election ordered for December 2026. Increased unionization could raise labor costs and reduce operational flexibility.[S2]
• GCI Liberty reported $387 million in cash and equivalents, a current ratio of 2.85, net income of $27 million, and EPS of $0.68 for the quarter ended September 30, 2026.[S2]

GCI Liberty benefits from its comprehensive communications infrastructure in Alaska, enabling it to serve a broad customer base across challenging geographies. Its participation in federal subsidy programs and grants supports rural expansion and network development. The company's integrated service offerings and network management capabilities create operational efficiencies and customer retention. Solid liquidity and profitability metrics as of Q3 2026 provide financial flexibility. The rights offering in late 2025 raised approximately $300 million for general corporate purposes, including potential strategic acquisitions or investments, which could enhance growth opportunities.

The company faces significant regulatory risks, particularly related to ongoing litigation and uncertainty surrounding the constitutionality and administration of the Universal Service Fund program, which accounts for nearly half of its revenue. A material reduction or disruption in USF support could materially decrease revenue and adversely affect financial position and liquidity. Additionally, potential unionization of employees could increase labor costs and reduce operational flexibility. The exit from the video business may reduce revenue diversification. The company's operations are subject to extensive federal, state, and local regulations, and changes in the regulatory environment could negatively impact its business.

GCI Liberty's moat is primarily derived from its integrated communications network infrastructure in Alaska, including fiber optic, microwave, satellite, and wireless technologies, which serve both urban and remote rural areas. The company's participation in federally subsidized programs and receipt of government grants support its ability to provide services in high-cost, underserved regions, creating barriers to entry for competitors. Its extensive FCC licenses and regulatory approvals further protect its operations. The company's longstanding presence and customer relationships in Alaska, combined with its bundled service offerings and integrated network management, contribute to customer loyalty and operational efficiencies.

• Regulatory Risk: Ongoing litigation and legal challenges to the Universal Service Fund program could disrupt a significant portion of GCI Liberty's revenue and adversely affect its financial position and liquidity.
• Labor Risk: Pending unionization efforts could increase labor costs, reduce operational flexibility, and lead to labor disputes, potentially disrupting operations.
• Market and Operational Risk: The company's exit from the video business reduces revenue diversification. Operating in Alaska's challenging geography requires continued investment and regulatory compliance, which may impact costs and service delivery.

• GCI Liberty, Inc. is a holding company owning 100% equity interests in GCI, LLC, GCI Holdings, LLC, and their subsidiaries, collectively referred to as the GCI Business.
• GCI Liberty was formed in December 2024 and completed an internal reorganization in July 2025 to transfer the GCI Business from Liberty Broadband to GCI Liberty.
• The company completed a separation from Liberty Broadband, including a Preferred Stock Sale and reclassification of common stock into Series A, B, and C GCI Group common stock.
• GCI Holdings provides integrated communication services including data, wireless, voice, and managed services primarily in Alaska.
• GCI Holdings exited the video business as of December 31, 2025, discontinuing all video services.
• The company serves residential, business, governmental, educational, and medical customers, with a network including fiber, microwave, satellite, and a statewide wireless network.
• GCI Holdings participates in federally and locally subsidized programs to support telecommunications services in high-cost and rural areas of Alaska, including federal grants and the USF program.
• USF support accounted for approximately 47% of GCI's revenue for the nine months ended September 30, 2026, and 46% for the year ended December 31, 2025.
• GCI Holdings operates an advanced, diverse communications network with 5G and 4G wireless services and the highest-capacity backbone in Alaska.
• The company holds various FCC licenses for satellite, microwave, wireless spectrum, and earth stations, subject to renewal and regulatory compliance.
• GCI Liberty entered into agreements with Liberty Media for public company support services, with fees around $5 million annually.
• As of September 30, 2026, GCI Liberty had $387 million in cash and equivalents, $610 million in current assets, $214 million in current liabilities, a current ratio of 2.85, and a cash ratio of 1.81.
• Net income for the quarter ended September 30, 2026, was $27 million, with basic and diluted EPS of $0.68.
• The company faces regulatory risks including ongoing litigation and uncertainty regarding the constitutionality and administration of the USF program, which could materially affect revenue and financial position.
• There is a pending unionization election for a small unit of employees, which could affect labor costs and operational flexibility.