MW Verizon's stock slips in the face of pressure on a key subscriber metric

By Emily Bary

Verizon lost more postpaid subscribers than expected in the first quarter but said it's seeing better trends in April

Verizon Communications Inc. stood by its guidance in the face of macroeconomic uncertainty on Tuesday, though the telecommunications company came up short with its wireless retail postpaid phone momentum in the latest quarter.

The company lost a net of 289,000 postpaid phone subscribers in the first quarter, with losses in the consumer unit outweighing better performance on the business side. Analysts tracked by S&P Global Visible Alpha were expecting net losses of 218,000.

Verizon $(VZ)$ had warned of softness on the metric back in March, with management warning at an investor conference of a heightened competitive environment.

Postpaid subscribers are those who pay for their plans at the end of the month, in contrast to prepaid subscribers, who pay before using their service.

Verizon Chief Executive Hans Vestberg noted in prepared earnings remarks that it ended the quarter "with positive sales momentum that has continued into April."

"Consumer postpaid phone gross adds in March were up mid-single digits from the prior year and the performance in April continues to be strong," Chief Financial Officer Tony Skiadas added.

Shares of Verizon were off 4% in premarket action Tuesday.

Vestberg said in a release that Verizon benefited from a three-year price lock that it offered customers, as well as a free phone guarantee for customers who did trade-ins.

"With our high quality customer base, network superiority and position of financial strength, we have the momentum and flexibility to continue innovating to meet customer needs and invest for growth," he said in the release.

In the prepaid business, meanwhile, Verizon saw its best core retail net additions - 137,000 - since it acquired the TracFone business in 2021. The company added a net of 339,000 broadband subscribers.

Overall, Verizon saw $20.8 billion in wireless service revenue, up 2.7% from a year before. Analysts had been modeling $20.4. Total operating revenue amounted to $33.5 billion, up 1.5% from a year earlier, while analysts were looking for $33.3 billion.

The company posted $1.19 in adjusted earnings per share, up from $1.15 a year prior and ahead of the $1.15 FactSet consensus view.

Verizon maintained its full-year forecast, which, among other things, calls for total wireless-service revenue growth of 2% to 2.8% and free cash flow of $17.5 billion to $18.5 billion. The guidance "does not reflect any assumptions regarding the potential impacts of the evolving tariff environment," Verizon said in its release.

The company, along with other wireless players, is viewed as somewhat insulated from macroeconomic uncertainty, given that many consumers view wireless service as essential. While customers might delay phone upgrades in a choppy economic environment, some analysts have noted that equipment purchases aren't necessarily profitable for the wireless companies.

See also: Are AT&T and Verizon good stocks for a recession? This analyst makes the case.

"During periods of elevated uncertainty, our business has demonstrated remarkable strength and resilience, when our differentiators and structural advantages become even more apparent, helping to protect our business and create durability in our financial performance," Vestberg said in its prepared remarks.

-Emily Bary

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April 22, 2025 08:02 ET (12:02 GMT)

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