ABOUT THE COMPANY

Rural Telecommunications Infrastructure Across Eight States

LICT Corporation is a publicly traded holding company that acquires and operates regulated telecommunications subsidiaries serving rural markets. The company provides broadband, voice and video services through six operating subsidiaries — functioning as the primary carrier in each service territory.

2025

141.1 MILLION

REVENUE

2025 EBITDA

$56.4 MILLION

FROM OPERATIONS

grants

$157.5 MILLION

build out expansion

Subsidiaries

ACROSS 8 STATES

TOTAL

63K

PASSINGS

revenue generating

76.6K

units

Growth Strategy

LICT's growth strategy is based on three pillars that drive value creation: network and service expansion, government programs and mergers and acquisitions.

Network Expansion Through Broadband Deployment & Subscriber Growth

Broadband services remain the primary growth driver of LICT's telecommunications operations. We are mid-cycle in our growth strategy and focused on a network construction expansion program. Key metrics of our continuing success include:

Growing fiber optic cable miles
Increasing total broadband connections
Expanding copper cable and coaxial miles
Developing and operating cell towers
Boosting total voice lines, video subscribers, hosted voice seats and spectrum licenses

Government Programs

LICT benefits from federal and state programs that support the expansion of high-speed broadband infrastructure in rural markets. Independently, each LICT subsidiary maintains stand-alone regulatory relationships and an ETC designation within their respective state jurisdiction. Regulated revenue programs include:

The FCC's Universal Service Fund (USF) E-ACAM program is a bi-partisan revenue guarantee plan running through 2038, delivering an aggregate of $542 million in revenue to LICT through 2038.
USDA ReConnect III and IV Grant Programs provide federal broadband funding in California, Iowa, Kansas and New Mexico — grants received or underway totaling $157 million

Mergers & Acquisitions

LICT follows a disciplined merger and acquisition strategy. We look for similar or ancillary regulated industries, companies that are attractively valued with quality management, and in a financial position to be accretive and provide consistent earnings and minimal debt. LICT has completed 38 acquisitions since 1989, most recently Manti Telephone Company and its partner companies.

Minimum $5 million pre-tax earnings
Consistent earning power with good return on equity
Little or no debt; management already in place
Regulated or similar industries: telecom, natural gas, water, electric
38 acquisitions completed since 1989

Returning Cash to Shareholders & Local Communities

LICT management is committed to returning cash to shareholders and making donations to charities in need. The company's current shareholder repurchase program began in 2019 and through December 31, 2025, over 4,000 shares have been repurchased, over $75 million returned to our shareholders. Through a unique Shareholder Designated Charitable Contribution Program that began in 2016, LICT has contributed more than $11 million to 501(c)(3) charities designated by shareholders.

Why LICT

LICT offers concentrated exposure to regulated rural telecommunications infrastructure — an asset class characterized by high barriers to competitive entry, recurring federal revenue support and a multi-year capital deployment cycle funded substantially by non-dilutive grant awards.

Dual Revenue Structure

Subscription revenue from residential and commercial customers is supplemented by $40.4 million in annual E-ACAM disbursements — a USF program providing cost-model-based support tied to network obligations.

Non-Dilutive Capital Acceleration

LICT was awarded $157.5 million of USDA ReConnect grants to fund fiber network construction with no equity dilution. Grant-funded buildouts expand the asset base, increase the addressable subscriber pool, and improve long-term ARPU at substantially reduced capital cost to the holding company.

Structural Competitive Barriers

Rural study areas are economically unattractive for overbuilders. Per-subscriber construction cost in low-density markets effectively forecloses competitive network deployment by national carriers. LICT subsidiaries operate with entrenched, durable market positions in their service territories.

Favorable Policy Environment

USDA, FCC and state broadband funding programs represent a sustained, bipartisan capital cycle for rural network infrastructure. LICT's incumbent carrier status and ETC designations position its subsidiaries as primary beneficiaries of continued federal and state broadband investment.

Conservative Capital Structure

LICT maintains a disciplined balance sheet. The $100 million CoBank facility provides acquisition liquidity without the leverage profile common to infrastructure rollup strategies. Management has historically avoided dilutive equity issuance and maintained operational focus across economic cycles.

Demonstrated EBITDA Expansion

EBITDA of $13.9 million in Q4 2025 reflects 9% year-over-year growth — driven by network investment returns, acquired property contribution and operating leverage. The margin expansion trajectory supports long-term cash flow required for further investments.