Verizon Communications Inc. (NYSE: VZ)

Verizon reported solid financial performance in Q1 2025, with improvements across key financial metrics. Total revenue increased 1.5% year-over-year to $33.5 billion, while net income rose 6.4% to $5.0 billion. Earnings per share improved 5.5% to $1.15, and adjusted EPS grew 3.5% to $1.19. Operating cash flow showed strong improvement, increasing 9.9% to $7.8 billion, and free cash flow surged 33.3% to $3.6 billion. These results demonstrate Verizon's ability to drive profitable growth through its customer-centric strategy and disciplined financial management.

Verizon's Consumer segment continued to drive overall growth with a 2.2% increase in revenue to $25.6 billion, primarily due to wireless service revenue gains of 2.6%. Despite postpaid phone losses, the Consumer segment saw strong performance in prepaid, fixed wireless access, and Fios Internet. The Business segment demonstrated substantial profitability improvements, with operating income surging 66.4% and EBITDA increasing 10.3%, despite a slight 1.2% revenue decline. Business wireless service revenue grew 2.8%, and the segment added 67,000 postpaid phone customers, highlighting Verizon's strengthening position in the enterprise market.

Verizon continues to lead the industry in wireless service revenue, growing 2.7% year-over-year to $20.8 billion. While the company experienced postpaid phone net losses of 289,000, it saw strong gains in the prepaid segment. The broadband business remained a bright spot with 339,000 total net additions, driven primarily by 308,000 fixed wireless access net additions. The fixed wireless access subscriber base has now reached 4.8 million, positioning Verizon well to achieve its next milestone of 8 to 9 million subscribers by 2028. Fios Internet also contributed with 45,000 net additions, demonstrating the strength of Verizon's multi-faceted broadband strategy.

Verizon demonstrated strong financial discipline and cash generation in Q1 2025. Operating cash flow increased 9.9% year-over-year to $7.8 billion, while free cash flow surged 33.3% to $3.6 billion. The company continued to reduce its debt levels, with total unsecured debt decreasing to $117.3 billion, down from $128.4 billion a year ago, representing an 8.6% reduction. The net unsecured debt to adjusted EBITDA ratio stands at 2.3x, indicating a solid balance sheet with improving leverage metrics. This financial strength provides Verizon with the flexibility to invest in growth initiatives while maintaining its commitment to shareholder returns.