📊 LUMN Key Takeaways
Is LUMN a Good Investment? Thesis Analysis
Lumen Technologies exhibits severe financial distress with negative net income of $1.7B, negative stockholders' equity of -$1.1B indicating technical insolvency, and an operating margin of -6.5% despite revenue growth. The company faces critical solvency concerns with $17.4B in long-term debt against deteriorating profitability and negative interest coverage of -0.6x, suggesting inability to service debt obligations from operations.
Why Buy LUMN? Key Strengths
- Revenue growth of 9.5% YoY demonstrates underlying demand in core telecom services
- Positive operating cash flow of $4.7B provides near-term liquidity despite accounting losses
- Current ratio of 1.80x indicates adequate short-term liquidity to meet immediate obligations
LUMN Investment Risks to Consider
- Negative stockholders' equity of -$1.1B represents technical insolvency and balance sheet deterioration
- Negative interest coverage of -0.6x indicates operating losses exceed interest expense, creating debt servicing risk
- Negative net margin of -14.0% and operating margin of -6.5% show structural unprofitability despite revenue growth; company burns cash on operating basis after capital expenditures
Key Metrics to Watch
- Path to operating profitability and timeline to positive EBITDA margin
- Debt reduction progress and refinancing risks given negative interest coverage
- Free cash flow sustainability relative to $17.4B debt obligations and capital requirements
LUMN Financial Metrics
💡 AI Analyst Insight
The relatively thin 3.0% FCF margin may limit capital allocation flexibility.
LUMN Profitability Ratios
LUMN vs Default Sector
How Lumen Technologies, Inc. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is LUMN Overvalued or Undervalued?
Based on fundamental analysis, Lumen Technologies, Inc. has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
LUMN Balance Sheet & Liquidity
LUMN 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Lumen Technologies, Inc.'s revenue has declined by 31% over the 5-year period, indicating business contraction. The most recent EPS of $-10.48 indicates the company is currently unprofitable.
LUMN Growth Metrics (YoY)
LUMN Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $2.8B | -$140.0M | $-0.14 |
| Q2 2025 | $2.9B | $8.0M | $0.01 |
| Q1 2025 | $2.9B | $57.0M | $0.06 |
| Q3 2024 | $3.0B | -$78.0M | $-0.08 |
| Q2 2024 | $3.0B | $8.0M | $0.01 |
| Q1 2024 | $3.1B | $57.0M | $0.06 |
| Q3 2021 | $4.4B | $366.0M | $0.34 |
| Q2 2021 | $4.5B | $377.0M | $0.35 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
LUMN Capital Allocation
LUMN SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Lumen Technologies, Inc. (CIK: 0000018926)
📋 Recent SEC Filings
❓ Frequently Asked Questions about LUMN
What is the AI rating for LUMN?
Lumen Technologies, Inc. (LUMN) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.
What are LUMN's key strengths?
Claude: Revenue growth of 9.5% YoY demonstrates underlying demand in core telecom services. Positive operating cash flow of $4.7B provides near-term liquidity despite accounting losses.
What are the risks of investing in LUMN?
Claude: Negative stockholders' equity of -$1.1B represents technical insolvency and balance sheet deterioration. Negative interest coverage of -0.6x indicates operating losses exceed interest expense, creating debt servicing risk.
What is LUMN's revenue and growth?
Lumen Technologies, Inc. reported revenue of $12.4B.
Does LUMN pay dividends?
Lumen Technologies, Inc. pays dividends, with $1.0M distributed to shareholders in the trailing twelve months.
Where can I find LUMN SEC filings?
Official SEC filings for Lumen Technologies, Inc. (CIK: 0000018926) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LUMN's EPS?
Lumen Technologies, Inc. has a diluted EPS of $-1.75.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is LUMN a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Lumen Technologies, Inc. has a STRONG SELL rating with 92% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is LUMN stock overvalued or undervalued?
Valuation metrics for LUMN: ROE of N/A (sector avg: 15%), net margin of -14.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy LUMN stock in 2026?
Our dual AI analysis gives Lumen Technologies, Inc. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is LUMN's free cash flow?
Lumen Technologies, Inc.'s operating cash flow is $4.7B, with capital expenditures of $4.4B. FCF margin is 3.0%.
How does LUMN compare to other Default stocks?
Vs Default sector averages: Net margin -14.0% (avg: 12%), ROE N/A (avg: 15%), current ratio 1.80 (avg: 1.8).