Verizon Communications Inc. Q3 FY2025 earnings call

Dan Schulman discusses shifting to customer-first focus, redefining strategy. Tony Skiadas covers third quarter financials: consolidated revenue $33.8B, up 1.5%; adjusted EBITDA $12.8B, up 2.3%; adjusted EPS $1.21, up 1.7%; free cash flow $7B in Q3; net unsecured debt reduced; on track to close Frontier deal in Q1 2026. Dan outlines priorities: customer-centric growth, cost transformation, capital efficiency, convergence with Frontier acquisition

Consumer Mobility: Postpaid phone gross adds up 8.4% but net losses due to churn; over 18% of consumer postpaid phone base took converged offering; 16% year-over-year increase in consumer upgrades. Core Prepaid: 47,000 net adds, fifth consecutive quarter of positive subscriber growth. Verizon Business: 51,000 phone net adds, public sector disconnects offset by small/medium and large enterprise demand. Broadband: 306,000 net adds, broadband base over 13.2 million; Fios internet 61,000 net adds; Fixed Wireless Access 261,000 net adds, annualized revenue over $3B

Remain on track to deliver full year financial guidance; expect free cash flow growth in 2026; on track to close Frontier deal in Q1 2026; net unsecured debt to consolidated adjusted EBITDA ratio at 2.2x, inside target leverage ahead of schedule; remain committed to long-term net unsecured leverage target range of 2.0 to 2.25x

Q: John Hodulik asks about vision and turning consumer volumes, A: Dan Schulman talks about shifting to customer-centric, growing through retention, driving shareholder returns.

Q: Ben Swinburne asks about price reliance and leverage, A: Dan and Tony discuss thoughtful pricing, financial discipline, and balance sheet flexibility.

Q: Michael Ng asks about parallels with PayPal and Perks/MIPlan, A: Dan compares to PayPal's customer champion approach, talks about value prop development.

Q: Mike Rollins asks about convergence and portfolio optimization, A: Dan discusses convergence opportunities, portfolio rationalization.

Q: Sebastiano Petti asks about free cash flow and consumer accounts, A: Tony talks about free cash flow growth, Dan discusses customer-focused approach to account growth.

Q: Michael Funk asks about churn reduction and AI, A: Dan talks about addressing churn drivers, AI's role in customer experience.

Q: Peter Supino asks about costs and fiber, A: Tony and Dan discuss fiber expansion plans and cost transformation