What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-10-29 compared with 2025-07-25 · 214 added, 170 removed, 527 unchanged (42% of the section changed)

8 unchanged sentences

Our strategy requires significant capital investments primarily to acquire wireless spectrum, put the spectrum into service, provide additional capacity for growth in our networks, invest in the fiber that supports our businesses, evolve and maintain our networks and develop and maintain significant advanced information technology systems and data system capabilities.

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 June 30, 2025 and 2024

We believe that our C-Band, millimeter wave and other key spectrum holdings, our 5G network, and our local and long-haul fiber infrastructure, will drive innovative products and services and fuel our growth.

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

(dollars in millions)

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

Highlights of Our Financial Results for the Nine Months Ended September 30, 2025 and 2024

(dollars in millions)

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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 June 30, 2025 and 2024

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

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

Revenue by Segment for the Nine Months Ended September 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 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.

The Consumer segment's operating revenues for the three and nine months ended September 30, 2025 totaled $26.1 billion and $78.4 billion, respectively, representing an increase of 2.9% and 4.0%, 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 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.

The Business segment's operating revenues for the three and nine months ended September 30, 2025 totaled $7.1 billion and $21.7 billion, respectively, representing a decrease of 2.8% and 1.5%, 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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Although such transactions are excluded from the business segment results, they are included in reported consolidated earnings.

Gains and losses from these transactions that are not individually significant are included in segment results and therefore are included in the chief operating decision maker’s (CODM) assessment of segment performance.

Gains and losses from these transactions that are not individually significant are included in

segment results and therefore are included in the chief operating decision maker’s (CODM) assessment of segment performance.

See "Consolidated Results of Operations" for additional information regarding Corporate and other results.

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

During the nine months ended September 30, 2025, these investments included $12.3 billion for capital expenditures.

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

Capital expenditures for 2025 are expected to be in the range of $17.5 billion to $18.5 billion.

Capital expenditures for 2025 are expected to be within or below the range of $17.5 billion to $18.5 billion.

Global Networks and Technology

We consider the reliability, speed, capacity, coverage and security of our wireless network to be key factors in our continued success.

We are evolving and transforming our networks to ensure our customers receive access to the best network possible.

Over the past several years, we have been leading the development of 5G wireless technology industry standards and the ecosystems for fixed and mobile 5G wireless services.

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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

One Big Beautiful Bill Act

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

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Tariffs and Other Government Initiatives

Earlier this year, the U.S.

During the course of 2025, the U.S.

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

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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.

We have seen negative impacts from these efforts in our business with public sector customers during the first three quarters of 2025.

It is also possible that we could see impacts from the federal government shutdown and related federal workforce initiatives that commenced in October 2025.

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 Six Months Ended

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

Three Months Ended Nine Months Ended

September 30, Increase/(Decrease) September 30, Increase/

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

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Consolidated Operating Revenues $ 33,821 $ 33,330 $ 491 1.5 $ 101,810 $ 99,107 $ 2,703 2.7

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.

Consolidated operating revenues increased during both the three and nine months ended September 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 Six Months Ended

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

Three Months Ended Nine Months Ended

September 30, Increase/(Decrease) September 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 both the three and six months ended June 30, 2025 compared to the similar periods in 2024.

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

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

• a decrease of $189 million related to the asset and business rationalization charge taken in 2024;

• a decrease of $107 million in access costs primarily as a result of changes in usage and net circuit access prices.

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

• a decrease of $193 million in access costs primarily as a result of changes in usage and net circuit access prices;

• a decrease of $189 million related to the asset and business rationalization charge taken in 2024;

• a decrease of $122 million in other direct costs primarily related to legacy wireline products and services;

• an increase of $154 million in regulatory fees mainly driven by a higher net Federal Universal Service Fund (FUSF) rate.

Cost of Wireless Equipment

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.

Cost of wireless equipment increased during both the three and nine months ended September 30, 2025 compared to the similar periods in 2024.

The increase during the three months ended September 30, 2025 was primarily due to an increase of $426 million driven by a shift to higher priced equipment in the mix of wireless devices sold.

The increase during the nine months ended September 30, 2025 was primarily due to:

• an increase of $1.3 billion driven by a higher volume of wireless devices sold primarily related to an increase of 13% in upgrades;

• an increase of $793 million driven by a shift to higher priced equipment in the mix of wireless devices sold.

Selling, General and Administrative Expense

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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 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 ;

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

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

• a decrease of $1.7 billion due to severance charges in 2024 related to separations under our voluntary separation program as well as other headcount reduction initiatives ;

• a decrease of $185 million r elated to an asset and business rationalization charge taken in 2024.

The decrease during the nine months ended September 30, 2025 was primarily due to:

• a decrease of $1.9 billion primarily due to severance charges in 2024 related to separations under our voluntary separation program as well as other headcount reduction initiatives ;

• a decrease of $256 million related to lower costs for device insurance programs primarily due to a decrease in claims;

• a decrease of $185 million r elated to an asset and business rationalization charge taken in 2024;

• 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.

See "Special Items" for additional information on the severance charges, the asset and business rationalization charges and the legacy legal matter.

Depreciation and Amortization Expense

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.

Depreciation and amortization expense increased during both the three and nine months ended September 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 (Expense), Net

Three Months Ended Six Months Ended

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

Other Income, Net

Three Months Ended Nine Months Ended

September 30, Increase/(Decrease) September 30, Increase/(Decrease)

(dollars in millions) 2025 2024 2025 2024

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94 90 4 4.4 272 289 (17) (5.9)

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

Other Income (Expense), Net

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

Other, net (7) (59) 52 (88.1) 129 (60) 189 nm

Other Income, Net

$ 92 $ 72 $ 20 27.8 $ 292 $ 198 $ 94 47.5

nm - not meaningful

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.

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 remained relatively flat for the three months ended September 30, 2025 and increased during the nine months ended September 30, 2025 compared to the similar periods in 2024.

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

Interest Expense

Three Months Ended Six Months Ended

June 30, Decrease June 30, Decrease

Three Months Ended Nine Months Ended

September 30, Decrease September 30, Decrease

(dollars in millions) 2025 2024 2025 2024

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(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 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.

Total interest expense decreased during both the three and nine months ended September 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 Six Months Ended

June 30, Increase June 30,

Three Months Ended Nine Months Ended

September 30, Increase September 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 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.

The increase in the provision for income taxes during both the three and nine months ended September 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 both the three and nine months ended September 30, 2025 compared to the similar periods in 2024 was primarily due to a reduction in deferred income taxes due to changes in state apportionment in the prior period.

Unrecognized Tax Benefits

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.

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

Interest and penalties related to unrecognized tax benefits were $721 million (after-tax) and $684 million (after-tax) at September 30, 2025 and December 31, 2024, respectively.

Verizon Communications Inc.

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

federal jurisdiction, and various state, local and foreign jurisdictions.

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Consolidated Net Income, Consolidated EBITDA and Consolidated Adjusted EBITDA

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 Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

(dollars in millions) 2025 2024 2025 2024

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$ (92) $ (72) $ (292) $ (198)

Equity in (earnings) losses of unconsolidated businesses 3 14 (3) 23

Equity in losses of unconsolidated businesses 6 24 3 47

Acquisition and integration related charges 52 — 52 —

Severance charges — 1,733 — 1,733

Asset and business rationalization

Legacy legal matter

Consolidated Adjusted EBITDA $ 12,775 $ 12,491 $ 38,137 $ 36,864

(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.

(1) Includes Amortization of acquisition-related intangible assets, which were $189 million and $571 million during the three and nine months ended September 30, 2025, respectively, and $186 million and $626 million during the three and nine months ended September 30, 2024, respectively.

See "Special Items" for additional information.

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

(2) Includes Pension and benefits mark-to-market charges of $136 million during the nine months ended September 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.

The changes in Consolidated Net Income, Consolidated EBITDA and Consolidated Adjusted EBITDA in the table above during the three and nine months ended September 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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Wireless retail postpaid connections are retail postpaid customer device connections as of the end of the period.

Retail postpaid connections under an account may include those from phones, postpaid FWA, as well as tablets and other internet devices, wearables and retail IoT devices.

Retail postpaid connections under an account may include those from phones, postpaid FWA, as well as tablets and other internet devices,

wearables and retail IoT devices.

Wireless retail postpaid connections are calculated by adding retail postpaid new connections in the period to prior period retail postpaid connections, and subtracting retail postpaid disconnects in the period.

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

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

FWA broadband connections, net additions in each period presented are calculated

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

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

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Operating Revenues and Selected Operating Statistics

Three Months Ended Six Months Ended

June 30, Increase/ June 30, Increase/

Three Months Ended Nine Months Ended

September 30, Increase/ September 30, Increase/

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

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Total wireless retail (108) (1) (107) nm (155) (694) 539 77.7

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

Wireless retail postpaid phone (51) (109) 58 53.2 (407) (303) (104) (34.3)

Wireless retail postpaid (74) 68 (142) nm (237) 215 (452) nm

Wireless retail postpaid phone (7) 18 (25) nm (414) (285) (129) (45.3)

Wireless retail core prepaid (3)

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

47 80 (33) (41.3) 234 (63) 297 nm

FWA broadband 121 209 (88) (42.1) 484 630 (146) (23.2)

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nm - not meaningful

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.

Consumer's total operating revenues increased during both the three and nine months ended September 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 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.

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

Service revenue increased during both the three and nine months ended September 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 September 30, 2025 compared to the similar period in 2024 primarily due to:

• an increase of $202 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 $160 million in postpaid revenue primarily related to higher adoption of perks and premium MyPlan offerings, pricing actions, and a 28% increase in our FWA subscriber base.

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

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

• an increase of $787 million in postpaid revenue primarily related to pricing actions, higher adoption of perks and premium MyPlan offerings, and a 28% increase in our FWA subscriber base.

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• an increase of $521 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 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 .

Wireless equipment revenue increased during both the three and nine months ended September 30, 2025 compared to the similar periods in 2024.

The increase during the three months ended September 30, 2025 was primarily due to an increase of $370 million related to a shift to higher priced equipment in the mix of wireless devices sold .

The increase during the nine months ended September 30, 2025 was primarily due to:

• an increase of $1.0 billion driven by a higher volume of wireless devices sold primarily related to an increase of 18% in upgrades, partially offset by the impact of related promotions;

• an increase of $574 million 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 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.

Other revenue increased during both the three and nine months ended September 30, 2025 compared to the similar periods in 2024 primarily due to an increase of $38 million and $201 million, respectively, driven by regulatory surcharges primarily related to a higher net FUSF rate.

Operating Expenses

Three Months Ended Six Months Ended

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

Three Months Ended Nine Months Ended

September 30, Increase September 30, Increase

(dollars in millions) 2025 2024 2025 2024

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Cost of Services

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 services increased during both the three and nine months ended September 30, 2025 compared to the similar periods in 2024.

The increase during the three months ended September 30, 2025 was primarily due to an increase of $55 million 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.

The increase during the nine months ended September 30, 2025 was primarily due to:

• an increase of $138 million 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;

• an increase of $121 million in regulatory fees driven by a higher net FUSF rate.

Cost of Wireless Equipment

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.

Cost of wireless equipment increased during both the three and nine months ended September 30, 2025 compared to the similar periods in 2024.

The increase during the three months ended September 30, 2025 was primarily due to an increase of $403 million due to a shift to higher priced equipment in the mix of wireless devices sold.

The increase during the nine months ended September 30, 2025 was primarily due to:

• an increase of $1.3 billion driven by a higher volume of wireless devices sold primarily related to an increase of 18% in upgrades;

• an increase of $687 million 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 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.

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

The increase during the nine months ended September 30, 2025 was primarily due to:

• an increase of $48 million in advertising costs related to various marketing campaigns in 2025;

• an increase of $41 million in building and facility costs primarily due to higher utility rates.

Depreciation and Amortization Expense

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.

Depreciation and amortization expense increased during both the three and nine months ended September 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 Six Months Ended

June 30, Increase June 30, Increase

Three Months Ended Nine Months Ended

September 30, Increase September 30, Increase

(dollars in millions) 2025 2024 2025 2024

4 unchanged sentences

Segment EBITDA margin 43.0 % 43.4 % 42.6 % 43.4 %

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.

The changes in the table above during the three and nine months ended September 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 Six Months Ended

June 30, Increase/ June 30, Increase/

Three Months Ended Nine Months Ended

September 30, Increase/ September 30, Increase/

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

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1.25 % 1.12 % 1.22 % 1.11 %

(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.

(1) Service and other revenues included in our Business segment were approximately $6.3 billion and $6.5 billion for the three months ended September 30, 2025 and 2024, respectively, and $19.1 billion and $19.4 billion for the nine months ended September 30, 2025 and 2024, respectively.

Wireless equipment revenues included in our Business segment were $853 million and $865 million for the three months ended September 30, 2025 and 2024, respectively, and $2.6 billion for both the nine months ended September 30, 2025 and 2024.

(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 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.

Business's total operating revenues decreased during both the three and nine months ended September 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 both the three and six months ended June 30, 2025 compared to the similar periods in 2024 primarily due to:

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

• a decrease of $165 million and $379 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;

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

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.

Business Markets and Other revenues increased during both the three and nine months ended September 30, 2025 compared to the similar periods in 2024 primarily due to an increase of $87 million and $306 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 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.

Wholesale revenues decreased during both the three and nine months ended September 30, 2025 compared to the similar periods in 2024 primarily due to a decrease of $71 million and $208 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 Six Months Ended

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

Three Months Ended Nine Months Ended

September 30, Increase/(Decrease) September 30, Increase/(Decrease)

(dollars in millions) 2025 2024 2025 2024

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Cost of Services

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;

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

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

• a decrease of $92 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 $47 million in personnel costs related to the impact of workforce changes;

• a decrease of $32 million in other direct costs primarily related to legacy wireline products and services;

• a decrease of $31 million in customer premise equipment costs due to lower volumes sold.

The decrease during the nine months ended September 30, 2025 was primarily due to:

• a decrease of $149 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 $113 million in personnel costs related to the impact of workforce changes;

• a decrease of $86 million in other direct costs primarily related to legacy wireline products and services;

• a decrease of $79 million in customer premise equipment costs due to lower volumes sold.

Cost of Wireless Equipment

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.

Cost of wireless equipment remained relatively flat during the three months ended September 30, 2025 and increased during the nine months ended September 30, 2025 compared to the similar periods in 2024.

The increase during the nine months ended September 30, 2025 was primarily due to:

• an increase of $74 million related to a shift to higher priced equipment in the mix of wireless devices sold;

• an increase of $47 million driven by a higher volume of wireless devices sold.

Selling, General and Administrative Expense

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.

Selling, general and administrative expense decreased for both the three and nine months ended September 30, 2025 compared to the similar periods in 2024.

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

• a decrease of $48 million due to 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;

• a decrease of $18 million in advertising costs.

The decrease during the nine months ended September 30, 2025 was primarily due to:

• a decrease of $231 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;

• a decrease of $34 million in advertising costs.

Depreciation and Amortization Expense

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.

Depreciation and amortization expense decreased during both the three and nine months ended September 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 Six Months Ended

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

Three Months Ended Nine Months Ended

September 30, Increase/(Decrease) September 30, Increase/(Decrease)

(dollars in millions) 2025 2024 2025 2024

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Segment EBITDA margin 23.4 % 21.8 % 23.2 % 21.4 %

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.

The changes in the table above during both the three and nine months ended September 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 Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

(dollars in millions) 2025 2024 2025 2024

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Depreciation and amortization expense $ 189 $ 186 $ 571 $ 626

Acquisition and integration related charges

Selling, general and administrative expense

Severance, pension and benefits charges

Selling, general and administrative expense — 1,733 — 1,733

Other (income) expense, net — — — 136

Asset and business rationalization

Cost of Services

Selling, general and administrative expense

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 Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

(dollars in millions) 2025 2024 2025 2024

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Amortization of Acquisition-Related 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.

During the three and nine months ended September 30, 2025, we recorded pre-tax amortization expense of $189 million and $571 million, respectively, related to acquired intangible assets.

During the three and nine months ended September 30, 2024, we recorded pre-tax amortization expense of $186 million and $626 million, respectively, related to acquired intangible assets.

Acquisition and Integration Related Charges

During both the three and nine months ended September 30, 2025, we recorded charges of $52 million related to transaction and integration expenses associated with the pending acquisition of Frontier.

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.

During both the three and nine months ended September 30, 2024, we recorded pre-tax severance charges of $1.7 billion related to separations under our voluntary separation program for select U.S.-based management employees as well as other headcount reduction initiatives.

During the nine months ended September 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.

Asset and Business Rationalization

During both the three and nine months ended September 30, 2024, we recorded a pre-tax asset and business rationalization charge of $374 million predominately related to the decision to cease use of certain real estate assets and exit non-strategic portions of certain businesses as part of our continued transformation initiatives.

Legacy Legal Matter

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.

During the nine months ended September 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

Six Months Ended

Nine Months Ended

September 30,

(dollars in millions) 2025 2024 Change

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(12,822) (11,477) (1,345)

Increase (decrease) in cash, cash equivalents and restricted cash $ (704) $ 397 $ (1,101)

Increase in cash, cash equivalents and restricted cash $ 3,521 $ 1,890 $ 1,631

We use the net cash generated from our operations to invest in new businesses and spectrum, fund expansion and modernization of our networks, pay dividends, service and repay external financing and, when appropriate, buy back shares of our outstanding common stock.

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

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.

Net cash provided by operating activities increased $1.5 billion during the nine months ended September 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 nine months ended September 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 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.

Capital expenditures, including capitalized software, for the nine months ended September 30, 2025 and 2024 were $12.3 billion and $12.0 billion, respectively.

Capital expenditures increased $244 million during the nine months ended September 30, 2025 compared to the similar period in 2024 primarily due to Fios footprint expansion and incremental investments to deploy C-Band spectrum.

Acquisitions of Wireless Licenses

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.

During the nine months ended September 30, 2025 and 2024, we recorded capitalized interest related to wireless licenses of $338 million and $485 million, respectively.

During the nine months ended September 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 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.

During the nine months ended September 30, 2025, net cash used in financing activities was $12.8 billion.

During the nine months ended September 30, 2024, net cash used in financing activities was $11.5 billion.

During the nine months ended September 30, 2025, our net cash used in financing activities was primarily driven by cash dividends paid of $8.6 billion, repayments of asset-backed long-term borrowings of $6.4 billion and repayments and repurchases of long-term borrowings and finance lease obligations of $7.5 billion.

These payments were partially offset by proceeds from asset-backed long-term borrowings of $7.3 billion and proceeds from long-term borrowings of $4.0 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 September 30, 2025, our total debt of $146.8 billion included unsecured debt of $119.7 billion and secured debt of $27.1 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 six months ended June 30, 2025 and 2024, our effective interest rate was 5.1%.

During the nine months ended September 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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Asset-Backed Debt

Cash collections on the receivables and on the underlying receivables related to the participation interest collateralizing our asset-backed debt securities are required at certain specified times to be placed into segregated accounts.

Cash collections on the receivables and on the underlying receivables related to the participation interest collateralizing our asset-backed notes issued to third-party investors and loans received from banks and their conduit facilities are required at certain specified times to be placed into segregated accounts.

Deposits to the segregated accounts are considered restricted cash and are included in Prepaid expenses and other and Other assets in our condensed consolidated balance sheets.

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Long-Term Credit Facilities

At June 30, 2025

At September 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 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.

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

(2) During the nine months ended September 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 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.

Other, net cash flow from financing activities during the nine months ended September 30, 2025 includes $563 million in payments related to vendor financing arrangements, $366 million in equity distribution payments made for controlled entities, $359 million in payments made under the sublease arrangement for our cell towers, and $163 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 $5.7 billion and $5.6 billion in cash dividends during the six months ended June 30, 2025 and 2024, respectively.

We paid $8.6 billion and $8.4 billion in cash dividends during the nine months ended September 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 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.

Our Cash and cash equivalents at September 30, 2025 totaled $7.7 billion, a $3.5 billion increase compared to December 31, 2024, primarily as a result of the factors discussed above.

Restricted cash totaled $450 million and $441 million as of September 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

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

Six Months Ended

Nine Months Ended

September 30,

(dollars in millions) 2025 2024 Change

2 unchanged sentences

Free cash flow $ 15,760 $ 14,461 $ 1,299

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.

The increase in free cash flow during the nine months ended September 30, 2025 compared to the similar period in 2024 is a reflection of the increase in operating cash flows, partially offset by the increase in capital expenditures, both of which are discussed above.

Other Future Obligations

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.

As of September 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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Counterparties to our derivative contracts are major financial institutions with whom we have negotiated derivatives agreements (ISDA master agreements) and credit support annex (CSA) agreements which provide rules for collateral exchange.

The CSA agreements contain fixed cap amounts or rating based thresholds such that we or our counterparties may be required to hold or post collateral based upon changes in outstanding positions as compared to established thresholds or caps and changes in credit ratings.

The CSA agreements contain fixed cap amounts or rating based thresholds such that we or our counterparties may be required to hold or

post collateral based upon changes in outstanding positions as compared to established thresholds or caps and changes in credit ratings.

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 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 September 30, 2025, we did not hold any collateral.

At September 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 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.

As of September 30, 2025, approximately 78% 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 $337 million.

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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.

At September 30, 2025 and December 31, 2024, the fair value of the liability of these contracts was $4.7 billion and $5.3 billion, respectively.

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

At September 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 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.

At September 30, 2025 and December 31, 2024, the fair value of the asset of these contracts was $1.4 billion and $500 million, respectively.

At September 30, 2025 and December 31, 2024, the fair value of the liability of these contracts was $1.2 billion and $2.7 billion, respectively.

At September 30, 2025 and December 31, 2024, the total notional amount of the cross currency swaps was $32.2 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 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.

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

At September 30, 2025 and December 31, 2024, the total notional amount of the foreign exchange forwards was $750 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 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.

The closing of this transaction is subject to the receipt of regulatory approvals and other closing conditions, including the consummation of UScellular's proposed sale of its wireless operations and select spectrum assets to T-Mobile US, Inc., and the termination of certain post-closing arrangements with respect to that sale.

During the nine months ended September 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 (currently known as Array Digital Infrastructure, Inc.) and certain of its subsidiaries (collectively, UScellular) for total consideration of $1.0 billion, subject to certain potential adjustments.

The closing of this transaction is subject to the receipt of regulatory approvals and other closing conditions, including the sale of UScellular's wireless operations and select spectrum assets to T-Mobile US, Inc., which concluded in August 2025, and the termination of certain post-closing arrangements with respect to that sale.

Frontier Communications Parent, Inc.

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Under certain other specified circumstances, Verizon may be required to pay Frontier a termination fee of $590 million.

In October 2025, Verizon entered into an Agreement and Plan of Merger to acquire Starry Group Holdings, Inc., a fixed wireless broadband provider serving multi-dwelling units in five markets across the U.S.

The closing of this transaction is subject to FCC approval and other customary closing conditions.

Cautionary Statement Concerning Forward-Looking Statements

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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