v3.25.4
Debt
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Debt
Note 7. Debt
Outstanding long-term debt obligations as of December 31, 2025 and 2024 are as follows:
(dollars in millions)
At December 31,MaturitiesInterest 
Rates %		20252024
Verizon Communications< 5 Years
0.85 - 7.75
$29,192 $29,325 
5-10 Years
1.13 - 7.88
39,769 33,851 
> 10 Years
1.13 - 8.95
60,471 52,719 
< 5 Years
Floating(1)
1,373 1,171 
5-10 Years
Floating(1)
647 1,735 
Alltel Corporation< 5 Years
6.80
38 38 
5-10 Years
7.88
56 56 
Operating telephone company subsidiaries – debentures
< 5 Years
6.00 - 8.38
317 286 
5-10 Years
5.13 - 8.75
297 328 
Other subsidiaries – asset-backed debt
< 5 Years
1.53 - 6.09
18,247 16,363 
< 5 Years
Floating(1)
8,857 9,805 
Finance lease obligations (average rate of 5.0% and 4.8% in 2025 and 2024, respectively)(2)
2,511 2,349 
Vendor financing arrangements(2)
16 85 
Unamortized discount, net of premium(3,463)(3,604)
Unamortized debt issuance costs(619)(558)
Total long-term debt, including current maturities157,709 143,949 
Less long-term debt maturing within one year18,177 22,568 
Total long-term debt$139,532 $121,381 
Long-term debt maturing within one year$18,177 $22,568 
Add short-term vendor financing arrangements(2)
441 65 
Debt maturing within one year$18,618 $22,633 
Add long-term debt139,532 121,381 
Total debt$158,150 $144,014 
N/A - not applicable
(1) For the period ending December 2025, the debt obligations bore interest at floating rates, including floating rates associated with the Secured Overnight Financing Rate (SOFR) for the interest period plus an applicable interest margin per annum. Floating rates associated with SOFR for the interest payments made in December 2025 ranged from 3.943% to 4.869%.
(2) Finance lease and vendor financing obligations are part of alternative financing arrangements.

Maturities of long-term debt (secured and unsecured) outstanding, including current maturities, excluding finance lease obligations and unamortized debt issuance costs, at December 31, 2025 are as follows:

Years(dollars in millions)
2026$17,267 
20279,569 
202813,032 
20298,115 
203011,081 
Thereafter96,753 

During 2025, we received $27.6 billion of proceeds from long-term borrowings including current maturities, which included $9.3 billion of proceeds from asset-backed debt transactions. The net proceeds were primarily used for general corporate purposes including the repayment of debt. We used $19.8 billion of cash to repay and repurchase long-term borrowings including current maturities and finance lease obligations, including $8.4 billion to prepay and repay asset-backed borrowings. The net proceeds of approximately $10.2 billion from the notes issued in 2025 were primarily used to fund the acquisition of Frontier.

During 2024, we received $15.6 billion of proceeds from long-term borrowings, which included $12.4 billion of proceeds from asset-backed debt transactions. The net proceeds were primarily used for general corporate purposes including the repayment of debt and the funding of certain renewable energy projects. We used $20.3 billion of cash to repay and repurchase long-term borrowings and finance lease obligations, including $8.5 billion to prepay and repay asset-backed, long-term borrowings. The net proceeds of approximately $1.0 billion from the notes issued in 2024 were used to fund certain renewable energy projects.
2025 Significant Debt Transactions
Debt or equity financing may be needed to fund additional investments or development activities or to maintain an appropriate capital structure to ensure our financial flexibility.

The following tables show the significant transactions involving the unsecured debt securities of the Company and its subsidiaries that occurred during the year ended December 31, 2025.

Exchange Offers
(dollars in millions)
Principal Amount Exchanged
Principal Amount Issued
Verizon 1.450% - 7.750% notes and floating rate notes, due 2026 - 2030
$2,207 $— 
Verizon 5.401% notes due 2037(1)
— 2,162 
Total(2)
$2,207 $2,162 
(1) The principal amount issued in exchange does not include either an insignificant amount of cash paid in lieu of the issuance of fractional new notes or accrued and unpaid interest paid on the old notes accepted for exchange to the date of exchange.
(2) The debt exchange offers above meet the criteria to be accounted for as a modification of debt. As a result, the excess of the principal amount of notes exchanged over the principal amount of new notes issued of $45 million was recorded as a premium to Long-term debt in the consolidated balance sheets.

Tender Offers
(dollars in millions)Principal Amount Purchased
Cash Consideration(1)
Verizon 1.450% - 7.750% notes and floating rate notes, due 2026 - 2030(2)
$503 $501 
Total
$503 $501 
(1) The total cash consideration includes the tender offer consideration, plus any accrued and unpaid interest to the date of purchase.
(2) The tender offer was launched concurrently with the exchange offer discussed above and made available to different holders of the same series of notes.

Repayments and Repurchases
(dollars in millions)Principal Repaid/ Repurchased
Amount Paid(1)
Verizon 4.050% notes due 2025
A$450 $365 
Verizon 0.875% notes due 2025
€747 840 
Verizon 3.250% notes due 2026
843 1,032 
Verizon 3.376% notes due 2025
$793 806 
Verizon floating rate notes due 2025
487 490 
Verizon 0.850% notes due 2025
686 689 
Verizon 2.625% notes due 2026
985 990 
Verizon 1.450% notes due 2026
826 829 
Verizon 4.125% notes due 2027
607 615 
Verizon 3.000% notes due 2027
463 466 
Open market repurchases of various Verizon notes(2)
2,319 1,912 
Total
$9,034 
(1) Represents amount paid to repay or repurchase, including any accrued interest. In addition, for securities denominated in a currency other than the U.S. dollar, amount paid is shown on a U.S. dollar equivalent basis and includes the amount payable per the derivatives entered into in connection with the transaction. See Note 9 for additional information on cross currency swap transactions related to the transaction.
(2) During 2025, we recorded gains of $397 million in connection with the open market repurchases, which were reflected within Other income (expense), net in our consolidated statement of income.
Issuances
(dollars in millions)Principal Amount Issued
Net Proceeds(1)
Verizon 3.250% notes due 2032
€1,000 $1,142 
Verizon 3.750% notes due 2037
1,000 1,134 
Verizon 3.996% junior subordinated notes due 2056(2)
2,250 2,573 
Verizon 5.742% junior subordinated notes due 2056(2)
£1,000 1,298 
Verizon 5.250% notes due 2035(3)
$2,250 1,676 
Verizon 4.750% notes due 2033
2,000 1,987 
Verizon 5.000% notes due 2036
2,250 2,222 
Verizon 5.750% notes due 2045
1,500 1,485 
Verizon 5.875% notes due 2055(3)
3,250 2,817 
Verizon 6.000% notes due 2065(3)
2,000 1,687 
Total$18,021 
(1) Net proceeds were net of underwriting discounts and other issuance costs. In addition, for securities denominated in a currency other than the U.S. dollar, net proceeds are shown on a U.S. dollar equivalent basis. See Note 9 for additional information on cross currency swap transactions related to the issuances.
(2) Notes are subordinate to our senior unsecured notes and have an interest rate reset and deferral features. See Note 9 for additional information on derivative activity related to these transactions.
(3) We contributed $1.3 billion principal amount in aggregate of the notes to our pension plans, as discussed below.

Commercial Paper Program
In 2025, we issued $11.6 billion in net proceeds and made $11.6 billion in principal repayments of commercial paper. These transactions are reflected within Cash flows from financing activities in our consolidated statements of cash flows on a net basis. As of December 31, 2025, we had no commercial paper outstanding.

Asset-Backed Debt
As of December 31, 2025, the carrying value of our asset-backed debt was $27.1 billion. Our asset-backed debt includes Asset-Backed Notes (ABS Notes) issued to third-party investors (Investors), loans (ABS Financing Facilities) received from banks and their conduit facilities (collectively, the Banks), and sales of residual interests under our ABS Notes and certain ABS Financing Facilities (Class R Interest) under a master repurchase agreement (master repurchase agreement) with a bank (the Counterparty). Our consolidated asset-backed debt bankruptcy remote legal entities (each, an ABS Entity, or collectively, the ABS Entities) issue the debt or are otherwise party to the transaction documentation in connection with our asset-backed debt transactions. Under the terms of our asset-backed debt for ABS Notes and ABS Financing Facilities, Cellco Partnership (Cellco), a wholly-owned subsidiary of the Company, and certain other Company affiliates (collectively, the Originators) transfer device payment plan agreement receivables and certain other receivables (collectively referred to as certain receivables) or a participation interest in certain other receivables to one of the ABS Entities, which in turn transfers such receivables and participation interest to another ABS Entity that issues the debt. Verizon entities retain the equity interests and residual interests, as applicable, in the ABS Entities and the ABS Notes and ABS Financing Facilities, as applicable, which represent the rights to all funds not needed to make required payments on such asset-backed debt and other related payments and expenses.

Our asset-backed debt is secured by the transferred receivables, participation interest and Class R Interest, future collections on such receivables, underlying receivables related to such participation interest and such Class R Interest, as applicable. These receivables and participation interest transferred to the ABS Entities, such Class R Interest and related assets, consisting primarily of restricted cash, will only be available for payment of asset-backed debt and expenses related thereto, payments to the Originators in respect of additional transfers of certain receivables and participation interest, and other obligations arising from our asset-backed debt transactions, as applicable, and will not be available to pay other obligations or claims of Verizon’s creditors until the associated asset-backed debt and other obligations are satisfied. The Investors, Banks or Counterparty, as applicable, which hold our asset-backed debt have legal recourse to the assets securing the debt, but in the case of our ABS Notes and ABS Financing Facilities, do not have any recourse to Verizon with respect to the payment of principal and interest on the debt. Under a parent support agreement, the Company has agreed to guarantee certain of the payment obligations of Cellco and the Originators to the ABS Entities in connection with our ABS Notes and ABS Financing Facilities. In connection with the master repurchase agreement, the Company has agreed to unconditionally and irrevocably guarantee payment obligations of the related ABS Entity, including to repurchase Class R Interest from the Counterparty.

Cash collections on the receivables and on the underlying receivables related to the participation interest collateralizing our ABS Notes and ABS Financing Facilities are required at certain specified times to be placed into segregated accounts. Deposits to the segregated accounts are considered restricted cash and are included in Prepaid expenses and other and Other assets in our consolidated balance sheets.
Proceeds from our asset-backed debt transactions are reflected in Cash flows from financing activities in our consolidated statements of cash flows. The asset-backed debt issued is included in Debt maturing within one year and Long-term debt in our consolidated balance sheets.

ABS Notes
During the year ended December 31, 2025, we completed the following ABS Notes transactions:
(dollars in millions)Interest Rates %Expected Weighted-average Life to Maturity (in years)Principal Amount Issued
January 2025
Series 2025-1
A Senior class notes
4.7102.99$535 
B Junior class notes4.9402.9941 
C Junior class notes5.0902.9925 
Series 2025-2
A Senior class notes4.9405.00446 
B Junior class notes5.1605.0034 
C Junior class notes5.3405.0020 
January 2025 total
1,101 
March 2025
Series 2025-3
A-1a Senior class notes
4.5101.97706 
A-1b Senior class notes
Compounded SOFR + 0.550(1)
1.97185 
B Junior class notes4.7701.9768 
C Junior class notes4.9001.9741 
Series 2025-4
   A Senior class notes
4.7604.97446 
   B Junior class notes
5.0204.9734 
   C Junior class notes
5.2004.9720 
March 2025 total
1,500 
June 2025
Series 2025-5
A-1a Senior class notes
4.4002.99401 
A-1b Senior class notes
Compounded SOFR + 0.550(1)
2.99134 
B Junior class notes4.6402.99— 
C Junior class notes4.8402.9925 
Series 2025-6
   A Senior class notes
4.6204.99267 
   B Junior class notes
4.8604.99— 
   C Junior class notes
5.0604.9912 
June 2025 total
839 
(dollars in millions)Interest Rates %Expected Weighted-average Life to Maturity (in years)Principal Amount Issued
September 2025
Series 2025-7
A-1a Senior class notes
3.9602.93601 
A-1b Senior class notes
Compounded SOFR + 0.520(1)
2.93200 
B Junior class notes4.2102.93— 
C Junior class notes4.4002.9337 
Series 2025-8
A Senior class notes
4.1604.93356 
B Junior class notes
4.4104.9327 
C Junior class notes
4.6004.9316 
September 2025 total
1,237 
November 2025
Series 2025-9
A-1a Senior class notes
3.9601.90638 
A-1b Senior class notes
Compounded SOFR + 0.4201)
1.9075 
B Junior class notes4.2401.9054 
C Junior class notes4.4101.9033 
Series 2025-10
A Senior class notes
4.2804.91446 
B Junior class notes
4.5404.91— 
C Junior class notes
4.6704.9120 
November 2025 total
1,266 
Total$5,943 
(1) Compounded Secured Overnight Financing Rate (SOFR) is calculated using SOFR as published by the Federal Reserve Bank of New York in accordance with the terms of such notes. Compounded SOFR for the interest payment made in December 2025 was 3.94%.

Under the terms of each series of ABS Notes outstanding as of December 31, 2025, there is a revolving period of up to two years, three years, or five years, as applicable, during which we may transfer additional receivables to the ABS Entity. During the years ended December 31, 2025 and 2024, we made aggregate principal repayments of $4.4 billion and $4.5 billion, respectively, in connection with anticipated redemptions of ABS Notes.

During 2025, we sold certain of our initially offered but retained ABS Notes for cash of $523 million.

In January 2026, in connection with an anticipated redemption of ABS Notes, we made a principal repayment, in whole, for $1.0 billion.

ABS Financing Facilities
Under the two loan agreements outstanding in connection with the ABS Financing Facility originally entered into in 2021 and most recently renewed in 2025 (2021 ABS Financing Facility) we prepaid an aggregate of $250 million in February 2025, prepaid an aggregate of $1.4 billion in March 2025, borrowed an additional $1.1 billion in April 2025, prepaid an aggregate of $200 million and borrowed an additional $125 million in June 2025, prepaid an aggregate of $1.1 billion in September 2025 and prepaid an aggregate of $750 million in November 2025. The aggregate outstanding balance under the 2021 ABS Financing Facility was $5.6 billion as of December 31, 2025.

Under the loan agreement outstanding in connection with the ABS Financing Facility originally entered into in 2022 and most recently renewed in 2025 (2022 ABS Financing Facility), we prepaid an aggregate of $163 million in February 2025, borrowed an additional $189 million in March 2025, prepaid an aggregate of $241 million in April 2025 and borrowed an additional $241 million in December 2025. The aggregate outstanding balance under the 2022 ABS Financing Facility was $5.0 billion as of December 31, 2025.
In January and February 2026, we borrowed an aggregate of $2.3 billion and $1.0 billion, respectively, under the loan agreement outstanding in connection with the 2021 ABS Financing Facility.

Master Repurchase Agreement
In September 2025, we entered into a master repurchase agreement with the Counterparty to sell residual interests under our ABS Notes and certain ABS Financing Facilities for a maximum of $750 million with a simultaneous agreement to repurchase the Class R Interest at a later date for a specific price. In December 2025, we amended the master repurchase agreement to increase the maximum to approximately $1.3 billion. Under the terms of the master repurchase agreement, which is accounted for as a secured borrowing, the Counterparty is sold certain Class R Interest for a specific period of time without the right to further sell or repledge such Class R Interest. However, we have the right and obligation to repurchase the Class R Interest, or substantially similar assets sold to the Counterparty, upon the maturity of the master repurchase agreement.

During 2025, we received approximately $1.3 billion under the master repurchase agreement which remained outstanding as of December 31, 2025 and is collateralized by certain Class R interest. The master repurchase agreement has a remaining maturity of less than one year and is classified as Debt maturing within one year in our consolidated balance sheets. The estimated fair value of such Class R Interest was $1.8 billion as of December 31, 2025.

In January 2026, we amended the master repurchase agreement to increase the maximum to $2.5 billion. In connection with the amendment, we received approximately $1.3 billion in proceeds.

Variable Interest Entities
The ABS Entities meet the definition of a VIE for which we have determined that we are the primary beneficiary as we have both the power to direct the activities of the entity that most significantly impact the entity’s performance and the obligation to absorb losses or the right to receive benefits of the entity. Therefore, the assets, liabilities and activities of the ABS Entities are consolidated in our financial results and are included in amounts presented on the face of our consolidated balance sheets.

The assets and liabilities related to our asset-backed debt arrangements included in our consolidated balance sheets were as follows:
At December 31,At December 31,
(dollars in millions)20252024
Assets
Accounts receivable, net$18,421 $18,339 
Prepaid expenses and other298 322 
Other assets11,753 11,647 
Liabilities
Accounts payable and accrued liabilities34 37 
Debt maturing within one year14,863 17,312 
Long-term debt12,204 8,827 

The Accounts receivable, net amounts above do not include underlying receivables for which a participation interest has been transferred to the ABS Entities. See Note 8 for additional information on certain receivables and participation interest used to secure asset-backed debt.

Long-Term Credit Facilities
At December 31, 2025
(dollars in millions)MaturitiesFacility CapacityUnused CapacityPrincipal Amount Outstanding
Verizon revolving credit facility(1)
2028
$12,000 $11,977 $— 
Various export credit facilities(2)
2026-2033
11,950 1,680 

4,652 
Total$23,950 $13,657 $4,652 
(1) The revolving credit facility does not require us to comply with financial covenants or maintain specified credit ratings, and it permits us to borrow even if our business has incurred a material adverse change. The revolving credit facility provides for the issuance of letters of credit. As of December 31, 2025, there have been no drawings against the revolving credit facility since its inception.
(2) During 2025, we drew down $270 million. During 2024, there were no drawings from these facilities. Borrowings under certain of these facilities are amortized semi-annually in equal installments up to the applicable maturity dates. Maturities reflect maturity dates of principal amounts outstanding. Any amounts borrowed under these facilities and subsequently repaid cannot be reborrowed.
In January 2026, there was a $1.6 billion drawing from one of the export credit facilities.

Non-Cash Transactions
During the years ended December 31, 2025, 2024 and 2023, we financed, primarily through alternative financing arrangements, the purchase of approximately $2.1 billion, $1.6 billion and $1.3 billion, respectively, of long-lived assets consisting primarily of network equipment. As of December 31, 2025 and 2024, $3.0 billion and $2.5 billion, respectively, relating to these financing arrangements, including those entered into in prior years and liabilities assumed through acquisitions, remained outstanding. These purchases are non-cash financing activities and therefore are not reflected within Capital expenditures in our consolidated statements of cash flows.

During 2025, we made discretionary non-cash contributions to our qualified pension plans in the amount of $1.3 billion. The contributions were made from the principal amounts of aggregate notes due 2035, 2055 and 2065. These contributions are non-cash operating activities and therefore are not reflected within cash flow from operating activities in our consolidated statements of cash flows.

Net Debt Extinguishment Gains (Losses)
During the years ended December 31, 2025, 2024 and 2023, we recorded net debt extinguishment gains of $368 million, $385 million and $308 million, respectively. The net gains are recorded in Other income (expense), net in our consolidated statements of income. The total non-cash debt extinguishment gains are reflected within Other, net cash flow from operating activities, and the total cash payments to extinguish the debt are reflected within Other, net cash flow from financing activities in our consolidated statements of cash flows.

Guarantees
We guarantee the debentures of our operating telephone company subsidiaries. As of December 31, 2025, $614 million aggregate principal amount of these obligations remained outstanding. Each guarantee will remain in place for the life of the obligation unless terminated pursuant to its terms, including the operating telephone company no longer being a wholly-owned subsidiary of the Company.

Debt Covenants
We and our consolidated subsidiaries are in compliance with all of our restrictive covenants in our debt agreements.