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 [9] - Adjusted EBITDA was reported at $12.6 billion, marking a 4% growth and the highest result ever [9][20] - Free cash flow improved by over $900 million compared to the previous year, totaling $3.6 billion [9][27] - Adjusted EPS for the quarter was $1.19, reflecting a year-over-year increase of 3.5% [26] Business Line Data and Key Metrics Changes - Consumer postpaid phone net losses were 356,000, primarily due to recent pricing actions [21] - Prepaid net adds reached 137,000, the best performance since the TracFone acquisition [13][24] - Broadband services saw 339,000 net adds, with continued market share growth in both Fios and fixed wireless access [24][14] Market Data and Key Metrics Changes - The company is on track to deploy C-Band to 80% to 90% of planned sites by year-end, enhancing mobility services [11] - Fios expansion is ahead of schedule, with a target of 650,000 incremental passings this year [12] - The fixed wireless access product is expected to reach 8 million to 9 million subscribers by 2028 [14] Company Strategy and Development Direction - The company aims to grow wireless service revenue, expand adjusted EBITDA, and generate strong free cash flow [17] - Focus on customer-first offerings, including myPlan, myHome, and My Biz Plan, to enhance customer experience and retention [10][34] - The pending acquisition of Frontier is expected to significantly enhance broadband offerings and market reach [10][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current macroeconomic environment, citing the essential nature of connectivity services [7][8] - The company anticipates improved consumer postpaid phone net adds for the full year, despite recent challenges [22] - Management highlighted the importance of maintaining financial discipline and operational excellence to achieve long-term growth [18][27] Other Important Information - The company was recognized as having the best, fastest, and most reliable 5G network in the US by RootMetrics [11] - The Verizon Value Guarantee, a new three-year price lock and free phone guarantee, is expected to drive customer loyalty and growth [46][55] Q&A Session Summary Question: Impact of tariffs on handsets and telecom equipment - Management indicated that tariffs on handsets could affect consumer pricing but emphasized that they are prepared to manage these challenges without compromising capital expenditures [61][67] Question: Churn expectations with new plans and promotions - Management expects churn to improve in the second half of the year due to the introduction of the Verizon Value Guarantee and ongoing C-Band expansion [72][73] Question: March and April gross adds improvement - Management noted that the new Verizon Value Guarantee has led to double-digit growth in gross adds, indicating strong market resonance [87] Question: Sustainability of business EBITDA growth - Management confirmed that the recent EBITDA growth is supported by ongoing cost transformation efforts and a shift towards higher-margin wireless services [90][93] Question: Consumer behavior changes due to tariffs - Management reported no significant changes in consumer behavior but noted some uptick in handset upgrades attributed to new offers [100][102] Question: Postpaid phone industry growth expectations - Management maintains that the postpaid market is expected to grow between 8 million and 8.5 million, with a focus on migrating customers from prepaid to postpaid [119] Question: Marketing and pricing strategy adjustments - Management is focused on maintaining a competitive pricing strategy while ensuring that service revenue growth remains sustainable [125][135]

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]