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 | ||||
| Total Revenue | $4,951 | $4,215 | ||||
| Operating Profit | $1,489 | $1,274 | ||||
| Net Income | $882 | $640 | ||||
| EBITDA (Non-GAAP) | $2,523 | $2,222 | ||||
- 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 | ||||
| Total Revenue | $9,923 | $8,353 | ||||
| Operating Profit | $2,856 | $2,418 | ||||
| Net Income | $1,630 | $1,234 | ||||
| EBITDA (Non-GAAP) | $5,040 | $4,315 | ||||
- 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 | ||||
| Cash & Cash Equivalents | $1,699 | $1,827 | ||||
| Total Assets | $47,371 | $46,751 | ||||
| Long-Term Debt | $18,810 | $18,356 | ||||
| Total Shareholders' Equity | $19,170 | $17,540 | ||||
- 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
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) | |||||||||
| June 30 | June 30 | ||||||||
| 2026 | 2025 | ||||||||
| (Unaudited) | (Unaudited) | ||||||||
| Assets | |||||||||
| Cash and cash equivalents | - | 1,700 | - | 1,728 | |||||
| Accounts receivable | 1,549 | 1,033 | |||||||
| Materials and supplies | 5,359 | 3,490 | |||||||
| Other current assets | 612 | 534 | |||||||
| Current assets | - | 9,220 | - | 6,785 | |||||
| Property, plant and equipment, net | 37,588 | 34,384 | |||||||
| Right-of-use assets, net | 373 | 544 | |||||||
| Goodwill | 100 | 100 | |||||||
| Other noncurrent assets | 92 | 92 | |||||||
| Total assets | - | 47,373 | - | 41,905 | |||||
| Liabilities and Shareholders' Equity | |||||||||
| Current liabilities: | |||||||||
| Trade accounts payable | - | 1,490 | - | 1,424 | |||||
| Accrued liabilities | 2,071 | 1,741 | |||||||
| Current operating lease liability | 115 | 60 | |||||||
| Total current liabilities | 3,677 | 3,226 | |||||||
| Deferred income taxes | 4,474 | 3,864 | |||||||
| Long Term Debt (NCSC + Ford) | 18,810 | 17,000 | |||||||
| Preferred Stock | 803 | 514 | |||||||
| Long term operating lease liability | 259 | 572 | |||||||
| Other noncurrent liabilities | 180 | 166 | |||||||
| Total Long-Term Liabilities | 24,526 | 22,116 | |||||||
| Shareholders' equity | |||||||||
| Common Stock | 3 | 3 | |||||||
| Additional paid-in capital | 10,774 | 10,530 | |||||||
| Unearned Compensation | (457 | - | (317 | - | |||||
| Retained earnings | 8,850 | 6,349 | |||||||
| Total shareholders' equity | 19,170 | 16,565 | |||||||
| Total liabilities and shareholders' equity | - | 47,373 | - | 41,907 | |||||
| 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 | |||||||||
| June 30, 2026 | June 30, 2025 | ||||||||
| Operating Revenue: | |||||||||
| Regulated Revenue | - | 3,899 | - | 3,176 | |||||
| Broadband | 885 | 855 | |||||||
| Video & Other | 168 | 184 | |||||||
| Total operating revenue | 4,952 | 4,215 | |||||||
| Operating Costs: | |||||||||
| Cost of revenue | 1,974 | 1,454 | |||||||
| General and administrative | 595 | 645 | |||||||
| Depreciation and accretion | 890 | 841 | |||||||
| Total costs | 3,459 | 2,940 | |||||||
| Operating income | 1,493 | 1,275 | |||||||
| Other Income (Expense): | |||||||||
| Interest expense | (271 | - | (222 | - | |||||
| Investment income | 6 | 11 | |||||||
| Total non-operating income / (loss) | (265 | - | (211 | - | |||||
| Income before provision for income taxes | 1,228 | 1,064 | |||||||
| Provision for income taxes | 342 | 423 | |||||||
| Net income | - | 886 | - | 641 | |||||
| Earnings per share attributable to common | |||||||||
| stockholders: | |||||||||
| Basic | - | 0.28 | - | 0.20 | |||||
| Diluted | - | 0.27 | - | 0.20 | |||||
| Weighted average shares outstanding: | |||||||||
| Basic | 3,209 | 3,189 | |||||||
| Diluted | 3,272 | 3,272 | |||||||
Contact:
Dan Miller
Chief Executive Officer
(914) 921-5193
