VERIZON COMMUNICATIONS INC 10-K

Item 8. Financial Statements and Supplementary Data Report of Independent Registered Public Accounting Firm To the Shareholders and the Board of Directors of Verizon Communications Inc. Opinion on Internal Control Over Financial Reporting We have audited Verizon Communications Inc. and subsidiaries’ (Verizon) internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Verizon maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on the COSO criteria. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of Verizon as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, cash flows, and changes in equity for each of the three years in the period ended December 31, 2025, and the related notes and financial statement schedule listed in the Index at Item 15(a) and our report dated February 17, 2026 expressed an unqualified opinion thereon. Basis for Opinion Verizon’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management's Annual Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on Verizon’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to Verizon in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control Over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ Ernst & Young LLP Ernst & Young LLP New York, New York February 17, 2026 49 Table of Contents Report of Independent Registered Public Accounting Firm To the Shareholders and the Board of Directors of Verizon Communications Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Verizon Communications Inc. and subsidiaries (Verizon or the Company) as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, cash flows, and changes in equity for each of the three years in the period ended December 31, 2025, and the related notes and financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of Verizon at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), Verizon’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated February 17, 2026 expressed an unqualified opinion thereon. Basis for Opinion These financial statements are the responsibility of Verizon’s management. Our responsibility is to express an opinion on Verizon’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to Verizon in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Valuation of Employee Benefit Obligations Description of the Matter The Company sponsors several pension plans and other post-employment benefit plans. At December 31, 2025, the Company’s aggregate defined benefit pension obligation was $8.0 billion and exceeded the fair value of pension plan assets of $7.9 billion, resulting in an unfunded defined benefit pension obligation of $50 million. Also, at December 31, 2025, the other postretirement benefits obligation was approximately $10.6 billion. As explained in Note 11 of the consolidated financial statements, the Company updates the estimates used to measure employee benefit obligations and plan assets in the fourth quarter and upon a remeasurement event to reflect the actual return on plan assets and updated actuarial assumptions. Auditing the employee benefit obligations was complex due to the highly judgmental nature of the actuarial assumption relating to the discount rates used in the measurement process. This assumption had a significant effect on the projected benefit obligations. 50 Table of Contents How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the employee benefits obligation valuation process. For example, we tested controls over management’s review of the employee benefit obligation calculations, the actuarial assumption relating to the discount rates and the data inputs provided to the actuary. To test the employee benefit obligations, our audit procedures included, among others, evaluating the methodologies used, the actuarial assumption relating to the discount rates and the underlying data used by the Company. We compared the actuarial assumption used by management to historical trends, current economic factors and evaluated the change in the employee benefit obligations from prior year due to the change in service cost, interest cost, actuarial gains and losses, benefit payments, contributions and other activities. In addition, we involved an actuarial specialist to assist in evaluating management’s methodology for determining the discount rates that reflect the maturity and duration of the benefit payments and are used to measure the employee benefit obligations. As part of this assessment, we compared the projected cash flows to prior year projections and compared the current year benefits paid to the prior year projected cash flows. We also tested the completeness and accuracy of the underlying data. /s/ Ernst & Young LLP Ernst & Young LLP We have served as Verizon's auditor since 2000. New York, New York February 17, 2026 51 Table of Contents Consolidated Statements of Income Verizon Communications Inc. and Subsidiaries (dollars in millions, except per share amounts) Years Ended December 31, 2025 2024 2023 Operating Revenues Service revenues and other $ 112,721 $ 111,571 $ 109,652 Wireless equipment revenues 25,470 23,217 24,322 Total Operating Revenues 138,191 134,788 133,974 Operating Expenses Cost of services (exclusive of items shown below) 27,789 27,997 28,100 Cost of wireless equipment 28,976 26,100 26,787 Selling, general and administrative expense 33,818 34,113 32,745 Depreciation and amortization expense 18,349 17,892 17,624 Verizon Business Group goodwill impairment — — 5,841 Total Operating Expenses 108,932 106,102 111,097 Operating Income 29,259 28,686 22,877 Equity in earnings (losses) of unconsolidated businesses — ( 53 ) ( 53 ) Other income (expense), net 107 995 ( 313 ) Interest expense ( 6,694 ) ( 6,649 ) ( 5,524 ) Income Before Provision For Income Taxes 22,672 22,979 16,987 Provision for income taxes ( 5,064 ) ( 5,030 ) ( 4,892 ) Net Income $ 17,608 $ 17,949 $ 12,095 Net income attributable to noncontrolling interests $ 434 $ 443 $ 481 Net income attributable to Verizon 17,174 17,506 11,614 Net Income $ 17,608 $ 17,949 $ 12,095 Basic Earnings Per Common Share Net income attributable to Verizon $ 4.06 $ 4.15 $ 2.76 Weighted-average shares outstanding (in millions) 4,226 4,218 4,211 Diluted Earnings Per Common Share Net income attributable to Verizon $ 4.06 $ 4.14 $ 2.75 Weighted-average shares outstanding (in millions) 4,231 4,223 4,215 See Notes to Consolidated Financial Statements 52 Table of Contents Consolidated Statements of Comprehensive Income Verizon Communications Inc. and Subsidiaries (dollars in millions) Years Ended December 31, 2025 2024 2023 Net Income $ 17,608 $ 17,949 $ 12,095 Other Comprehensive Income (Loss), Net of Tax (Expense) Benefit Foreign currency translation adjustments, net of tax of $ 26 , $( 13 ) and $ 6 126 ( 97 ) 62 Unrealized gain (loss) on cash flow hedges, net of tax of $ 3 , $( 27 ) and $( 30 ) ( 8 ) 81 88 Unrealized gain (loss) on fair value hedges, net of tax of $ 306 , $( 162 ) and $( 181 ) ( 917 ) 484 536 Unrealized gain (loss) on marketable securities, net of tax of $( 1 ), $ 1 and $( 2 ) 5 ( 3 ) 7 Defined benefit pension and postretirement plans, net of tax of $ 4 , $ 4 and $ 68 ( 10 ) ( 8 ) ( 208 ) Other comprehensive income (loss) attributable to Verizon ( 804 ) 457 485 Total Comprehensive Income $ 16,804 $ 18,406 $ 12,580 Comprehensive income attributable to noncontrolling interests $ 434 $ 443 $ 481 Comprehensive income attributable to Verizon 16,370 17,963 12,099 Total Comprehensive Income $ 16,804 $ 18,406 $ 12,580 See Notes to Consolidated Financial Statements 53 Table of Contents Consolidated Balance Sheets Verizon Communications Inc. and Subsidiaries (dollars in millions, except per share amounts) At December 31, 2025 2024 Assets Current assets Cash and cash equivalents $ 19,048 $ 4,194 Accounts receivable 28,347 27,261 Less Allowance for credit losses 1,250 1,152 Accounts receivable, net 27,097 26,109 Inventories 2,441 2,247 Prepaid expenses and other 8,336 7,973 Total current assets 56,922 40,523 Property, plant and equipment 337,991 331,406 Less Accumulated depreciation 228,524 222,884 Property, plant and equipment, net 109,467 108,522 Investments in unconsolidated businesses 785 842 Wireless licenses 157,039 156,613 Goodwill 22,841 22,841 Other intangible assets, net 10,458 11,129 Operating lease right-of-use assets 23,498 24,472 Other assets 23,248 19,769 Total assets $ 404,258 $ 384,711 Liabilities and Equity Current liabilities Debt maturing within one year $ 18,618 $ 22,633 Accounts payable and accrued liabilities 24,981 23,374 Current operating lease liabilities 4,542 4,415 Other current liabilities 14,229 14,349 Total current liabilities 62,370 64,771 Long-term debt 139,532 121,381 Employee benefit obligations 11,099 11,997 Deferred income taxes 48,717 46,732 Non-current operating lease liabilities 18,951 19,928 Other liabilities 17,848 19,327 Total long-term liabilities 236,147 219,365 Commitments and Contingencies (Note 16) Equity Series preferred stock ($ 0.10 par value; 250,000,000 shares authorized; none issued) — — Common stock ($ 0.10 par value; 6,250,000,000 shares authorized in each period; 4,291,433,646 shares issued in each period) 429 429 Additional paid in capital 13,372 13,466 Retained earnings 94,744 89,110 Accumulated other comprehensive loss ( 1,727 ) ( 923 ) Common stock in treasury, at cost ( 74,258,296 and 81,753,488 shares outstanding) ( 3,255 ) ( 3,583 ) Deferred compensation – employee stock ownership plans (ESOPs) and other 897 738 Noncontrolling interests 1,281 1,338 Total equity 105,741 100,575 Total liabilities and equity $ 404,258 $ 384,711 See Notes to Consolidated Financial Statements 54 Table of Contents Consolidated Statements of Cash Flows Verizon Communications Inc. and Subsidiaries (dollars in millions) Years Ended December 31, 2025 2024 2023 Cash Flows from Operating Activities Net Income $ 17,608 $ 17,949 $ 12,095 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization expense 18,349 17,892 17,624 Employee retirement benefits 1,025 ( 52 ) 1,206 Deferred income taxes 2,340 815 2,388 Provision for expected credit losses 2,349 2,338 2,214 Equity in losses of unconsolidated businesses, inclusive of dividends received 42 75 84 Verizon Business Group goodwill impairment — — 5,841 Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses: Accounts receivable ( 2,513 ) ( 2,565 ) ( 2,198 ) Inventories ( 232 ) ( 196 ) 287 Prepaid expenses and other ( 1,394 ) ( 626 ) ( 435 ) Accounts payable and accrued liabilities and Other current liabilities 1,819 1,109 2,079 Other, net ( 2,256 ) 173 ( 3,710 ) Net cash provided by operating activities 37,137 36,912 37,475 Cash Flows from Investing Activities Capital expenditures (including capitalized software) ( 17,011 ) ( 17,090 ) ( 18,767 ) Cash paid related to acquisitions of businesses, net of cash acquired — — ( 30 ) Acquisitions of wireless licenses ( 450 ) ( 900 ) ( 5,796 ) Other, net 801 ( 684 ) 1,161 Net cash used in investing activities ( 16,660 ) ( 18,674 ) ( 23,432 ) Cash Flows from Financing Activities Proceeds from long-term borrowings 18,268 3,146 2,018 Proceeds from asset-backed long-term borrowings 9,338 12,422 6,594 Repayments of long-term borrowings and finance lease obligations ( 11,352 ) ( 11,854 ) ( 6,181 ) Repayments of asset-backed long-term borrowings ( 8,437 ) ( 8,490 ) ( 4,443 ) Dividends paid ( 11,481 ) ( 11,249 ) ( 11,025 ) Other, net ( 1,949 ) ( 1,075 ) ( 1,620 ) Net cash used in financing activities ( 5,613 ) ( 17,100 ) ( 14,657 ) Increase (decrease) in cash, cash equivalents and restricted cash 14,864 1,138 ( 614 ) Cash, cash equivalents and restricted cash, beginning of period 4,635 3,497 4,111 Cash, cash equivalents and restricted cash, end of period (Note 1) $ 19,499 $ 4,635 $ 3,497 See Notes to Consolidated Financial Statements 55 Table of Contents Consolidated Statements of Changes in Equity Verizon Communications Inc. and Subsidiaries (dollars in millions, except per share amounts, and shares in thousands) Years Ended December 31, 2025 2024 2023 Shares Amount Shares Amount Shares Amount Common Stock Balance at beginning of year 4,291,434 $ 429 4,291,434 $ 429 4,291,434 $ 429 Balance at end of year 4,291,434 429 4,291,434 429 4,291,434 429 Additional Paid In Capital Balance at beginning of year 13,466 13,631 13,420 Other ( 94 ) ( 165 ) 211 Balance at end of year 13,372 13,466 13,631 Retained Earnings Balance at beginning of year 89,110 82,915 82,380 Net income attributable to Verizon 17,174 17,506 11,614 Dividends declared ($ 2.735 , $ 2.685 , $ 2.635 per share) ( 11,539 ) ( 11,306 ) ( 11,082 ) Other ( 1 ) ( 5 ) 3 Balance at end of year 94,744 89,110 82,915 Accumulated Other Comprehensive Income (Loss) Balance at beginning of year attributable to Verizon ( 923 ) ( 1,380 ) ( 1,865 ) Foreign currency translation adjustments 126 ( 97 ) 62 Unrealized gain (loss) on cash flow hedges ( 8 ) 81 88 Unrealized gain (loss) on fair value hedges ( 917 ) 484 536 Unrealized gain (loss) on marketable securities 5 ( 3 ) 7 Defined benefit pension and postretirement plans ( 10 ) ( 8 ) ( 208 ) Other comprehensive income (loss) ( 804 ) 457 485 Balance at end of year attributable to Verizon ( 1,727 ) ( 923 ) ( 1,380 ) Treasury Stock Balance at beginning of year ( 81,753 ) ( 3,583 ) ( 87,173 ) ( 3,821 ) ( 91,572 ) ( 4,013 ) Employee plans (Note 14) 7,482 328 5,407 237 4,380 191 Shareholder plans (Note 14) 13 — 13 1 19 1 Balance at end of year ( 74,258 ) ( 3,255 ) ( 81,753 ) ( 3,583 ) ( 87,173 ) ( 3,821 ) Deferred Compensation-ESOPs and Other Balance at beginning of year 738 656 793 Restricted stock equity grant 582 447 296 Amortization ( 423 ) ( 365 ) ( 433 ) Balance at end of year 897 738 656 Noncontrolling Interests Balance at beginning of year 1,338 1,369 1,319 Total comprehensive income 434 443 481 Distributions and other ( 491 ) ( 474 ) ( 431 ) Balance at end of year 1,281 1,338 1,369 Total Equity $ 105,741 $ 100,575 $ 93,799 See Notes to Consolidated Financial Statements 56 Table of Contents Notes to Consolidated Financial Statements Verizon Communications Inc. and Subsidiaries Note 1. Description of Business and Summary of Significant Accounting Policies Description of Business Verizon Communications Inc. (the Company) is a holding company that, acting through its subsidiaries (together with the Company, collectively, Verizon), is one of the world’s leading providers of communications, technology, information and streaming products and services to consumers, businesses and government entities. With a presence around the world, we offer data, video and voice services and solutions on our networks and platforms that are designed to meet customers’ demand for mobility, reliable network connectivity and security. We have two reportable segments that we operate and manage as strategic business units - Verizon Consumer Group (Consumer) and Verizon Business Group (Business). Our Consumer segment provides consumer-focused wireless and wireline communications services and products. Our wireless services are provided across one of the most extensive wireless networks in the United States (U.S.) under the Verizon family of brands and through wholesale and other arrangements. We also provide fixed wireless access (FWA) broadband through our fifth-generation (5G) or fourth-generation (4G) Long-Term Evolution (LTE) networks as an alternative to traditional landline internet access. As of December 31, 2025, our wireline services are provided in nine states in the Mid-Atlantic and Northeastern U.S., as well as Washington D.C., over our 100% fiber-optic network through our Verizon Fios product portfolio and over a traditional copper-based network to customers who are not served by Fios. Our Business segment provides wireless and wireline communications services and products, including mobility communication services, FWA and wireline broadband, Internet of Things (IoT) connectivity solutions, advanced communication services, corporate networking solutions, local and long distance voice services, and security and managed network services. We provide these products and services to businesses, public sector customers and wireless and wireline carriers across the U.S. and a subset of these products and services to customers around the world. Consolidation The method of accounting applied to investments, whether consolidated or equity, involves an evaluation of all significant terms of the investments that explicitly grant or suggest evidence of control or influence over the operations of the investee. The consolidated financial statements include our controlled subsidiaries, as well as variable interest entities (VIE) where we are deemed to be the primary beneficiary. For controlled subsidiaries that are not wholly-owned, the noncontrolling interests are included in Net income and Total equity. Investments in businesses that we do not control, but have the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method. Equity method investments are included in Investments in unconsolidated businesses in our consolidated balance sheets. All significant intercompany accounts and transactions have been eliminated. Basis of Presentation We have reclassified certain prior year amounts to conform to the current year presentation. Use of Estimates We prepare our financial statements using U.S. generally accepted accounting principles (GAAP), which requires management to make estimates and assumptions that affect reported amounts and disclosures. These estimates and assumptions take into account historical and forward-looking factors that the Company believes are reasonable. Actual results could differ significantly from those estimates. Examples of significant estimates include the allowance for credit losses, the recoverability of property, plant and equipment and other long-lived assets, the incremental borrowing rate for the lease liability, fair value measurements, including those related to financial instruments, goodwill, spectrum licenses and intangible assets, unrecognized tax benefits, valuation allowances on tax assets, pension and postretirement benefit obligations, contingencies and the identification and valuation of assets acquired and liabilities assumed in connection with business combinations. Revenue Recognition We earn revenue from contracts with customers, primarily through the provision of telecommunications and other services and through the sale of wireless equipment. These services include a variety of communication and connectivity services for our Consumer and Business customers including other carriers that use our facilities to provide services to their customers, as well as professional and integrated managed services for our large enterprise and government customers. We account for these revenues under Topic 606. 57 Table of Contents We also earn revenues that are not accounted for under Topic 606 from leasing arrangements (such as those for towers and equipment), captive reinsurance arrangements primarily related to wireless device insurance and the interest recognized when equipment is sold to the customer by an authorized agent under a device payment plan agreement. Nature of Products and Services Telecommunications Service We offer wireless services through a variety of plans on a postpaid or prepaid basis. For wireless service, we recognize revenue using an output method, either as the service allowance units are used or as time elapses, because it reflects the pattern by which we satisfy our performance obligation through the transfer of service to the customer. Monthly service is generally billed in advance, which results in a contract liability. See Note 2 for additional information. For postpaid plans, where monthly usage exceeds the allowance, the overage usage represents options held by the customer for incremental services and the usage-based fee is recognized when the customer exercises the option (typically on a month-to-month basis). For our contracts related to wireline communication and connectivity services, in general, fixed monthly fees for service are billed one month in advance, which results in a contract liability, and service revenue is recognized over the enforceable contract term as the service is rendered, as the customer simultaneously receives and consumes the benefits of the services through network access and usage. While substantially all of our wireline service revenue contracts are the result of providing access to our networks, revenue from services that are not fixed in amount and, instead, are based on usage are generally billed in arrears and recognized as the usage occurs. Equipment We sell wireless devices and accessories under the Verizon brand and other brands. Equipment revenue is generally recognized when the products are delivered to and accepted by the customer, as this is when control passes to the customer. In addition to offering the sale of equipment on a standalone basis, we have two primary offerings through which customers pay for a wireless device, in connection with a service contract: fixed-term plans (for our Business customers) and device payment plans. Under a fixed-term plan, the customer is sold the wireless device without any upfront charge or at a discounted price in exchange for entering into a fixed-term service contract (typically for a term of 36 months or less). Under a device payment plan, the customer is sold the wireless device in exchange for a non-interest-bearing installment note, which is repaid by the customer, typically over a 36-month term, and concurrently enters into a month-to-month contract for wireless service. We may offer certain promotions that provide billing credits applied over a specified term, contingent upon the customer maintaining service. The credits are included in the transaction price, which are allocated to the performance obligations based on their relative selling price and are recognized when earned. A financing component exists in both our fixed-term plans and device payment plans because the timing of the payment for the device, which occurs over the contract term, differs from the satisfaction of the performance obligation, which occurs at contract inception upon transfer of the device to the customer. We periodically assess, at the contract level, the significance of the financing component inherent in our fixed-term and device payment plan receivable based on qualitative and quantitative considerations related to our customer classes. These considerations include assessing the commercial objective of our plans, the term and duration of financing provided, interest rates prevailing in the marketplace, and credit risks of our customer classes, all of which impact our selection of appropriate discount rates. Based on current facts and circumstances, we determined that the financing component in our existing wireless device payments and fixed-term contracts sold through the direct channel is not significant and therefore is not accounted for separately. See Note 8 for additional information on the interest on equipment financed on a device payment plan agreement when sold to the customer by an authorized agent in our indirect channel. Wireless Contracts For our wireless contracts, total contract revenue, which represents the transaction price for wireless service and wireless equipment, is allocated between service and equipment revenue based on their estimated standalone selling prices. We estimate the standalone selling price of the device or accessory to be its retail price excluding subsidies or conditional purchase discounts. We estimate the standalone selling price of wireless service to be the price that we offer to customers on month-to-month contracts that can be cancelled at any time without penalty (i.e., when there is no fixed-term for service) or when service is procured without the concurrent purchase of a wireless device. In addition, we also assess whether the service term is impacted by certain legally enforceable rights and obligations in our contract with customers, such as penalties that a customer would have to pay to early terminate a fixed-term contract or billing credits that would cease if the month-to-month wireless service is canceled. The assessment of these legally enforceable rights and obligations involves judgment and impacts our determination of the transaction price and related disclosures. From time to time, we may offer certain promotions that provide our customers on device payment plans with the right to upgrade to a new device after paying a specified portion of their device payment plan agreement amount and trading in their device in good working order. We account for this trade-in right as a guarantee obligation. The full amount of the trade-in right's fair value is recognized as a guarantee liability and results in a reduction to the revenue recognized upon the sale of the device. The total 58 Table of Contents transaction price is reduced by the guarantee, which is accounted for outside the scope of Topic 606, and the remaining transaction price is allocated between the performance obligations within the contract. Our fixed-term plans generally include the sale of a wireless device at subsidized prices. This results in the creation of a contract asset at the time of sale, which represents the recognition of equipment revenue in excess of amounts billed. For our device payment plans, billing credits are accounted for as consideration payable to a customer and are included in the determination of total transaction price, resulting in a contract liability. We may provide a right of return on our products and services for a short time period after a sale. These rights are accounted for as variable consideration when determining the transaction price, and accordingly we recognize revenue based on the estimated amount to which we expect to be entitled after considering expected returns. Returns and credits are estimated at contract inception and updated at the end of each reporting period as additional information becomes available. We also may provide credits or incentives on our products and services for contracts with resellers, which are accounted for as variable consideration when estimating the amount of revenue to recognize. Wireline Contracts Total consideration for wireline services that are bundled in a single contract is allocated to each performance obligation based on our standalone selling price for each service. While many contracts include one or more service performance obligations, the revenue recognition pattern is generally not impacted by the allocation since the services are generally satisfied over the same period of time. We estimate the standalone selling price to be the price of the services when sold on a standalone basis without any promotional discount. In addition, we also assess whether the service term is impacted by certain legally enforceable rights and obligations in our contract with customers such as penalties that a customer would have to pay to early terminate a fixed-term contract. The assessment of these legally enforceable rights and obligations involves judgment and impacts our determination of transaction price and related disclosures. We may provide performance-based credits or incentives on our products and services for contracts with our Business customers, which are accounted for as variable consideration when estimating the transaction price. Credits are estimated at contract inception and are updated at the end of each reporting period as additional information becomes available. Wireless and Wireline Contracts For offers that include third-party providers, we evaluate whether we are acting as the principal or as the agent with respect to the goods or services provided to the customer. This principal-versus-agent assessment involves judgment and focuses on whether the facts and circumstances of the arrangement indicate that the goods or services were controlled by us prior to transferring them to the customer. To evaluate if we have control, we consider various factors including whether we are primarily responsible for fulfillment, bear risk of loss and have discretion over pricing. Other We offer telematics services including smart fleet management and optimization software. Telematics service revenue is generated primarily through subscription contracts. We recognize revenue over time for our subscription contracts. We report taxes collected from customers on behalf of governmental authorities on revenue-producing transactions on a net basis. Maintenance and Repairs We charge the cost of maintenance and repairs, including the cost of replacing minor items not constituting substantial betterments, principally to Cost of services as these costs are incurred. Advertising Costs Costs for advertising products and services, as well as other promotional and sponsorship costs, are charged to Selling, general and administrative expense in the periods in which they are incurred. See Note 15 for additional information. Earnings Per Common Share Basic earnings per common share are based on the weighted-average number of shares outstanding during the period. Where appropriate, diluted earnings per common share include the dilutive effect of shares issuable under our stock-based compensation plans. There were a total of approximately 4.7 million, 4.7 million, and 4.2 million outstanding dilutive securities, primarily consisting of performance stock units and restricted stock units, included in the computation of diluted earnings per common share for the years ended December 31, 2025, 2024, and 2023, respectively. 59 Table of Contents Cash, Cash Equivalents and Restricted Cash We consider all highly liquid investments with an original maturity of 90 days or less when purchased to be cash equivalents. Cash equivalents are stated at cost, which approximates quoted market value and includes amounts held in money market funds. 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. Deposits to the segregated accounts are considered restricted cash. Cash, cash equivalents and restricted cash are included in the following line items in the consolidated balance sheets: (dollars in millions) At December 31, 2025 2024 Increase / (Decrease) Cash and cash equivalents $ 19,048 $ 4,194 $ 14,854 Restricted cash: Prepaid expenses and other 297 319 ( 22 ) Other assets 154 122 32 Cash, cash equivalents and restricted cash $ 19,499 $ 4,635 $ 14,864 Investments in Debt and Equity Securities Investments in equity securities that are not accounted for under equity method accounting or result in consolidation are to be measured at fair value. For investments in equity securities without readily determinable fair values, Verizon elects the measurement alternative permitted under GAAP to measure these investments at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. For investments in debt securities without quoted prices, Verizon uses an alternative matrix pricing method. Investments in equity securities that do not result in consolidation of the investee are included in Investments in unconsolidated businesses and debt securities are included in Other assets in our consolidated balance sheets. Allowance for Credit Losses Accounts receivable are recorded at amortized cost less an allowance for credit losses that are not expected to be recovered. The gross amount of accounts receivable and corresponding allowance for credit losses are presented separately in the consolidated balance sheets. We maintain allowances for credit losses resulting from the expected failure or inability of our customers to make required payments. We recognize the allowance for credit losses at inception and reassess quarterly based on management’s expectation of the asset’s collectability. The allowance is based on multiple factors including historical experience with bad debts, the credit quality of the customer base, the aging of such receivables and current macroeconomic conditions, as well as management’s expectations of conditions in the future, as applicable. Our allowance for credit losses is based on management’s assessment of the collectability of assets pooled together with similar risk characteristics. We pool our device payment plan agreement receivables based on the credit quality indicators and shared risk characteristics of "new customers" and "existing customers." New customers are defined as customers who have been with Verizon for less than 210 days. Existing customers are defined as customers who have been with Verizon for 210 days or more. We record an allowance to reduce the receivables to the amount that is expected to be collectible. For device payment plan agreement receivables, we record bad debt expense based on a default and loss calculation using our proprietary loss model. The expected loss rate is determined based on customer credit scores and other qualitative factors as noted above. The loss rate is assigned individually on a customer by customer basis and the custom credit scores are then aggregated by vintage and used in our proprietary loss model to calculate the weighted-average loss rate used for determining the allowance balance. We monitor the collectability of our wireless service receivables as one overall pool. Wireline service receivables are disaggregated and pooled by the following types of customers and related contracts: consumer, small and medium business, enterprise, public sector and wholesale. For wireless service receivables and wireline consumer and small and medium business receivables, the allowance is calculated based on a 12 month rolling average write-off balance multiplied by the average life-cycle of an account from billing to write-off. The risk of loss is assessed over the contractual life of the receivables and is adjusted based on the historical loss amounts for current and future conditions based on management’s qualitative considerations. For enterprise, public sector and wholesale wireline receivables, the allowance for credit losses is based on historical write-off experience and individual customer credit risk, if applicable. We consider multiple factors in determining the allowance as discussed above. Inventories Inventory consists of wireless and wireline equipment held for sale, which is carried at the lower of cost (determined principally on either an average cost or first-in, first-out basis) or net realizable value. 60 Table of Contents Property, Plant and Equipment and Depreciation We record property, plant and equipment at cost. Property, plant and equipment are generally depreciated on a straight-line basis. Leasehold improvements are amortized over the shorter of the estimated life of the improvement or the remaining term of the related lease, calculated from the time the asset was placed in service. When depreciable assets are retired or otherwise disposed of, the related cost and accumulated depreciation are deducted from the property, plant and equipment accounts and any gains or losses on disposition are recognized in Selling, general and administrative expense. We capitalize and depreciate network software purchased or developed within property, plant and equipment assets. We also capitalize interest associated with the acquisition or construction of network-related assets. Capitalized interest is reported as a reduction in interest expense and depreciated as part of the cost of the network-related assets. Computer Software and Cloud Computing Costs We capitalize the cost of internal-use network and non-network software and defer certain costs associated with cloud computing service arrangements that have a useful life and term in excess of one year. Subsequent additions, modifications or upgrades to internal-use network and non-network software are capitalized only to the extent that they add significant new functionality. Planning, software maintenance and training costs for internal-use software and cloud computing arrangements are expensed in the period in which they are incurred. We capitalize interest associated with the development of internal-use network and non-network software. Capitalized non-network internal-use software costs are amortized using the straight-line method over a period of 3 to 7 years and are included in Other intangible assets, net in our consolidated balance sheets. Costs incurred in implementing a cloud computing service arrangement are deferred during the application-development stage and recorded as Prepaid expense and other in our consolidated balance sheets. Once a project is substantially complete and ready for its intended use, we stop deferring the related cloud computing arrangement costs. For a discussion of our impairment policy for capitalized non-network software costs, see "Goodwill and Other Intangible Assets" below. See Note 4 for additional information of internal-use non-network software reflected in our consolidated balance sheets. Similar to capitalized software costs, deferred costs associated with cloud computing arrangements are subject to impairment testing. Goodwill and Other Intangible Assets Goodwill Goodwill is the excess of the acquisition cost of businesses over the fair value of the identifiable net assets acquired. Impairment testing for goodwill is performed annually in the fourth quarter or more frequently if impairment indicators are present. To determine if goodwill is potentially impaired, we have the option to perform a qualitative assessment. However, we may elect to bypass the qualitative assessment and perform a quantitative impairment test even if no indications of a potential impairment exist. It is our policy to perform quantitative impairment assessment at least every three years . Under the qualitative assessment, we consider several factors, including the enterprise value of the reporting unit from the last quantitative test and the excess of fair value over carrying value from this test, macroeconomic conditions (including changes in interest rates and discount rates), industry and market considerations (including industry revenue and earnings before interest, taxes, depreciation and amortization (EBITDA) margin, projections and recent merger and acquisition activity), the recent and projected financial performance of the reporting unit, as well as other factors. The quantitative impairment test for goodwill is performed at the reporting unit level and compares the fair value of the reporting unit (calculated using a combination of a market approach and a discounted cash flow method, as a form of the income approach) to its carrying value. Estimated fair values of reporting units are Level 3 measures in the fair value hierarchy, see "Fair Value Measurements" discussion below for additional information. The market approach includes the use of comparative multiples of guideline companies to complement discounted cash flow results. The discounted cash flow method is based on the present value of two components, projected cash flows and a terminal value. The terminal value represents the expected normalized future cash flows of the reporting unit beyond the cash flows from the discrete projection period. The fair value of the reporting unit is calculated based on the sum of the present value of the cash flows from the discrete period and the present value of the terminal value. The discount rate represents our estimate of the weighted-average cost of capital, or expected return, that a marketplace participant would have required as of the valuation date. If the carrying value exceeds the fair value, an impairment charge is booked for the excess carrying value over fair value, limited to the total amount of goodwill of that reporting unit. During the fourth quarter each year, we update our three-year strategic planning review for each of our reporting units. Those plans consider current economic conditions and trends, estimated future operating results, our view of growth-rates and anticipated future economic and regulatory conditions. See Note 4 for additional information regarding our goodwill impairment testing. 61 Table of Contents Intangible Assets Not Subject to Amortization A significant portion of our intangible assets are wireless licenses that provide our wireless operations with the exclusive right to utilize designated radio frequency spectrum to provide wireless communication services. While licenses are issued for only a fixed time, generally ten to fifteen years , such licenses are subject to renewal by the Federal Communications Commission (FCC). License renewals have occurred routinely and at nominal cost. Moreover, we have determined that there are currently no legal, regulatory, contractual, competitive, economic or other factors that limit the useful life of our wireless licenses. As a result, we treat the wireless licenses as an indefinite-lived intangible asset. We re-evaluate the useful life determination for wireless licenses each year to determine whether events and circumstances continue to support an indefinite useful life. We aggregate our wireless licenses into one single unit of accounting, as we utilize our wireless licenses on an integrated basis as part of our nationwide wireless network. We test our wireless licenses for potential impairment annually or more frequently if impairment indicators are present. We have the option to first perform a qualitative assessment to determine whether it is necessary to perform a quantitative impairment test. However, we may elect to bypass the qualitative assessment in any period and proceed directly to performing the quantitative impairment test. It is our policy to perform a quantitative impairment assessment at least every three years. As part of our qualitative assessment we consider several factors including the enterprise value of our combined wireless business, macroeconomic conditions (including changes in interest rates and discount rates), industry and market considerations (including industry revenue and subscriber growth, as well as recent merger and acquisition activity), the recent and projected financial performance of our combined wireless business as a whole, as well as other factors including the result of our last quantitative assessment. See Note 4 for additional information regarding our impairment tests. Our quantitative impairment assessment consists of comparing the estimated fair value of our aggregate wireless licenses to the aggregated carrying amount as of the test date. Under our quantitative assessment, we estimate the fair value of our wireless licenses using the Greenfield approach. The Greenfield approach is an income based valuation approach that values the wireless licenses by calculating the cash flow generating potential of a hypothetical start-up company that goes into business with no assets except the wireless licenses to be valued. A discounted cash flow analysis is used to estimate what a marketplace participant would be willing to pay to purchase the aggregated wireless licenses as of the valuation date. If the estimated fair value of the aggregated wireless licenses is less than the aggregated carrying amount of the wireless licenses, then an impairment charge is recognized. Interest expense incurred while qualifying activities are performed to ready wireless licenses for their intended use is capitalized as part of wireless licenses. The capitalization period ends when the development is discontinued or substantially completed and the license is ready for its intended use. Wireless licenses can be purchased through public auctions conducted by the FCC. Deposits required to participate in these auctions and purchase licenses are recorded within Other assets in our consolidated balance sheets until the corresponding licenses are received and within Net cash used in investing activities in our consolidated statements of cash flows. Intangible Assets Subject to Amortization and Long-Lived Assets Our intangible assets that do not have indefinite lives (primarily customer lists and non-network internal-use software) are amortized over their estimated useful lives. All of our intangible assets subject to amortization and other long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If any indications of impairment are present, we would test for recoverability by comparing the carrying amount of the asset group to the net undiscounted cash flows expected to be generated from the asset group. If those net undiscounted cash flows do not exceed the carrying amount, we would perform the next step, which is to determine the fair value of the asset group and record an impairment, if any. We re-evaluate the useful life determinations for these intangible assets each year to determine whether events and circumstances warrant a revision to their remaining useful lives. See Note 4 for information related to the carrying amount of goodwill, wireless licenses and other intangible assets, as well as the major components and average useful lives of our other acquired intangible assets. Leases We lease network equipment including towers, distributed antenna systems, small cells, real estate, connectivity mediums which include dark fiber, equipment, and other various types of assets for use in our operations under both operating and finance leases. We assess whether an arrangement is a lease or contains a lease at inception. For arrangements considered leases or that contain a lease that is accounted for separately, we determine the classification and initial measurement of the right-of-use asset and lease liability at the lease commencement date, which is the date that the underlying asset becomes available for use. For both operating and finance leases, we recognize a right-of-use asset, which represents our right to use the underlying asset for the lease term, and a lease liability, which represents the present value of our obligation to make payments arising over the lease term. The present value of the lease payments is calculated using the incremental borrowing rate for operating and finance leases. The incremental borrowing rate is determined using a portfolio approach based on the rate of interest that the Company 62 Table of Contents would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. Management uses the unsecured borrowing rate and risk-adjusts that rate to approximate a collateralized rate, which is updated on a quarterly basis. In those circumstances where Verizon is the lessee, we account for non-lease components associated with our leases (e.g., common area maintenance costs) and lease components as a single lease component for substantially all of our asset classes. Additionally, in arrangements where we are the lessor, we have customer premise equipment for which we account for non-lease components (e.g., service revenue) and lease components as combined components under the revenue recognition guidance in Topic 606 as the service revenues are the predominant components in the arrangements. Rent expense for operating leases is recognized on a straight-line basis over the term of the lease and is included in either Cost of services or Selling, general and administrative expense in our consolidated statements of income, based on the use of the facility or equipment on which rent is being paid. Variable rent payments related to both operating and finance leases are expensed in the period incurred. Our variable lease payments consist of payments dependent on various external indicators, including real estate taxes, common area maintenance charges and utility usage. Operating leases with a term of 12 months or less are not recorded in our consolidated balance sheets; we recognize rent expense for these leases on a straight-line basis over the lease term. We recognize the amortization of the right-of-use asset for our finance leases on a straight-line basis over the shorter of the lease term or the useful life of the right-of-use asset in Depreciation and amortization expense in our consolidated statements of income. The interest expense related to finance leases is recognized using the effective interest method based on the discount rate determined at lease commencement and is included within Interest expense in our consolidated statements of income. See Note 6 for additional information related to leases, including disclosure required under Topic 842. Fair Value Measurements Fair value of financial and non-financial assets and liabilities is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The three-tier hierarchy for inputs used in measuring fair value, which prioritizes the inputs used in the methodologies of measuring fair value for assets and liabilities, is as follows: Level 1 — Quoted prices in active markets for identical assets or liabilities Level 2 — Observable inputs other than quoted prices in active markets for identical assets and liabilities Level 3 — Unobservable pricing inputs in the market Financial assets and financial liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurements. Our assessment of the significance of a particular input to the fair value measurements requires judgment and may affect the valuation of the assets and liabilities being measured and their categorization within the fair value hierarchy . Income Taxes Our effective tax rate is based on pre-tax income, statutory tax rates, tax laws and regulations and tax planning strategies available to us in the various jurisdictions in which we operate. Deferred income taxes are provided for temporary differences in the basis between financial statement and income tax assets and liabilities. Deferred income taxes are recalculated annually at tax rates in effect for the years in which those tax assets and liabilities are expected to be realized or settled. We record valuation allowances to reduce our deferred tax assets to the amount that is more likely than not to be realized. We use a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return. The first step is recognition: we determine whether it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, we presume that the position will be examined by the appropriate taxing authority that has full knowledge of all relevant information. The second step is measurement: a tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in one or more of the following: an increase in a liability for income taxes payable, a reduction of an income tax refund receivable, a reduction in a deferred tax asset or an increase in a deferred tax liability. Significant management judgment is required in evaluating our tax positions and in determining our effective tax rate. 63 Table of Contents Stock-Based Compensation We measure and recognize compensation expense for all stock-based compensation awards made to employees and directors based on estimated fair values. See Note 10 for additional information. Foreign Currency Translation and Transactions The functional currency of our foreign operations is generally the local currency. For these foreign entities, we translate their financial statements into U.S. dollars using average exchange rates for the period for income statement amounts and using end-of-period exchange rates for assets and liabilities. We record these translation adjustments in Accumulated other comprehensive loss, a separate component of Equity, in our consolidated balance sheets. We record exchange gains and losses resulting from the conversion of transaction currency to functional currency as a component of Other income (expense), net. Employee Benefit Plans Pension and postretirement health care and life insurance benefits earned during the year, as well as interest on projected benefit obligations, are accrued. Prior service costs and credits resulting from changes in plan benefits are generally amortized over the average remaining service period of the employees expected to receive benefits. Expected return on plan assets is determined by applying the return on assets assumption to the actual fair value of plan assets. Actuarial gains and losses are recognized in Other income (expense), net in the year in which they occur. These gains and losses are measured annually as of December 31 and upon a remeasurement event. Verizon management employees no longer earn pension benefits or earn service towards the Company retiree medical subsidy. See Note 11 for additional information. We recognize a pension or a postretirement plan’s funded status as either an asset or liability in the consolidated balance sheets. Also, we measure any unrecognized prior service costs and credits that arise during the period as a component of Accumulated other comprehensive income (loss), net of applicable income tax. Derivative Instruments We enter into derivative transactions primarily to manage our exposure to fluctuations in foreign currency exchange rates and interest rates. We employ risk management strategies, which may include the use of a variety of derivatives including cross currency swaps, forward starting interest rate swaps, interest rate swaps, treasury rate locks, interest rate caps, swaptions and foreign exchange forwards. We do not hold derivatives for trading purposes. We measure all derivatives at fair value and recognize them as either assets or liabilities in our consolidated balance sheets. Our derivative instruments are valued primarily using models based on readily observable market parameters for all substantial terms of our derivative contracts and thus are classified as Level 2. Changes in the fair values of derivative instruments applied as economic hedges are recognized in earnings in the current period. For fair value hedges, the change in the fair value of the derivative instruments is recognized in earnings, along with the change in the fair value of the hedged item. Unrealized gains or losses on excluded components of fair value hedges are recorded in Other comprehensive income (loss) and are recognized into earnings on a systematic and rational basis through the swap accrual over the life of the hedged item. For cash flow hedges, the change in the fair value of the derivative instruments is reported in Other comprehensive income (loss) and recognized in earnings when the hedged item is recognized in earnings. For net investment hedges of certain of our foreign operations, the change in the fair value of the hedging instruments is reported in Other comprehensive income (loss) as part of the cumulative translation adjustment and partially offsets the impact of foreign currency changes on the value of our net investment. Cash flows from derivatives, which are designated as accounting hedges or applied as economic hedges, are presented consistently with the cash flow classification of the related hedged items. See Note 9 for additional information. Variable Interest Entities VIEs are entities that lack sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties, have equity investors that do not have the ability to make significant decisions relating to the entity’s operations through voting rights, do not have the obligation to absorb the expected losses, or do not have the right to receive the residual returns of the entity. We consolidate the assets and liabilities of VIEs when we are deemed to be the primary beneficiary. The primary beneficiary is the party that has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Note 2. Revenue and Contract Costs We earn revenue from contracts with customers, primarily through the provision of telecommunications and other services and through the sale of wireless equipment. Revenue by Category We have two reportable segments that we operate and manage as strategic business units, Consumer and Business. Revenue is disaggregated by products and services within Consumer, and customer groups (Enterprise and Public Sector, Business 64 Table of Contents Markets and Other, and Wholesale) within Business. See Note 13 for additional information on revenue by segment, including Corporate and other. We also earn revenues that are not accounted for under Topic 606 from leasing arrangements (such as those for towers and equipment), captive reinsurance arrangements primarily related to wireless device insurance and the interest recognized when equipment is sold to the customer by an authorized agent under a device payment plan agreement. We have elected the practical expedient within Topic 842, to combine the lease and non-lease components for those customer arrangements under Topic 606 that involve customer premise equipment where we are the lessor. Remaining Performance Obligations When allocating the total contract transaction price to identified performance obligations, a portion of the total transaction price may relate to service performance obligations which were not satisfied or are partially satisfied as of the end of the reporting period. Below we disclose information relating to these unsatisfied performance obligations. We apply the practical expedient available under Topic 606 that provides the option to exclude the expected revenues arising from unsatisfied performance obligations related to contracts that have an original expected duration of one year or less. This situation primarily arises with respect to certain month-to-month service contracts. At December 31, 2025, month-to-month service contracts represented approximately 95 % of our wireless postpaid contracts and approximately 94 % of our wireline Consumer and our Business Markets and Other contracts, compared to December 31, 2024, for which month-to-month service contracts represented approximately 95 % of both our wireless postpaid contracts and our wireline Consumer and our Business Markets and Other contracts . Additionally, certain contracts provide customers the option to purchase additional services. The fees related to these additional services are recognized when the customer exercises the option (typically on a month-to-month basis). Contracts for wireless services, with or without promotional credits that require maintenance of service, are generally either month-to-month and cancellable at any time, or considered to contain terms ranging from greater than one month to up to thirty-six months (typically under a device payment plan associated with a promotion or a fixed-term plan). Additionally, customers may incur charges based on usage or additional optional services purchased in conjunction with entering into a contract that can be cancelled at any time and therefore are not included in the transaction price. The transaction price allocated to service performance obligations, which are not satisfied or are partially satisfied as of the end of the reporting period, are generally related to contracts that are not accounted for as month-to-month contracts. Our Consumer group customers also include traditional wholesale resellers that purchase and resell wireless service under their own brands to their respective customers. Reseller arrangements generally include a stated contract term, which typically extends longer than two years and, in some cases, include a periodic minimum revenue commitment over the contract term for which revenues will be recognized in future periods. Consumer customer contracts for wireline services are generally month-to-month; however, they may have a service term of two years or shorter than twelve months . Certain contracts with Business customers for wireline services extend into future periods, contain fixed monthly fees and usage-based fees, and can include annual commitments in each year of the contract or commitments over the entire specified contract term; however, a significant number of contracts for wireline services with our Business customers have a contract term that is twelve months or less. Additionally, there are certain contracts with Business customers for wireline services that have a contractual minimum fee over the total contract term. We cannot predict the time period when revenue will be recognized related to those contracts; thus, they are excluded from the expected recognition timeframe below. These contracts have varying terms spanning over approximately twenty-eight years ending in September 2053 and have aggregate contract minimum payments totaling $ 1.3 billion. At December 31, 2025, the aggregate amount of the transaction price related to unsatisfied performance obligations was $ 58.1 billion, of which we expect to recognize substantially all of the revenue from origination over the next thirty-six months , with the remainder recognized thereafter. Remaining performance obligation estimates are subject to change and are affected by several factors, including terminations and changes in the timing and scope of contracts, arising from contract modifications. Accounts Receivable and Contract Balances The timing of revenue recognition may differ from the time of billing to our customers. Receivables presented in our consolidated balance sheets represent an unconditional right to consideration. Contract balances represent amounts from an arrangement when either Verizon has performed, by transferring goods or services to the customer in advance of receiving all or partial consideration for such goods and services from the customer, or the customer has made payment to Verizon in advance of obtaining control of the goods and/or services promised to the customer in the contract. 65 Table of Contents The following table presents information about receivables from contracts with customers: At December 31, At December 31, (dollars in millions) 2025 2024 Accounts Receivable (1) $ 9,646 $ 9,225 Device payment plan agreement receivables (2) 21,726 19,766 (1) Balances do not include receivables related to the following: activity associated with certain vendor agreements, leasing arrangements (such as those for towers and equipment), captive reinsurance arrangements primarily related to wireless device insurance and device payment plan agreement receivables presented separately. (2) Included in device payment plan agreement receivables presented in Note 8. Receivables derived from the sale of equipment on a device payment plan through an authorized agent are excluded. Contract assets primarily relate to our rights to consideration for goods or services provided to customers but for which we do not have an unconditional right at the reporting date. Under a fixed-term plan, total contract revenue is allocated between wireless service and equipment revenues. In conjunction with these arrangements, a contract asset is created, which represents the difference between the amount of equipment revenue recognized upon sale and the amount of consideration received from the customer when the performance obligation related to the transfer of control of the equipment is satisfied. The contract asset is reclassified to accounts receivable as wireless services are provided and billed. We have the right to bill the customer as service is provided over time, which results in our right to the payment being unconditional. The contract asset balances are presented in our consolidated balance sheets as Prepaid expenses and other and Other assets. We recognize the allowance for credit losses at inception and reassess quarterly based on management's expectation of the asset's collectability. Contract assets decreased $ 165 million during the year ended December 31, 2025. The change in contract assets was primarily due to increased promotional activity. Contract liabilities arise when we bill our customers and receive consideration in advance of providing the goods or services promised in the contract. We typically bill service one month in advance, which is the primary component of the contract liability balance. Contract liabilities are recognized as revenue when services are provided to the customer. The contract liability balances are presented in our consolidated balance sheets as Other current liabilities and Other liabilities. Contract liabilities increased $ 331 million during the year ended December 31, 2025. The change in contract liabilities was primarily due to increases in sales promotions recognized over time. Revenues recognized related to contract liabilities existing at January 1, 2025 and 2024 were $ 5.2 billion and $ 5.0 billion for the years ended December 31, 2025 and 2024, respectively. The balances of contract assets and contract liabilities recorded in our consolidated balance sheets were as follows: At December 31, At December 31, (dollars in millions) 2025 2024 Assets Prepaid expenses and other $ 518 $ 621 Other assets 259 321 Total Contract Assets $ 777 $ 942 Liabilities Other current liabilities $ 7,576 $ 7,492 Other liabilities 2,433 2,186 Total Contract Liabilities $ 10,009 $ 9,678 Contract Costs As discussed in Note 1, Topic 606 requires the recognition of an asset for incremental costs to obtain a customer contract, which are then amortized to expense over the respective periods of expected benefit. We recognize an asset for incremental commission expenses paid to internal and external sales personnel and agents in conjunction with obtaining customer contracts. We only defer these costs when we have determined the commissions are incremental costs that would not have been incurred absent the customer contract and are expected to be recoverable. Costs to obtain a contract are amortized and recorded ratably as commission expense over the period representing the transfer of goods or services to which the assets relate. Costs to obtain postpaid wireless contracts are amortized over both of our Consumer and Business customers' estimated upgrade cycles, as such costs are typically incurred each time a customer upgrades. Costs to obtain prepaid wireless contracts and wireline contracts are amortized as expense over the estimated customer relationship period for our Consumer customers. Incremental costs to obtain wireline contracts for our Business customers are insignificant. Costs to obtain contracts are recorded in Selling, general and administrative expense in our consolidated statements of income. 66 Table of Contents We also defer costs incurred to fulfill contracts that: (1) relate directly to the contract; (2) are expected to generate resources that will be used to satisfy our performance obligation under the contract; and (3) are expected to be recovered through revenue generated under the contract. Contract fulfillment costs are expensed as we satisfy our performance obligations and recorded in Cost of services. These costs principally relate to direct costs that enhance our wireline business resources, such as costs incurred to install circuits. We determine the amortization periods for our costs incurred to obtain or fulfill a customer contract at a portfolio level due to the similarities within these customer contract portfolios. Other costs, such as general costs or costs related to past performance obligations, are expensed as incurred. Collectively, costs to obtain a contract and costs to fulfill a contract are referred to as deferred contract costs, and amortized between a one -to- seven year period. Deferred contract costs are classified as current or non-current within Prepaid expenses and other and Other assets, respectively. The balances of deferred contract costs included in our consolidated balance sheets were as follows: At December 31, At December 31, (dollars in millions) 2025 2024 Assets Prepaid expenses and other $ 3,315 $ 2,932 Other assets 2,848 2,808 Total $ 6,163 $ 5,740 For the years ended December 31, 2025 and 2024, we recognized expense of $ 3.6 billion and $ 3.4 billion, respectively, associated with the amortization of deferred contract costs, primarily within Selling, general and administrative expense in our consolidated statements of income. We assess our deferred contract costs for impairment on a quarterly basis. We recognize an impairment charge to the extent the carrying amount of a deferred cost exceeds the remaining amount of consideration we expect to receive in exchange for the goods and services related to the cost, less the expected costs related directly to providing those goods and services that have not yet been recognized as expenses. There were no impairment charges recognized for the years ended December 31, 2025 and December 31, 2024. Note 3. Acquisitions and Divestitures Spectrum License Transactions In February 2021, the 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 2024 and 2023, we made payments of $ 269 million and $ 4.3 billion, respectively, 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. Business Acquisitions and Divestitures TracFone Wireless, Inc. On November 23, 2021, we completed the acquisition of TracFone Wireless, Inc. (TracFone). The acquisition agreement provided for up to an additional $ 650 million in future cash contingent consideration related to the achievement of certain performance measures and other commercial arrangements. The estimated fair value of the contingent consideration as of the acquisition date was approximately $ 560 million and represented a Level 3 measurement as defined in ASC 820, Fair Value Measurements and Disclosures. The contingent consideration payable was based on the achievement of certain revenue and operational targets, measured over a two-year earn out period. Contingent consideration payments were completed in January of 2024. 67 Table of Contents During 2024 and 2023, Verizon made payments of $ 52 million and $ 257 million, respectively, related to the contingent consideration, which are reflected in Cash flows from financing activities in our consolidated statements of cash flows. Frontier Communications Parent, Inc. On September 4, 2024, Verizon entered into an Agreement and Plan of Merger (the Merger Agreement) to acquire Frontier Communications Parent, Inc. (Frontier), a U.S. provider of broadband internet and other communication services. The transaction closed on January 20, 2026. Pursuant to the Merger Agreement, the Company's subsidiary merged with and into Frontier, with Frontier surviving such merger as a wholly owned subsidiary of the Company. At the effective time of the merger, each share of Frontier common stock issued and outstanding immediately prior to such time (subject to certain limited exceptions) was cancelled and converted into the right to receive an amount in cash equal to $ 38.50 per share, without interest. At closing, Verizon paid approximately $ 9.4 billion in cash, net of cash acquired, and assumed approximately $ 12.9 billion of Frontier's debt, resulting in a total aggregate consideration of approximately $ 22.3 billion. Due to the timing of the transaction, the preliminary purchase price allocation is incomplete. As such, it is not practicable to provide a summary of the recognized amounts of assets acquired and liabilities assumed, however, we expect that most of the purchase price will be allocated to property, plant and equipment, other identifiable intangible assets and goodwill. The financial results of Frontier will be included in the Company's consolidated results beginning on January 20, 2026, the date of the closing of the acquisition. In January 2026, we repaid approximately $ 5.7 billion of the debt assumed as part of the Frontier acquisition. Other On January 30, 2026, Verizon completed the acquisition of Starry Group Holdings, Inc., a fixed wireless broadband provider serving multi-dwelling units in five markets across the U.S. The aggregate cash consideration paid by Verizon at the closing of the transaction was insignificant. Note 4. Wireless Licenses, Goodwill and Other Intangible Assets Wireless Licenses The carrying amounts of Wireless licenses are as follows: (dollars in millions) At December 31, 2025 2024 Wireless licenses $ 157,039 $ 156,613 At December 31, 2025 and 2024, approximately $ 7.0 billion and $ 10.1 billion, respectively, of wireless licenses were under development for commercial service for which we were capitalizing interest costs. We recorded $ 428 million and $ 616 million of capitalized interest on wireless licenses for the years ended December 31, 2025 and 2024, respectively. During 2025 and 2024, we renewed various wireless licenses in accordance with FCC regulations with an average renewal period of 10 years. See Note 1 for additional information. As discussed in Note 1, we test our wireless licenses for potential impairment annually or more frequently if impairment indicators are present. In 2024, we performed a quantitative impairment assessment, in accordance with our policy, which compared the estimated fair value of our aggregate wireless licenses, estimated using the Greenfield approach, to the aggregate carrying amount of the licenses as of the test date. Our annual assessment in 2024 indicated that the fair value of our wireless licenses exceeded the carrying value and, therefore, did not result in an impairment. In 2025, we performed a qualitative impairment assessment, which indicated it was more likely than not that the fair value of our wireless licenses remained above their carrying amount and, therefore, did not result in an impairment. 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 fiber, evolve and maintain our networks and develop and maintain significant advanced information technology systems and data system capabilities. 68 Table of Contents Goodwill Changes in the carrying amount of Goodwill are as follows: (dollars in millions) Consumer Business Total Balance at January 1, 2024 (1) $ 21,177 $ 1,666 $ 22,843 Reclassifications, adjustments and other — ( 2 ) ( 2 ) Balance at December 31, 2024 (1) 21,177 1,664 22,841 Balance at December 31, 2025 (1) $ 21,177 $ 1,664 $ 22,841 (1) Goodwill balances are net of accumulated impairment charges of $ 5.8 billion related to our Business reporting unit. During the fourth quarter of 2024, we performed a quantitative impairment assessment for our Consumer reporting unit in accordance with our policy. We applied a combination of a market approach and a discounted cash flow method reflecting current assumptions and inputs, including our revised projections, discount rate and expected growth rates. Our assessment indicated that the fair value of our Consumer reporting unit substantially exceeded its carrying value and, therefore, did not result in an impairment. During the fourth quarter of 2025, we performed a qualitative impairment assessment for our Consumer reporting unit. Our qualitative assessment indicated that it was more likely than not that the fair value of our Consumer reporting unit exceeded its carrying value and, therefore, did not result in an impairment. During the fourth quarter of 2023, we performed a quantitative impairment assessment for our Business reporting unit given the low excess of fair value over carrying value identified in our 2022 annual impairment assessment and increased competitive and market pressures experienced throughout 2023. These pressures resulted in lower projected cash flows primarily driven by secular declines in wireline services and products across our Business customer groups. In connection with Verizon’s annual budget process in the fourth quarter of 2023, leadership completed a comprehensive five-year strategic planning review of our Business reporting unit resulting in declines in financial projections driven by market dynamics as compared to the prior year five-year strategic planning cycle. The revised projections were used as a key input into the Business reporting unit’s annual goodwill impairment test performed in the fourth quarter of 2023. In addition, changes in the macroeconomic environment, including interest rate and inflationary pressures also impacted the fair value of the reporting unit. We applied a combination of a market approach and a discounted cash flow method reflecting current assumptions and inputs, including our revised projections, discount rate and expected growth rates, which resulted in the determination that the fair value of our Business reporting unit was less than its carrying amount. As a result, in the fourth quarter of 2023, we recorded a noncash goodwill impairment charge of approximately $ 5.8 billion ($ 5.8 billion after-tax) in our consolidated statement of income. During the fourth quarters of both 2024 and 2025, we performed quantitative impairment assessments for our Business reporting unit. We performed a quantitative impairment assessment in 2024 as a result of the goodwill impairment recorded in 2023 and the competitive and market pressures experienced throughout 2024. We elected to perform a quantitative impairment assessment in 2025 given that the 2024 impairment assessment resulted in a fair value that was marginally in excess of the carrying value, as well as the sustained competitive pressures and market conditions that continued throughout 2025. In both years, we applied a combination of a market approach and a discounted cash flow method reflecting current assumptions and inputs, including our revised projections, discount rates and expected growth rates. These analyses both indicated that the fair value of our Business reporting unit exceeded its carrying value and, therefore, did not result in an impairment in either 2024 or 2025. We do not anticipate reasonable changes in significant assumptions to change the outcome of the quantitative impairment assessment. However, management believes there is a continued risk that our Business reporting unit may be required to recognize an impairment charge in the future. A projected sustained decline in the reporting unit's revenues and earnings could have a significant negative impact on its fair value and could result in future impairment charges. Such a decline could be driven by, among other things: (1) decreases in sales volumes or long-term growth rate as a result of competitive pressures or other factors; or (2) the inability to achieve or delays in achieving its goals or strategic initiatives including, but not limited to, cost savings efforts. Adverse changes to macroeconomic factors, such as increases in long-term interest rates, would also negatively impact the fair value of the reporting unit. 69 Table of Contents Other Intangible Assets The following table displays the composition of Other intangible assets, net as well as the respective amortization period: (dollars in millions) 2025 2024 At December 31, Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Customer lists ( 6 to 13 years) $ 4,243 $ ( 3,116 ) $ 1,127 $ 4,242 $ ( 2,629 ) $ 1,613 Non-network internal-use software ( 3 to 7 years) 28,749 ( 20,301 ) 8,448 28,136 ( 19,743 ) 8,393 Other ( 4 to 25 years) 2,676 ( 1,793 ) 883 2,664 ( 1,541 ) 1,123 Total $ 35,668 $ ( 25,210 ) $ 10,458 $ 35,042 $ ( 23,913 ) $ 11,129 The amortization expense for Other intangible assets was as follows: Years (dollars in millions) 2025 $ 2,999 2024 2,781 2023 2,687 Estimated annual amortization expense for Other intangible assets is as follows: Years (dollars in millions) 2026 $ 2,924 2027 2,379 2028 1,887 2029 1,183 2030 932 Note 5. Property, Plant and Equipment The following table displays the details of Property, plant and equipment, which is stated at cost: (dollars in millions) At December 31, Lives (years) 2025 2024 Land - $ 743 $ 740 Buildings and equipment 7 to 45 40,872 39,130 Central office and other network equipment 3 to 15 180,506 176,680 Antennas, cable, conduit, poles and towers 4 to 50 86,221 82,810 Leasehold improvements 5 to 20 11,099 10,562 Work in progress - 8,493 9,424 Furniture, vehicles and other 3 to 20 10,057 12,060 337,991 331,406 Less accumulated depreciation 228,524 222,884 Property, plant and equipment, net $ 109,467 $ 108,522 Note 6. Leasing Arrangements We enter into various lease arrangements for network equipment including towers, distributed antenna systems, small cells, real estate and connectivity mediums including dark fiber, equipment, and other various types of assets for use in our operations. Our leases have remaining lease terms ranging from 1 year to 30 years, some of which include options that we can elect to extend the leases term for up to 25 years, and some of which include options to terminate the leases. For the majority of leases entered into during the current period, we have concluded it is not reasonably certain that we would exercise the options to extend the lease or not terminate the lease. Therefore, as of the lease commencement date, our lease terms generally do not include these options. We include options to extend the lease when it is reasonably certain that we will exercise that option. During December 2024, we completed a transaction with Vertical Bridge REIT, LLC (Vertical Bridge) pursuant to which Vertical Bridge obtained the exclusive rights to lease, operate and manage over 6,000 wireless towers from Verizon in exchange for an upfront payment of $ 2.8 billion. Under the terms of the agreement, Vertical Bridge has exclusive rights to lease, operate and manage the towers over an average term of approximately 30 years, with the option to acquire the towers at the end of the lease terms. We have leased back a portion of the capacity on the towers from Vertical Bridge for an initial term of 10 years, with eight optional renewal terms of five years each, subject to certain early termination rights. We continue to include the towers in 70 Table of Contents Property, plant and equipment, net in our consolidated balance sheets and depreciate them accordingly. The upfront payment, which is primarily included within Other liabilities on our consolidated balance sheet, is accounted for as prepaid rent and as a financing obligation. We recorded prepaid rent of $ 2.0 billion related to the portion of the towers for which the right-of-use has passed to Vertical Bridge, which is reflected in Cash flows from operating activities in our consolidated statements of cash flows. In addition, we recorded a financing obligation of $ 830 million related to the portion of the towers that we continue to occupy and use for network operations, which is reflected in Cash flows from financing activities in our consolidated statements of cash flows. In March 2025, we renewed our lease with American Tower Corporation (American Tower) originally entered into in March 2015. Pursuant to the original transaction, American Tower acquired the exclusive rights to lease and operate approximately 11,300 of our wireless towers. The renewal extends our subleased capacity on the towers from American Tower for an additional 5 years, with options to renew. We continue to include the towers in Property, plant and equipment, net in our consolidated balance sheets and depreciate them accordingly. In addition to the rights to lease and operate the towers, Vertical Bridge and American Tower assumed the interest in the underlying ground leases related to these towers. While Vertical Bridge and American Tower can renegotiate the terms of and are responsible for paying the ground leases, we are still the primary obligor for these leases and accordingly, the present value of these ground leases are included in our operating lease right-of-use assets and operating lease liabilities. We do not expect to be required to make ground lease payments unless Vertical Bridge or American Tower defaults, which we determined to be remote. The components of net lease cost were as follows: (dollars in millions) Years Ended December 31, Classification 2025 2024 2023 Operating lease cost (1) Cost of services Selling, general and administrative expense $ 5,731 $ 5,607 $ 5,432 Finance lease cost: Amortization of right-of-use assets Depreciation and amortization expense 584 329 259 Interest on lease liabilities Interest expense 116 98 69 Short-term lease cost (1) Cost of services Selling, general and administrative expense 15 21 29 Variable lease cost (1) Cost of services Selling, general and administrative expense 338 310 313 Sublease income Service revenues and other ( 191 ) ( 216 ) ( 210 ) Total net lease cost $ 6,593 $ 6,149 $ 5,892 (1) All operating lease costs, including short-term and variable lease costs, are split between Cost of services and Selling, general and administrative expense in the consolidated statements of income based on the use of the facility or equipment that the rent is being paid on. See Note 1 for additional information. Variable lease costs represent payments that are dependent on a rate or index, or on usage of the asset. Supplemental disclosure for the statements of cash flows related to operating and finance leases were as follows: (dollars in millions) Years Ended December 31, 2025 2024 2023 Cash Flows from Operating Activities Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ ( 5,280 ) $ ( 5,067 ) $ ( 4,929 ) Operating cash flows for finance leases ( 116 ) ( 98 ) ( 69 ) Cash Flows from Financing Activities Financing cash flows for finance leases ( 944 ) ( 794 ) ( 612 ) Supplemental lease cash flow disclosures Operating lease right-of-use assets obtained in exchange for new operating lease liabilities 3,642 4,385 2,634 Right-of-use assets obtained in exchange for new finance lease liabilities 1,104 1,051 968 71 Table of Contents Supplemental disclosures for the balance sheet related to finance leases were as follows: (dollars in millions) At December 31, 2025 2024 Assets Property, plant and equipment, net $ 2,048 $ 1,692 Liabilities Debt maturing within one year $ 943 $ 894 Long-term debt 1,568 1,455 Total Finance lease liabilities $ 2,511 $ 2,349 The weighted-average remaining lease term and the weighted-average discount rate of our leases were as follows: At December 31, 2025 2024 Weighted-average remaining lease term (years) Operating leases 8 8 Finance leases 4 3 Weighted-average discount rate Operating leases 4.3 % 4.1 % Finance leases 5.0 % 4.8 % The following table presents the maturity analysis of operating and finance lease liabilities as of December 31, 2025: (dollars in millions) Years Operating Leases Finance Leases 2026 $ 5,272 $ 994 2027 4,983 736 2028 3,580 510 2029 3,087 259 2030 2,512 108 Thereafter 8,735 139 Total lease payments 28,169 2,746 Less interest 4,676 235 Present value of lease liabilities 23,493 2,511 Less current obligation 4,542 943 Long-term obligation at December 31, 2025 $ 18,951 $ 1,568 As of December 31, 2025, we have contractually obligated lease payments amounting to $ 2.0 billion primarily for office facility operating leases and small cell colocation and fiber operating leases that have not yet commenced. We have legally obligated lease payments for various other operating leases that have not yet commenced for which the total obligation was not significant. We have certain rights and obligations for these leases, but have not recognized an operating lease right-of-use asset or an operating lease liability since they have not yet commenced. 72 Table of Contents Note 7. Debt Outstanding long-term debt obligations as of December 31, 2025 and 2024 are as follows: (dollars in millions) At December 31, Maturities Interest Rates % 2025 2024 Verizon Communications < 5 Years 0.85 - 7.75 $ 29,192 $ 29,325 5-10 Years 1.13 - 7.88 39,769 33,851 > 10 Years 1.13 - 8.95 60,471 52,719 < 5 Years Floating (1) 1,373 1,171 5-10 Years Floating (1) 647 1,735 Alltel Corporation < 5 Years 6.80 38 38 5-10 Years 7.88 56 56 Operating telephone company subsidiaries – debentures < 5 Years 6.00 - 8.38 317 286 5-10 Years 5.13 - 8.75 297 328 Other subsidiaries – asset-backed debt < 5 Years 1.53 - 6.09 18,247 16,363 < 5 Years Floating (1) 8,857 9,805 Finance lease obligations (average rate of 5.0 % and 4.8 % in 2025 and 2024, respectively) (2) 2,511 2,349 Vendor financing arrangements (2) 16 85 Unamortized discount, net of premium ( 3,463 ) ( 3,604 ) Unamortized debt issuance costs ( 619 ) ( 558 ) Total long-term debt, including current maturities 157,709 143,949 Less long-term debt maturing within one year 18,177 22,568 Total long-term debt $ 139,532 $ 121,381 Long-term debt maturing within one year $ 18,177 $ 22,568 Add short-term vendor financing arrangements (2) 441 65 Debt maturing within one year $ 18,618 $ 22,633 Add long-term debt 139,532 121,381 Total debt $ 158,150 $ 144,014 N/A - not applicable (1) For the period ending December 2025, the debt obligations bore interest at floating rates, including floating rates associated with the Secured Overnight Financing Rate (SOFR) for the interest period plus an applicable interest margin per annum. Floating rates associated with SOFR for the interest payments made in December 2025 ranged from 3.943 % to 4.869 %. (2) Finance lease and vendor financing obligations are part of alternative financing arrangements. Maturities of long-term debt (secured and unsecured) outstanding, including current maturities, excluding finance lease obligations and unamortized debt issuance costs, at December 31, 2025 are as follows: Years (dollars in millions) 2026 $ 17,267 2027 9,569 2028 13,032 2029 8,115 2030 11,081 Thereafter 96,753 During 2025, we received $ 27.6 billion of proceeds from long-term borrowings including current maturities, which included $ 9.3 billion of proceeds from asset-backed debt transactions. The net proceeds were primarily used for general corporate purposes including the repayment of debt. We used $ 19.8 billion of cash to repay and repurchase long-term borrowings including current maturities and finance lease obligations, including $ 8.4 billion to prepay and repay asset-backed borrowings. The net proceeds of approximately $ 10.2 billion from the notes issued in 2025 were primarily used to fund the acquisition of Frontier. During 2024, we received $ 15.6 billion of proceeds from long-term borrowings, which included $ 12.4 billion of proceeds from asset-backed debt transactions. The net proceeds were primarily used for general corporate purposes including the repayment of debt and the funding of certain renewable energy projects. We used $ 20.3 billion of cash to repay and repurchase long-term borrowings and finance lease obligations, including $ 8.5 billion to prepay and repay asset-backed, long-term borrowings. The net proceeds of approximately $ 1.0 billion from the notes issued in 2024 were used to fund certain renewable energy projects. 73 Table of Contents 2025 Significant Debt Transactions Debt or equity financing may be needed to fund additional investments or development activities or to maintain an appropriate capital structure to ensure our financial flexibility . The following tables show the significant transactions involving the unsecured debt securities of the Company and its subsidiaries that occurred during the year ended December 31, 2025. Exchange Offers (dollars in millions) Principal Amount Exchanged Principal Amount Issued Verizon 1.450 % - 7.750 % notes and floating rate notes, due 2026 - 2030 $ 2,207 $ — Verizon 5.401 % notes due 2037 (1) — 2,162 Total (2) $ 2,207 $ 2,162 (1) The principal amount issued in exchange does not include either an insignificant amount of cash paid in lieu of the issuance of fractional new notes or accrued and unpaid interest paid on the old notes accepted for exchange to the date of exchange. (2) The debt exchange offers above meet the criteria to be accounted for as a modification of debt. As a result, the excess of the principal amount of notes exchanged over the principal amount of new notes issued of $ 45 million was recorded as a premium to Long-term debt in the consolidated balance sheets. Tender Offers (dollars in millions) Principal Amount Purchased Cash Consideration (1) Verizon 1.450 % - 7.750 % notes and floating rate notes, due 2026 - 2030 (2) $ 503 $ 501 Total $ 503 $ 501 (1) The total cash consideration includes the tender offer consideration, plus any accrued and unpaid interest to the date of purchase. (2) The tender offer was launched concurrently with the exchange offer discussed above and made available to different holders of the same series of notes. Repayments and Repurchases (dollars in millions) Principal Repaid/ Repurchased Amount Paid (1) Verizon 4.050 % notes due 2025 A$ 450 $ 365 Verizon 0.875 % notes due 2025 € 747 840 Verizon 3.250 % notes due 2026 843 1,032 Verizon 3.376 % notes due 2025 $ 793 806 Verizon floating rate notes due 2025 487 490 Verizon 0.850 % notes due 2025 686 689 Verizon 2.625 % notes due 2026 985 990 Verizon 1.450 % notes due 2026 826 829 Verizon 4.125 % notes due 2027 607 615 Verizon 3.000 % notes due 2027 463 466 Open market repurchases of various Verizon notes (2) 2,319 1,912 Total $ 9,034 (1) Represents amount paid to repay or repurchase, including any accrued interest. In addition, for securities denominated in a currency other than the U.S. dollar, amount paid is shown on a U.S. dollar equivalent basis and includes the amount payable per the derivatives entered into in connection with the transaction. See Note 9 for additional information on cross currency swap transactions related to the transaction. (2) During 2025, we recorded gains of $ 397 million in connection with the open market repurchases, which were reflected within Other income (expense), net in our consolidated statement of income. 74 Table of Contents Issuances (dollars in millions) Principal Amount Issued Net Proceeds (1) Verizon 3.250 % notes due 2032 € 1,000 $ 1,142 Verizon 3.750 % notes due 2037 1,000 1,134 Verizon 3.996 % junior subordinated notes due 2056 (2) 2,250 2,573 Verizon 5.742 % junior subordinated notes due 2056 (2) £ 1,000 1,298 Verizon 5.250 % notes due 2035 (3) $ 2,250 1,676 Verizon 4.750 % notes due 2033 2,000 1,987 Verizon 5.000 % notes due 2036 2,250 2,222 Verizon 5.750 % notes due 2045 1,500 1,485 Verizon 5.875 % notes due 2055 (3) 3,250 2,817 Verizon 6.000 % notes due 2065 (3) 2,000 1,687 Total $ 18,021 (1) Net proceeds were net of underwriting discounts and other issuance costs. In addition, for securities denominated in a currency other than the U.S. dollar, net proceeds are shown on a U.S. dollar equivalent basis. See Note 9 for additional information on cross currency swap transactions related to the issuances. (2) Notes are subordinate to our senior unsecured notes and have an interest rate reset and deferral features. See Note 9 for additional information on derivative activity related to these transactions. (3) We contributed $ 1.3 billion principal amount in aggregate of the notes to our pension plans, as discussed below. Commercial Paper Program In 2025, we issued $ 11.6 billion in net proceeds and made $ 11.6 billion in principal repayments of commercial paper. These transactions are reflected within Cash flows from financing activities in our consolidated statements of cash flows on a net basis. As of December 31, 2025, we had no commercial paper outstanding. Asset-Backed Debt As of December 31, 2025, the carrying value of our asset-backed debt was $ 27.1 billion. Our asset-backed debt includes Asset-Backed Notes (ABS Notes) issued to third-party investors (Investors), loans (ABS Financing Facilities) received from banks and their conduit facilities (collectively, the Banks), and sales of residual interests under our ABS Notes and certain ABS Financing Facilities (Class R Interest) under a master repurchase agreement (master repurchase agreement) with a bank (the Counterparty). Our consolidated asset-backed debt bankruptcy remote legal entities (each, an ABS Entity, or collectively, the ABS Entities) issue the debt or are otherwise party to the transaction documentation in connection with our asset-backed debt transactions. Under the terms of our asset-backed debt for ABS Notes and ABS Financing Facilities, Cellco Partnership (Cellco), a wholly-owned subsidiary of the Company, and certain other Company affiliates (collectively, the Originators) transfer device payment plan agreement receivables and certain other receivables (collectively referred to as certain receivables) or a participation interest in certain other receivables to one of the ABS Entities, which in turn transfers such receivables and participation interest to another ABS Entity that issues the debt. Verizon entities retain the equity interests and residual interests, as applicable, in the ABS Entities and the ABS Notes and ABS Financing Facilities, as applicable, which represent the rights to all funds not needed to make required payments on such asset-backed debt and other related payments and expenses. Our asset-backed debt is secured by the transferred receivables, participation interest and Class R Interest, future collections on such receivables, underlying receivables related to such participation interest and such Class R Interest, as applicable. These receivables and participation interest transferred to the ABS Entities, such Class R Interest and related assets, consisting primarily of restricted cash, will only be available for payment of asset-backed debt and expenses related thereto, payments to the Originators in respect of additional transfers of certain receivables and participation interest, and other obligations arising from our asset-backed debt transactions, as applicable, and will not be available to pay other obligations or claims of Verizon’s creditors until the associated asset-backed debt and other obligations are satisfied. The Investors, Banks or Counterparty, as applicable, which hold our asset-backed debt have legal recourse to the assets securing the debt, but in the case of our ABS Notes and ABS Financing Facilities, do not have any recourse to Verizon with respect to the payment of principal and interest on the debt. Under a parent support agreement, the Company has agreed to guarantee certain of the payment obligations of Cellco and the Originators to the ABS Entities in connection with our ABS Notes and ABS Financing Facilities. In connection with the master repurchase agreement, the Company has agreed to unconditionally and irrevocably guarantee payment obligations of the related ABS Entity, including to repurchase Class R Interest from the Counterparty. Cash collections on the receivables and on the underlying receivables related to the participation interest collateralizing our ABS Notes and ABS Financing 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 consolidated balance sheets. 75 Table of Contents Proceeds from our asset-backed debt transactions are reflected in Cash flows from financing activities in our consolidated statements of cash flows. The asset-backed debt issued is included in Debt maturing within one year and Long-term debt in our consolidated balance sheets. ABS Notes During the year ended December 31, 2025, we completed the following ABS Notes transactions: (dollars in millions) Interest Rates % Expected Weighted-average Life to Maturity (in years) Principal Amount Issued January 2025 Series 2025-1 A Senior class notes 4.710 2.99 $ 535 B Junior class notes 4.940 2.99 41 C Junior class notes 5.090 2.99 25 Series 2025-2 A Senior class notes 4.940 5.00 446 B Junior class notes 5.160 5.00 34 C Junior class notes 5.340 5.00 20 January 2025 total 1,101 March 2025 Series 2025-3 A-1a Senior class notes 4.510 1.97 706 A-1b Senior class notes Compounded SOFR + 0.550 (1) 1.97 185 B Junior class notes 4.770 1.97 68 C Junior class notes 4.900 1.97 41 Series 2025-4 A Senior class notes 4.760 4.97 446 B Junior class notes 5.020 4.97 34 C Junior class notes 5.200 4.97 20 March 2025 total 1,500 June 2025 Series 2025-5 A-1a Senior class notes 4.400 2.99 401 A-1b Senior class notes Compounded SOFR + 0.550 (1) 2.99 134 B Junior class notes 4.640 2.99 — C Junior class notes 4.840 2.99 25 Series 2025-6 A Senior class notes 4.620 4.99 267 B Junior class notes 4.860 4.99 — C Junior class notes 5.060 4.99 12 June 2025 total 839 76 Table of Contents (dollars in millions) Interest Rates % Expected Weighted-average Life to Maturity (in years) Principal Amount Issued September 2025 Series 2025-7 A-1a Senior class notes 3.960 2.93 601 A-1b Senior class notes Compounded SOFR + 0.520 (1) 2.93 200 B Junior class notes 4.210 2.93 — C Junior class notes 4.400 2.93 37 Series 2025-8 A Senior class notes 4.160 4.93 356 B Junior class notes 4.410 4.93 27 C Junior class notes 4.600 4.93 16 September 2025 total 1,237 November 2025 Series 2025-9 A-1a Senior class notes 3.960 1.90 638 A-1b Senior class notes Compounded SOFR + 0.420 1) 1.90 75 B Junior class notes 4.240 1.90 54 C Junior class notes 4.410 1.90 33 Series 2025-10 A Senior class notes 4.280 4.91 446 B Junior class notes 4.540 4.91 — C Junior class notes 4.670 4.91 20 November 2025 total 1,266 Total $ 5,943 (1) Compounded Secured Overnight Financing Rate (SOFR) is calculated using SOFR as published by the Federal Reserve Bank of New York in accordance with the terms of such notes. Compounded SOFR for the interest payment made in December 2025 was 3.94 %. Under the terms of each series of ABS Notes outstanding as of December 31, 2025, there is a revolving period of up to two years , three years , or five years , as applicable, during which we may transfer additional receivables to the ABS Entity. During the years ended December 31, 2025 and 2024, we made aggregate principal repayments of $ 4.4 billion and $ 4.5 billion, respectively, in connection with anticipated redemptions of ABS Notes. During 2025, we sold certain of our initially offered but retained ABS Notes for cash of $ 523 million. In January 2026, in connection with an anticipated redemption of ABS Notes, we made a principal repayment, in whole, for $ 1.0 billion. ABS Financing Facilities Under the two loan agreements outstanding in connection with the ABS Financing Facility originally entered into in 2021 and most recently renewed in 2025 (2021 ABS Financing Facility) we prepaid an aggregate of $ 250 million in February 2025, prepaid an aggregate of $ 1.4 billion in March 2025, borrowed an additional $ 1.1 billion in April 2025, prepaid an aggregate of $ 200 million and borrowed an additional $ 125 million in June 2025, prepaid an aggregate of $ 1.1 billion in September 2025 and prepaid an aggregate of $ 750 million in November 2025. The aggregate outstanding balance under the 2021 ABS Financing Facility was $ 5.6 billion as of December 31, 2025. Under the loan agreement outstanding in connection with the ABS Financing Facility originally entered into in 2022 and most recently renewed in 2025 (2022 ABS Financing Facility), we prepaid an aggregate of $ 163 million in February 2025, borrowed an additional $ 189 million in March 2025, prepaid an aggregate of $ 241 million in April 2025 and borrowed an additional $ 241 million in December 2025. T he aggregate outstanding balance under the 2022 ABS Financing Facility was $ 5.0 billion as of December 31, 2025 . 77 Table of Contents In January and February 2026, we borrowed an aggregate of $ 2.3 billion and $ 1.0 billion, respectively, under the loan agreement outstanding in connection with the 2021 ABS Financing Facility. Master Repurchase Agreement In September 2025, we entered into a master repurchase agreement with the Counterparty to sell residual interests under our ABS Notes and certain ABS Financing Facilities for a maximum of $ 750 million w ith a simultaneous agreement to repurchase the Class R Interest at a later date for a specific price. In December 2025, we amended the master repurchase agreement to increase the maximum to approximately $ 1.3 billion. Under the terms of the master repurchase agreement, which is accounted for as a secured borrowing, the Counterparty is sold certain Class R Interest for a specific period of time without the right to further sell or repledge such Class R Interest. However, we have the right and obligation to repurchase the Class R Interest, or substantially similar assets sold to the Counterparty, upon the maturity of the master repurchase agreement. During 2025, we received approximately $ 1.3 billion under the master repurchase agreement which remained outstanding as of December 31, 2025 and is collateralized by certain Class R interest. The master repurchase agreement has a remaining maturity of less than one year and is classified as Debt maturing within one year in our consolidated balance sheets. The estimated fair value of such Class R Interest was $ 1.8 billion as of December 31, 2025 . In January 2026, we amended the master repurchase agreement to increase the maximum to $ 2.5 billion. In connection with the amendment, we received approximately $ 1.3 billion in proceeds. Variable Interest Entities The ABS Entities meet the definition of a VIE for which we have determined that we are the primary beneficiary as we have both the power to direct the activities of the entity that most significantly impact the entity’s performance and the obligation to absorb losses or the right to receive benefits of the entity. Therefore, the assets, liabilities and activities of the ABS Entities are consolidated in our financial results and are included in amounts presented on the face of our consolidated balance sheets. The assets and liabilities related to our asset-backed debt arrangements included in our consolidated balance sheets were as follows: At December 31, At December 31, (dollars in millions) 2025 2024 Assets Accounts receivable, net $ 18,421 $ 18,339 Prepaid expenses and other 298 322 Other assets 11,753 11,647 Liabilities Accounts payable and accrued liabilities 34 37 Debt maturing within one year 14,863 17,312 Long-term debt 12,204 8,827 The Accounts receivable, net amounts above do not include underlying receivables for which a participation interest has been transferred to the ABS Entities. See Note 8 for additional information on certain receivables and participation interest used to secure asset-backed debt. Long-Term Credit Facilities At December 31, 2025 (dollars in millions) Maturities Facility Capacity Unused Capacity Principal Amount Outstanding Verizon revolving credit facility (1) 2028 $ 12,000 $ 11,977 $ — Various export credit facilities (2) 2026-2033 11,950 1,680 4,652 Total $ 23,950 $ 13,657 $ 4,652 (1) The revolving credit facility does not require us to comply with financial covenants or maintain specified credit ratings, and it permits us to borrow even if our business has incurred a material adverse change. The revolving credit facility provides for the issuance of letters of credit. As of December 31, 2025, there have been no drawings against the revolving credit facility since its inception. (2) During 2025, we drew down $ 270 million . During 2024, there were no drawings from these facilities. Borrowings under certain of these facilities are amortized semi-annually in equal installments up to the applicable maturity dates. Maturities reflect maturity dates of principal amounts outstanding. Any amounts borrowed under these facilities and subsequently repaid cannot be reborrowed. 78 Table of Contents In January 2026, there was a $ 1.6 billion drawing from one of the export credit facilities. Non-Cash Transactions During the years ended December 31, 2025, 2024 and 2023, we financed, primarily through alternative financing arrangements, the purchase of approximately $ 2.1 billion, $ 1.6 billion and $ 1.3 billion, respectively, of long-lived assets consisting primarily of network equipment. As of December 31, 2025 and 2024, $ 3.0 billion and $ 2.5 billion, respectively, relating to these financing arrangements, including those entered into in prior years and liabilities assumed through acquisitions, remained outstanding. These purchases are non-cash financing activities and therefore are not reflected within Capital expenditures in our consolidated statements of cash flows. During 2025 , we made discretionary non-cash contributions to our qualified pension plans in the amount of $ 1.3 billion. The contributions were made from the principal amounts of aggregate notes due 2035, 2055 and 2065. These contributions are non-cash operating activities and therefore are not reflected within cash flow from operating activities in our consolidated statements of cash flows. Net Debt Extinguishment Gains (Losses) During the years ended December 31, 2025, 2024 and 2023, we recorded net debt extinguishment gains of $ 368 million, $ 385 million and $ 308 million, respectively. The net gains are recorded in Other income (expense), net in our consolidated statements of income. The total non-cash debt extinguishment gains are reflected within Other, net cash flow from operating activities, and the total cash payments to extinguish the debt are reflected within Other, net cash flow from financing activities in our consolidated statements of cash flows. Guarantees We guarantee the debentures of our operating telephone company subsidiaries. As of December 31, 2025, $ 614 million aggregate principal amount of these obligations remained outstanding. Each guarantee will remain in place for the life of the obligation unless terminated pursuant to its terms, including the operating telephone company no longer being a wholly-owned subsidiary of the Company. Debt Covenants We and our consolidated subsidiaries are in compliance with all of our restrictive covenants in our debt agreements. Note 8. Device Payment Plan Agreement and Wireless Service Receivables The following table presents information about accounts receivable, net of allowances, recorded in our consolidated balance sheet: At December 31, 2025 (dollars in millions) Device payment plan agreement Wireless service Other receivables (1) Total Accounts receivable $ 16,611 $ 6,062 $ 5,674 $ 28,347 Less Allowance for credit losses 834 244 172 1,250 Accounts receivable, net of allowance $ 15,777 $ 5,818 $ 5,502 $ 27,097 (1) Other receivables primarily include wireline and other receivables, of which the allowances are individually insignificant. Included in Other assets and Accounts receivable, net at December 31, 2025 and December 31, 2024 are net device payment plan agreement receivables, net wireless service receivables and net other receivables of $ 30.0 billion and $ 29.9 billion, which have been transferred to ABS Entities and continue to be reported in our consolidated balance sheet. Included in Accounts receivable, net at December 31, 2025 and December 31, 2024 are net other receivables of $ 1.4 billion and $ 1.2 billion, respectively, on which a participation interest has been transferred to ABS Entities and continue to be reported in our consolidated balance sheets. See Note 7 for additional information. We believe the carrying value of these receivables approximate their fair value using a Level 3 expected cash flow model. Under the Verizon device payment program, our eligible wireless customers purchase wireless devices under a device payment plan agreement. Customers that activate service on devices purchased under the device payment program generally pay lower service fees as compared to those under our fixed-term service plans, and their device payment plan charge is included on their wireless monthly bill. While we no longer offer Consumer customers fixed-term subsidized service plans for devices, we continue to offer subsidized plans to our Business customers. 79 Table of Contents Wireless Device Payment Plan Agreement Receivables The following table displays both the current and non-current portions of device payment plan agreement receivables, net, recognized in our consolidated balance sheets: (dollars in millions) At December 31, 2025 2024 Device payment plan agreement receivables, gross $ 34,004 $ 31,308 Unamortized imputed interest ( 1,053 ) ( 975 ) Device payment plan agreement receivables, at amortized cost 32,951 30,333 Allowance (1) ( 1,628 ) ( 1,315 ) Device payment plan agreement receivables, net $ 31,323 $ 29,018 Classified in our consolidated balance sheets: Accounts receivable, net $ 15,777 $ 15,141 Other assets 15,546 13,877 Device payment plan agreement receivables, net $ 31,323 $ 29,018 (1) Includes allowance for both short-term and long-term device payment plan agreement receivables. For indirect channel wireless contracts with customers, we impute risk adjusted interest on the device payment plan agreement receivables. We record the imputed interest as a reduction to the related accounts receivable. The associated interest income, which is included within Service revenues and other in our consolidated statements of income, is recognized over the financed device payment term. Promotions In connection with certain device payment plan agreements, we may offer a promotion to allow our customers to upgrade to a new device after paying down a certain specified portion of the required device payment plan agreement amount as well as trading in their device in good working order. When a customer enters into a device payment plan agreement with the right to upgrade to a new device, we account for this trade-in right as a guarantee obligation. We may offer certain promotions that allow a customer to trade in their owned device in connection with the purchase of a new device. Under these types of promotions, the customer receives a credit for the value of the trade-in device. At December 31, 2025 and December 31, 2024, the amount of trade-in liability was $ 332 million and $ 396 million, respectively. In addition, we may provide the customer with additional future billing credits that will be applied against the customer’s monthly bill as long as service is maintained. These future billing credits are accounted for as consideration payable to a customer and are included in the determination of total transaction price, resulting in a contract liability. Device payment plan agreement receivables, net, disclosed in the table above, does not reflect the trade-in liability, additional future credits or the guarantee liability. Origination of Device Payment Plan Agreements When originating device payment plan agreements, we use internal and external data sources to create a credit risk score to measure the credit quality of a customer and to determine eligibility for the device payment program. Verizon’s experience has been that the payment attributes of longer tenured customers are highly predictive for estimating their reliability to make future payments. Customers with longer tenures tend to exhibit similar risk characteristics to other customers with longer tenures, and receivables due from customers with longer tenures tend to perform better than receivables from customers that have not previously been Verizon customers. As a result of this experience, we make initial lending decisions based upon whether the customers are "established customers" or "short-tenured customers." If a Consumer customer has been a customer for 45 days or more, or if a Business customer has been a customer for 12 months or more, the customer is considered an "established customer." For established customers, the credit decision and ongoing credit monitoring processes rely on a combination of internal and external data sources. If a Consumer customer has been a customer less than 45 days, or a Business customer has been a customer for less than 12 months, the customer is considered a "short-tenured customer." For short-tenured customers, the credit decision and credit monitoring processes rely more heavily on external data sources. Available external credit data from credit reporting agencies along with internal data are used to create custom credit risk scores for Consumer customers. The custom credit risk score is generated automatically from the applicant’s credit data using proprietary custom credit models. The credit risk score measures the likelihood that the potential customer will become severely delinquent and be disconnected for non-payment. For a small portion of short-tenured customer applications, a traditional credit report is not available from one of the national credit reporting agencies because the potential customer does not have sufficient credit history. In those instances, alternative credit data is used for the risk assessment. For Business customers, we also verify the existence of the business with external data sources. 80 Table of Contents Based on the custom credit risk score, we assign each customer a credit class, each of which has specified offers of credit. This includes an account level spending limit and a maximum amount of credit allowed per device for Consumer customers or a required down payment percentage for Business customers. Credit Quality Information Subsequent to origination, we assess indicators for the quality of our wireless device payment plan agreement portfolio using two models, one for new customers and one for existing customers. The model for new customers pools all Consumer and Business wireless customers based on less than 210 days as "new customers." The model for existing customers pools all Consumer and Business wireless customers based on 210 days or more as "existing customers." The following table presents device payment plan agreement receivables, at amortized cost, and gross write-offs recorded, as of and for the twelve months ended December 31, 2025, by credit quality indicator and year of origination: Year of Origination (1) (dollars in millions) 2025 2024 2023 and prior Total Device payment plan agreement receivables, at amortized cost New customers $ 3,981 $ 1,587 $ 452 $ 6,020 Existing customers 16,307 8,097 2,527 26,931 Total $ 20,288 $ 9,684 $ 2,979 $ 32,951 Gross write-offs New customers $ 228 $ 496 $ 160 $ 884 Existing customers 60 223 189 472 Total $ 288 $ 719 $ 349 $ 1,356 (1) Includes accounts that have been suspended at a point in time. The data presented in the table above was last updated on December 31, 2025. We assess indicators for the quality of our wireless service receivables portfolio as one overall pool. The following table presents wireless service receivables, at amortized cost, and gross write-offs recorded, as of and for the twelve months ended December 31, 2025, by year of origination: Year of Origination (dollars in millions) 2025 2024 and prior Total Wireless service receivables, at amortized cost $ 6,002 $ 60 $ 6,062 Gross write-offs 351 189 540 The data presented in the table above was last updated on December 31, 2025. Allowance for Credit Losses The credit quality indicators are used in determining the estimated amount and the timing of expected credit losses for the device payment plan agreement and wireless service receivables portfolios. For device payment plan agreement receivables, we record bad debt expense based on a default and loss calculation using our proprietary loss model. The expected loss rate is determined based on customer credit scores and other qualitative factors as noted above. The loss rate is assigned individually on a customer by customer basis and the custom credit scores are then aggregated by vintage and used in our proprietary loss model to calculate the weighted-average loss rate used for determining the allowance balance. We monitor the collectability of our wireless service receivables as one overall pool. Wireline service receivables are disaggregated and pooled by the following types of customers and related contracts: consumer, small and medium business, enterprise, public sector and wholesale. For wireless service receivables and wireline consumer and small and medium business receivables, the allowance is calculated based on a 12 month rolling average write-off balance multiplied by the average life-cycle of an account from billing to write-off. The risk of loss is assessed over the contractual life of the receivables and is adjusted based on the historical loss amounts for current and future conditions based on management’s qualitative considerations. For enterprise, public sector and wholesale wireline receivables, the allowance for credit losses is based on historical write-off experience and individual customer credit risk, if applicable. 81 Table of Contents Activity in the allowance for credit losses by portfolio segment of receivables was as follows: (dollars in millions) Device Payment Plan Agreement Receivables (1) Wireless Service Plan Receivables Balance at January 1, 2025 $ 1,315 $ 240 Current period provision for expected credit losses 1,622 492 Write-offs charged against the allowance ( 1,356 ) ( 540 ) Recoveries collected 47 52 Balance at December 31, 2025 $ 1,628 $ 244 (1) Includes allowance for both short-term and long-term device payment plan agreement receivables. We monitor delinquency and write-off experience based on the quality of our device payment plan agreement and wireless service receivables portfolios. The extent of our collection efforts with respect to a particular customer are based on the results of our proprietary custom internal scoring models that analyze the customer’s past performance to predict the likelihood of the customer falling further delinquent. These custom scoring models assess a number of variables, including origination characteristics, customer account history and payment patterns. Since our customers’ behaviors may be impacted by general economic conditions, we analyzed whether changes in macroeconomic conditions impact our credit loss experience and have concluded that our credit loss estimates are generally not materially impacted by reasonable and supportable forecasts of future economic conditions. Based on the score derived from these models, accounts are grouped by risk category to determine the collection strategy to be applied to such accounts. For device payment plan agreement receivables and wireless service receivables, we consider an account to be delinquent and in default status if there are unpaid charges remaining on the account on the day after the bill’s due date. The risk class determines the speed and severity of the collections effort including initiatives taken to facilitate customer payment. The balance and aging of the device payment plan agreement receivables, at amortized cost, were as follows: (dollars in millions) At December 31, 2025 Unbilled $ 31,392 Billed: Current 1,201 Past due 358 Device payment plan agreement receivables, at amortized cost $ 32,951 82 Table of Contents Note 9. Fair Value Measurements and Financial Instruments Recurring Fair Value Measurements The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of December 31, 2025: (dollars in millions) Level 1 (1) Level 2 (2) Level 3 (3) Total Assets: Prepaid expenses and other: Fixed income securities $ — $ 40 $ — $ 40 Cross currency swaps — 4 — 4 Foreign exchange forwards — 1 — 1 Other assets: Marketable equity securities 453 — — 453 Fixed income securities — 344 — 344 Cross currency swaps — 1,417 — 1,417 Total $ 453 $ 1,806 $ — $ 2,259 Liabilities: Other current liabilities: Interest rate swaps $ — $ 1,910 $ — $ 1,910 Cross currency swaps — 222 — 222 Foreign exchange forwards — 1 — 1 Other liabilities: Interest rate swaps — 3,171 — 3,171 Cross currency swaps — 951 — 951 Total $ — $ 6,255 $ — $ 6,255 (1) Quoted prices in active markets for identical assets or liabilities. (2) Observable inputs other than quoted prices in active markets for identical assets and liabilities. (3) Unobservable pricing inputs in the market. The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of December 31, 2024: (dollars in millions) Level 1 (1) Level 2 (2) Level 3 (3) Total Assets: Prepaid expenses and other: Fixed income securities $ — $ 16 $ — $ 16 Interest rate caps — 3 — 3 Other assets: Fixed income securities — 269 — 269 Cross currency swaps — 500 — 500 Total $ — $ 788 $ — $ 788 Liabilities: Other current liabilities: Interest rate swaps $ — $ 1,964 $ — $ 1,964 Cross currency swaps — 345 — 345 Foreign exchange forwards — 5 — 5 Interest rate caps — 3 — 3 Other liabilities: Interest rate swaps — 3,338 — 3,338 Cross currency swaps — 2,344 — 2,344 Total $ — $ 7,999 $ — $ 7,999 (1) Quoted prices in active markets for identical assets or liabilities. (2) Observable inputs other than quoted prices in active markets for identical assets and liabilities. (3) Unobservable pricing inputs in the market. 83 Table of Contents Certain of our equity investments do not have readily determinable fair values and are excluded from the tables above. Such investments are measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer and are included in Investments in unconsolidated businesses in our consolidated balance sheets. As of December 31, 2025 and December 31, 2024, the carrying amount of our investments without readily determinable fair values was $ 710 million and $ 724 million, respectively. During 2025, there were insignificant adjustments due to observable price changes and insignificant impairment charges. Cumulative adjustments due to observable price changes and impairment charges were approximately $ 191 million and $ 144 million, respectively. Marketable equity securities are valued using quoted prices in active markets for identical assets and thus are classified within Level 1. Fixed income securities consist primarily of investments in municipal bonds. The valuation of the fixed income securities is based on the quoted prices for similar assets in active markets or identical assets in inactive markets or models that apply inputs from observable market data. The valuation determines that these securities are classified as Level 2. Derivative contracts are valued using models based on readily observable market parameters for all substantial terms of our derivative contracts and thus are classified within Level 2. We use mid-market pricing for fair value measurements of our derivative instruments. Our derivative instruments are recorded on a gross basis. We recognize transfers between levels of the fair value hierarchy as of the end of the reporting period. Fair Value of Short-term and Long-term Debt The fair value of our debt is determined using various methods, including quoted prices for identical debt instruments, which is a Level 1 measurement, as well as quoted prices for similar debt instruments with comparable terms and maturities, which is a Level 2 measurement. The fair value of our short-term and long-term debt, excluding finance leases, was as follows: Fair Value (dollars in millions) Carrying Amount Level 1 Level 2 Level 3 Total At December 31, 2025 $ 155,639 $ 91,664 $ 62,640 $ — $ 154,304 At December 31, 2024 141,665 81,552 55,464 — 137,016 Derivative Instruments We enter into derivative transactions primarily to manage our exposure to fluctuations in foreign currency exchange rates and interest rates. We employ risk management strategies, which may include the use of a variety of derivatives including interest rate swaps, cross currency swaps, forward starting interest rate swaps, treasury rate locks, interest rate caps, swaptions and foreign exchange forwards. We do not hold derivatives for trading purposes. The following table sets forth the notional amounts of our outstanding derivative instruments: (dollars in millions) At December 31, 2025 2024 Interest rate swaps $ 23,674 $ 24,025 Cross currency swaps 36,074 32,053 Foreign exchange forwards 570 620 84 Table of Contents The following tables summarize the activities of our designated derivatives: (dollars in millions) Years Ended December 31, 2025 2024 Interest Rate Swaps: Notional value entered into $ 634 $ — Notional value settled 985 2,046 Pre-tax gain (loss) recognized in Interest expense ( 10 ) 4 Cross Currency Swaps: Notional value entered into 6,191 2,146 Notional value settled 2,170 3,619 Pre-tax gain (loss) on cross currency swaps recognized in Interest expense 3,476 ( 1,839 ) Pre-tax gain (loss) on hedged debt recognized in Interest expense ( 3,476 ) 1,839 Excluded components recognized in Other comprehensive income (loss) ( 1,131 ) 730 Initial value of the excluded component amortized into Interest expense 92 96 Treasury Rate Locks: Notional value entered into 6,000 1,000 Notional value settled 6,000 1,000 Pre-tax gain (loss) recognized in Other comprehensive income (loss) ( 121 ) ( 21 ) (dollars in millions) Years Ended December 31, 2025 2024 Other, net Cash Flows from Operating Activities: Cash paid for settlement of interest rate swaps $ ( 45 ) $ ( 57 ) Cash received (paid) for settlement of treasury rate locks (1) — ( 21 ) Other, net Cash Flows from Financing Activities: Cash paid for settlement of cross currency swaps, net ( 91 ) ( 243 ) (1) In 2025, treasury rate locks settlement payments amounting to $ 121 million were deferred by incorporating the settlement amounts into the cash flows due of certain fixed-to-float interest rate swaps executed in November 2025. Inclusion of the treasury rate locks settlement amounts into the cash flows of these fixed-to-float interest rate swaps resulted in an other-than-insignificant financing element at inception. As such, the cash flows associated with these interest rate swaps will be classified as financing activities in the consolidated statements of cash flows. The following table displays the amounts recorded in Long-term debt in our consolidated balance sheets related to cumulative basis adjustments for our interest rate swaps designated as fair value hedges. The cumulative amounts exclude cumulative basis adjustments related to foreign exchange risk. (dollars in millions) At December 31, 2025 2024 Carrying amount of hedged liabilities $ 18,815 $ 18,863 Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities ( 4,841 ) ( 5,192 ) Cumulative amount of fair value hedging adjustment remaining for which hedge accounting has been discontinued 214 281 Interest Rate Swaps We enter into interest rate swaps to achieve a targeted mix of fixed and variable rate debt. 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. We record the interest rate swaps at fair value in our consolidated balance sheets as assets and liabilities. Changes in the fair value of the interest rate swaps are recorded to Interest expense, which are primarily offset by changes in the fair value of the hedged debt due to changes in interest rates. Cross Currency Swaps We have entered into cross currency swaps to exchange our British Pound Sterling, Euro, Swiss Franc, Canadian Dollar and Australian Dollar-denominated cash flows into U.S. dollars and to fix our cash payments in U.S. dollars, as well as to mitigate the impact of foreign currency transaction gains or losses. These swaps are designated as fair value hedges. We record the cross currency swaps at fair value in our consolidated balance sheets as assets and liabilities. Changes in the fair value of the cross currency swaps attributable to changes in the spot rate of the hedged item and changes in the recorded value of the hedged debt due to changes in spot rates are recorded in the same income statement line item. We present exchange gains and losses from the conversion of foreign currency denominated debt as a part of Interest expense. During the years ended December 31, 2025 and 2024, these amounts completely offset each other and no net gain or loss was recorded. 85 Table of Contents Changes in the fair value of cross currency swaps attributable to time value and cross currency basis spread are initially recorded to Other comprehensive income (loss). Unrealized gains or losses on excluded components are recorded in Other comprehensive income (loss) and are recognized into Interest expense on a systematic and rational basis through the swap accrual over the life of the hedging instrument. On March 31, 2022, we elected to de-designate our cross currency swaps previously designated as cash flow hedges and re-designated these swaps as fair value hedges. The amount remaining in Accumulated other comprehensive loss related to cash flow hedges on the date of transition will be reclassified to earnings when the hedged item is recognized in earnings or when it becomes probable that the forecasted transactions will not occur. For the fair value hedges, we elected to exclude the change in fair value of the cross currency swaps related to both time value and cross currency basis spread from the assessment of hedge effectiveness (the excluded components). The initial value of the excluded components of $ 1.0 billion as of March 31, 2022 will continue to be amortized into Interest expense over the remaining life of the hedging instruments . During the years ended December 31, 2025 and 2024, the amortization of the initial value of the excluded component completely offset the amortization related to the amount remaining in Other comprehensive income (loss) related to cash flow hedges. See Note 14 for additional information. We estimate that $ 86 million will be amortized into Interest expense within the next 12 months. Net Investment Hedges We have designated certain foreign currency debt instruments as net investment hedges to mitigate foreign exchange exposure related to non-U.S. dollar net investments in certain foreign subsidiaries against changes in foreign exchange rates. The notional amount of Euro-denominated debt designated as a net investment hedge was € 750 million as of both December 31, 2025 and 2024. Treasury Rate Locks We enter into treasury rate locks designated as cash flow hedges to mitigate our interest rate risk on future transactions. We recognize gains and losses resulting from interest rate movements in Other comprehensive income (loss). We also enter into undesignated treasury rate locks to mitigate our interest rate risk on future transactions. We recognize gains and losses resulting from interest rate movements in Interest expense. Undesignated Derivatives We also have the following derivative contracts which we use as economic hedges but for which we have elected not to apply hedge accounting. The following table summarizes the activity of our derivatives not designated in hedging relationships: (dollars in millions) Years Ended December 31, 2025 2024 Foreign Exchange Forwards: Notional value entered into $ 7,740 $ 8,640 Notional value settled 7,790 9,070 Pre-tax gain (loss) recognized in Other income (expense), net 75 ( 50 ) Treasury Rate Locks: Notional value entered into 1,250 — Notional value settled 1,250 — Pre-tax gain (loss) recognized in Interest expense ( 5 ) — Foreign Exchange Forwards We entered into Euro foreign exchange forwards, and in prior periods, British Pound Sterling foreign exchange forwards to mitigate our foreign exchange rate risk related to non-functional currency denominated monetary assets and liabilities of international subsidiaries. Concentrations of Credit Risk Financial instruments that subject us to concentrations of credit risk consist primarily of temporary cash investments, short-term and long-term investments, trade receivables, including device payment plan agreement receivables, certain notes receivable, including lease receivables, and derivative contracts. 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. 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 86 Table of Contents value. At both December 31, 2025 and 2024, we did no t hold any collateral. At December 31, 2025 and 2024, we posted $ 1.1 billion and $ 2.1 billion, respectively, of collateral related to derivative contracts under collateral exchange agreements, which were recorded as Prepaid expenses and other in our consolidated balance sheets. While we may be exposed to credit losses due to the nonperformance of our counterparties, we consider the risk remote and do not expect that any such nonperformance would result in a significant effect on our results of operations or financial condition due to our diversified pool of counterparties. Note 10. Stock-Based Compensation Verizon Long-Term Incentive Plan In May 2017, our shareholders approved the 2017 Long-Term Incentive Plan (the 2017 Plan) and terminated the Company's authority to grant new awards under the Verizon 2009 Long-Term Incentive Plan (the 2009 Plan). The 2017 Plan provides for broad-based equity grants to employees, including executive officers, and permits the granting of stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance stock units and other awards. Upon approval of the 2017 Plan, we reserved for issuance under the 2017 Plan the number of shares that were remaining but not issued under the 2009 Plan. Shares subject to outstanding awards under the 2009 Plan that expire, are canceled or otherwise terminated will also be available for awards under the 2017 Plan. As of December 31, 2025, 37 million shares are reserved for future issuance under the 2017 Plan. Restricted Stock Units Restricted Stock Units (RSUs) granted under the 2017 Plan generally vest in three equal installments on each anniversary of the grant date. The RSUs that are paid in stock upon vesting and are thus classified as equity awards are measured using the grant date fair value of Verizon common stock and are not remeasured at the end of each reporting period. In 2020, Verizon announced a broad-based program that provides for the annual award of cash-settled RSUs under the 2017 Plan to all full-time and part-time employees who meet eligibility requirements. The RSUs that are settled in cash are classified as liability awards and the liability is measured at its fair value at the end of each reporting period. All RSUs granted under the 2017 Plan have dividend equivalent units (DEUs), which will be paid to participants if, and only to the extent the applicable RSU award vests, and is paid at the time the RSU award is paid, and in the same proportion as the RSU award. We estimate forfeitures at the time of grant and revise those estimates in subsequent periods if actual forfeitures differ from those estimates. We use historical data to estimate forfeitures and recognize that estimated compensation cost of restricted stock units, net of estimated forfeitures, on a straight-line basis over the vesting period. Performance Stock Units The 2017 Plan also provides for grants of Performance Stock Units (PSUs) that generally vest at the end of the third year after the grant. As defined by the 2017 Plan, the Human Resources Committee of the Board of Directors determines the number of PSUs a participant earns based on the extent to which the corresponding performance goals have been achieved over the three-year performance cycle. The PSUs that are paid in stock upon vesting and are classified as equity awards are measured using the grant date fair value of Verizon common stock and are not remeasured at the end of each reporting period. The PSUs that are settled in cash and are classified as liability awards are measured at its fair value at the end of each reporting period and, therefore, will fluctuate based on the price of Verizon common stock as well as performance relative to the targets. All PSUs granted under the 2017 Plan have DEUs, which will be paid to participants if, and only to the extent the applicable PSU award vests, and is paid at the time that PSU award is paid, and in the same proportion as the PSU award. The granted and cancelled activity for the PSU award includes adjustments for the performance goals achieved. The following table summarizes Verizon’s Restricted Stock Unit and Performance Stock Unit activity: Restricted Stock Units Performance Stock Units (shares in thousands) Equity Awards Liability Awards Equity Awards Liability Awards Outstanding January 1, 2023 7,253 20,609 13,825 416 Granted 13,047 17,441 2,537 12 Payments ( 3,612 ) ( 12,198 ) ( 3,495 ) ( 121 ) Cancelled/Forfeited ( 836 ) ( 2,366 ) ( 693 ) ( 31 ) Outstanding December 31, 2023 15,852 23,486 12,174 276 Granted 11,118 16,172 ( 12 ) ( 46 ) Payments ( 6,439 ) ( 12,393 ) ( 2,175 ) ( 71 ) Cancelled/Forfeited ( 533 ) ( 1,379 ) ( 181 ) ( 1 ) Outstanding December 31, 2024 19,998 25,886 9,806 158 Granted 18,067 7,612 2,575 16 Payments ( 9,554 ) ( 13,001 ) ( 2,298 ) ( 66 ) Cancelled/Forfeited ( 429 ) ( 991 ) ( 3,086 ) ( 64 ) Outstanding December 31, 2025 28,082 19,506 6,997 44 87 Table of Contents As of December 31, 2025, unrecognized compensation expense related to the unvested portion of Verizon’s RSUs and PSUs was approximately $ 734 million and is expected to be recognized over approximately 2 years. The equity awards granted in 2025, 2024 and 2023 have weighted-average grant date fair values of $ 43.75 , $ 40.31 and $ 37.53 per unit, respectively. During 2025, 2024 and 2023, we paid $ 525 million, $ 508 million and $ 415 million, respectively, to settle RSUs and PSUs classified as liability awards. Stock-Based Compensation Expense After-tax compensation expense for stock-based compensation related to RSUs and PSUs described above included in Net income attributable to Verizon was $ 815 million, $ 795 million and $ 533 million for 2025, 2024 and 2023, respectively. Note 11. Employee Benefits We maintain non-contributory defined benefit pension plans for certain employees. In addition, we maintain postretirement health care and life insurance plans for certain retirees and their dependents, which are both contributory and non-contributory, and include a limit on our share of the cost for certain current and future retirees. In accordance with our accounting policy for pension and other postretirement benefits, operating expenses include service costs associated with pension and other postretirement benefits while other credits and/or charges based on actuarial assumptions, including projected discount rates, an estimated return on plan assets, and impact from health care trend rates are reported in Other income (expense), net. These estimates are updated in the fourth quarter or upon a remeasurement event, to reflect actual return on plan assets and updated actuarial assumptions. The adjustment is recognized in the income statement during the fourth quarter and upon a remeasurement event pursuant to our accounting policy for the recognition of actuarial gains and losses. Pension and Other Postretirement Benefits Pension and other postretirement benefits for certain employees are subject to collective bargaining agreements. Modifications in benefits have been bargained from time to time, and we may also periodically amend the benefits in the management plans. The following tables summarize benefit costs, as well as the benefit obligations, plan assets, funded status and rate assumptions associated with pension and postretirement health care and life insurance benefit plans. Obligations and Funded Status (dollars in millions) Pension Health Care and Life At December 31, 2025 2024 2025 2024 Change in Benefit Obligations Beginning of year $ 7,918 $ 15,133 $ 10,539 $ 11,455 Service cost 160 185 33 52 Interest cost 405 479 547 543 Plan amendments — — 1 — Actuarial (gain) loss, net 137 ( 1,130 ) 279 ( 533 ) Benefits paid ( 435 ) ( 419 ) ( 801 ) ( 978 ) Curtailment and termination benefits 1 6 — — Settlements paid ( 215 ) ( 725 ) — — Annuity contracts transfer — ( 5,611 ) — — End of year 7,971 7,918 10,598 10,539 Change in Plan Assets Beginning of year 6,802 13,536 466 466 Actual return on plan assets 456 ( 400 ) 71 43 Company contributions 1,313 421 762 935 Benefits paid ( 435 ) ( 419 ) ( 801 ) ( 978 ) Settlements paid ( 215 ) ( 725 ) — — Annuity contracts transfer — ( 5,611 ) — — End of year 7,921 6,802 498 466 Funded Status - End of year $ ( 50 ) $ ( 1,116 ) $ ( 10,100 ) $ ( 10,073 ) 88 Table of Contents (dollars in millions) Pension Health Care and Life At December 31, 2025 2024 2025 2024 Amounts recognized in the balance sheets Non-current assets $ 254 $ — $ — $ — Current liabilities $ ( 36 ) $ ( 38 ) $ ( 612 ) $ ( 643 ) Non-current liabilities ( 268 ) ( 1,078 ) ( 9,488 ) ( 9,430 ) Total $ ( 50 ) $ ( 1,116 ) $ ( 10,100 ) $ ( 10,073 ) Amounts recognized in Accumulated other comprehensive loss (pre-tax) Prior service cost (benefit) $ 412 $ 523 $ ( 703 ) $ ( 833 ) Total $ 412 $ 523 $ ( 703 ) $ ( 833 ) The accumulated benefit obligation for all defined benefit pension plans was $ 7.9 billion at both December 31, 2025 and 2024. Pension Annuitization On February 29, 2024, we entered into two separate commitment agreements, one by and between the Company, State Street Global Advisors Trust Company (State Street), as independent fiduciary of the Verizon Management Pension Plan and Verizon Pension Plan for Associates (the Pension Plans), and The Prudential Insurance Company of America (Prudential), and one by and between the Company, State Street and RGA Reinsurance Company (RGA), under which the Pension Plans purchased nonparticipating single premium group annuity contracts from Prudential and RGA, respectively, to settle approximately $ 5.8 billion of benefit liabilities of the Pension Plans, net of certain adjustments, resulting in a net pre-tax settlement gain of $ 200 million. The purchase of the group annuity contracts closed on March 6, 2024. The group annuity contracts primarily cover a population that includes 56,000 retirees who commenced benefit payments from the Pension Plans prior to January 1, 2023 (Transferred Participants). Prudential and RGA each irrevocably guarantee and assume the sole obligation to make future payments to the Transferred Participants as provided under their respective group annuity contracts, with direct payments beginning July 1, 2024. The aggregate amount of each Transferred Participant's payment under the group annuity contracts will be equal to the amount of each individual’s payment under the Pension Plans. The purchase of the group annuity contracts was funded directly by transferring $ 5.6 billion, of assets of the Pension Plans, net of certain adjustments. The Company made additional contributions to the Pension Plans prior to the closing date of the transaction. With these contributions, the funded ratio of each of the Pension Plans did not change as a result of this transaction. Pension plan assets and liabilities are primarily presented within Employee benefit obligations in our consolidated balance sheets. Actuarial (Gain) Loss, Net The net actuarial loss in 2025 is primarily the result of a $ 375 million loss ($ 106 million in our pension plans and $ 269 million in our postretirement benefit plans) due to a decrease in our discount rate assumption used to determine the current year liabilities of our pension plans and postretirement benefit plans from a weighted-average of 5.8 % for our pension plans and 5.6 % for our postretirement plans at December 31, 2024 to a weighted-average of 5.7 % for our pension plans and 5.4 % for our postretirement plans at December 31, 2025. The net actuarial gain in 2024 is primarily the result of a $ 1.4 billion gain ($ 764 million in our pension plans and $ 656 million in our postretirement benefit plans) due to an increase in our discount rate assumption used to determine the current year liabilities of our pension plans and postretirement benefit plans from a weighted-average of 5.0 % for both our pension and postretirement plans at December 31, 2023 to a weighted-average of 5.8 % for our pension plans and 5.6 % for our postretirement plans at December 31, 2024, as well as a net pre-tax settlement gain of $ 200 million resulting from the pension annuitization transaction discussed above. Plan Amendments The reclassifications from the amounts recorded in Accumulated other comprehensive income (loss) as a result of collective bargaining agreements and plan amendments made in 2016, 2017, 2018 and 2022 resulted in a net increase to net periodic benefit cost and net decrease to pre-tax income of an insignificant amount during 2025 and 2024. The similar reclassifications resulted in a net decrease to net periodic benefit cost and net increase to pre-tax income of $ 252 million during 2023. 89 Table of Contents Information for pension plans with an accumulated benefit obligation in excess of plan assets follows: (dollars in millions) At December 31, 2025 2024 Accumulated benefit obligation $ 1,883 $ 7,881 Fair value of plan assets 1,579 6,802 Information for pension plans with a projected benefit obligation in excess of plan assets follows: (dollars in millions) At December 31, 2025 2024 Projected benefit obligation $ 1,883 $ 7,918 Fair value of plan assets 1,579 6,802 Net Periodic Benefit Cost (Income) The following table summarizes the components of net periodic benefit cost (income) related to our pension and postretirement health care and life insurance plans: (dollars in millions) Pension Health Care and Life Years Ended December 31, 2025 2024 2023 2025 2024 2023 Service cost - Cost of services $ 137 $ 159 $ 182 $ 28 $ 44 $ 46 Service cost - Selling, general and administrative expense 23 26 26 5 8 8 Service cost 160 185 208 33 52 54 Amortization of prior service cost (credit) 112 112 112 ( 129 ) ( 129 ) ( 419 ) Expected return on plan assets ( 534 ) ( 620 ) ( 1,013 ) ( 28 ) ( 28 ) ( 31 ) Interest cost 405 479 752 547 543 545 Remeasurement loss (gain), net 216 ( 110 ) 266 237 ( 547 ) 726 Curtailment and termination benefits 1 — — — — — Other components 200 ( 139 ) 117 627 ( 161 ) 821 Total $ 360 $ 46 $ 325 $ 660 $ ( 109 ) $ 875 The service cost component of net periodic benefit cost (income) is recorded in Cost of services and Selling, general and administrative expense in the consolidated statements of income while the other components, including mark-to-market adjustments, if any, are recorded in Other income (expense), net. Other pre-tax changes in plan assets and benefit obligations recognized in Other comprehensive (income) loss are as follows: (dollars in millions) Pension Health Care and Life At December 31, 2025 2024 2023 2025 2024 2023 Reversal of amortization items Prior service cost (benefit) $ ( 112 ) $ ( 112 ) $ ( 112 ) $ 129 $ 129 $ 419 Total recognized in Other comprehensive loss (income) (pre-tax) $ ( 112 ) $ ( 112 ) $ ( 112 ) $ 129 $ 129 $ 419 90 Table of Contents Assumptions The weighted-average assumptions used in determining benefit obligations follow: Pension Health Care and Life At December 31, 2025 2024 2025 2024 Discount Rate 5.70 % 5.80 % 5.40 % 5.60 % Rate of compensation increases 3.00 % 3.00 % N/A N/A N/A - not applicable The weighted-average assumptions used in determining net periodic cost follow: Pension Health Care and Life At December 31, 2025 2024 2023 2025 2024 2023 Discount rate in effect for determining service cost 5.80 % 5.40 % 5.30 % 5.80 % 5.10 % 5.30 % Discount rate in effect for determining interest cost 5.40 5.20 5.10 5.40 4.90 5.10 Expected return on plan assets 8.00 7.90 7.70 6.20 6.30 7.30 Rate of compensation increases 3.00 3.00 3.00 N/A N/A N/A N/A - not applicable In determining our pension and other postretirement benefit obligations, we used a weighted-average discount rate of 5.5 % in 2025. The rates were selected to approximate the composite interest rates available on a selection of high-quality bonds available in the market at December 31, 2025. The bonds selected had maturities that coincided with the time periods during which benefits payments are expected to occur, were non-callable (or callable with certain selection criteria met) and available in sufficient quantities to ensure marketability (at least $ 300 million par outstanding). In order to project the long-term target investment return for the total portfolio, estimates are prepared for the total return of each major asset class over the subsequent 10-year period. Those estimates are based on a combination of factors including the current market interest rates and valuation levels, consensus earnings expectations and historical long-term risk premiums. To determine the aggregate return for the pension trust, the projected return of each individual asset class is then weighted according to the allocation to that investment area in the trust’s long-term asset allocation policy. The assumed health care cost trend rates are as follows: Health Care and Life At December 31, 2025 2024 2023 Weighted-average healthcare cost trend rate assumed for next year 9.30 % 8.80 % 7.30 % Rate to which cost trend rate gradually declines 4.50 4.50 4.50 Year the rate reaches the level it is assumed to remain thereafter 2034 2034 2032 Plan Assets The Company’s overall investment strategy is to achieve a mix of assets that allows us to meet projected benefit payments while taking into consideration risk and return. While target allocation percentages will vary over time, the current target allocation for plan assets is designed so that 45 % to 55 % of the assets have the objective of achieving a return in excess of the growth in liabilities (comprised of public equities, private equities, real estate, hedge funds, and high yield bonds) and 52 % to 62 % of the assets are invested as liability hedging assets (where interest rate sensitivity of the liability hedging assets better match the interest rate sensitivity of the liability) and a maximum of 10 % is in cash. This allocation will shift as funded status improves to a higher allocation of liability hedging assets. Target policies will be revisited periodically to ensure they are in line with fund objectives. Both active and passive management approaches are used depending on perceived market efficiencies and various other factors. Due to our diversification and risk control processes, there are no significant concentrations of risk, in terms of sector, industry, geography or company names. As of December 31, 2025, approximately 8 % of pension plan assets consist of Verizon bonds and common stock. Healthcare and life plan assets do not include significant amounts of Verizon bonds or common stock. 91 Table of Contents Pension Plans The fair values for the pension plans by asset category at December 31, 2025 are as follows: (dollars in millions) Asset Category Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 882 $ 859 $ 23 $ — Equity securities 8 8 — — Fixed income securities U.S. Treasuries and agencies 938 737 201 — Corporate bonds 2,200 1,069 1,131 — International bonds 139 — 139 — Other 163 ( 47 ) 210 — Real estate 917 — — 917 Other Private equity 417 — — 417 Hedge funds 53 — 25 28 Total investments at fair value 5,717 2,626 1,729 1,362 Investments measured at NAV 2,204 Total $ 7,921 $ 2,626 $ 1,729 $ 1,362 The fair values for the pension plans by asset category at December 31, 2024 are as follows: (dollars in millions) Asset Category Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 542 $ 530 $ 12 $ — Equity securities 12 12 — — Fixed income securities U.S. Treasuries and agencies 720 527 193 — Corporate bonds 1,129 627 502 — International bonds 113 — 113 — Other 82 ( 87 ) 169 — Real estate 934 — — 934 Other Private equity 564 — — 564 Hedge funds 50 — 27 23 Total investments at fair value 4,146 1,609 1,016 1,521 Investments measured at NAV 2,656 Total $ 6,802 $ 1,609 $ 1,016 $ 1,521 The following is a reconciliation of the beginning and ending balance of pension plan assets that are measured at fair value using significant unobservable inputs: (dollars in millions) Real Estate Private Equity Hedge Funds Total Balance at January 1, 2024 $ 996 $ 512 $ 26 $ 1,534 Actual gain (loss) on plan assets ( 69 ) 55 1 ( 13 ) Purchases (sales) 12 ( 1 ) ( 1 ) 10 Transfers out ( 5 ) ( 2 ) ( 3 ) ( 10 ) Balance at December 31, 2024 934 564 23 1,521 Actual gain (loss) on plan assets 43 ( 53 ) 3 ( 7 ) Purchases (sales) ( 60 ) ( 90 ) 2 ( 148 ) Transfers out — ( 4 ) — ( 4 ) Balance at December 31, 2025 $ 917 $ 417 $ 28 $ 1,362 92 Table of Contents Health Care and Life Plans The fair values for the other postretirement benefit plans by asset category at December 31, 2025 are as follows: (dollars in millions) Asset Category Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 32 $ — $ 32 $ — Equity securities 237 237 — — Fixed income securities U.S. Treasuries and agencies 165 150 15 — Corporate bonds 39 22 17 — International bonds 13 9 4 — Other 12 — 12 — Total investments at fair value 498 418 80 — Investments measured at NAV — Total $ 498 $ 418 $ 80 $ — The fair values for the other postretirement benefit plans by asset category at December 31, 2024 are as follows: (dollars in millions) Asset Category Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 21 $ — $ 21 $ — Equity securities 223 223 — — Fixed income securities U.S. Treasuries and agencies 149 135 14 — Corporate bonds 45 32 13 — International bonds 15 11 4 — Other 10 — 10 — Total investments at fair value 463 401 62 — Investments measured at NAV 3 Total $ 466 $ 401 $ 62 $ — The following are general descriptions of asset categories, as well as the valuation methodologies and inputs used to determine the fair value of each major category of assets. Cash and cash equivalents include short-term investment funds (less than 90 days to maturity), primarily in diversified portfolios of investment grade money market instruments and are valued using quoted market prices or other valuation methods. The carrying value of cash equivalents approximates fair value due to the short-term nature of these investments. Investments in securities traded on national and foreign securities exchanges are valued by the trustee at the last reported sale prices on the last business day of the year or, if no sales were reported on that date, at the last reported bid prices. Government obligations, corporate bonds, international bonds and asset-backed debt are valued using matrix prices with input from independent third-party valuation sources. Over-the-counter securities are valued at the bid prices or the average of the bid and ask prices on the last business day of the year from published sources or, if not available, from other sources considered reliable such as multiple broker quotes. Commingled funds not traded on national exchanges are priced by the custodian or fund's administrator at their net asset value (NAV). Commingled funds held by third-party custodians appointed by the fund managers provide the fund managers with a NAV. The fund managers have the responsibility for providing this information to the custodian of the respective plan. The investment manager of the entity values venture capital, corporate finance and natural resource limited partnership investments. Real estate investments are valued at amounts based upon appraisal reports prepared by either independent real estate appraisers or the investment manager using discounted cash flows or market comparable data. Loans secured by mortgages are carried at the lesser of the unpaid balance or appraised value of the underlying properties. The values assigned to these investments are based upon available and current market information and do not necessarily represent amounts that might ultimately be realized. Because of the inherent uncertainty of valuation, estimated fair values might differ significantly from the values that would have been used had a ready market for the securities existed. These differences could be material. Forward currency contracts, futures, and options are valued by the trustee at the exchange rates and market prices prevailing on the last business day of the year. Both exchange rates and market prices are readily available from published sources. These securities are classified by the asset class of the underlying holdings. Hedge funds are valued by the custodian at NAV based on statements received from the investment manager. These funds are valued in accordance with the terms of their corresponding offering or private placement memoranda. 93 Table of Contents Commingled funds, hedge funds, venture capital, corporate finance, natural resource and real estate limited partnership investments for which fair value is measured using the NAV per share as a practical expedient are not leveled within the fair value hierarchy but are included in total investments. Employer Contributions In 2025, we made discretionary non-cash contributions in the aggregate principal amount of $ 1.3 billion to our qualified pension plans. We made contributions of $ 54 million to our nonqualified pension plans and $ 762 million of contributions to our other postretirement benefit plans. For 2026, we expect no required qualified pension plan contributions and insignificant nonqualified pension plan contributions. Contributions to our other postretirement benefit plans are estimated to be approximately $ 700 million in 2026. Estimated Future Benefit Payments The benefit payments to retirees are expected to be paid as follows: (dollars in millions) Year Pension Benefits Health Care and Life 2026 $ 1,117 $ 711 2027 320 755 2028 360 788 2029 401 812 2030 438 875 2031 to 2035 2,663 4,489 Savings Plan and Employee Stock Ownership Plans We maintain four leveraged employee stock ownership plans (ESOP). We match a certain percentage of eligible employee contributions to certain savings plans with shares of our common stock from this ESOP. At December 31, 2025, the number of allocated shares of common stock in this ESOP was 38 million. There were no unallocated shares of common stock in this ESOP at December 31, 2025. All leveraged ESOP shares are included in earnings per share computations. Total savings plan costs were $ 666 million in 2025, $ 700 million in 2024 and $ 724 million in 2023. Severance Benefits The following table provides an analysis of our severance liability: (dollars in millions) Year Beginning of Year Charged to Expense Payments End of Year 2023 $ 653 $ 531 $ ( 617 ) $ 567 2024 567 1,494 ( 966 ) 1,095 2025 1,095 1,491 ( 906 ) 1,680 Severance, Pension and Benefits Charges (Credits) During 2025, we recorded net pre-tax severance charges of $ 1.5 billion, principally as a result of separations in connection with workforce reduction initiatives, in Selling, general and administrative expense in our consolidated statements of income. More than 13,000 employees separated from Verizon under this initiative, with the majority of these employees having exited through December 31, 2025. During 2024, we recorded net pre-tax severance charges of $ 1.5 billion, p rincipally as a result of our voluntary separation program, but also as a result of other headcount reduction initiatives, in Selling, general and administrative expense in our consolidated statements of income. In June 2024, we announced a voluntary separation program for select U.S.-based management employees. Approximately 4,800 eligible employees separated from Verizon under this program through the end of March 2025. During 2023, we recorded net pre-tax severance charges of $ 531 million in Selling, general and administrative expense in our consolidated statements of income. During 2025, in accordance with our accounting policy to recognize actuarial gains and losses in the period in which they occur, we recorded net pre-tax pension and benefit charges of $ 453 million in our pension and postretirement benefit plans. The net charge was recorded in Other income (expense), net, in our consolidated statement of income. This was primarily driven by a charge of $ 375 million ($ 106 million for pension plans and $ 269 million for postretirement benefit plans) due to a decrease in our 94 Table of Contents discount rate assumption used to determine the current year liabilities of our plans from a weighted-average of 5.8 % for our pension plans and 5.6 % for our postretirement plans at December 31, 2024 to a weighted-average of 5.7 % for our pension plans and 5.4 % for our postretirement plans at December 31, 2025, and a net charge of $ 78 million primarily due to changes in other actuarial assumption adjustments, which includes the difference between our estimated and our actual return on plan assets. During 2024, we recorded net pre-tax pension and benefits credits of $ 657 million in our pension and postretirement benefit plans. The net gain was recorded in Other income (expense), net, in our consolidated statement of income. This was primarily driven by a credit of $ 1.4 billion ($ 764 million for pension plans and $ 656 million for postretirement benefit plans) due to an increase in our discount rate assumption used to determine the current year liabilities of our plans from a weighted-average of 5.0 % for both our pension and post retirement plans at December 31, 2023 to a weighted-average of 5.8 % for our pension plans and 5.6 % for our postretirement benefit plans at December 31, 2024; a charge of $ 1.0 billion due to the difference between our estimated and our actual return on plan assets; and a net pre-tax settlement credit of $ 200 million resulting from the pension annuitization transaction discussed above. During 2023, we recorded net pre-tax pension and benefits charges of $ 992 million in our pension and postretirement benefit plans. The charges were recorded in Other income (expense), net, in our consolidated statement of income and were primarily driven by a charge of $ 534 million due to an increase in our healthcare cost trend rate assumption used to determine the current year liabilities of our postretirement benefit plans from a weighted-average of 6.6 % at December 31, 2022 to a weighted-average of 7.3 % at December 31, 2023; a charge of $ 503 million due to a decrease in our discount rate assumption used to determine the current year liabilities of our pension plans ($ 288 million) and postretirement benefit plans ($ 215 million) from a weighted-average of 5.2 % at December 31, 2022 to a weighted-average of 5.0 % at December 31, 2023; a net credit of $ 45 million primarily due to changes in other actuarial assumption adjustments, which includes the difference between our estimated and our actual return on plan assets. Note 12. Taxes The components of income before provision for income taxes are as follows: (dollars in millions) Years Ended December 31, 2025 2024 2023 Domestic $ 20,150 $ 21,253 $ 15,668 Foreign 2,522 1,726 1,319 Total $ 22,672 $ 22,979 $ 16,987 The components of the provision for income taxes are as follows: (dollars in millions) Years Ended December 31, 2025 2024 2023 Current Federal $ 1,735 $ 3,367 $ 2,070 Foreign 323 240 219 State and local 666 608 215 Total 2,724 4,215 2,504 Deferred Federal 2,115 807 1,799 Foreign 19 ( 4 ) 28 State and local 206 12 561 Total 2,340 815 2,388 Total income tax provision $ 5,064 $ 5,030 $ 4,892 95 Table of Contents The following table shows the principal reasons for the difference between the effective income tax rate and the statutory federal income tax rate: (dollars in millions) 2025 2024 2023 Years Ended December 31, Amount Percent Amount Percent Amount Percent U.S. federal statutory tax rate $ 4,761 21.0 % $ 4,825 21.0 % $ 3,567 21.0 % State and local income taxes, net of federal income tax effect (1) 739 3.3 566 2.5 664 3.9 Foreign tax effects ( 131 ) ( 0.6 ) ( 68 ) ( 0.3 ) ( 16 ) ( 0.1 ) Effect of cross-border tax laws 41 0.2 — — 18 0.1 Tax credits ( 25 ) ( 0.1 ) ( 27 ) ( 0.1 ) ( 27 ) ( 0.2 ) Changes in valuation allowances ( 34 ) ( 0.2 ) 15 0.1 — — Nontaxable or nondeductible items Goodwill impairment — — — — 1,149 6.8 Other ( 69 ) ( 0.3 ) ( 116 ) ( 0.5 ) ( 133 ) ( 0.8 ) Changes in unrecognized tax benefits 19 0.1 40 0.2 ( 27 ) ( 0.2 ) Other adjustments Federal refund claims — — ( 17 ) ( 0.1 ) ( 245 ) ( 1.4 ) Other ( 237 ) ( 1.1 ) ( 188 ) ( 0.9 ) ( 58 ) ( 0.3 ) Effective income tax rate $ 5,064 22.3 % $ 5,030 21.9 % $ 4,892 28.8 % (1) The states that contribute to the majority (greater than 50%) of the tax effect in this category include California, Illinois, Maryland, Pennsylvania and Virginia for 2025, California, Maryland and Pennsylvania for 2024, California, Georgia, Illinois, Maryland and Virginia for 2023. The effective income tax rate for 2025 was 22.3 % compared to 21.9 % for 2024. The increase in the effective income tax rate and provision for income taxes was primarily due to higher tax benefits resulting from the favorable resolution of various income tax matters and a reduction in deferred income taxes due to changes in state apportionment during the prior period. The effective income tax rate for 2024 was 21.9 % compared to 28.8 % for 2023. The decrease in the effective income tax rate was primarily due to the Verizon Business Group goodwill impairment charge of $ 5.8 billion in 2023 that substantially decreased income before income taxes and was not deductible. The increase in the provision for income taxes was primarily due to the increase in income before income taxes in the current period. The amounts of cash taxes paid by Verizon are as follows: (dollars in millions) Years Ended December 31, 2025 2024 2023 Federal $ 2,236 $ 4,745 $ 1,447 State 977 665 672 Foreign Ireland 291 156 143 All other foreign 77 66 81 Income taxes, net of amounts refunded 3,581 5,632 2,343 Employment taxes 972 992 1,016 Property and other taxes 1,915 1,836 2,007 Total $ 6,468 $ 8,460 $ 5,366 In 2025 and 2023, the only jurisdiction with cash taxes paid that equaled or exceeded 5% of total income taxes paid was Ireland. In 2024, there were no individual jurisdictions with cash taxes paid that equaled or exceeded 5% of total income taxes paid. 96 Table of Contents Deferred Tax Assets and Liabilities Deferred taxes arise because of differences in the book and tax bases of certain assets and liabilities. Significant components of deferred tax assets and liabilities are as follows: (dollars in millions) At December 31, 2025 2024 Deferred tax assets Employee benefits $ 3,366 $ 3,676 Tax loss, credit, and other carry forwards 1,423 1,719 Lease liabilities 4,909 5,138 Other - assets 1,847 1,735 11,545 12,268 Valuation allowances ( 1,161 ) ( 1,399 ) Deferred tax assets 10,384 10,869 Deferred tax liabilities Spectrum and other intangible amortization 30,568 29,302 Depreciation 21,136 20,424 Lease right-of-use assets 4,568 4,822 Other - liabilities 2,694 2,904 Deferred tax liabilities 58,966 57,452 Net deferred tax liability $ 48,582 $ 46,583 Undistributed earnings of certain foreign subsidiaries continue to be indefinitely invested outside the U.S. The majority of Verizon's cash flow is generated from domestic operations and we are not dependent on foreign cash or earnings to meet our funding requirements, nor do we intend to repatriate these undistributed foreign earnings to fund U.S. operations. Furthermore, a portion of these undistributed earnings represents amounts that legally must be kept in reserve in accordance with certain foreign jurisdictional requirements and are unavailable for distribution or repatriation. As a result, we have not provided U.S. deferred taxes on these undistributed earnings because we intend that they will remain indefinitely reinvested outside of the U.S. and, therefore unavailable for use in funding U.S. operations. Determination of the amount of unrecognized deferred taxes related to these undistributed earnings is not practicable. At December 31, 2025, we had net after-tax loss, credit, and other carry forwards for income tax purposes of approximately $ 1.4 billion that relate to federal, state and foreign taxes. Of these net after-tax loss, credit, and other carry forwards, approximately $ 854 million will expire between 2026 and 2045 and approximately $ 570 million may be carried forward indefinitely. During 2025, the valuation allowance decreased by $ 238 million, primarily related to state income taxes. The $ 1.2 billion valuation allowance at December 31, 2025 is primarily related to state and foreign taxes. Unrecognized Tax Benefits A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows: (dollars in millions) 2025 2024 2023 Balance at January 1, $ 2,635 $ 2,705 $ 2,812 Additions based on tax positions related to the current year 92 91 114 Additions for tax positions of prior years 68 203 185 Reductions for tax positions of prior years ( 87 ) ( 229 ) ( 154 ) Settlements ( 5 ) ( 70 ) ( 50 ) Lapses of statutes of limitations ( 56 ) ( 65 ) ( 202 ) Balance at December 31, $ 2,647 $ 2,635 $ 2,705 At December 31, 2025, 2024, and 2023 the total unrecognized tax benefits included $ 2.3 billion, in each respective period, that if recognized, would favorably affect the effective income tax rate. 97 Table of Contents We recognized the following net after-tax expenses (benefit) related to interest and penalties in the provision for income taxes: Years Ended December 31, (dollars in millions) 2025 $ 72 2024 55 2023 86 The after-tax accruals for the payment of interest and penalties in the consolidated balance sheets are as follows: At December 31, (dollars in millions) 2025 $ 751 2024 684 Verizon and/or its subsidiaries file income tax returns in the U.S. federal jurisdiction, and various state, local and foreign jurisdictions. As a large taxpayer, we are under audit by the IRS and multiple state and foreign jurisdictions for various open tax years. The IRS is currently examining the Company’s U.S. income tax returns for tax years 2017 through 2019. Tax controversies are ongoing for tax years as early as 2011 in certain states and as early as 2000 outside the U.S. Note 13. Segment Information Reportable Segments We have two reportable segments that we operate and manage as strategic business units - Consumer and Business. We measure and evaluate our reportable segments based on segment operating income, consistent with the chief operating decision maker's (CODM) assessment of segment performance. The Company's CODM is the Chief Executive Officer. The CODM uses segment operating income to allocate resources (including employees, financial or capital resources) and to assess performance during the monthly and quarterly financial strategic review process. When assessing segment performance and how to allocate resources, the CODM focuses on evaluating whether revenues generated are sufficient to cover variable and fixed costs with an appropriate return on investment. Key decisions considered by the CODM using segment operating income include prioritization and timing of changes to network technologies, allocation of capital expenditures based on the Company's priorities, geographic expansion of wireline and wireless networks, establishment of key financial and operational targets, pricing decisions, branding matters and people management. Our segments and their principal activities consist of the following: Segment Description Verizon Consumer Group Our Consumer segment provides consumer-focused wireless and wireline communications services and products. Our wireless services are provided across one of the most extensive wireless networks in the U.S. under the Verizon family of brands and through wholesale and other arrangements. We also provide FWA broadband through our 5G or 4G LTE networks as an alternative to traditional landline internet access. As of December 31, 2025, our wireline services are provided in nine U.S. states and Washington D.C. over our 100% fiber-optic network through our fiber product portfolio, as well as over a traditional copper-based network. We also provide fixed wireless access (FWA) broadband through our fifth-generation (5G) or fourth-generation (4G) Long-Term Evolution (LTE) networks as an alternative to traditional landline internet access. Verizon Business Group Our Business segment provides wireless and wireline communications services and products, including mobility communication services, FWA and wireline broadband, Internet of Things (IoT) connectivity solutions, advanced communication services, corporate networking solutions, local and long distance voice services, and security and managed network services. We provide these products and services to businesses, public sector customers and wireless and wireline carriers across the U.S. and a subset of these products and services to customers around the world. Our Consumer segment's wireless and wireline products and services are available to our retail customers, as well as resellers that purchase wireless network access from us on a wholesale basis. Our Business segment’s wireless and wireline products and services are organized by the primary customer groups for these offerings: Enterprise and Public Sector, Business Markets and Other, and Wholesale. Corporate and other primarily includes device insurance programs, investments in unconsolidated businesses and development stage businesses that support our strategic initiatives, as well as unallocated corporate expenses, certain pension and other employee benefit related costs and interest and financing expenses. Corporate and other also includes the historical results of divested businesses and other adjustments and gains and losses that are not allocated or used in assessing segment performance due to their nature. 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 included in the CODM’s assessment of segment performance. 98 Table of Contents The following tables provide operating financial information for our two reportable segments: (dollars in millions) 2025 Consumer Business Total Reportable Segments External Operating Revenues Service (1) $ 80,617 $ — $ 80,617 Wireless equipment 21,779 — 21,779 Other (1)(2) 4,116 — 4,116 Enterprise and Public Sector — 13,532 13,532 Business Markets and Other — 13,555 13,555 Wholesale — 1,953 1,953 Intersegment revenues 295 29 324 Total Operating Revenues (3) 106,807 29,069 135,876 Operating Expenses (4) Cost of wireless equipment 23,930 5,046 28,976 Centrally managed network and shared service costs (5) 17,991 9,717 27,708 Depreciation and amortization expense 14,173 4,112 18,285 Other segment expenses (6) 21,085 7,662 28,747 Total Operating Expenses 77,179 26,537 103,716 Operating Income $ 29,628 $ 2,532 $ 32,160 (1) 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. (2) 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. (3) Service and other revenues and Wireless equipment revenues included in our Business segment amounted to approximately $ 25.4 billion and $ 3.7 billion, respectively, for the year ended December 31, 2025. (4) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Intersegment expenses are included within the amounts shown. (5) Centrally managed network and shared service costs include costs for network and leased assets, supply chain and other centralized services that are allocated to our Consumer and Business segments based on proportionate usage of services. (6) Other segment expenses for each reportable segment include certain personnel, digital content, sales-related, overhead, other direct and operating costs. 99 Table of Contents (dollars in millions) 2024 Consumer Business Total Reportable Segments External Operating Revenues Service (1) $ 79,245 $ — $ 79,245 Wireless equipment 19,598 — 19,598 Other (1)(2) 3,848 — 3,848 Enterprise and Public Sector — 14,218 14,218 Business Markets and Other — 13,081 13,081 Wholesale — 2,196 2,196 Intersegment revenues 213 36 249 Total Operating Revenues (3) 102,904 29,531 132,435 Operating Expenses (4) Cost of wireless equipment 21,259 4,841 26,100 Centrally managed network and shared service costs (5) 17,781 10,200 27,981 Depreciation and amortization expense 13,552 4,307 17,859 Other segment expenses (6) 20,828 8,125 28,953 Total Operating Expenses 73,420 27,473 100,893 Operating Income $ 29,484 $ 2,058 $ 31,542 (1) 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. (2) 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. (3) Service and other revenues and Wireless equipment revenues included in our Business segment amounted to approximately $ 25.9 billion and $ 3.6 billion, respectively, for the year ended December 31, 2024. (4) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Intersegment expenses are included within the amounts shown. (5) Centrally managed network and shared service costs include costs for network and leased assets, supply chain and other centralized services that are allocated to our Consumer and Business segments based on proportionate usage of services. (6) Other segment expenses for each reportable segment include certain personnel, digital content, sales-related, overhead, other direct and operating costs. 100 Table of Contents (dollars in millions) 2023 Consumer Business Total Reportable Segments External Operating Revenues Service (1) $ 77,127 $ — $ 77,127 Wireless equipment 20,645 — 20,645 Other (1)(2) 3,645 — 3,645 Enterprise and Public Sector — 15,076 15,076 Business Markets and Other — 12,697 12,697 Wholesale — 2,313 2,313 Intersegment revenues 209 36 245 Total Operating Revenues (3) 101,626 30,122 131,748 Operating Expenses (4) Cost of wireless equipment 21,827 4,959 26,786 Centrally managed network and shared service costs (5) 17,496 10,590 28,086 Depreciation and amortization expense 13,077 4,488 17,565 Other segment expenses (6) 20,215 8,019 28,234 Total Operating Expenses 72,615 28,056 100,671 Operating Income $ 29,011 $ 2,066 $ 31,077 (1) 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. (2) 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. (3) Service and other revenues and Wireless equipment revenues included in our Business segment amounted to approximately $ 26.4 billion and $ 3.7 billion, respectively, for the year ended December 31, 2023. (4) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Intersegment expenses are included within the amounts shown. (5) Centrally managed network and shared service costs include costs for network and leased assets, supply chain and other centralized services that are allocated to our Consumer and Business segments based on proportionate usage of services. (6) Other segment expenses for each reportable segment include certain personnel, digital content, sales-related, overhead, other direct and operating costs. The following table provides Fios revenue for our two reportable segments and includes intersegment activity: (dollars in millions) Years Ended December 31, 2025 2024 2023 Consumer $ 11,678 $ 11,647 $ 11,614 Business 1,244 1,252 1,235 Total Fios revenue $ 12,922 $ 12,899 $ 12,849 The following table provides Wireless service revenue for our two reportable segments and includes intersegment activity: (dollars in millions) Years Ended December 31, 2025 2024 2023 Consumer $ 69,382 $ 67,951 $ 65,820 Business 14,321 14,122 13,714 Total Wireless service revenue $ 83,703 $ 82,073 $ 79,534 Wireless service revenue 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. Reconciliation to Consolidated Financial Information The reconciliation of segment operating revenues and operating income to consolidated operating revenues and operating income below includes the effects of special items that the CODM does not consider in assessing segment performance, primarily because of their nature. 101 Table of Contents A reconciliation of the total reportable segments’ operating revenues to consolidated operating revenues is as follows: (dollars in millions) Years Ended December 31, 2025 2024 2023 Operating Revenues Total reportable segments $ 135,876 $ 132,435 $ 131,748 Corporate and other 2,642 2,609 2,479 Reconciling items: Eliminations ( 327 ) ( 256 ) ( 253 ) Consolidated Operating Revenues $ 138,191 $ 134,788 $ 133,974 A reconciliation of the total reportable segments' operating income to consolidated income before provision for income taxes is as follows: (dollars in millions) Years Ended December 31, 2025 2024 2023 Operating Income Total reportable segments $ 32,160 $ 31,542 $ 31,077 Corporate and other ( 480 ) ( 610 ) ( 643 ) Reconciling items: Severance charges ( 1,715 ) ( 1,733 ) ( 533 ) Other components of net periodic pension and benefit charges (Note 11) ( 32 ) ( 33 ) ( 248 ) Asset and business rationalization ( 583 ) ( 374 ) ( 480 ) Acquisition and integration related charges ( 91 ) — — Legacy legal matter — ( 106 ) — Verizon Business Group goodwill impairment — — ( 5,841 ) Legal settlement — — ( 100 ) Business transformation costs — — ( 176 ) Non-strategic business shutdown — — ( 179 ) Consolidated operating income 29,259 28,686 22,877 Equity in earnings (losses) of unconsolidated businesses — ( 53 ) ( 53 ) Other income (expense), net 107 995 ( 313 ) Interest expense ( 6,694 ) ( 6,649 ) ( 5,524 ) Income Before Provision For Income Taxes $ 22,672 $ 22,979 $ 16,987 No single customer accounted for more than 10% of our total operating revenues during the years ended December 31, 2025, 2024 or 2023. International operating revenues were not significant during the years ended December 31, 2025, 2024 and 2023. As of December 31, 2025 and 2024, international long-lived assets were not significant. The CODM does not review disaggregated assets on a segment basis; therefore, such information is not presented. Depreciation and amortization included in the measure of segment profitability is primarily allocated based on proportional usage, and is included within Total reportable segment operating income. Note 14. Equity and Comprehensive Income (Loss) Equity Common Stock In February 2020, the Board of Directors of the Company authorized a share buyback program to repurchase up to 100 million shares of our common stock. During the years ended December 31, 2025, 2024, and 2023, we did no t repurchase any shares of our common stock under our share buyback program. At December 31, 2025, the maximum number of shares that could be purchased by or on behalf of Verizon under our share buyback program was 100 million. The share buyback program authorized by the Board in February 2020 terminated upon the authorization of the new share repurchase program discussed below. On January 30, 2026, the Board of Directors of the Company authorized a share repurchase program for up to $ 25 billion of our common stock. The program will terminate when the aggregate consideration paid to purchase shares of our common stock reaches $ 25 billion, exclusive of any fees, commissions or other expenses, or a new share repurchase plan superseding the current plan is authorized, whichever is sooner. Under the program, shares may be repurchased in privately negotiated transactions, on the open market, or otherwise, including through plans complying with Rule 10b5-1 or Rule 10b-18 under the Exchange Act. The timing and number of shares purchased under the program, if any, will depend on prevailing stock prices, general economic and market conditions, and other considerations. The share repurchase program does not obligate us to acquire any particular amount of common stock, and the program may be suspended or discontinued at any time at our discretion. 102 Table of Contents Common stock has been used from time to time to satisfy some of the funding requirements of employee and shareholder plans. During the years ended December 31, 2025, 2024, and 2023, we issued 7.5 million, 5.4 million and 4.4 million shares of common stock from treasury stock, which had aggregate values of $ 328 million, $ 238 million and $ 192 million, respectively. Accumulated Other Comprehensive Income (Loss) Comprehensive income consists of net income and other gains and losses affecting equity that, under U.S. GAAP, are excluded from net income. Significant changes in the components of Other comprehensive income (loss), net of provision for income taxes are described below. The changes in the balances of Accumulated other comprehensive income (loss) by component are as follows: (dollars in millions) Foreign currency translation adjustments Unrealized gain (loss) on cash flow hedges Unrealized gain (loss) on fair value hedges Unrealized gain (loss) on marketable securities Defined benefit pension and postretirement plans Total Balance at January 1, 2023 $ ( 698 ) $ ( 1,150 ) $ ( 431 ) $ ( 9 ) $ 423 $ ( 1,865 ) Excluded components recognized in other comprehensive income — — 617 — — 617 Other comprehensive income 62 3 — 5 — 70 Amounts reclassified to net income — 85 ( 81 ) 2 ( 208 ) ( 202 ) Net other comprehensive income (loss) 62 88 536 7 ( 208 ) 485 Balance at December 31, 2023 ( 636 ) ( 1,062 ) 105 ( 2 ) 215 ( 1,380 ) Excluded components recognized in other comprehensive income — — 547 — — 547 Other comprehensive loss ( 97 ) ( 16 ) — ( 3 ) — ( 116 ) Amounts reclassified to net income — 97 ( 63 ) — ( 8 ) 26 Net other comprehensive income (loss) ( 97 ) 81 484 ( 3 ) ( 8 ) 457 Balance at December 31, 2024 ( 733 ) ( 981 ) 589 ( 5 ) 207 ( 923 ) Excluded components recognized in other comprehensive income — — ( 848 ) — — ( 848 ) Other comprehensive income (loss) 126 ( 91 ) — 5 — 40 Amounts reclassified to net income — 83 ( 69 ) — ( 10 ) 4 Net other comprehensive income (loss) 126 ( 8 ) ( 917 ) 5 ( 10 ) ( 804 ) Balance at December 31, 2025 $ ( 607 ) $ ( 989 ) $ ( 328 ) $ — $ 197 $ ( 1,727 ) The amounts presented above in Net other comprehensive income (loss) are net of taxes. The amounts reclassified to net income related to unrealized gain (loss) on cash flow hedges and unrealized gain (loss) on fair value hedges in the table above are included in Other income (expense), net and Interest expense in our consolidated statements of income. See Note 9 for additional information. The amounts reclassified to net income related to unrealized gain (loss) on marketable securities in the table above are included in Other income (expense), net in our consolidated statements of income. The amounts reclassified to net income related to defined benefit pension and postretirement plans in the table above are included in Other income (expense), net in our consolidated statements of income. See Note 11 for additional information. 103 Table of Contents Note 15. Additional Financial Information The following tables provide additional financial information related to our consolidated financial statements: Income Statement Information (dollars in millions) Years Ended December 31, 2025 2024 2023 Depreciation expense $ 15,350 $ 15,112 $ 14,937 Interest costs on debt balances 7,291 7,382 7,123 Net amortization of debt discount 143 230 219 Capitalized interest costs ( 740 ) ( 963 ) ( 1,818 ) Advertising expense 3,832 3,976 3,847 (dollars in millions) Years Ended December 31, 2025 2024 2023 Other income (expense), net Interest income $ 329 $ 336 $ 354 Other components of net periodic benefit (cost) income ( 827 ) 300 ( 938 ) Net debt extinguishment gains 368 385 308 Other, net 237 ( 26 ) ( 37 ) $ 107 $ 995 $ ( 313 ) Balance Sheet Information (dollars in millions) At December 31, 2025 2024 Prepaid expenses and other Prepaid taxes $ 1,844 $ 811 Deferred contract costs 3,315 2,932 Collateral payments related to derivative contracts 1,074 2,118 Restricted cash 297 319 Other prepaid expense and other 1,806 1,793 $ 8,336 $ 7,973 Accounts payable and accrued liabilities Accounts payable $ 12,154 $ 10,425 Accrued expenses 4,534 5,058 Accrued vacation, salaries and wages 4,832 4,436 Interest payable 1,602 1,553 Taxes payable 1,859 1,902 $ 24,981 $ 23,374 Other current liabilities Dividends payable $ 2,937 $ 2,878 Contract liability 7,576 7,492 Other 3,716 3,979 $ 14,229 $ 14,349 As of December 31, 2025 and 2024, Property, plant and equipment includes approximately $ 3.8 billion and $ 3.3 billion, respectively, of additions that have not yet been paid. 104 Table of Contents Cash Flow Information (dollars in millions) Years Ended December 31, 2025 2024 2023 Cash Paid Interest, net of amounts capitalized $ 5,772 $ 5,505 $ 4,384 Income taxes, net of amounts refunded 3,581 5,632 2,343 Other, net Cash Flows from Operating Activities Changes in device payment plan agreement non-current receivables $ ( 2,485 ) $ ( 538 ) $ ( 2,975 ) Net debt extinguishment gains ( 368 ) ( 385 ) ( 308 ) Other, net 597 1,096 ( 427 ) $ ( 2,256 ) $ 173 $ ( 3,710 ) Other, net Cash Flows from Financing Activities Net debt related costs (1) $ ( 97 ) $ ( 259 ) $ ( 73 ) Other, net ( 1,852 ) ( 816 ) ( 1,397 ) $ ( 1,949 ) $ ( 1,075 ) $ ( 1,470 ) (1) These costs include fees paid in connection with exchange and tender offers and settlements of associated instruments. Supplier Finance Program We maintain a voluntary supplier finance program (SFP) with a financial institution which provides certain suppliers the option, at their sole discretion, to participate in the program and sell their receivables due from Verizon to the financial institution on a non-recourse basis. The eligible suppliers negotiate the terms directly with the financial institution and we have no involvement in establishing those terms nor are we a party to these agreements. Our payments associated with the invoices from the suppliers participating in the SFP are made to the financial institution according to the original invoice terms generally at 90 days from the invoice date and for the original invoice amount. No additional payments are exchanged between Verizon and the financial institution related to the SFP. Verizon does not pledge any assets nor provide any guarantees to the financial institution in connection with the SFP. The SFP can be terminated by Verizon or the financial institution with a 60-day notice period. The following table presents the confirmed obligations in the SFP and the related activities: (dollars in millions) Year Ended December 31, 2025 2024 Confirmed obligations outstanding at the beginning of the year $ 772 $ 817 Invoices added during the year 3,531 3,549 Invoices paid during the year ( 3,580 ) ( 3,594 ) Confirmed obligations outstanding at the end of the year $ 723 $ 772 Confirmed obligations outstanding related to suppliers participating in the SFP are recorded within Accounts payable and accrued liabilities in our consolidated balance sheets and the associated payments are reflected in the operating activities section of our consolidated statements of cash flows. As of December 31, 2025 and 2024 , $ 723 million and $ 772 million, respectively, remained as confirmed obligations outstanding related to suppliers participating in the SFP. Note 16. Commitments and Contingencies In the ordinary course of business, Verizon is involved in various litigation and regulatory proceedings at the state and federal level. Where it is determined, in consultation with counsel based on litigation and settlement risks, that a loss is probable and estimable in a given matter, Verizon establishes an accrual. In none of the currently pending matters is the amount of accrual material. An estimate of the reasonably possible loss or range of loss in excess of the amounts already accrued cannot be made at this time due to various factors typical in contested proceedings, including: (1) uncertain damage theories and demands; (2) a less than complete factual record; (3) uncertainty concerning legal theories and their resolution by courts or regulators; and (4) the unpredictable nature of the opposing party and its demands. We continuously monitor these proceedings as they develop and adjust any accrual or disclosure as needed. We do not expect that the ultimate resolution of any pending regulatory or legal matter in future periods will have a material effect on our financial condition, but it could have a material effect on our results of operations for a given reporting period. Verizon is currently involved in approximately 30 federal district court actions alleging that Verizon is infringing various patents. Most of these cases are brought by non-practicing entities and effectively seek only monetary damages; a small number are brought by companies that have sold products and could seek injunctive relief as well. These cases have progressed to various stages and a small number may have gone to trial or may go to trial in the coming 12 months if they are not otherwise resolved. 105 Table of Contents In connection with the execution of agreements for the sales of businesses and investments, Verizon ordinarily provides representations and warranties to the purchasers pertaining to a variety of nonfinancial matters, such as ownership of the securities being sold, as well as indemnity from certain financial losses. From time to time, counterparties may make claims under these provisions, and Verizon will seek to defend against those claims and resolve them in the ordinary course of business. As of December 31, 2025, letters of credit totaling approximately $ 783 million, which were executed in the normal course of business and support several financing arrangements and payment obligations to third parties, were outstanding. As of December 31, 2025, Verizon had 29 renewable energy purchase agreements (REPAs) with third parties. Each of the REPAs is based on the expected operation of a renewable energy-generating facility and has a fixed price term of 12 to 20 years from the commencement of the facility's entry into commercial operation. Twenty-one of the facilities have entered into commercial operation, and the remainder are under development. The REPAs generally are expected to be financially settled based on the prevailing market price as energy is generated by the facilities. We have various unconditional purchase obligations, which represent agreements to purchase goods or services that are enforceable and legally binding. We estimate that these unconditional purchase obligations, for contracts with terms in excess of one year, total $ 15.0 billion, and primarily represent commitments to purchase content, network equipment, software and services, marketing services and other items which will be used or sold in the ordinary course of business from a variety of suppliers. Of this total amount, $ 5.8 billion is attributable to 2026, $ 5.1 billion is attributable to 2027, $ 3.1 billion is attributable to 2028, $ 528 million is attributable to 2029, $ 282 million is attributable to 2030 and $ 207 million is attributable to years thereafter. These amounts do not represent our entire anticipated purchases in the future, but represent only those items that are the subject of contractual obligations. Our commitments are generally determined based on the noncancelable quantities to which we are contractually obliged. Since the commitments to purchase programming services from television networks and broadcast stations have no minimum volume requirement, we estimated our obligation based on number of subscribers at December 31, 2025, and applicable rates stipulated in the contracts in effect at that time. We also purchase products and services as needed with no firm commitment. Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None.