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MachTen Reports Financial Results for the Full Year 2024 & First Quarter of 2025

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MachTen reported its financial results for 2024 and Q1 2025, showing mixed performance. The company achieved record revenue of $17 million in 2024, up from $15.9 million in 2023, driven by Enhanced-ACAM support. However, net income decreased to $3.9 million from $4.3 million due to higher depreciation and interest expenses.

The company made significant infrastructure investments, deploying over 100 miles of fiber and 2,900 new passings in 2024. Key projects included a 50-mile FTTH network in St. Ignace and a $4 million expansion in Wallace and Carney. As of March 2025, MachTen serves 1,600 fiber broadband customers across 10,000 passings.

Looking ahead, MachTen secured a $20 million term loan from NCSC and plans to accelerate E-ACAM-supported broadband deployment to 3,500 new passings in 2025. The company also announced a strategic partnership with UP Fiber to provide operational services for AT&T's wireline assets.

MachTen ha comunicato i risultati finanziari per il 2024 e il primo trimestre del 2025, mostrando una performance mista. L'azienda ha raggiunto un fatturato record di 17 milioni di dollari nel 2024, in aumento rispetto ai 15,9 milioni del 2023, grazie al supporto Enhanced-ACAM. Tuttavia, l'utile netto è sceso a 3,9 milioni da 4,3 milioni a causa di maggiori spese per ammortamenti e interessi.

L'azienda ha effettuato importanti investimenti infrastrutturali, installando oltre 160 km di fibra e 2.900 nuove connessioni nel 2024. I progetti principali includevano una rete FTTH di 80 km a St. Ignace e un'espansione da 4 milioni di dollari a Wallace e Carney. A marzo 2025, MachTen serve 1.600 clienti con fibra ottica su 10.000 connessioni.

Guardando al futuro, MachTen ha ottenuto un prestito a termine di 20 milioni di dollari da NCSC e prevede di accelerare la distribuzione della banda larga supportata da E-ACAM a 3.500 nuove connessioni nel 2025. L'azienda ha inoltre annunciato una partnership strategica con UP Fiber per fornire servizi operativi sulle infrastrutture wireline di AT&T.

MachTen informó sus resultados financieros para 2024 y el primer trimestre de 2025, mostrando un desempeño mixto. La compañía alcanzó ingresos récord de 17 millones de dólares en 2024, frente a 15.9 millones en 2023, impulsados por el soporte Enhanced-ACAM. Sin embargo, el ingreso neto disminuyó a 3.9 millones desde 4.3 millones debido a mayores gastos por depreciación e intereses.

La empresa realizó importantes inversiones en infraestructura, desplegando más de 160 kilómetros de fibra y 2,900 nuevas conexiones en 2024. Los proyectos clave incluyeron una red FTTH de 80 kilómetros en St. Ignace y una expansión de 4 millones de dólares en Wallace y Carney. A marzo de 2025, MachTen atiende a 1,600 clientes de banda ancha de fibra en 10,000 conexiones.

De cara al futuro, MachTen aseguró un préstamo a plazo de 20 millones de dólares de NCSC y planea acelerar el despliegue de banda ancha soportada por E-ACAM a 3,500 nuevas conexiones en 2025. La compañía también anunció una alianza estratégica con UP Fiber para proveer servicios operativos para los activos de línea fija de AT&T.

MachTen은 2024� � 2025� 1분기 재무 실적� 발표하며 혼재� 성과� 보였습니�. 회사� Enhanced-ACAM 지원에 힘입� 2024년에 역대 최고 매출 1,700� 달러� 기록했으�, 이는 2023� 1,590� 달러에서 증가� 수치입니�. 하지� 감가상각비와 이자 비용 증가� 순이익은 430� 달러에서 390� 달러� 감소했습니다.

회사� 2024년에 160킬로미터가 넘는 광섬�와 2,900개의 신규 통과 지점을 구축하는 � 인프라에 대규모 투자� 진행했습니다. 주요 프로젝트로는 St. Ignace� 80킬로미터 FTTH 네트워크와 Wallace � Carney� 400� 달러 규모� 확장� 포함됩니�. 2025� 3� 기준으로 MachTen은 10,000개의 통과 지점에� 1,600명의 광대� 고객에게 서비스를 제공하고 있습니다.

앞으� MachTen은 NCSC로부� 2,000� 달러� 기간 대출을 확보했으�, 2025년에 E-ACAM 지� 광대� 배치� 3,500개의 신규 통과 지점으� 가속화� 계획입니�. 또한 AT&T� 유선 자산 운영 서비스를 제공하기 위해 UP Fiber와 전략� 파트너십� 발표했습니다.

MachTen a publié ses résultats financiers pour 2024 et le premier trimestre 2025, affichant des performances mitigées. L'entreprise a réalisé un chiffre d'affaires record de 17 millions de dollars en 2024, en hausse par rapport à 15,9 millions en 2023, grâce au soutien Enhanced-ACAM. Cependant, le bénéfice net a diminué à 3,9 millions contre 4,3 millions en raison de charges plus élevées en amortissements et intérêts.

L'entreprise a réalisé d'importants investissements dans les infrastructures, déployant plus de 160 kilomètres de fibre et 2 900 nouvelles prises en 2024. Les projets clés comprenaient un réseau FTTH de 80 kilomètres à St. Ignace et une extension de 4 millions de dollars à Wallace et Carney. En mars 2025, MachTen dessert 1 600 clients en fibre optique sur 10 000 prises.

Pour l'avenir, MachTen a obtenu un prêt à terme de 20 millions de dollars auprès de NCSC et prévoit d'accélérer le déploiement de la fibre supportée par E-ACAM à 3 500 nouvelles prises en 2025. L'entreprise a également annoncé un partenariat stratégique avec UP Fiber pour fournir des services opérationnels pour les actifs filaires d'AT&T.

MachTen meldete seine Finanzergebnisse für 2024 und das erste Quartal 2025 und zeigte dabei gemischte Leistungen. Das Unternehmen erzielte im Jahr 2024 einen Rekordumsatz von 17 Millionen US-Dollar, gegenüber 15,9 Millionen US-Dollar im Jahr 2023, angetrieben durch Enhanced-ACAM-Unterstützung. Der Nettogewinn sank jedoch von 4,3 Millionen auf 3,9 Millionen US-Dollar aufgrund höherer Abschreibungs- und Zinsaufwendungen.

Das Unternehmen tätigte bedeutende Infrastrukturinvestitionen, indem es im Jahr 2024 über 160 Kilometer Glasfaser und 2.900 neue Anschlüsse verlegte. Wichtige Projekte umfassten ein 80 Kilometer langes FTTH-Netz in St. Ignace sowie eine 4-Millionen-Dollar-Erweiterung in Wallace und Carney. Stand März 2025 bedient MachTen 1.600 Glasfaser-Breitbandkunden über 10.000 Anschlüsse.

Für die Zukunft sicherte sich MachTen einen 20-Millionen-Dollar-Terminkredit von NCSC und plant, die breitbandunterstützte E-ACAM-Ausbau auf 3.500 neue Anschlüsse im Jahr 2025 zu beschleunigen. Zudem kündigte das Unternehmen eine strategische Partnerschaft mit UP Fiber an, um operative Dienstleistungen für die Festnetzanlagen von AT&T bereitzustellen.

Positive
  • Record revenue of $17M in 2024, up 6.5% from 2023
  • EBITDA increased to $8.7M in 2024 from $8.1M in 2023
  • Completed $10M fiber infrastructure investment covering 100+ miles and 2,900 new passings
  • Secured $20M term loan from NCSC at favorable 5.5% interest rate
  • New Operating Services Agreement with UP Fiber to generate additional revenue
  • Ahead of schedule on E-ACAM deployment, reaching 50% of required locations a year early
  • Broadband revenue grew to $3.4M from $3.2M
Negative
  • Net income declined to $3.9M from $4.3M in 2023
  • Operating income decreased to $5.8M from $6.1M
  • Earnings per share dropped to $1.21 from $1.36
  • $900K increase in depreciation expense
  • Loss of voice customers to competing fiber-based Internet provider
  • Potential E-ACAM funding uncertainty due to pending Supreme Court review
  • High capital requirements with up to $16M matching investment needed for RC3 grant projects

TRAVERSE CITY, Mich., April 29, 2025 (GLOBE NEWSWIRE) -- MachTen, Inc. (OTC: MACT) today announced financial results for the full year ended December 31, 2024, and the first quarter of 2025.

Financial HighlightsYear Ended
(In thousands, except per share data)December 31, 2024December 31, 2023
Operating revenue$16,976$15,939
Operating income$5,750$6,072
Net income$3,874$4,317
Earnings per share$1.21$1.36
EBITDA$8,757$8,102
Quarter Ended
March 31, 2025March 31, 2024
Operating revenue$4,139$4,176
Operating income$1,144$1,126
Net income$594$597
Earnings per share$0.19$0.19
EBITDA$2,035$1,906

“We achieved record revenue and EBITDA in 2024, a year of significant investment and transition for MachTen, with continued momentum to start 2025,� commented Dan Miller, Chief Executive Officer.

“Our team deserves credit for overcoming considerable challenges in our first year as a standalone company, including the implementation of new systems and processes for accelerating the growth of our fiber-based network. We are now well along the path towards building the infrastructure required to become the most reliable provider of broadband communications in the communities we serve, and to surfacing long-term value for shareholders.�

Revenue for the full year 2024 was approximately $17 million vs. $15.9 million in the prior year, primarily attributable to an increase in support from Enhanced-ACAM (“E-ACAM�).

Broadband revenue increased to $3.4 million from $3.2 million in the prior year, offset by a loss of voice customers in several wire centers in which the electric company began offering fiber-based Internet.

Operating profit was $5.8 million in 2024, compared to $6.1 million 2023, largely attributable to a $900 thousand increase in depreciation expense.

Net income was $3.9 million, down from $4.3 million in the prior year. In addition to higher depreciation, interest expense increased $150 thousand, and operating expense was also marginally higher to reflect the addition of staff and software.

EBITDA was $8.7 million in 2024 vs. $8.1 million in the prior year.

Capital Investments & Operational Highlights

MachTen invested nearly $10 million in new fiber infrastructure in 2024, spanning more than 100 miles and 2,900 new passings. An additional 60 miles and 1,300 passings were completed in the first quarter of 2025, despite difficult weather conditions.

Key 2024 projects included:

  • St. Ignace: 50-mile FTTH (Fiber-to-the-Home) network passing over 2,000 locations, with early adoption by more than 300 customers.

  • Wallace and Carney Expansion: Completed a $4 million project funded by a Connecting Michigan Communities 3.0 grant.

As of March 31, 2025, Michigan Broadband has approximately 1,600 fiber broadband customers across 10k passings, with the take rate expected to improve throughout 2025.

Construction began in late 2024 on the ReConnect America 3 (“RC3�) grant projects that will ultimately bring improved connectivity to more than 2,500 locations over 500 miles. These grants were awarded by the United States Department of Agriculture’s Rural Utility Service and will impact areas that are considered amongst the highest cost to serve. On a combined basis, the RC3 grant projects may have a total cost of approximately $85 million over a 5-year period, inclusive of a matching investment from MachTen of up to $16 million. A 10-mile project in Donken was completed in January, and another 10-mile project in Grace Harbor is expected to commence in May.

Most significantly, the deployment of broadband services to more than 9,000 locations supported by the E-ACAM will accelerate in 2025. It is anticipated that fiber-based service will reach almost 3,500 new passings in 2025, bringing total E-ACAM locations served to almost 4,500, or 50% of the amount required by the end of 2026. This puts Michigan Broadband a year ahead of schedule.

We continue to monitor potential developments related to E-ACAM funding in light of the recent ruling in the 5th Circuit Court of Appeals. The ruling impacts the funding mechanism and oversight of the Universal Service Fund and will be reviewed by the US Supreme Court in 2025.

Michigan Broadband continues to invest significant capital in equipment, software, and personnel to update systems and processes following its spin-off from LICT Corporation. This includes an upgrade to the switching and routing environment that began in early 2025, and will allow for greater reliability, throughput and redundancy as fiber-based service replaces copper-based DSL.

Balance Sheet

As of March 31, 2025, cash and cash equivalents were $1.9 million.

MachTen executed a $20 million term loan from the National Cooperative Services Corporation (NCSC) in August 2024, of which $16 million has been drawn down at an interest rate of approximately 5.5%.

Strategic Opportunities

On March 19, 2025, it was announced that Michigan Broadband will enter into an Operating Services Agreement with UP Fiber, Inc. in connection with its acquisition of wireline assets from AT&T. As a result of this partnership, Michigan Broadband will provide customer service, billing, sales, marketing and other administrative support that will generate additional revenue and improve profitability.

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 that have been posted to

MachTen, Inc. and Subsidiaries
Condensed Consolidated Statements of Financial Condition
(in thousands, except per share data)
March 31,December 31, December 31,
202520242023
(Unaudited)(Unaudited)(Audited)
Assets
Cash and cash equivalents$1,972$1,683$1,533
Accounts receivable1,0461,0611,555
Materials and supplies2,9923,0132,276
Other current assets621379332
Current assets$6,631$6,136$5,696
Property, plant and equipment, net33,59632,69725,725
Right-of-use assets, net544544679
Goodwill100100100
Other noncurrent assets105129256
Total assets$40,976$39,606$32,456
Liabilities and Shareholders' Equity
Current liabilities:
Trade accounts payable$2,127$1,991$2,020
Note payable to LICT--15,000
Accrued liabilities2,9072,268386
Current operating lease liability606078
Total current liabilities5,0954,31917,484
Deferred income taxes2,8512,8522,864
Term Loan (NCSC)16,00016,000-
Long term operating lease liability572572644
Other noncurrent liabilities162159147
Total Long-Term Liabilities19,58519,5833,655
Shareholders' equity
Common Stock333
Preferred Stock514514-
Additional paid-in capital10,53010,53010,530
Unearned Compensation(405)(405)(405)
Retained earnings5,6565,0621,189
Total shareholders' equity16,29815,70411,317
Total liabilities and shareholders' equity$40,978$39,606$32,456
Basic shares outstanding3,1923,1923,172


MachTen, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)
12 Months Ended
Dec 31, 2024Dec 31, 2023
Operating Revenue:
Regulated Revenue$12,922$12,138
Broadband3,3703,173
Video & Other684628
Total operating revenue16,97615,939
Operating Costs:
Cost of revenue5,9615,765
General and administrative2,2582,072
Depreciation and accretion3,0072,030
Total costs11,2269,867
Operating income5,7506,072
Other Income (Expense):
Interest expense(503)(350)
Investment income1536
Total non-operating income / (loss)(488)(314)
Income before provision for income taxes5,2625,758
Provision for income taxes1,3881,441
Net income$3,874$4,317
Earnings per share attributable to common stockholders:
Basic$1.21$1.36
Diluted$1.18$1.32
Weighted average shares outstanding:
Basic3,1923,172
Diluted3,2723,272


MachTen, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)
3 Months Ended
Mar 31, 2025Mar 31, 2024
Operating Revenue:
Regulated Revenue$3,162$3,208
Broadband812801
Video & Other164167
Total operating revenue4,1384,176
Operating Costs:
Cost of revenue1,4791,614
General and administrative625656
Depreciation and accretion891780
Total costs2,9953,050
Operating income1,1431,126
Other Income (Expense):
Interest expense(222)(255)
Investment income55
Total non-operating income / (loss)(217)(250)
Income before provision for income taxes926876
Provision for income taxes333279
Net income$593$597
Earnings per share attributable to common stockholders:
Basic$0.19$0.19
Diluted$0.18$0.18
Weighted average shares outstanding:
Basic3,1923,172
Diluted3,2723,272

EBITDA

EBITDA is an established non-GAAP financial measure of operating performance and liquidity that is commonly reported and widely used by analysts, investors, and other interested parties in the telecommunications industry because it eliminates many differences in financial, capitalization, and tax structures. We believe that EBITDA trends are a valuable indicator of whether our operations are able to produce sufficient operating cash flow to fund working capital needs, service debt obligations, and fund capital expenditures.

EBITDA is calculated as Operating Profit from Continuing Operations plus depreciation and amortization expense and corporate expenses.

EBITDA Reconciliation12 Months Ended
December 31, 2024December 31, 2023
Operating Profit$5,750$6,072
Depreciation & Amortization3,0072,030
Total EBITDA8,7578,102


EBITDA Reconciliation3 Months Ended
March 31, 2025March 31, 2024
Operating Profit$1,143$1,126
Depreciation & Amortization891780
Total EBITDA2,0341,906


Contact:Dan Miller
Chief Executive Officer
(914) 921-5193

FAQ

How much revenue did MachTen (MACT) generate in 2024?

MachTen (MACT) generated $17 million in revenue for the full year 2024, up from $15.9 million in 2023, primarily due to increased Enhanced-ACAM support.

What is MachTen's (MACT) fiber expansion plan for 2025?

MachTen plans to reach 3,500 new fiber passings in 2025 through E-ACAM support, bringing total E-ACAM locations served to 4,500, putting them a year ahead of schedule.

How much did MachTen (MACT) invest in fiber infrastructure during 2024?

MachTen invested nearly $10 million in new fiber infrastructure in 2024, building over 100 miles of network and reaching 2,900 new passings.

What is MachTen's (MACT) EBITDA performance for Q1 2025?

MachTen reported EBITDA of $2.035 million for Q1 2025, showing improvement from $1.906 million in Q1 2024.

How will the UP Fiber partnership affect MachTen (MACT) operations?

Through an Operating Services Agreement announced March 19, 2025, MachTen will provide customer service, billing, sales, marketing and administrative support to UP Fiber, expected to generate additional revenue and improve profitability.
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