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1、Financial and OperatingInformationAs of March 31,2025 Table of ContentsCondensed Consolidated Statements of Income 3 Condensed Consolidated Balance Sheets 4 Consolidated-Selected Financial and Operating Statistics 5 Condensed Consolidated Statements of Cash Flows 6 Consumer Selected Financial Result

2、s 7 Consumer Selected Operating Statistics 8 Business Selected Financial Results 9 Business Selected Operating Statistics 10 Supplemental Information 11 Non-GAAP Reconciliations and Notes 12 Verizon Communications Inc.Condensed Consolidated Statements of Income (dollars in millions,except per share

3、amounts)202320242025UnauditedFull Year1Q2Q3Q4QFull Year1QYear to dateOperating RevenuesService revenues and other$109,652$27,620$27,798$27,987$28,166$111,571$28,087$28,087 Wireless equipment revenues 24,322 5,361 4,998 5,343 7,515 23,217 5,398 5,398 Total Operating Revenues 133,974 32,981 32,796 33,

4、330 35,681 134,788 33,485 33,485 Operating ExpensesCost of services 28,100 6,967 6,904 7,193 6,933 27,997 6,950 6,950 Cost of wireless equipment 26,787 5,905 5,567 6,047 8,581 26,100 6,106 6,106 Selling,general and administrative expense 32,745 8,143 8,024 9,706 8,240 34,113 7,874 7,874 Depreciation

5、 and amortization expense 17,624 4,445 4,483 4,458 4,506 17,892 4,577 4,577 Verizon Business Group goodwill impairment 5,841 Total Operating Expenses 111,097 25,460 24,978 27,404 28,260 106,102 25,507 25,507 Operating Income 22,877 7,521 7,818 5,926 7,421 28,686 7,978 7,978 Equity in earnings(losses

6、)of unconsolidated businesses(53)(9)(14)(24)(6)(53)6 6 Other income(expense),net(313)198 (72)72 797 995 121 121 Interest expense(5,524)(1,635)(1,698)(1,672)(1,644)(6,649)(1,632)(1,632)Income Before Provision For Income Taxes 16,987 6,075 6,034 4,302 6,568 22,979 6,473 6,473 Provision for income taxe

7、s(4,892)(1,353)(1,332)(891)(1,454)(5,030)(1,490)(1,490)Net Income$12,095$4,722$4,702$3,411$5,114$17,949$4,983$4,983 Net income attributable to noncontrolling interests$481$120$109$105$109$443$104$104 Net income attributable to Verizon 11,614 4,602 4,593 3,306 5,005 17,506 4,879 4,879 Net Income$12,0

8、95$4,722$4,702$3,411$5,114$17,949$4,983$4,983 Basic Earnings Per Common ShareNet income attributable to Verizon$2.76$1.09$1.09$0.78$1.19$4.15$1.16$1.16 Weighted-average shares outstanding(in millions)4,211 4,215 4,215 4,220 4,222 4,218 4,222 4,222 Diluted Earnings Per Common Share(1)Net income attri

9、butable to Verizon$2.75$1.09$1.09$0.78$1.18$4.14$1.15$1.15 Weighted-average shares outstanding(in millions)4,215 4,219 4,221 4,225 4,227 4,223 4,226 4,226 Footnotes:(1)Where applicable,Diluted Earnings per Common Share includes the dilutive effect of shares issuable under our stock-based compensatio

10、n plans,which represents the only potential dilution.EPS may not add due to rounding.Verizon Communications Inc.3Condensed Consolidated Balance Sheets (dollars in millions)Unaudited12/31/233/31/246/30/249/30/2412/31/243/31/25AssetsCurrent assetsCash and cash equivalents$2,065$2,365$2,432$4,987$4,194

11、$2,257 Accounts receivable 26,102 26,380 26,702 27,040 27,261 27,033 Less Allowance for credit losses 1,017 1,061 1,095 1,086 1,152 1,144 Accounts receivable,net 25,085 25,319 25,607 25,954 26,109 25,889 Inventories 2,057 2,076 1,841 2,523 2,247 2,197 Prepaid expenses and other 7,607 8,197 8,176 7,1

12、77 7,973 7,010 Total current assets 36,814 37,957 38,056 40,641 40,523 37,353 Property,plant and equipment 320,108 322,266 324,978 327,555 331,406 331,888 Less Accumulated depreciation 211,798 214,403 217,088 220,027 222,884 223,965 Property,plant and equipment,net 108,310 107,863 107,890 107,528 10

13、8,522 107,923 Investments in unconsolidated businesses 953 941 908 867 842 820 Wireless licenses 155,667 156,111 156,291 156,481 156,613 156,726 Goodwill 22,843 22,842 22,842 22,844 22,841 22,842 Other intangible assets,net 11,057 10,835 10,680 10,674 11,129 10,847 Operating lease right-of-use asset

14、s 24,726 24,351 24,064 23,613 24,472 24,175 Other assets 19,885 19,258 18,415 18,516 19,769 19,678 Total assets$380,255$380,158$379,146$381,164$384,711$380,364 Liabilities and EquityCurrent liabilitiesDebt maturing within one year$12,973$15,594$23,255$21,763$22,633$22,629 Accounts payable and accrue

15、d liabilities 23,453 20,139 19,727 22,222 23,374 19,413 Current operating lease liabilities 4,266 4,282 4,247 4,312 4,415 4,686 Other current liabilities 12,531 13,616 13,577 13,519 14,349 14,338 Total current liabilities 53,223 53,631 60,806 61,816 64,771 61,066 Long-term debt 137,701 136,104 126,0

16、22 128,878 121,381 121,020 Employee benefit obligations 13,189 12,805 12,812 12,744 11,997 11,793 Deferred income taxes 45,781 45,980 46,082 45,865 46,732 46,643 Non-current operating lease liabilities 20,002 19,654 19,456 19,247 19,928 19,379 Other liabilities 16,560 16,258 16,429 14,946 19,327 18,

17、426 Total long-term liabilities 233,233 230,801 220,801 221,680 219,365 217,261 EquityCommon stock 429 429 429 429 429 429 Additional paid in capital 13,631 13,571 13,539 13,479 13,466 13,415 Retained earnings 82,915 84,714 86,504 86,958 89,110 91,128 Accumulated other comprehensive loss(1,380)(1,19

18、9)(1,287)(1,665)(923)(1,489)Common stock in treasury,at cost(3,821)(3,602)(3,590)(3,585)(3,583)(3,295)Deferred compensation employee stock ownership plans and other 656 421 577 710 738 534 Noncontrolling interests 1,369 1,392 1,367 1,342 1,338 1,315 Total equity 93,799 95,726 97,539 97,668 100,575 1

19、02,037 Total liabilities and equity$380,255$380,158$379,146$381,164$384,711$380,364 Verizon Communications Inc.4Consolidated-Selected Financial and Operating Statistics (dollars in millions)Unaudited12/31/233/31/246/30/249/30/2412/31/243/31/25Total debt$150,674$151,698$149,277$150,641$144,014$143,64

20、9 Unsecured debt$128,491$128,408$125,262$126,369$117,876$117,313 Net unsecured debt(1)$126,426$126,043$122,830$121,382$113,682$115,056 Unsecured debt/Consolidated Net Income(LTM)10.9x 10.7x 12.3x 6.6x 6.4x Net unsecured debt/Consolidated Adjusted EBITDA(1)(2)2.6x 2.5x 2.5x 2.3x 2.3x Common shares ou

21、tstanding end of period(in millions)4,204 4,209 4,210 4,210 4,210 4,216 Total employees(000)(3)105.4 104.4 103.9 101.2 99.6 99.4 Quarterly cash dividends declared per common share$0.6650$0.6650$0.6650$0.6775$0.6775$0.6775 Footnotes:(1)Non-GAAP financial measure.(2)Consolidated Adjusted EBITDA exclud

22、es the effects of non-operational items and special items.(3)Number of employees on a full-time equivalent basis.Verizon Communications Inc.5Condensed Consolidated Statements of Cash Flows (dollars in millions)12 Mos.Ended3 Mos.Ended6 Mos.Ended9 Mos.Ended12 Mos.Ended3 Mos.EndedUnaudited12/31/233/31/

23、246/30/249/30/2412/31/243/31/25Cash Flows from Operating ActivitiesNet Income$12,095$4,722$9,424$12,835$17,949$4,983 Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization expense 17,624 4,445 8,928 13,386 17,892 4,577 Employee retirement benef

24、its 1,206 62 354 469 (52)143 Deferred income taxes 2,388 141 282 247 815 132 Provision for expected credit losses 2,214 567 1,119 1,623 2,338 587 Equity in losses of unconsolidated businesses,inclusive of dividends received 84 14 33 62 75 20 Verizon Business Group goodwill impairment 5,841 Changes i

25、n current assets and liabilities,net of effects from acquisition/disposition of businesses(267)(2,531)(3,572)(2,609)(2,278)(2,618)Other,net(3,710)(336)1 467 173 (42)Net cash provided by operating activities 37,475 7,084 16,569 26,480 36,912 7,782 Cash Flows from Investing ActivitiesCapital expenditu

26、res(including capitalized software)(18,767)(4,376)(8,071)(12,019)(17,090)(4,145)Cash received(paid)related to acquisitions of businesses,net of cash acquired(30)Acquisitions of wireless licenses(5,796)(449)(613)(768)(900)(122)Other,net 1,161 (420)(426)(326)(684)515 Net cash used in investing activit

27、ies(23,432)(5,245)(9,110)(13,113)(18,674)(3,752)Cash Flows from Financing ActivitiesProceeds from long-term borrowings 2,018 3,110 3,122 3,142 3,146 Proceeds from asset-backed long-term borrowings 6,594 2,510 5,828 8,229 12,422 2,781 Repayments of long-term borrowings and finance lease obligations(6

28、,181)(4,508)(5,719)(6,623)(11,854)(2,446)Repayments of asset-backed long-term borrowings(4,443)(1,408)(4,008)(6,158)(8,490)(2,589)Dividends paid(11,025)(2,796)(5,598)(8,399)(11,249)(2,856)Other,net(1,620)1,664 (687)(1,668)(1,075)(783)Net cash used in financing activities(14,657)(1,428)(7,062)(11,477

29、)(17,100)(5,893)Increase(decrease)in cash,cash equivalents and restricted cash(614)411 397 1,890 1,138 (1,863)Cash,cash equivalents and restricted cash,beginning of period 4,111 3,497 3,497 3,497 3,497 4,635 Cash,cash equivalents and restricted cash,end of period$3,497$3,908$3,894$5,387$4,635$2,772

30、Footnote:Certain amounts have been reclassified to conform to the current period presentation.Verizon Communications Inc.6Consumer-Selected Financial Results (dollars in millions)20242025Unaudited1Q2Q3Q4Q1QOperating RevenuesService(1)$19,624$19,851$19,919$20,064$20,066 Wireless equipment 4,490 4,143

31、 4,478 6,487 4,532 Other(1)943 933 963 1,009 1,020 Total Operating Revenues 25,057 24,927 25,360 27,560 25,618 Operating ExpensesCost of services 4,537 4,450 4,567 4,518 4,574 Cost of wireless equipment 4,750 4,432 4,850 7,227 4,912 Selling,general and administrative expense 5,089 5,047 4,928 5,473

32、5,165 Depreciation and amortization expense 3,309 3,394 3,411 3,438 3,543 Total Operating Expenses 17,685 17,323 17,756 20,656 18,194 Operating Income$7,372$7,604$7,604$6,904$7,424 Operating Income Margin 29.4%30.5%30.0%25.1%29.0%Segment EBITDA(2)$10,681$10,998$11,015$10,342$10,967 Segment EBITDA Ma

33、rgin(2)42.6%44.1%43.4%37.5%42.8%Footnotes:(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.Where applicable,historical results have been recast to conform to the current p

34、eriod presentation.(2)Non-GAAP financial measure.The segment financial results and metrics above exclude the effects of special items(other than the effects of acquisition-related intangible asset amortization),which the Companys chief operating decision maker does not consider in assessing segment

35、performance.Certain intersegment transactions with corporate entities have not been eliminated.Verizon Communications Inc.7Consumer-Selected Operating Statistics 20242025Unaudited1Q2Q3Q4Q1QConnections(000):Wireless retail 114,809 114,236 114,211 115,256 115,084 Wireless retail postpaid 93,905 93,960

36、 94,005 95,118 94,854 Wireless retail postpaid phone 74,523 74,407 74,412 74,772 74,406 Wireless retail core prepaid(1)18,717 18,702 18,780 18,843 18,977 Fios video 2,883 2,818 2,744 2,684 2,626 Fios internet 7,025 7,049 7,088 7,135 7,176 Fixed wireless access(FWA)broadband 2,070 2,292 2,498 2,714 2

37、,914 Wireline broadband 7,227 7,238 7,264 7,300 7,330 Total broadband 9,297 9,530 9,762 10,014 10,244 Gross Additions(000):Wireless retail postpaid 2,983 2,901 3,088 4,310 2,970 Wireless retail postpaid phone 1,674 1,647 1,860 2,324 1,658 Net Additions Detail(000):Wireless retail(141)(552)(1)1,064 (

38、159)Wireless retail postpaid 75 72 68 1,130 (253)Wireless retail postpaid phone(194)(109)18 367 (356)Wireless retail core prepaid(1)(131)(12)80 65 137 Fios video (68)(65)(74)(60)(58)Fios internet 49 24 39 47 41 FWA broadband 203 218 209 216 199 Wireline broadband 36 13 26 35 31 Total broadband 239 2

39、31 235 251 230 Churn Rate:Wireless retail 1.62%1.63%1.61%1.64%1.57%Wireless retail postpaid 1.03%1.00%1.07%1.12%1.13%Wireless retail postpaid phone 0.83%0.79%0.83%0.88%0.90%Wireless retail core prepaid(1)3.61%3.59%3.72%3.78%3.47%Revenue Statistics(in millions):Wireless service revenue(2)$16,760$16,9

40、85$17,036$17,170$17,199 Fios revenue$2,896$2,896$2,916$2,939$2,896 Other Wireless Statistics:Wireless retail postpaid ARPA(2)(3)$141.31$144.15$144.94$145.61$146.46 Wireless retail postpaid upgrade rate 3.1%2.9%3.2%4.5%3.0%Wireless retail postpaid accounts(000)(4)32,876 32,769 32,719 32,794 32,620 Wi

41、reless retail postpaid connections per account(4)2.86 2.87 2.87 2.90 2.91 Wireless retail core prepaid ARPU(5)$32.26$32.48$32.41$32.34$31.92 Footnotes:(1)Represents total prepaid results excluding our SafeLink brand.(2)Reflects the reclassification of recurring device protection and insurance relate

42、d plan revenues from Other revenue into Wireless service revenue in the first quarter of 2025.Where applicable,historical results have been recast to conform to the current period presentation.(3)Wireless retail postpaid ARPA-average service revenue per account from retail postpaid accounts.(4)Stati

43、stics presented as of end of period.(5)Wireless retail core prepaid ARPU-average service revenue per unit from retail prepaid connections excluding our SafeLink brand.Where applicable,the operating results reflect certain adjustments,including those related to the reclassification of connections ass

44、ociated with Verizons second number offering,migration activity among different types of devices and plans,customer profile changes,and adjustments in connection with mergers,acquisitions and divestitures.Where applicable,historical results have been recast to conform to the current period presentat

45、ion.Certain intersegment transactions with corporate entities have not been eliminated.Verizon Communications Inc.8Business-Selected Financial Results (dollars in millions)20242025Unaudited1Q2Q3Q4Q1QOperating RevenuesEnterprise and Public Sector$3,587$3,545$3,538$3,548$3,457 Business Markets and Oth

46、er 3,195 3,203 3,263 3,438 3,314 Wholesale 594 552 550 518 515 Total Operating Revenues 7,376 7,300 7,351 7,504 7,286 Operating ExpensesCost of services 2,432 2,455 2,440 2,415 2,376 Cost of wireless equipment 1,155 1,135 1,197 1,354 1,194 Selling,general and administrative expense 2,262 2,132 2,109

47、 2,080 2,032 Depreciation and amortization expense 1,128 1,078 1,040 1,061 1,020 Total Operating Expenses 6,977 6,800 6,786 6,910 6,622 Operating Income$399$500$565$594$664 Operating Income Margin 5.4%6.8%7.7%7.9%9.1%Segment EBITDA(1)$1,527$1,578$1,605$1,655$1,684 Segment EBITDA Margin(1)20.7%21.6%2

48、1.8%22.1%23.1%Footnotes:(1)Non-GAAP financial measure.The segment financial results and metrics above exclude the effects of special items(other than the effects of acquisition-related intangible asset amortization),which the Companys chief operating decision maker does not consider in assessing seg

49、ment performance.Certain intersegment transactions with corporate entities have not been eliminated.Verizon Communications Inc.9Business-Selected Operating Statistics 20242025Unaudited1Q2Q3Q4Q1QConnections(000):Wireless retail postpaid 29,947 30,230 30,532 30,819 30,890 Wireless retail postpaid phon

50、e 18,295 18,445 18,603 18,745 18,808 Fios video 59 58 56 54 52 Fios internet 389 393 397 401 405 FWA broadband 1,358 1,523 1,698 1,854 1,931 Wireline broadband 458 458 459 459 459 Total broadband 1,816 1,981 2,157 2,313 2,390 Gross Additions(000):Wireless retail postpaid 1,531 1,579 1,601 1,617 1,50

51、4 Wireless retail postpaid phone 694 737 770 740 715 Net Additions Detail(000):Wireless retail postpaid 178 268 281 283 94 Wireless retail postpaid phone 80 135 149 137 67 Fios video(2)(1)(2)(2)(2)Fios internet 4 4 4 4 4 FWA broadband 151 160 154 157 109 Wireline broadband(1)Total broadband 150 160

52、154 157 109 Churn Rate:Wireless retail postpaid 1.51%1.45%1.45%1.45%1.52%Wireless retail postpaid phone 1.13%1.09%1.12%1.08%1.15%Revenue Statistics(in millions):Wireless service revenue(1)$3,467$3,521$3,562$3,572$3,565 Fios revenue$311$313$314$314$310 Other Operating Statistics:Wireless retail postp

53、aid upgrade rate 2.5%2.4%2.5%2.8%2.2%Footnotes:(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.Where applicable,historical results have been recast to conform to the curr

54、ent period presentation.Where applicable,the operating results reflect certain adjustments,including those related to the reclassification of connections associated with Verizons second number offering,migration activity among different types of devices and plans,customer profile changes,and adjustm

55、ents in connection with mergers,acquisitions and divestitures.Where applicable,historical results have been recast to conform to the current period presentation.Certain intersegment transactions with corporate entities have not been eliminated.Verizon Communications Inc.10Supplemental Information-To

56、tal Wireless Operating and Financial Statistics The following supplemental schedule contains certain financial and operating metrics which reflect an aggregation of our Consumer and Business segments wireless results.20242025Unaudited1Q2Q3Q4Q1QConnections(000)Retail 144,756 144,466 144,743 146,075 1

57、45,974 Retail postpaid 123,852 124,190 124,537 125,937 125,744 Retail postpaid phone 92,818 92,852 93,015 93,517 93,214 Retail core prepaid(1)18,717 18,702 18,780 18,843 18,977 Net Additions Detail(000)Retail 37 (284)280 1,347 (65)Retail postpaid 253 340 349 1,413 (159)Retail postpaid phone(114)26 1

58、67 504 (289)Retail core prepaid(1)(131)(12)80 65 137 Account StatisticsRetail postpaid accounts(000)(2)34,839 34,766 34,746 34,849 34,696 Retail postpaid connections per account(2)3.55 3.57 3.58 3.61 3.62 Retail postpaid ARPA(3)(6)$164.27$167.38$168.44$168.96$169.81 Retail core prepaid ARPU(4)$32.26

59、$32.48$32.41$32.34$31.92 Churn DetailRetail 1.60%1.59%1.57%1.60%1.56%Retail postpaid 1.15%1.11%1.16%1.20%1.23%Retail postpaid phone 0.89%0.85%0.88%0.92%0.95%Retail core prepaid(1)3.61%3.59%3.72%3.78%3.47%Retail Postpaid Connection Statistics Upgrade rate 3.0%2.8%3.0%4.1%2.8%Revenue Statistics(in mil

60、lions)(5)FWA revenue$452$514$562$611$668 Wireless service(6)$20,227$20,506$20,598$20,742$20,764 Wireless equipment 5,361 4,998 5,343 7,515 5,398 Wireless other(6)871 867 907 953 1,014 Total Wireless$26,459$26,371$26,848$29,210$27,176 Footnotes:(1)Represents total prepaid results excluding our SafeLi

61、nk brand.(2)Statistics presented as of end of period.(3)Wireless retail postpaid ARPA-average service revenue per account from retail postpaid accounts.(4)Wireless retail core prepaid ARPU-average service revenue per unit from retail prepaid connections excluding our SafeLink brand.(5)Intersegment t

62、ransactions between Consumer or Business segment with corporate entities have not been eliminated.(6)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.Where applicable,histori

63、cal results have been recast to conform to the current period presentation.Where applicable,the operating results reflect certain adjustments,including those related to the reclassification of connections associated with Verizons second number offering,migration activity among different types of dev

64、ices and plans,customer profile changes,and adjustments in connection with mergers,acquisitions and divestitures.Where applicable,historical results have been recast to conform to the current period presentation.Verizon Communications Inc.11Non-GAAP MeasuresVerizons Financial and Operating Informati

65、on includes financial information prepared in conformity with generally accepted accounting principles in the United States(GAAP)as well as non-GAAP financial information.It is managements intent to provide non-GAAP financial information to enhance the understanding of Verizons GAAP financial inform

66、ation and it should be considered by the reader in addition to,but not instead of,the financial statements prepared in accordance with GAAP.Each non-GAAP financial measure is presented along with the corresponding GAAP measure so as not to imply that more emphasis should be placed on the non-GAAP me

67、asure.We believe that providing these non-GAAP measures in addition to the GAAP measures allows management,investors and other users of our financial information to more fully and accurately assess both consolidated and segment performance.The non-GAAP financial information presented may be determin

68、ed or calculated differently by other companies and may not be directly comparable to that of other companies.EBITDA and EBITDA Margin Related Non-GAAP Measures Consolidated earnings before interest,taxes,depreciation and amortization(EBITDA),Segment EBITDA and Segment EBITDA Margin are non-GAAP fin

69、ancial measures that we believe are useful to management,investors and other users of our financial information as they are widely accepted financial measures used in evaluating the profitability of a company and its operating performance in relation to its competitors.Consolidated EBITDA is calcula

70、ted by adding back interest,taxes and depreciation and amortization expense to net income.Segment EBITDA is calculated by adding back segment depreciation and amortization expense to segment operating income.Segment EBITDA Margin is calculated by dividing Segment EBITDA by total segment operating re

71、venues.Consolidated Adjusted EBITDA,Consolidated Adjusted EBITDA Margin and Consolidated Adjusted EBITDA Growth ForecastConsolidated Adjusted EBITDA,Consolidated Adjusted EBITDA Margin and Consolidated Adjusted EBITDA Growth Forecast are non-GAAP financial measures that we believe provide relevant a

72、nd useful information to management,investors and other users of our financial information in evaluating the effectiveness of our operations and underlying business trends.We believe that Consolidated Adjusted EBITDA,Consolidated Adjusted EBITDA Margin and Consolidated Adjusted EBITDA Growth Forecas

73、t are used by investors to compare a companys operating performance to its competitors by minimizing impacts caused by differences in capital structure,taxes and depreciation and amortization policies.Further,the exclusion of non-operational items and special items enables comparability to prior per

74、iod performance and trend analysis.Consolidated Adjusted EBITDA is calculated by excluding from Consolidated EBITDA the effect of the following non-operational items:equity in earnings and losses of unconsolidated businesses and other income and expense,net,and the following special items:severance

75、charges,asset and business rationalization,legacy legal matter,Verizon Business Group(Verizon Business)goodwill impairment,legal settlement,business transformation costs and non-strategic business shutdown.Severance charges recorded during 2024 relate to separations under our voluntary separation pr

76、ogram for select U.S.-based management employees as well as other headcount reduction initiatives.Severance charges recorded during 2023 primarily relate to involuntary separations under our existing plans.Asset and business rationalization recorded during 2024 predominately relates to the decision

77、to cease use of certain real estate assets and exit non-strategic portions of certain businesses,as part of our continued transformation initiatives.Asset rationalization recorded during the second quarter of 2023 relates to certain real estate and non-strategic assets that we made a decision to cea

78、se use of as part of our transformation initiatives.Asset rationalization recorded during the fourth quarter of 2023 primarily relates to Verizon Business network assets that we made a decision to cease use of as part of our transformation initiatives.Legacy legal matter recorded during 2024 relates

79、 to a litigation matter associated with a legacy contract for the production of telephone directories in Costa Rica by a subsidiary of Verizon.Verizon Business goodwill impairment relates to an impairment charge recognized in the fourth quarter of 2023 as a result of Verizons annual goodwill impairm

80、ent test.Legal settlement recorded during 2023 relates to the settlement of a litigation matter regarding certain administrative fees.Business transformation costs recorded during 2023 primarily relate to costs incurred in connection with strategic partnership initiatives in our managed network supp

81、ort services for certain Verizon Business customers.Non-strategic business shutdown relates to the shutdown of our BlueJeans business offering in 2023.Consolidated Adjusted EBITDA Margin is calculated by dividing Consolidated Adjusted EBITDA by consolidated operating revenues.We have not provided a

82、reconciliation for our Consolidated Adjusted EBITDA Growth Forecast because we cannot,without unreasonable effort,predict the special items that could arise during 2025.Net Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA RatioNet Unsecured Debt and Net Unsecured Debt to Consoli

83、dated Adjusted EBITDA Ratio are non-GAAP financial measures that we believe are useful to management,investors and other users of our financial information in evaluating Verizons ability to service its unsecured debt from continuing operations.Net Unsecured Debt is calculated by subtracting secured

84、debt and cash and cash equivalents,from the sum of debt maturing within one year and long-term debt.Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio is calculated by dividing Net Unsecured Debt by Consolidated Adjusted EBITDA.For purposes of Net Unsecured Debt to Consolidated Adjusted EBITDA

85、 Ratio,Consolidated Adjusted EBITDA is calculated for the last twelve months.We have not provided a reconciliation for our Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio target because we cannot,without unreasonable effort,predict the timeline for achieving the target or the special items

86、that could arise in future periods.Adjusted Earnings per Common Share(Adjusted EPS)and Adjusted EPS ForecastAdjusted EPS and Adjusted EPS Forecast are non-GAAP financial measures that we believe are useful to management,investors and other users of our financial information in evaluating our operati

87、ng results and understanding our operating trends without the effect of special items which could vary from period to period.We believe excluding special items provides more comparable assessment of our financial results from period to period.Adjusted EPS is calculated by excluding from the calculat

88、ion of reported EPS the effect of the following special items:amortization of acquisition-related intangible assets and legacy legal matter.Verizon Communications Inc.Definitions-Non-GAAP Measures 12We exclude the amortization of acquisition-related intangible assets because the amount and timing of

89、 such charges are significantly impacted by the timing,size,number and nature of the acquisitions we consummate.While we have a history of significant acquisition activity,we do not acquire businesses on a predictable cycle,and the amount of an acquisitions purchase price allocated to intangible ass

90、ets and related amortization term are unique to each acquisition and can vary significantly from acquisition to acquisition.Exclusion of this amortization expense facilitates more consistent comparisons of operating results over time between our newly acquired and long-held businesses,and with both

91、acquisitive and non-acquisitive peer companies.We believe that it is important for investors to understand that our non-GAAP financial measure adjusts for the intangible asset amortization but does not adjust the revenue that is generated in part from the use of such intangible assets.We have not pr

92、ovided a reconciliation for our Adjusted EPS Forecast because we cannot,without unreasonable effort,predict the special items that could arise during 2025.Free Cash Flow and Free Cash Flow ForecastFree cash flow and free cash flow forecast are non-GAAP financial measures that reflect an additional w

93、ay of viewing our liquidity that,when viewed with our GAAP results,provide a more complete understanding of factors and trends affecting our cash flows.We believe they are more conservative measures of cash flow since capital expenditures are necessary for ongoing operations.Free cash flow and free

94、cash flow forecast have limitations due to the fact that they do not represent the residual cash flow available for discretionary expenditures.For example,free cash flow and free cash flow forecast do not incorporate payments made or expected to be made on finance lease obligations or cash payments

95、for acquisitions of businesses or wireless licenses.Therefore,we believe it is important to view free cash flow and free cash flow forecast as complements to our entire consolidated statements of cash flows.Free cash flow is calculated by subtracting capital expenditures(including capitalized softwa

96、re)from net cash provided by operating activities.Free cash flow forecast is calculated by subtracting capital expenditures forecast(including capitalized software)from forecasted net cash provided by operating activities.Verizon Communications Inc.Definitions-Non-GAAP Measures 13Consolidated EBITDA

97、,Consolidated Adjusted EBITDA and Consolidated Adjusted EBITDA Margin(dollars in millions)202320242025Unaudited2Q3Q4Q1Q2Q3Q4Q1QConsolidated Net Income(Loss)$4,766$4,884$(2,573)$4,722$4,702$3,411$5,114$4,983 Add:Provision for income taxes 1,346 1,308 756 1,353 1,332 891 1,454 1,490 Interest expense 1

98、,285 1,433 1,599 1,635 1,698 1,672 1,644 1,632 Depreciation and amortization expense(1)4,359 4,431 4,516 4,445 4,483 4,458 4,506 4,577 Consolidated EBITDA$11,756$12,056$4,298$12,155$12,215$10,432$12,718$12,682 Add/(subtract):Other(income)expense,net(2)$(210)$(170)$807$(198)$72$(72)$(797)$(121)Equity

99、 in(earnings)losses of unconsolidated businesses 33 18 11 9 14 24 6 (6)Severance charges 237 296 1,733 Asset and business rationalization 155 325 374 Legacy legal matter 106 Verizon Business Group goodwill impairment 5,841 Legal settlement 100 Business transformation costs 176 Non-strategic business

100、 shutdown 158 Consolidated Adjusted EBITDA$11,971$12,238$11,678$12,072$12,301$12,491$11,927$12,555 Consolidated Operating Revenues$32,981$33,485 Consolidated Net Income(Loss)Margin 14.3%14.9%Consolidated Adjusted EBITDA Margin 36.6%37.5%Consolidated Adjusted EBITDA-Year over year change$483 Consolid

101、ated Adjusted EBITDA-Year over year change%4.0%Consolidated Adjusted EBITDA Margin-Year over year change90 bpsFootnotes:(1)Includes Amortization of acquisition-related intangible assets and a portion of the Non-strategic business shutdown,where applicable.(2)Includes Pension and benefits remeasureme

102、nt adjustments,where applicable.Verizon Communications Inc.Non-GAAP Reconciliations-Consolidated14Consolidated EBITDA and Consolidated Adjusted EBITDA(LTM)(dollars in millions)12 Mos.Ended12 Mos.Ended12 Mos.Ended12 Mos.Ended12 Mos.EndedUnaudited3/31/246/30/249/30/2412/31/243/31/25Consolidated Net In

103、come$11,799$11,735$10,262$17,949$18,210 Add:Provision for income taxes 4,763 4,749 4,332 5,030 5,167 Interest expense 5,952 6,365 6,604 6,649 6,646 Depreciation and amortization expense(1)17,751 17,875 17,902 17,892 18,024 Consolidated EBITDA$40,265$40,724$39,100$47,520$48,047 Add/(subtract):Other(i

104、ncome)expense,net(2)$229$511$609$(995)$(918)Equity in losses of unconsolidated businesses 71 52 58 53 38 Severance charges 533 296 2,029 1,733 1,733 Asset and business rationalization 480 325 699 374 374 Legacy legal matter 106 106 106 106 Verizon Business Group goodwill impairment 5,841 5,841 5,841

105、 Legal settlement 100 100 100 Business transformation costs 176 176 Non-strategic business shutdown 158 158 Consolidated Adjusted EBITDA$47,959$48,289$48,542$48,791$49,274 Footnotes:(1)Includes Amortization of acquisition-related intangible assets and a portion of the Non-strategic business shutdown

106、,where applicable.(2)Includes Pension and benefits remeasurement adjustments,where applicable.Net Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio(dollars in millions)Unaudited12/31/233/31/246/30/249/30/2412/31/243/31/25Debt maturing within one year$12,973$15,594$23,255$21

107、,763$22,633$22,629 Long-term debt 137,701 136,104 126,022 128,878 121,381 121,020 Total Debt 150,674 151,698 149,277 150,641 144,014 143,649 Less Secured debt 22,183 23,290 24,015 24,272 26,138 26,336 Unsecured Debt 128,491 128,408 125,262 126,369 117,876 117,313 Less Cash and cash equivalents 2,065

108、 2,365 2,432 4,987 4,194 2,257 Net Unsecured Debt$126,426$126,043$122,830$121,382$113,682$115,056 Consolidated Net Income(LTM)$11,799$11,735$10,262$17,949$18,210 Unsecured Debt to Consolidated Net Income Ratio 10.9x 10.7x 12.3x 6.6x 6.4x Consolidated Adjusted EBITDA(LTM)$47,959$48,289$48,542$48,791$

109、49,274 Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio 2.6x 2.5x 2.5x 2.3x 2.3x Net Unsecured Debt-Quarter over quarter change$1,374 Net Unsecured Debt-Year over year change$(10,987)Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio-Quarter over quarter change xNet Unsecured Debt to C

110、onsolidated Adjusted EBITDA Ratio-Year over year change(0.3)xVerizon Communications Inc.Non-GAAP Reconciliations-Consolidated15Adjusted Earnings per Common Share(Adjusted EPS)(dollars in millions except per share amounts)3 Mos.Ended3 Mos.EndedUnaudited3/31/243/31/25Pre-taxTaxAfter-TaxPre-taxTaxAfter

111、-TaxEPS$1.09$1.15 Amortization of acquisition-related intangible assets$221$(56)$165 0.04$190$(48)$142 0.03 Legacy legal matter 106 (27)79 0.02$327$(83)$244$0.06$190$(48)$142$0.03 Adjusted EPS$1.15$1.19 Year over year change%3.5%Footnote:Adjusted EPS may not add due to rounding.Free Cash Flow(dollar

112、s in millions)3 Mos.Ended3 Mos.EndedUnaudited3/31/243/31/25Net Cash Provided by Operating Activities$7,084$7,782 Capital expenditures(including capitalized software)(4,376)(4,145)Free Cash Flow$2,708$3,637 Free Cash Flow-Year over year change$929 Free Cash Flow-Year over year change%34.3%Free Cash F

113、low Forecast(dollars in millions)12 Mos.EndedUnaudited12/31/25Net Cash Provided by Operating Activities Forecast$35,000-37,000Capital expenditures forecast(including capitalized software)(17,500-18,500)Free Cash Flow Forecast$17,500-18,500Verizon Communications Inc.Non-GAAP Reconciliations-Consolida

114、ted16Non-GAAP Reconciliations-SegmentsSegment EBITDA and Segment EBITDA MarginConsumer(dollars in millions)3 Mos.3 Mos.3 Mos.3 Mos.3 Mos.EndedEndedEndedEndedEndedUnaudited3/31/246/30/249/30/2412/31/243/31/25Operating Income$7,372$7,604$7,604$6,904$7,424 Add Depreciation and amortization expense 3,30

115、9 3,394 3,411 3,438 3,543 Segment EBITDA$10,681$10,998$11,015$10,342$10,967 Total operating revenues$25,057$24,927$25,360$27,560$25,618 Operating Income Margin 29.4%30.5%30.0%25.1%29.0%Segment EBITDA Margin 42.6%44.1%43.4%37.5%42.8%Segment EBITDA-Year over year change%2.7%Business(dollars in million

116、s)3 Mos.3 Mos.3 Mos.3 Mos.3 Mos.EndedEndedEndedEndedEndedUnaudited3/31/246/30/249/30/2412/31/243/31/25Operating Income$399$500$565$594$664 Add Depreciation and amortization expense 1,128 1,078 1,040 1,061 1,020 Segment EBITDA$1,527$1,578$1,605$1,655$1,684 Total operating revenues$7,376$7,300$7,351$7,504$7,286 Operating Income Margin 5.4%6.8%7.7%7.9%9.1%Segment EBITDA Margin 20.7%21.6%21.8%22.1%23.1%Segment EBITDA-Year over year change%10.3%Verizon Communications Inc.17