Financial Performance - The company reported strong financial performance with wireless service revenue of $20.9 billion, up 2.2% year over year [6][27] - Adjusted EBITDA reached $12.8 billion, marking a 4.1% increase year over year, setting a record for the best reported quarter [6][28] - Free cash flow for the quarter was $5.2 billion, bringing year-to-date free cash flow to $8.8 billion, an increase of over $300 million compared to the first half of 2024 [6][31] Business Line Performance - The company achieved over 300,000 net additions across Mobility and Broadband platforms in the second quarter [10] - Fixed wireless access subscribers surpassed 5.1 million, with a goal of reaching 8 to 9 million by 2028 [12][24] - Fios Internet net additions were 32,000, compared to 28,000 in the prior year period, indicating robust demand [24] Market Performance - The wireless market remains competitive, with elevated postpaid phone churn due to pricing actions and competitive pressures [11][19] - The company is focused on improving retention through enhanced value propositions and AI-powered customer experience innovations [11][20] - The broadband market is expected to improve in the second half of the year, with strong demand for both fiber and fixed wireless access offerings [75] Company Strategy and Industry Competition - The company is committed to disciplined execution and customer-centric innovation, focusing on profitable connections and customer relationship value [5][36] - The strategic acquisition of Frontier is expected to accelerate fiber expansion and broadband growth [15][37] - The company is leveraging AI to enhance customer experience and operational efficiency, positioning itself as a leader in the telecommunications industry [8][13] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the business's future, citing strong financial performance and operational execution [5][36] - The company raised its full-year guidance for adjusted EBITDA and free cash flow, driven by strong cash flow from operations and tax reform benefits [9][34] - Management acknowledged ongoing competitive pressures but remains focused on maintaining financial discipline and improving customer retention [11][19] Other Important Information - The company is on track to complete the acquisition of Frontier in early 2026, with regulatory approvals already received from eight states [25][37] - The company is committed to reducing debt and maintaining a strong balance sheet, with net unsecured debt at $116 billion, a $6.9 billion improvement year over year [31][32] Q&A Session Summary Question: Free cash flow and capital allocation outlook - Management indicated that free cash flow guidance has been raised due to improved operational cash flow and tax reform benefits, with a focus on strategic investments, dividends, and debt reduction [42][44] Question: Consumer wireless net add expectations - Management confirmed the ambition for consumer net add improvement in 2025, emphasizing financial discipline in customer acquisition [48][49] Question: Postpaid ARPA growth deceleration - Management acknowledged the deceleration in postpaid ARPA growth but highlighted ongoing initiatives to drive revenue through broadband and adjacent services [58][59] Question: Broadband market trends and competitive dynamics - Management noted a softer move environment but expressed confidence in improving broadband performance in the second half of the year [75] Question: Fixed wireless deployment pace - Management confirmed that the pace of fixed wireless deployment remains unchanged, with a focus on achieving C band coverage [101][102] Question: Spectrum acquisition strategy - Management emphasized a strong position on existing spectrum and a cautious approach to future spectrum purchases, balancing build versus buy strategies [107][108]

Financial Performance - The company reported strong financial performance with wireless service revenue of $20.9 billion, up 2.2% year over year [5][25] - Adjusted EBITDA reached $12.8 billion, marking a 4.1% increase year over year, setting a record for the best reported quarter [5][27] - Free cash flow for the quarter was $5.2 billion, bringing year-to-date free cash flow to $8.8 billion, an increase of over $300 million compared to the first half of 2024 [5][29] Business Line Performance - The company achieved over 300,000 net additions across Mobility and Broadband platforms in the second quarter [8] - Fixed wireless access subscribers surpassed 5.1 million, with a goal of reaching 8 to 9 million by 2028 [11][23] - Fios Internet net additions were 32,000, compared to 28,000 in the prior year period, indicating robust growth in broadband [23] Market Performance - The wireless market remains competitive, with elevated postpaid phone churn due to pricing actions and competitive pressures [10][18] - The company is focused on improving retention through enhanced value propositions and AI-powered customer experience innovations [10][19] - The company expects mid-single-digit growth in upgrade activity for the full year [22] Company Strategy and Industry Competition - The company is committed to disciplined execution and customer-centric innovation, focusing on profitable connections and customer relationship value [4][34] - The strategic segmented market approach is resonating with customers, driving significant sales momentum [6][35] - The company is raising its full-year guidance for adjusted EBITDA and free cash flow, reflecting strong operational performance and tax reform benefits [7][32] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the business's future, highlighting strong performance in the first half of the year and the effectiveness of their strategy [4][34] - The company anticipates continued service revenue growth, supported by healthy underlying customer economics [26][27] - Management noted that the regulatory approval process for the Frontier acquisition is progressing as planned, which will further accelerate fiber expansion [14][24] Other Important Information - The company is actively pursuing cost efficiency programs, including copper decommissioning and managed services initiatives [28][30] - The balance sheet remains strong, with a focus on reducing debt ahead of the Frontier transaction [31] Q&A Session Summary Question: Inquiry about free cash flow and capital allocation - Management indicated that capital allocation priorities remain unchanged, focusing on business investments, dividends, debt reduction, and potential buybacks [41][42] Question: Discussion on consumer wireless outlook - Management confirmed the ambition for consumer net add improvement in 2025, while maintaining financial discipline [46][47] Question: Clarification on postpaid ARPA growth deceleration - Management acknowledged the deceleration but highlighted ongoing growth drivers and the potential for future improvements [56][58] Question: Update on broadband market trends - Management noted a consistent performance in Fios and strong demand for fixed wireless access, with expectations for better performance in the second half of the year [75][76]

Financial Data and Key Metrics Changes - Wireless service revenue increased by 2.7%, reaching the high end of the guided range [8][19] - Adjusted EBITDA reached $12.6 billion, marking a 4% growth and the highest reported result ever [9][19] - Free cash flow improved by over $900 million compared to the previous year, totaling $3.6 billion [9][19] - Adjusted EPS was $1.19 for the quarter, up 3.5% year over year [19] Business Line Data and Key Metrics Changes - Consumer postpaid phone net losses were 356,000, attributed to recent pricing actions [16] - Prepaid net adds were 137,000, the best performance since the TracFone acquisition [11][16] - Broadband offerings, including Fios and fixed wireless access, added 339,000 net customers, continuing to gain market share [18] Market Data and Key Metrics Changes - The company is on track to deploy C band to 80-90% of planned sites by year-end [10] - Fixed wireless access is expected to reach 8-9 million subscribers by 2028 [12] - The company aims to cover over 100 million premises with broadband offerings over time [12] Company Strategy and Development Direction - The company is focused on growing wireless service revenue, expanding adjusted EBITDA, and generating strong free cash flow [14] - A multiyear business transformation is underway, emphasizing customer-first strategies and targeted offerings [25][39] - The company is committed to enhancing customer experience through AI and personalized services [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current macroeconomic landscape and emphasized the essential nature of connectivity services [6][7] - The company anticipates improved churn rates in the second half of the year due to new pricing strategies and customer retention initiatives [50] - Management remains optimistic about achieving better consumer postpaid phone net adds in 2025 compared to 2024 [66] Other Important Information - The company is pursuing a pending acquisition of Frontier to enhance its broadband capabilities [9][21] - The Verizon Value Guarantee, which includes a three-year price lock and free phone guarantee, is expected to drive customer loyalty and revenue growth [31][36] Q&A Session Questions and Answers Question: Impact of tariffs on handsets and telecom equipment - Management indicated that tariffs on handsets could lead to increased costs for consumers, but they are prepared to manage these challenges without compromising capital expenditures [45][46] Question: Churn expectations with new plans and promotions - Management expects churn to improve in the second half of the year, attributing recent increases to specific pricing actions that were necessary for revenue stability [50] Question: March and April gross adds improvement - The company reported double-digit growth in gross adds in April, largely driven by the successful launch of the Verizon Value Guarantee [65] Question: Consumer behavior changes due to tariffs - Management noted no significant shifts in consumer behavior, with stable payment trends and continued demand for connectivity services [75][80] Question: Business EBITDA growth sustainability - Management expressed confidence in sustaining business EBITDA growth, attributing it to ongoing cost transformation efforts and a shift towards higher-margin wireless services [68][81]

Core Insights - Verizon Business has launched My Biz Plan, a customizable wireless plan designed specifically for small and midsized businesses (SMBs), allowing them to pay only for what they need [1][6] - The plan offers unlimited calling, data, and texting, with the ability to add or remove business add-ons as required, providing flexibility and control to small business owners [3][6] Pricing and Offers - From April 10 to June 10, Verizon Business is offering a special introductory discount of 15% off the core monthly plan price for any new line added to My Biz Plan, applicable for 36 months [5] - Small business owners can obtain 5 lines for $25 per line per month with auto pay and paper-free billing, making it one of the best deals available [5] Unique Features - My Biz Plan includes a 3-year price lock guarantee, ensuring that the core monthly plan price remains unchanged, excluding taxes and fees, providing peace of mind for small business owners [9] - The plan incorporates Verizon Business Mobile Internet Security to protect devices against malware, ransomware, and phishing, with additional security add-ons available [9] Market Context - According to the 2024 State of Small Business Survey, many small businesses face challenges in managing costs while investing in necessary tools and internet access for growth, which My Biz Plan aims to address [6] - Verizon generated revenues of $134.0 billion in 2023, indicating its strong market position and commitment to innovation in meeting customer needs [8]