Comcast Corporation released its second-quarter 2025 earnings report on July 31, 2025, before the market opened, detailing a solid financial performance despite ongoing challenges in its broadband segment.
Here are the key highlights from the report:
- Earnings Per Share (EPS): Comcast reported an adjusted EPS of $1.25, surpassing the Zacks Consensus Estimate of $1.18 by 5.93%. This marked a 3% increase from the $1.21 adjusted EPS in the year-ago quarter. On a GAAP basis, EPS was significantly higher at $2.84, driven by a $9.4 billion gain from the sale of Comcast’s stake in Hulu to Disney, compared to $1 in Q2 2024.
- Revenue: Total revenue reached $30.31 billion, a 2.1% increase year-over-year, beating the Zacks Consensus Estimate of $29.81 billion. This growth was driven by strong performances in the Content and Experiences segment, particularly theme parks, despite a decline in domestic broadband subscribers.
- Adjusted EBITDA: Adjusted EBITDA rose 1% to $10.28 billion, reflecting operational efficiency despite pressures from broadband losses and promotional costs.
- Free Cash Flow and Capital Allocation: Comcast generated $4.5 billion in free cash flow, enabling the return of $2.9 billion to shareholders through dividends ($1.2 billion) and share repurchases. This underscores the company’s commitment to shareholder value while investing in growth areas.
- Broadband: Comcast lost 226,000 domestic broadband customers, primarily residential, continuing a trend of subscriber declines due to intense competition from fixed wireless offerings by telecom rivals like T-Mobile and Verizon. Despite the loss, broadband revenue grew 1.7% to $6.56 billion, supported by higher average revenue per user (ARPU). The company’s strategic pivot to new pricing plans aims to address this slowdown.
- Wireless: The wireless business had its best quarter ever, adding a record 378,000 lines, bringing total Xfinity Mobile lines to 8.5 million (14% penetration of broadband customers). Revenue increased 16% to $1.12 billion, driven by promotions offering free unlimited mobile lines to broadband customers.
- Business Services: Revenue grew by mid-single digits, bolstered by the April 1 acquisition of Nitel, which added a few hundred basis points to growth, though its near-term EBITDA impact was minimal. Margins remained strong at approximately 57%.
- Revenue: This segment, including NBCUniversal, film studios, and theme parks, saw a 5.6% revenue increase to $10.63 billion.
- Theme Parks: Revenue surged 19% to $2.35 billion, driven by the grand opening of Epic Universe in Orlando on May 22, 2025, which attracted thousands of visitors and generated strong guest reactions. However, Universal Hollywood faced revenue challenges due to wildfire impacts and slower visitor recovery.
- Film Studios: Revenue rose 8% to $2.43 billion, propelled by the June release of How to Train Your Dragon, which grossed over $600 million globally, and Jurassic World Rebirth in July, contributing to the franchise’s cumulative $6 billion box office.
- Media (NBCUniversal): Revenue increased 2% to $6.44 billion, though domestic advertising revenue fell 7% to $1.85 billion due to a weak pay-TV ad market. Peacock, however, showed improvement, with losses narrowing to $101 million from $348 million in Q2 2024, and paid subscribers reaching 41 million, reflecting double-digit revenue growth.