Verizon Communications ((VZ)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Verizon’s latest earnings call reflected a positive sentiment, underscoring the company’s strong financial performance and strategic advancements. The call highlighted record wireless service revenue, growth in adjusted EBITDA, and increased free cash flow. Despite challenges such as elevated postpaid churn and pressures in the public sector, Verizon’s strategic initiatives and improvements in other areas have mitigated these issues, leading to a raised full-year guidance.
Record Wireless Service Revenue
Verizon reported an impressive wireless service revenue of $20.9 billion for Q2 2025, marking a 2.2% increase year over year. This achievement underscores the company’s strong market performance and its ability to capture a larger share of the wireless market.
Adjusted EBITDA Growth
The company achieved a record adjusted EBITDA of $12.8 billion, reflecting a 4.1% increase from the previous year. This growth highlights Verizon’s operational efficiency and its ability to generate higher earnings from its core business activities.
Free Cash Flow Increase
Verizon reported a free cash flow of $5.2 billion for the quarter, contributing to a year-to-date total of $8.8 billion. This represents an increase of over $300 million compared to the first half of 2024, showcasing the company’s strong cash generation capabilities.
C-band Deployment Ahead of Schedule
The company’s C-band deployment is progressing ahead of schedule, with nearly all sites now standalone capable. This advancement enhances Verizon’s network performance and capacity, positioning it well for future growth.
Fixed Wireless Subscribers Milestone
Verizon’s fixed wireless base surpassed five million subscribers, demonstrating robust growth in this segment. This milestone reflects the company’s successful expansion into fixed wireless services.
J.D. Power and RootMetrics Awards
Verizon received recognition from J.D. Power for best network quality and from RootMetrics for the nation’s best, fastest, and most reliable 5G network. These accolades reinforce Verizon’s leadership in network performance.
Increased Full-Year Guidance
Driven by strong performance and favorable tax reform, Verizon raised its full-year guidance for adjusted EBITDA, adjusted EPS, and free cash flow. This optimistic outlook reflects the company’s confidence in its strategic direction and operational execution.
Broadband Growth
The company delivered 293,000 net broadband additions in the quarter, with strong performance in both fiber and fixed wireless access. This growth highlights Verizon’s success in expanding its broadband services.
Elevated Postpaid Churn
Postpaid churn remained elevated at 0.90%, consistent with the first quarter, due to pricing actions and competitive pressures. Despite this challenge, Verizon is implementing strategies to address churn and retain customers.
Public Sector Challenges
Verizon faced pressures in the public sector business, which are expected to persist into the second half of the year. These challenges are affecting phone net additions, but the company is working to mitigate these impacts.
Consumer Postpaid Phone Net Losses
Consumer postpaid phone net losses totaled 51,000 for the second quarter, an improvement from the prior year period. This indicates progress in Verizon’s efforts to stabilize its consumer postpaid segment.
Forward-Looking Guidance
Verizon’s forward-looking guidance is optimistic, with the company raising its full-year projections for adjusted EBITDA, adjusted EPS, and free cash flow. The company expects free cash flow to be between $19.5 billion and $20.5 billion, driven by operational execution and positive impacts from tax reform. Verizon is also advancing its C-band deployment and fiber build, aiming to cover 80% to 90% of planned sites by year-end, and remains on track for a 2026 close of the Frontier acquisition.
In conclusion, Verizon’s earnings call conveyed a strong and positive outlook, with record financial performance and strategic advancements in network deployment and subscriber growth. Despite some challenges, the company’s strategic initiatives and raised guidance reflect confidence in its future growth prospects.