Verizon(VZ) - 2025 Q2 - Quarterly Results

Q2 2025 Performance Overview Verizon reported strong Q2 2025 results, raising full-year guidance and emphasizing customer growth and network quality Key Highlights and CEO Statement Verizon achieved a strong Q2 2025, raising full-year guidance due to robust wireless service revenue and customer growth - Verizon raised its full-year 2025 financial guidance for adjusted EBITDA, adjusted EPS, and free cash flow following strong Q2 performance[1][3] - The company is focusing on deepening customer relationships through innovative products like myPlan, myHome, and a 3-year price lock guarantee, while also transforming customer service with AI-powered tools[2][3] - Verizon's network quality was recognized by J.D. Power for the 35th time, and RootMetrics named it the nation's best, fastest, and most reliable 5G network in its 1H 2025 awards[2] Q2 2025 Key Performance Indicators | Metric | Value | Note | | :--- | :--- | :--- | | Wireless Service Revenue | $20.9 billion | Industry-leading (YoY growth of 2.2%) | | Total Net Additions | >300,000 | Across mobility and broadband | | Consumer Postpaid Phone Gross Additions | Increased | Both sequentially and year-over-year | Financial Results Verizon demonstrated robust financial health in Q2 2025 with increased revenue, net income, and strong broadband growth Consolidated Financial Highlights Verizon's Q2 2025 consolidated financials show robust growth in revenue, net income, and adjusted EPS Consolidated Financial Performance (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | $34.5 billion | $32.8 billion | +5.2% | | Net Income | $5.1 billion | $4.7 billion | +8.9% | | Adjusted EBITDA | $12.8 billion | $12.3 billion | +4.1% | | EPS | $1.18 | $1.09 | +8.3% | | Adjusted EPS | $1.22 | $1.15 | +6.1% | Cash Flow Performance (First Half 2025 vs. First Half 2024) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Cash Flow from Operations | $16.8 billion | $16.6 billion | | Free Cash Flow | $8.8 billion | $8.5 billion | - Total unsecured debt decreased to $119.4 billion at the end of Q2 2025, down from $125.3 billion at the end of Q2 2024 The net unsecured debt to consolidated adjusted EBITDA ratio remained stable at 2.3 times[9] Broadband Performance Verizon achieved strong broadband growth in Q2 2025, driven by 293,000 net additions and FWA expansion - Delivered 293,000 total broadband net additions in Q2 2025[6] - Fixed wireless access (FWA) net additions were 278,000, growing the subscriber base to over 5.1 million The company is positioned to reach its target of 8 to 9 million FWA subscribers by 2028[9] - Total broadband connections reached over 12.9 million, a 12.2% increase year-over-year[9] - The company remains on track to achieve its goal of 650,000 new Fios passings in 2025[9] Segment Performance Verizon's segments show varied performance, with Consumer revenue growth and Business operational efficiency gains Verizon Consumer Consumer segment revenue grew 6.9% year-over-year, with improved postpaid phone net losses and ARPA growth Consumer Segment Financials (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $26.6 billion | $24.9 billion | +6.9% | | Wireless Service Revenue | $17.4 billion | $17.0 billion (recast) | +2.3% | | Operating Income | $7.6 billion | $7.6 billion | +0.5% | | Segment EBITDA | $11.2 billion | $11.0 billion | +2.1% | Consumer Segment Key Operating Metrics (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Wireless Postpaid Phone Net Losses | (51,000) | (109,000) | | Wireless Core Prepaid Net Additions | 50,000 | (12,000) | | Postpaid Phone Churn | 0.90% | 0.79% | | Postpaid ARPA | $147.50 | $144.15 | Verizon Business Business segment revenue slightly declined, but operating income and EBITDA significantly increased due to strong execution Business Segment Financials (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $7.3 billion | $7.3 billion | -0.3% | | Wireless Service Revenue | $3.6 billion | $3.5 billion | +1.6% | | Operating Income | $638 million | $500 million | +27.6% | | Segment EBITDA | $1.7 billion | $1.6 billion | +5.8% | Business Segment Key Operating Metrics (Q2 2025) | Metric | Q2 2025 | | :--- | :--- | | Wireless Retail Postpaid Net Additions | 65,000 | | Wireless Postpaid Phone Net Additions | 42,000 | | Postpaid Phone Churn | 1.26% | 2025 Outlook and Guidance Verizon has updated its full-year 2025 financial guidance, raising expectations for key profitability metrics Updated Full-Year 2025 Guidance Verizon raised its full-year 2025 guidance for adjusted EBITDA, adjusted EPS, and free cash flow, excluding Frontier acquisition Updated Full-Year 2025 Guidance | Metric | Revised 2025 Guidance | Original 2025 Guidance | | :--- | :--- | :--- | | Adjusted EBITDA Growth | 2.5% to 3.5% | - | | Adjusted EPS Growth | 1.0% to 3.0% | - | | Free Cash Flow | $19.5B to $20.5B | $17.5B to $18.5B | | Total Wireless Service Revenue Growth | 2.0% to 2.8% | - | | Capital Expenditures | $17.5B to $18.5B | $17.5B to $18.5B | - The 2025 financial guidance does not reflect any assumptions regarding the pending acquisition of Frontier[11] Financial Statements & Reconciliations This section provides detailed consolidated financial statements, including income, balance sheet, cash flow, and non-GAAP reconciliations Condensed Consolidated Statements of Income Q2 2025 income statement shows increased operating revenues, operating income, and net income attributable to Verizon Income Statement Summary (3 Months Ended June 30) | (in millions, except per share) | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Operating Revenues | $34,504 | $32,796 | 5.2% | | Operating Income | $8,172 | $7,818 | 4.5% | | Net income attributable to Verizon | $5,003 | $4,593 | 8.9% | | Diluted Earnings Per Common Share | $1.18 | $1.09 | 8.3% | Condensed Consolidated Balance Sheets Verizon's balance sheet as of June 30, 2025, reflects total assets of $383.3 billion and increased equity Balance Sheet Summary | (in millions) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total current assets | $38,846 | $40,523 | | Total assets | $383,285 | $384,711 | | Total current liabilities | $60,952 | $64,771 | | Long-term debt | $123,929 | $121,381 | | Total equity | $104,361 | $100,575 | Condensed Consolidated Statements of Cash Flows First half 2025 cash flow from operations increased to $16.8 billion, yielding $8.8 billion in free cash flow Cash Flow Summary (6 Months Ended June 30) | (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $16,757 | $16,569 | | Net cash used in investing activities | ($7,190) | ($9,110) | | Net cash used in financing activities | ($10,271) | ($7,062) | Supplemental Wireless Statistics Total wireless service revenue grew 2.2% to $20.9 billion, with 125.9 million retail postpaid connections Total Wireless Revenue (Q2 2025 vs Q2 2024) | (in millions) | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Wireless service | $20,948 | $20,506 | 2.2% | | Wireless equipment | $6,255 | $4,998 | 25.2% | | Total Wireless | $28,224 | $26,371 | 7.0% | Total Wireless Net Additions (Q2 2025) | (in thousands) | Q2 2025 Net Additions | | :--- | :--- | | Retail postpaid | 155 | | Retail postpaid phone | (9) | | Retail core prepaid | 50 | Non-GAAP Reconciliations This section reconciles non-GAAP measures, including Adjusted EBITDA, Adjusted EPS, and Free Cash Flow - Consolidated Adjusted EBITDA for Q2 2025 was $12.8 billion, compared to $12.3 billion in Q2 2024[44] - The Net Unsecured Debt to Consolidated Adjusted EBITDA (LTM) ratio was 2.3x as of June 30, 2025, stable with the end of 2024[48] - Q2 2025 Adjusted EPS of $1.22 excludes after-tax impacts of $0.03 per share from amortization of acquisition-related intangible assets[49] - Free cash flow for the first six months of 2025 was $8.8 billion, an increase from $8.5 billion in the prior-year period[51]