Verizon's Q3 2025 Results Show Steady Growth Amidst Strategic Pivot
Highlights
- Revenue: $33.8 billion (+1.5% YoY)
- Wireless service revenue growth: $400 million YoY
- Postpaid phone gross additions: +8.4% YoY
- Prepaid net additions: 47,000
- Broadband net additions: 306,000
- Consolidated adjusted EBITDA: $12.8 billion (+2.3% YoY)
- Adjusted EPS: $1.21 (+1.7% YoY)
- Free cash flow: $7 billion (+17% YoY)
- Dividend increase: 19th consecutive year
- Net unsecured debt: $112 billion (reduction of $9.4 billion YoY)
Verizon's third quarter of 2025 brought a stable yet pivotal performance in both its financial metrics and strategic orientation. Under the new leadership of CEO Dan Schulman, the company seeks to enhance its customer-centric approach while consolidating its finances and expanding its broadband footprint.
Strength in Revenue and Subscriber Growth
Verizon reported a revenue of $33.8 billion for the quarter, marking a 1.5% increase from the previous year, bolstered by a $400 million increase in wireless service revenue. Despite facing challenges in postpaid phone net losses due to churn, the company managed a 8.4% increase in postpaid phone gross additions year-over-year. Meanwhile, the prepaid segment demonstrated resilience with 47,000 net additions, marking the fifth consecutive quarter of positive growth.
Broadband Expansion and Business Services
The broadband segment experienced robust growth with 306,000 net additions, lifting the overall broadband base to 13.2 million subscribers. The Fios internet achieved its best quarterly growth in two years with 61,000 net additions. The business sector also reflected positive demand, adding 51,000 phone net additions, thanks to sustained interest from small to medium businesses and large enterprises.
Financial Performance and Strategic Investments
Financially, Verizon's adjusted EBITDA reached $12.8 billion, up 2.3% from the previous year, and adjusted EPS climbed to $1.21, a 1.7% increase. Free cash flow impressively rose by 17% to $7 billion, underscoring Verizon's robust cash generation capabilities. The company has successfully raised its dividend for the 19th consecutive year, reinforcing its commitment to shareholder returns.
Furthermore, Verizon has continued to focus on its debt reduction strategy, bringing net unsecured debt down to $112 billion, marking a $9.4 billion improvement from the previous year, and maintaining a strong leverage ratio.
Strategic Direction: Focusing on Convergence and Cost Efficiency
CEO Dan Schulman emphasized a strategic shift towards a more customer-centric growth model while maintaining financial discipline. Verizon plans to leverage emerging technologies and services, notably with its forthcoming acquisition of Frontier, expected to augment its broadband convergence strategy and expand its fiber reach significantly.
The company is also focused on substantial cost savings and efficiency, balancing its operational cost reductions with strategic investments, particularly in the fiber and fixed wireless domains.
In summary, Verizon's Q3 2025 results demonstrate a year of transformation and steady ascent in its financial and operational metrics. As it pivots towards a more integrated, customer-first approach, it aims to consolidate its market position while continuing to provide value to its shareholders.