Despite losing 356,000 postpaid phone subscribers, Verizon posts record EBITDA and reaffirms 2025 outlook
Verizon posted strong financial results for the first quarter of 2025, bolstered by strategic consumer initiatives, continued broadband growth and disciplined cost management. The telec reported its best-ever adjusted EBITDA and demonstrated confidence in its full-year guidance, despite economic uncertainty and evolving tariff risks.
Strong financial start to 2025
Adjusted EBITDA rose to a record $12.6 billion, a 4% year-over-year increase, while wireless service revenue grew 2.7%, hitting the high end of guidance. Free cash flow surged by more than $900 million to $3.6 billion, allowing continued investment in the business, dividend support and debt reduction. Adjusted EPS climbed 3.5% to $1.19. CFO Tony Skiadas credited the gains to revenue growth and operating efficiencies, including a successful voluntary separation program.
Consumer transformation and growth
Executive Vice President Sampath Sowmyanarayan said on the investor call that Verizon’s revamped consumer playbook is paying off. The recently launched “Verizon Value Guarantee” — featuring a three-year price lock and a free phone trade-in — drove double-digit gross add growth in April.
“Higher churn can be largely attributed [to pricing changes] and [are] isolated,” said Sowmyanarayan, who noted that Verizon expects churn to stabilize in the second half of the year. While postpaid phone losses totaled 356,000 for the quarter, prepaid additions hit 137,000 — the strongest since the TracFone acquisition.
“We’re back to leading the market, not reacting to it,” he commented.
CEO Hans Vestberg emphasized the company’s focus on delivering targeted connectivity across segments. Over the past two years, Verizon has rolled out targeted plans like myPlan and myHome, expanded value-added perks — such as exclusive streaming discounts on platforms like Netflix and Max — and continued investing in AI-powered customer care and personalization.
“Given the size and quality of our base, and the scale of our distribution network, we offer rates customers can’t find anywhere else… This holistic approach ensures that we remain competitive in the marketplace and drive sustainable subscriber and financial growth,” he said, further noting a recent brand refresh as part of its broader strategy to deepen engagement and foster long-term loyalty, positioning the company for continued growth.
Broadband momentum and convergence strategy
Verizon added 339,000 broadband subscribers in Q1, driven by strong uptake in both fixed wireless access (FWA) and Fios fiber services. CEO Hans Vestberg highlighted the company’s multi-pronged broadband strategy, which aims to reach more than 100 million premises in the coming years. Verizon is ahead of plan on its 2025 goal of 650,000 new Fios passings and continues to scale its FWA service.
Vestberg also underscored the importance of convergence — bundling broadband with wireless services — as a long-term loyalty and retention play. Converged customers, he said, show significantly lower churn rates, validating the company’s strategy.
Enterprise and emerging tech growth
Verizon’s business segment also showed signs of strength, with 67,000 business postpaid net adds despite headwinds from federal account reductions. The company’s private 5G networks and IoT services continued to expand, with new wins including AdventHealth, Nucor and the Atlanta Hawks.
AI Connect, Verizon’s emerging offering combining edge compute and artificial intelligence capabilities, is seeing growing customer interest and ecosystem expansion. Verizon’s focus on leveraging its existing fiber and edge assets to unlock new revenue streams remains a key pillar of its growth strategy.
Cautious but confident outlook
Despite lingering concerns over consumer sentiment and potential tariff impacts, Verizon remains confident in its 2025 outlook. Leadership emphasized that only “a very small portion” of its $18 billion capital budget is exposed to tariffs, and reiterated that handset tariff costs would not be absorbed by the company. “But again, it’s too early to say. We don’t know where tariff[s] [are] going to go,” he admitted.
