MachTen Reports Results for the Third Quarter of 2025
TRAVERSE CITY, Mich., Nov. 20, 2025 (GLOBE NEWSWIRE) — MachTen, Inc. (OTC: MACT) today announced financial results for the third quarter ended September 30, 2025.
“Michigan Broadband delivered another quarter of disciplined execution, expanding our fiber footprint while continuing to invest in our teams, systems and capabilities that support scalable growth,” said Dan Miller, Chief Executive Officer. “We remain committed to building the most reliable network in every community we serve, driving long-term value for our customers, partners, and shareholders.”
Third Quarter 2025 Financial Highlights
- Revenue: $4.3 million was approximately flat compared to the third quarter of 2024, as new fiber-optic subscribers were offset by declines in copper-based voice and DSL customers. We expect revenue to improve in 2026 from an increase in fiber penetration and bundled services.
- Operating Profit: $1.1 million vs. $1.8 million in 3Q24. Construction of new fiber assets contributed to higher depreciation expense of $195,000 and Michigan personal property tax added $200,000. Operating expense tied to additional staff contributed approximately $80,000.
- Net Income: $496,000 vs. $1.7 million, impacted by higher operating costs and the absence of a $514,000 one-time benefit to interest expense in the prior year period.
- EBITDA (Non-GAAP): $1.9 million vs. $2.5 million. See “Non-GAAP Financial Measures.”
Strategic & Operational Highlights
- Fiber Network Expansion: Our in-house engineering and construction teams continue to improve efficiency as we scale efforts to upgrade from copper to fiber in the incumbent footprint.
Year to date through September, we deployed approximately $5.8 million in capital investments, with completed fiber projects in Drummond, Gogebic, Scott Point, Smoky Lake, Wallace, and Carney. Through the end of the third quarter, our teams built roughly 150 miles of fiber optic network with more than 2,700 passings.
As of September 30, 2025, Michigan Broadband had 2,030 fiber-internet customers, up from 1,500 a year ago. Take-rates are expected to improve, with total fiber passings expected to exceed 12,000 by the end of 2025.
- 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 at the 100/20 speed threshold to approximately 4,350 by year-end 2025. This represents 50% of the locations Michigan Broadband is required to serve by the end of 2028. An additional 2,500 locations are contemplated to receive fiber upgrades in 2026, leaving about 2,000 serviceable addresses to be upgraded in 2027 and 2028.
- ReConnect (RC3) Projects: Construction will resume in the fourth quarter of 2025 on our ReConnect grant projects that will ultimately improve connectivity to 2,500 locations over 500 miles. Sections of the Grace Harbor and Watson exchanges are scheduled to be built in the 4th quarter of 2025, with an acceleration in early 2026.
- Network Modernization: During the third quarter, we achieved a significant milestone in modernizing network operations with the deployment of a new in-house monitoring and management platform across the Michigan Broadband system. The platform now provides real-time visibility into 92 active network devices across all operating locations, with scalability to more than 10,000 monitored elements. This system enhances reliability, accelerates fault detection and response, and reduces vendor dependency. Establishing this in-house capability represents a key step toward operational autonomy, improved network resilience, and greater efficiency. These capabilities also position us well to support the larger footprint related to UP Fiber’s acquisition of assets from AT&T.
- Operating Services Agreement (OSA) with UP Fiber: As previously disclosed, Michigan Broadband is finalizing an OSA with UP Fiber related to its acquisition of AT&T’s wireline assets. FCC approval of the acquisition is expected in the fourth quarter of 2025, with a closing date in early 2026. Under the OSA, Michigan Broadband will provide customer service, billing, sales, marketing, and administrative support to UP Fiber’s footprint that is comprised of more than 200,000 passings. Michigan Broadband will also benefit from access to UP Fiber’s robust network infrastructure, reducing reliance on third parties, and lower operating costs.
Balance Sheet & Liquidity
- Cash & Cash Equivalents: $1.6 million as of September 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 September 30, 2025.
- Capital Allocation: We remain disciplined in capital allocation, prioritizing fiber builds with the highest expected returns and opportunities backed by multi-year 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) | ||||||||
| September 30 | September 30 | |||||||
| 2025 | 2024 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 1,623 | $ | 1,295 | ||||
| Accounts receivable | 1,027 | 1,099 | ||||||
| Materials and supplies | 4,015 | 3,095 | ||||||
| Other current assets | 686 | 425 | ||||||
| Current assets | $ | 7,351 | $ | 5,914 | ||||
| Property, plant and equipment, net | 35,617 | 31,837 | ||||||
| Right-of-use assets, net | 544 | 679 | ||||||
| Goodwill | 100 | 100 | ||||||
| Other noncurrent assets | 86 | 153 | ||||||
| Total assets | $ | 43,698 | $ | 38,683 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Trade accounts payable | $ | 2,677 | $ | 1,843 | ||||
| Accrued liabilities | 1,782 | 1,955 | ||||||
| Current operating lease liability | 60 | 78 | ||||||
| Total current liabilities | 4,520 | 3,877 | ||||||
| Deferred income taxes | 3,862 | 2,855 | ||||||
| Term Loan (NCSC) | 17,000 | 16,000 | ||||||
| Preferred Stock | 514 | 514 | ||||||
| Long term operating lease liability | 572 | 644 | ||||||
| Other noncurrent liabilities | 169 | 156 | ||||||
| Total Long-Term Liabilities | 22,117 | 20,169 | ||||||
| Shareholders’ equity | ||||||||
| Common Stock | 3 | 3 | ||||||
| Additional paid-in capital | 10,530 | 10,530 | ||||||
| Unearned Compensation | (317 | ) | (405 | ) | ||||
| Retained earnings | 6,845 | 4,509 | ||||||
| Total shareholders’ equity | 17,061 | 14,637 | ||||||
| Total liabilities and shareholders’ equity | $ | 43,698 | $ | 38,683 | ||||
| Basic shares outstanding | 3,271 | 3,271 | ||||||
| MachTen, Inc. and Subsidiaries | ||||||||
| Condensed Consolidated Statements of Operations (Unaudited) | ||||||||
| (in thousands, except per share data) | ||||||||
| 3 Months Ended | ||||||||
| September 30, 2025 | September 30, 2024 | |||||||
| Operating Revenue: | ||||||||
| Regulated Revenue | $ | 3,164 | $ | 3,242 | ||||
| Broadband | 915 | 885 | ||||||
| Video & Other | 177 | 180 | ||||||
| Total operating revenue | 4,256 | 4,307 | ||||||
| Operating Costs: | ||||||||
| Cost of revenue | 1,488 | 1,202 | ||||||
| General and administrative | 845 | 560 | ||||||
| Depreciation and accretion | 876 | 681 | ||||||
| Total costs | 3,209 | 2,443 | ||||||
| Operating income | 1,047 | 1,864 | ||||||
| Other Income (Expense): | ||||||||
| Interest income / (expense)* | (249 | ) | 235 | |||||
| Investment income | 7 | 1 | ||||||
| Total non-operating income / (loss) | (242 | ) | 236 | |||||
| Income before provision for income taxes | 805 | 2,100 | ||||||
| Provision for income taxes | 309 | 431 | ||||||
| Net income | $ | 496 | $ | 1,669 | ||||
| Earnings per share attributable to common | ||||||||
| stockholders: | ||||||||
| Basic | $ | 0.15 | $ | 0.51 | ||||
| Diluted | $ | 0.15 | $ | 0.51 | ||||
| Weighted average shares outstanding: | ||||||||
| Basic | 3,272 | 3,272 | ||||||
| Diluted | 3,272 | 3,272 | ||||||
| * There was a one-time interest expense reduction of $514,000 in the third quarter of 2024 | ||||||||
| MachTen, Inc. and Subsidiaries | ||||||||
| Condensed Consolidated Statements of Operations (Unaudited) | ||||||||
| (in thousands, except per share data) | ||||||||
| 9 Months Ended | ||||||||
| September 30, 2025 | September 30, 2024 | |||||||
| Operating Revenue: | ||||||||
| Regulated Revenue | $ | 9,502 | $ | 9,691 | ||||
| Broadband | 2,582 | 2,526 | ||||||
| Video & Other | 525 | 510 | ||||||
| Total operating revenue | 12,609 | 12,727 | ||||||
| Operating Costs: | ||||||||
| Cost of revenue | 4,421 | 4,129 | ||||||
| General and administrative | 2,116 | 1,727 | ||||||
| Depreciation and accretion | 2,608 | 2,157 | ||||||
| Total costs | 9,145 | 8,013 | ||||||
| Operating income | 3,464 | 4,714 | ||||||
| Other Income (Expense): | ||||||||
| Interest income / (expense)* | (692 | ) | (276 | ) | ||||
| Investment income | 23 | 9 | ||||||
| Total non-operating income / (loss) | (669 | ) | (267 | ) | ||||
| Income before provision for income taxes | 2,795 | 4,447 | ||||||
| Provision for income taxes | 1,065 | 1,127 | ||||||
| Net income | $ | 1,730 | $ | 3,320 | ||||
| Earnings per share attributable to common | ||||||||
| stockholders: | ||||||||
| Basic | $ | 0.53 | $ | 1.01 | ||||
| Diluted | $ | 0.53 | $ | 1.01 | ||||
| Weighted average shares outstanding: | ||||||||
| Basic | 3,272 | 3,272 | ||||||
| Diluted | 3,272 | 3,272 | ||||||
| * There was a one-time interest expense reduction of $514,000 in the third quarter of 2024 | ||||||||
| EBITDA Reconciliation | 3 Months Ended | |||||||
| September 30, 2025 | September 30, 2024 | |||||||
| Operating Profit | $ | 1,047 | $ | 1,864 | ||||
| Depreciation & Amortization | 876 | 681 | ||||||
| Total EBITDA | 1,923 | 2,545 | ||||||
Contact:
Dan Miller
Chief Executive Officer
(914) 921-5193
