What is the primary purpose of Verizon's extensive use of non-GAAP financial measures in this filing?

Verizon uses non-GAAP financial measures to provide investors with a more detailed and comparable view of its operational performance and financial health. These measures are designed to exclude the impact of certain non-operational items and special charges, allowing for better assessment of underlying business trends and easier comparison with industry peers.

How does Verizon define Consolidated Adjusted EBITDA, and why is it important?

Consolidated Adjusted EBITDA is calculated by adjusting Consolidated EBITDA to exclude non-operational items such as equity in earnings/losses of unconsolidated businesses and other income/expense, as well as special items like acquisition/integration charges, severance charges, asset rationalization, and legacy legal matters. Verizon believes this metric is crucial for evaluating operational effectiveness and comparing performance across periods and competitors by minimizing the effects of financing, taxes, and accounting policies.

What specific special items are excluded when calculating Adjusted EPS?

When calculating Adjusted EPS, Verizon excludes the impact of amortization of acquisition-related intangible assets, acquisition and integration-related charges, severance charges, and asset and business rationalization. The company states these exclusions facilitate a more consistent comparison of financial results over time and with peer companies.

What limitations should investors be aware of regarding Free Cash Flow (FCF) as presented by Verizon?

Verizon notes that Free Cash Flow (FCF) has limitations because it does not represent the residual cash flow available for all discretionary expenditures. Specifically, FCF does not incorporate payments made on finance lease obligations or cash payments for business acquisitions or wireless licenses. Investors are advised to view FCF as a complement to, rather than a substitute for, the company's full consolidated statements of cash flows.

VZ 8-K: Earnings & Results

Summary

Verizon Communications Inc. (VZ) has filed an 8-K report detailing its financial results and providing explanations of its non-GAAP financial measures as of October 29, 2025. The filing emphasizes the company's use of various non-GAAP metrics, such as Consolidated Adjusted EBITDA, Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio, and Adjusted Earnings per Common Share (Adjusted EPS), to offer a more comprehensive view of its operational performance and financial health beyond standard GAAP reporting. These non-GAAP measures are presented to allow for better comparisons with industry peers and to highlight underlying business trends by excluding certain non-operational items and special charges, including acquisition and integration costs, severance charges, and asset rationalization. Investors are encouraged to review these non-GAAP figures in conjunction with GAAP results to gain a complete understanding of Verizon's financial position and performance, particularly in light of ongoing strategic initiatives and potential acquisitions.

Key Highlights

1Verizon is enhancing investor understanding by providing detailed definitions and rationale for its non-GAAP financial measures, including Consolidated EBITDA, Adjusted EBITDA, Net Unsecured Debt, and Adjusted EPS.
2The company clarifies that non-GAAP measures are presented alongside GAAP results and are intended to supplement, not replace, GAAP financial statements.
3Consolidated Adjusted EBITDA and its growth forecast are highlighted as key metrics for evaluating operational effectiveness and minimizing impacts from capital structure, taxes, and depreciation policies.
4Net Unsecured Debt and the Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio are provided to assess Verizon's ability to service its unsecured debt from ongoing operations.
5Adjusted EPS and its forecast aim to offer a clearer view of operating trends by excluding the impact of special items like acquisition-related charges and severance costs.
6Free Cash Flow (FCF) and its forecast are presented as important liquidity measures, though investors are cautioned that FCF does not represent residual cash flow available for all discretionary expenditures.

VERIZON COMMUNICATIONS INC 8-K Report, Financial Results (Oct 29, 2025)

Summary

Key Highlights

Frequently Asked Questions