Fios Revenue Flat at $11.7 BillionNarrow moat

Verizon (VZ) — moat facet

Fios, Verizon's mature fibre business, earned $11.7 billion in 2025, 0.3% more than in 2024, because internet growth only just covered video losses.

Before Frontier, Verizon already had a fibre business, and its numbers show what fibre does once it matures. Fios revenue was $11,647 million in 2024 and $11,678 million in 20251, up 0.3%2. Fios internet connections were 7,328 thousand at the end of 20253.

Verizon Fios connections, end-2025 (thousands)7,328Fios internet3,407Fixed wireless (Consumer)2,441Fios videoVerizon Q4 2025 results release, Consumer operating statistics
Internet is three times the size of video now.

Inside the flat total two businesses are moving in opposite directions: internet holds up while video customers leave. Fios video connections were 2,441 thousand at the end of 2025, down 9.1%4. The 10-K describes the Consumer wireline business as "over our 100% fiber-optic network"5, but the television product riding on it is the old cable bundle, and cord-cutting takes it apart.

Fios shows the durability of fibre as an asset. A fibre customer has little reason to go back to copper. What it does not show is growth: after nearly two decades, the business is holding its revenue, not raising it.

That is a useful warning for Frontier. A fibre footprint earns steadily once built, and grows only while it is being extended and filled.

Fios internet is still growing its customer count slowly: 7,328 thousand connections at the end of 20256. Consumer also sold 3,407 thousand fixed wireless connections7, some of them in areas Fios does not reach, and the 10-K lists "over-the-top (OTT) video services" among its home products8, a sign of where video is going.

A decline in 2026 would mean internet price rises no longer cover the video losses, and the mature half of the fibre business has started to shrink.

Moat trajectory: Holding steady

Fios revenue $11.68bn in 2025, up 0.3%.

The number that tests this moat
Reported
Fios revenue, full year
$11,678M (2025), from $11,647M in 2024

Whether mature fibre holds its revenue; a fall in 2026 would mean internet no longer covers video losses.

Source: Verizon Q4 2025 results release ↗
⚠ Threats to the moat
⚠ THREAT 01
Video Keeps Leaving
Fios television lost 9.1% of its customers in 2025, a runoff that internet growth only just covered.
References
  1. ReportedFios revenue was $11,647 million in 2024 and $11,678 million in 2025, up 0.3%.
    Verizon fourth-quarter and full-year 2025 results release, Form 8-K exhibit 99 - full-year operating statistics, segment EBITDA, free cash flow 2020-2025 and 2026 guidance - operating statistics: connections, net additions, churn, ARPA, Fios and fixed wireless. — FY2025 · publ. 30 January 2026 · source ↗
  2. Moat Explorer calcFios revenue was $11,647 million in 2024 and $11,678 million in 2025, up 0.3%.
    Moat Explorer calculation from Verizon's reported figures ($ millions unless stated; calendar years). Revenue and profit over the decade: revenue 2015-2025 (138,191 / 131,620) ^ (1/10) - 1 = about 0.5% a year; 138,191 / 131,620 - 1 = +5.0%; range 138,191 - 125,980 = about 12.2bn; 2027 revenue of 142bn would need (142 / 138.191) ^ (1/2) - 1 = about 1.4% a year; operating income 29,259 / 30,615 - 1 = -4.4%; net income 17,174 / 17,879 - 1 = -3.9%; diluted EPS 4.06 / 4.37 - 1 = -7.1%; total assets 404,258 / 244,175 - 1 = +65.6%. Segments 2025: Consumer share of segment operating income 29,628 / (29,628 + 2,532 = 32,160) = 92.1% (2024 29,484 / 31,542 = 93.5%; 2023 29,011 / 31,077 = 93.4%); Business share 2,532 / 32,160 = 7.9%; Q2 2026 Consumer 8,032 / (8,032 + 991 = 9,023) = 89.0%, Q2 2025 7,643 / (7,643 + 724 = 8,367) = 91.3%; Consumer operating margin 29,628 / 106,807 = 27.7%, Business 2,532 / 29,069 = 8.7%; Business share of segment revenue 29,069 / 135,876 = 21.4%; shared network and service costs 17,991 + 9,717 = 27,708, Business share 9,717 / 27,708 = 35.1%; Consumer share of segment EBITDA 43,801 / (43,801 + 6,644) = 86.8%; Consumer revenue 2025 106,807 / 102,904 - 1 = +3.8%, 2023-2025 106,807 / 101,626 - 1 = +5.1%; Consumer service revenue 80,617 / 77,127 - 1 = +4.5%; Consumer equipment 21,779 - 23,930 = -2,151, about 2.2bn below cost; Business revenue 29,069 / 30,122 - 1 = -3.5%; Enterprise and Public Sector 13,532 / 15,076 - 1 = -10.2%; Business Markets and Other 13,555 / 12,697 - 1 = +6.8%; Wholesale 1,953 / 2,313 - 1 = -15.6%; institutional and wholesale decline (15,076 - 13,532) + (2,313 - 1,953) = 1,904; Q2 2026 Consumer revenue 26,242 / 26,648 - 1 = -1.5%; Business revenue 7,155 / 6,973 - 1 = +2.6%; restatement 7,275 - 6,973 = 302 a quarter; mobility and broadband service revenue 2025 75,923 + 14,940 = 90,863. Customers: T-Mobile postpaid accounts 34,700 - 34,237 = 463 more than Verizon; T-Mobile 34,700 / 31,502 - 1 = +10.2%, 34,700 - 31,502 = 3,198; Verizon accounts 34,237 - 34,646 = -409, -1.2%; ARPA premium 168.35 / 152.91 - 1 = +10.1%; cable lines 10,187 + 12,540 = about 22.7 million; cable Q2 net adds 448 + 406 = 854 thousand, 854 / 184 = 4.6 times; Q2 net adds share 184 / (184 + 432 + 448 + 406 = 1,470) = 12.5%; fibre net adds 155 / 367 = 42%; annual churn at 0.92% a month 0.92 x 12 = 11.0%, about one customer in ten; 0.1 point on 94 million = about 94 thousand phones a month; prepaid churn 3.59 / 0.92 = 3.9 times; prepaid annual loss 1 - (1 - 0.0359) ^ 12 = 35.5%, average life 1 / 0.0359 = 27.9 months, a little over two years; revenue per postpaid line 170.62 / 3.67 = 46.49 (2025), 167.26 / 3.61 = 46.33 (2024); ARPA 2025 170.62 / 167.26 - 1 = +2.0%; ARPA Q2 2026 168.35 / 170.79 - 1 = -1.4%; ARPA H1 2026 167.50 / 170.30 - 1 = -1.6%; wireless service revenue 83,703 / 82,073 - 1 = +2.0%; wireless service share of revenue 83,703 / 138,191 = 60.6%; FWA revenue 2,940 / 2,139 - 1 = +37.4%; FWA revenue share 2,940 / 138,191 = 2.1%; fibre annualised 155 x 4 = 620 thousand; passings 2.0 / 30 = 6.7%; passings to fill 2,000 / 620 = 3.2 times. Spectrum and capital: C-Band 45.5 + 7.5 = 53.0bn; licences share of assets 158,159 / 410,186 = 38.6%; licences over goodwill 158,159 / 30,664 = 5.2 times; licences over equity 158,159 / 105,196 = 1.5 times; wireless service revenue per dollar of licences 83,703 / 157,039 = 0.53; spectrum bought June 2026 1.0 + 3.2 = 4.2bn; capex / revenue 17,011 / 138,191 = 12.3% (2025), 23,087 / 136,835 = 16.9% (2022); capex 17,011 / 23,087 - 1 = -26.3%; capex less depreciation 17,011 - 18,349 = -1,338; ROIC averages 2015-2019 (10.8 + 9.1 + 12.7 + 8.2 + 11.3) / 5 = 10.4%, 2021-2025 (8.7 + 7.3 + 5.0 + 7.0 + 7.1) / 5 = 7.0%; interest expense 6,694 / 5,524 - 1 = +21.2% (2023-2025); Q2 interest 1,985 / 1,639 - 1 = +21.1%; interest / operating income 6,694 / 29,259 = 22.9%. Cost, cash and capital returns: employees 89.9 / 99.6 - 1 = -9.7%; severance 533 + 1,733 + 1,715 + 397 = 4,378, about 4.4bn; adjusted EBITDA margin 49,997 / 138,191 = 36.2% (2025), 48,791 / 134,788 = 36.2% (2024); Q2 2026 operating income 7,179 / 8,172 - 1 = -12.2%; free cash flow Q2 6,426 / 5,167 - 1 = +24.4%; adjusted EPS less diluted EPS 4.71 - 4.06 = 0.65; phones sold below cost 28,976 - 25,470 = 3,506, about 3.5bn; dividends / free cash flow 11,481 / 20,126 = 57.0% (2025), 5,864 / 10,209 = 57.4% (H1 2026); dividends / net income 11,481 / 17,174 = 66.9%; dividends per share 2.735 / 2.230 - 1 = +22.6%, (2.735 / 2.230) ^ (1/10) - 1 = 2.1% a year; dividend cost a quarter 0.7075 x 4,155 = about 2,940; buyback average 3,500 / 72.047 = about $48.58 a share; shares 4,155 / 4,217 - 1 = -1.5%; free cash flow yield 21.53 / 193.94 = 11.1%; cash returned about (11.5 + 4.5) / 193.94 = 8.2% of market value; net unsecured debt 128,682 - 110,053 = 18,629; backlog 55.2 / 58.1 - 1 = -5.0%; backlog months 58.1 / 138.191 x 12 = about 5.0; device receivables 34,004 / 31,308 - 1 = +8.6%, allowance 1,628 / 1,315 - 1 = +23.8%; TracFone 3.5 + 3.0 = 6.5bn plus up to 0.65bn. Valuation: Frontier price / market value 22.3 / 193.94 = 11.5%; market value 193.94 / 253.94 - 1 = -23.6% (against end-2019), 193.94 / 188.06 - 1 = +3.1% (against end-2015); target 51.58 / 46.68 - 1 = +10.5%; year-end market value over net income 188.06 / 17.879 = 10.5 (2015), 217.61 / 13.127 = 16.6 (2016), 215.92 / 30.101 = 7.2 (2017), 232.30 / 15.528 = 15.0 (2018), 253.94 / 19.265 = 13.2 (2019), 243.11 / 17.801 = 13.7 (2020), 215.12 / 22.065 = 9.7 (2021), 165.47 / 21.256 = 7.8 (2022), 158.49 / 11.614 = 13.6 (2023), 168.34 / 17.506 = 9.6 (2024), 171.74 / 17.174 = 10.0 (2025); trailing twelve months to June 2026 revenue 138,191 - 67,989 + 68,693 = 138,895, net income 17,174 - 9,882 + 8,880 = 16,172, 193.94 / 16.172 = 12.0, 193.94 / 138.895 = 1.40 - revenue, profit, costs and growth over time. — 2015-2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Verizon's Forms 10-K and 10-Q, quarterly results releases, the recast segment revenue 8-K, peer results releases (T-Mobile, AT&T, Comcast, Charter) and market data; operands shown in the source line.
  3. ReportedFios internet connections were 7,328 thousand at the end of 2025.
    Verizon fourth-quarter and full-year 2025 results release, Form 8-K exhibit 99 - full-year operating statistics, segment EBITDA, free cash flow 2020-2025 and 2026 guidance - operating statistics: connections, net additions, churn, ARPA, Fios and fixed wireless. — FY2025 · publ. 30 January 2026 · source ↗
  4. ReportedFios video connections were 2,441 thousand at the end of 2025, down 9.1%.
    Verizon fourth-quarter and full-year 2025 results release, Form 8-K exhibit 99 - full-year operating statistics, segment EBITDA, free cash flow 2020-2025 and 2026 guidance - operating statistics: connections, net additions, churn, ARPA, Fios and fixed wireless. — FY2025 · publ. 30 January 2026 · source ↗
  5. ReportedThe 10-K describes the Consumer wireline business as "over our 100% fiber-optic network", but the television product riding on it is the old cable bundle, and cord-cutting takes it apart.
    Verizon Communications Inc. Form 10-K for fiscal 2025 (year ended 31 December 2025) - segment note (Note 13) and MD&A segment results: Consumer and Business revenue, operating income and costs. — FY2025 · publ. 17 February 2026 · source ↗
  6. ReportedFios internet is still growing its customer count slowly: 7,328 thousand connections at the end of 2025.
    Verizon fourth-quarter and full-year 2025 results release, Form 8-K exhibit 99 - full-year operating statistics, segment EBITDA, free cash flow 2020-2025 and 2026 guidance - operating statistics: connections, net additions, churn, ARPA, Fios and fixed wireless. — FY2025 · publ. 30 January 2026 · source ↗
  7. ReportedConsumer also sold 3,407 thousand fixed wireless connections, some of them in areas Fios does not reach, and the 10-K lists "over-the-top (OTT) video services" among its home products, a sign of where video is going.
    Verizon fourth-quarter and full-year 2025 results release, Form 8-K exhibit 99 - full-year operating statistics, segment EBITDA, free cash flow 2020-2025 and 2026 guidance - operating statistics: connections, net additions, churn, ARPA, Fios and fixed wireless. — FY2025 · publ. 30 January 2026 · source ↗
  8. ReportedConsumer also sold 3,407 thousand fixed wireless connections, some of them in areas Fios does not reach, and the 10-K lists "over-the-top (OTT) video services" among its home products, a sign of where video is going.
    Verizon Communications Inc. Form 10-K for fiscal 2025 (year ended 31 December 2025) - segment note (Note 13) and MD&A segment results: Consumer and Business revenue, operating income and costs. — FY2025 · publ. 17 February 2026 · source ↗
Sources
Generated September 29, 2026