What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2025-07-25 compared with 2025-04-25 · 201 added, 140 removed, 496 unchanged (41% of the section changed)

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We believe that our C-Band spectrum, together with our industry leading millimeter wave spectrum holdings and our 4G Long-Term Evolution (LTE) network and fiber infrastructure, will drive innovative products and services and fuel our growth.

Highlights of Our Financial Results for the Three Months Ended March 31, 2025 and 2024

Highlights of Our Financial Results for the Three Months Ended June 30, 2025 and 2024

(dollars in millions)

Highlights of Our Financial Results for the Six Months Ended June 30, 2025 and 2024

(dollars in millions)

Business Overview

We have two reportable segments that we operate and manage as strategic business units - Verizon Consumer Group (Consumer) and Verizon Business Group (Business).

Revenue by Segment for the Three Months Ended March 31, 2025 and 2024

Revenue by Segment for the Three Months Ended June 30, 2025 and 2024

Revenue by Segment for the Six Months Ended June 30, 2025 and 2024

Excludes eliminations.

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In addition to wireless services and equipment for retail customers, the Consumer segment sells residential fixed connectivity solutions, including internet, video and voice services, and wireless network access to resellers on a wholesale basis.

The Consumer segment's operating revenues for the three months ended March 31, 2025 totaled $25.6 billion, representing an increase of 2.2% compared to the similar period in 2024.

The Consumer segment's operating revenues for the three and six months ended June 30, 2025 totaled $26.6 billion and $52.3 billion, respectively, representing an increase of 6.9% and 4.6%, respectively, compared to the similar periods in 2024.

See "Segment Results of Operations" for additional information regarding our Consumer segment’s operating performance and selected operating statistics.

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and a subset of these products and services to customers around the world.

The Business segment's operating revenues for the three months ended March 31, 2025 totaled $7.3 billion, representing a decrease of 1.2% compared to the similar period in 2024.

The Business segment's operating revenues for the three and six months ended June 30, 2025 totaled $7.3 billion and $14.6 billion, respectively, representing a decrease of 0.3% and 0.8%, respectively, compared to the similar periods in 2024.

See "Segment Results of Operations" for additional information regarding our Business segment’s operating performance and selected operating statistics.

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We continue to invest in our wireless networks, high-speed fiber and other advanced technologies to position ourselves at the center of growth trends for the future.

During the three months ended March 31, 2025, these investments included $4.1 billion for capital expenditures.

During the six months ended June 30, 2025, these investments included $8.0 billion for capital expenditures.

See "Cash Flows Used in Investing Activities" for additional information.

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provider of broadband internet and other communication services, as part of our fiber expansion strategy, and we expect to increase the capital expenditures we devote to our fiber networks in 2025.

Recent Developments

On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was enacted.

The OBBBA revises the U.S.

federal corporate income tax by, among other things, making permanent 100% bonus depreciation on qualified fixed assets, making permanent the immediate deduction for domestic research and experimentation expenses, and permanently changing the limitation on the deduction of business interest expense to 30% of Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA).

Verizon does not anticipate the provisions of the OBBBA will have a material impact on its effective income tax rate.

We currently estimate that these provisions will both decrease our 2025 cash income tax liability and increase our deferred tax liability by $1.5 billion to $2.0 billion by December 31, 2025.

We continue to analyze the effects of the OBBBA on our consolidated financial statements.

Tariffs and Other Government Initiatives

government recently announced tariffs on goods imported from various countries to the U.S.

Earlier this year, the U.S.

government announced tariffs on goods imported from various countries to the U.S.

Countries subject to such tariffs have imposed or may in the future impose reciprocal or retaliatory tariffs and other trade measures.

We are actively monitoring the tariff developments and analyzing the potential impacts on our business, cost structure, supply chain and broader economic environment.

We continue to actively monitor the tariff developments and analyze their potential impacts on our business, cost structure, supply chain and broader economic environment.

We are also working closely with our strategic suppliers to manage the potential impacts.

In addition, the U.S.

presidential administration is seeking to implement significant changes to the size and scope of the federal government, which may include reduction of the federal government workforce, changes in budgetary priorities and other cost efficiency measures.

We began seeing some impact from these efforts in our federal government business in the first quarter of 2025.

presidential administration is implementing significant changes to the size and scope of the federal government, including a reduction of the federal government workforce, changes in budgetary priorities and other cost efficiency measures.

states have launched similar initiatives.

We began seeing some negative impacts from these efforts in our business with public sector customers in the first quarter of 2025, and these impacts increased in the second quarter.

While these developments have not had a material impact on our financial condition or results of operations to date, due to their evolving nature, we cannot predict with certainty the ultimate impacts they may have on our business and results in the future but those impacts could be material.

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Consolidated Operating Revenues

Three Months Ended

March 31, Increase/

Three Months Ended Six Months Ended

June 30, Increase/(Decrease) June 30, Increase/

(dollars in millions) 2025 2024 2025 2024 (Decrease)

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Consolidated Operating Revenues $ 34,504 $ 32,796 $ 1,708 5.2 $ 67,989 $ 65,777 $ 2,212 3.4

Consolidated operating revenues increased during the three months ended March 31, 2025 compared to the similar period in 2024 primarily due to revenue increases in our Consumer segment, partially offset by revenue decreases in our Business segment.

Consolidated operating revenues increased during both the three and six months ended June 30, 2025 compared to the similar periods in 2024 primarily due to revenue increases in our Consumer segment, partially offset by revenue decreases in our Business segment.

Revenues for our segments are discussed separately below under the heading "Segment Results of Operations."

Consolidated Operating Expenses

Three Months Ended

March 31, Increase/

Three Months Ended Six Months Ended

June 30, Increase/(Decrease) June 30, Increase/

(dollars in millions) 2025 2024 2025 2024 (Decrease)

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Aggregate customer service costs, which include billing and service provisioning, are allocated between Cost of services and Selling, general and administrative expense.

Cost of services remained relatively flat during the three months ended March 31, 2025 compared to the similar period in 2024.

Cost of services remained relatively flat during both the three and six months ended June 30, 2025 compared to the similar periods in 2024.

Cost of Wireless Equipment

Cost of wireless equipment increased during the three months ended March 31, 2025 compared to the similar period in 2024 primarily due to an increase of $201 million driven by a shift to higher priced equipment in the mix of wireless devices sold.

Cost of wireless equipment increased during both the three and six months ended June 30, 2025 compared to the similar periods in 2024 primarily due to:

• an increase of $1.1 billion and $1.2 billion , respectively, driven by a higher volume of wireless devices sold primarily related to an increase of 31% and 14%, respectively, in upgrades;

• an increase of $284 million and $390 million, respectively, driven by a shift to higher priced equipment in the mix of wireless devices sold.

Selling, General and Administrative Expense

Selling, general and administrative expense includes salaries and wages and benefits not directly attributable to a service or product, the provision for credit losses, taxes other than income taxes, advertising and sales commission costs, call center and information technology costs, regulatory fees, professional service fees and rent and utilities for administrative space.

Also included is a portion of the aggregate customer care costs as discussed above in "Cost of Services."

Selling, general and administrative expense decreased during the three months ended March 31, 2025 compared to the similar period in 2024 primarily due to:

Selling, general and administrative expense decreased during both the three and six months ended June 30, 2025 compared to the similar periods in 2024.

The decrease during the three months ended June 30, 2025 was primarily due to:

• a decrease of $139 million related to lower costs for device insurance programs primarily due to a decrease in claims;

• a decrease of $65 million in personnel costs related to workforce changes primarily due to the voluntary separation program that was announced in June of 2024 and completed in March of 2025.

The decrease during the six months ended June 30, 2025 was primarily as a result of:

• a decrease of $227 million in personnel costs related to workforce changes primarily due to the voluntary separation program that was announced in June of 2024 and completed in March of 2025 ;

• a decrease of $215 million related to lower costs for device insurance programs primarily due to a decrease in claims;

• a decrease of $106 million related to a legacy legal matter from 2024 that did not reoccur;

• an increase of $80 million in advertising costs related to various marketing campaigns in the first half of 2025.

See "Special Items" for additional information on the legacy legal matter.

Depreciation and Amortization Expense

Depreciation and amortization expense increased during the three months ended March 31, 2025 compared to the similar period in 2024 primarily due to the change in the mix of net depreciable and amortizable assets, including the amortization period of certain acquisition-related intangible assets, and the continued deployment of C-Band network assets.

Depreciation and amortization expense increased during both the three and six months ended June 30, 2025 compared to the similar periods in 2024 primarily due to the change in the mix of net depreciable and amortizable assets, including the amortization period of certain acquisition-related intangible assets, and the continued deployment of C-Band and FWA network assets.

Other Consolidated Results

Other Income, Net

Three Months Ended

March 31, Increase/

(dollars in millions) 2025 2024 (Decrease)

Other Income (Expense), Net

Three Months Ended Six Months Ended

June 30, Increase/(Decrease) June 30, Increase/(Decrease)

(dollars in millions) 2025 2024 2025 2024

Interest income $ 55 $ 83 $ (28) (33.7) % $ 118 $ 161 $ (43) (26.7) %

Other components of net periodic benefit cost (94) — (94) nm

Other components of net periodic benefit cost (138) (233) 95 (40.8) (232) (233) 1 (0.4)

Net debt extinguishment gains

88 89 (1) (1.1) 178 199 (21) (10.6)

Other, net 62 10 52 nm

Other Income, Net

$ 121 $ 198 $ (77) (38.9)

Other, net 74 (11) 85 nm 136 (1) 137 nm

Other Income (Expense), Net

$ 79 $ (72) $ 151 nm $ 200 $ 126 $ 74 58.7

nm - not meaningful

Other income, net, reflects certain items not directly related to our core operations, including interest income, debt extinguishment gains, components of net periodic pension and postretirement benefit cost and income and certain foreign exchange gains and losses.

Other income, net decreased during the three months ended March 31, 2025 compared to the similar period in 2024 primarily due to a decrease of $94 million in other components of net periodic benefit cost primarily driven by lower plan assets on which to earn expected returns in our pension and postretirement plans compared to the prior year along with a net pension remeasurement gain in 2024 that did not reoccur, partially offset by a decrease in interest costs.

Other income (expense), net, reflects certain items not directly related to our core operations, including interest income, debt extinguishment gains, components of net periodic pension and postretirement benefit cost and income and certain foreign exchange gains and losses.

Other income (expense), net increased during the three and six months ended June 30, 2025 compared to the similar periods in 2024.

The increase during the three months ended June 30, 2025 was primarily due to:

• a net pension remeasurement loss of $45 million in 2025 compared to a net pension remeasurement loss of $136 million in 2024;

• an increase resulting from fair market value adjustments on certain investments.

The increase during the six months ended June 30, 2025 was primarily due to an increase resulting from fair market value adjustments on certain investments.

See Note 8 to the condensed consolidated financial statements for more information on the other components of net periodic benefit cost.

Interest Expense

Three Months Ended

(dollars in millions) 2025 2024 (Decrease)

Three Months Ended Six Months Ended

June 30, Decrease June 30, Decrease

(dollars in millions) 2025 2024 2025 2024

Total interest costs on debt balances $ 1,830 $ 1,942 $ (112) (5.8) % $ 3,659 $ 3,850 $ (191) (5.0) %

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Effective interest rate (2)(3)

5.1 % 5.1 % 5.1 % 5.1 %

(1) The average debt outstanding is a financial measure and is calculated by applying a simple average of prior months' end balances of total short-term and long-term debt, net of discounts, premiums and unamortized debt issuance costs.

(2) The effective interest rate is the rate of actual interest incurred on debt.

It is calculated by dividing the total interest costs on debt balances by the average debt outstanding.

It is calculated by dividing the annualized total interest costs on debt balances by the average debt outstanding.

(3) We believe that this measure is useful to management, investors and other users of our financial information in evaluating our debt financing cost and trends in our debt leverage management.

Total interest expense remained relatively flat during the three months ended March 31, 2025 compared to the similar period in 2024.

Total interest expense decreased during both the three and six months ended June 30, 2025 compared to the similar periods in 2024 primarily as a result of a decrease in interest costs due to lower average debt balances partially offset by a decrease in capitalized interest due to additional C-Band spectrum licenses being placed into service.

Provision for Income Taxes

Three Months Ended

Three Months Ended Six Months Ended

June 30, Increase June 30,

(dollars in millions) 2025 2024 2025 2024 Increase

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The effective income tax rate is calculated by dividing the provision for income taxes by income before the provision for income taxes.

The increase in the provision for income taxes during the three months ended March 31, 2025 compared to the similar period in 2024 was primarily due to the increase in income before income taxes in the current period.

The increase in the effective income tax rate during the three months ended March 31, 2025 compared to the similar period in 2024 was primarily due to higher tax benefits from the favorable resolution of various income tax matters in the prior period.

The increase in the provision for income taxes during the three and six months ended June 30, 2025 compared to the similar periods in 2024 was primarily due to the increase in income before income taxes in the current period.

The increase in the effective income tax rate during the three and six months ended June 30, 2025 compared to the similar periods in 2024 was primarily due to higher tax benefits from the favorable resolution of various income tax matters in the prior period.

Unrecognized Tax Benefits

Unrecognized tax benefits were $2.6 billion at both March 31, 2025 and December 31, 2024.

Interest and penalties related to unrecognized tax benefits were $649 million (after-tax) and $684 million (after-tax) at March 31, 2025 and December 31, 2024, respectively.

Unrecognized tax benefits were $2.6 billion at both June 30, 2025 and December 31, 2024.

Interest and penalties related to unrecognized tax benefits were $681 million (after-tax) and $684 million (after-tax) at June 30, 2025 and December 31, 2024, respectively.

Verizon and/or its subsidiaries file income tax returns in the U.S.

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Consolidated Net Income, Consolidated EBITDA and Consolidated Adjusted EBITDA

Consolidated earnings before interest, taxes, depreciation and amortization expense (Consolidated EBITDA) and Consolidated Adjusted EBITDA, which are presented below, are non-GAAP financial measures that we believe are useful to management, investors and other users of our financial information in evaluating operating profitability on a more variable cost basis as they exclude the depreciation and amortization expense related primarily to capital expenditures and acquisitions that occurred in prior years, as well as in evaluating operating performance in relation to Verizon's competitors.

Consolidated earnings before interest, taxes, depreciation and amortization (Consolidated EBITDA) and Consolidated Adjusted EBITDA, which are presented below, are non-GAAP financial measures that we believe are useful to management, investors and other users of our financial information in evaluating operating profitability on a more variable cost basis as they exclude the depreciation and amortization expense related primarily to capital expenditures and acquisitions that occurred in prior years, as

well as in evaluating operating performance in relation to Verizon's competitors.

Consolidated EBITDA is calculated by adding back interest, taxes, depreciation and amortization expense to net income.

Consolidated Adjusted EBITDA is calculated by excluding from Consolidated EBITDA the effect of the following non-operational items:

equity in earnings and losses of unconsolidated businesses and other income and expense, net, as well as the effect of

certain special items.

equity in earnings and losses of unconsolidated businesses and other income and expense, net, as well as the effect of certain special items.

We believe that this measure is useful to management, investors and other users of our financial information in evaluating the effectiveness of our operations and underlying business trends.

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The non-GAAP financial information presented may be determined or calculated differently by other companies and may not be directly comparable to that of other companies.

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(dollars in millions) 2025 2024 2025 2024

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Interest expense

1,639 1,698 3,271 3,333

Depreciation and amortization expense (1)

4,635 4,483 9,212 8,928

Consolidated EBITDA $ 12,883 $ 12,215 $ 25,565 $ 24,370

Other income, net

Other (income) expense, net (2)

$ (79) $ 72 $ (200) $ (126)

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Consolidated Adjusted EBITDA $ 12,807 $ 12,301 $ 25,362 $ 24,373

(1) Includes Amortization of acquisition-related intangible assets, which were $190 million and $221 million during the three months ended March 31, 2025 and 2024, respectively.

(1) Includes Amortization of acquisition-related intangible assets, which were $192 million and $382 million during the three and six months ended June 30, 2025, respectively, and $219 million and $440 million during the three and six months ended June 30, 2024, respectively.

See "Special Items" for additional information.

The changes in Consolidated Net Income, Consolidated EBITDA and Consolidated Adjusted EBITDA in the table above during the three months ended March 31, 2025 compared to the similar period in 2024 were primarily a result of the factors described above in connection with consolidated operating revenues and consolidated operating expenses.

(2) Includes Pension and benefits mark-to-market charges of $136 million during both the three and six months ended June 30, 2024.

See "Special Items" for additional information.

The changes in Consolidated Net Income, Consolidated EBITDA and Consolidated Adjusted EBITDA in the table above during the three and six months ended June 30, 2025 compared to the similar periods in 2024 were primarily a result of the factors described above in connection with consolidated operating revenues and consolidated operating expenses.

Segment Results of Operations

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Wireline broadband connections, net additions are the total number of additional wireline broadband connections, less the number of wireline broadband disconnects in the period.

Wireline broadband connections, net additions in each period presented

are calculated by subtracting the wireline broadband disconnects, net of certain adjustments, from the wireline broadband new connections in the period.

Wireline broadband connections, net additions in each period presented are calculated by subtracting the wireline broadband disconnects, net of certain adjustments, from the wireline broadband new connections in the period.

Wireless churn is the rate at which service to retail, retail postpaid, or retail postpaid phone connections is terminated on average in the period.

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Wireless retail postpaid ARPA is the calculated average retail postpaid service revenue per account (ARPA) from retail postpaid accounts in the period.

Wireless retail postpaid service revenue does not include recurring device payment plan billings related to the Verizon device payment program, insurance or regulatory fees.

Wireless retail postpaid service revenue does not include recurring device payment plan billings related to the Verizon device payment program, insurance premiums or regulatory fees.

Wireless retail postpaid ARPA in each period presented is calculated by dividing retail postpaid service revenue by the average retail postpaid accounts in the period.

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Operating Revenues and Selected Operating Statistics

Three Months Ended

March 31, Increase/

(dollars in millions, except ARPA) 2025 2024 (Decrease)

Three Months Ended Six Months Ended

June 30, Increase/ June 30, Increase/

(dollars in millions, except ARPA) 2025 2024 (Decrease) 2025 2024 (Decrease)

$ 20,260 $ 19,851 $ 409 2.1 % $ 40,326 $ 39,475 $ 851 2.2 %

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Net Additions in Period (‘000):

Total wireless retail (159) (141) (18) (12.8)

Total wireless retail 112 (552) 664 nm (47) (693) 646 93.2

Wireless retail postpaid 90 72 18 25.0 (163) 147 (310) nm

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Wireless retail core prepaid (3)

137 (131) 268 nm

50 (12) 62 nm 187 (143) 330 nm

FWA broadband 164 218 (54) (24.8) 363 421 (58) (13.8)

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Consumer's total operating revenues increased during the three months ended March 31, 2025 compared to the similar period in 2024 as a result of increases in Service, Wireless equipment and Other revenues.

Consumer's total operating revenues increased during both the three and six months ended June 30, 2025 compared to the similar periods in 2024 as a result of increases in Service, Wireless equipment and Other revenues.

Service Revenue

Service revenue increased during the three months ended March 31, 2025 compared to the similar period in 2024 primarily driven by an increase in Wireless service revenue.

Wireless service revenue increased during the three months ended March 31, 2025 compared to the similar period in 2024 primarily as a result of:

Service revenue increased during both the three and six months ended June 30, 2025 compared to the similar periods in 2024 primarily driven by an increase in Wireless service revenue.

Wireless service revenue increased during the three months ended June 30, 2025 compared to the similar period in 2024 primarily due to:

• an increase of $220 million in postpaid revenue primarily related to pricing actions, higher adoption of perks and premium MyPlan offerings, and a 34% increase in our FWA subscriber base.

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• an increase of $176 million related to growth in non-retail service revenue.

Wireless service revenue increased during the six months ended June 30, 2025 compared to the similar period in 2024 primarily as a result of:

• an increase of $627 million in postpaid revenue primarily related to pricing actions, higher adoption of perks and premium MyPlan offerings, and a 34% increase in our FWA subscriber base.

These increases were partially offset by the amortization of wireless equipment sales promotions;

• an increase of $319 million related to growth in non-retail service revenue;

• a decrease of $106 million primarily driven by the termination of the Affordable Connectivity Program in the second quarter of 2024, partially offset by an increase in the core prepaid subscriber base.

Wireless Equipment Revenue

Wireless equipment revenue remained relatively flat during the three months ended March 31, 2025 compared to the similar period in 2024.

Wireless equipment revenue increased during both the three and six months ended June 30, 2025 compared to the similar periods in 2024 primarily due to:

• an increase of $1.0 billion for both periods driven by a higher volume of wireless devices sold primarily related to an increase of 39% and 19%, respectively, in upgrades, partially offset by the impact of related promotions;

• an increase of $180 million and $256 million, respectively, related to a shift to higher priced equipment in the mix of wireless devices sold .

Other Revenue

Other revenue includes fees that partially recover the direct and indirect costs of complying with regulatory and industry obligations and programs, leasing and interest recognized when equipment is sold to the customer by an authorized agent under a device payment plan agreement.

Other revenue increased during the three months ended March 31, 2025 compared to the similar period in 2024 primarily due to an increase of $53 million driven by regulatory surcharges primarily related to a higher net Federal Universal Service Fund rate.

Other revenue increased during the three and six months ended June 30, 2025 compared to the similar periods in 2024 primarily due to an increase of $65 million and $118 million, respectively, driven by regulatory surcharges primarily related to a higher net Federal Universal Service Fund (FUSF) rate.

Operating Expenses

Three Months Ended

(dollars in millions) 2025 2024 Increase

Three Months Ended Six Months Ended

June 30, Increase/(Decrease) June 30, Increase

(dollars in millions) 2025 2024 2025 2024

Cost of services $ 4,581 $ 4,450 $ 131 2.9 % $ 9,155 $ 8,987 $ 168 1.9 %

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Cost of Services

Cost of services remained relatively flat during the three months ended March 31, 2025 compared to the similar period in 2024.

Cost of services increased during both the three and six months ended June 30, 2025 compared to the similar periods in 2024 primarily due to:

• an increase of $62 million and $98 million, respectively, in regulatory fees mainly driven by a higher net FUSF rate;

• an increase of $37 million and $83 million, respectively, in rent and lease expense primarily driven by new leases and lease modifications related to the continued deployment of the C-Band spectrum and Consumer's proportionate usage of shared leased assets.

Cost of Wireless Equipment

Cost of wireless equipment increased during the three months ended March 31, 2025 compared to the similar period in 2024 primarily due to:

• an increase of $148 million due to a shift to higher priced equipment in the mix of wireless devices sold;

• an increase of $14 million driven by a higher volume of wireless devices sold.

Cost of wireless equipment increased during both the three and six months ended June 30, 2025 compared to the similar periods in 2024 primarily due to:

• an increase of $1.1 billion and $1.2 billion, respectively, driven by a higher volume of wireless devices sold primarily related to an increase of 39% and 19%, respectively, in upgrades;

• an increase of $251 million and $341 million, respectively, due to a shift to higher priced equipment in the mix of wireless devices sold.

Selling, General and Administrative Expense

Selling, general and administrative expense increased during the three months ended March 31, 2025 compared to the similar period in 2024 primarily due to an increase of $66 million in advertising costs related to various marketing campaigns in the first quarter of 2025.

Selling, general and administrative expense remained relatively flat for the three months ended June 30, 2025 and increased during the six months ended June 30, 2025 compared to the similar periods in 2024.

The increase during the six months ended June 30, 2025 was primarily due to an increase of $95 million in advertising costs related to various marketing campaigns in the first half of 2025.

Depreciation and Amortization Expense

Depreciation and amortization expense increased during the three months ended March 31, 2025 compared to the similar period in 2024 driven by the change in the mix of total Verizon depreciable and amortizable assets and Consumer's usage of those assets.

Depreciation and amortization expense increased during both the three and six months ended June 30, 2025 compared to the similar periods in 2024 driven by the change in the mix of total Verizon depreciable and amortizable assets and Consumer's usage of those assets.

Segment Operating Income and EBITDA

Three Months Ended

(dollars in millions) 2025 2024 Increase

Three Months Ended Six Months Ended

June 30, Increase June 30, Increase

(dollars in millions) 2025 2024 2025 2024

Segment Operating Income $ 7,643 $ 7,604 $ 39 0.5 % $ 15,067 $ 14,976 $ 91 0.6 %

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Segment EBITDA margin 42.1 % 44.1 % 42.5 % 43.4 %

The changes in the table above during the three months ended March 31, 2025 compared to the similar period in 2024 were primarily a result of the factors described in connection with Consumer operating revenues and operating expenses.

The changes in the table above during the three and six months ended June 30, 2025 compared to the similar periods in 2024 were primarily a result of the factors described in connection with Consumer operating revenues and operating expenses.

Verizon Business Group

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Operating Revenues and Selected Operating Statistics

Three Months Ended

March 31, Increase/

(dollars in millions) 2025 2024 (Decrease)

Three Months Ended Six Months Ended

June 30, Increase/ June 30, Increase/

(dollars in millions) 2025 2024 (Decrease) 2025 2024 (Decrease)

Enterprise and Public Sector $ 3,435 $ 3,545 $ (110) (3.1) % $ 6,892 $ 7,132 $ (240) (3.4) %

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FWA broadband 114 160 (46) (28.8) 223 311 (88) (28.3)

Wireline broadband — (1) 1 nm

Wireline broadband (2) — (2) nm (2) (1) (1) nm

Total broadband 112 160 (48) (30.0) 221 310 (89) (28.7)

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1.26 % 1.09 % 1.21% 1.11 %

(1) Service and other revenues included in our Business segment were approximately $6.4 billion and $6.5 billion for the three months ended March 31, 2025 and 2024, respectively.

Wireless equipment revenues included in our Business segment were $866 million and $871 million for the three months ended March 31, 2025 and 2024, respectively.

(1) Service and other revenues included in our Business segment were approximately $6.4 billion for both the three months ended June 30, 2025 and 2024 and $12.8 billion and $13.0 billion for the six months ended June 30, 2025 and 2024, respectively.

Wireless equipment revenues included in our Business segment were $886 million and $855 million for the three months ended June 30, 2025 and 2024, respectively, and $1.8 billion and $1.7 billion for the six months ended June 30, 2025 and 2024, respectively.

(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.

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Business's total operating revenues decreased during the three months ended March 31, 2025 compared to the similar period in 2024 as a result of decreases in Enterprise and Public Sector and Wholesale revenues, partially offset by an increase in Business Markets and Other revenue.

Business's total operating revenues decreased during both the three and six months ended June 30, 2025 compared to the similar periods in 2024 as a result of decreases in Enterprise and Public Sector and Wholesale revenues, partially offset by an increase in Business Markets and Other revenue.

Enterprise and Public Sector

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Our offerings to this customer group include plans with features and pricing designed to address their specific needs.

Enterprise and Public Sector revenues decreased during the three months ended March 31, 2025 compared to the similar period in 2024 primarily due to a decrease of $119 million in wireline revenue primarily driven by declines in networking, traditional data

and voice communication services along with related professional services, due to secular market pressure and technology shifts, coupled with lower customer premise equipment sales volumes.

Enterprise and Public Sector revenues decreased during both the three and six months ended June 30, 2025 compared to the similar periods in 2024 primarily due to:

• a decrease of $95 million and $214 million, respectively, in wireline revenue primarily driven by declines in networking, traditional data and voice communication services along with related professional services, due to secular market pressure and technology shifts, coupled with lower customer premise equipment sales volumes;

• a decrease of $28 million and $47 million, respectively, in Wireless service revenue primarily driven by pressure in Public Sector in part from government efficiency efforts.

Business Markets and Other

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Business Markets and Other also includes solutions that support mobile resource management.

Business Markets and Other revenues increased during the three months ended March 31, 2025 compared to the similar period in 2024 primarily due to an increase of $129 million in Wireless service revenue driven by pricing actions and an increase in our FWA subscriber base partially offset by the amortization of wireless equipment sales promotions.

Business Markets and Other revenues increased during both the three and six months ended June 30, 2025 compared to the similar periods in 2024 primarily due to an increase of $90 million and $219 million, respectively, in Wireless service revenue driven by pricing actions and an increase in our FWA subscriber base partially offset by the amortization of wireless equipment sales promotions.

Wholesale offers wireline communications services including data, voice, local dial tone and broadband services primarily to local, long distance, and wireless carriers that use our facilities to provide services to their customers.

Wholesale revenues decreased during the three months ended March 31, 2025 compared to the similar period in 2024 primarily due to a decrease of $79 million related to declines in traditional data and voice communication services and network connectivity as a result of technology substitution.

Wholesale revenues decreased during both the three and six months ended June 30, 2025 compared to the similar periods in 2024 primarily due to a decrease of $58 million and $137 million, respectively, related to declines in traditional data and voice communication services and network connectivity as a result of technology substitution.

Operating Expenses

Three Months Ended

March 31, Increase/

(dollars in millions) 2025 2024 Decrease

Three Months Ended Six Months Ended

June 30, Increase/(Decrease) June 30, Increase/(Decrease)

(dollars in millions) 2025 2024 2025 2024

Cost of services $ 2,297 $ 2,455 $ (158) (6.4) % $ 4,673 $ 4,887 $ (214) (4.4) %

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Cost of Services

Cost of services decreased during the three months ended March 31, 2025 compared to the similar period in 2024 primarily as a result of:

Cost of services decreased during both the three and six months ended June 30, 2025 compared to the similar periods in 2024.

The decrease during the three months ended June 30, 2025 was primarily due to:

• a decrease of $77 million in personnel costs related to the impact of workforce changes;

• a decrease of $53 million in access costs primarily related to changes in circuit usage and pricing.

The decrease during the six months ended June 30, 2025 was primarily due to:

• a decrease of $66 million personnel costs related to the impact of workforce changes;

• a decrease of $58 million in access costs primarily related to changes in circuit usage and pricing;

• a decrease of $54 million in other direct costs primarily related to various vendors and contracts;

• a decrease of $48 million in customer premise equipment costs due to lower volumes sold.

• a decrease of $15 million in rent and lease expense primarily driven by a change in Business's proportionate usage of shared leased assets and new lease activity.

Cost of Wireless Equipment

Cost of wireless equipment remained relatively flat during the three months ended March 31, 2025 compared to the similar period in 2024.

Cost of wireless equipment increased during the three and six months ended June 30, 2025 compared to the similar periods in 2024 primarily due to:

• an increase of $33 million and $49 million, respectively, related to a shift to higher priced equipment in the mix of wireless devices sold;

• an increase of $33 million and $56 million, respectively, driven by a higher volume of wireless devices sold.

Selling, General and Administrative Expense

Selling, general and administrative expense decreased during the three months compared to the similar period in 2024 primarily due to a decrease of $144 million in personnel costs related to the impact of workforce changes primarily due to the voluntary separation program that was announced in June of 2024 and completed in March of 2025.

Selling, general and administrative expense remained relatively flat for the three months ended June 30, 2025 and decreased during the six months ended June 30, 2025 compared to the similar periods in 2024.

The decrease during the six months ended June 30, 2025 was primarily due to a decrease of $183 million in personnel costs related to the impact of workforce changes primarily due to the voluntary separation program that was announced in June of 2024 and completed in March of 2025.

Depreciation and Amortization Expense

Depreciation and amortization expense decreased during the three months ended March 31, 2025 compared to the similar period in 2024 driven by the change in the mix of total Verizon depreciable and amortizable assets and Business's usage of those assets.

Depreciation and amortization expense decreased during both the three and six months ended June 30, 2025 compared to the similar periods in 2024 driven by the change in the mix of total Verizon depreciable and amortizable assets and Business's usage of those assets.

Segment Operating Income and EBITDA

Three Months Ended

March 31, Increase/

(dollars in millions) 2025 2024 Decrease

Three Months Ended Six Months Ended

June 30, Increase/(Decrease) June 30, Increase/(Decrease)

(dollars in millions) 2025 2024 2025 2024

Segment Operating Income $ 638 $ 500 $ 138 27.6 % $ 1,302 $ 899 $ 403 44.8 %

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Segment EBITDA margin 22.9 % 21.6 % 23.0 % 21.2 %

The changes in the table above during the three months ended March 31, 2025 compared to the similar period in 2024 were primarily a result of the factors described in connection with Business operating revenues and operating expenses.

The changes in the table above during both the three and six months ended June 30, 2025 compared to the similar periods in 2024 were primarily a result of the factors described in connection with Business operating revenues and operating expenses.

Special Items

Special items included in Income Before Provision For Income Taxes were as follows:

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(dollars in millions) 2025 2024 2025 2024

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Depreciation and amortization expense $ 192 $ 219 $ 382 $ 440

Severance, pension and benefits charges

Other (income) expense, net — 136 — 136

Legacy legal matter

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The income and expenses related to special items included in our condensed consolidated results of operations were as follows:

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(dollars in millions) 2025 2024 2025 2024

Within Total Operating Expenses $ 192 $ 219 $ 382 $ 546

Within Other (income) expense, net — 136 — 136

Total $ 192 $ 355 $ 382 $ 682

Amortization of Acquisition-Related Intangible Assets

During the three months ended March 31, 2025 and 2024, we recorded pre-tax amortization expense of $190 million and $221 million, respectively, related to acquired intangible assets.

During the three and six months ended June 30, 2025, we recorded pre-tax amortization expense of $192 million and $382 million, respectively, related to acquired intangible assets.

During the three and six months ended June 30, 2024, we recorded pre-tax amortization expense of $219 million and $440 million, respectively, related to acquired intangible assets.

Severance, Pension and Benefits Charges

During both the three and six months ended June 30, 2024, we recorded a net pre-tax remeasurement loss of $136 million in our pension plans triggered by settlements.

The remeasurement loss was primarily driven by a $245 million charge resulting from the difference between our estimated and actual return on assets, partially offset by a credit of $109 million due to changes in our discount rate assumption used to determine the current year liabilities of our pension plans.

See Note 8 to the condensed consolidated financial statements for additional information.

Legacy Legal Matter

During the three months ended March 31, 2024, we recorded a pre-tax charge of $106 million associated with a litigation matter related to a legacy contract for the production of telephone directories in Costa Rica by a subsidiary of the Company.

During the six months ended June 30, 2024, we recorded a pre-tax charge of $106 million associated with a litigation matter related to a legacy contract for the production of telephone directories in Costa Rica by a subsidiary of the Company.

Consolidated Financial Condition

Three Months Ended

Six Months Ended

(dollars in millions) 2025 2024 Change

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Our primary source of funds continues to be cash generated from operations.

Net cash provided by operating activities increased $698 million during the three months ended March 31, 2025 compared to the similar period in 2024 primarily due to an increase in earnings and discretionary pension plan contributions of $365 million made during the three months ended March 31, 2024 that did not reoccur.

Net cash provided by operating activities increased $188 million during the six months ended June 30, 2025 compared to the similar period in 2024 primarily due to an increase in earnings and discretionary pension plan contributions of $365 million made during the six months ended June 30, 2024 that did not reoccur.

As a result of the prior year discretionary contributions to our qualified pension plans and the additional non-cash contribution made in April 2025 in the principal amount of $563 million, we expect that there will be no required pension funding through the end of 2025, subject to changes in market conditions.

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Capital expenditures continue to relate primarily to the use of capital resources to enhance the operating efficiency and productivity of our networks, maintain our existing infrastructure, facilitate the introduction of new products and services and enhance responsiveness to competitive challenges.

Capital expenditures, including capitalized software, for the three months ended March 31, 2025 and 2024 were $4.1 billion and $4.4 billion, respectively.

Capital expenditures decreased approximately $231 million during the three months ended March 31, 2025 compared to the similar period in 2024.

Capital expenditures, including capitalized software, for the six months ended June 30, 2025 and 2024 were $8.0 billion and $8.1 billion, respectively.

Capital expenditures decreased $118 million during the six months ended June 30, 2025 compared to the similar period in 2024 primarily due to efficiencies in our fiber and wireless network infrastructure investments.

Acquisitions of Wireless Licenses

During the three months ended March 31, 2025 and 2024, we recorded capitalized interest related to wireless licenses of $122 million and $180 million, respectively.

During the three months ended March 31, 2024, we made payments of $269 million for obligations related to clearing costs and accelerated clearing incentives associated with Auction 107.

During the six months ended June 30, 2025 and 2024, we recorded capitalized interest related to wireless licenses of $234 million and $338 million, respectively.

During the six months ended June 30, 2024, we made payments of $269 million for obligations related to clearing costs and accelerated clearing incentives associated with Auction 107.

Cash Flows Used In Financing Activities

We seek to maintain a mix of fixed and variable rate debt to lower borrowing costs within reasonable risk parameters and to protect against earnings and cash flow volatility resulting from changes in market conditions.

During the three months ended March 31, 2025, net cash used in financing activities was $5.9 billion.

During the three months ended March 31, 2024, net cash used in financing activities was $1.4 billion.

During the three months ended March 31, 2025, our net cash used in financing activities was primarily driven by cash dividends paid of $2.9 billion, repayments of asset-backed long-term borrowings of $2.6 billion and repayments and repurchases of long-term borrowings and finance lease obligations of $2.4 billion.

These payments were partially offset by proceeds from asset-backed long-term borrowings of $2.8 billion.

At March 31, 2025, our total debt of $143.6 billion included unsecured debt of $117.3 billion and secured debt of $26.3 billion.

During the six months ended June 30, 2025, net cash used in financing activities was $10.3 billion.

During the six months ended June 30, 2024, net cash used in financing activities was $7.1 billion.

During the six months ended June 30, 2025, our net cash used in financing activities was primarily driven by cash dividends paid of $5.7 billion, repayments of asset-backed long-term borrowings of $4.5 billion and repayments and repurchases of long-term borrowings and finance lease obligations of $5.5 billion.

These payments were partially offset by proceeds from asset-backed long-term borrowings of $5.0 billion and proceeds from long-term borrowings of $1.7 billion.

At June 30, 2025, our total debt of $146.0 billion included unsecured debt of $119.4 billion and secured debt of $26.6 billion.

At December 31, 2024, our total debt of $144.0 billion included unsecured debt of $117.9 billion and secured debt of $26.1 billion.

During the three months ended March 31, 2025 and 2024, our effective interest rate was 5.1% and 5.0%, respectively.

During the six months ended June 30, 2025 and 2024, our effective interest rate was 5.1%.

See Note 5 to the condensed consolidated financial statements for additional information regarding our debt activity, which excludes the impact from mark-to-market adjustments on foreign currency denominated debt.

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Long-Term Credit Facilities

At March 31, 2025

At June 30, 2025

(dollars in millions) Maturities Facility Capacity Unused Capacity Principal Amount Outstanding

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The revolving credit facility provides for the issuance of letters of credit.

As of March 31, 2025 , there have been no drawings against the revolving credit facility since its inception.

(2) During the three months ended March 31, 2025 and 2024, there were no drawings from these facilities.

As of June 30, 2025 , there have been no drawings against the revolving credit facility since its inception.

(2) During the six months ended June 30, 2025 and 2024, there were no drawings from these facilities.

Borrowings under certain of these facilities are repaid semi-annually in equal installments up to the applicable maturity dates.

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Any amounts borrowed under these facilities and subsequently repaid cannot be reborrowed.

Other, net cash flow from financing activities during the three months ended March 31, 2025 includes $288 million in payments related to vendor financing arrangements, $159 million in payments related to withheld employee shares tax and $128 million in equity distribution payments made for controlled entities.

Other, net cash flow from financing activities during the six months ended June 30, 2025 includes $384 million in payments related to vendor financing arrangements, $265 million in equity distribution payments made for controlled entities, $245 million in payments made under the sublease arrangement for our cell towers, and $160 million in payments related to tax withholding of employee share based arrangements.

As in prior periods, dividend payments were a significant use of capital resources.

We paid $2.9 billion and $2.8 billion in cash dividends during the three months ended March 31, 2025 and 2024, respectively.

We paid $5.7 billion and $5.6 billion in cash dividends during the six months ended June 30, 2025 and 2024, respectively.

Our credit agreements contain covenants that are typical for large, investment grade companies.

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Change In Cash, Cash Equivalents and Restricted Cash

Our Cash and cash equivalents at March 31, 2025 totaled $2.3 billion, a $1.9 billion decrease compared to December 31, 2024, primarily as a result of the factors discussed above.

Restricted cash totaled $465 million and $441 million as of March 31, 2025 and December 31, 2024, respectively, primarily related to cash collections on certain receivables and on the underlying receivables related to the participation interest that are required at certain specified times to be placed into segregated accounts.

Our Cash and cash equivalents at June 30, 2025 totaled $3.4 billion, a $759 million decrease compared to December 31, 2024, primarily as a result of the factors discussed above.

Restricted cash totaled $449 million and $441 million as of June 30, 2025 and December 31, 2024, respectively, primarily related to cash collections on certain receivables and on the underlying receivables related to the participation interest that are required at certain specified times to be placed into segregated accounts.

Free Cash Flow

1 unchanged sentence

Free cash flow is calculated by subtracting capital expenditures (including capitalized software) from net cash provided by operating activities.

We believe it is a more conservative

measure of cash flow since capital expenditures are necessary for ongoing operations.

We believe it is a more conservative measure of cash flow since capital expenditures are necessary for ongoing operations.

Free cash flow has limitations due to the fact that it does not represent the residual cash flow available for discretionary expenditures.

2 unchanged sentences

The following table reconciles net cash provided by operating activities to free cash flow:

Three Months Ended

Six Months Ended

(dollars in millions) 2025 2024 Change

2 unchanged sentences

Free cash flow $ 8,804 $ 8,498 $ 306

The increase in free cash flow during the three months ended March 31, 2025 compared to the similar period in 2024 is a reflection of the increase in operating cash flows, as well as the decrease in capital expenditures, both of which are discussed above.

The increase in free cash flow during the six months ended June 30, 2025 compared to the similar period in 2024 is a reflection of the increase in operating cash flows, as well as the decrease in capital expenditures, both of which are discussed above.

Other Future Obligations

As of March 31, 2025, Verizon had 28 renewable energy purchase agreements with third parties for a total of approximately 3.7 gigawatts of anticipated renewable energy capacity across multiple states.

As of June 30, 2025, Verizon had 28 renewable energy purchase agreements with third parties for a total of approximately 3.7 gigawatts of anticipated renewable energy capacity across multiple states.

See Note 12 to the condensed consolidated financial statements for additional information.

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We do not offset fair value amounts recognized for derivative instruments and fair value amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral arising from derivative instruments recognized at fair value.

At March 31, 2025, we did not hold any collateral.

At March 31, 2025, we posted $1.6 billion of collateral related to derivative contracts under collateral exchange agreements, which was recorded as Prepaid expenses and other in our condensed consolidated balance sheet.

At June 30, 2025, we did not hold any collateral.

At June 30, 2025, we posted $1.1 billion of collateral related to derivative contracts under collateral exchange agreements, which was recorded as Prepaid expenses and other in our condensed consolidated balance sheet.

At December 31, 2024, we did not hold any collateral.

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We are exposed to changes in interest rates, primarily on our short-term debt and the portion of long-term debt that carries floating interest rates.

As of March 31, 2025, approximately 77% of the aggregate principal amount of our total debt portfolio consisted of fixed-rate indebtedness, including the effect of interest rate swap agreements designated as hedges.

As of June 30, 2025, approximately 77% of the aggregate principal amount of our total debt portfolio consisted of fixed-rate indebtedness, including the effect of interest rate swap agreements designated as hedges.

The impact of a 100-basis-point change in interest rates affecting our floating rate debt would result in a change in annual interest expense, including our interest rate swap agreements that are designated as hedges, of approximately $340 million.

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We principally receive fixed rates and pay variable rates, resulting in a net increase or decrease to Interest expense.

These swaps are designated as fair value hedges

and hedge against interest rate risk exposure of designated debt issuances.

At March 31, 2025 and December 31, 2024, the fair value of the liability of these contracts was $4.8 billion and $5.3 billion, respectively.

At both March 31, 2025 and December 31, 2024, the total notional amount of the interest rate swaps was $24.0 billion.

These swaps are designated as fair value hedges and hedge against interest rate risk exposure of designated debt issuances.

At June 30, 2025 and December 31, 2024, the fair value of the liability of these contracts was $4.8 billion and $5.3 billion, respectively.

At June 30, 2025 and December 31, 2024, the total notional amount of the interest rate swaps was $23.0 billion and $24.0 billion, respectively.

Foreign Currency Risk

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Gains and losses on foreign currency transactions are recorded in the condensed consolidated statements of income.

At March 31, 2025, our primary translation exposure was to the British Pound Sterling, Euro, Australian Dollar and Swedish Krona.

At June 30, 2025, our primary translation exposure was to the British Pound Sterling, Euro, Australian Dollar and Swedish Krona.

Cross Currency Swaps

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dollars, as well as to mitigate the impact of foreign currency transaction gains or losses.

At March 31, 2025 and December 31, 2024, the fair value of the asset of these contracts was $528 million and $500 million, respectively.

At March 31, 2025 and December 31, 2024, the fair value of the liability of these contracts was $2.4 billion and $2.7 billion, respectively.

At March 31, 2025 and December 31, 2024, the total notional amount of the cross currency swaps was $31.7 billion and $32.1 billion, respectively.

At June 30, 2025 and December 31, 2024, the fair value of the asset of these contracts was $1.6 billion and $500 million, respectively.

At June 30, 2025 and December 31, 2024, the fair value of the liability of these contracts was $1.0 billion and $2.7 billion, respectively.

At June 30, 2025 and December 31, 2024, the total notional amount of the cross currency swaps was $30.9 billion and $32.1 billion, respectively.

Foreign Exchange Forwards

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We entered into Euro foreign exchange forwards to mitigate our foreign exchange rate risk related to non-functional currency denominated monetary assets and liabilities of international subsidiaries.

At both March 31, 2025 and December 31, 2024, the fair value of the asset and liability of these contracts was insignificant.

At March 31, 2025 and December 31, 2024, the total notional amount of the foreign exchange forwards was $730 million and $620 million, respectively.

At both June 30, 2025 and December 31, 2024, the fair value of the asset and liability of these contracts was insignificant.

At June 30, 2025 and December 31, 2024, the total notional amount of the foreign exchange forwards was $730 million and $620 million, respectively.

Acquisitions and Divestitures

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In February 2021, the Federal Communications Commission (FCC) concluded Auction 107 for C-Band wireless spectrum.

In accordance with the rules applicable to the auction, Verizon is required to make payments for our allocable share of clearing costs incurred by, and incentive payments due to, the incumbent license holders associated with the auction, which are estimated to be $7.5 billion.

During the three months ended March 31, 2024, we made payments of $269 million for obligations related to clearing costs and accelerated clearing incentives.

The carrying value of the wireless spectrum won in Auction 107 consists of all payments required to participate and purchase licenses in the auction, including Verizon's allocable share of clearing costs incurred by, and incentive payments due to, the incumbent license holders associated with the auction that we are obligated to pay in order to acquire the licenses, as well as capitalized interest to the extent qualifying activities have occurred.

In accordance with the rules applicable to the auction, Verizon was required to make payments for our allocable share of clearing costs incurred by, and incentive payments due to, the incumbent license holders associated with the auction, which were

approximately $7.5 billion.

During the six months ended June 30, 2024, we made payments of $269 million for obligations related to clearing costs and accelerated clearing incentives.

The carrying value of the wireless spectrum won in Auction 107 consists of all payments required to participate and purchase licenses in the auction, including Verizon's allocable share of clearing costs incurred by, and incentive payments due to, the incumbent license holders associated with the auction that we were obligated to pay in order to acquire the licenses, as well as capitalized interest to the extent qualifying activities have occurred.

On October 17, 2024, Verizon entered into a license purchase agreement to acquire select spectrum licenses of United States Cellular Corporation and certain of its subsidiaries (UScellular) for total consideration of $1.0 billion, subject to certain potential adjustments.

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In November 2024, Frontier shareholders approved the transaction.

Consummation of the transaction is subject to receipt of certain regulatory approvals and other customary closing conditions.

It has also been approved by the FCC, the Department of Justice and certain state regulators.

Consummation of the transaction is subject to receipt of certain remaining regulatory approvals and other customary closing conditions.

Under certain circumstances, if the Merger Agreement is terminated, Frontier may be required to pay Verizon a termination fee of $320 million.

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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 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," "intends," "plans," "targets" or similar expressions.

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• 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;

• disruption of our key suppliers' or vendors' provisioning of products or services, including as a result of geopolitical factors, natural disasters or extreme weather conditions;

• material adverse changes in labor matters and any resulting financial or operational impact;

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis