What Management Said
Read the full Q2 2025 transcript ↗We also posted a 20% increase in the percentage of new customers taking gig-plus speeds, which lifted our overall speed tier mix and helped drive higher connect RPU. Beyond Orlando, we're executing against a strong pipeline of new opportunities to serve more guests. We just closed our most successful upfront ever with record total sales and our largest sports commitments to date. To better reflect this premium content, we recently announced a $3 price increase rolling out in July for new subscribers and in late August for existing ones.
We're doing it while maintaining a strong balance sheet and returning meaningful capital to shareholders. Collectively, these businesses represent nearly 60% of our total revenue and grew at a high single-digit rate this quarter. Adjusted EPS grew 3% to $1.25, and we generated $4.5 billion of free cash flow while returning $2.9 billion to shareholders, including $1.7 billion in share repurchases. In addition, we've seen a 20% increase in the share of new connects choosing our premium gig-plus speeds.
Convergence revenue sustained healthy growth as well, up 3.7% in the quarter, supported by high teens growth in wireless revenue. Turning to business services, revenue increased 6% and EBITDA grew nearly 5%. Our results this quarter include the acquisition of Nitel, which closed in early April. Our strong performance continues to reflect the same framework we've seen for the last several quarters, including solid growth in SMB and even stronger growth at our enterprise solutions business.
What went well
- Wireless net additions reached a new company record of 378,000 in the quarter, bringing Xfinity Mobile to 8.5 million lines and 14% penetration of the residential broadband base.
- Comcast successfully opened Epic Universe in Orlando on May 22nd, driving higher per-cap spending and attendance across the entirety of Universal Orlando Resort with minimal cannibalization of attendance at Universal Studios Florida and Islands of Adventure.
- The company closed its most successful upfront ever with record total sales and its largest sports commitments to date, with Peacock up more than 20% year-over-year and representing over a third of NBCUniversal's total volume.
- Broadband RPU grew 3.5% in the quarter, with roughly half of eligible new customer connects selecting the five-year price guarantee and a 20% increase in the share of new connects choosing premium gig-plus speeds.
- Peacock delivered double-digit revenue growth (18%) and a nearly $250 million year-over-year improvement in EBITDA losses, which landed at a loss of $100 million, while holding paid subscribers steady at 41 million.
- Business services revenue increased 6% and EBITDA grew nearly 5%, with advanced solutions now at approximately $0.50 sold per dollar of connectivity, up from $0.20 three years ago.
What went wrong
- Broadband lost 226,000 subscribers in the quarter, driven by the intense competitive environment combined with typical negative second-quarter seasonality.
- Connectivity and platforms EBITDA was flat in the quarter as the new go-to-market strategy and operational pivot weighed on the ability to grow EBITDA this year.
- Total media advertising revenue was down 7%, partly due to the volume and timing of sports content and tough political comparisons; excluding those, advertising was down low single digits.
- International parks performance remained strong overall, but the company continued to experience pressure in Hollywood and expected it to take a couple more quarters to lap.
- Studios profitability was impacted by the investment to launch two of three tentpole releases (How to Train Your Dragon and Jurassic World: Rebirth) back to back.
Guidance Changes
| Metric | Period | Current guidance |
|---|---|---|
| Broadband RPU growth | Balance of 2025 | Healthy growth, but moderating in the near term due to new everyday pricing rollout (Moderating) |
| Connectivity & Platforms EBITDA | Remaining quarters of 2025 | Investment and operational pivot to ramp; unable to grow EBITDA this year (Pressured) |
| Wireless net additions | Coming quarters | Continued acceleration in pace of net additions (Accelerating) |
| Cash tax benefit | Next several years (incl. 2025) | Roughly $1 billion annual benefit on average (New) |
| Peacock NBA rights cost | Starting Q4 2025 through the season | Full-year cost amortization (straight-lined) kicks in as the season starts in Q4 (New expense) |
Performance Breakdown
| Metric | YoY | Note |
|---|---|---|
| Consolidated revenue | +2% | Benefit from the core six growth drivers, which represent nearly 60% of revenue and grew at a high single-digit rate |
| EBITDA | +1% | Growth driven by the six growth businesses, partly offset by the broadband go-to-market investment |
| Adjusted EPS | +3% to $1.25 | Revenue and EBITDA growth plus share repurchases |
| Parks revenue | +19% | Successful opening of Epic Universe on May 22nd |
| Parks EBITDA | +4% | Growth limited by soft opening costs at the new Epic park |
| Convergence revenue | +3.7% | Supported by high-teens growth in wireless revenue |
| Broadband RPU | +3.5% | Adoption of five-year price guarantee and 20% increase in share of new connects taking gig-plus speeds |
| Media advertising revenue | -7% | Volume and timing of sports content and tough political comparisons |
Earnings Call Themes & Trends
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Broadband competition | Intense | Remains intense; fixed wireless very active and fiber building more passings | Stable (elevated) |
| Wireless net adds | Prior best result | New record 378,000 lines | Accelerating |
| Broadband RPU growth | Healthy | 3.5%, expected to moderate | Decelerating |
| Peacock EBITDA losses | Larger losses | Loss of $100 million, ~$250M YoY improvement | Improving |
| Six growth drivers as share of revenue | 50% historically | Nearly 60%, heading toward 65-70% | Rising |
Q&A Summary
On broadband, can you give more details on the competitive landscape and how it influences the pace of improving quarterly broadband performance?
Dave Watson said the landscape remains intense with fixed wireless very active and fiber building more passings; the company is moving with urgency to get to the other side via all-in pricing, included gateway, free mobile line, lower everyday pricing, and the five-year price guarantee. It is too early to comment on impact beyond encouraging early connect activity, with half of eligible new connects selecting the five-year price guarantee and a 20% increase in share choosing premium gig speed.
Are you seeing the same involuntary (non-pay) disconnect headwind as peers, and is there a market difference where network upgrades (Project Genesis) are finished?
Dave Watson said non-pay saw only a slight, non-material uptick, balanced by stabilization in connects and voluntary churn versus Q1. On Genesis, the network upgrades are ahead of plan and moving quickly toward DOCSIS 4.0; gig-plus speeds are available everywhere and Wi-Fi is a key point of differentiation.
Can you discuss everyday pricing as a potential drag to RPU growth and whether broadband net adds are back to seasonal patterns?
Mike Cavanagh said the focus is on connects in the early stage with encouraging results; the company will aggressively make new packages available to the existing base through base management and retention. Jason Armstrong added RPU grew 3.5% and is expected to moderate over the next couple of quarters as more customers migrate, while still expecting healthy growth a year or two out. On seasonality, there has been a steady move toward more predictable seasonal activity, with Q3 a big back-to-school period.
Should we expect movement in convergence revenue growth in the back half, and what is the 2025 cash tax number? Also, how does the rest of the year play out for Peacock?
Jason Armstrong guided cash taxes to roughly $1 billion in 2025, and said convergence revenue will see some near-term pressure as RPU growth moderates and free wireless lines dilute the metric, setting up reacceleration at the one-to-two-year mark. Mike Cavanagh said Peacock revenue was up 18% with a $250M YoY EBITDA improvement; the NBA cost amortization (straight-lined over 11 years, with lower early cash costs and a working capital benefit) starts as the season begins in Q4, offset by the July/August $3 price increase and strong upfront.
What are you seeing in Orlando market dynamics, and what is the most underappreciated growth lever for Comcast?
Mike Cavanagh said Orlando is a very strong destination with both park operators investing heavily, and Epic is driving much higher per-caps; operating leverage will improve in the second half as soft-opening costs roll off. He pointed to the six growth businesses moving from 50% to 60% (and toward 65-70% post-Versant) of revenue as the underappreciated story, plus the parks pipeline, films, and Peacock.
What is your interest level in M&A beyond business services tuck-ins, and what about Versant's inorganic opportunities?
Brian Roberts said the bar for M&A is really high given the value-creation opportunities from running existing businesses well; the company evaluates opportunities with discipline and also balances the portfolio (e.g., the Sky Germany sale). Versant is tracking nicely to launch around the end of this year into next, with a leadership team that will have its own cash to invest in those businesses' future.
More on Comcast Corp
Reported 2025-07-31 · figures from the Comcast Corp Q2 2025 earnings call.
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