LICT Corp Expands Iowa Broadband, Posts Q1 Revenue Growth

By John Damon

LICT Corporation, a broadband and voice services provider operating in Iowa, reported a 3.2% increase in first quarter 2026 revenues, reaching $35.7 million. The company continues to expand its fiber optic footprint in rural communities, adding over 100 miles of fiber infrastructure and pursuing major new construction contracts to close the digital divide.

How did LICT Corporation perform financially in Q1 2026?

LICT saw steady top-line growth during the first quarter of 2026. Total revenues climbed to $35.7 million, up from $34.6 million during the same period in 2025. Non-regulated revenues led the way, rising 4.0% to $20.2 million, driven largely by broadband and construction gains.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by $0.2 million, reaching $14.0 million. However, net income dropped to $1.8 million, down from $4.1 million in 2025. The company attributed this 56.1% decline primarily to $1.2 million in unrealized investment losses, alongside higher depreciation and operating costs tied to its aggressive network expansion.

Despite higher operating costs, LICT benefited from pro-growth tax policies. The company recorded a $0.9 million decrease in its provision for income taxes, reflecting tax benefits from 100% bonus depreciation on qualifying capital expenditures. This allows businesses to write off the full cost of eligible assets immediately, fueling continued infrastructure investment.

What does broadband expansion look like for Iowa and rural communities?

For Iowans, the most impactful news centers on infrastructure. LICT owned and operated 8,286 miles of fiber optic cable by the end of March 2026, an increase of 102 miles since December 2025. The company also operates hundreds of towers and holds 301 spectrum licenses, reinforcing its commitment to connecting rural markets.

Broadband services now account for roughly two-thirds of LICT's total revenue generating units, totaling 50,939 connections. While some fixed wireless customers transitioned to the company's faster fiber network, overall broadband connections remained stable.

Capital expenditures hit $14.1 million for the quarter, focusing on E-ACAM broadband infrastructure and early-stage activities for ReConnect III and IV programs. LICT also received $4.5 million in grant reimbursements to support these rural expansion initiatives.

Is LICT positioning itself for future growth?

LICT is actively laying the groundwork for significant long-term projects. A company subsidiary is currently in talks with a middle-mile fiber provider regarding three contracts to construct approximately 237 miles of fiber. If finalized, these agreements could generate over $60 million in revenue recognized between 2026 and early 2029.

This expansion would also grant LICT access to more than 60,000 new passings outside its current service territories, opening doors for future subscriber growth without relying on government overreach.

To fund these initiatives, LICT is negotiating with its lender to increase its revolving credit facility from $100 million to $150 million. The company is also seeking to extend $7.6 million in seller notes for an additional three years at a fixed 6% interest rate. LICT maintained a net leverage ratio of 1.9x and remained compliant with all financial covenants as of March 31.

What is LICT Corporation's strategy moving forward?

LICT focuses on bringing advanced connectivity to rural areas and adjacent urban markets. By deploying fiber and fixed wireless infrastructure, the company aims to meet regulatory obligations while capturing market share. Management also estimates that complementary assets, including spectrum licenses and minority investments, hold a value exceeding $50 million.

Frequently Asked Questions about LICT Corporation's Q1 2026 Results

Did LICT Corporation's revenue increase in Q1 2026?

Yes, LICT Corporation's total revenue increased 3.2% year-over-year to $35.7 million in the first quarter of 2026.

Why did LICT's net income decrease in Q1 2026?

Net income fell 56.1% to $1.8 million primarily due to $1.2 million in unrealized investment losses and increased depreciation and operating costs from network expansion.

How many miles of fiber optic cable does LICT operate?

As of March 31, 2026, LICT owned and operated 8,286 miles of fiber optic cable, an increase of 102 miles from the end of 2025.