Regardless of dropping 356,000 postpaid telephone subscribers, Verizon posts document EBITDA and reaffirms 2025 outlook
Verizon posted sturdy monetary outcomes for the primary quarter of 2025, bolstered by strategic shopper initiatives, continued broadband progress and disciplined value administration. The telecom big reported its best-ever adjusted EBITDA and reaffirmed confidence in its full-year steerage, regardless of macroeconomic uncertainty and evolving tariff dangers.
Robust monetary begin to 2025
Adjusted EBITDA rose to a document $12.6 billion, a 4% year-over-year enhance, whereas wi-fi service income grew 2.7%, hitting the excessive finish of steerage. Free money movement surged by greater than $900 million to $3.6 billion, permitting continued funding within the enterprise, dividend assist, and debt discount. Adjusted EPS climbed 3.5% to $1.19. CFO Tony Skiadas credited the good points to income progress and working efficiencies, together with a profitable voluntary separation program.
Shopper transformation and progress
Govt Vice President Sampath Sowmyanarayan mentioned on the investor name that Verizon’s revamped shopper playbook is paying off. The not too long ago launched “Verizon Worth Assure” — that includes a three-year value lock and a free telephone trade-in — drove double-digit gross add progress in April.
“Larger churn will be largely attributed [to pricing changes] and [are] remoted,” mentioned Sowmyanarayan, who famous that Verizon expects churn to stabilize within the second half of the 12 months. Whereas postpaid telephone losses totaled 356,000 for the quarter, pay as you go additions hit 137,000 — the strongest since the TracFone acquisition.
“We’re again to main the market, not reacting to it,” he commented.
CEO Hans Vestberg emphasised the corporate’s deal with delivering focused connectivity throughout segments. Over the previous two years, Verizon has rolled out focused plans like myPlan and myHome, expanded value-added perks — corresponding to unique streaming reductions on platforms like Netflix and Max — and continued investing in AI-powered buyer care and personalization.
“Given the dimensions and high quality of our base, and the dimensions of our distribution community, we provide charges prospects can’t discover anyplace else… This holistic method ensures that we stay aggressive within the market and drive sustainable subscriber and monetary progress,” he mentioned, additional noting a current model refresh as a part of its broader technique to deepen engagement and foster long-term loyalty, positioning the corporate for continued progress.
Broadband momentum and convergence technique
Verizon added 339,000 broadband subscribers in Q1, pushed by sturdy uptake in each mounted wi-fi entry (FWA) and Fios fiber providers. CEO Hans Vestberg highlighted the corporate’s multi-pronged broadband technique, which goals to achieve greater than 100 million premises within the coming years. Verizon is forward of plan on its 2025 aim of 650,000 new Fios passings and continues to scale its FWA service.
Vestberg additionally underscored the significance of convergence — bundling broadband with wi-fi providers — as a long-term loyalty and retention play. Converged prospects, he mentioned, present considerably decrease churn charges, validating the corporate’s technique.
Enterprise and rising tech progress
Verizon’s enterprise section additionally confirmed indicators of power, with 67,000 enterprise postpaid internet provides regardless of headwinds from federal account reductions. The corporate’s personal 5G networks and IoT providers continued to develop, with new wins together with AdventHealth, Nucor and the Atlanta Hawks.
AI Join, Verizon’s rising providing combining edge compute and synthetic intelligence capabilities, is seeing rising buyer curiosity and ecosystem growth. Verizon’s deal with leveraging its current fiber and edge belongings to unlock new income streams stays a key pillar of its progress technique.
Cautious however assured outlook
Regardless of lingering considerations over shopper sentiment and potential tariff impacts, Verizon stays assured in its 2025 outlook. Management emphasised that solely “a really small portion” of its $18 billion capital finances is uncovered to tariffs, and reiterated that handset tariff prices wouldn’t be absorbed by the corporate. “However once more, it’s too early to say. We don’t know the place tariff[s] [are] going to go,” he admitted.
