Good morning, and welcome to Verizon's 4th Quarter 2025 Earnings Conference Call. In a listen-only mode, and the call...

Thanks, Brad. Good morning, and welcome to our 4th Quarter 2025 Earnings Call. I'm Brady Connor, and on the call with me this morning is our Chief Executive Officer, Dan Shulman, and Tony Skiadis, our CFO. Additionally, I'd like to be assuming the role on a go-forward basis. Before we begin, I'd like to point you to our safe harbor statement, which can be found in the Earnings Presentation Relations website. Our comments this morning may include forward-looking statements which are subject to risks and affect future results are discussed in our SEC filings. This presentation also contains non-GAAP financial measures, and you can find reconciliations of these measures in the meeting. With that, I'll turn to you.

Thanks, Brady, and thanks for all of your service to Verizon over the years and to me personally over these past 100 days. I'll miss working with you. And, Colleen, welcome to the Verizon team. We are so lucky to have you. And thanks to everyone on the call for joining us this morning. We have a tremendous amount of information to share with you. Frontier acquisition, our renewed MVNO relationship with Comcast and Charter, our 2026 guidance, including an update on our capital allocation plans. I'm eager to dive into each of those topics. We did not meet as our customers expect and that we expect every day. We saw that resilience under difficult circumstances and snow to serve our customers and keep them connected. We maintained seamless connectivity across the most heavily impacted regions on driving shareholder value. That volume growth and profitability growth can and happen. When I talk to you today, I am more convinced that information will be driven by bold and meaningful actions to affect what is essentially a turnaround story, efficient, and bringing in talent with our speed of decision-making and product deployment will meaningfully increase. We are creating a new Verizon, one that does not settle for anything less than being the best. They begin to truly embrace feel that is needed to train fully required. There's no question radically shift our culture, customers, and building a brand that's inside Verizon is that we are now going to play to win, and we will never again be content to be the hunting ground where our last 100 days excitement about respect that intensity to simply removing pockets of underperformance, eliminating redundant organizational structures, reducing layers, and cutting resources. We are building an in-year war chest, a substantial portion realized by headcount reductions alongside marketing efficiencies, real estate rationalization, contract renegotiations, our business for growth and loyalty, and this is just the beginning of the efficiencies we are uncovering. came to be the most efficient telecom company in our industry as we continue to reduce complexity eliminate structural inefficiencies automation at scale savings providing us with ever more operational flexibility meaningful and increasing returns for our shareholders make no mistake our number one priority is to invest in our business to drive our future growth No company can't sway to greatness every dollar of OPEX and CAPEX to ensure it is being spent on initiatives that will drive nothing more important. Our financial success is driven by convergence, a value-based end-to-end customer experience. We will not rely on empty price increases to drive short-term revenue and engine of long-term. strongly believe that Verizon and possibly our industry will increases in bottom line performance. We began to see initial glimmers of our discipline and we perform well in the market, achieving more than 1 million mobility and broadband net ads. 2019 was simultaneously writing better business than we did in the fourth. Importantly, we added 616,000 postpaid phone net ads with 551,000 from consumer 2025 financial guidance. I think by now it's clear receiving market share to our competitors compete effectively and win speed and consistently competing execution in the fourth quarter establishing a strong baseline and momentum Before Tony reviews our fourth quarter results and our 2026 guidance, there are a few topics I want to briefly cover. First, an obviously crucial to our converged future with a huge, significantly underpenetration. I want to thank the intent to continue our adding at least with our goal to reach 40 to 50 million fiber medium term. At the same time, we are aggressively driving efficiency. We now expect to realize over $1 billion of run rate operating cost synergies by 2028, double our integration, contract efficiencies, and go-to-market savings across marketing and advertising. The combination of aggressively seized incremental net ads and share band services, I'm also very excited to have completed a comprehensive long-term agreement with Comcast and Charter to continue our partnership. We obviously can't reveal any of the details, but each of us agrees the partnership is on very solid footing, financially, operationally, and strategically. It is an accretive deal that ensures us on the best network. Finally, we are targeting the position in the first half of this year with a very sophisticated conjoint analysis that is providing us with detailed customer feedback, projected market dynamics, and associated financial and operational metrics that the feedback is quite positive. Obviously, all of you and our competitors want the details. The good news is we have them, and we are now in the fine-tuning stage of our value proposition work. We are not going to show our hand until the day we launch our position will impact our volumes and financials based on significant market input and data analytics. Customer obsessing into the organization complexity, eliminating the things to make it easier to do business with. To do this successfully and efficiently, we are determined to be an AI for and fundamentally reshape the customer experience. We are leveraging it to simplify offers and reduce choosing predictive models. We can anticipate our data and AI capabilities to not just massively improve our efficiency and customer satisfaction, but to redefine our value proposition. Eventually, beyond these internal efforts, we are unlocking new revenue streams by reimagining our existing assets, leveraging our deep fiber footprint and distributed network facilities to enable AI at scale for our enterprise customers, including hyper-financial and conservative. Our 2026 guidance is significantly more robust than our recent performance of our turnaround. our 2025 results and outline our 2026 financial guidance.

Thanks, Dan, and good morning. We finished 2025 with strong operational momentum while also achieving our full-year financial guidance. This includes our previously raised guidance for adjusted EBITDA, adjusted EPS. In the fourth quarter, we added over 1 million net ads across mobility and broadband, our highest reported quarterly volumes in six years. We ended the year funding growth, delivering high-quality net ads across mobility and healthy customers. We accomplished this while taking decisive steps to transform our cost structure, ensuring that we have the necessary flexibility to invest in our customers and business going forward, $616,000. This was our best net ad quarter in six years as our offers resonated in the market. Our consumer team executed exceptionally well across the holiday season, especially with new to Verizon sales. Consumer postpaid phone net ads of $551,000 were driven by strong demand as we leveraged our financial strength and flexibility to fund growth opportunities. In our business segment, we continue to see growth in the small and medium business and enterprise sectors. Public sector results were impacted by residual disconnects from government efficiency efforts as well as the federal government shutdown. However, public sector performance improved from the prior quarter. With the vast majority of these related disconnects behind us, we expect to see further improvements in public sector wireless volumes. Phone churn remained elevated in the quarter, largely from prior pricing actions as well as competition. Churn remains a pivotal opportunity in 2026, and we expect our investment in the customer as well as increased convergence opportunities to benefit retention over the next few quarters. In core prepaid, we continue to take a quarter of positive customer. We finished the year with over 2,000 total wireless stores across the country, and we have good momentum with our key brands going into 2026. We also continue to take meaningful share. $372,000, our highest of the year, reflecting strong customer demand across both fixed wireless access and fixed wireless access net ads were $319,000. The improvement was driven by our consumer segment and reflects the innovation and expansion around the product offering. Fios Internet delivered $67,000 net ads, our highest fourth quarter net addition since 2020. It continues to be the gold standard for broadband connectivity. We are excited to grow our fiber footprint through the Frontier acquisition and the Tillman partnership. Frontier delivered an exceptional performance in the fourth quarter, generating 125,000 fiber net additions, representing a 29% increase over the prior year. This momentum was supported by a strong operational pace, approximately 1.3 million new fiber passings in 2025, bringing their footprint to more than 9 million fiber. We're incredibly pleased to have Frontier in our portfolio, and we're excited about the long-term growth potential of these assets. When we combine Frontier, FWA, and Fiber, net ads were almost $1.9 million for 2025, resulting in over $16.3 million connections. While we are in the initial stages of our strategic transformation, our execution is already yielding significant progress across both mobility and financial results. we delivered on all of our 2025 financial guidance even as we undertook a change in strategy in the fourth quarter this reflects the strength and resiliency of our business and provides a good jumping off point for 2026 wireless service revenue for the full year grew two percent the fourth quarter performance reflects an increased emphasis on disciplined volume-based growth as the revenue benefits of a volume-based growth model scale across 2026 we will continue to rely on growth from areas such as FWA, perks, premium mix, and prepaid to help offset continued promo amortization pressures as well as lapping last year's price increases. I'm proud of our team's efforts to meaningfully reduce our cost structure, flexibility to invest in the customer while also delivering strong financial results. Consolidated adjusted EBITDA was $11.9 billion for the quarter. Adjusted EBITDA, which we expect to be industry-leading, was $50 billion. This was an increase of $1.2 billion in the prior year and within our guided range. Adjusted EPS for the fourth quarter was $1.09, bringing the full-year number to $4.71. The 2025 growth of 2.6% from the prior year was driven primarily by the strength in adjusted EBITDA. This generation remains a key strength for Verizon. Operating activities was $37.1 billion for the full year, up year over year, even with stronger volume growth. CapEx for the full year totaled $17 billion. We delivered on all of our growth initiatives across C-band and Fios builds. The team has done a great job finding efficiencies across mobility and broadband, with more to come in 2026. As of today, our C-band build-out is about 90% complete and covers approximately 300 million pops. Additionally, we exceeded our FIO's build targets for the year. For the full year 2025, we generated $20.1 billion in free cash flow, which we anticipate will once again be industry-leading. Net unsecured debt at the end of 2025 was $110.1 billion, a $3.6 billion improvement year-over-year. We continue to make meaningful reductions to our debt throughout the year, resulting in our net unsecured debt to consolidated adjusted EBITDA ratio ending at 2.2 times as of the end of 2025. This represents our second quarter in a row that we were inside of our leverage target prior to the frontier closing. Additionally, we had $1.3 billion in discretionary pension contributions during 2025, which resulted in the pension being fully funded as of the end of the fourth quarter. Funding for the Frontier transaction was completed in the fourth quarter. Both the amount we needed to raise for Frontier and the rates we achieved came in favorable to our original expectations. By the end of January, we will have paid down approximately $5.7 billion of Frontier's debt since closing on the 20th, moving quickly to realize benefits from the strength of our balance sheet. As we indicated before, we expect our unsecured leverage ratio to increase by approximately 0.25 times once Frontier's EBITDA contributions are factored in. Looking ahead, 2026 represents an exciting opportunity for Verizon. Our guidance reflects the impact of the bold actions we have taken recently. We expect to deliver performance that is a step function improvement from our recent historical trends across our key metrics. We're taking actions to ensure we have the financial flexibility to invest in the customer, drive improvements, and post-paid fund our broadband base reflects the beginning of our transformation. For the first time, we're guiding to our consolidated post-paid phone net ads. We expect to deliver approximately two to three times our 2025 total, targeting a range of $750,000 to $1 million postpaid phone net ads in 2026. Our 2026 financial guidance includes Frontier from January 20th, the closing date of the acquisition. As we work towards driving sustainable and disciplined volume-based revenue growth, we anticipate that 2026 will be a transitional year for revenue as we lap prior year price increases, absorb promotional amortization, and await the benefits from churn reduction and increased volumes. We are guiding to 2% to 3% mobility and broadband service revenue growth, which equates to approximately $93 billion. We expect wireless service revenue growth to be approximately flat in 2026. Having broadband in our service revenue guidance reflects the importance of both mobility and broadband as key growth drivers in the future. We have streamlined our organizational structure and are conducting a rigorous, bottoms-up review of our entire career. We have implemented several actions that would deliver multibillion-dollar benefits in 2026, including a reduction in workforce as well as asset and business rationalization efforts. Structure will continue in 2026 as we simplify operations, deliver frontier synergies, and exit low-margin businesses. As Dan mentioned, we have line of sight to delivering $5 billion of operating expense savings in 2026. We are reinvesting a portion of these savings to drive a higher quality revenue profile, which in turn creates a more profitable and stable foundation for sustainable long-term Based on our anticipated revenue performance, combined with the strength of our cost efficiencies, we expect adjusted EPS to be in the range of $4.90 to $4.95 for the full year, or year-over-year growth of 4% to 5%. This represents a significant acceleration compared to our recent historical performance. If we are not guiding on adjusted EBITDA, we do expect adjusted EBITDA to grow at a faster rate than adjusted EPS. Our 2026 CapEx spending is expected to be in the range of $16 to $16.5 billion, a combined improvement of $4 billion from Verizon and Frontier's capital expenditures from 2025. We are bringing the same rigor to our capital expenditures as we are to our P&L, while not sacrificing any of our network excellence for mobility and broadband. The efficiency work that helped us come in below our 2025 CapEx range has only just begun. In addition, our C-band bill will be substantially complete in 2026, and any initiatives outside of mobility and broadband are being aggressively rationalized. We expect free cash flow to be $21.5 billion or more, growing approximately 7% or more, which will mark our highest free cash flow generated since 2020. As we communicated at the announcement of the Frontier acquisition, we anticipated the inclusion of Frontier's results to be cash flow diluted in 2026, given the investments being made to expand the fiber footprint. However, because of the work being done to streamline our cost structure, grow adjusted EPS, and drive CapEx efficiencies, we are now in a position to grow our free cash flow in 2026, even with the inclusion of Frontier and our investments in the customer. Flow generation enables us to execute on our capital allocation priorities, including strategic investments and paying down debt. We expect to return to our target leverage range of 2.0 to 2.25 times in the 2027 timeframe. To summarize, we delivered strong volumes in the fourth quarter, delivered on our 2025 financial guidance, and we have a plan for 2026 that accelerates. I will now hand the call over to Dan to discuss more on our 2026 capital allocation priorities.

Our 2026 guidance reflects our conviction that this year is not just a time of transition, but of measurable and improved performance as we go into 2027 and 2028. Our guidance, ES growth, our free cash flow growth, and our postpaid phone net ad targets are all significantly above assisted EPS growth of 4 to 5 percent, represents a meaningful acceleration, increasing our growth rate by more than 70 percent at the midpoint of our guide compared to 2025. It is also significantly better than our five-year historical average adjusted EPS growth rate, a billion dollars plus years. Thank you. We will now begin the

question and answer session. If you would like to ask a question, please press star one on your touchtone phone. Please unmute your phone and record your name clearly when prompted. Your name is required to introduce your question. If at any point your question has been answered or you would like to withdraw your request, you may remove yourself by pressing star two. One moment please for the first question. The first question will come from Michael Ng of Goldman Sachs.

Please go ahead. Hi, good morning. Thank you so much for the question. I just have two if I could. First, it was really encouraging to see this strong outlook for postpaid phones in 2026. Would you talk a little bit about the investments needed to drive that subscriber growth? Will we see the improvements more on the churn rates, or will it be more marketing and promotions to drive gross ads? And then I have a quick follow-up. Thank you.

I think maybe I'll start, and then Tony can come in if he's got any additional color to add. If I just take a step back, you know, we delivered 616,000 post-paid phone ed ads in Q4, and we did that in what I thought was a responsible manner. Took no action on our core-based pricing. You know, we went into the ring. We offered a set of promotions. We were consistent in reaction to that. We met every single day. We looked at what was happening in the market. We made changes where we needed to to have the team executed against that. As I look to next year, you know, we're targeting 750,000 to a million. That is two to three times what we did last year. But that's only about 10 to 15% of the net new to the industry. So I think that's a very doable target for us in year one of our transition. We don't need to overutilize promotions or pricing to achieve those targets. There's absolutely no need in my mind for that to happen. If we reduce churn by five bits, our target, and think about some of the things that we're doing, Like, our churn is driven by price increases without corresponding value. And we've already said in our remarks that we're not going to do that. By the way, that is exactly the right thing for us to go and do. Although that puts about 180 basis points of pressure on our revenues for this year, what happens is when we raise rates without corresponding value, our churn rate goes up. And right now, our churn over the last three years has gone up by 25 basis points. Every single basis point is 90,000 net ads. 25 basis points times 90,000 is about 2.25 million net ads that we've lost. Obviously, not all of it because of price increases, but that would generate 3 billion-plus revenues. And so we're not going to go do that going forward, and that should help churn. Second, we're going to be investing in our overall customer. You know, we have able to be invested. The third thing they have is we did $1.2 million, and we entered 2026 with more capacity in our network to do fixed wireless access than we did when we started 2025. Obviously, Frontier is a huge opportunity for us in NetAds as well. were significantly underpenetrated in frontier markets on wireless. And when we bundle together, we see a 40% reduction in churn versus standalone mobility. And so, you know, our goal over time is to win market net ads, win responsibly in a manner that sustainably grows our top line and allows us to drive shareholder value. And so I think you're going to see a combination of us, all value proposition, leveraging convergence, seeing churn go down, and then being appropriately aggressive where we need to in the market. But this is not going to be anything on price or a lot of promotional expense. This is about investing.

Great. Dan, thank you for all that. That was all very clear and comprehensive. Appreciate that. And then just on the follow-up, you know, I think you guys raised the fiber passings outlook to 40 to 50 million over the media term. I think the old target was 35 to 40. So could you just talk a little bit about whether you saw more opportunities in footprint, opportunities to go out of footprint? Any thoughts there would be great. Thank you again.

Well, first of all, we're really pleased with the closing of the Frontier acquisition. You know, our partnership with Tillman, you know, we acquired Starry, which is going to help us with MDUs, you know, as we pass those. And the more I look at convergence, the more optimistic I am that that's going to be a major future. So, we want to double down on that. We want to, you know, get to at least 40 or 50 million fiber passings. We said in our CapEx guidance that we'll do at least 2 million organically. You know, obviously, we'll look, you know, both inorganic and partnerships. You know, that is something we're always looking at. We have plenty of capacity and flexibility positions and the combination.

The next question will come from Ben Swinburne of Morgan Stanley. Please go ahead.

Good morning. Dan, you talked through some of the strategies around go-to-market, but I guess I'm just wondering if you could talk about how you're thinking about customer lifetime values as you move forward relative to the past. There's probably some concern out there that CLVs will be lower for Verizon, if not the industry, in 26 and 27 versus the last several years. So what is Verizon doing to make sure it's bringing on high-value customers as it takes this more aggressive posture? And I just wanted to ask maybe for Tony on CapEx. you mentioned capex efficiencies looks like you're taking a couple billion roughly out of kind of the previous run rate you said no impact to revenue just could you talk a little bit about where you found all this capex opportunity that's not going to impact you know the business if anything might

help the business grow faster thanks so much yeah i guess i'll start and then turn it over to you Tony? So I have some thoughts on that. So on LTV, please, not only since we had a lot of news and is, you know, our high value. And LTV, one of the biggest things is, you know, and to me, we have a, you know, large opportunity to adjust churn. I think it's one of the biggest, you know, on the four reasons why people leave us, it's price increases without corresponding value. That just irritates our customers, and we've seen the churn start adding value to it.

Second is friction.

That needs to be flawless, and we need to reduce complexity, and we need to address that. And we already have initiatives underway to address each and every one of those things. And then there's price perception and competitive intensity. And, you know, we want to be very rational. Again, I think, you know, we are a number given our momentum to the market. And so I think we're going to be able to move after our targets without stepping up on the promotional side. I think we're going to be able to lower churn. I think we have a lot of opportunity there. And then as I look at convergence, that combination associated with your broadband service and an ARPU with your mobility at much lower churn rate is a higher LTV. The majority of our customers with that, too. We're really pleased with the attached rate on that as well. And so LTVs go up this year as responsibly. It will be a key lever for that.

And, Ben, good morning. On your question on CapEx, as we said in the prepared remarks, our first priorities to invest in the business, that hasn't changed. And the guidance that we gave at 16 to 16.5 is all in and sufficient to address all of the growth initiatives that we have in the business. And we're going to continue to invest in the RAN, the wireless RAN. We talked about 90% of our plant sites have C-band, and we expect to be substantially complete with our C-band build here in 2026. And the remaining C-band additions, just for some color, are mostly on small cells where lower CapEx is required. And then from a fiber perspective, you know, we're not slowing down. Dan touched on this. You know, we'll continue to fiber build pace at at least 2 million PREMs passed, which is at least the combined pace of both Verizon and Frontier from last year, and 40 to 50 million passings over time. We have the Tillman partnership as well that we can scale and build to our standards at very good economics. And then in terms of, you know, our CapEx spend relative to history here, you know, we really have narrowed our focus to mobility and broadband. And as we said earlier, you know, we're applying the same rigor to CapEx as we are to OpEx. And non-core areas that are not aligned to growth, including legacy areas, are being significantly reduced. And that includes areas such as, you know, business wireline, non-directional products, technology as well, wholesale, legacy copper and voice platforms, and even projects with too long of a payback. So, you know, the team's done a great job in finding unit cost efficiency as we build, both in wireless and in fiber, you know, cost per printing there. And that helps us get to a lower CapEx envelope. But we're very focused on being very efficient with our capital deployment this year.

You know, maybe just build a little mobility, and broadband is foundational on that, $16.5 I may be old-fashioned, but when I think of a billion, $16 to $16.5 billion, it's a tremendous amount of money. But I think it's a responsible features I mentioned, year and margin. Sunset, though, there's no need for us to continually invest. This is one of the easier places where we're able to capex and, you know.

Thank you both.

Great. Yeah, thanks, Ben.

The next question will come from John Hudlick of UBS. Please go ahead.

Great, thanks, and good morning, everyone. Maybe two questions, if I could, maybe first for Tony. Any piece parts or components you can give us on the flat service revenue growth and mobility or the organic EBITDA growth on a consolidated basis? On the service revenue side, you know, there's a lot of moving parts. you got better subscriber growth, probably nice wholesale growth, but there's probably higher

promo AMART than we saw last year. So, any color there on that or the organic EBITDA growth would

be great. And then for Dan, you gave us the volumes on the postpaid phone side. What about

the broadband side? Any color you can give us on sort of what to expect in volumes this year, certainly as it relates to both fiber and fixed wireless would be great. Thanks.

On the revenue and EBITDA, so on the revenue side, you know, we guided the 2% to 3% mobility and broadband service revenue growth. And, you know, right after we closed Frontier, we were in market with competitive offers there to attract Frontier customers to the Verizon network and experience. As Dan mentioned, we see strong convergence opportunities, particularly where we under-index in those Frontier markets. And we do see convergence improving our churn profile. Now, as we said, you know, in terms of revenue composition, we expect to have flat wireless service revenue in 2026 as we lap, you know, prior year price increases, as Dan mentioned, about 180 basis points or so of headwind. You know, absorb the ongoing parameterization, so that's continuing, and work towards driving sustainable volume-based revenues and doing that in a very disciplined way. to give additional context, maybe some assumptions in the revenue guide. In terms of tailwinds, obviously, on the mobility side, we said we expect volume growth of $750,000 to $1 million postpaid phone net ads, and we're writing good business, and that's the focus there. We also have areas like perks and step-ups. We continue to see growth in customers taking perks as well as step-ups to premium plans. And then on broadband, you know, continued volume growth in both FWA and Fiber, including Frontier. Now, Frontier put on almost 500,000 net ads this past year. So we have now, you know, combined 16 million, over 16 million broadband subs in the base, and that includes a little over 10.5 million Fiber customers. And then also, you know, prepaid. Our prepaid business continues to perform well. six straight quarters of volume growth has translated also into revenue growth. In terms of headwinds, I mentioned program organization, and that pressure will continue and be a headwind in 2026. And we're still lapping, as Dan mentioned, pricing actions from 2025, and we'll work our way through it. But as we said, you know, 2026 is going to be a transitional year for revenue as we push on volume-based growth across both mobility and broadband and setting up for a stronger revenue profile, exiting 2026 and doing it in a very fiscally responsible way. So that's on the revenue. On the EBITDA, while we didn't guide on the EBITDA, I can certainly share some additional context for you. Obviously, it starts with the revenue growth that I just described. Frontier brings a substantial EBITDA contribution with it as well. And in the prepared remarks, we said we expect EBITDA to grow at a faster rate than adjusted EPS when you factor in the frontier acquisition related interest expense that's about a billion dollars and the depreciation amortization from the asset base asset base that we acquired which about is about a billion and a half dollars so when you look at the EBITDA it's an acceleration in the EBITDA growth rate and great operating leverage and then you know when you when you look underneath that from a cost transformation perspective we mentioned that we're carefully examining all areas of our cost structure to run leaner and be more agile. And, you know, we have $5 billion of cost transformation in our plans for 2026, and that work is already well underway. Whether it's the, you know, continued decommission of legacy elements in the network, including copper, and you think about the legacy areas as well in Frontier, whether it's customer experience and addressing customer pain points and reducing call volumes, We're on the IT side in terms of rationalizing platforms and including AI enablement. On the workforce side, we reduced our workforce by 13,000 in the fourth quarter, 80% of which were off payroll in Q4, with the remainder coming off payroll in the first quarter. And then we mentioned the frontier integration, and we said we expect two times the operating expense run rate synergy, so at least a billion dollars of synergies by 2028. And those synergies will ramp as we execute on our integration work. And when you think about the EBITDA and the cost reduction actions that we have in place, it allows us to do a number of things. You know, first, run more efficiently. The second thing, it allows us to absorb the transitional year for revenue. It also allows us to invest in the customer experience and return a significant amount of capital. So we see a great path for both EBITDA and EPS growth. And I'll hand it to Dan.

You know, it's hard to, I'll just say this, I think all of this kind of hangs together in an integrated whole, in my view. One of the reasons why we have such high churn rate, one of the reasons why we've been losing, we're not going to do that again. And a percent and higher churn rate and 150 to a million net draw band at the beginning of our efficiency journey. And then we're buying back shares, and you can really see that you have both top line because we're doing the right thing, and hopefully a delighted shareholder base because we're creating a model term growth both on the top line.

Thanks, guys. One question.

Your last question will come from Michael Rollins of Citigroup. Please go ahead, sir.

Good morning. And I also just want to express my thanks to Brady and welcome, Colleen. And, Dan, you've been very clear about the problems that come from empty price increases, and I'm curious if you could discuss the opportunity for the alternative. Just given the maturation of industry penetration rates, do you see opportunities for Verizon and or the industry to inject more value into these services to capture better ARPUs over time? And is there a sense, if that is an opportunity, when Verizon can go after that? And then just secondly, on the cost side, you know, Tony, I think you were just talking about the different layers of getting savings. Can you discuss what Verizon has identified for savings after 2026, specifically for 27 and 28, as you're looking to continue to fund the top-line strategy as well as the new capital allocation targets that were set today?

um well because i love as i do uh revenues i'm gonna jump on that complexity so heavy but our value proposition because that's really important and then the third thing is when you take out your complexity and can you add i think the answer to i think that is the answer but it comes with doing things customers hate the science uh on that fix the end to end and then you start to regain trust, and when you start to regain trust and you can start to put either promises or incremental value in it, then by saying that we don't do price increases, I'm saying we will not do price increases without value. But I do think that there are lots of places where we can add value. Honestly, I think some of the broadband stuff that we're doing, you know, and so I think there are areas captured through the appropriate pricing going to our customers and increasing our churn again this is a long-term great

way to end Brad that's all the time we have today and thanks for everybody for

being on the call this concludes the conference call for today thank you for your participation and for using Verizon conferencing services you may now