This article first appeared on GuruFocus .
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Comparable EBITDA:Increased 17% sequentially from the first quarter.
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Enterprise Segment Revenue:Stable year-over-year; new recurring contracts increased 38% sequentially.
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Wholesale Segment Revenue:Achieved an 18% sequential increase.
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Government Segment Recurring Revenue:Grew 34% in the second quarter.
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Second Quarter Revenue:Decreased 3% year-over-year.
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IT and Cybersecurity Revenue:Increased 5% year-over-year.
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Telecom Revenue:Decreased 1% year-over-year.
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Voice Revenue:Declined 12% year-over-year.
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Government Segment Revenue:Declined 6% year-over-year.
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Wholesale Infrastructure Revenue:Declined 13% year-over-year.
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Gross Margin:Reached 72%, down from 73% in the prior year's quarter.
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EBITDA:MXN862 million, a 10% decline compared to the second quarter of 2025.
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Comparable EBITDA Margin:29% for the quarter, compared to 32% a year ago.
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CapEx:$19 million, equivalent to 11% of total revenues.
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Cash Balance:$38 million at the end of the second quarter.
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Free Cash Flow:Positive $35 million in the quarter.
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Net Debt:$472 million, with a net debt to comparable EBITDA ratio of 2.5 times.
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Release Date: July 23, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Comparable EBITDA increased by 17% sequentially, indicating an improving trend.
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Enterprise segment showed a recovery with a 38% sequential increase in new recurring contracts.
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The Wholesale segment achieved an 18% sequential increase in revenues, supported by new high-capacity dark fiber contracts.
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Recurring revenues in the Government segment grew by 34%, offsetting declines in non-recurring contracts.
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Axtel's AI strategy, including partnerships and internal initiatives, is expected to enhance operational efficiency and customer experience.
Negative Points
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Second quarter revenues decreased by 3% year-over-year, primarily due to lower revenues in the Wholesale and Government segments.
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EBITDA for the quarter declined by 10% compared to the second quarter of 2025.
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Telecom revenues decreased by 1% year-over-year, mainly due to lower collaboration solutions revenue.
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Voice revenues declined by 12%, reflecting a shift from traditional voice services to digital communication solutions.
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Net debt increased, resulting in a net debt to comparable EBITDA ratio of 2.5 times compared to 2.3 times a year ago.
Q & A Highlights
Q: Are there any changes to revenue and free cash flow guidance for the year? How is hyperscaler activity in Queretaro impacting Axnet? A: Adrian de los Santos Escobedo, CFO : The full-year guidance remains challenging due to first-semester results, but better trends in the Enterprise segment and potential Government projects could improve second-semester performance. Free cash flow is expected to be more stable than revenues and EBITDA. Armando de la Pena Gonzalez, CEO : Opportunities with hyperscalers in Queretaro are promising, with potential contracts expected to close by the end of the third or beginning of the fourth quarter, positively impacting Axnet.
Q: Should we expect efficiency gains from headcount reductions to become more visible in the EBITDA margin during the second half? A: Adrian de los Santos Escobedo, CFO : The lower EBITDA margin was mainly due to the mix of recurring and non-recurring revenues. We expect more recurring revenues in upcoming quarters, which should improve margins. Armando de la Pena Gonzalez, CEO : AI solutions are being implemented to optimize labor-intensive processes, which should also contribute to lower expenses and improved margins in the third and fourth quarters.
Q: What is Axtel's stance on the upcoming CRT spectrum auction for private networks? A: Armando de la Pena Gonzalez, CEO : Axtel is analyzing the opportunity to participate in the spectrum auction. The decision will depend on the convenience and pricing of the spectrum. It presents a potential opportunity for enterprise customers in sectors like mining and automotive.
Q: Has the refinancing process been finalized, and how will it impact interest expenses? A: Adrian de los Santos Escobedo, CFO : The refinancing should conclude by the third quarter. While there are no net savings on interest expenses due to increased peso-denominated debt, the refinancing aligns debt with cash flow generation, improving the balance sheet.
Q: Could shareholders expect a more aggressive dividend policy in 2027? A: Adrian de los Santos Escobedo, CFO : There is potential for a larger dividend distribution due to significant cash flow generation and good leverage. However, this will be discussed and approved by the Board and shareholders next year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
