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COMCAST CORP (CMCSA)·Q2 2025 Earnings Summary

Executive Summary

  • Comcast delivered a clean beat on both revenue and adjusted EPS: revenue of $30.31B vs S&P Global consensus $29.80B*, and adjusted EPS of $1.25 vs $1.18*, with year-over-year adjusted EPS up 3.3% .
  • Strategic execution highlights included record wireless net additions (+378K lines), Media EBITDA up 9.3% (Peacock losses improved to -$101M from -$348M YoY), and Theme Parks revenue up 18.9% driven by the Epic Universe opening .
  • Management emphasized a go-to-market pivot in residential broadband (national “everyday pricing,” 1- and 5-year price guarantees, free mobile line for a year, premium unlimited wireless plan) to drive lower churn and higher LTV; near-term broadband ARPU growth expected to moderate as customers migrate to new packages .
  • Additional catalysts include a roughly $1B annual cash tax tailwind from newly enacted legislation and the NBA rights launch in Q4 (with Peacock price increases and a strong sports upfront positioning revenue momentum through 2026) .

What Went Well and What Went Wrong

What Went Well

  • Record quarter for wireless with 378K net line adds; penetration reached 14% of residential broadband base (8.5M lines), reinforcing convergence strategy. “Our wireless business had its best quarter ever, adding 378,000 lines” — Brian Roberts .
  • Media resilience and Peacock progress: Media revenue +1.8% and EBITDA +9.3%; Peacock revenue +18% to $1.2B and losses improved by ~$247M YoY to -$101M .
  • Theme Parks surge post Epic Universe opening: Parks revenue +18.9%, EBITDA +4.1%; management noted strong per-caps/attendance, minimal cannibalization, with operating leverage expected to improve over 2H25 .

What Went Wrong

  • Broadband headwinds persisted: Domestic broadband net losses of 226K in Q2 (seasonal and competitive pressures including fixed wireless/fiber); total Connectivity & Platforms customer relationships down 349K .
  • Studios profitability compressed: Studios EBITDA fell 31% YoY despite revenue +8% as higher programming/production and marketing costs offset revenue gains .
  • Domestic advertising softness: Media domestic advertising -7.2% YoY given sports timing and tough political comps (ex-sports/political trends more stable, but still a drag in Q2) .

Financial Results

MetricQ2 2024Q1 2025Q2 2025
Revenue ($USD Millions)$29,688 $29,887 $30,313
Adjusted EBITDA ($USD Millions)$10,171 $9,532 $10,283
EPS (GAAP, $)$1.00 $0.89 $2.98 (includes ~$9.4B Hulu gain)
Adjusted EPS ($)$1.21 $1.09 $1.25
Net Cash Provided by Operating Activities ($USD Millions)$4,724 $8,294 $7,815
Free Cash Flow ($USD Millions)$1,338 $5,421 $4,501

Segment revenue

Segment Revenue ($USD Millions)Q2 2024Q2 2025
Connectivity & Platforms (Total)$20,245 $20,389
- Residential Connectivity & Platforms$17,824 $17,814
- Business Services Connectivity$2,421 $2,575
Content & Experiences (Total)$10,057 $10,625
- Media$6,324 $6,440
- Studios$2,253 $2,432
- Theme Parks$1,975 $2,349

Segment adjusted EBITDA

Segment Adjusted EBITDA ($USD Millions)Q2 2024Q2 2025
Connectivity & Platforms (Total)$8,483 $8,526
- Residential Connectivity & Platforms$7,103 $7,082
- Business Services Connectivity$1,380 $1,444
Content & Experiences (Total)$1,949 $2,019
- Media$1,356 $1,482
- Studios$124 $85
- Theme Parks$632 $658

Margins and selected ratios

Margin/RatioQ2 2024Q2 2025
C&P Adjusted EBITDA Margin (Total)41.9% 41.8%
Residential C&P Adjusted EBITDA Margin39.9% 39.8%
Business Services Adjusted EBITDA Margin57.0% 56.1%

Key KPIs

KPIQ2 2024Q2 2025Net Adds/(Losses) in Q2 2025
Total C&P Customer Relationships (000s)51,696 51,156 (349)
Domestic Broadband Customers (000s, total)32,068 31,540 (226)
Total Domestic Wireless Lines (000s)7,199 8,527 +378
Total Domestic Video Customers (000s)13,199 11,771 (325)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Broadband ARPU growth2H25“Healthy ARPU growth” (Q1) Healthy but moderated near term as customers migrate to everyday pricing Lowered
Convergence revenue growthFY25Not specifiedNear-term pressure (free mobile line promo, moderated ARPU), positioning for reacceleration at 1–2 year mark Maintained near-term caution; medium-term positive
Wireless net additions2H25Acceleration expected (Q1) Expect continued acceleration of net line adds in coming quarters Maintained (positive)
Cash taxesFY25+Not specified~$1B annual tailwind for next several years from legislation Raised
Parks CapExFY25–FY27Elevated into Epic opening (Q1) Trend down for a couple of years post Epic; ramp back up approaching London park Lowered (near term)
Peacock pricingQ3–Q4 2025Prior increase (2024) referenced Additional $3 price increase rolling out July/Aug (new/existing subs) Raised
NBA rights cost timingQ4 2025 onwardN/ACosts begin in Q4 2025; straight-line accounting over 11 years; cash costs lower early years New disclosure

Earnings Call Themes & Trends

TopicQ4 2024 (Q-2)Q1 2025 (Q-1)Q2 2025 (Current)Trend
Broadband go-to-marketPreparing simplified bundles; include mobile with higher tiers Launched 5-year price lock; free mobile line; premium wireless plan Full national rollout of everyday pricing, price guarantees, mobile inclusion; early stabilization in churn/connects Execution ramping; early positive indicators
Convergence (wireless attach)Emphasized acceleration; 12% penetration YE’24 8.1M lines; 13% penetration; push harder Record +378K lines; 14% penetration; free line promo; premium unlimited uptake Stronger momentum
Parks (Epic Universe)Pre-opening costs; excitement building Opening 5/22; ~$100M pre-opening costs in Q1 Strong per-caps/attendance; scaling throughput, minimal cannibalization; leverage to improve Improving post-launch
Media/Peacock$1B loss improvement FY24; NBA coming Double-digit Peacock revenue; 41M paid subs; EBITDA loss improvement Revenue +18%; loss -$101M; price increase; strongest upfront; NBA starts Q4 Continued improvement; gearing for NBA
AI/technology initiativesProject Genesis; network virtualization; XB10 gateway Network upgrades; WiFi PowerBoost; platform innovation Upgraded operating system to Google AI to improve CX routing and personalization CX/automation accelerating
Tax/macroMacro uncertainty noted; resilient FCF No major macro impact; advertising cyclical risk ~$1B annual cash tax tailwind supporting U.S. investment Positive legislative tailwind

Management Commentary

  • “We delivered solid financial results in the second quarter, growing Adjusted EPS by 3% and generating $4.5 billion of free cash flow…wireless…best quarter ever, adding 378,000 lines…Epic Universe…positive impact on…Universal Orlando…Peacock continues to differentiate…excited…NBA coverage this fall.” — Brian L. Roberts .
  • “We’ve realigned our pricing strategy…consistent national pricing…four flagship speed tiers…everything included…lowered everyday pricing…1- and 5-year price guarantees…free Xfinity Mobile line for one year…premium unlimited mobile plan.” — Mike Cavanagh .
  • “Broadband RPU grew 3.5%…expected to moderate in the next couple of quarters as we migrate more customers onto new pricing…we still expect healthy broadband RPU growth over the balance of the year.” — Jason Armstrong .
  • “Epic is already driving higher per-cap spending and attendance across the entirety of Universal Orlando…minimal impact on attendance at Universal Studios Florida and Islands of Adventure.” — Mike Cavanagh .
  • “We estimate, on average, roughly $1 billion in annual cash tax benefit for the next several years, with much of the benefit relating to infrastructure investments.” — Jason Armstrong .

Q&A Highlights

  • Broadband competitive dynamics: Fixed wireless/fiber intensity persists; early signs of stabilization in connects and voluntary churn under new pricing; slight uptick in non-pay disconnects but not material .
  • Everyday pricing and ARPU: Healthy broadband ARPU growth expected but moderated near term as customers migrate; goal is durable base on market-based rates with lower churn and higher LTV .
  • Convergence revenue near-term: Some pressure from free line promo and moderated ARPU; setup for reacceleration at 1–2 years as promos roll off into paying relationships .
  • Parks trajectory: Epic Universe contributing to Orlando; operating leverage to improve across 2H25; international parks strong; Hollywood pressure to take “a couple more quarters” to lap .
  • Business Services and MVNO: Nitel tuck-in accretive; new T-Mobile MVNO for business to expand integrated mobile solutions; continued SMB/enterprise momentum .

Estimates Context

MetricQ2 2025 ConsensusQ2 2025 Actual
Revenue ($USD)$29,802,945,200*$30,313,000,000
Primary EPS ($)$1.18071*$1.25

Values retrieved from S&P Global.*

Guidance Changes Implications

  • The broadband pivot should improve customer durability and reduce churn, but investors should expect near-term ARPU growth moderation as packages reset; convergence monetization improves as “free line” cohorts roll to paid over 12–24 months .
  • The ~$1B annual cash tax tailwind and parks CapEx downshift support sustained FCF strength even as NBA rights costs begin in Q4; Peacock price increase and record sports upfront are designed to offset elevated sports programming costs .

Key Takeaways for Investors

  • Clear beat on revenue and adjusted EPS; resilient FCF supports continued buybacks/dividends (declared $0.33 per share for October) .
  • Wireless momentum is a tangible growth engine; convergence strategy is working (record net adds, higher premium plan uptake) and should underpin revenue/EBITDA over time .
  • Broadband headwinds remain but early signs from pricing/packaging pivot are encouraging; watch ARPU trajectory and churn trends through 2H25 back-to-school season .
  • Parks are a 2H25 leverage story post Epic opening; expect improved margins as throughput scales, with medium-term CapEx easing before London ramp .
  • Peacock’s path to improved monetization continues (price increases, strong upfront, NBA launch); near-term costs rise, but strategic positioning should lift subs, ad yield, and long-term profitability .
  • Legislative cash tax tailwind (~$1B annually) is underappreciated and enhances capital allocation flexibility for network upgrades and share returns .
  • Watch Business Services (enterprise solutions, Nitel integration, T-Mobile MVNO) as a steady mid-single-digit growth contributor with high margins .