Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Verizon Communications Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Net income	17,608)	17,949)	12,095)	21,748)	22,618)
Depreciation and amortization expense	18,349)	17,892)	17,624)	17,099)	16,206)
Employee retirement benefits	1,025)	(52)	1,206)	(2,046)	(3,391)
Deferred income taxes	2,340)	815)	2,388)	2,973)	4,264)
Provision for expected credit losses	2,349)	2,338)	2,214)	1,611)	789)
Equity in (earnings) losses of unconsolidated businesses, net of dividends received	42)	75)	84)	(10)	36)
Verizon Business Group goodwill impairment	—)	—)	5,841)	—)	—)
Accounts receivable	(2,513)	(2,565)	(2,198)	(1,978)	(1,592)
Inventories	(232)	(196)	287)	627)	(905)
Prepaid expenses and other	(1,394)	(626)	(435)	928)	150)
Accounts payable and accrued liabilities and Other current liabilities	1,819)	1,109)	2,079)	(33)	1,457)
Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses	(2,320)	(2,278)	(267)	(456)	(890)
Changes in device payment plan agreement non-current receivables	(2,485)	(538)	(2,975)	(4,919)	(2,438)
Net debt extinguishment (gains) losses	(368)	(385)	(308)	1,077)	3,541)
Loss on spectrum licenses	—)	—)	—)	—)	223)
Gain on disposition of Media business	—)	—)	—)	—)	(1,051)
Other, net	597)	1,096)	(427)	64)	(368)
Other, net	(2,256)	173)	(3,710)	(3,778)	(93)
Adjustments to reconcile net income to net cash provided by operating activities	19,529)	18,963)	25,380)	15,393)	16,921)
Net cash provided by operating activities	37,137)	36,912)	37,475)	37,141)	39,539)
Capital expenditures, including capitalized software	(17,011)	(17,090)	(18,767)	(23,087)	(20,286)
Cash (paid) received related to acquisitions of businesses, net of cash acquired	—)	—)	(30)	248)	(4,065)
Acquisitions of wireless licenses	(450)	(900)	(5,796)	(3,653)	(47,596)
Proceeds from disposition of business	—)	—)	—)	33)	4,122)
Other, net	801)	(684)	1,161)	(2,203)	672)
Net cash used in investing activities	(16,660)	(18,674)	(23,432)	(28,662)	(67,153)
Proceeds from long-term borrowings	18,268)	3,146)	2,018)	7,074)	33,034)
Proceeds from asset-backed long-term borrowings	9,338)	12,422)	6,594)	10,732)	8,383)
Repayments of long-term borrowings and finance lease obligations	(11,352)	(11,854)	(6,181)	(8,616)	(14,063)
Repayments of asset-backed long-term borrowings	(8,437)	(8,490)	(4,443)	(4,948)	(4,800)
Dividends paid	(11,481)	(11,249)	(11,025)	(10,805)	(10,445)
Net debt related costs	(97)	(259)	(73)	(366)	(2,309)
Other, net	(1,852)	(816)	(1,547)	(1,600)	(1,523)
Other, net	(1,949)	(1,075)	(1,620)	(1,966)	(3,832)
Net cash provided by (used in) financing activities	(5,613)	(17,100)	(14,657)	(8,529)	8,277)
Increase (decrease) in cash, cash equivalents and restricted cash	14,864)	1,138)	(614)	(50)	(19,337)
Cash, cash equivalents and restricted cash, beginning of period	4,635)	3,497)	4,111)	4,161)	23,498)
Cash, cash equivalents and restricted cash, end of period	19,499)	4,635)	3,497)	4,111)	4,161)

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

The cash flow statement reveals a complex picture of financial activity over the five-year period. While net cash provided by operating activities remains relatively stable, significant fluctuations are observed in investing and financing activities, leading to considerable volatility in the overall cash position.

Operating Activities: Net cash provided by operating activities demonstrates a moderate decline from US$39.539 billion in 2021 to US$37.137 billion in 2025. This stability is supported by consistent net income, although net income itself experienced a dip in 2023 before recovering. Adjustments to reconcile net income to net cash provided by operating activities generally trended upward, peaking in 2023 at US$25.380 billion, before decreasing slightly in subsequent years. Changes in working capital items, particularly accounts receivable, inventories, prepaid expenses, and current liabilities, exhibit considerable variability, impacting the overall operating cash flow.
Investing Activities: Net cash used in investing activities is substantial throughout the period, consistently exceeding US$16 billion annually. A significant decrease is observed from US$67.153 billion in 2021 to US$16.660 billion in 2025. This reduction is primarily driven by a substantial decrease in acquisitions of wireless licenses, which fell from US$47.596 billion in 2021 to US$450 million in 2025. Capital expenditures remain relatively consistent, fluctuating between US$17 billion and US$23 billion annually. Proceeds from the disposition of businesses contributed positively in 2021 and 2022, but were negligible in later years.
Financing Activities: Net cash provided by (used in) financing activities demonstrates significant volatility. A positive cash flow of US$8.277 billion in 2021 transitioned to a net cash outflow of US$17.100 billion in 2024. This is largely attributable to changes in long-term debt. Proceeds from long-term borrowings were high in 2021 and 2022, but decreased significantly in subsequent years, while repayments of long-term borrowings remained consistently high. Dividend payments consistently represent a substantial cash outflow, remaining above US$10 billion each year. The net cash flow from financing activities became significantly negative in 2023 and 2024, before improving slightly in 2025.
Cash Position: The overall cash position experienced a substantial decrease in 2021, followed by relatively stable levels until a significant increase in 2025. The decrease in cash in 2021 was US$19.337 billion, while the increase in 2025 was US$14.864 billion. This volatility reflects the combined impact of operating, investing, and financing activities. The ending cash balance increased substantially in 2025, reaching US$19.499 billion, representing a significant improvement from the US$4.161 billion balance in 2021.
Specific Items: A significant goodwill impairment charge related to the Verizon Business Group was recorded in 2023, amounting to US$5.841 billion. Employee retirement benefits showed a negative impact in 2021 and 2022, but became positive in 2023 and 2025. Deferred income taxes fluctuated, with a decrease in 2024. Provision for expected credit losses consistently increased over the period. The gain on disposition of the Media business impacted 2021 negatively.

In summary, the company demonstrates a stable operating cash flow, but its overall cash position is heavily influenced by strategic decisions related to investments, debt management, and shareholder returns. The significant changes in investing and financing activities highlight a dynamic capital allocation strategy.

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Verizon Communications Inc. (NYSE:VZ)

Cash Flow Statement