Atn International Inc.

Company Overview

Business Model: ATN International, Inc. provides digital infrastructure and communications services, primarily focusing on smaller, often rural or remote markets in the United States (western US and Alaska) and internationally (Bermuda and the Caribbean region). The company offers fixed and mobile telecommunications connectivity to residential, business, and government customers, as well as carrier communications services, including terrestrial and submarine fiber optic transport. A disciplined business transformation has focused on strengthening the operational foundation, optimizing cost structure, and prioritizing long-lived digital infrastructure assets to support sustainable cash flow generation.

Market Position: ATN International, Inc. has established a defensible market position in its target rural and remote markets by investing in durable network assets. The company leverages centralized management, technical, financial, regulatory, and marketing support to enhance local market operations, achieving greater economies of scale. In its International Telecom segment, the company serves approximately 149,300 broadband customers and 399,200 mobile subscribers as of December 31, 2025. Key competitive differentiators include the ability to deliver reliable, high-capacity backhaul across multiple provider footprints and offering full-service solutions in remote areas.

Recent Strategic Developments:

• Tower Portfolio Transaction: On February 11, 2026, ATN International, Inc. announced the sale of approximately 214 tower portfolio sites (the substantial majority of its Commnet tower portfolio) in the southwestern US to EIP Holdings IV, LLC, an affiliate of Everest Infrastructure Partners, Inc., for up to $297 million in cash. The transaction is expected to close in the second quarter of 2026 and includes master lease agreements for ATN International, Inc. to continue using space on the conveyed towers and a preferred backhaul agreement.
• Carrier Managed Services Expansion: Substantially completed the network build for AT&T Mobility, LLC under the FirstNet Agreement by December 31, 2025, and for Cellco Partnership d/b/a Verizon Wireless under the Verizon CMS Agreement by December 31, 2025, in the southwestern US. These agreements involve building and maintaining next-generation wireless services infrastructure.
• International Integration and Branding: During 2025, the company completed the integration and alignment of management across its international markets and unified branding under "One Communications" in Bermuda, Guyana, and the US Virgin Islands.
• Network Modernization and Expansion: Continued sustained investments in next-generation telecommunications infrastructure, including fiber and fiber-like services, in underserved markets. This includes migrating customers from legacy copper networks to fiber or fixed wireless in Guyana and expanding regional fiber and network assets in the western US.

Geographic Footprint: ATN International, Inc. operates in the United States (primarily western US and Alaska) and internationally, including Bermuda, the Cayman Islands, Guyana, and the US Virgin Islands.

• US Revenue (2025): 47.8% of total revenue
• International Revenue (2025): Guyana (17.3%), US Virgin Islands (12.4%), Bermuda (16.3%), Other Foreign Countries (6.2%)

Financial Performance

Revenue Analysis

Profitability Metrics (2025):

• Gross Margin: 56.3%
• Operating Margin: 3.9%
• Net Margin: -3.2%

Investment in Growth (2025):

• R&D Expenditure: Not explicitly disclosed.
• Capital Expenditures: $90.0 million (company-funded)
• Strategic Investments:
  • Disbursed $84.6 million for capital expenditures reimbursable under government programs, receiving $74.3 million in reimbursements.
  • Incurred $65.3 million in expenditures for the Replace and Remove Program, receiving $71.1 million in reimbursements.
  • Spent $37.3 million on construction obligations under tribal government grant programs (Tribal Broadband Connectivity Program and Rural Development Broadband ReConnect Program), receiving $35.3 million in funding.

Business Segment Analysis

International Telecom

Financial Performance (2025 vs 2024):

• Revenue: $381.9 million (+1.2% YoY)
• Operating Income: $67.0 million (-11.6% YoY)
• Operating Margin: 17.5%
• Key Growth Drivers: Primarily an increase of $4.1 million in revenue from ancillary services. Future growth expected from continued network upgrades, marketing efforts, conversion to higher-margin prepaid/postpaid plans, investments in fixed networks, and increased demand for cloud services and smart solutions. Growth in international travel could also boost Carrier Services revenue.

Product Portfolio:

• Fixed Services: High-speed broadband and data connectivity, voice services (local exchange, regional, long-distance, voice messaging), and video services (basic and tiered local/cable TV channels). Networks utilize fiber to the premises (fiber-optic and hybrid fiber coaxial cable) and sub-sea fiber optic cables for international connectivity.
• Mobility Services: Mobile, data, and voice services to retail and business customers, with a significant majority on prepay plans. Offers 4G (LTE) in all markets (except Cayman Islands) and significant 5G coverage in Bermuda and the US Virgin Islands.
• Carrier Services: International long-distance, roaming revenues, transport services, and access services to other telecommunications carriers.
• Managed Services: Information technology services, including network, application, infrastructure, and hosting services.

Market Dynamics: Operates in Bermuda, the Cayman Islands, Guyana, and the US Virgin Islands. Faces competition from Digicel, Liberty Latin America, and individual newer entrants. The company's breadth of services and regional strategy are key competitive strengths.

US Telecom

Financial Performance (2025 vs 2024):

• Revenue: $346.1 million (-1.6% YoY)
• Operating Loss: -$1.7 million (improved from -$44.4 million YoY)
• Operating Margin: -0.5%
• Key Growth Drivers: Increase in Construction revenue ($0.9 million) due to more sites completed, and Carrier Services revenue ($1.6 million). These gains were partially offset by a $4.1 million reduction in Fixed revenues (due to the conclusion of the Emergency Connectivity Fund and Affordable Connectivity Program in April 2024) and a $2.7 million decrease in Mobility revenue (due to cessation of retail mobility services). The improvement in operating loss was primarily due to a $35.3 million goodwill impairment in 2024 not recurring in 2025, and cost savings initiatives.

Product Portfolio:

• Fixed Services: Fiber broadband, fixed wireless access, digital subscriber line (DSL), and managed IT services to business, wholesale, and residential customers in Alaska and the western US. Operates extensive terrestrial and submarine fiber optic cable systems (AKORN® and Northstar) in Alaska.
• Carrier Services: Wholesale voice and internet connectivity in Alaska; wholesale mobile voice and data roaming, transport, tower rental, backhaul, and maintenance services in the western US. Includes services under the FirstNet Agreement (with AT&T Mobility, LLC) and the Verizon CMS Agreement (with Cellco Partnership d/b/a Verizon Wireless).
• Managed Services: Information technology services.

Market Dynamics: Operates in Alaska and parts of the western US (Arizona, Nevada, New Mexico, Colorado, and Utah). In Alaska, competes with GCI, AT&T Mobility, LLC, and Matanuska Telephone Association, Inc. In the western US, faces competition from Incumbent Local Exchange Carrier providers (e.g., AT&T, Comcast, Windstream, Lumen, Frontier), national fiber providers (e.g., Zayo), and emerging LEO satellite technologies (e.g., Starlink). The company's ability to offer full-service solutions across multiple service areas and remote sites is a key differentiator.

Capital Allocation Strategy

Shareholder Returns (2025):

• Share Repurchases: $0 (no repurchases under the 2023 Repurchase Plan; $15.0 million remains authorized).
• Dividend Payments: $16.2 million declared.
• Dividend Yield: Not disclosed.
• Future Capital Return Commitments: $15.0 million authorized for share repurchases under the 2023 Repurchase Plan.

Balance Sheet Position (as of December 31, 2025):

• Cash and Equivalents: $117.2 million (includes $102.5 million cash and cash equivalents, $14.7 million restricted cash).
• Total Debt: $565.2 million (book value).
• Net Cash Position: -$448.0 million (net debt).
• Credit Rating: Not disclosed.
• Debt Maturity Profile (amounts in thousands): | Amounts Maturing During | US Telecom | International Telecom | Corporate and Other | Total Debt | Customer Receivable Credit Facility | |---|---|---|---|---|---| | Year ending December 31, 2026 | $5,471 | $2,250 | $8,125 | $15,846 | $8,784 | | Year ending December 31, 2027 | $13,096 | $4,500 | $9,750 | $27,346 | $9,208 | | Year ending December 31, 2028 | $18,858 | $4,500 | $67,370 | $90,728 | $9,657 | | Year ending December 31, 2029 | $292,249 | $5,250 | $93,438 | $390,937 | $6,274 | | Year ending December 31, 2030 | $3,172 | $6,000 | — | $9,172 | $2,989 | | Thereafter | $2,985 | $37,500 | — | $40,485 | $2,958 | | **Total** | **$335,831** | **$60,000** | **$178,683** | **$574,514** | **$39,870** |

Cash Flow Generation (2025):

• Operating Cash Flow: $133.9 million
• Free Cash Flow: $43.9 million (Operating Cash Flow less company-funded Capital Expenditures)
• Cash Conversion Metrics: Not explicitly disclosed.

Operational Excellence

Production & Service Model: ATN International, Inc. focuses on providing digital infrastructure and communications services in rural and remote markets. The company's strategy involves building durable network assets and leveraging centralized management, technical, financial, regulatory, and marketing support for its operating subsidiaries. Services are delivered through fiber or fiber-like technologies, with ongoing network modernization and expansion efforts.

Supply Chain Architecture: Key Suppliers & Partners:

• Carrier Partners: AT&T Mobility, LLC (FirstNet Agreement), Cellco Partnership d/b/a Verizon Wireless (Verizon CMS Agreement) for network build and managed services.
• Financial Partners: CoBank, ACB (2023 CoBank Credit Facility, Receivables Credit Facility), Bank of America, N.A. (2024 Alaska Credit Facility), Inter-American Investment Corporation (2025 IDB Credit Facilities), National Cooperative Services Corporation (OneVI Debt).
• Government Agencies: Federal Communication Commission (Replace and Remove Program, Universal Service Fund, E-rate, RHC Program, CAF II, E-ACAM, RDOF), National Telecommunications and Information Administration (BEAD grants), Rural Utilities Service (Sacred Wind Term Debt).
• Equipment/Services: Relies on a limited number of suppliers for network infrastructure, mobile handsets, and back-office IT systems, with a portion sourced internationally.

Facility Network (as of December 31, 2025):

• Corporate Headquarters: 500 Cummings Center, Beverly, Massachusetts.
• Office Space: 301,000 sq ft (International Telecom), 247,000 sq ft (US Telecom), 21,000 sq ft (Corporate).
• Retail Stores: 21 (International Telecom), 0 (US Telecom).
• Technical Operations: 2,023,000 sq ft (International Telecom), 291,000 sq ft (US Telecom).
• Network Infrastructure: Globally owns approximately 482 towers, leases approximately 464 towers, and has 4 switch locations within rented facilities.

Operational Metrics (as of December 31, 2025):

• International Telecom Broadband Customers: Approximately 149,300 (92% with access to high-speed networks).
• International Telecom Mobile Subscribers: Approximately 399,200.
• FirstNet Agreement Build: Substantially completed.
• Verizon CMS Agreement Build: Substantially completed.

Market Access & Customer Relationships

Go-to-Market Strategy: ATN International, Inc. employs a multi-channel approach to reach its diverse customer base. Distribution Channels:

• Direct Sales: Utilizes direct and inside sales teams, particularly for wholesale transport customers (communications carriers).
• Retail Presence: Operates 21 company-owned and pop-up retail stores in its International Telecom segment.
• Channel Partners: Engages authorized dealers and agents.
• Digital Platforms: Leverages digital channels for sales and marketing.
• Bundling: Offers simplified bundling approaches, such as Brava service offerings, to enhance value proposition and brand position in international markets.

Customer Portfolio:

• Residential Customers: Provided fixed and mobile telecommunications connectivity.
• Business Customers: Offers fixed, mobile, and managed IT services, including high-capacity data networking, internet connectivity, voice communications, and IT services.
• Government Customers: Serves government entities with fixed, mobile, and managed services.
• Carrier Customers: Provides wholesale voice and internet connectivity, mobile voice and data roaming, transport, tower rental, backhaul, and maintenance services to national, regional, local, and international wireless carriers.
• Strategic Partnerships: Major carrier relationships include AT&T Mobility, LLC (FirstNet Agreement) and Cellco Partnership d/b/a Verizon Wireless (Verizon CMS Agreement).
• Customer Concentration: No individual customer accounted for more than 10% of consolidated revenue for the years ended December 31, 2025, and 2024.

Geographic Revenue Distribution (2025):

• US: 47.8% of total revenue
• Guyana: 17.3% of total revenue
• US Virgin Islands: 12.4% of total revenue
• Bermuda: 16.3% of total revenue
• Other Foreign Countries: 6.2% of total revenue
• Growth Markets: Focuses on underserved rural and remote markets, with ongoing investments in network infrastructure and services to drive growth.

Competitive Intelligence

Market Structure & Dynamics

Industry Characteristics: The telecommunications industry is characterized by rapid and significant technological changes, leading to the introduction of new delivery platforms (e.g., LEO satellite technologies like Starlink). Competition has intensified, contributing to a decline in prices for communication services. The company operates in markets with varying population trends, including declining or stagnant trends in some island markets like Bermuda.

Competitive Positioning Matrix:

Direct Competitors

Primary Competitors:

• In Alaska: GCI, AT&T Mobility, LLC, and smaller providers such as Matanuska Telephone Association, Inc.
• In the Western US: Incumbent Local Exchange Carrier providers (e.g., AT&T, Comcast, Windstream, Lumen, Frontier), national fiber providers (e.g., Zayo).
• In International Telecom Markets (Caribbean): Digicel, Liberty Latin America, and other smaller local providers. In the US Virgin Islands, also competes with one or more US national operators or mobile virtual network operators.

Emerging Competitive Threats:

• LEO Satellite Technologies: Companies like Starlink are offering direct-to-consumer products that provide a direct competitive alternative to ATN International, Inc.'s new fiber offerings in some markets.
• New Entrants & Capital Investment: Increased competition from new market entrants or heightened capital investment by existing competitors in their networks.

Competitive Response Strategy: ATN International, Inc.'s strategy is built around sustained investments in next-generation telecommunications infrastructure and services in underserved markets. This includes network modernization and expansion, optimizing operations to expand free cash flow, and a long-term capital allocation strategy. The company aims to upsell existing customers with new or higher-quality products while reducing operating expenses.

Risk Assessment Framework

Strategic & Market Risks

Market Dynamics:

• Technology Disruption: Rapid and significant technological changes, including the introduction of new telecom delivery platforms (e.g., LEO satellite technologies like Starlink), could adversely affect anticipated return on investment in fiber offerings. The company's use of AI technology is governed by internal policies to maintain security.
• Customer Concentration: While no single customer accounts for more than 10% of consolidated revenue, the business relies on major carrier customers (AT&T, Verizon) for significant contracts.
• Economic Downturn & Inflation: Ongoing global economic concerns over inflation, supply chain disruptions, and potential recession could increase operating expenses (raw materials, manufactured goods, energy, wages) and capital costs, impacting financial condition and cash flows.
• Population Trends: Declining or stagnant population trends in certain island markets (e.g., Bermuda) can exacerbate competitive pressures.

Operational & Execution Risks

Supply Chain Vulnerabilities:

• Supplier Dependency: Reliance on a limited number of key suppliers for network infrastructure, mobile handsets, and IT systems. Interruptions, price increases (tariffs, inflation), or delays could significantly impact subscriber/revenue growth and operating results.
• Geographic Concentration: Operations in areas prone to severe weather (hurricanes, blizzards, earthquakes) and limited emergency response resources, potentially delaying service restoration.
• Capacity Constraints: Aging physical infrastructure (Guyana, Alaska) and unreliable energy grids in some markets pose risks of network outages and increased energy costs.
• Talent Management: Difficulty in recruiting and retaining experienced management and technical personnel, particularly in small, remote markets with work visa restrictions.
• Government Funding & Permitting: Reliance on government funding programs (USF, Replace and Remove Program, construction grants) carries risks of non-compliance, clawbacks, changes in rules, or delays in funding. Administrative backlog in government environmental and real estate permitting can delay network expansion.

Financial & Regulatory Risks

Market & Financial Risks:

• Access to Capital: Tightening access to capital markets and increasing costs of capital could limit funding for future capital projects or inorganic growth opportunities.
• Debt Covenants: Credit facilities (2023 CoBank Credit Facility, 2024 Alaska Credit Facility, OneVI Debt) contain restrictive financial and other covenants (e.g., maximum Total Net Leverage Ratio, minimum Fixed Charge Coverage Ratio) that limit operating flexibility and could trigger acceleration of debt if breached.
• Pension Liabilities: Alaska Communications' participation in the Alaska Electrical Trust Funds (AEPF) multi-employer pension plan, which is not fully funded, could lead to increased contribution obligations or contingent withdrawal liability.
• Foreign Exchange: Exposure to fluctuations in foreign currencies, primarily the Guyana Dollar, can result in translation adjustments and remeasurement losses.

Regulatory & Compliance Risks:

• Regulatory Changes: Subject to US federal, state, local, and foreign government regulations, which are subject to change. New regulations (e.g., Bermuda market review, Guyana licensing framework) could impose restrictions (pricing, service obligations) or require significant unplanned costs.
• License Loss: Failure to renew or comply with construction/service requirements for wireless and telecommunications licenses (e.g., Guyana operating license renewal pending) could adversely affect service provision.
• Legal Proceedings: Ongoing litigation and regulatory disputes (e.g., Guyana spectrum fees, international bypass, tax claims, Bermuda market review appeal) could result in material adverse outcomes, fines, or penalties.

Geopolitical & External Risks

Geopolitical Exposure:

• Caribbean Instability: A substantial part of operations is in the Caribbean, with increasing US military presence. Escalation of military activity could lead to physical damage to infrastructure, workforce disruptions, changes to customer base, and macroeconomic risks (currency fluctuation, oil/gas prices, market instability).

Innovation & Technology Leadership

Research & Development Focus: ATN International, Inc. prioritizes continuous investment in next-generation telecommunications infrastructure and services. Core Technology Areas:

• Fiber & 5G Deployment: Significant focus on network modernization and expansion, including fiber-to-the-premises (FTTP) and hybrid fiber coaxial (HFC) networks, and expanding 5G coverage in Bermuda and the US Virgin Islands.
• Network Capacity & Reliability: Enhancing owned and leased transport facilities, regional fiber, and network asset footprint to provide higher capacity, reliability, and lower latency backhaul.
• Information Technology Platforms: Efficiently and cost-effectively upgrading networks and IT platforms to address rapid technological changes.
• AI Technologies: Limited approved use cases for AI technology, such as summarization, research, and transcription, with internal policies to maintain security.

Intellectual Property Portfolio:

• Patent Strategy: Not explicitly detailed.
• Licensing Programs: Holds various commercial mobile radio services (CMRS) licenses and fixed point-to-point microwave licenses issued by the FCC, with a strategy of renewal.
• IP Litigation: Not explicitly detailed beyond general legal proceedings.

Technology Partnerships:

• Strategic Alliances: Engaged in significant partnerships with major carriers, including AT&T Mobility, LLC (FirstNet Agreement for network build and maintenance) and Cellco Partnership d/b/a Verizon Wireless (Verizon CMS Agreement for network upgrades and services).

Leadership & Governance

Executive Leadership Team (as of March 16, 2026)

Leadership Continuity: The company relies heavily on local management teams for its subsidiary operating units and has consolidated certain key management roles in its international segment. Succession planning and leadership development initiatives are in place.

Board Composition (as of March 16, 2026):

• Executive Chairman: Michael T. Prior (served as President and CEO from 2005-2023, on Board since 2008).
• Independent Lead Director: Dr. Bernard J. Bulkin (on Board since 2016, member of Nominating and Corporate Governance and Audit Committees).
• Directors: April V. Henry (on Board since 2022, Chair of Compensation Committee), Derek G. Hudson (on Board since 2023, member of Audit and Compensation Committees), Patricia A. Jacobs (on Board since 2023, Chair of Nominating and Corporate Governance Committee, member of Compensation Committee), Pamela F. Lenehan (on Board since 2020, Chair of Audit Committee, member of Nominating and Corporate Governance Committee).
• Board Expertise: The board comprises individuals with diverse experience in telecommunications, technology, finance, and corporate governance.

Human Capital Strategy

Workforce Composition (as of December 31, 2025):

• Total Employees: Approximately 2,100 employees.
• Geographic Distribution: Approximately 700 employees in the US (including the US Virgin Islands) and approximately 1,400 employees in international subsidiaries.
• Skill Mix: Not explicitly detailed, but emphasizes the need for skilled personnel in complex communications equipment, networks, and systems.
• Union Representation: Approximately 26% of the total employee population is covered by contracts with various unions, primarily in Alaska and international markets (excluding the Cayman Islands). The company reports a good relationship with its unions.

Talent Management: Acquisition & Retention:

• Hiring Strategy: Relies heavily on local management teams with deep local expertise. Acknowledges challenges in attracting and retaining talent in small, remote markets due to government restrictions on work visas.
• Retention Metrics: Not explicitly disclosed, but the company offers benefits promoting wellness, personal care, a safe work environment, and career growth opportunities.
• Employee Value Proposition: Emphasizes a culture of commitment, respect, excellence, accountability, thoughtfulness, and empowerment. Utilizes performance development tools and employee engagement surveys to foster a connected and empowered workplace.

Diversity & Development:

• Diversity Metrics: Not explicitly disclosed, but the company strives to cultivate a dynamic working environment that fosters a greater understanding of differences and strengthens the company.
• Development Programs: Utilizes performance development tools for employees, focusing on skills development and manager performance. Has an internal training program to develop new talent and works with vendor and third-party training programs.
• Culture & Engagement: Fosters a culture of employee engagement through regular communication on company goals and milestones, and uses employee engagement surveys to inform long-term action plans for continuous improvement.

Environmental & Social Impact

Environmental Commitments: Climate Strategy:

• Infrastructure Resilience: Efforts are made to construct high-speed networks with durable materials and route redundancies designed to withstand the climate of the regions, including challenges such as high winds.
• Emissions Targets: Not explicitly disclosed.
• Carbon Neutrality: Not explicitly disclosed.
• Renewable Energy: Not explicitly disclosed, but the company previously had a renewable energy business operating under the "Vibrant" name in India.

Supply Chain Sustainability:

• Supplier Engagement: Not explicitly disclosed.
• Responsible Sourcing: Not explicitly disclosed.

Social Impact Initiatives:

• Community Investment: Mission to digitally empower people and communities, enabling them to connect with the world and thrive. Delivers essential communication technologies, including high-speed broadband, to rural and remote markets.
• Product Impact: Services are foundational, supporting access to healthcare, public safety infrastructure, education, and economic opportunity in underserved communities.
• Digital Divide: Dedicated to enhancing the use of technology in the various communities served, particularly in rural and remote areas.

Business Cyclicality & Seasonality

Demand Patterns:

• Seasonal Trends: Not explicitly disclosed.
• Economic Sensitivity: Operations and performance depend on worldwide economic conditions, which have been impacted by global concerns over inflation, supply chain disruptions, and potential recession. A decrease in tourism could negatively affect retail revenues in international markets.
• Industry Cycles: The telecommunications industry faces rapid technological changes and increased competition, contributing to price declines for services.

Planning & Forecasting: The company's ability to support multiple organic and inorganic growth opportunities is limited by liquidity resources and requires significant oversight. Inflation may result in build costs exceeding original budgets for fixed-budget carrier customer projects or government grants due to supply chain delays.

Regulatory Environment & Compliance

Regulatory Framework: Industry-Specific Regulations:

• US Federal Regulation: Regulated by the Federal Communication Commission (FCC) under the Communications Act of 1934, as amended, and the Telecommunications Act of 1996. Regulations cover disclosures, operational measures, regulatory payment obligations, broadband disclosures, broadband data collection, robocalls, privacy, 911/988 call routing, CALEA, and cybersecurity. Fixed services are subject to common carrier obligations, interconnection, and rate-of-return/price-cap regulation. Wireless services are governed by CMRS licenses, spectrum use, network construction, and public interest/safety obligations (E-911, emergency alerting, network reliability).
• US State and Territorial Regulation: Subject to state and local regulations (environmental, zoning, land use, privacy, consumer protection). Alaska Communications is regulated by the Regulatory Commission of Alaska (RCA). OneVI in the US Virgin Islands is regulated by the US Virgin Islands Public Service Commission (PSC) and receives tax benefits from the RTPark program.
• International Compliance: One Communications (Guyana) Inc. (OneGY) is regulated by the Guyana Public Utilities Commission and the Guyana Telecommunications Act of 2016. The Regulatory Authority of Bermuda (RA) is the primary regulator in Bermuda.

Trade & Export Controls:

• Export Restrictions: Not explicitly detailed beyond general supply chain risks from equipment sourced outside the US.
• Sanctions Compliance: Not explicitly detailed.

Legal Proceedings:

• Guyana Disputes: OneGY is involved in long-standing disputes regarding spectrum fees with the Telecommunications Authority (TA), international bypass lawsuits against Digicel, and tax claims with the Guyana Revenue Authority (GRA) dating back to 1991.
• RHC Program Settlement: Alaska Communications entered into a Consent Decree with the FCC Enforcement Bureau on May 8, 2024, agreeing to pay $6.3 million and a three-year compliance agreement related to its participation in the Rural Health Care Support Program.
• Bermuda Market Review: The Regulatory Authority of Bermuda determined ATN International, Inc. has significant market power in certain broadband and mobile services, assessing ex-ante remedies (wholesale obligations, price caps, reporting obligations). The company has appealed this determination, and a stay of implementation is in effect as of October 2025.
• Accrued Liabilities: As of December 31, 2025, the company accrued $16.1 million for probable adverse outcomes in these and other legal/regulatory matters.

Tax Strategy & Considerations

Tax Profile (2025):

• Effective Tax Rate: 15.2% (compared to 37.5% in 2024). This rate was primarily impacted by a $10.5 million benefit from the mix of income generated among foreign jurisdictions, an $8.0 million net expense from valuation allowances on deferred tax assets, and a $2.8 million expense from US and foreign nondeductible expenses.
• Geographic Tax Planning: The company's policy is to indefinitely reinvest the undistributed earnings of its foreign subsidiaries, with no additional provision for US income taxes on these earnings, expecting them to be substantially tax-free upon distribution due to the Tax Cuts and Jobs Act of 2017.
• Tax Reform Impact: The One Big Beautiful Bill Act (OBBBA), enacted in July 2025, had an immaterial impact on 2025 financial statements. The company is evaluating the impact of future provisions.
• Unrecognized Tax Benefits: As of December 31, 2025, the company had $43.8 million in unrecognized tax benefits (including interest and penalties).

Insurance & Risk Transfer

Risk Management Framework: ATN International, Inc. has a comprehensive cybersecurity risk management and strategy program, integrated into its overall enterprise risk management program. This program utilizes the National Institute of Standards and Technology Cybersecurity Framework (NIST) as a guide for identifying, assessing, and managing cybersecurity risks. The Audit Committee oversees management's implementation of this program, receiving frequent reports.

• Insurance Coverage: The company procures insurance coverage against severe weather and geological events, but cannot guarantee full funding for asset replacement or adequate compensation for all damages and economic losses.
• Risk Transfer Mechanisms: Not explicitly detailed beyond general insurance coverage.