‘Verizon is clearly falling short of our potential,’ declared new CEO Dan Schulman
Verizon reported its third-quarter 2025 earnings, reaffirming full-year guidance and highlighting steady wireless service growth alongside new fiber expansion plans and a candid appraisal from its recently appointed CEO.
Quarterly highlights
Verizon’s total revenue rose 1.5% year-over-year to $33.8 billion. Operating cash flow for the first nine months reached $28 billion, up from $26.5 billion a year earlier, while free cash flow climbed to $15.8 billion, compared with $14.5 billion in the prior period. Wireless retail postpaid phone churn remained low at 0.91%, with overall retail postpaid churn at 1.12%. Average revenue per account (ARPA) increased 2% to $147.91. Verizon added 47,000 prepaid subscribers, slightly below the 50,000 gained in Q2.
Segment performance
The consumer segment generated $26.1 billion in revenue, up 2.9% year-over-year. Consumer wireless service revenue rose 2.4% to $17.4 billion, supported by 306,000 broadband net adds. Fixed wireless subscriptions grew to nearly 5.4 million, while Fios fiber broadband posted its strongest quarterly performance in two years with 61,000 net additions.
On the investor call, CFO Anthony Skiadas said the company’s recently announced strategic fiber partnership with Tillman Global Holdings would extend Verizon’s Fios footprint beyond its traditional markets. “The agreement combines Tillman’s network design, build, and operations capabilities with Verizon’s scale, distribution strength, and brand power,” Skiadas said, adding that the deal will “expand our Fios business to new places across the country.”
The business segment reported $7.1 billion in revenue, down 2.8% year-over-year, though wireless service revenue edged up 0.7% to $3.6 billion. The unit added 110,000 retail postpaid subscribers, with operating income up 12.7% to $637 million.
However, Verizon lost 7,000 individual postpaid subscribers during the quarter — a reversal from the 18,000 adds a year ago. For comparison, T-Mobile US added 1 million customers in the same category — its strongest Q3 in over a decade — while AT&T saw only about 1% growth.
Outlook and strategic focus
Verizon reaffirmed its full-year 2025 guidance, expecting:
- Wireless service revenue growth of 2.0%–2.8%
- Adjusted EBITDA growth of 2.5%–3.5%
- Adjusted EPS growth of 1.0%–3.0%
- Operating cash flow between $37–39 billion
- Free cash flow of $19.5–20.5 billion
Capital spending will stay within or below $17.5–18.5 billion.
New CEO Dan Schulman acknowledged the company’s challenges and outlined a transformation agenda: “When I look at our performance objectively, Verizon is clearly falling short of our potential,” he said. “Our primary objective is to build loyalty and drive significant improvements in retention … Verizon will no longer be the hunting ground for competitors looking to gain share. We are reinventing how we operate to make Verizon more agile and efficient.”
Schulman also emphasized convergence as a key growth lever, citing the pending Frontier Communications acquisition. “[The deal] will enable us to serve approximately 29 million fiber passings, creating a massive cross-sell opportunity,” he said. “We will continue to expand our fiber footprint through our own build and with strategic partnerships.”
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