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AT&T INC. 8-K Report, Financial Results (Apr 23, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed April 23, 2025
Period End
April 23, 2025
Securities
TT-PCTBBT-PA
In the record · 2016–202610-K1110-Q348-K281

T filed 11 annual reports (10-K), 34 quarterly reports (10-Q) and 281 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Aug ’18Aug ’18
  2. Material agreement8-K · Nov ’20Nov ’20
  3. Leadership change8-K · Feb ’23Feb ’23
  4. Leadership change8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed April 23, 2025. Cited figures are marked; the original filing is the authoritative source.

AT&T (NYSE: T) reported first-quarter 2025 results on April 23, 2025 that showed modest top-line growth, stronger cash generation, and reiterated full-year guidance.

Consolidated revenues rose 2.0% to $30.6 billiona, diluted EPS was $0.61 (versus $0.47), and adjusted EPS was $0.51 (versus $0.48, up 6.3%). Adjusted EBITDA reached $11.5 billion, up about 4.4% year over year. The headline EPS figure is flattered by $1.4 billion of equity income from DIRECTV, which the company excludes from adjusted EPS.

Mobility service revenue grew 4.1%b, and the company added 324,000 postpaid phone subscribers with postpaid phone churn of 0.83%. Consumer fiber performed strongly, with 261,000 net adds and fiber revenue up 19.0%. Cash flow and balance sheet metrics improved.

Operating cash flow was $9.0 billionc (versus $7.5 billion), and free cash flow excluding DIRECTV was $3.1 billion (versus $2.8 billion). Net debt fell to $119.1 billion, giving a net debt-to-adjusted EBITDA ratio of about 2.63x, within the company's 2.5x-range target. Management said it will begin share repurchases in the second quarter of 2025 and reaffirmed full-year 2025 guidance, including adjusted EPS of $1.97 to $2.07, free cash flow of $16 billion or more, and capital investment of about $22 billion.

The planned sale of its 70% DIRECTV stake to TPG is still expected to close in mid-2025. Weak spots remain. Business Wireline revenue fell 9.1%, with legacy services down 17.4%, and that segment posted an operating loss of $98 milliond.

Management expects Business Wireline EBITDA to decline in the mid-teens percentage range for the full year. Latin America revenue fell 8.7% on unfavorable foreign exchange. Investors should also note that management said the mark-to-market pension adjustment to 2025 EPS will be significant and cannot yet be estimated, so reported GAAP EPS may differ materially from adjusted EPS.

02—Key points

Key Highlights

  1. Revenue rose 2.0% to $30.6 billion, driven by Mobility and Consumer Wireline, partly offset by Business Wireline and Mexico declines.
  2. Adjusted diluted EPS was $0.51 versus $0.48 a year ago (up 6.3%); GAAP diluted EPS of $0.61 included $0.15 per share of DIRECTV equity income that is excluded from the adjusted figure.
  3. Adjusted EBITDA rose to $11.5 billion from $11.0 billion; operating cash flow was $9.0 billion and free cash flow excluding DIRECTV was $3.1 billion.
  4. Consumer fiber was a strength: 261,000 AT&T Fiber net adds, fiber broadband revenue up 19.0%, and 181,000 AT&T Internet Air net adds.
  5. Net debt fell to $119.1 billion, with net debt-to-adjusted EBITDA of about 2.63x, inside the 2.5x-range target; share repurchases are planned to start in Q2 2025.
  6. Full-year 2025 guidance was reiterated, including adjusted EPS of $1.97 to $2.07, free cash flow of $16 billion or more, and capital investment of about $22 billion.
  7. Business Wireline revenue fell 9.1% and posted a $98 million operating loss, with management guiding to a mid-teens EBITDA decline for the year.

03—Questions

Frequently Asked Questions

  1. Did AT&T reaffirm its 2025 guidance?

    Yes. AT&T reiterated all full-year 2025 financial and operational guidance, including adjusted EPS of $1.97 to $2.07, free cash flow of $16 billion or more, capital investment of about $22 billion, and adjusted EBITDA growth of 3% or better.

  2. Why is GAAP EPS ($0.61) so much higher than adjusted EPS ($0.51)?

    GAAP EPS includes $1.4 billion of equity in net income from the DIRECTV investment, which equals about $0.15 per share. AT&T removes this income from adjusted EPS because the stake is being sold to TPG, and adjusted EPS also excludes restructuring and other items. The company expects the DIRECTV adjustment and a mark-to-market pension item to drive significant differences between GAAP and adjusted 2025 EPS.

  3. When will AT&T begin share repurchases, and can it afford them?

    AT&T plans to start share repurchases in the second quarter of 2025. Management says its net leverage is in the 2.5x range, with net debt-to-adjusted EBITDA of about 2.63x at quarter-end, and that the company continues to operate in line with its capital return plan. The $16 billion-plus free cash flow guidance supports this, though the exact amount of buybacks was not disclosed in this filing.

  4. What are the main risks to AT&T's growth in this quarter?

    Business Wireline is the main pressure point. Revenue fell 9.1%, legacy services declined 17.4%, and the segment posted an operating loss of $98 million, with a mid-teens EBITDA decline expected for 2025. Latin America revenue also fell 8.7%, mainly due to foreign exchange. Consumer fiber growth and wireless service revenue growth of 4.1% partly offset these declines.

  5. What is the status of the DIRECTV stake sale?

    AT&T continues to expect the sale of its entire 70% stake in DIRECTV to TPG to close in mid-2025. Cash distributions from DIRECTV are a meaningful part of current cash flow: $1.4 billion of operating cash flow in Q1 2025, which is excluded from free cash flow. Investors should therefore watch how the sale changes reported cash flow and earnings once it closes.

04—Continue

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