Verizon Communications ($VZ) Q2 Earnings Report

This is the earnings report for Verizon Communications (NYSE: VZ), released on 07/21/2025.

Verizon Communications Inc. is a holding company engaged in the provision of communications, information, and entertainment products and services.

Earnings Results and Financial Press Release

file:///Users/takayasuando/Downloads/vz2q25_earnings_presentation_072125.pdf

◆ Earnings Summary

EPS Estimate: $1.19, Result: $1.22 OK
Revenue Estimate: $33.71B, Result: $34.5B OK
(Y/Y +5.2%)

FY25 Guidance
Adjusted EBITDA Growth Rate: +2.5% to 3.5%
Adjusted EPS Growth Rate: +1.0% to 3.0%

◆ Financial Results Analysis and Highlights

✅ EPS, Revenue, and Guidance

• GAAP EPS: $1.18 (Previous year same period $1.09, Y/Y +8.3%)

• Non-GAAP (Adjusted) EPS: $1.22 (Previous year same period $1.15, Y/Y +6.1%)

• Revenue: $34.5B (Y/Y +5.2%)

• Guidance:

  • Adjusted EBITDA growth rate: +2.5% to 3.5%

  • Adjusted EPS growth rate: +1.0% to 3.0%

  • Free cash flow: $19.5B to $20.5B

  • Wireless service revenue growth rate: +2.0% to 2.8%

  • Capital expenditures: $17.5B to $18.5B

✅ Earnings background and key points

• Strong customer base and growth strategy paying off

  • Increase in mobility and broadband customer numbers

  • 3-year price lock guarantee and free smartphone initiatives contributed to customer acquisition

  • Deployment of AI-driven personalized customer service

• Achieved No. 1 network quality rating by J.D. Power and RootMetrics

✅ Segment Highlights (Q2)

📶 Wireless (Total)

• Wireless service revenue: $20.9B (Y/Y +2.2%)

• Wireless equipment revenue: $6.3B (Y/Y +25.2%)

🏠 Verizon Consumer

• Revenue: $26.6B (Y/Y +6.9%)

• Consumer wireless service revenue: $17.4B (Y/Y +2.3%)

• Postpaid Average Revenue Per Account (ARPA): $147.50 (Y/Y +2.3%)

• Postpaid churn rate:

  • Total: 1.12%, Smartphone: 0.90%

• Net Additions:

  • Postpaid smartphone: -51,000 (loss reduced, previous year was -109,000)

  • Prepaid: +50,000 (previous year was -12,000)

• Consumer operating income: $7.6B (Y/Y +0.5%)

• Adjusted EBITDA: $11.2B (Y/Y +2.1%)

• EBITDA margin: 42.1% (previous year 44.1%)

Verizon Business

• Revenue: $7.3B (Y/Y -0.3%)

• Wireless service revenue: $3.6B (Y/Y +1.6%)

• Net Additions: +65,000 (of which smartphones are +42,000)

• Postpaid churn rate:

  • Total: 1.61%, Smartphone: 1.26%

• Operating income: $638M (Y/Y +27.6%)

• Adjusted EBITDA: $1.7B (Y/Y +5.8%)

• EBITDA margin: 22.9% (Previous year 21.6%)

🌐 Broadband

• Net Additions (Total): +293,000

  • Fixed Wireless Access (FWA): +278,000 (Over 5.1M subscribers)

  • FWA target: 8-9M subscribers by 2028

• Total broadband subscriptions: Over 12.9M (Y/Y +12.2%)

• Fios new installation target: 650,000 planned within 2025

✅ Cash flow / Debt

• Operating cash flow (H1 cumulative): $16.8B (Previous year $16.6B)

• Free Cash Flow (H1 total): $8.8B (previous year $8.5B)

• Total Unsecured Debt: $119.4B (year-end $125.3B)

• Net Unsecured Debt to Adjusted EBITDA Ratio: 2.3x

✅ CEO Statement (Hans Vestberg)

"Verizon's Q2 results demonstrate the success of our high-quality customer base, multiple growth paths, and clear segment strategy. Our network and financial strength enable innovation and value delivery. Following a strong first half, we have raised our full-year guidance for adjusted EBITDA, EPS, and free cash flow."

✅ Future Focus and Geopolitical Risks

• Acquisition of Frontier preparations are underway (not yet reflected in earnings guidance)

• AI-driven customer experience improvements as a competitive advantage

• Promoting regional expansion of Fios and FWA through capital investment

That is all.

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