Verizon Communications · Earnings release

News Release

FOR IMMEDIATE RELEASE

Media contacts:

Katie Magnotta

katie.magnotta@verizon.com

Jamie Serino

jamie.serino@verizon.com

Verizon delivered strong financial growth with industry-leading wireless service revenue in 1Q 2025

Customer segmentation strategy is a key driver of

successful financial performance

Verizon remains confident in full-year 2025 guidance

•Industry-leading total wireless service revenue1 of $20.8 billion

•Best wireless retail core prepaid2 net additions since the TracFone acquisition

•Continued to take broadband market share with strong demand for Fios and fixed wireless access

•Verizon exits first quarter with momentum in both mobility and broadband

NEW YORK - Verizon Communications Inc. (NYSE, Nasdaq: VZ) today reported strong financial performance for the first-quarter of 2025, fueled by innovative and segmented product offerings that meet the ever-changing needs of consumers and businesses across market sectors. The company's strategically designed portfolio of diversified wireless and broadband products and adjacent services positioned Verizon for a successful quarter, as well as resiliency in any economic environment. With a focus on growing connections and strengthening customer relationships, the company's strategic and disciplined approach drove success across its three

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priorities of growing wireless service revenue, expanding adjusted EBITDA3 and generating strong free cash flow3. Verizon remains confident in achieving its 2025 goals and delivering on its full-year guidance.

"Verizon plays an essential role in our customers’ lives and our differentiated value proposition delivers what customers want and need, on their terms," said Verizon Chairman and CEO Hans Vestberg. "We continue to drive our multi-year customer-first strategy, launching new programs such as our 3-year price lock and free phone guarantee for consumers and My Biz Plan for small and medium sized businesses. With our high quality customer base, network superiority and position of financial strength, we have the momentum and flexibility to continue innovating to meet customer needs and invest for growth."

Consolidated: Improved earnings per share (EPS), revenue and net income in first-quarter 2025, highlighting strong financials

•EPS of $1.15 in first-quarter 2025 compared to EPS of $1.09 in first-quarter 2024; adjusted EPS3, excluding special items, of $1.19 compared to $1.15 in first-quarter 2024.

•Total operating revenue of $33.5 billion in first-quarter 2025, up 1.5 percent year over year.

•Cash flow from operations totaled $7.8 billion in first-quarter 2025, up from $7.1 billion in first-quarter 2024.

•Free cash flow3 was $3.6 billion in first-quarter 2025, up from $2.7 billion in first-quarter 2024.

•Consolidated net income for first-quarter 2025 was $5.0 billion compared to $4.7 billion in first-quarter 2024. Consolidated adjusted EBITDA3 was $12.6 billion in first-quarter 2025 compared to $12.1 billion in first-quarter 2024.

•Verizon's total unsecured debt as of the end of first-quarter 2025 was $117.3 billion, compared to $117.9 billion at the end of fourth-quarter 2024 and $128.4 billion at the end of first-quarter 2024. The company's net unsecured debt3 at the end of first-quarter 2025 was $115.1 billion. At the end of first-quarter 2025, Verizon's ratio of unsecured debt to net income (LTM) was 6.4 times and net unsecured debt to consolidated adjusted EBITDA ratio3 was 2.3 times.

Mobility: Industry-leading wireless service revenue in first-quarter 2025

•Total wireless service revenue1 in first-quarter 2025 was an industry-leading $20.8 billion, up 2.7 percent year over year.

•Wireless equipment revenue of $5.4 billion in first-quarter 2025, up 0.7 percent year over year.

•Total postpaid phone net losses of 289,000 in first-quarter 2025 compared to 114,000 postpaid phone net losses in first-quarter 2024.

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Broadband: Verizon continued to take broadband market share with strong demand for best in class Fios and fixed wireless access offerings

•Total fixed wireless access net additions of 308,000 in first-quarter 2025, growing the base to over 4.8 million fixed wireless access subscribers. The company is well-positioned to achieve the next milestone of G18 to 9 million fixed wireless access subscribers by 2028.

•Fios internet net additions were 45,000 in first-quarter 2025 compared to 53,000 in first-quarter 2024.

•Total broadband connections grew to more than 12.6 million as of the end of first-quarter 2025, representing a 13.7 percent increase year over year.

Verizon Consumer: Total revenue increases year over year to $25.6 billion in first-quarter 2025, driven by service revenue gains

•Total Verizon Consumer revenue in first-quarter 2025 was $25.6 billion, an increase of 2.2 percent year over year, predominantly driven by gains in wireless service revenue.

•Consumer wireless service revenue in first-quarter 2025 was $17.2 billion, up 2.6 percent year over year.

•Consumer wireless retail postpaid churn was 1.13 percent in first-quarter 2025, and wireless retail postpaid phone churn was 0.90 percent.

•Consumer wireless postpaid average revenue per account (ARPA) of $146.46 in first-quarter 2025, an increase of 3.6 percent year over year.

•In first-quarter 2025, Consumer reported 356,000 wireless retail postpaid phone net losses compared to 194,000 postpaid phone net losses in first-quarter 2024.

•In first-quarter 2025, Consumer reported 137,000 wireless retail core prepaid2 net additions compared to 131,000 net losses in first-quarter 2024.

•Consumer reported 199,000 fixed wireless net additions and 41,000 Fios Internet net additions in first-quarter 2025. Consumer Fios revenue was $2.9 billion in first-quarter 2025.

•In first-quarter 2025, Consumer operating income was $7.4 billion, an increase of 0.7 percent year over year, and segment operating income margin was 29.0 percent, compared to 29.4 percent in first-quarter 2024. Segment EBITDA3 in first-quarter 2025 was $11.0 billion, an increase of 2.7 percent year over year. These results were driven by improvements in Consumer wireless service revenue. Segment EBITDA margin3 in first-quarter 2025 was 42.8 percent compared to 42.6 percent in first-quarter 2024.

Verizon Business: Operating income increases with strong wireless service revenue growth

•Total Verizon Business revenue was $7.3 billion in first-quarter 2025, a decrease of 1.2 percent year over year.

•Business wireless service revenue in first-quarter 2025 was $3.6 billion, an increase of 2.8 percent year over year.

•Business reported 94,000 wireless retail postpaid net additions in first-quarter 2025. This result included 67,000 postpaid phone net additions.

•Business wireless retail postpaid churn was 1.52 percent in first-quarter 2025, and wireless retail postpaid phone churn was 1.15 percent.

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•Business reported 109,000 fixed wireless net additions in first-quarter 2025.

•In first-quarter 2025, Verizon Business operating income was $664 million, an increase of 66.4 percent year over year, resulting in segment operating income margin of 9.1 percent, an increase from 5.4 percent in first-quarter 2024. Segment EBITDA3 in first-quarter 2025 was $1.7 billion, an increase of 10.3 percent year over year. Segment EBITDA margin3 in first-quarter 2025 was 23.1 percent, an increase from 20.7 percent in first-quarter 2024.

Outlook and guidance

The company does not provide a reconciliation for certain of the following adjusted (non-GAAP) forecasts because it cannot, without unreasonable effort, predict the special items that could arise, and the company is unable to address the probable significance of the unavailable information.

For 2025, Verizon continues to expect the following:

•G2Total wireless service revenue1 growth of 2.0 percent to 2.8 percent.

•G3Adjusted EBITDA3 growth of 2.0 percent to 3.5 percent.

•G4Adjusted EPS3 growth of 0 to 3.0 percent.

•G5Cash flow from operations of $35.0 billion to $37.0 billion.

•G6Capital expenditures between $17.5 billion and $18.5 billion.

•G7Free cash flow3 of $17.5 billion to $18.5 billion.

Our 2025 financial guidance does not reflect any assumptions regarding the potential impacts of the evolving tariff environment.

1 Total wireless service revenue represents the sum of Consumer and Business segments. Reflects the reclassification of recurring device protection and insurance related plan revenues from other revenue into wireless service revenue in the first quarter of 2025. Where applicable, historical results have been recast to conform to the current period presentation.

2 Represents total prepaid results excluding our SafeLink brand.

3 Non-GAAP financial measure. See the accompanying schedules and www.verizon.com/about/investors for reconciliations of non-GAAP financial measures cited in this document to most directly comparable financial measures under generally accepted accounting principles (GAAP).

Verizon Communications Inc. (NYSE, Nasdaq: VZ) powers and empowers how its millions of customers live, work and play, delivering on their demand for mobility, reliable network connectivity and security. Headquartered in New York City, serving countries worldwide and nearly all of the Fortune 500, Verizon generated revenues of $134.8 billion in 2024. Verizon’s world-class team never stops innovating to meet customers where they are today and equip them for the needs of tomorrow. For more, visit verizon.com or find a retail location at verizon.com/stores.

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Forward-looking statements

In this communication we have made forward-looking statements. These statements are based on our estimates and assumptions and are subject to risks and uncertainties. Forward-looking statements include the information concerning our possible or assumed future results of operations. Forward-looking statements also include those preceded or followed by the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,” “forecasts,” “hopes,”

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“intends,” “plans,” “targets” or similar expressions. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The following important factors, along with those discussed in our filings with the Securities and Exchange Commission (the “SEC”), could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: the effects of competition in the markets in which we operate, including the inability to successfully respond to competitive factors such as prices, promotional incentives and evolving consumer preferences; failure to take advantage of, or respond to competitors' use of, developments in technology, including artificial intelligence, and address changes in consumer demand; performance issues or delays in the deployment of our 5G network resulting in significant costs or a reduction in the anticipated benefits of the enhancement to our networks; the inability to implement our business strategy; adverse conditions in the U.S. and international economies, including inflation and changing interest rates in the markets in which we operate; changes to international trade and tariff policies and related economic and other impacts; cyberattacks impacting our networks or systems and any resulting financial or reputational impact; damage to our infrastructure or disruption of our operations from natural disasters, extreme weather conditions, acts of war, terrorist attacks or other hostile acts and any resulting financial or reputational impact; disruption of our key suppliers’ or vendors' provisioning of products or services, including as a result of geopolitical factors or the potential impacts of global climate change; material adverse changes in labor matters and any resulting financial or operational impact; damage to our reputation or brands; the impact of public health crises on our business, operations, employees and customers; changes in the regulatory environment in which we operate, including any increase in restrictions on our ability to operate our networks or businesses; allegations regarding the release of hazardous materials or pollutants into the environment from our, or our predecessors’, network assets and any related government investigations, regulatory developments, litigation, penalties and other liability, remediation and compliance costs, operational impacts or reputational damage; our high level of indebtedness; significant litigation and any resulting material expenses incurred in defending against lawsuits or paying awards or settlements; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations or adverse conditions in the credit markets affecting the cost, including interest rates, and/or availability of further financing; significant increases in benefit plan costs or lower investment returns on plan assets; changes in tax laws or regulations, or in their interpretation, or challenges to our tax positions, resulting in additional tax expense or liabilities; changes in accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings; and risks associated with mergers, acquisitions, divestitures and other strategic transactions, including our ability to consummate the proposed acquisition of Frontier Communications Parent, Inc. and obtain cost savings, synergies and other anticipated benefits within the expected time period or at all.

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Verizon Communications Inc.

Condensed Consolidated Statements of Income

(dollars in millions, except per share amounts)

Unaudited

%

Change

Operating Revenues

Service revenues and other

$

$

Wireless equipment revenues

Total Operating Revenues

Operating Expenses

Cost of services

Cost of wireless equipment

Selling, general and administrative expense

Depreciation and amortization expense

Total Operating Expenses

Operating Income

Equity in earnings (losses) of unconsolidated businesses

6

(9)

*

Other income, net

Interest expense

Income Before Provision For Income Taxes

Provision for income taxes

Net Income

$

$

Net income attributable to noncontrolling interests

$

$

Net income attributable to Verizon

Net Income

$

$

Basic Earnings Per Common Share

Net income attributable to Verizon

$

$

Weighted-average shares outstanding (in millions)

Diluted Earnings Per Common Share(1)

Net income attributable to Verizon

$

$

Weighted-average shares outstanding (in millions)

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.

* Not meaningful

Verizon Communications Inc.

Condensed Consolidated Balance Sheets

(dollars in millions)

Unaudited

$ Change

Assets

Current assets

Cash and cash equivalents

$

$

$

Accounts receivable

Less Allowance for credit losses

(8)

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

1

Other intangible assets, net

Operating lease right-of-use assets

Other assets

Total assets

$

$

$

Liabilities and Equity

Current liabilities

Debt maturing within one year

$

$

$

(4)

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

$

$

$

Verizon Communications Inc.

Consolidated - Selected Financial and Operating Statistics

(dollars in millions, except per share amounts)

Unaudited

Total debt

$

$

Unsecured debt

$

$

Net unsecured debt(1)

$

$

Unsecured debt / Consolidated Net Income (LTM)

x

x

Net unsecured debt / Consolidated Adjusted EBITDA(1)(2)

x

x

Common shares outstanding end of period (in millions)

Quarterly cash dividends declared per common share

$

$

Footnotes:

(1)Non-GAAP financial measure.

(2)Consolidated Adjusted EBITDA excludes the effects of non-operational items and special items.

(3)Number of employees on a full-time equivalent basis.

Verizon Communications Inc.

Condensed Consolidated Statements of Cash Flows

(dollars in millions)

Unaudited

$ Change

Cash Flows from Operating Activities

Net Income

$

$

$

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization expense

Employee retirement benefits

Deferred income taxes

(9)

Provision for expected credit losses

Equity in losses of unconsolidated businesses, inclusive of dividends received

6

Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses

Other, net

Net cash provided by operating activities

Cash Flows from Investing Activities

Capital expenditures (including capitalized software)

Acquisitions of wireless licenses

Other, net

Net cash used in investing activities

Cash Flows from Financing Activities

Proceeds from long-term borrowings

—

Proceeds from asset-backed long-term borrowings

Repayments of long-term borrowings and finance lease obligations

Repayments of asset-backed long-term borrowings

Dividends paid

Other, net

Net cash used in financing activities

Increase (decrease) in cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash, beginning of period

Cash, cash equivalents and restricted cash, end of period

$

$

$

Footnote:

Certain amounts have been reclassified to conform to the current period presentation.

Verizon Communications Inc.

Consumer - Selected Financial Results

(dollars in millions)

Unaudited

%

Change

Operating Revenues

Service(1)

$

$

Wireless equipment

Other(1)

Total Operating Revenues

Operating Expenses

Cost of services

Cost of wireless equipment

Selling, general and administrative expense

Depreciation and amortization expense

Total Operating Expenses

Operating Income

$

$

Operating Income Margin

%

%

Segment EBITDA(2)

$

$

Segment EBITDA Margin(2)

%

%

Footnotes:

(1) Reflects the reclassification of recurring device protection and insurance related plan revenues from Other revenue into Wireless service revenue in the first quarter of 2025. Where applicable, historical results have been recast to conform to the current period presentation.

(2) Non-GAAP financial measure.

The segment financial results and metrics 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.

Verizon Communications Inc.

Consumer - Selected Operating Statistics

Unaudited

% Change

Wireless retail

Wireless retail postpaid

Wireless retail postpaid phone

Wireless retail core prepaid(1)

Fios video

Fios internet

Fixed wireless access (FWA) broadband

Wireline broadband

Total broadband

Unaudited

%

Change

Gross Additions (‘000):

Wireless retail postpaid

Wireless retail postpaid phone

Net Additions Detail (‘000):

Wireless retail

Wireless retail postpaid

*

Wireless retail postpaid phone

Wireless retail core prepaid(1)

*

Fios video

Fios internet

FWA broadband

Wireline broadband

Total broadband

Churn Rate:

Wireless retail

%

%

Wireless retail postpaid

%

%

Wireless retail postpaid phone

%

%

Wireless retail core prepaid(1)

%

%

Revenue Statistics (in millions):

Wireless service revenue(2)

$

$

Fios revenue

$

$

—

Verizon Communications Inc.

Consumer - Selected Operating Statistics (continued)

Unaudited

%

Change

Other Wireless Statistics:

Wireless retail postpaid ARPA(2)(3)

$

$

Wireless retail postpaid upgrade rate

%

%

Wireless retail postpaid accounts (‘000)(4)

Wireless retail postpaid connections per account(4)

Wireless retail core prepaid ARPU(5)

$

$

Footnotes:

(1) Represents total prepaid results excluding our SafeLink brand.

(2) Reflects the reclassification of recurring device protection and insurance related plan revenues from Other revenue into Wireless service revenue in the first quarter of 2025. Where applicable, historical results have been recast to conform to the current period presentation.

(3) Wireless retail postpaid ARPA - average service revenue per account from retail postpaid accounts.

(4) Statistics presented as of end of period.

(5) 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 the reclassification of connections associated with Verizon’s second number offering, migration activity among different types of devices and plans, customer profile changes, and adjustments in connection with mergers, acquisitions and divestitures. Where applicable, historical results have been recast to conform to the current period presentation.

Certain intersegment transactions with corporate entities have not been eliminated.

* Not meaningful

Verizon Communications Inc.

Business - Selected Financial Results

(dollars in millions)

Unaudited

%

Change

Operating Revenues

Enterprise and Public Sector

$

$

Business Markets and Other

Wholesale

Total Operating Revenues

Operating Expenses

Cost of services

Cost of wireless equipment

Selling, general and administrative expense

Depreciation and amortization expense

Total Operating Expenses

Operating Income

$

$

Operating Income Margin

%

%

Segment EBITDA(1)

$

$

Segment EBITDA Margin(1)

%

%

Footnotes:

(1) Non-GAAP financial measure.

The segment financial results and metrics 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.

Verizon Communications Inc.

Business - Selected Operating Statistics

Unaudited

%

Change

Wireless retail postpaid

Wireless retail postpaid phone

Fios video

Fios internet

FWA broadband

Wireline broadband

Total broadband

Unaudited

%

Change

Gross Additions (‘000):

Wireless retail postpaid

Wireless retail postpaid phone

Net Additions Detail (‘000):

Wireless retail postpaid

Wireless retail postpaid phone

Fios video

(2)

(2)

—

Fios internet

4

4

—

FWA broadband

Wireline broadband

—

(1)

*

Total broadband

Churn Rate:

Wireless retail postpaid

%

%

Wireless retail postpaid phone

%

%

Revenue Statistics (in millions):

Wireless service revenue(1)

$

$

Fios revenue

$

$

Other Operating Statistics:

Wireless retail postpaid upgrade rate

%

%

Footnotes:

(1) Reflects the reclassification of recurring device protection and insurance related plan revenues from Other revenue into Wireless service revenue in the first quarter of 2025. Where applicable, historical results have been recast to conform to the current period presentation.

Where applicable, the operating results reflect certain adjustments, including those related to the reclassification of connections associated with Verizon’s second number offering, migration activity among different types of devices and plans, customer profile changes, and adjustments in connection with mergers, acquisitions and divestitures. Where applicable, historical results have been recast to conform to the current period presentation.

Certain intersegment transactions with corporate entities have not been eliminated.

* Not meaningful

Verizon Communications Inc.

Supplemental Information - Total Wireless Operating and Financial Statistics

The following supplemental schedule contains certain financial and operating metrics which reflect an aggregation of our Consumer and Business segments’ wireless results.

Unaudited

% Change

Retail

Retail postpaid

Retail postpaid phone

Retail core prepaid(1)

Unaudited

%

Change

Net Additions Detail (‘000)

Retail

*

Retail postpaid

*

Retail postpaid phone

*

Retail core prepaid(1)

*

Account Statistics

Retail postpaid accounts (‘000)(2)

Retail postpaid connections per account(2)

Retail postpaid ARPA(3)(6)

$

$

Retail core prepaid ARPU(4)

$

$

Churn Detail

Retail

%

%

Retail postpaid

%

%

Retail postpaid phone

%

%

Retail core prepaid(1)

%

%

Retail Postpaid Connection Statistics

Upgrade rate

%

%

Revenue Statistics (in millions)(5)

FWA revenue

$

$

Wireless service(6)

$

$

Wireless equipment

Wireless other(6)

Total Wireless

$

$

Footnotes:

(1) Represents total prepaid results excluding our SafeLink brand.

(2) Statistics presented as of end of period.

(3) Wireless retail postpaid ARPA - average service revenue per account from retail postpaid accounts.

(4) Wireless retail core prepaid ARPU - average service revenue per unit from retail prepaid connections excluding our SafeLink brand.

(5) Intersegment transactions between Consumer or Business segment with corporate entities have not been eliminated.

(6) Reflects the reclassification of recurring device protection and insurance related plan revenues from Other revenue into Wireless service revenue in the first quarter of 2025. Where applicable, historical results have been recast to conform to the current period presentation.

Where applicable, the operating results reflect certain adjustments, including those related to the reclassification of connections associated with Verizon’s second number offering, migration activity among different types of devices and plans, customer profile changes, and adjustments in connection with mergers, acquisitions and divestitures. Where applicable, historical results have been recast to conform to the current period presentation.

* Not meaningful

Verizon Communications Inc.

Non-GAAP Reconciliations - Consolidated Verizon

Consolidated EBITDA and Consolidated Adjusted EBITDA

(dollars in millions)

Unaudited

Consolidated Net Income

$

$

$

$

$

Add:

Provision for income taxes

Interest expense

Depreciation and amortization expense(1)

Consolidated EBITDA

$

$

$

$

$

Add/(subtract):

Other (income) expense, net(2)

$

$

$

$

$

Equity in (earnings) losses of unconsolidated businesses

(6)

6

9

Severance charges

—

—

—

—

Asset and business rationalization

—

—

—

—

Legacy legal matter

—

—

—

—

Consolidated Adjusted EBITDA

$

$

$

$

$

Footnotes:

(1) Includes Amortization of acquisition-related intangible assets.

(2) Includes Pension and benefits remeasurement adjustments, where applicable.

Consolidated EBITDA and Consolidated Adjusted EBITDA (LTM)

(dollars in millions)

Unaudited

Consolidated Net Income

$

$

Add:

Provision for income taxes

Interest expense

Depreciation and amortization expense(1)

Consolidated EBITDA

$

$

Add/(subtract):

Other income, net(2)

$

$

Equity in losses of unconsolidated businesses

Severance charges

Asset and business rationalization

Legacy legal matter

—

Consolidated Adjusted EBITDA

$

$

Footnotes:

(1) Includes Amortization of acquisition-related intangible assets.

(2) Includes Pension and benefits remeasurement adjustments, where applicable.

Verizon Communications Inc.

Net Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio

(dollars in millions)

Unaudited

Debt maturing within one year

$

$

$

Long-term debt

Total Debt

Less Secured debt

Unsecured Debt

Less Cash and cash equivalents

Net Unsecured Debt

$

$

$

Consolidated Net Income (LTM)

$

$

Unsecured Debt to Consolidated Net Income Ratio

x

x

Consolidated Adjusted EBITDA (LTM)

$

$

Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio

x

x

Adjusted Earnings per Common Share (Adjusted EPS)

(dollars in millions, except per share amounts)

Unaudited

Pre-tax

Tax

After-Tax

Pre-tax

Tax

After-Tax

EPS

$

$

Amortization of acquisition-related intangible assets

$

$

$

$

$

$

Legacy legal matter

—

—

—

—

$

$

$

$

$

$

$

$

Adjusted EPS

$

$

Footnote:

Adjusted EPS may not add due to rounding.

Free Cash Flow

(dollars in millions)

Unaudited

Net Cash Provided by Operating Activities

$

$

Capital expenditures (including capitalized software)

Free Cash Flow

$

$

Free Cash Flow Forecast

(dollars in millions)

Unaudited

Net Cash Provided by Operating Activities Forecast

$

Capital expenditures forecast (including capitalized software)

Free Cash Flow Forecast

$

Verizon Communications Inc.

Non-GAAP Reconciliations - Segments

Segment EBITDA and Segment EBITDA Margin

Consumer

(dollars in millions)

Unaudited

Operating Income

$

$

Add Depreciation and amortization expense

Segment EBITDA

$

$

Year over year change %

%

Total operating revenues

$

$

Operating Income Margin

%

%

Segment EBITDA Margin

%

%

Business

(dollars in millions)

Unaudited

Operating Income

$

$

Add Depreciation and amortization expense

Segment EBITDA

$

$

Year over year change %

%

Total operating revenues

$

$

Operating Income Margin

%

%

Segment EBITDA Margin

%

%