Verizon Communications : 2Q 2026 Earnings Conference Call Financial & Operating Information

About this update from Verizon Communications Inc.

‌Financial and Operating Information As of June 30, 2026 ‌Table of Contents Condensed Consolidated Statements of Income 3 Condensed Consolidated Balance Sheets 4 Consolidated - Selected Financial and Operating Statistics 5 Condensed Consolidated Statements of Cash Flows 6 Consumer - Selected Financial Results 7 Business - Selected Financial Results 8 Total Operating Statistics 9 Non-GAAP Reconciliations and Notes 10 ‌Condensed Consolidated Statements of Income (dollars in millions, except per share amounts) 2024 2025 2026 Unaudited Full Year 1Q 2Q 3Q 4Q Full Year 1Q 2Q Year to date Operating Revenues Service revenues and other Wireless equipment revenues $ 111,571 23,217 $ 28,087 5,398 $ 28,249 6,255 $ 28,202 5,619 $ 28,183 8,198 $ 112,721 25,470 $ 28,759 5,681 $ 29,229 5,024 $ 57,988 10,705 Total Operating Revenues 134,788 33,485 34,504 33,821 36,381 138,191 34,440 34,253 68,693 Operating Expenses Cost of services 27,997 6,950 6,878 6,863 7,098 27,789 7,167 7,225 14,392 Cost of wireless equipment 26,100 6,106 7,007 6,483 9,380 28,976 6,506 5,859 12,365 Selling, general and administrative expense 34,113 7,874 7,812 7,752 10,380 33,818 7,633 8,982 16,615 Depreciation and amortization expense 17,892 4,577 4,635 4,618 4,519 18,349 4,892 5,008 9,900 Total Operating Expenses 106,102 25,507 26,332 25,716 31,377 108,932 26,198 27,074 53,272 Operating Income 28,686 7,978 8,172 8,105 5,004 29,259 8,242 7,179 15,421 Equity in earnings (losses) of unconsolidated businesses (53) 6 (3) (6) 3 - 5 44 49 Other income (expense), net 995 121 79 92 (185) 107 477 36 513 Interest expense (6,649) (1,632) (1,639) (1,664) (1,759) (6,694) (1,940) (1,985) (3,925) Income Before Provision For Income Taxes 22,979 6,473 6,609 6,527 3,063 22,672 6,784 5,274 12,058 Provision for income taxes (5,030) (1,490) (1,488) (1,471) (615) (5,064) (1,638) (1,325) (2,963) Net Income $ 17,949 $ 4,983 $ 5,121 $ 5,056 $ 2,448 $ 17,608 $ 5,146 $ 3,949 $ 9,095 Net income attributable to noncontrolling $ 443 $ 104 $ 118 $ 106 $ 106 $ 434 $ 101 $ 114 $ 215 interests Net income attributable to Verizon 17,506 4,879 5,003 4,950 2,342 17,174 5,045 3,835 8,880 Net Income $ 17,949 $ 4,983 $ 5,121 $ 5,056 $ 2,448 $ 17,608 $ 5,146 $ 3,949 $ 9,095 Basic Earnings Per Common Share Net income attributable to Verizon $ 4.15 $ 1.16 $ 1.18 $ 1.17 $ 0.55 $ 4.06 $ 1.20 $ 0.92 $ 2.12 Weighted-average shares outstanding (in millions) 4,218 4,222 4,224 4,228 4,230 4,226 4,205 4,168 4,186 Diluted Earnings Per Common Share (1) Net income attributable to Verizon $ 4.14 $ 1.15 $ 1.18 $ 1.17 $ 0.55 $ 4.06 $ 1.20 $ 0.92 $ 2.12 Weighted-average shares outstanding (in millions) 4,223 4,226 4,228 4,233 4,236 4,231 4,210 4,171 4,190 Footnotes: (1) Where applicable, Diluted Earnings per Common Share includes the dilutive effect of shares issuable under our stock-based compensation plans, which represents the only potential dilution. EPS may not add due to rounding. ‌Condensed Consolidated Balance Sheets (dollars in millions) Unaudited 12/31/24 3/31/25 6/30/25 9/30/25 12/31/25 3/31/26 6/30/26 Assets Current assets Cash and cash equivalents Accounts receivable Less Allowance for credit losses $ 4,194 27,261 1,152 $ 2,257 27,033 1,144 $ 3,435 27,440 1,165 $ 7,706 27,083 1,163 $ 19,048 28,347 1,250 $ 8,366 27,966 1,311 $ 1,752 27,734 1,248 Accounts receivable, net Inventories Prepaid expenses and other Total current assets Property, plant and equipment Less Accumulated depreciation Property, plant and equipment, net Investments in unconsolidated businesses Wireless licenses Goodwill Other intangible assets, net Operating lease right-of-use assets Other assets Total assets Liabilities and Equity Current liabilities Debt maturing within one year Accounts payable and accrued liabilities Current operating lease liabilities Other current liabilities Total current liabilities Long-term debt Employee benefit obligations Deferred income taxes Non-current operating lease liabilities Other liabilities Total long-term liabilities Equity Common stock Additional paid in capital Retained earnings Accumulated other comprehensive loss Common stock in treasury, at cost Deferred compensation - employee stock ownership plans and other Noncontrolling interests Total equity Total liabilities and equity 26,109 25,889 26,275 25,920 27,097 26,655 26,486 2,247 2,197 2,137 2,700 2,441 2,320 2,036 7,973 7,010 6,999 7,684 8,336 7,382 7,297 40,523 37,353 38,846 44,010 56,922 44,723 37,571 331,406 331,888 332,529 334,765 337,991 357,650 357,086 222,884 223,965 224,460 226,298 228,524 231,678 231,589 108,522 107,923 108,069 108,467 109,467 125,972 125,497 842 820 807 799 785 730 783 156,613 156,726 156,820 156,926 157,039 157,082 158,159 22,841 22,842 22,841 22,841 22,841 30,628 30,664 11,129 10,847 10,635 10,516 10,458 12,799 12,317 24,472 24,175 23,949 23,760 23,498 23,401 23,158 19,769 19,678 21,318 21,012 23,248 22,547 22,037 $ 384,711 $ 380,364 $ 383,285 $ 388,331 $ 404,258 $ 417,882 $ 410,186 $ 22,633 $ 22,629 $ 22,067 $ 20,146 $ 18,618 $ 28,229 $ 21,783 23,374 19,413 19,880 20,700 24,981 21,932 20,422 4,415 4,686 4,731 4,501 4,542 4,720 4,835 14,349 14,338 14,274 14,216 14,229 14,999 15,171 64,771 61,066 60,952 59,563 62,370 69,880 62,211 121,381 121,020 123,929 126,629 139,532 144,231 143,448 11,997 11,793 11,170 11,072 11,099 12,023 11,758 46,732 46,643 46,568 48,226 48,717 49,312 50,234 19,928 19,379 19,164 19,176 18,951 18,692 18,392 19,327 18,426 17,141 17,320 17,848 19,122 18,947 219,365 217,261 217,972 222,423 236,147 243,380 242,779 429 429 429 429 429 429 429 13,466 13,415 13,412 13,408 13,372 13,263 13,258 89,110 91,128 93,275 95,316 94,744 96,824 97,728 (923) (1,489) (1,475) (1,651) (1,727) (2,372) (1,784) (3,583) (3,295) (3,292) (3,287) (3,255) (5,335) (6,312) 738 534 714 827 897 500 601 1,338 1,315 1,298 1,303 1,281 1,313 1,276 100,575 102,037 104,361 106,345 105,741 104,622 105,196 $ 384,711 $ 380,364 $ 383,285 $ 388,331 $ 404,258 $ 417,882 $ 410,186 Consolidated - Selected Financial and Operating Statistics (dollars in millions, except per share amounts) Unaudited 12/31/24 3/31/25 6/30/25 9/30/25 12/31/25 3/31/26 6/30/26 Total debt $ 144,014 Unsecured debt $ 117,876 Net unsecured debt (1) $ 113,682 Unsecured debt / Consolidated Net Income (LTM) Net unsecured debt / Consolidated Adjusted EBITDA (1)(2) Common shares outstanding, end of period (in millions) 4,210 Total employees ('000) (3) 99.6 Quarterly cash dividends declared per common share $ 0.6775 Footnotes: Non-GAAP financial measure. $ 143,649 $ 145,996 $ 146,775 $ 158,150 $ 117,313 $ 119,396 $ 119,714 $ 131,083 $ 115,056 $ 115,961 $ 112,008 $ 110,053 6.4x 5.9x 7.4x 2.3x 2.2x 2.2x 4,216 4,216 4,216 4,217 99.4 100.0 100.2 89.9 $ 0.6775 $ 0.6775 $ 0.6900 $ 0.6900 $ 172,460 $ 165,231 $ 142,498 $ 136,471 $ 130,053 $ 128,682 8.0x 8.2x 2.6x 2.5x 4,176 4,155 99.6 97.6 $ 0.7075 $ 0.7075 Consolidated Adjusted EBITDA excludes the effects of non-operational items and special items. Number of employees on a full-time equivalent basis. ‌Condensed Consolidated Statements of Cash Flows (dollars in millions) 12 Mos. 3 Mos. 6 Mos. 9 Mos. 12 Mos. 3 Mos. 6 Mos. Ended Ended Ended Ended Ended Ended Ended 12/31/24 3/31/25 6/30/25 9/30/25 12/31/25 3/31/26 6/30/26 Unaudited Cash Flows from Operating Activities Net Income $ 17,949 $ 4,983 $ 10,104 $ 15,160 $ 17,608 $ 5,146 $ 9,095 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization expense 17,892 4,577 9,212 13,830 18,349 4,892 9,900 Employee retirement benefits (52) 143 331 444 1,025 (117) 35 Deferred income taxes 815 132 95 1,809 2,340 703 1,433 Provision for expected credit losses 2,338 587 1,135 1,613 2,349 581 1,043 Equity in (earnings) losses of unconsolidated businesses, net of dividends received 75 20 29 41 42 3 (35) Changes in current assets and liabilities, net of effects from acquisition/ disposition of businesses (2,278) (2,618) (3,318) (4,054) (2,320) (3,082) (3,418) Other, net 173 (42) (831) (820) (2,256) (142) 366 Net cash provided by operating activities 36,912 7,782 16,757 28,023 37,137 7,984 18,419 Cash Flows from Investing Activities Capital expenditures (including capitalized software) (17,090) (4,145) (7,953) (12,263) (17,011) (4,201) (8,210) Cash paid related to acquisitions of businesses, net of cash acquired - - - - - (9,480) (9,480) Acquisitions of wireless licenses (900) (122) (234) (340) (450) (83) (1,155) Other, net (684) 515 997 923 801 191 345 Net cash used in investing activities (18,674) (3,752) (7,190) (11,680) (16,660) (13,573) (18,500) Cash Flows from Financing Activities Proceeds from long-term borrowings 3,146 - 1,676 3,952 18,268 5,975 9,940 Proceeds from asset-backed long-term borrowings 12,422 2,781 4,962 7,340 9,338 6,154 12,028 Repayments of long-term borrowings and finance lease obligations (11,854) (2,446) (5,530) (7,529) (11,352) (4,258) (14,426) Repayments of asset-backed long-term borrowings (8,490) (2,589) (4,512) (6,437) (8,437) (6,828) (13,912) Dividends paid (11,249) (2,856) (5,712) (8,569) (11,481) (2,910) (5,864) Purchase of common stock for treasury - - - - - (2,500) (3,500) Other, net (1,075) (783) (1,155) (1,579) (1,949) (911) (1,380) Net cash used in financing activities (17,100) (5,893) (10,271) (12,822) (5,613) (5,278) (17,114) Increase (decrease) in cash, cash equivalents and restricted cash 1,138 (1,863) (704) 3,521 14,864 (10,867) (17,195) Cash, cash equivalents and restricted cash, beginning of period 3,497 4,635 4,635 4,635 4,635 19,499 19,499 Cash, cash equivalents and restricted cash, end of period $ 4,635 $ 2,772 $ 3,931 $ 8,156 $ 19,499 $ 8,632 $ 2,304 Footnote: Certain amounts have been reclassified to conform to the current period presentation. ‌Consumer - Selected Financial Results (dollars in millions) 2025 2026 Unaudited 1Q 2Q 3Q 4Q 1Q 2Q Operating Revenues Mobility and broadband service (1) $ 18,801 $ 19,002 $ 19,096 $ 19,024 $ 19,180 $ 19,637 Wireless equipment 4,532 5,369 4,766 7,112 4,824 4,178 Other (2) 2,285 2,277 2,243 2,300 2,449 2,427 Total Operating Revenues 25,618 26,648 26,105 28,436 26,453 26,242 Operating Expenses Cost of services 4,574 4,581 4,635 4,643 4,820 4,928 Cost of wireless equipment 4,912 5,806 5,270 7,942 5,303 4,658 Selling, general and administrative expense 5,165 5,036 4,968 5,474 4,886 4,837 Depreciation and amortization expense 3,543 3,582 3,568 3,480 3,730 3,787 Total Operating Expenses 18,194 19,005 18,441 21,539 18,739 18,210 Operating Income $ 7,424 $ 7,643 $ 7,664 $ 6,897 $ 7,714 $ 8,032 Operating Income Margin 29.0 % 28.7 % 29.4 % 24.3 % 29.2 % 30.6 % Segment EBITDA (3) $ 10,967 $ 11,225 $ 11,232 $ 10,377 $ 11,444 $ 11,819 Segment EBITDA Margin (3) 42.8 % 42.1 % 43.0 % 36.5 % 43.3 % 45.0 % Footnotes: Mobility and broadband service revenue primarily includes revenue from mobility communication services, FWA broadband, Fios internet and other fiber-based services. Other revenue primarily includes revenue from wireline products that provide legacy voice, video and data solutions, as well as broadband solutions over a traditional copper-based network. Other revenue also includes fees that partially recover the direct and indirect costs of complying with regulatory and industry obligations and programs, leasing and interest recognized when equipment is sold to the customer by an authorized agent under a device payment plan agreement. Non-GAAP financial measure. During the first quarter of 2026, Verizon revised its presentation of revenue reporting for its reportable segments. Accordingly, beginning in the first quarter of 2026, Verizon has reported Consumer revenue disaggregated by products and services as follows: Mobility and broadband service revenue, Wireless equipment revenue and Other revenue. Prior period operating revenue results have been recast to conform to the current period presentation. There was no change to the composition of our reportable segments and total segment results, nor to the determination of segment profit. The segment financial results above exclude the effects of special items (other than the effects of acquisition-related intangible asset amortization), which the Company's chief operating decision maker does not consider in assessing segment performance. Certain intersegment transactions with corporate entities have not been eliminated. ‌Business - Selected Financial Results (dollars in millions) 2025 2026 Unaudited 1Q 2Q 3Q 4Q 1Q 2Q Operating Revenues Mobility and broadband service (1) $ 3,717 $ 3,733 $ 3,743 $ 3,747 $ 3,688 $ 3,728 Wireless equipment 866 886 853 1,087 857 846 Other (2) 2,419 2,354 2,247 2,243 2,585 2,581 Total Operating Revenues 7,002 6,973 6,843 7,077 7,130 7,155 Operating Expenses Cost of services 2,154 2,060 1,985 2,083 2,117 2,023 Cost of wireless equipment 1,194 1,201 1,213 1,438 1,202 1,203 Selling, general and administrative expense 1,919 1,990 1,927 1,885 1,806 1,847 Depreciation and amortization expense 989 998 1,002 987 1,049 1,091 Total Operating Expenses 6,256 6,249 6,127 6,393 6,174 6,164 Operating Income $ 746 $ 724 $ 716 $ 684 $ 956 $ 991 Operating Income Margin 10.7 % 10.4 % 10.5 % 9.7 % 13.4 % 13.9 % Segment EBITDA (3) $ 1,735 $ 1,722 $ 1,718 $ 1,671 $ 2,005 $ 2,082 Segment EBITDA Margin (3) 24.8 % 24.7 % 25.1 % 23.6 % 28.1 % 29.1 % Footnotes: Mobility and broadband service revenue primarily includes revenue from mobility communication services, FWA broadband, Fios internet and other fiber-based services. Other revenue primarily includes revenue from wireline products that provide legacy voice, video and data solutions, as well as broadband solutions over a traditional copper-based network. Other revenue also includes fees that partially recover the direct and indirect costs of complying with regulatory and industry obligations and programs, leasing and interest recognized when equipment is sold to the customer by an authorized agent under a device payment plan agreement. Non-GAAP financial measure. During the first quarter of 2026, Verizon revised its presentation of revenue reporting for its reportable segments. Accordingly, beginning in the first quarter of 2026, Verizon has reported Business revenue disaggregated by products and services as follows: Mobility and broadband service revenue, Wireless equipment revenue and Other revenue. Prior period operating revenue results have been recast to conform to the current period presentation. There was no change to the composition of our reportable segments and total segment results, nor to the determination of segment profit. In the second quarter of 2026, the net assets representing Verizon's international wireline connectivity and managed network services business were classified as assets and liabilities held for sale and moved from the Business segment to Corporate and other. Where applicable, historical segment results have been reclassified to conform to the current period presentation. The segment financial results above exclude the effects of special items (other than the effects of acquisition-related intangible asset amortization), which the Company's chief operating decision maker does not consider in assessing segment performance. Certain intersegment transactions with corporate entities have not been eliminated. ‌Total Operating Statistics 2025 2026 Unaudited 1Q 2Q 3Q 4Q 1Q 2Q Connections ('000) Wireless retail 145,974 146,136 146,119 146,930 146,798 146,953 Wireless retail postpaid 125,744 125,895 125,913 126,705 126,499 126,619 Wireless retail postpaid phone 93,214 93,207 93,246 93,868 93,920 94,098 Wireless retail core prepaid (1) 18,977 19,017 19,062 19,169 19,279 19,351 Wireless retail core prepaid phone (1) 18,489 18,502 18,506 18,561 18,628 18,654 Fiber broadband 7,581 7,613 7,674 7,741 10,757 10,913 FWA broadband 4,845 5,112 5,391 5,727 6,006 6,208 Total broadband (2) 12,426 12,725 13,065 13,468 16,763 17,121 Net Additions Detail ('000) Wireless retail (65) 177 2 851 (116) 223 Wireless retail postpaid (159) 155 36 829 (196) 188 Wireless retail postpaid phone (289) (9) 44 616 55 184 Wireless retail core prepaid (1) 137 50 47 109 115 73 Wireless retail core prepaid phone (1) 110 24 14 72 70 24 Fiber broadband 45 32 61 67 127 155 FWA broadband 308 278 261 319 214 193 Total broadband 353 310 322 386 341 348 Account Statistics Wireless retail postpaid accounts ('000) (3) 34,696 34,646 34,470 34,496 34,369 34,237 Wireless retail postpaid ARPA (4) $ 169.81 $ 170.79 $ 171.27 $ 170.61 $ 166.66 $ 168.35 Wireless retail core prepaid ARPU (5) $ 31.92 $ 32.56 $ 32.70 $ 32.90 $ 33.31 $ 33.37 Churn Detail Wireless retail postpaid phone 0.95 % 0.97 % 0.98 % 1.02 % 0.97 % 0.92 % Wireless retail core prepaid (1) 3.47 % 3.60 % 3.73 % 3.73 % 3.45 % 3.59 % Wireless Retail Postpaid Connection Statistics Upgrade rate 2.8 % 3.6 % 3.3 % 4.4 % 3.0 % 2.6 % Footnotes: Represents total prepaid results excluding our SafeLink brand. Total broadband excludes solutions provided over a traditional copper-based network. Statistic presented as of end of period. Wireless retail postpaid ARPA - average service revenue per account from retail postpaid accounts. Wireless retail core prepaid ARPU - average service revenue per unit from retail prepaid connections excluding our SafeLink brand. Where applicable, the operating results reflect certain adjustments, including those related to migration activity among different types of devices and plans, customer profile changes, product-related changes and adjustments in connection with mergers, acquisitions and divestitures. Where applicable, historical results have been recast to conform to the current period presentation. Definitions - Non-GAAP Measures ‌Non-GAAP Measures Verizon's Financial and Operating Information includes financial information prepared in conformity with generally accepted accounting principles in the United States (GAAP) as well as non-GAAP financial information. It is management's intent to provide non-GAAP financial information to enhance the understanding of Verizon's GAAP financial information, and it should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Each non-GAAP financial measure is presented along with the corresponding GAAP measure so as not to imply that more emphasis should be placed on the non-GAAP measure. We believe that providing these non-GAAP measures in addition to the GAAP measures allows management, investors and other users of our financial information to more fully and accurately assess both consolidated and segment performance. The non-GAAP financial information presented may be determined or calculated differently by other companies and may not be directly comparable to that of other companies. EBITDA and EBITDA Margin Related Non-GAAP Measures Consolidated earnings before interest, taxes, depreciation and amortization (Consolidated EBITDA), Segment EBITDA and Segment EBITDA Margin are non-GAAP financial measures that we believe are useful to management, investors and other users of our financial information in evaluating operating profitability on a more variable cost basis as they exclude the depreciation and amortization expense related primarily to capital expenditures and acquisitions, as well as in evaluating operating performance in relation to Verizon's competitors. Consolidated EBITDA is calculated by adding back interest, taxes, depreciation and amortization expense to net income. Segment EBITDA is calculated by adding back segment depreciation and amortization expense to segment operating income. Segment EBITDA Margin is calculated by dividing Segment EBITDA by total segment operating revenues. Consolidated Adjusted EBITDA and Consolidated Adjusted EBITDA Margin Consolidated Adjusted EBITDA and Consolidated Adjusted EBITDA Margin are non-GAAP financial measures that we believe provide relevant and useful information to management, investors and other users of our financial information in evaluating the effectiveness of our operations and underlying business trends. We believe that Consolidated Adjusted EBITDA and Consolidated Adjusted EBITDA Margin are widely used by investors to compare a company's operating performance to its competitors by minimizing impacts caused by differences in capital structure, taxes, and depreciation and amortization policies. Further, the exclusion of non-operational items and special items enables comparability to prior period performance and trend analysis. Consolidated Adjusted EBITDA is calculated by excluding from Consolidated EBITDA the effect of the following non-operational items: equity in earnings and losses of unconsolidated businesses and other income and expense, net, and the following special items: severance charges, acquisition and integration related charges, asset and business rationalization and loss on disposition of business. Severance charges recorded during 2026 and 2025 relate to separations in connection with workforce reduction initiatives. Severance charges recorded during 2024 relate to separations under our voluntary separation program for select U.S.-based management employees as well as other headcount reduction initiatives. Acquisition and integration related charges recorded during 2026 and 2025 primarily relate to transaction and integration expenses associated with the acquisition of Frontier Communications Parent, Inc. completed in January 2026. Asset rationalization recorded during 2026 relates to the decision to cease use of certain real estate and network assets as part of our transformation initiatives. Asset and business rationalization recorded during 2025 and 2024 predominately relates to the decision to cease use of certain real estate assets and exit non-strategic portions of certain businesses as part of our transformation initiatives. Loss on disposition of business recorded during 2026 relates to the classification of the assets and liabilities representing Verizon's international wireline connectivity and managed network services business as assets and liabilities held for sale. Consolidated Adjusted EBITDA Margin is calculated by dividing Consolidated Adjusted EBITDA by consolidated operating revenues. Net Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio Net Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio are non-GAAP financial measures that we believe are useful to management, investors and other users of our financial information in evaluating Verizon's ability to service its unsecured debt from continuing operations. Net Unsecured Debt is calculated by subtracting secured debt, a fifty percent equity credit related to junior subordinated notes, and cash and cash equivalents, from the sum of debt maturing within one year and long-term debt. Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio is calculated by dividing Net Unsecured Debt by Consolidated Adjusted EBITDA. For purposes of Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio, Consolidated Adjusted EBITDA is calculated for the last twelve months. We have not provided a reconciliation for our Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio target because we cannot, without unreasonable effort, predict the special items that could arise in future periods. Adjusted Earnings per Common Share (Adjusted EPS) and Adjusted EPS Forecast Adjusted EPS and Adjusted EPS Forecast are non-GAAP financial measures that we believe are useful to management, investors and other users of our financial information in evaluating our operating results and understanding our operating trends without the effect of special items which could vary from period to period. We believe excluding special items provides more comparable assessment of our financial results from period to period. Adjusted EPS is calculated by excluding from the calculation of reported EPS the effect of the following special items: amortization of acquisition-related intangible assets, severance, pension and benefits charges (credits), acquisition and integration related charges, asset and business rationalization, gain or loss on disposition of assets and business, legacy legal matter, Verizon Business Group goodwill impairment, legal settlement, business transformation costs, non-strategic business shutdown, early debt redemption costs, and loss on spectrum licenses. We exclude the amortization of acquisition-related intangible assets because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions we consummate. While we have a history of significant acquisition activity, we do not acquire businesses on a predictable cycle, and the amount of an acquisition's purchase price allocated to intangible assets and related amortization term are unique to each acquisition and can vary significantly from acquisition to acquisition. Exclusion of this amortization expense facilitates more consistent comparisons of operating results over time between our newly acquired and long-held businesses, and with both acquisitive and non-acquisitive peer companies. We believe that it is important for investors to Definitions - Non-GAAP Measures understand that our non-GAAP financial measure adjusts for the intangible asset amortization but does not adjust the revenue that is generated in part from the use of such intangible assets. We exclude the acquisition and integration related charges because the amount and timing of such charges are significantly impacted by the timing, size, and nature of the acquisitions we consummate. While we have a history of significant acquisition activity, we do not acquire businesses on a predictable cycle, and the related costs to integrate an acquired business into our operations are unique to each acquisition and can vary significantly from acquisition to acquisition. Exclusion of acquisition and integration related charges facilitates more consistent comparisons of our operating results with historical periods, and with both acquisitive and non-acquisitive peer companies. We have not provided a reconciliation for our Adjusted EPS Forecast because we cannot, without unreasonable effort, predict the special items that could arise during 2026. Free Cash Flow and Free Cash Flow Forecast Free cash flow and free cash flow forecast are non-GAAP financial measures that reflect an additional way of viewing our liquidity that, we believe, when viewed with our GAAP results, provide management, investors and other users of our financial information with a more complete understanding of factors and trends affecting our cash flows. We believe they are more conservative measures of cash flow since capital expenditures are necessary for ongoing operations. Free cash flow and free cash flow forecast have limitations due to the fact that they do not represent the residual cash flow available for discretionary expenditures. For example, free cash flow and free cash flow forecast do not incorporate payments made or expected to be made on finance lease obligations or cash payments for business acquisitions or wireless licenses. Therefore, we believe it is important to view free cash flow and free cash flow forecast as complements to our entire condensed consolidated statements of cash flows. Free cash flow is calculated by subtracting capital expenditures (including capitalized software) from net cash provided by operating activities. Free cash flow forecast is calculated by subtracting capital expenditures forecast (including capitalized software) from forecasted net cash provided by operating activities. Non-GAAP Reconciliations - Consolidated ‌Consolidated EBITDA, Consolidated Adjusted EBITDA and Consolidated Adjusted EBITDA Margin (dollars in millions) 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. Ended Ended Ended Ended Ended Ended Ended Ended Unaudited 9/30/24 12/31/24 3/31/25 6/30/25 9/30/25 12/31/25 3/31/26 6/30/26 Consolidated Net Income Add: Provision for income taxes Interest expense (1) Depreciation and amortization expense (2) Consolidated EBITDA Add/(subtract): Other (income) expense, net (3) Equity in (earnings) losses of unconsolidated businesses Severance charges Acquisition and integration related charges Asset and business rationalization Loss on disposition of business Consolidated Adjusted EBITDA $3,411 $5,114 $4,983 $5,121 $5,056 $2,448 $5,146 $3,949 891 1,454 1,490 1,488 1,471 615 1,638 1,325 1,672 1,644 1,632 1,639 1,664 1,759 1,940 1,985 4,458 4,506 4,577 4,635 4,618 4,519 4,892 5,008 $10,432 $12,718 $12,682 $12,883 $12,809 $9,341 $13,616 $12,267 $ (72) $ (797) $ (121) $ (79) $ (92) $ 185 $ (477) $ (36) 24 6 (6) 3 6 (3) (5) (44) 1,733 - - - - 1,715 - 397 - - - - 52 39 261 135 374 - - - - 583 - 258 - - - - - - - 746 $12,491 $11,927 $12,555 $12,807 $12,775 $11,860 $13,395 $13,723 Consolidated Operating Revenues $33,330 $35,681 $33,485 $34,504 $33,821 $36,381 $34,440 $34,253 Consolidated Net Income Margin 10.2 % 14.3 % 14.9 % 14.8 % 14.9 % 6.7 % 14.9 % 11.5 % Consolidated Adjusted EBITDA Margin 37.5 % 33.4 % 37.5 % 37.1 % 37.8 % 32.6 % 38.9 % 40.1 % Consolidated Adjusted EBITDA - Year over year change % 7.2 % Consolidated Adjusted EBITDA Margin - Year over year change Footnotes: 300 bps Includes a portion of the Acquisition and integration related charges, where applicable. Includes Amortization of acquisition-related intangible assets. Includes Pension and benefits remeasurement adjustments, where applicable. Non-GAAP Reconciliations - Consolidated Consolidated EBITDA and Consolidated Adjusted EBITDA (LTM) 12 Mos. Ended 12 Mos. Ended 12 Mos. Ended 12 Mos. Ended 12 Mos. Ended 6/30/25 9/30/25 12/31/25 3/31/26 6/30/26 (dollars in millions) Unaudited Consolidated Net Income $ 18,629 $ 20,274 $ 17,608 $ 17,771 $ 16,599 Add: Provision for income taxes 5,323 5,903 5,064 5,212 5,049 Interest expense (1) 6,587 6,579 6,694 7,002 7,348 Depreciation and amortization expense (2) 18,176 18,336 18,349 18,664 19,037 Consolidated EBITDA $ 48,715 $ 51,092 $ 47,715 $ 48,649 $ 48,033 Add/(subtract): Other income, net (3) $ (1,069) $ (1,089) $ (107) $ (463) $ (420) Equity in (earnings) losses of unconsolidated businesses 27 9 - 1 (46) Severance charges 1,733 - 1,715 1,715 2,112 Acquisition and integration related charges - 52 91 352 487 Asset and business rationalization 374 - 583 583 841 Loss on disposition of business - - - - 746 Consolidated Adjusted EBITDA $ 49,780 $ 50,064 $ 49,997 $ 50,837 $ 51,753 Footnotes: Includes a portion of the Acquisition and integration related charges, where applicable. Includes Amortization of acquisition-related intangible assets. Includes Pension and benefits remeasurement adjustments, where applicable. Net Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio (dollars in millions) Unaudited 12/31/24 3/31/25 6/30/25 9/30/25 12/31/25 3/31/26 6/30/26 Debt maturing within one year Long-term debt $ 22,633 121,381 $ 22,629 121,020 $ 22,067 123,929 $ 20,146 126,629 $ 18,618 139,532 $ 28,229 144,231 $ 21,783 143,448 Total Debt 144,014 143,649 145,996 146,775 158,150 172,460 165,231 Less: Secured debt 26,138 26,336 26,600 27,061 27,067 29,962 28,760 Unsecured Debt 117,876 117,313 119,396 119,714 131,083 142,498 136,471 Less: Equity credit for junior subordinated notes (1) - - - - 1,982 4,079 6,037 Less: Cash and cash equivalents 4,194 2,257 3,435 7,706 19,048 8,366 1,752 Net Unsecured Debt $ 113,682 $ 115,056 $ 115,961 $ 112,008 $ 110,053 $ 130,053 $ 128,682 Consolidated Net Income (LTM) Unsecured Debt to Consolidated Net Income Ratio $ 18,629 6.4x $ 20,274 5.9x $ 17,608 7.4x $ 17,771 8.0x $ 16,599 8.2x Consolidated Adjusted EBITDA (LTM) Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio $ 49,780 2.3x $ 50,064 2.2x $ 49,997 2.2x $ 50,837 2.6x $ 51,753 2.5x Quarter over quarter change 0.1x Footnote: (1) Represents a fifty percent equity credit related to junior subordinated notes outstanding. Non-GAAP Reconciliations - Consolidated Adjusted Earnings per Common Share (Adjusted EPS) (dollars in millions except per share amounts) 3 Mos. Ended 3 Mos. Ended Unaudited 6/30/25 6/30/26 Pre-tax Tax After-Tax Pre-tax Tax After-Tax EPS $ 1.18 $ 0.92 Amortization of acquisition-related intangible assets $ 192 $ (49) $ 143 0.03 $ 274 $ (69) $ 205 0.05 Severance charges - - - - 397 (98) 299 0.07 Acquisition and integration related charges - - - - 135 (18) 117 0.03 Asset rationalization - - - - 258 (63) 195 0.05 Loss on disposition of business - - - - 746 29 775 0.19 $ 192 $ (49) $ 143 $ 0.03 $ 1,810 $ (219) $ 1,591 $ 0.38 Adjusted EPS $ 1.22 $ 1.30 Year over year change % 6.6 % Footnote: Adjusted EPS may not add due to rounding. (dollars in millions except per share amounts) 12 Mos. Ended 12 Mos. Ended Unaudited 12/31/24 12/31/25 Pre-tax Tax After-Tax Pre-tax Tax After-Tax EPS $ 4.14 $ 4.06 Amortization of acquisition-related intangible assets $ 817 $ (208) $ 609 0.14 $ 760 $ (192) $ 568 0.13 Severance, pension and benefits charges 1,201 (298) 903 0.21 2,156 (533) 1,623 0.38 Asset and business rationalization 374 (90) 284 0.07 583 (144) 439 0.10 Acquisition and integration related charges - - - - 110 - 110 0.03 Legacy legal matter 106 (27) 79 0.02 - - - - $ 2,498 $ (623) $ 1,875 $ 0.44 $ 3,609 $ (869) $ 2,740 $ 0.65 Adjusted EPS $ 4.59 $ 4.71 Year over year change % (2.5)% 2.6 % Five-year average year over year change % (0.5)% Footnote: Adjusted EPS may not add due to rounding. Non-GAAP Reconciliations - Consolidated (dollars in millions except per share amounts) 12 Mos. Ended 12 Mos. Ended Unaudited 12/31/22 12/31/23 Pre-tax Tax After-Tax Pre-tax Tax After-Tax EPS $ 5.06 $ 2.75 Amortization of acquisition-related intangible assets $ 826 $ (214) $ 612 0.15 $ 865 $ (219) $ 646 0.15 Severance, pension and benefits charges (credits) (1,371) 339 (1,032) (0.25) 1,525 (378) 1,147 0.27 Verizon Business Group goodwill impairment - - - - 5,841 (52) 5,789 1.37 Asset and business rationalization - - - - 480 (113) 367 0.09 Legal settlement - - - - 100 (25) 75 0.02 Business transformation costs - - - - 176 (45) 131 0.03 Non-strategic business shutdown - - - - 179 (83) 96 0.02 Early debt redemption costs 1,241 (316) 925 0.22 - - - - $ 696 $ (191) $ 505 $ 0.12 $ 9,166 $ (915) $ 8,251 $ 1.96 Adjusted EPS $ 5.18 $ 4.71 Year over year change % (5.8)% (9.1)% Footnote: Adjusted EPS may not add due to rounding. (dollars in millions except per share amounts) 12 Mos. Ended 12 Mos. Ended Unaudited 12/31/20 12/31/21 Pre-tax Tax After-Tax Pre-tax Tax After-Tax EPS $ 4.30 $ 5.32 Amortization of acquisition-related intangible assets $ - $ - $ - - $ 594 $ (145) $ 449 0.11 Severance, pension and benefits charges (credits) 1,831 (451) 1,380 0.33 (2,170) 539 (1,631) (0.39) Net (gain) loss from disposition of asset and business 119 2 121 0.03 (837) - (837) (0.20) Early debt redemption costs 102 (26) 76 0.02 3,541 (917) 2,624 0.63 Loss on spectrum licenses 1,195 (281) 914 0.22 223 (56) 167 0.04 $ 3,247 $ (756) $ 2,491 $ 0.60 $ 1,351 $ (579) $ 772 $ 0.19 Adjusted EPS $ 4.90 $ 5.50 Year over year change % 12.2 % Footnote: Adjusted EPS may not add due to rounding. Free Cash Flow (dollars in millions) 3 Mos. Ended 3 Mos. Ended 6 Mos. Ended 6 Mos. Ended Unaudited 6/30/25 6/30/26 6/30/25 6/30/26 Net Cash Provided by Operating Activities Capital expenditures (including capitalized software) Free Cash Flow $ 8,975 (3,808) $ 10,435 (4,009) $ 16,757 (7,953) $ 18,419 (8,210) $ 5,167 $ 6,426 $ 8,804 $ 10,209 Year over year change % 24.4 % 16.0 % Free Cash Flow for 6 Mos. Ended 6/30/26 - Year over year change $ 1,405 Non-GAAP Reconciliations - Consolidated Free Cash Flow (dollars in millions) 12 Mos. Ended 12 Mos. Ended 12 Mos. Ended 12 Mos. Ended 12 Mos. Ended 12 Mos. Ended Unaudited 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 12/31/25 Net Cash Provided by Operating Activities Capital expenditures (including capitalized software) $ 41,768 (18,192) $ 39,539 (20,286) $ 37,141 (23,087) $ 37,475 (18,767) $ 36,912 (17,090) $ 37,137 (17,011) Free Cash Flow $ 23,576 $ 19,253 $ 14,054 $ 18,708 $ 19,822 $ 20,126 Year over year change % (18.3)% (27.0)% 33.1 % 6.0 % 1.5 % Five-year average year over year change % (0.9)% Free Cash Flow Forecast for Full Year 2026 (dollars in millions) Original Revised Unaudited Forecast Forecast Net Cash Provided by Operating Activities Forecast $ 37,500 - 38,000 $ 37,940 - 38,640 Capital expenditures forecast (including capitalized software) (16,000 - 16,500) (16,000 - 16,500) Free Cash Flow Forecast $ 21,500 $ 21,940 - 22,140 Net Cash Provided by Operating Activities Growth Forecast % 1.0 % - 2.3 % 2.2 % - 4.0 % Free Cash Flow Growth Forecast % 6.8 % 9.0 % - 10.0 % ‌Non-GAAP Reconciliations - Segments Segment EBITDA and Segment EBITDA Margin Consumer (dollars in millions) Unaudited 3 Mos. Ended 3/31/25 3 Mos. Ended 6/30/25 3 Mos. Ended 9/30/25 3 Mos. Ended 12/31/25 3 Mos. 3 Mos. Ended Ended 3/31/26 6/30/26 Operating Income $ 7,424 $ 7,643 $ 7,664 $ 6,897 $ 7,714 $ 8,032 Add: Depreciation and amortization expense 3,543 3,582 3,568 3,480 3,730 3,787 Segment EBITDA $ 10,967 $ 11,225 $ 11,232 $ 10,377 $ 11,444 $ 11,819 Total operating revenues $ 25,618 $ 26,648 $ 26,105 $ 28,436 $ 26,453 $ 26,242 Operating Income Margin 29.0 % 28.7 % 29.4 % 24.3 % 29.2 % 30.6 % Segment EBITDA Margin 42.8 % 42.1 % 43.0 % 36.5 % 43.3 % 45.0 % Segment EBITDA - Year over year change % 5.3 % Business (dollars in millions) 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. Ended Ended Ended Ended Ended Ended Unaudited 3/31/25 6/30/25 9/30/25 12/31/25 3/31/26 6/30/26 Operating Income $ 746 $ 724 $ 716 $ 684 $ 956 $ 991 Add: Depreciation and amortization expense 989 998 1,002 987 1,049 1,091 Segment EBITDA $ 1,735 $ 1,722 $ 1,718 $ 1,671 $ 2,005 $ 2,082 Total operating revenues $ 7,002 $ 6,973 $ 6,843 $ 7,077 $ 7,130 $ 7,155 Operating Income Margin 10.7 % 10.4 % 10.5 % 9.7 % 13.4 % 13.9 % Segment EBITDA Margin 24.8 % 24.7 % 25.1 % 23.6 % 28.1 % 29.1 % Segment EBITDA - Year over year change % 20.9 % Business (dollars in millions) 6 Mos. 6 Mos. Ended Ended Unaudited 6/30/25 6/30/26 Operating Income Add: Depreciation and amortization expense $ 1,470 1,987 $ 1,947 2,140 Segment EBITDA $ 3,457 $ 4,087 Total operating revenues $ 13,975 $ 14,285 Operating Income Margin 10.5 % 13.6 % Segment EBITDA Margin 24.7 % 28.6 % Segment EBITDA - Year over year change $ 630 Segment EBITDA - Year over year change % 18.2 % Segment EBITDA Margin - Year over year change 390 bps Footnote: In the second quarter of 2026, the net assets representing Verizon's international wireline connectivity and managed network services business were classified as assets and liabilities held for sale and moved from the Business segment to Corporate and other. Where applicable, historical segment results have been reclassified to conform to the current period presentation.

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