Verizon (VZ) began 2025 with solid financial and operational momentum, reporting a strong first quarter marked by steady revenue growth, expanding profitability, and continued strategic execution. Earnings per share (EPS) rose to $1.15 from $1.09 a year ago, with adjusted EPS reaching $1.19, up from $1.15. Total operating revenue climbed 1.5% year-over-year to $33.5 billion, while net income increased to $5.0 billion, compared to $4.7 billion in Q1 2024. Verizon also reported a 4.1% rise in adjusted EBITDA to $12.6 billion and a notable uptick in free cash flow, which rose to $3.6 billion from $2.7 billion. These results came alongside a meaningful reduction in total unsecured debt, now at $117.3 billion, down from $128.4 billion a year prior.

The Mobility segment continued to be a cornerstone of performance, with total wireless service revenue increasing 2.7% to $20.8 billion, described by management as industry-leading. The consumer wireless segment contributed $17.2 billion, also up 2.6%, while ARPA rose 3.6% to $146.46, indicating higher revenue per account. Although Verizon recorded 289,000 postpaid phone net losses—an increase from 114,000 last year—the company saw a turnaround in core prepaid net additions, posting 137,000 gains versus prior losses. Consumer segment profitability remained healthy, with operating income up 0.7% to $7.4 billion and EBITDA rising 2.7% to $11.0 billion, maintaining strong margins of 29.0% and 42.8%, respectively.

Broadband saw continued traction, with 339,000 total net additions, including 308,000 fixed wireless access (FWA) adds, pushing FWA subscribers past 4.8 million. Fios internet added 45,000 subscribers, slightly down year-over-year, but total broadband connections surpassed 12.6 million, a 13.7% increase from Q1 2024. Consumer Fios revenue held steady at $2.9 billion.

In the Business segment, total revenue dipped 1.2% to $7.3 billion, but profitability improved markedly. Operating income jumped 66.4% to $664 million, with margin expansion to 9.1%, while EBITDA rose 10.3% to $1.7 billion, supported by strength in wireless service revenue (+2.8%) and continued FWA adoption. The segment added 94,000 retail postpaid lines, including 67,000 postpaid phones, and 109,000 fixed wireless connections.

CEO Hans Vestberg reaffirmed confidence in Verizon’s 2025 outlook, pointing to a “customer-first strategy” supported by initiatives like price lock guarantees, network investments in C-band and Fios, and an expanding role in AI infrastructure via the AI Connect program. The company is also pushing forward on its cost transformation agenda, targeting improved margins and cash flow.

Looking ahead, Verizon reiterated its full-year guidance, projecting 2.0% to 2.8% wireless service revenue growth, 2.0% to 3.5% adjusted EBITDA growth, and free cash flow between $17.5 and $18.5 billion. With a strong start to the year, Verizon appears well-positioned to meet its financial targets while continuing to invest in strategic growth areas across connectivity, broadband, and AI.