TRAVERSE CITY, Mich., Sept. 09, 2026 (GLOBE NEWSWIRE) -- MachTen, Inc. (OTC: MACT) today announced financial results for the second quarter and six months ended June 30, 2026.
"The second quarter marked an important period of progress for MachTen and our operating companies," said Dan Miller, Chief Executive Officer. "Our fiber construction capabilities continue to strengthen, we are making meaningful progress toward Enhanced A-CAM and ReConnect deployment commitments, and the recently announced agreement to acquire the Educational Access Network will significantly expand our broadband platform capabilities."
"We also formally entered an Operating Services Agreement with UP Fiber, Inc. following its acquisition of wireline assets from AT&T. The agreement is expected to generate service revenue for Michigan Broadband, create opportunities to reduce network transport costs, and expand the availability of bundled services across the region."
Second Quarter 2026 Financial Highlights
($ thousands, unaudited) Q2 2026 Q2 2025
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Total Revenue $4,951 $4,215
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Operating Profit $1,489 $1,274
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Net Income $882 $640
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EBITDA (Non-GAAP) $2,523 $2,222
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-- Revenue: $5.0 million for the second quarter of 2026, an increase of
17.5% compared to $4.2 million in Q2 2025, driven by the previously
disclosed increase in Enhanced A-CAM support. This improvement was
partially offset by continued declines in legacy voice and copper-based
broadband services.
-- Operating Profit: $1.5 million in Q2 2026 vs. $1.3 million in Q2 2025, an
improvement of 16.9%, as higher regulated revenue more than offset
increased depreciation expense associated with continued fiber network
investment.
-- Net Income: $0.9 million for Q2 2026 vs. $0.6 million in Q2 2025, a 37.8%
improvement year-over-year.
-- EBITDA: $2.5 million in Q2 2026 vs. $2.2 million in Q2 2025, an
improvement of 13.5%, with an EBITDA margin of 51.0%. See "Non-GAAP
Financial Measures."
First Half 2026 Financial Highlights (Six Months Ended June 30, 2026)
($ thousands, unaudited) H1 2026 H1 2025
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Total Revenue $9,923 $8,353
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Operating Profit $2,856 $2,418
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Net Income $1,630 $1,234
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EBITDA (Non-GAAP) $5,040 $4,315
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-- Revenue: $9.9 million for the first half of 2026, an increase of 18.8%
compared to $8.4 million in the first half of 2025. The increase was
driven primarily by the increase in Enhanced A-CAM support that took
effect with payments beginning in February 2026, partially offset by
continued declines in legacy voice and DSL services.
-- Operating Profit: $2.9 million for H1 2026 vs. $2.4 million in H1 2025,
an improvement of 18.1%, reflecting higher revenue partially offset by
increased depreciation and cost of revenue associated with the ongoing
fiber network buildout.
-- Net Income: $1.6 million for H1 2026 vs. $1.2 million in H1 2025, a 32%
improvement year-over-year, as higher operating profit was partially
offset by higher interest expense.
-- EBITDA: $5.0 million for H1 2026 vs. $4.3 million in H1 2025, an
improvement of 16.8%, with an EBITDA margin of 50.8%. See "Non-GAAP
Financial Measures."
Strategic & Operational Highlights
-- Fiber Network Expansion: The Michigan Broadband fiber construction team
continued to develop fiber infrastructure, with a focus on ReConnect
projects during the seasonally challenging second quarter. Through June
30, nearly 1,000 additional passings have been added to the more than
12,000 directly serviceable and 20% take rate.
-- Enhanced A-CAM: Consistent with updated FCC guidance published in late
2025, the Enhanced A-CAM true-up resulted in an increase to Michigan
Broadband's annual support to $12.3 million, up from $9.6 million
previously. This support is expected to continue through 2038 and is a
significant and stable contributor to cash flow.
-- ReConnect (RC3) Grant Projects: We completed Phase 1 of the Grace Harbor
project and 80% of the Watson project, with 75% of project costs
reimbursable.
-- Operating Agreement with UP Fiber: UP Fiber's acquisition of AT&T's
wireline assets closed on March 31, 2026. Michigan Broadband is now
providing customer service, billing, sales, marketing, and administrative
support to UP Fiber's footprint of more than 200,000 passings. Michigan
Broadband also benefits from access to UP Fiber's network infrastructure,
reducing reliance on third-party transport providers.
-- BEAD: Upper Peninsula Telephone Company was awarded $35.5 million in BEAD
funding, with a grant agreement finalized subsequent to the end of the
quarter. This project, in partnership with UP Fiber, will facilitate the
construction of a hybrid fiber / 5G fixed wireless network serving
approximately 4,500 BEAD-eligible locations, with UP Fiber expected to
contribute additional capital to bring 100/20 service to communities that
contain more than 300,000 residential and business passings.
-- Educational Access Network Acquisition: Subsequent to the end of the
quarter, Michigan Broadband announced an agreement to acquire
substantially all assets of the Educational Access Network ("EAN") for
$21 million. The EAN assets include licensed 2.5 GHz Educational
Broadband Service spectrum covering portions of 41 counties, Nokia
AirScale radio equipment across more than 70 tower sites, and licensed
microwave facilities. The EAN currently generates approximately $2.5
million in annual revenue from 7,500 subscribers. Michigan Broadband
intends to upgrade the network from 4G LTE to 5G and integrate it with
its fiber platform, which now spans more than 2,500 miles across northern
Michigan. The transaction is subject to customary regulatory approvals
and closing conditions.
-- Network Modernization: Michigan Broadband continued its multi-year
project to modernize its voice, data, video, and wireless network
infrastructure. These investments are expected to improve network
capacity, reliability and redundancy across Michigan Broadband's service
territory.
Balance Sheet & Liquidity
Balance Sheet Highlights ($ thousands) 6/30/2026 12/31/2025
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Cash & Cash Equivalents $1,699 $1,827
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Total Assets $47,371 $46,751
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Long-Term Debt $18,810 $18,356
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Total Shareholders' Equity $19,170 $17,540
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-- Debt: MachTen had $18.8 million of gross debt outstanding as of June 30,
2026, including a term loan with the National Cooperative Services
Corporation (NCSC) and vehicle financing.
-- Shareholders' Equity: $19.2 million as of June 30, 2026, up from $17.5
million at December 31, 2025, reflecting $1.6 million of net income
earned in the first half of 2026.
Non--GAAP Financial Measures
EBITDA is a non-GAAP financial measure commonly used in the telecommunications industry as it eliminates differences in financial, capitalization, and tax structures. We believe EBITDA trends are a valuable indicator of whether our operations produce sufficient operating cash flow to fund working capital needs, service debt, and fund capital expenditures.
We define EBITDA as Operating Profit from Continuing Operations plus depreciation and amortization expense and ad valorem / state of Michigan property taxes. A reconciliation of EBITDA to the most directly comparable GAAP measure is presented below.
EBITDA Reconciliation ($ thousands) Q2 2026 Q2 2025 1H 2026 1H 2025 ---------------------------------- ------- ------- ------- ------- Operating Profit $1,489 $1,275 $2,856 $2,420 ---------------------------------- ------- ------- ------- ------- Add: Depreciation and Amortization 890 837 1,892 1,725 ---------------------------------- ------- ------- ------- ------- Add: Property Tax 144 94 291 166 ---------------------------------- ------- ------- ------- ------- EBITDA (Non-GAAP) 2,523 2,206 5,040 4,311 ---------------------------------- ------- ------- ------- -------
About MachTen, Inc.
MachTen is a holding company for Michigan Broadband Corporation, 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, automation, and managed hosting services. Investors should refer to filings posted at www.machteninc.com for additional information.
Forward--Looking Statements