Verizon Reports Record Q2 EBITDA Growth

Core Insights - Verizon Communications reported record quarterly adjusted EBITDA of $12.8 billion, a 4.1% increase year-over-year, and wireless service revenue of $20.9 billion, up 2.2% year-over-year [1] - The company raised its full-year 2025 guidance for adjusted EBITDA growth to 2.5%-3.5%, adjusted EPS growth to 1%-3%, and free cash flow guidance to $19.5 billion-$20.5 billion, citing operational outperformance and tax reform benefits [1][9] Financial Performance - Year-to-date free cash flow reached $8.8 billion, a 3.6% increase compared to the prior year, while operating cash flow climbed to $16.8 billion [2] - The recently approved federal tax reform is expected to contribute an additional $1.5 billion to $2 billion in free cash flow for 2025, enhancing capital allocation flexibility [2][3] Infrastructure Development - Verizon surpassed 5 million fixed wireless access (FWA) subscribers, adding 278,000 net subscribers in the quarter, and is on track to reach 8 million to 9 million FWA subscribers by 2028 [4][5] - The C-band spectrum deployment is ahead of schedule, expected to cover 80%-90% of planned sites by year-end, while fiber build is also exceeding plans with a target of 650,000 new passings this year [4][9] Customer Strategy - Despite a consumer postpaid phone churn rate of 0.9%, Verizon reduced net losses to 51,000 from 109,000 in the prior year, and improved core prepaid net additions by 62,000 year-over-year [6] - The company expects prepaid to positively contribute to wireless service revenue growth for the remainder of 2025, reflecting effective brand segmentation and execution [7]