(MENAFN- GlobeNewsWire - Nasdaq) 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 4^th 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

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

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