MachTen Reports Financial Results for the Second Quarter of 2025

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 2^nd 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.

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