Verizon Communications Inc.NYSE: VZ

2Q 2026 Earnings Conference Call Financial & Operating Information

Jul 24, 2026 at 11:18 AM UTC · Issued by Verizon Communications Inc.

Watch Verizon Communications explain itVerizon Communications Inc. (VZ) Q2 2026 Earnings Call · Replay · Jul 24

‌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
Net income attributable to noncontrolling	$ 443	$ 104	$ 118	$ 106	$ 106	$ 434	$ 101	$ 114	$ 215
interests	$ 443	$ 104	$ 118	$ 106	$ 106	$ 434	$ 101	$ 114	$ 215
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.

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: