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By Brian Nelson, CFA
Verizon Communications (VZ) recently reported second quarter results that came in better than expectations. Wireless service revenue in the second quarter was $20.9 billion, up 2.2% year-over-year, while total operating revenue of $34.5 billion was up 5.2% year-over-year. Consolidated adjusted EBITDA was $12.8 billion in the second quarter versus $12.3 billion in the second quarter of 2024. Adjusted earnings per share, excluding special items, came in at $1.22 versus $1.15 in the prior-year quarter.
Management had the following to say about the results:
Verizon’s strong second-quarter financial performance reflects our high-quality, industry-leading customer base, our multiple growth paths, the success of our disciplined, segmented approach, and the inherent strength of our company. Our unmatched and award-winning network combined with our financial strength enables us to continually innovate and enhance our products and services, empowering how people live, work and play. With momentum and a clear path forward, we are raising our full-year guidance for adjusted EBITDA, adjusted EPS and free cash flow as we move into the second half of the year and advance toward closing the Frontier acquisition.
Verizon’s cash flow from operations totaled $16.8 billion in the first half of 2025, up from $16.6 billion in the same period a year ago. Free cash flow was $8.8 billion in the first half of 2025, up from $8.5 billion in the first half of 2024. Verizon’s net unsecured debt at the end of the second quarter was $116 billion, roughly 2.3 times consolidated adjusted EBITDA. For 2025, management is targeting adjusted EBITDA growth of 2.5%-3.5% and adjusted earnings per share growth of 1%-3%. Cash flow from operations is expected to be between $37-$39 billion on the year, with free cash flow of $19.5-$20.5 billion. We like Verizon but can’t get familiar with its massive debt load. Shares yield 6.3% at the time of this writing.
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Brian Nelson owns shares in SPY, SCHG, QQQ, QQQM, DIA, VOT, RSP, and IWM. Valuentum owns SPY, SCHG, QQQ, QQQM, VOO, and DIA. Brian Nelson’s household owns shares in HON, DIS, HAS, NKE, DIA, RSP, SCHG, QQQ, QQQM, and VOO. Some of the other securities written about in this article may be included in Valuentum’s simulated newsletter portfolios. Contact Valuentum for more information about its editorial policies.
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