Latest Verizon Earnings Report Q1 2025

Company Overview

Verizon Communications Inc. (NYSE: VZ) is a leading American telecommunications company headquartered in New York City. Established in 2000 through the merger of Bell Atlantic and GTE, Verizon has grown to become one of the world's largest communication technology companies. The company offers a wide range of services, including wireless and wireline communications, broadband and fiber-optic services, and digital television. As of December 31, 2024, Verizon's mobile network is the largest wireless carrier in the United States, serving approximately 146 million subscribers. In September 2024, Verizon announced its intent to acquire Frontier Communications for $20 billion, aiming to expand its fiber network and enhance broadband services. This strategic move is expected to increase Verizon's fiber footprint to 30 million households by 2026, positioning the company as the third-largest fiber operator in the U.S. Verizon continues to invest in next-generation technologies, including the rollout of its 5G network, to provide innovative solutions and maintain its leadership in the telecommunications industry.

Latest Verizon Earnings Comparison (Q1 2025)

Historical Verizon Earnings Data

Verizon Earnings Call Summary Q1 2025

Highlights

• Strong Financial Performance: Wireless service revenue grew 2.7% YoY, at the high end of guided range. Adjusted EBITDA of $12.6 billion was the highest ever reported, growing 4% and exceeding guided range.

• Free Cash Flow Growth: Free cash flow increased by over $900 million compared to prior year, supporting capital allocation priorities.

• Broadband Market Share: Added 339,000 broadband net adds in Q1, continuing to take market share through fixed wireless access and fiber offerings.

• Prepaid Business Turnaround: Delivered 137,000 prepaid net adds, the best performance since the TracFone acquisition, showing successful execution across Visible, Total Wireless, and Straight Talk brands.

• Business Group Growth: Private networks business continues to scale, closing more than a dozen deals in Q1, including AdventHealth and Nucor. Named a leader in Gartner Magic Quadrant for Managed IoT Connectivity Services.

• Consumer Strategy Evolution: Launched "Verizon Value Guarantee" with a 3-year price lock and free phone guarantee with trade-in for new and existing customers.

• Network Expansion: On track to deploy C-Band to 80-90% of planned sites by year-end, and expanding Fios coverage with 650,000 incremental passings planned for 2025.

Risks

1. Consumer Postpaid Challenges: Consumer postpaid phone net losses of 356,000 reflect impact of recent pricing actions and elevated churn.

2. Federal Government Account Pressure: Business phone net adds impacted by pressure within federal government accounts.

3. Tariff Environment Uncertainty: Potential impact from tariffs on handsets and telecom equipment, with management indicating they would not absorb significant handset tariff increases.

4. Consumer Confidence Declines: Recent declines in consumer confidence could potentially impact spending, though connectivity services remain essential.

5. Competitive Market Intensity: Continued competitive pressure in both wireless and broadband segments requiring strategic promotions and offers.

Opportunities

1. Fixed Wireless Access Expansion: Working toward the milestone of 8-9 million fixed wireless access subscribers by 2028, with continued C-Band deployment and new multi-dwelling unit (MDU) solutions.

2. Frontier Acquisition: Pending acquisition will expand broadband opportunity and help enable goal of offering broadband to over 100 million premises, including fiber passings of 35-40 million.

3. AI Connect Growth: Accelerating interest in AI Connect offerings with continued expansion of partner ecosystem.

4. myPlan Adoption: Only 50% of customer base is currently on myPlan, providing opportunity for migration which tends to be revenue-accretive.

5. Perks Growth: Over 10 million perks subscriptions at end of Q1, with anticipated growth to 15 million by year-end (up from previous forecast of 14 million).

6. Convergence Strategy: Converged customers (having both mobile and home services) show significantly better retention rates, validating the convergence strategy.

Outlook

• 2025 Guidance Confidence: Management remains confident in ability to deliver on 2025 financial guidance despite macroeconomic uncertainty.

• Consumer Postpaid Recovery: Exited Q1 with positive momentum; Consumer postpaid phone gross adds in March were up mid-single digits YoY with continued strong performance in April. Confident in delivering better consumer postpaid phone net adds YoY for full year 2025.

• Churn Improvement: Expecting churn trends to improve throughout the year with the 3-year price lock and free phone guarantee, aiming to return to industry-leading churn over time.

• Prepaid Revenue Turnaround: Expecting positive service revenue contribution from core prepaid in second half of the year.

• Sales Momentum: Early indicators in April suggest strong gross add momentum and very good reception from customers attracted to Verizon through the new Value Guarantee program.

• Long-term Broadband Strategy: Working toward offering broadband to over 100 million premises, with fixed wireless access and fiber creating the most complete offering covering all market segments.

The information is provided for educational purposes only and does not constitute financial advice or recommendation and should not be considered as such. Do your own research.