AT&T(T) - 2025 Q2 - Quarterly Results

Consolidated Financial Statements Consolidated Statements of Income In Q2 2025, AT&T's total operating revenues grew 3.5% year-over-year to $30.8 billion, driven by a 15.9% increase in equipment revenue, with operating income rising 12.9% to $6.5 billion and diluted EPS reaching $0.62 Q2 2025 vs Q2 2024 Income Statement Highlights (in millions, except EPS) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Operating Revenues | $30,847 | $29,797 | 3.5% | | Operating Income | $6,501 | $5,760 | 12.9% | | Net Income Attributable to AT&T | $4,500 | $3,597 | 25.1% | | Diluted EPS | $0.62 | $0.49 | 26.5% | Six-Month 2025 vs 2024 Income Statement Highlights (in millions, except EPS) | Metric | Six-Month 2025 | Six-Month 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Operating Revenues | $61,473 | $59,825 | 2.8% | | Operating Income | $12,255 | $11,607 | 5.6% | | Net Income Attributable to AT&T | $8,851 | $7,042 | 25.7% | | Diluted EPS | $1.22 | $0.96 | 27.1% | Consolidated Balance Sheets As of June 30, 2025, total assets increased to $405.5 billion from $394.8 billion at year-end 2024, primarily driven by a significant increase in cash and cash equivalents, while total liabilities also grew, with long-term debt rising to $123.1 billion Balance Sheet Summary (in millions) | Metric | Jun. 30, 2025 | Dec. 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $10,499 | $3,298 | | Total Current Assets | $39,306 | $31,168 | | Total Assets | $405,491 | $394,795 | | Long-Term Debt | $123,057 | $118,443 | | Total Liabilities | $284,094 | $276,550 | | Total Stockholders' Equity | $121,394 | $118,245 | Consolidated Statements of Cash Flows For the first six months of 2025, net cash from operating activities increased to $18.8 billion from $16.6 billion year-over-year, aided by higher net income, while net cash used in financing activities significantly decreased to $0.6 billion from $13.3 billion Six-Month Cash Flow Summary (in millions) | Cash Flow Activity | Six-Month 2025 | Six-Month 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $18,812 | $16,640 | | Net Cash Used in Investing Activities | $(11,044) | $(6,977) | | Net Cash Used in Financing Activities | $(598) | $(13,293) | | Net increase (decrease) in cash | $7,170 | $(3,630) | Consolidated Supplementary Data For the first six months of 2025, capital expenditures increased by 13.0% to $9.2 billion, while the company maintained its quarterly dividend and saw a 5.8% decrease in total employees Six-Month 2025 vs 2024 Supplementary Data | Metric | Six-Month 2025 | Six-Month 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Capital Expenditures (millions) | $9,174 | $8,118 | 13.0% | | Dividends Declared per Common Share | $0.5550 | $0.5550 | 0.0% | | Total Employees | 137,550 | 146,040 | -5.8% | Segment Results Communications Segment The Communications segment, comprising Mobility, Business Wireline, and Consumer Wireline, saw Q2 2025 revenues grow 3.9% YoY to $29.7 billion, with strong growth in Mobility and Consumer Wireline offsetting a significant decline in Business Wireline - The Communications segment provides wireless and wireline telecom and broadband services to U.S. consumers and businesses globally, organized into Mobility, Business Wireline, and Consumer Wireline reporting units[6] Q2 2025 Communications Segment Performance (in millions) | Reporting Unit | Revenues | % Change YoY | Operating Income | % Change YoY | | :--- | :--- | :--- | :--- | :--- | | Mobility | $21,845 | 6.7% | $6,931 | 3.2% | | Business Wireline | $4,313 | -9.3% | $(201) | — | | Consumer Wireline | $3,541 | 5.8% | $335 | 82.1% | | Total Segment | $29,699 | 3.9% | $7,065 | 0.9% | Mobility Mobility revenue grew 6.7% in Q2 2025 to $21.8 billion, driven by a 3.5% increase in service revenue and an 18.8% increase in equipment revenue, despite a slight decrease in postpaid phone net additions and an increase in churn Q2 2025 Mobility Financials (in millions) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Service Revenue | $16,853 | $16,277 | 3.5% | | Equipment Revenue | $4,992 | $4,203 | 18.8% | | Total Operating Revenues | $21,845 | $20,480 | 6.7% | | Operating Income | $6,931 | $6,719 | 3.2% | Q2 2025 Mobility Operating Data | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Postpaid Phone Net Additions (000s) | 401 | 419 | (4.3)% | | Postpaid Phone-Only Churn | 0.87% | 0.70% | 17 BP | Business Wireline Business Wireline revenues declined 9.3% in Q2 2025 to $4.3 billion, driven by a persistent 17.3% drop in legacy services, resulting in an operating loss of $201 million for the quarter Q2 2025 Business Wireline Revenue Breakdown (in millions) | Revenue Source | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Legacy and other transitional services | $2,349 | $2,839 | (17.3)% | | Fiber and advanced connectivity services | $1,793 | $1,732 | 3.5% | | Total Operating Revenues | $4,313 | $4,755 | (9.3)% | - The segment reported an operating loss of $201 million in Q2 2025, compared to an operating income of $102 million in Q2 2024, with the operating margin falling to -4.7%[11] Consumer Wireline Consumer Wireline revenues grew 5.8% in Q2 2025 to $3.5 billion, fueled by a 10.5% increase in broadband revenue and 243,000 fiber broadband net additions, leading to an 82.1% surge in operating income Q2 2025 Consumer Wireline Performance (in millions) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Broadband Revenue | $3,028 | $2,741 | 10.5% | | Total Operating Revenues | $3,541 | $3,347 | 5.8% | | Operating Income | $335 | $184 | 82.1% | Consumer Wireline Subscriber Data | Metric | Q2 2025 | Change from Q2 2024 | | :--- | :--- | :--- | | Fiber Broadband Net Additions (000s) | 243 | 1.7% | | Total Fiber Broadband Connections (000s) | 9,835 | 11.8% | Latin America Segment The Latin America segment, focused on Mexico wireless, reported a 4.4% revenue decline in Q2 2025 to $1.1 billion, yet operating income significantly improved to $46 million due to an 8.1% reduction in operating expenses Q2 2025 Latin America Performance (in millions) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Segment Operating Revenues | $1,054 | $1,103 | (4.4)% | | Total Segment Operating Expenses | $1,008 | $1,097 | (8.1)% | | Operating Income | $46 | $6 | — | Mexico Wireless Subscriber Data (in thousands) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Mexico Wireless Net Additions | 235 | 177 | 32.8% | | Total Mexico Wireless Subscribers | 23,843 | 22,636 | 5.3% | Supplemental Segment Reconciliation Reconciliation for Three Months Ended June 30 For the second quarter of 2025, the combined operating income from the Communications and Latin America segments was $7.11 billion, which reconciled to the consolidated operating income of $6.50 billion after accounting for corporate items Q2 2025 Operating Income Reconciliation (in millions) | Item | Operating Income (Loss) | | :--- | :--- | | Total Communications | $7,065 | | Latin America | $46 | | Segment Total | $7,111 | | Corporate and Other | $(610) | | AT&T Inc. | $6,501 | Reconciliation for Six Months Ended June 30 For the first six months of 2025, the total segment operating income of $14.15 billion was reconciled to the consolidated AT&T Inc. operating income of $12.26 billion by factoring in a $1.89 billion loss from Corporate and Other activities Six-Month 2025 Operating Income Reconciliation (in millions) | Item | Operating Income (Loss) | | :--- | :--- | | Total Communications | $14,056 | | Latin America | $89 | | Segment Total | $14,145 | | Corporate and Other | $(1,890) | | AT&T Inc. | $12,255 |