Verizon reports postpaid losses, but also higher revenue and a boosted free cash flow guidance
Verizon delivered better-than-expected results in the second quarter of 2025, posting solid revenue growth and raising its full-year guidance across multiple key metrics. The telecom giant cited strength in wireless and broadband performance, cost discipline and improved customer retention in markets with advanced C-band deployment.
Total revenue for the quarter reached $34.5 billion, up 5.2% year-over-year. Adjusted EBITDA rose to $12.8 billion, a 4.1% increase from the year prior. Free cash flow for the first half of 2025 was a standout at $8.8 billion, up 3.6% year-over-year. As a result, Verizon raised its full-year free cash flow guidance to a range of $19.5 billion to $20.5 billion, up from the prior $17.5–18.5 billion range.
“Our performance in the first half of the year, highlighted by a strong second quarter, demonstrates that our strategy is working,” said Verizon CEO Hans Vestberg on the earnings call.
Wireless resilience and broadband momentum
Verizon’s wireless service revenue climbed 2.2% year-over-year to $20.9 billion. Despite reporting a net loss of 9,000 postpaid phone subscribers — a number better than many analysts expected — the company saw notable strength in prepaid services, adding 50,000 customers after a year-ago loss of 12,000.
The broadband business also continued to gain ground, with 293,000 total net additions, including 278,000 fixed wireless access (FWA) subscribers. Verizon’s FWA customer base has now exceeded 5 million. Equipment revenue surged 25% year-over-year to $6.3 billion, reflecting strong device sales and promotional traction.
“Our fixed wireless base has surpassed 5 million subscribers… keeping us firmly on the track to achieve our goal of 8 million to 9 million subscribers by 2028,” said Vestberg.
In a press release, Verizon noted that it also remains on track to reach 650,000 new passings in 2025 as part of its Fios footprint expansion.
Verizon Business revenue dips, but operating income grows
The Verizon Business segment delivered a strong operational performance, even as topline revenue dipped slightly. Total revenue was $7.3 billion, down 0.3% year-over-year, while business wireless service revenue rose 1.6% to $3.6 billion.
More importantly, operating income for Verizon Business rose 27.6% year-over-year to $638 million, fueled by customer growth and improved profitability.
The unit added 65,000 wireless retail postpaid net subscribers, including 42,000 phone net additions. Churn remained steady, with business wireless retail postpaid churn at 1.61% and postpaid phone churn at 1.26%.
C-Band buildout, AI and convergence
Verizon emphasized the progress of its network enhancements and digital transformation strategy. The company’s accelerated C-band deployment is a key part of its customer retention and growth story. “C-band deployment is ahead of schedule,” said Vestberg.
CFO Tony Skiadas added: “We’re going to get to 80% to 90% of C-band this year… and we see lower churn where C-band is deployed.”
Verizon is also leaning into AI to streamline customer service and reduce churn. Skiadas noted the company’s customer experience (CX) launch in late June as part of its broader digital transformation. “That work is also augmented by AI, and we expect to see improvements there… convergence will also reduce mobility churn,” Skiadas said.
Forward outlook
With momentum in wireless, broadband and business services, Verizon remains focused on long-term growth through advanced network capabilities and emerging enterprise opportunities.
“We are committed to growing wireless service revenue, expanding adjusted EBITDA and generating strong free cash flow,” said Vestberg, adding later: “We’re scaling our next-generation platforms, from capturing new enterprise opportunities with private networks to enabling AI at scale.”
Looking ahead, Verizon will continue to face pressure on subscriber metrics as competition remains fierce. However, its focus on broadband expansion, disciplined cost controls and high-margin business services offers a compelling growth path.
For Verizon’s Q1 2025 results, read this article.
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