TBB

• Achieved or exceeded all consolidated full-year financial guidance in 2025 driven by 5G and fiber subscriber growth. - Made progress on capital allocation, achieved net debt to adjusted EBITDA in 2.5 times range, commenced share repurchase program, returned over $12 billion to shareholders. - Agreed to acquire spectrum licenses from EchoStar and fiber assets from Lumen, expected to close early 2026. - Plan to accelerate fiber expansion, with annual fiber construction pace ramping from 3 million in 2025 to 4 million by end of 2026, and expand fiber reach by ~5 million locations annually through end of decade. - Fiber convergence rate climbed 200 basis points year over year to 42% in fourth quarter. - Converged customers are most valuable with lower churn, etc. - Achieved over $1 billion of cost savings in 2025 and plan to accelerate efficiency gains using AI, digital transactions, etc. - Planning new segment reporting starting first quarter 2026 to align with transformation.

• Over next three years, expect accelerated growth in adjusted EBITDA, double-digit adjusted EPS growth, strong free cash flow. - Expect to return $45 billion plus to shareholders over next three years. - 2026 expected adjusted EBITDA growth in 3% - 4% range, improving to 5% or better in 2028. - 2026 adjusted EPS expected in $2.25 - $2.35 range with double-digit three-year CAGR through 2028. - 2026 free cash flows expected $18 billion plus, growing by $1 billion plus in 2027 and ~$2 billion in 2028. - Expect reported growth in advanced home internet revenues in 2026 to exceed 30% due to Lumen acquisition. - Total business service revenues within advanced connectivity segment expected to grow at low single-digit CAGR through 2028. - Intend to maintain cost transformation initiatives, expect $4 billion annual cost savings by 2028.

In 2025, AT&T achieved over 1.5 million postpaid phone net adds for the fifth consecutive year and over 1 million AT&T Inc. Fiber net adds for the eighth consecutive year. Accelerated growth of AT&T Inc. Internet Air with 875,000 net adds. Advanced connectivity drove about 90% of revenues and over 95% of adjusted EBITDA on a recast basis in 2025. Legacy segment represents results from domestic services over copper-based network with goal to discontinue large majority of copper-based services by 2029.

Q: On fiber convergence rate, where do you expect it to get to over time, and about Lumen territory and consumer wireline revenue growth slowdown.

A: John expects convergence rate to continue to improve, expects to drive to 50%, sees potential for further improvement. On Lumen territory, optimistic about performance, expects Lumen to be de-rated a bit in terminal penetration but could have upside. On consumer wireline revenue growth slowdown, due to pricing adjustments, strategic management of customer base.

Q: On long-term outlook, spectrum investments and foldable iPhone.

A: John says has reserved capacity for strategic options, views spectrum as important, not overly concerned about foldable iPhone being broadly applicable. Jeff says AT&T will remain focused on acquiring quality customers with right value proposition.

Q: On broadband, fiber ARPU and FWA growth.

A: Peter asked about fiber ARPU and FWA growth. John said AT&T has more degrees of freedom in managing ARPUs, DSL base going away by design, FWA sales expected to hold up.

Q: On wireless, macro factors and competitor promotions.

A: Jeff said wireless industry is mature, AT&T sees opportunity in underpenetrated segments with convergence plays.

Q: On Lumen JV and fiber build shape.

A: Pascal said expect cash inflows from Lumen JV. John said there will be seasonality in broadband, Lumen transaction ramp will take time, distribution changes planned.

Q: On EBITDA growth inflection and mobility service margins.

A: Pascal said EBITDA growth inflection due to Lumen assets integration and legacy decline improvement. Pascal said mobility service margins strong due to managing costs not geared towards customer growth.

Q: On bad debt and cost cutting.

A: Sam asked about bad debt and cost cutting. Sam said bad debt increase due to higher equipment sales and service revenues. Pascal said expect over $4 billion cost savings over next three years.

Q: On national advertising and handset amortization.

A: John said spend a lot on national advertising to build awareness, will do targeted rifle shot below national level. Pascal said expect handset amortization headwinds to be about same level as year, basis of competition different, confident in managing ARPU dynamic