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Shares jump over 4% in premarket trading as telecom giant reports improved performance and boosts outlook
Introduction & Market Context
Verizon Communications Inc. (NYSE:VZ) presented its second-quarter 2025 earnings results on July 21, showing improved financial performance and subscriber trends that prompted management to raise full-year guidance. The telecom giant’s shares responded positively, jumping 4.14% to $42.53 in premarket trading, signaling investor approval of the company’s progress after a challenging first quarter.
The Q2 results demonstrate sequential improvement in several key metrics compared to Q1 2025, when the company reported significant postpaid phone subscriber losses that triggered a stock decline despite beating earnings expectations. This quarter’s presentation highlights Verizon’s continued network leadership and growing momentum in strategic growth areas.
Quarterly Performance Highlights
Verizon reported total revenue of $34.5 billion for Q2 2025, representing a 5.2% year-over-year increase. Wireless service revenue, a critical metric for the company, reached $20.9 billion, growing 2.2% compared to the same period last year. Adjusted EBITDA came in at $12.8 billion, up 4.1% year-over-year, with an adjusted EBITDA margin of 37.1%.
As shown in the following consolidated financial summary:
The company’s adjusted earnings per share reached $1.22, a 6.1% increase year-over-year and a sequential improvement from the $1.19 reported in Q1 2025. Notably, wireless equipment revenue showed particularly strong growth, reaching $6.3 billion in Q2 2025 compared to $5.0 billion in Q2 2024, representing a 26% year-over-year increase.
Subscriber Growth Analysis
Verizon’s subscriber metrics showed mixed results but with several positive developments. The consumer segment reported a net loss of 51,000 retail postpaid phone subscribers in Q2 2025, which represents a significant improvement from the 356,000 net losses reported in Q1 2025. Meanwhile, the business segment added 42,000 postpaid phone subscribers, continuing its positive trend though at a slower pace than the 67,000 additions in Q1.
The company’s operating metrics detail these subscriber trends:
Broadband remains a bright spot for Verizon, with 293,000 total broadband net additions in Q2 2025. While this represents a sequential decline from 339,000 in Q1, it maintains a strong growth trajectory. The company highlighted that it has surpassed 5 million Fixed Wireless Access subscribers, reinforcing its competitive position in the broadband market.
Verizon also reported its fourth consecutive quarter of growth in core prepaid subscribers, adding 50,000 net new customers in Q2 2025. This continues the positive momentum from Q1 2025, which saw 137,000 prepaid net additions.
Detailed Financial Analysis
The company’s cash flow performance showed improvement in the first half of 2025 compared to the same period in 2024. Free cash flow reached $8.8 billion for 1H 2025, representing a 3.6% increase from $8.5 billion in 1H 2024. This improvement came despite relatively stable capital expenditures of $8.0 billion, slightly down from $8.1 billion in the prior year period.
Verizon’s consolidated cash flow summary reveals strengthening financial position:
The company has also made progress in reducing its debt burden, with total debt decreasing to $146.0 billion at the end of 1H 2025 from $149.3 billion a year earlier. The net unsecured debt to adjusted EBITDA ratio improved to 2.3x from 2.5x, indicating enhanced financial flexibility.
Updated 2025 Guidance
In a significant vote of confidence in its business trajectory, Verizon raised its full-year 2025 guidance for several key financial metrics. Most notably, the company substantially increased its free cash flow outlook from a range of $17.5-$18.5 billion to $19.5-$20.5 billion, representing a $2 billion improvement at the midpoint.
The company’s updated guidance shows strengthened financial expectations:
Verizon also raised its adjusted EBITDA growth guidance from 2.0%-3.5% to 2.5%-3.5% and adjusted EPS growth from flat-3.0% to 1.0%-3.0%. The company maintained its wireless service revenue growth guidance at 2.0%-2.8% and capital expenditure forecast at $17.5-$18.5 billion.
Strategic Initiatives
The presentation highlighted Verizon’s continued focus on network leadership, noting that it maintains the "most reliable 5G network" according to RootMetrics and "best network quality" according to J.D. Power. These network advantages remain central to the company’s competitive positioning.
Verizon’s strategic execution is driving its financial performance:
The company also reported that its C-band and fiber buildouts are tracking ahead of plan, which should support future growth in both mobile and fixed wireless services. Verizon emphasized that it continues to take market share in broadband, leveraging its network assets to compete effectively against cable and other providers.
Market Reaction & Conclusion
The market’s initial reaction to Verizon’s Q2 2025 results appears positive, with the stock rising 4.14% in premarket trading to $42.53. This represents a significant improvement from the company’s previous earnings announcement for Q1 2025, which saw the stock decline 1.72% despite beating EPS expectations.
Verizon’s presentation suggests the company is making progress in addressing the challenges it faced earlier in the year, particularly in consumer postpaid phone subscriber retention. The improved financial outlook, especially the substantial increase in expected free cash flow, indicates management’s growing confidence in the company’s operational performance for the remainder of 2025.
While challenges remain, particularly in the competitive consumer wireless segment, Verizon’s Q2 2025 results demonstrate the company’s resilience and ability to leverage its network advantages and diversified service portfolio to drive financial growth even amid intense industry competition.
Full presentation:
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