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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


(Mark One)
☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-08610

AT&T INC.

Incorporated under the laws of the State of Delaware

I.R.S. Employer Identification Number 43-1301883

208 S. Akard St., Dallas, Texas 75202

Telephone Number: (210) 821-4105

Securities registered pursuant to Section 12(b) of the Act:


		Name of each exchange
Title of each class	Trading Symbol(s)	on which registered
Common Shares (Par Value $1.00 Per Share)	T	New York Stock Exchange
Depositary Shares, each representing a 1/1000th interest in a share of 5.000% Perpetual Preferred Stock, Series A	T PRA	New York Stock Exchange
Depositary Shares, each representing a 1/1000th interest in a share of 4.750% Perpetual Preferred Stock, Series C	T PRC	New York Stock Exchange

AT&T Inc. 3.550% Global Notes due November 18, 2025	T 25B	New York Stock Exchange
AT&T Inc. 3.500% Global Notes due December 17, 2025	T 25	New York Stock Exchange
AT&T Inc. 0.250% Global Notes due March 4, 2026	T 26E	New York Stock Exchange
AT&T Inc. 1.800% Global Notes due September 5, 2026	T 26D	New York Stock Exchange
AT&T Inc. 2.900% Global Notes due December 4, 2026	T 26A	New York Stock Exchange
AT&T Inc. 1.600% Global Notes due May 19, 2028	T 28C	New York Stock Exchange
AT&T Inc. 2.350% Global Notes due September 5, 2029	T 29D	New York Stock Exchange
AT&T Inc. 4.375% Global Notes due September 14, 2029	T 29B	New York Stock Exchange
AT&T Inc. 2.600% Global Notes due December 17, 2029	T 29A	New York Stock Exchange
AT&T Inc. 0.800% Global Notes due March 4, 2030	T 30B	New York Stock Exchange
AT&T Inc. 3.150% Global Notes due June 1, 2030	T 30C	New York Stock Exchange
AT&T Inc. 3.950% Global Notes due April 30, 2031	T 31F	New York Stock Exchange
AT&T Inc. 2.050% Global Notes due May 19, 2032	T 32A	New York Stock Exchange


		Name of each exchange
Title of each class	Trading Symbol(s)	on which registered
AT&T Inc. 3.550% Global Notes due December 17, 2032	T 32	New York Stock Exchange
AT&T Inc. 3.600% Global Notes due June 1, 2033	T 33A	New York Stock Exchange
AT&T Inc. 5.200% Global Notes due November 18, 2033	T 33	New York Stock Exchange
AT&T Inc. 3.375% Global Notes due March 15, 2034	T 34	New York Stock Exchange
AT&T Inc. 4.300% Global Notes due November 18, 2034	T 34C	New York Stock Exchange
AT&T Inc. 2.450% Global Notes due March 15, 2035	T 35	New York Stock Exchange
AT&T Inc. 3.150% Global Notes due September 4, 2036	T 36A	New York Stock Exchange
AT&T Inc. 4.050% Global Notes due June 1, 2037	T 37B	New York Stock Exchange
AT&T Inc. 2.600% Global Notes due May 19, 2038	T 38C	New York Stock Exchange
AT&T Inc. 1.800% Global Notes due September 14, 2039	T 39B	New York Stock Exchange
AT&T Inc. 7.000% Global Notes due April 30, 2040	T 40	New York Stock Exchange
AT&T Inc. 4.250% Global Notes due June 1, 2043	T 43	New York Stock Exchange
AT&T Inc. 4.875% Global Notes due June 1, 2044	T 44	New York Stock Exchange
AT&T Inc. 4.000% Global Notes due June 1, 2049	T 49A	New York Stock Exchange
AT&T Inc. 4.250% Global Notes due March 1, 2050	T 50	New York Stock Exchange
AT&T Inc. 3.750% Global Notes due September 1, 2050	T 50A	New York Stock Exchange
AT&T Inc. 5.350% Global Notes due November 1, 2066	TBB	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

At July 21, 2025, there were 7,150,385,480 common shares outstanding.

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements


AT&T INC.
CONSOLIDATED STATEMENTS OF INCOME
Dollars in millions except per share amounts
(Unaudited)
	Three months ended				Six months ended
	June 30,				June 30,
	2025		2024		2025		2024
Operating Revenues
Service	$	25,292	$	25,006	$	50,430	$	49,848
Equipment	5,555		4,791		11,043		9,977
Total operating revenues	30,847		29,797		61,473		59,825

Operating Expenses
Cost of revenues
Equipment	5,738		4,815		11,432		9,958

Other cost of revenues (exclusive of depreciation and amortization shown separately below)	6,412		6,627		12,751		13,438
Selling, general and administrative	6,945		7,043		14,090		14,064
Asset impairments and abandonments and restructuring	—		480		504		639
Depreciation and amortization	5,251		5,072		10,441		10,119
Total operating expenses	24,346		24,037		49,218		48,218
Operating Income	6,501		5,760		12,255		11,607
Other Income (Expense)
Interest expense	(1,655)		(1,699)		(3,313)		(3,423)
Equity in net income of affiliates	485		348		1,925		643
Other income (expense) — net	767		682		1,222		1,133
Total other income (expense)	(403)		(669)		(166)		(1,647)
Income Before Income Taxes	6,098		5,091		12,089		9,960
Income tax expense	1,237		1,142		2,536		2,260


Net Income	4,861		3,949		9,553		7,700
Net Income Attributable to Noncontrolling Interest	(361)		(352)		(702)		(658)
Net Income Attributable to AT&T	$	4,500	$	3,597	$	8,851	$	7,042
Preferred Stock Dividends and Redemption Gain	(36)		(51)		8		(101)
Net Income Attributable to Common Stock	$	4,464	$	3,546	$	8,859	$	6,941


Basic Earnings Per Share Attributable to Common Stock	$	0.62	$	0.49	$	1.22	$	0.96


Diluted Earnings Per Share Attributable to Common Stock	$	0.62	$	0.49	$	1.22	$	0.96
Weighted Average Number of Common Shares Outstanding — Basic (in millions)	7,209		7,196		7,211		7,194
Weighted Average Number of Common Shares Outstanding — with Dilution (in millions)	7,219		7,198		7,221		7,195

See Notes to Consolidated Financial Statements.


AT&T INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Dollars in millions
(Unaudited)
	Three months ended				Six months ended
	June 30,				June 30,
	2025		2024		2025		2024
Net income	$	4,861	$	3,949	$	9,553	$	7,700
Other comprehensive income (loss), net of tax:
Foreign currency:
Translation adjustment, net of taxes of $61, $(69), $71 and $(61)	188		(221)		209		(192)
Reclassification adjustment included in net income, net of taxes of $0, $(14), $0 and $(14)	—		127		—		127
Securities:
Net unrealized gains (losses), net of taxes of $1, $1, $4 and $(1)	2		(7)		12		(17)
Reclassification adjustment included in net income, net of taxes of $1, $1, $1 and $3	3		4		4		10
Derivative instruments:
Net unrealized gains (losses), net of taxes of $32, $(65), $(171) and $(16)	96		(260)		(528)		(49)
Reclassification adjustment included in net income, net of taxes of $3, $4, $7 and $7	11		10		22		22

Defined benefit postretirement plans:

Amortization of net prior service credit included in net income, net of taxes of $(114), $(123), $(229) and $(246)	(358)		(380)		(714)		(761)

Other comprehensive income (loss)	(58)		(727)		(995)		(860)
Total comprehensive income	4,803		3,222		8,558		6,840
Less: Total comprehensive income attributable to noncontrolling interest	(361)		(352)		(702)		(658)
Total Comprehensive Income Attributable to AT&T	$	4,442	$	2,870	$	7,856	$	6,182

See Notes to Consolidated Financial Statements.


AT&T INC.
CONSOLIDATED BALANCE SHEETS
Dollars in millions except per share amounts
	June 30,		December 31,
	2025		2024
Assets	(Unaudited)
Current Assets
Cash and cash equivalents	$	10,499	$	3,298
Accounts receivable – net of related allowances for credit loss of $392 and $375	8,844		9,638
Inventories	2,357		2,270
Prepaid and other current assets	17,606		15,962
Total current assets	39,306		31,168
Property, plant and equipment	356,188		350,914
Less: accumulated depreciation and amortization	(227,094)		(222,043)
Property, Plant and Equipment – Net	129,094		128,871
Goodwill – Net	63,432		63,432
Licenses – Net	127,543		127,035
Other Intangible Assets – Net	5,255		5,255
Investments in and Advances to Equity Affiliates	1,011		295
Operating Lease Right-Of-Use Assets	21,494		20,909
Other Assets	18,356		17,830
Total Assets	$	405,491	$	394,795
Liabilities and Stockholders’ Equity
Current Liabilities
Debt maturing within one year	$	9,254	$	5,089
Accounts payable and accrued liabilities	33,289		35,657
Advanced billings and customer deposits	3,999		4,099
Dividends payable	2,023		2,027
Total current liabilities	48,565		46,872
Long-Term Debt	123,057		118,443
Deferred Credits and Other Noncurrent Liabilities
Noncurrent deferred tax liabilities	59,786		58,939
Postemployment benefit obligation	9,079		9,025
Operating lease liabilities	17,762		17,391
Other noncurrent liabilities	23,865		23,900
Total deferred credits and other noncurrent liabilities	110,492		109,255
Redeemable Noncontrolling Interest	1,983		1,980
Stockholders’ Equity
Preferred stock ($1 par value, 10,000,000 authorized at June 30, 2025 and December 31, 2024):
Series A (48,000 issued and outstanding at June 30, 2025 and December 31, 2024)	—		—
Series B (20,000 issued and 0 outstanding at June 30, 2025 and 20,000 issued and outstanding December 31, 2024)	—		—
Series C (70,000 issued and outstanding at June 30, 2025 and December 31, 2024)	—		—
Common stock ($1 par value, 14,000,000,000 authorized at June 30, 2025 and December 31, 2024: issued 7,620,748,598 at June 30, 2025 and December 31, 2024)	7,621		7,621
Additional paid-in capital	106,381		109,108
Retained earnings	6,680		1,871
Treasury stock (459,382,925 at June 30, 2025 and 444,853,148 at December 31, 2024, at cost)	(15,210)		(15,023)
Accumulated other comprehensive income (loss)	(200)		795
Noncontrolling interest	16,122		13,873
Total stockholders’ equity	121,394		118,245
Total Liabilities and Stockholders’ Equity	$	405,491	$	394,795

See Notes to Consolidated Financial Statements.


AT&T INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Dollars in millions
(Unaudited)
	Six months ended
	June 30,
	2025		2024
Operating Activities
Net Income	$	9,553	$	7,700
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	10,441		10,119
Provision for uncollectible accounts	1,037		942
Asset impairments and abandonments and restructuring	504		639
Pension and postretirement benefit expense (credit)	(794)		(941)

Net (gain) loss on investments	(31)		185
Changes in operating assets and liabilities:
Receivables	(247)		130
Equipment installment receivables and related sales	1,115		(320)
Contract asset and cost deferral	(299)		321
Inventories, prepaid and other current assets	(317)		419
Accounts payable and other accrued liabilities	(4,440)		(4,761)
Changes in income taxes	1,663		1,976
Postretirement claims and contributions	(103)		(93)
Other - net	730		324
Total adjustments	9,259		8,940
Net Cash Provided by Operating Activities	18,812		16,640
Investing Activities
Capital expenditures	(9,174)		(8,118)
Acquisitions, net of cash acquired	(48)		(270)
Dispositions	40		14
Distributions from DIRECTV in excess of cumulative equity in earnings	—		586
(Purchases), sales and settlements of securities and investments - net	(1,084)		1,147
Other - net	(778)		(336)


Net Cash Used in Investing Activities	(11,044)		(6,977)
Financing Activities
Net change in short-term borrowings with original maturities of three months or less	—		2,686
Issuance of other short-term borrowings	—		491
Repayment of other short-term borrowings	—		(2,487)
Issuance of long-term debt	6,429		2
Repayment of long-term debt	(1,620)		(6,910)

Payment of vendor financing	(423)		(1,391)

Redemption of preferred stock	(2,075)		—
Purchase of treasury stock	(1,179)		(159)
Issuance of treasury stock	17		—
Issuance of preferred interests in subsidiary	2,221		—

Dividends paid	(4,135)		(4,133)

Other - net	167		(1,392)
Net Cash Used in Financing Activities	(598)		(13,293)






Net increase (decrease) in cash and cash equivalents and restricted cash	$	7,170	$	(3,630)
Cash and cash equivalents and restricted cash beginning of year	3,406		6,833
Cash and Cash Equivalents and Restricted Cash End of Period	$	10,576	$	3,203
See Notes to Consolidated Financial Statements.


AT&T INC.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
Dollars and shares in millions except per share amounts
(Unaudited)
	Three months ended						Six months ended
	June 30, 2025			June 30, 2024			June 30, 2025			June 30, 2024
	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount
Preferred Stock - Series A
Balance at beginning of period	—	$	—	—	$	—	—	$	—	—	$	—

Balance at end of period	—	$	—	—	$	—	—	$	—	—	$	—
Preferred Stock - Series B
Balance at beginning of period	—	$	—	—	$	—	—	$	—	—	$	—

Balance at end of period	—	$	—	—	$	—	—	$	—	—	$	—
Preferred Stock - Series C
Balance at beginning of period	—	$	—	—	$	—	—	$	—	—	$	—

Balance at end of period	—	$	—	—	$	—	—	$	—	—	$	—
Common Stock
Balance at beginning of period	7,621	$	7,621	7,621	$	7,621	7,621	$	7,621	7,621	$	7,621


Balance at end of period	7,621	$	7,621	7,621	$	7,621	7,621	$	7,621	7,621	$	7,621
Additional Paid-In Capital
Balance at beginning of period		$	106,302		$	111,599		$	109,108		$	114,519
Redemption of preferred stock		—			—			(2,165)			—

Preferred stock dividends		—			—			—			(98)
Common stock dividends ($0.2775, $0.2775, $0.5550 and $0.5550 per share)		—			(12)			—			(2,015)

Issuance of treasury stock		(4)			(3)			(456)			(416)
Share-based payments		83			83			(106)			(183)
Redemption or reclassification of interest held by noncontrolling owners		—			(152)			—			(292)
Balance at end of period		$	106,381		$	111,515		$	106,381		$	111,515
Retained Earnings (Deficit)
Balance at beginning of period		$	4,215		$	(1,570)		$	1,871		$	(5,015)


Net income attributable to AT&T		4,500			3,597			8,851			7,042
Preferred stock redemption gain		—			—			90			—
Preferred stock dividends		(35)			(36)			(121)			(36)
Common stock dividends ($0.2775, $0.2775, $0.5550 and $0.5550 per share)		(2,000)			(1,989)			(4,011)			(1,989)
Balance at end of period		$	6,680		$	2		$	6,680		$	2

See Notes to Consolidated Financial Statements.


AT&T INC.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - continued
Dollars and shares in millions except per share amounts
(Unaudited)
	Three months ended						Six months ended
	June 30, 2025			June 30, 2024			June 30, 2025			June 30, 2024
	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount
Treasury Stock
Balance at beginning of period	(425)	$	(14,252)	(451)	$	(15,277)	(445)	$	(15,023)	(471)	$	(16,128)
Repurchase and acquisition of common stock	(34)	(968)		—	(2)		(43)	(1,186)		(9)	(159)
Reissuance of treasury stock	—	10		—	11		29	999		29	1,019
Balance at end of period	(459)	$	(15,210)	(451)	$	(15,268)	(459)	$	(15,210)	(451)	$	(15,268)
Accumulated Other Comprehensive Income (Loss) Attributable to AT&T, net of tax
Balance at beginning of period		$	(142)		$	2,167		$	795		$	2,300
Other comprehensive income (loss) attributable to AT&T		(58)			(727)			(995)			(860)
Balance at end of period		$	(200)		$	1,440		$	(200)		$	1,440
Noncontrolling Interest1
Balance at beginning of period		$	16,114		$	14,080		$	13,873		$	14,145


Net income attributable to noncontrolling interest		326			317			631			587
Issuance and acquisition by noncontrolling owners		—			—			2,221			—
Redemption of noncontrolling interest		—			(41)			—			(58)
Distributions		(318)			(319)			(603)			(637)

Balance at end of period		$	16,122		$	14,037		$	16,122		$	14,037
Total Stockholders’ Equity at beginning of period		$	119,858		$	118,620		$	118,245		$	117,442
Total Stockholders’ Equity at end of period		$	121,394		$	119,347		$	121,394		$	119,347
1Excludes redeemable noncontrolling interest

See Notes to Consolidated Financial Statements.

AT&T INC.

JUNE 30, 2025

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Dollars in millions except per share amounts

NOTE 1. PREPARATION OF INTERIM FINANCIAL STATEMENTS

Basis of Presentation Throughout this document, AT&T Inc. is referred to as “we,” “AT&T” or the “Company.” The consolidated financial statements include the accounts of the Company and subsidiaries and affiliates which we control. AT&T is a holding company whose subsidiaries and affiliates operate worldwide in the telecommunications and technology industries. You should read this document in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2024. The results for the interim periods are not necessarily indicative of those for the full year. These consolidated financial statements include all adjustments that are necessary to present fairly the results for the presented interim periods, consisting of normal recurring accruals and other items.

The consolidated financial statements include our controlled subsidiaries, as well as variable interest entities (VIE) where we are deemed to be the primary beneficiary. All significant intercompany transactions are eliminated in consolidation. Investments in entities that we do not control but have significant influence are accounted for under the equity method.

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions, including estimates of fair value, probable losses and expenses, that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Certain prior period amounts have been conformed to the current period’s presentation providing further disaggregation of activities within Cash from Operations in our consolidated statements of cash flows and additional revenue categories for our Business Wireline and Consumer Wireline business units (see Note 5).

Stock Repurchase Program In December 2024, the Board of Directors authorized the repurchase of up to $10,000 of AT&T common stock. We began buying back stock under this program in the second quarter of 2025. For the six months ended June 30, 2025, we had repurchased approximately 34 million shares totaling $958 under this authorization, excluding brokerage fees and the one percent excise tax imposed by the Inflation Reduction Act of 2022.

To implement repurchase authorizations, we use open market repurchase programs, relying on Rule 10b5-1 of the Securities Exchange Act of 1934 where feasible.

Tax Legislation On July 4, 2025, the One Big Beautiful Bill Act was enacted, which restores or makes permanent certain expiring business tax provisions from the Tax Cuts and Jobs Act of 2017. We do not anticipate the legislation to materially impact our income tax expense, but expect that it will have a material impact on cash taxes paid relative to our expectations.

NOTE 2. EARNINGS PER SHARE

A reconciliation of the numerators and denominators of basic and diluted earnings per share is shown in the table below:


	Three months ended				Six months ended
	June 30,				June 30,
	2025		2024		2025		2024
Numerators
Numerator for basic earnings per share:







Net Income Attributable to Common Stock	$	4,464	$	3,546	$	8,859	$	6,941


Dilutive impact of share-based payment	2		—		6		—
Numerator for diluted earnings per share	$	4,466	$	3,546	$	8,865	$	6,941
Denominators (000,000)
Denominator for basic earnings per share:
Weighted average number of common shares outstanding	7,209		7,196		7,211		7,194


Dilutive impact of share-based payment (in shares)	10		2		10		1
Denominator for diluted earnings per share	7,219		7,198		7,221		7,195

AT&T INC.

JUNE 30, 2025

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

NOTE 3. OTHER COMPREHENSIVE INCOME

Changes in the balances of each component included in accumulated other comprehensive income (OCI) are presented below. All amounts are net of tax.


	Foreign Currency Translation Adjustment			Net Unrealized Gains (Losses) on Securities			Net Unrealized Gains (Losses) on Derivative Instruments			Defined Benefit Postretirement Plans			Accumulated Other Comprehensive Income (Loss)
Balance as of December 31, 2024	$	(1,755)		$	(46)		$	(604)		$	3,200		$	795
Other comprehensive income (loss) before reclassifications	209			12			(528)			—			(307)
Amounts reclassified from accumulated OCI	—		1	4		1	22		2	(714)		3	(688)
Net other comprehensive income (loss)	209			16			(506)			(714)			(995)
Balance as of June 30, 2025	$	(1,546)		$	(30)		$	(1,110)		$	2,486		$	(200)

	Foreign Currency Translation Adjustment			Net Unrealized Gains (Losses) on Securities			Net Unrealized Gains (Losses) on Derivative Instruments			Defined Benefit Postretirement Plans			Accumulated Other Comprehensive Income (Loss)
Balance as of December 31, 2023	$	(1,337)		$	(57)		$	(1,029)		$	4,723		$	2,300
Other comprehensive income (loss) before reclassifications	(192)			(17)			(49)			—			(258)
Amounts reclassified from accumulated OCI	127		1	10		1	22		2	(761)		3	(602)
Net other comprehensive income (loss)	(65)			(7)			(27)			(761)			(860)
Balance as of June 30, 2024	$	(1,402)		$	(64)		$	(1,056)		$	3,962		$	1,440
1(Gains) losses are included in “Other income (expense) - net” in the consolidated statements of income.
2(Gains) losses are primarily included in “Interest expense” in the consolidated statements of income (see Note 7).
3The amortization of prior service credit associated with postretirement benefits are included in “Other income (expense) - net” in the consolidated statements of income (see Note 6).

NOTE 4. SEGMENT INFORMATION

Our segments are comprised of strategic business units or other operations that offer products and services to different customer segments over various technology platforms and/or in different geographies that are managed accordingly. We have two reportable segments: Communications and Latin America.

Our chief operating decision maker (CODM) is our Chairman of the Board, Chief Executive Officer and President. Our CODM uses operating income to evaluate performance and allocate resources, including capital allocations, when managing the business. Our CODM manages operations through the review of actual and forecasted “Operations and Support Expenses” information at a segment and business unit level, with Communications and Latin America segments primarily evaluated on a direct cost basis and comprised of equipment, compensation, network and technology, sales, advertising and other costs.

Additionally, business unit expenses within the Communications segment include direct and shared costs. Direct costs are incurred in support of products and services offered by the business units, such as equipment costs (predominantly wireless devices), network access, rents, leases, sales support, customer provisioning and commission expenses. Shared costs amongst the business units generally include information technology, network engineering and construction costs, advertising and other general and administrative expenses.

AT&T INC.

JUNE 30, 2025

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

The Communications segment provides wireless and wireline telecom and broadband services to consumers located in the U.S. and businesses globally. Our business strategies reflect integrated product offerings that cut across product lines and utilize shared assets. This segment contains the following business units:

•Mobility provides nationwide wireless service and equipment.

•Business Wireline provides advanced ethernet-based fiber services, fixed wireless services, IP Voice and managed professional services, as well as legacy voice and data services and related equipment, to business customers.

•Consumer Wireline provides broadband services, including fiber connections that provide multi-gig services, and our fixed wireless access product (AT&T Internet Air or “AIA”) that provides internet services delivered over our 5G wireless network, to residential customers in select locations. Consumer Wireline also provides legacy telephony voice communication services.

The Latin America segment provides wireless services and equipment in Mexico.

Corporate and Other reconciles our segment results to consolidated operating income and income before income taxes.

Corporate includes:

•DTV-related retained costs, which are costs previously allocated to the Video business that were retained after the transaction, net of reimbursements from DIRECTV Entertainment Holdings, LLC (DIRECTV) under transition service agreements.

•Parent administration support, which includes costs borne by AT&T where the business units do not influence decision making.

•Securitization fees associated with our sales of receivables (see Note 8).

•Value portfolio, which are businesses no longer integral to our operations or which we no longer actively market.

Other items consist of:

•Certain significant items, which includes items associated with the merger and integration of acquired or divested businesses, including amortization of intangible assets, employee separation charges associated with voluntary and/or strategic offers, asset impairments and abandonments and restructuring, and other items for which the segments are not being evaluated.

“Interest expense,” “Other income (expense) – net” and “Equity in net income of affiliates” are managed only on a total company basis and are, accordingly, reflected only in consolidated results.

AT&T INC.

JUNE 30, 2025

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts


For the three months ended June 30, 2025
	Revenues		Operations and Support Expenses		Depreciation and Amortization		Operating Income (Loss)
Communications
Mobility	$	21,845	$	12,358	$	2,556	$	6,931
Business Wireline	4,313		2,993		1,521		(201)
Consumer Wireline	3,541		2,248		958		335
Total Communications	29,699		17,599		5,035		7,065
Latin America	1,054		853		155		46
Segment Total	30,753		18,452		5,190		7,111
Corporate and Other
Corporate:
DTV-related retained costs	—		57		50		(107)
Parent administration support	(2)		422		2		(426)
Securitization fees	30		174		—		(144)
Value portfolio	66		11		—		55
Total Corporate	94		664		52		(622)
Certain significant items	—		(21)		9		12
Total Corporate and Other	94		643		61		(610)
AT&T Inc.	$	30,847	$	19,095	$	5,251	$	6,501


For the three months ended June 30, 2024
	Revenues		Operations and Support Expenses		Depreciation and Amortization		Operating Income (Loss)
Communications
Mobility	$	20,480	$	11,285	$	2,476	$	6,719
Business Wireline	4,755		3,267		1,386		102
Consumer Wireline	3,347		2,249		914		184
Total Communications	28,582		16,801		4,776		7,005
Latin America	1,103		925		172		6
Segment Total	29,685		17,726		4,948		7,011
Corporate and Other
Corporate:
DTV-related retained costs	—		116		102		(218)
Parent administration support	—		443		2		(445)
Securitization fees	29		150		—		(121)
Value portfolio	83		25		5		53
Total Corporate	112		734		109		(731)
Certain significant items	—		505		15		(520)
Total Corporate and Other	112		1,239		124		(1,251)
AT&T Inc.	$	29,797	$	18,965	$	5,072	$	5,760

AT&T INC.

JUNE 30, 2025

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts


For the six months ended June 30, 2025
	Revenues		Operations and Support Expenses		Depreciation and Amortization		Operating Income (Loss)
Communications
Mobility	$	43,415	$	24,662	$	5,082	$	13,671
Business Wireline	8,781		6,061		3,019		(299)
Consumer Wireline	7,063		4,472		1,907		684
Total Communications	59,259		35,195		10,008		14,056
Latin America	2,025		1,631		305		89
Segment Total	61,284		36,826		10,313		14,145
Corporate and Other
Corporate:
DTV-related retained costs	—		113		100		(213)
Parent administration support	(1)		861		10		(872)
Securitization fees	58		388		—		(330)
Value portfolio	132		21		—		111
Total Corporate	189		1,383		110		(1,304)


Certain significant items	—		568		18		(586)

Total Corporate and Other	189		1,951		128		(1,890)
AT&T Inc.	$	61,473	$	38,777	$	10,441	$	12,255


For the six months ended June 30, 2024
	Revenues		Operations and Support Expenses		Depreciation and Amortization		Operating Income (Loss)
Communications
Mobility	$	41,074	$	22,924	$	4,963	$	13,187
Business Wireline	9,668		6,754		2,748		166
Consumer Wireline	6,697		4,505		1,795		397
Total Communications	57,439		34,183		9,506		13,750
Latin America	2,166		1,808		349		9
Segment Total	59,605		35,991		9,855		13,759
Corporate and Other
Corporate:
DTV-related retained costs	—		250		222		(472)
Parent administration support	—		835		3		(838)
Securitization fees	55		315		—		(260)
Value portfolio	165		51		9		105
Total Corporate	220		1,451		234		(1,465)
Certain significant items	—		657		30		(687)
Total Corporate and Other	220		2,108		264		(2,152)
AT&T Inc.	$	59,825	$	38,099	$	10,119	$	11,607

AT&T INC.

JUNE 30, 2025

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

The following table is a reconciliation of Segment Operating Income to “Income Before Income Taxes” reported in our consolidated statements of income:


	Three months ended June 30,				Six months ended June 30,
	2025		2024		2025		2024
Communications	$	7,065	$	7,005	$	14,056	$	13,750
Latin America	46		6		89		9
Segment Operating Income	7,111		7,011		14,145		13,759
Reconciling Items:
Corporate	(622)		(731)		(1,304)		(1,465)
Transaction, legal and other costs	(49)		(35)		(128)		(67)
Amortization of intangibles acquired	(9)		(15)		(18)		(30)
Asset impairments and abandonments and restructuring	—		(480)		(504)		(639)
Benefit-related gains (losses)	70		10		64		49



AT&T Operating Income	6,501		5,760		12,255		11,607
Interest expense	1,655		1,699		3,313		3,423
Equity in net income of affiliates	485		348		1,925		643
Other income (expense) — net	767		682		1,222		1,133
Income Before Income Taxes	$	6,098	$	5,091	$	12,089	$	9,960

The following tables present assets, investments in equity affiliates and capital expenditures by segment:


	June 30,				December 31,
	2025				2024
	Assets		Investments in Equity Method Investees		Assets		Investments in Equity Method Investees
Communications	$	496,906	$	—	$	481,757	$	—
Latin America	8,659		—		7,808		—
Corporate and eliminations	(100,074)		1,011		(94,770)		295
Total	$	405,491	$	1,011	$	394,795	$	295


	Six months ended June 30,
Capital Expenditures		2025		2024
Communications		$	8,674	$	7,741
Latin America		125		101
Corporate and eliminations		375		276
Total		$	9,174	$	8,118

AT&T INC.

JUNE 30, 2025

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

NOTE 5. REVENUE RECOGNITION

Revenue Categories

The following tables set forth reported revenue by category and by business unit:


For the three months ended June 30, 2025
	Communications
	Mobility		Business Wireline		Consumer Wireline		Latin America		Corporate & Other		Total
Wireless	$	16,853	$	—	$	—	$	662	$	—	$	17,515
Fiber and advanced connectivity1	—		1,793		2,136		—		—		3,929
Non-fiber consumer broadband	—		—		892		—		—		892

Legacy and other transitional	—		2,349		265		—		45		2,659
Other	—		—		248		—		49		297
Total Service	16,853		4,142		3,541		662		94		25,292
Equipment	4,992		171		—		392		—		5,555
Total	$	21,845	$	4,313	$	3,541	$	1,054	$	94	$	30,847
1Advanced connectivity services reported in Business Wireline.


For the three months ended June 30, 2024
	Communications
	Mobility		Business Wireline		Consumer Wireline		Latin America		Corporate & Other		Total
Wireless	$	16,277	$	—	$	—	$	699	$	—	$	16,976
Fiber and advanced connectivity1	—		1,732		1,796		—		—		3,528
Non-fiber consumer broadband	—		—		945		—		—		945

Legacy and other transitional	—		2,839		323		—		62		3,224
Other	—		—		283		—		50		333
Total Service	16,277		4,571		3,347		699		112		25,006
Equipment	4,203		184		—		404		—		4,791
Total	$	20,480	$	4,755	$	3,347	$	1,103	$	112	$	29,797
1Advanced connectivity services reported in Business Wireline.


For the six months ended June 30, 2025
	Communications
	Mobility		Business Wireline		Consumer Wireline		Latin America		Corporate & Other		Total
Wireless	$	33,504	$	—	$	—	$	1,277	$	—	$	34,781
Fiber and advanced connectivity1	—		3,573		4,202		—		—		7,775
Non-fiber consumer broadband	—		—		1,810		—		—		1,810

Legacy and other transitional	—		4,824		551		—		91		5,466
Other	—		—		500		—		98		598
Total Service	33,504		8,397		7,063		1,277		189		50,430
Equipment	9,911		384		—		748		—		11,043
Total	$	43,415	$	8,781	$	7,063	$	2,025	$	189	$	61,473
1Advanced connectivity services reported in Business Wireline.

AT&T INC.

JUNE 30, 2025

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts


For the six months ended June 30, 2024
	Communications
	Mobility		Business Wireline		Consumer Wireline		Latin America		Corporate & Other		Total
Wireless	$	32,271	$	—	$	—	$	1,389	$	—	$	33,660
Fiber and advanced connectivity1	—		3,435		3,532		—		—		6,967
Non-fiber consumer broadband	—		—		1,931		—		—		1,931

Legacy and other transitional	—		5,836		665		—		124		6,625
Other	—		—		569		—		96		665
Total Service	32,271		9,271		6,697		1,389		220		49,848
Equipment	8,803		397		—		777		—		9,977
Total	$	41,074	$	9,668	$	6,697	$	2,166	$	220	$	59,825
1Advanced connectivity services reported in Business Wireline.

Deferred Customer Contract Acquisition and Fulfillment Costs

Costs to acquire and fulfill customer contracts, including commissions on service activations for our Mobility, Business Wireline and Consumer Wireline services, are deferred and amortized over the contract period or expected customer relationship life, which typically ranges from three years to five years.

The following table presents the deferred customer contract acquisition and fulfillment costs included on our consolidated balance sheets:


	June 30,		December 31,
Consolidated Balance Sheets	2025		2024
Deferred Acquisition Costs
Prepaid and other current assets	$	3,310	$	3,239
Other Assets	4,413		4,177
Total deferred customer contract acquisition costs	$	7,723	$	7,416
Deferred Fulfillment Costs
Prepaid and other current assets	$	1,975	$	2,101
Other Assets	3,065		3,289
Total deferred customer contract fulfillment costs	$	5,040	$	5,390

The following table presents deferred customer contract acquisition and fulfillment cost amortization, which are primarily included in “Selling, general and administrative” and “Other cost of revenues,” respectively, for the six months ended:


	June 30,		June 30,
Consolidated Statements of Income	2025		2024
Deferred acquisition cost amortization	$	1,854	$	1,808
Deferred fulfillment cost amortization	1,171		1,294

Contract Assets and Liabilities

A contract asset is recorded when revenue is recognized in advance of our right to bill and receive consideration. The contract asset will decrease as services are provided and billed. For example, when installment sales include promotional discounts (e.g., trade-in device credits) the difference between revenue recognized and consideration received is recorded as a contract asset to be amortized over the contract term.

Our contract assets primarily relate to our wireless businesses. Promotional equipment sales where we offer handset credits, which are allocated between equipment and service in proportion to their standalone selling prices, when customers commit to a

AT&T INC.

JUNE 30, 2025

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

specified service period result in additional contract assets recognized. These contract assets will amortize over the service contract period, resulting in lower future service revenue.

When consideration is received in advance of the delivery of goods or services, a contract liability is recorded. Reductions in the contract liability will be recorded as we satisfy the performance obligations.

The following table presents contract assets and liabilities on our consolidated balance sheets:


	June 30,		December 31,
Consolidated Balance Sheets	2025		2024
Contract asset	$	7,198	$	6,855
Current portion in “Prepaid and other current assets”	4,009		3,845
Contract liability	4,291		4,272
Current portion in “Advanced billings and customer deposits”	3,872		3,981

Our beginning of period contract liability recorded as customer contract revenue during 2025 was $3,515.

Remaining Performance Obligations

Remaining performance obligations represent services we are required to provide to customers under bundled or discounted arrangements, which are satisfied as services are provided over the contract term. In determining the transaction price allocated, we do not include non-recurring charges and estimates for usage, nor do we consider arrangements with an original expected duration of less than one year, which are primarily prepaid wireless and residential internet agreements.

Remaining performance obligations associated with business contracts reflect recurring charges billed, adjusted to reflect estimates for sales incentives and revenue adjustments. Performance obligations associated with wireless contracts are estimated using a portfolio approach in which we review all relevant promotional activities, calculating the remaining performance obligation using the average service component for the portfolio and the average device price. As of June 30, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was $42,008, of which we expect to recognize approximately 74% by the end of 2026, with the balance recognized thereafter.

NOTE 6. PENSION AND POSTRETIREMENT BENEFITS

Many of our employees are covered by one of our noncontributory pension plans. We also provide certain medical, dental, life insurance and death benefits to certain retired employees under various plans and accrue actuarially determined postretirement benefit costs. Our objective in funding these plans, in combination with the standards of the Employee Retirement Income Security Act of 1974, as amended (ERISA), is to accumulate assets sufficient to provide benefits described in the plans to employees upon their retirement. We do not have significant funding requirements in 2025. We intend to voluntarily contribute approximately $1,500 to our pension plan by the end of 2026, with more than half of that in 2025.

We recognize actuarial gains and losses on pension and postretirement plan assets in our consolidated results as a component of “Other income (expense) – net” at our annual measurement date of December 31, unless earlier remeasurements are required.

AT&T INC.

JUNE 30, 2025

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

The following table details qualified pension and postretirement benefit costs included in the accompanying consolidated statements of income. The service cost component of net periodic pension (credit) cost is recorded in operating expenses in the consolidated statements of income while the remaining components are recorded in “Other income (expense) – net.”


	Three months ended				Six months ended
	June 30,				June 30,
	2025		2024		2025		2024
Pension cost:
Service cost – benefits earned during the period	$	107	$	121	$	214	$	243
Interest cost on projected benefit obligation	401		397		801		793
Expected return on assets	(509)		(552)		(1,016)		(1,105)
Amortization of prior service credit	(12)		(22)		(24)		(44)



Net pension (credit) cost	$	(13)	$	(56)	$	(25)	$	(113)

Postretirement cost:
Service cost – benefits earned during the period	$	5	$	6	$	9	$	11
Interest cost on accumulated postretirement benefit obligation	79		78		159		155
Expected return on assets	(8)		(16)		(18)		(30)
Amortization of prior service credit	(460)		(482)		(919)		(964)


Net postretirement (credit) cost	$	(384)	$	(414)	$	(769)	$	(828)
Combined net pension and postretirement (credit) cost	$	(397)	$	(470)	$	(794)	$	(941)

We also provide senior- and middle-management employees with nonqualified, unfunded supplemental retirement and savings plans. Net supplemental pension benefits costs not included in the table above were $16 and $16 in the second quarter and $32 and $33 for the first six months of 2025 and 2024, respectively.

NOTE 7. FAIR VALUE MEASUREMENTS AND DISCLOSURE

The Fair Value Measurement and Disclosure framework in ASC 820, “Fair Value Measurement,” provides a three-tiered fair value hierarchy based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs and Level 3 includes fair values estimated using significant unobservable inputs.

The level of an asset or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Our valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs.

The valuation methodologies described above may produce a fair value calculation that may not be indicative of future net realizable value or reflective of future fair values. We believe our valuation methods are appropriate and consistent with other market participants. The use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. There have been no changes in the methodologies used since December 31, 2024.

AT&T INC.

JUNE 30, 2025

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

Long-Term Debt and Other Financial Instruments

The carrying amounts and estimated fair values of our long-term debt, including current maturities, and other financial instruments are summarized as follows:


	June 30, 2025				December 31, 2024
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Notes and debentures1	$	130,929	$	124,807	$	122,116	$	114,167


Investment securities2	1,598		1,598		1,603		1,603
1Includes credit agreement borrowings.
2Excludes investments accounted for under the equity method.

The carrying amount of debt with an original maturity of less than one year approximates fair value. The fair value measurements used for notes and debentures are considered Level 2 and are determined using various methods, including quoted prices for identical or similar securities in both active and inactive markets.

Following is the fair value leveling for investment securities that are measured at fair value and derivatives as of June 30, 2025 and December 31, 2024. Derivatives designated as hedging instruments are reflected as “Prepaid and other current assets,” “Other Assets,” “Accounts payable and accrued liabilities,” and “Other noncurrent liabilities” on our consolidated balance sheets.


	June 30, 2025
	Level 1		Level 2		Level 3		Total
Equity Securities
Domestic equities	$	514	$	—	$	—	$	514
International equities	9		—		—		9
Fixed income equities	184		—		—		184
Available-for-Sale Debt Securities	—		671		—		671
Asset Derivatives

Cross-currency swaps	—		1,203		—		1,203


Liability Derivatives

Cross-currency swaps	—		(2,093)		—		(2,093)


	December 31, 2024
	Level 1		Level 2		Level 3		Total
Equity Securities
Domestic equities	$	484	$	—	$	—	$	484
International equities	8		—		—		8
Fixed income equities	178		—		—		178
Available-for-Sale Debt Securities	—		689		—		689
Asset Derivatives

Cross-currency swaps	—		87		—		87


Liability Derivatives

Cross-currency swaps	—		(4,163)		—		(4,163)

Investment Securities

Our investment securities include both equity and debt securities that are measured at fair value, as well as equity securities without readily determinable fair values. A substantial portion of the fair values of our investment securities is estimated based on quoted market prices. Investments in equity securities not traded on a national securities exchange are valued at cost, less any impairment, and adjusted for changes resulting from observable, orderly transactions for identical or similar securities.

AT&T INC.

JUNE 30, 2025

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

Investments in debt securities not traded on a national securities exchange are valued using pricing models, quoted prices of securities with similar characteristics or discounted cash flows.

The components comprising total gains and losses in the period on equity securities are as follows:


	Three months ended				Six months ended
	June 30,				June 30,
	2025		2024		2025		2024
Total gains (losses) recognized on equity securities	$	48	$	29	$	21	$	126
Gains (losses) recognized on equity securities sold	—		(5)		—		(8)
Unrealized gains (losses) recognized on equity securities held at end of period	$	48	$	34	$	21	$	134

At June 30, 2025, available-for-sale debt securities totaling $671 have maturities as follows - less than one year: $71; one to three years: $107; three to five years: $113; five or more years: $380.

Our cash equivalents (money market securities) and short-term investments (certificate and time deposits) are recorded at amortized cost, and the respective carrying amounts approximate fair values. Short-term investments are recorded in “Prepaid and other current assets” and our investment securities are recorded in “Other Assets” on the consolidated balance sheets.

Derivative Financial Instruments

We enter into derivative transactions to manage certain market risks, primarily interest rate risk and foreign currency exchange risk. This includes the use of interest rate swaps, interest rate locks, foreign exchange forward contracts and combined interest rate foreign exchange contracts (cross-currency swaps). We do not use derivatives for trading or speculative purposes. We record derivatives on our consolidated balance sheets at fair value that is derived from observable market data, including yield curves and foreign exchange rates (all of our derivatives are Level 2). Cash flows associated with derivative instruments are presented in the same category on the consolidated statements of cash flows as the item being hedged.

Fair Value Hedging Periodically, we enter into and designate fixed-to-floating interest rate swaps as fair value hedges. The purpose of these swaps is to manage interest rate risk by managing our mix of fixed-rate and floating-rate debt. These swaps involve the receipt of fixed-rate amounts for floating interest rate payments over the life of the swaps without exchange of the underlying principal amount.

We also designate most of our cross-currency swaps and foreign exchange contracts as fair value hedges. The purpose of these contracts is to hedge foreign currency risk associated with changes in spot rates on foreign denominated debt. For cross-currency hedges, we have elected to exclude the change in fair value of the swap related to both time value and cross-currency basis spread from the assessment of hedge effectiveness. For foreign exchange contracts, we have elected to exclude the change in fair value of forward points from the assessment of hedge effectiveness.

Unrealized and realized gains or losses from fair value hedges impact the same category on the consolidated statements of income as the item being hedged, including the earnings impact of excluded components. In instances where we have elected to exclude components from the assessment of hedge effectiveness related to fair value hedges, unrealized gains or losses on such excluded components are recorded as a component of accumulated OCI and recognized into earnings over the life of the hedging instrument. Unrealized gains on derivatives designated as fair value hedges are recorded at fair value as assets, and unrealized losses are recorded at fair market value as liabilities. Except for excluded components, changes in the fair value of derivative instruments designated as fair value hedges are offset against the change in fair value of the hedged assets or liabilities through earnings. In the six months ended June 30, 2025 and 2024, no ineffectiveness was measured on fair value hedges.

Cash Flow Hedging We designate some of our cross-currency swaps as cash flow hedges to hedge our exposure to variability in expected future cash flows that are attributable to foreign currency risk and interest rate risk generated from our foreign-denominated debt. These agreements include initial and final exchanges of principal from fixed foreign denominated amounts to fixed U.S. dollar denominated amounts, to be exchanged at a specified rate that is usually determined by the market spot rate upon issuance. They also include an interest rate swap of a fixed or floating foreign denominated interest rate to a fixed U.S. dollar denominated interest rate.

AT&T INC.

JUNE 30, 2025

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

Unrealized gains on derivatives designated as cash flow hedges are recorded at fair value as assets and unrealized losses are recorded at fair value as liabilities. For derivative instruments designated as cash flow hedges, changes in fair value are reported as a component of accumulated OCI and are reclassified into the consolidated statements of income in the same period the hedged transaction affects earnings.

Periodically, we enter into and designate interest rate locks to partially hedge the risk of changes in interest payments attributable to increases in the benchmark interest rate during the period leading up to the probable issuance of fixed-rate debt. We designate our interest rate locks as cash flow hedges. Gains and losses when we settle our interest rate locks are amortized into income over the life of the related debt. Over the next 12 months, we expect to reclassify $59 from accumulated OCI to “Interest expense” due to the amortization of net losses on historical interest rate locks.

Collateral and Credit-Risk Contingency We have entered into agreements with our derivative counterparties establishing collateral thresholds based on respective credit ratings and netting agreements. At June 30, 2025, we had posted collateral of $355 (a deposit asset) and held collateral of $404 (a receipt liability). Under the agreements, if AT&T’s credit rating had been downgraded two ratings levels by Fitch Ratings, one level by S&P and one level by Moody’s before the final collateral exchange in June, we would have been required to post additional collateral of $50. If AT&T’s credit rating had been downgraded three ratings levels by Fitch Ratings, two levels by S&P and two levels by Moody’s, we would have been required to post additional collateral of $1,312. At December 31, 2024, we had posted collateral of $188 (a deposit asset) and held collateral of $0 (a receipt liability). We do not offset the fair value of collateral, whether the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) exists, against the fair value of the derivative instruments.

Following are the notional amounts of our outstanding derivative positions:


	June 30,		December 31,
	2025		2024

Cross-currency swaps	$	36,499	$	34,884


Total	$	36,499	$	34,884

Following are the related hedged items affecting our financial position and performance:


Effect of Derivatives on the Consolidated Statements of Income
	Three months ended				Six months ended
	June 30,				June 30,
Fair Value Hedging Relationships	2025		2024		2025		2024
Interest rate swaps (“Interest expense”):
Gain (loss) on interest rate swaps	$	(1)	$	(1)	$	(2)	$	(1)
Gain (loss) on long-term debt	1		1		2		1
Cross-currency swaps:
Gain (loss) on cross-currency swaps	2,735		(178)		3,859		(424)
Gain (loss) on long-term debt	(2,735)		178		(3,859)		424
Gain (loss) recognized in accumulated OCI	128		(325)		(703)		(70)

In addition, the net swap settlements that accrued and settled in the periods above were offset against “Interest expense.”

AT&T INC.

JUNE 30, 2025

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

The following table presents information for our cash flow hedging relationships:


	Three months ended				Six months ended
	June 30,				June 30,
Cash Flow Hedging Relationships	2025		2024		2025		2024
Cross-currency swaps:
Gain (loss) recognized in accumulated OCI	$	—	$	—	$	4	$	5



Interest rate locks:

Interest income (expense) reclassified from accumulated OCI into income	(14)		(14)		(29)		(29)

NOTE 8. SALES OF RECEIVABLES

We have agreements with various third-party financial institutions pertaining to the sales of certain types of our accounts receivable. The most significant of these programs are discussed in detail below and generally consist of (1) receivables arising from equipment installment plans, which are sold for cash and beneficial interests, such as deferred purchase price, when applicable, and (2) revolving trade receivables, which are sold for cash. Under the terms of our agreements for these programs, we continue to service the transferred receivables on behalf of the financial institutions.

The following table sets forth a summary of cash proceeds received, net of remittances paid, from sales of receivables:


	Three months ended				Six months ended
	June 30,				June 30,
	2025		2024		2025		2024
Net cash received (paid) from equipment installment receivables program1	$	(135)	$	(674)	$	724	$	(553)
Net cash received (paid) from revolving receivables program	(42)		(29)		91		247

Total net cash impact to cash flows from operating activities2	$	(177)	$	(703)	$	815	$	(306)
1Cash from initial sales of $2,779 and $2,532 for the three months and $6,577 and $5,406 for the six months ended June 30, 2025 and 2024, respectively.
2Net of facility fees.

The sales of receivables did not have a material impact on our consolidated statements of income or to “Total Assets” reported on our consolidated balance sheets. We reflect cash receipts on sold receivables as cash flows from operations in our consolidated statements of cash flows. In the event cash is received on the beneficial interests, those receipts are classified as cash flows from investing activities, when applicable.

AT&T INC.

JUNE 30, 2025

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

Our equipment installment and revolving receivables programs are discussed in detail below. The following table sets forth a summary of the receivables and accounts being serviced:


	June 30, 2025				December 31, 2024
	Equipment				Equipment
	Installment		Revolving		Installment		Revolving
Gross receivables:	$	3,227	$	234	$	3,504	$	553
Balance sheet classification
Accounts receivable
Notes receivable	1,771		—		1,817		—
Trade receivables	299		234		237		553
Other Assets
Noncurrent notes and trade receivables	1,157		—		1,450		—

Outstanding portfolio of receivables derecognized from our consolidated balance sheets	$	11,566	$	2,940	$	11,909	$	2,770
Cash proceeds received, net of remittances1	9,054		2,940		8,243		2,770
1Represents amounts to which financial institutions remain entitled, excluding the beneficial interests.

Equipment Installment Receivables Program

We offer our customers the option to purchase certain wireless devices in installments over a specified period of time and, in many cases, once certain conditions are met, they may be eligible to trade in the original equipment for a new device and have the remaining unpaid balance paid or settled.

We maintain a program under which we transfer a portion of these receivables through our bankruptcy-remote subsidiary in exchange for cash and beneficial interests. In the event a customer trades in a device prior to the end of the installment contract period, we agree to make a payment to the financial institutions equal to any outstanding remaining installment receivable balance. Accordingly, we record a guarantee obligation for this estimated amount at the time the receivables are transferred.

The following table sets forth a summary of equipment installment receivables sold under this program:


	Three months ended				Six months ended
	June 30,				June 30,
	2025		2024		2025		2024
Gross receivables sold1	$	2,807	$	2,557	$	6,642	$	5,461
Net receivables sold2	2,687		2,438		6,375		5,195
Cash proceeds received	2,779		2,532		6,577		5,406

Guarantee obligation recorded	219		217		499		483
1Receivables net of promotion credits.
2Receivables net of allowance and other reserves.

Beneficial interests, when applicable, and guarantee obligations are initially recorded at estimated fair value and subsequently adjusted for changes in present value of expected cash flows. The estimation of their fair values is based on remaining installment payments expected to be collected and the expected timing and value of device trade-ins. The estimated value of the device trade-ins considers prices offered to us by independent third parties and contemplates changes in value after the launch of a device model. The fair value measurements used for the beneficial interests and the guarantee obligation are considered Level 3 under the Fair Value Measurement and Disclosure framework (see Note 7).

AT&T INC.

JUNE 30, 2025

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

The following table presents the previously transferred equipment installment receivables, which we repurchased in exchange for the associated beneficial interests:


	Three months ended				Six months ended
	June 30,				June 30,
	2025		2024		2025		2024
Fair value of repurchased receivables	$	1,011	$	724	$	2,948	$	1,442
Carrying value of beneficial interests	1,011		743		2,944		1,464
Gain (loss) on repurchases1	$	—	$	(19)	$	4	$	(22)
1These gains (losses) are included in “Selling, general and administrative” expense in the consolidated statements of income.

At June 30, 2025 and December 31, 2024, our beneficial interests were $1,990 and $3,185, respectively, of which $1,214 and $1,906 are included in “Prepaid and other current assets” on our consolidated balance sheets, with the remainder in “Other Assets.” The guarantee obligation at June 30, 2025 and December 31, 2024 was $263 and $301, respectively, of which $140 and $150 are included in “Accounts payable and accrued liabilities” on our consolidated balance sheets, with the remainder in “Other noncurrent liabilities.” Our maximum exposure to loss as a result of selling these equipment installment receivables is limited to the total amount of our beneficial interests and guarantee obligation.

Revolving Receivables Program

During 2025, we expanded our revolving agreement to transfer up to $2,940 of certain receivables through our bankruptcy-remote subsidiaries to various financial institutions on a recurring basis in exchange for cash equal to the gross receivables transferred. This agreement is subject to renewal on an annual basis and the transfer limit may be expanded or reduced from time to time. As customers pay their balances, we transfer additional receivables into the program, resulting in our gross receivables sold exceeding net cash flow impacts (e.g., collect and reinvest). The transferred receivables are fully guaranteed by our bankruptcy-remote subsidiaries, which hold additional receivables in the amount of $234 that are pledged as collateral under this agreement. The transfers are recorded at fair value of the proceeds received and obligations assumed less derecognized receivables. Our maximum exposure to loss related to these receivables transferred is limited to the derecognized amount outstanding.

The following table sets forth a summary of the revolving receivables sold:


	Three months ended				Six months ended
	June 30,				June 30,
	2025		2024		2025		2024
Gross receivables sold/cash proceeds received1	$	7,673	$	4,672	$	15,016	$	8,846
Total collections under revolving agreement	7,673		4,672		14,846		8,546

Net cash proceeds received	$	—	$	—	$	170	$	300

Net receivables sold2	$	7,463	$	4,549	$	14,605	$	8,612

1Includes initial sales of receivables of $0 and $0 for the three months and $170 and $300 for the six months ended June 30, 2025 and 2024, respectively.

2Receivables net of allowance and other reserves.

NOTE 9. TRANSACTIONS WITH DIRECTV

We account for our investment in DIRECTV under the equity method and record our share of DIRECTV earnings as equity in net income of affiliates, with DIRECTV considered a related party. On September 29, 2024, we agreed to sell our interest in DIRECTV to TPG Capital (TPG) for approximately $7,600 in cash payments.

Beginning in third-quarter 2024, our investment in DIRECTV was reduced to zero on our consolidated balance sheet, resulting from aggregate cash receipts exceeding our initial investment balance plus our cumulative equity in DIRECTV earnings. As we are not committed, implicitly or explicitly, to provide financial or other support to DIRECTV, we record cash distributions

AT&T INC.

JUNE 30, 2025

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

received in excess of our share of DIRECTV’s earnings in “Equity in net income of affiliates” in the consolidated statements of income and as cash provided by operations in the consolidated statements of cash flows.

The following table sets forth our share of DIRECTV’s earnings included in “Equity in net income of affiliates” and cash distributions received from DIRECTV:


	Three months ended				Six months ended
	June 30,				June 30,
	2025		2024		2025		2024
DIRECTV’s earnings included in Equity in net income of affiliates	$	503	$	350	$	1,926	$	674

Distributions classified as operating activities	$	503	$	350	$	1,926	$	674
Distributions classified as investing activities	—		392		—		586
Cash distributions received from DIRECTV	$	503	$	742	$	1,926	$	1,260

For the three and six months ended June 30, 2025, we billed DIRECTV approximately $116 and $240 under commercial arrangements and transition service agreements, which were recorded as a reduction to the operations and support expenses incurred.

At June 30, 2025, we had accounts receivable from DIRECTV of $205 and accounts payable to DIRECTV of $50.

On July 2, 2025, we completed the sale of our interest in DIRECTV to TPG. Upon close, we will record a current note receivable of approximately $3,600, which we expect to receive the majority of by the end of 2025, and a long-term receivable of $500. We expect to record a significant gain on the sale, whose amount will be dependent on transition service agreements, indemnifications and other tax items.

NOTE 10. SUPPLIER AND VENDOR FINANCING PROGRAMS

Supplier Financing Program

We actively manage the timing of our supplier payments for operating items to optimize the use of our cash and seek to make payments on 90-day or greater terms, while providing suppliers with access to bank facilities that permit earlier payment at their cost. Our supplier financing program does not result in changes to our normal, contracted payment cycles or cash from operations.

At the supplier’s election, they can receive payment of AT&T obligations prior to the scheduled due dates, at a discounted price from the third-party financial institution. The discounted price paid to participating suppliers is based on a variable rate that is indexed to the overnight borrowing rate. We agree to pay the financial institution the stated amount generally within 90 days of receipt of the invoice. We do not have pledged assets or other guarantees under our supplier financing program.

Suppliers had elected to sell to the third-party financial institutions $3,461 and $2,498 of our outstanding payment obligations as of June 30, 2025 and December 31, 2024, respectively. These amounts are included in “Accounts payable and accrued liabilities” on our consolidated balance sheets. Our supplier financing programs are reported as operating or investing (when capitalizable) activities in our consolidated statements of cash flows when paid.

Direct Supplier Financing

We also have arrangements with suppliers of handset inventory that allow us to extend the stated payment terms by up to 90 days at an additional cost to us (variable rate extension fee). We had $4,235 of direct supplier financing outstanding as of June 30, 2025 and $6,272 as of December 31, 2024, which are included in “Accounts payable and accrued liabilities” on our consolidated balance sheets. Our direct supplier financing is reported as operating activities in our statements of cash flows when paid.

Vendor Financing

We enter into multi-year software licensing arrangements, which, consistent with industry standards, are paid over the license terms of two to five years. Additionally, in connection with capital improvements and the acquisition of other productive assets, we negotiate favorable payment terms of 120 days or more. We refer to these arrangements as vendor financing, with the

AT&T INC.

JUNE 30, 2025

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

balances and activities including equipment and software arrangements. Vendor financing payments are reported as financing activities in our statements of cash flows when paid. For the six months ended June 30, 2025 and 2024, we recorded vendor financing commitments of $831 and $523, respectively. We had $1,916 of vendor financing payables at June 30, 2025, with $1,193 included in “Accounts payable and accrued liabilities” and $1,448 of vendor financing payables at December 31, 2024, with $749 included in “Accounts payable and accrued liabilities.”

NOTE 11. ADDITIONAL FINANCIAL INFORMATION

Cash and Cash Flows

We typically maintain our restricted cash balances for purchases and sales of certain investment securities and funding of certain deferred compensation benefit payments.

The following table summarizes cash and cash equivalents and restricted cash balances contained on our consolidated balance sheets:


	June 30,				December 31,
	2025		2024		2024		2023
Cash and cash equivalents	$	10,499	$	3,093	$	3,298	$	6,722

Restricted cash in Prepaid and other current assets	1		1		1		2
Restricted cash in Other Assets	76		109		107		109
Cash and Cash Equivalents and Restricted Cash	$	10,576	$	3,203	$	3,406	$	6,833

The following table summarizes cash paid during the periods for interest and income taxes:


	Six months ended
	June 30,
Cash paid (received) during the period for:	2025		2024
Interest	$	3,316	$	3,644
Income taxes, net of refunds	880		299


The following table summarizes capital expenditures:
	Six months ended
	June 30,
	2025		2024
Purchase of property and equipment	$	9,097	$	8,042
Interest during construction - capital expenditures1	77		76
Total Capital Expenditures	$	9,174	$	8,118

The following table summarizes acquisitions, net of cash acquired:
	Six months ended
	June 30,
	2025		2024
Business acquisitions	$	—	$	—
Spectrum acquisitions	14		147
Interest during construction - spectrum1	34		123
Total Acquisitions	$	48	$	270
1Total capitalized interest was $111 and $199 for the six months ended June 30, 2025 and 2024, respectively.

Preferred Equity Transactions

On March 3, 2025, we issued $2,250 of nonconvertible cumulative preferred interests in Telco LLC (Telco Class A-4). The Telco Class A-4 interests pay an initial preferred distribution of 5.94% annually, subject to declaration, and subject to reset on November 1, 2028, and every four years thereafter. The Telco Class A-4 interests can be called at issue price beginning

AT&T INC.

JUNE 30, 2025

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

Dollars in millions except per share amounts

November 1, 2028, and are subject to the same redemption and liquidation rights as the Telco Class A-1, A-2 and A-3 interests.

On March 3, 2025, we also redeemed all outstanding Series B cumulative perpetual preferred shares. The shares had a total liquidation preference of €2.0 billion and were redeemed for $2,075.

Pending Acquisition

On May 21, 2025, we agreed to acquire substantially all of Lumen’s mass markets fiber business for $5,750 cash, subject to purchase price adjustments. At the time of signing, the pending acquisition covered approximately 1 million fiber customers, and also included fiber network assets that reach more than 4 million fiber locations. The transaction is expected to close in the first half of 2026, pending regulatory approval and other customary closing conditions.

AT&T INC.

JUNE 30, 2025

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Dollars in millions except per share amounts

OVERVIEW

AT&T Inc. is referred to as “we,” “AT&T” or the “Company” throughout this document. AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc., and the names of the particular subsidiaries and affiliates providing the services generally have been omitted. AT&T is a holding company whose subsidiaries and affiliates operate worldwide in the telecommunications and technology industries. You should read this discussion in conjunction with the consolidated financial statements and accompanying notes (Notes).

We have two reportable segments: Communications and Latin America. Our segment results presented in Note 4 and discussed below follow our internal management reporting. Percentage increases and decreases that are not considered meaningful are denoted with a dash.


	Second Quarter						Six-Month Period
					Percent						Percent
	2025		2024		Change		2025		2024		Change
Operating Revenues
Communications	$	29,699	$	28,582	3.9	%	$	59,259	$	57,439	3.2	%
Latin America	1,054		1,103		(4.4)		2,025		2,166		(6.5)

Corporate	94		112		(16.1)		189		220		(14.1)
AT&T Operating Revenues	$	30,847	$	29,797	3.5	%	$	61,473	$	59,825	2.8	%

Operating Income (Loss)
Communications	$	7,065	$	7,005	0.9	%	$	14,056	$	13,750	2.2	%
Latin America	46		6		—		89		9		—
Segment Operating Income	7,111		7,011		1.4		14,145		13,759		2.8
Corporate	(622)		(731)		14.9		(1,304)		(1,465)		11.0
Certain significant items	12		(520)		—		(586)		(687)		14.7
AT&T Operating Income	$	6,501	$	5,760	12.9	%	$	12,255	$	11,607	5.6	%

The Communications segment provides services to businesses and consumers located in the U.S. and businesses globally. Our business strategies reflect integrated product offerings that cut across product lines and utilize shared assets. This segment contains the following business units:

•Mobility provides nationwide wireless service and equipment.

•Consumer Wireline provides broadband services, including fiber connections that provide multi-gig services, and AT&T Internet Air (AIA) services, to residential customers in select locations. Consumer Wireline also provides legacy telephony voice communication services.

The Latin America segment provides wireless services and equipment in Mexico.

AT&T INC.

JUNE 30, 2025

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations- Continued

Dollars in millions except per share amounts

RESULTS OF OPERATIONS

Consolidated Results Our financial results are summarized in the discussions that follow. Additional analysis is discussed in our “Segment Results” section.


	Second Quarter						Six-Month Period
					Percent						Percent
	2025		2024		Change		2025		2024		Change
Operating Revenues
Service	$	25,292	$	25,006	1.1	%	$	50,430	$	49,848	1.2	%
Equipment	5,555		4,791		15.9		11,043		9,977		10.7
Total Operating Revenues	30,847		29,797		3.5		61,473		59,825		2.8

Operating Expenses
Operations and support	19,095		18,965		0.7		38,777		38,099		1.8
Depreciation and amortization	5,251		5,072		3.5		10,441		10,119		3.2
Total Operating Expenses	24,346		24,037		1.3		49,218		48,218		2.1
Operating Income	6,501		5,760		12.9		12,255		11,607		5.6
Interest expense	1,655		1,699		(2.6)		3,313		3,423		(3.2)
Equity in net income of affiliates	485		348		39.4		1,925		643		—
Other income (expense) — net	767		682		12.5		1,222		1,133		7.9
Income Before Income Taxes	6,098		5,091		19.8		12,089		9,960		21.4
Net Income	4,861		3,949		23.1		9,553		7,700		24.1
Net Income Attributable to AT&T	4,500		3,597		25.1		8,851		7,042		25.7
Net Income Attributable to Common Stock	$	4,464	$	3,546	25.9	%	$	8,859	$	6,941	27.6	%

Operating revenues increased in the second quarter and for the first six months of 2025, reflecting higher Mobility and Consumer Wireline revenues, partially offset by declines in Business Wireline and Mexico, which included unfavorable foreign exchange impacts.

Operations and support expenses increased in the second quarter and for the first six months of 2025, primarily due to higher Mobility equipment costs resulting from increased wireless equipment sales volumes and higher network-related costs. These increases were partially offset by expense declines from our continued transformation efforts and higher restructuring charges in the prior year. Also contributing to decreases for the first six months was the absence of expenses from our cybersecurity business that was contributed to a new cybersecurity joint venture, LevelBlue, in the second quarter of 2024.

Depreciation and amortization expense increased in the second quarter and for the first six months of 2025, primarily due to ongoing capital spending for strategic initiatives such as fiber and network upgrades, partially offset by lower depreciation impacts from our Open RAN network modernization efforts.

Operating income increased in the second quarter and for the first six months of 2025. Our operating income margin in the second quarter increased from 19.3% in 2024 to 21.1% in 2025 and for the first six months increased from 19.4% in 2024 to 19.9% in 2025.

Interest expense decreased in the second quarter and for the first six months of 2025, primarily due to lower debt balances, partially offset by lower capitalized interest associated with spectrum acquisitions.

Equity in net income of affiliates increased in the second quarter and for the first six months of 2025. The increases reflect cash distributions received by AT&T in excess of the carrying amount of our investment in DIRECTV (see Note 9). We sold our interest in DIRECTV to TPG Capital on July 2, 2025.

AT&T INC.

JUNE 30, 2025

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations- Continued

Dollars in millions except per share amounts

Other income (expense) – net increased in the second quarter and for the first six months of 2025. The increases were primarily due to a second-quarter 2025 gain on prior disposition, and for the first six months, first-quarter 2024 noncash impairment charges for a held-for-sale business and our SKY Mexico equity investment. Partially offsetting the increases were lower pension and postretirement benefit credits and lower returns on other benefit-related investments for the six-month period.

Other income (expense) - net in the third quarter of 2025, will include a gain recognized on our sale of DIRECTV, which we expect to be in the range of $5,500, dependent on transition service agreements, indemnifications and other tax items (see Note 9).

Income tax expense increased in the second quarter and for the first six months of 2025, primarily due to higher income before income tax.

Our effective tax rate was 20.3% in the second quarter and 21.0% for the first six months of 2025, versus 22.4% and 22.7% in the comparable periods in the prior year, reflecting larger discrete state tax benefits in 2025.

Segment Results Our segments are comprised of strategic business units or other operations that offer products and services to different customer segments over various technology platforms and/or in different geographies that are managed accordingly. We evaluate segment performance based on operating income as well as EBITDA and/or EBITDA margin. See “Discussion and Reconciliation of Non-GAAP Measures” for a reconciliation of EBITDA and EBITDA margin to the most comparable financial measures calculated and presented in accordance with U.S. generally accepted accounting principles (GAAP).


COMMUNICATIONS SEGMENT	Second Quarter						Six-Month Period
					Percent						Percent
	2025		2024		Change		2025		2024		Change
Segment Operating Revenues
Mobility	$	21,845	$	20,480	6.7	%	$	43,415	$	41,074	5.7	%
Business Wireline	4,313		4,755		(9.3)		8,781		9,668		(9.2)
Consumer Wireline	3,541		3,347		5.8		7,063		6,697		5.5
Total Segment Operating Revenues	$	29,699	$	28,582	3.9	%	$	59,259	$	57,439	3.2	%

Segment Operating Income (Loss)
Mobility	$	6,931	$	6,719	3.2	%	$	13,671	$	13,187	3.7	%
Business Wireline	(201)		102		—		(299)		166		—
Consumer Wireline	335		184		82.1		684		397		72.3
Total Segment Operating Income	$	7,065	$	7,005	0.9	%	$	14,056	$	13,750	2.2	%

Operating revenues increased in the second quarter and for the first six months of 2025, primarily driven by increases in our Mobility and Consumer Wireline business units, partially offset by declines in our Business Wireline business unit, which reflects lower demand for legacy services. Also offsetting revenue increases for the first six months was the absence of revenues from our cybersecurity business that was contributed to a new cybersecurity joint venture, LevelBlue, in the second quarter of 2024.

Operating income increased in the second quarter and for the first six months of 2025. Our Communications segment operating income margin in the second quarter decreased from 24.5% in 2024 to 23.8% in 2025 and for the first six months decreased from 23.9% in 2024 to 23.7% in 2025. Our Communications EBITDA margin in the second quarter decreased from 41.2% in 2024 to 40.7% in 2025 and for the first six months increased from 40.5% in 2024 to 40.6% in 2025.

AT&T INC.

JUNE 30, 2025

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations- Continued

Dollars in millions except per share amounts


Communications Business Unit Discussion
Mobility Results
	Second Quarter						Six-Month Period
					Percent						Percent
	2025		2024		Change		2025		2024		Change
Operating revenues
Service	$	16,853	$	16,277	3.5	%	$	33,504	$	32,271	3.8	%
Equipment	4,992		4,203		18.8		9,911		8,803		12.6
Total Operating Revenues	21,845		20,480		6.7		43,415		41,074		5.7

Operating expenses
Operations and support	12,358		11,285		9.5		24,662		22,924		7.6
Depreciation and amortization	2,556		2,476		3.2		5,082		4,963		2.4
Total Operating Expenses	14,914		13,761		8.4		29,744		27,887		6.7
Operating Income	$	6,931	$	6,719	3.2	%	$	13,671	$	13,187	3.7	%

The following tables highlight other key measures of performance for Mobility:


Subscribers
	June 30,		Percent
(in 000s)	2025	2024	Change
Postpaid	89,928	87,999	2.2	%
Postpaid phone	73,408	71,930	2.1
Prepaid	18,768	19,271	(2.6)
Reseller	9,549	8,204	16.4
Total Mobility Subscribers1	118,245	115,474	2.4	%
1Excludes migrations between wireless subscriber categories, including connected devices, and acquisition-related activity during the period.

AT&T INC.

JUNE 30, 2025

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations- Continued

Dollars in millions except per share amounts


Mobility Net Additions
	Second Quarter						Six-Month Period
					Percent						Percent
(in 000s)	2025		2024		Change		2025		2024		Change
Postpaid Phone Net Additions	401		419		(4.3)	%	725		768		(5.6)	%
Total Phone Net Additions	367		454		(19.2)		671		804		(16.5)

Postpaid2	479		593		(19.2)		769		982		(21.7)
Prepaid	(152)		82		—		(186)		83		—
Reseller	(38)		322		—		(174)		673		—
Mobility Net Subscriber Additions1	289		997		(71.0)	%	409		1,738		(76.5)	%

Postpaid Churn3	1.02	%	0.85	%	17	BP	1.01	%	0.87	%	14	BP
Postpaid Phone-Only Churn3	0.87	%	0.70	%	17	BP	0.85	%	0.71	%	14	BP
1Excludes migrations between wireless subscriber categories, including connected devices, and acquisition-related activity during the period.
2In addition to postpaid phones, includes tablets and wearables and other. Tablet net adds (losses) were 63 and 64 for the quarters ended June 30, 2025 and 2024 and 59 and 52 for the first six months ended June 30, 2025 and 2024. Wearables and other net adds (losses) were 15 and 110 for the quarters ended June 30, 2025 and 2024 and (15) and 162 for the first six months ended June 30, 2025 and 2024.
3Calculated by dividing the aggregate number of wireless subscribers who canceled service during a month by the total number of wireless subscribers at the beginning of that month. The churn rate for the period is equal to the average of the churn rate for each month of that period.

Service revenue increased in the second quarter and for the first six months of 2025, largely due to postpaid phone average revenue per subscriber (ARPU) growth and subscriber gains.

ARPU

ARPU increased in the second quarter and for the first six months of 2025, reflecting pricing actions and customers migrating to higher priced plans.

Churn

The effective management of subscriber churn is critical to our ability to maximize revenue growth and to maintain and improve margins. Postpaid churn and postpaid phone-only churn were higher in the second quarter and for the first six months of 2025, driven by a normalization of customers reaching the end of their equipment promotional plans and increased competition.

Equipment revenue increased in the second quarter and for the first six months of 2025, primarily driven by higher wireless device sales volumes.

Operations and support expenses increased in the second quarter and for the first six months of 2025, primarily due to higher equipment costs driven by higher wireless sales volumes. The increase also reflected higher advertising due to the launch of a new campaign in the first quarter, promotion costs and network costs.

Depreciation expense increased in the second quarter and for the first six months of 2025, primarily due to ongoing capital spending for network upgrades and expansion, partially offset by lower depreciation impacts from our network modernization efforts.

Operating income increased in the second quarter and for the first six months of 2025. Our Mobility operating income margin in the second quarter decreased from 32.8% in 2024 to 31.7% in 2025 and for the first six months decreased from 32.1% in 2024 to 31.5% in 2025. Our Mobility EBITDA margin in the second quarter decreased from 44.9% in 2024 to 43.4% in 2025 and for the first six months decreased from 44.2% in 2024 to 43.2% in 2025, driven by the increase in low margin equipment revenues.

AT&T INC.

JUNE 30, 2025

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations- Continued

Dollars in millions except per share amounts


Business Wireline Results
	Second Quarter						Six-Month Period
					Percent						Percent
	2025		2024		Change		2025		2024		Change
Operating revenues
Legacy and other transitional services	$	2,349	$	2,839	(17.3)	%	$	4,824	$	5,836	(17.3)	%
Fiber and advanced connectivity services	1,793		1,732		3.5		3,573		3,435		4.0
Equipment	171		184		(7.1)		384		397		(3.3)
Total Operating Revenues	4,313		4,755		(9.3)		8,781		9,668		(9.2)

Operating expenses
Operations and support	2,993		3,267		(8.4)		6,061		6,754		(10.3)
Depreciation and amortization	1,521		1,386		9.7		3,019		2,748		9.9
Total Operating Expenses	4,514		4,653		(3.0)		9,080		9,502		(4.4)
Operating Income (Loss)	$	(201)	$	102	—	%	$	(299)	$	166	—	%

Legacy and other transitional services revenues decreased in the second quarter and for the first six months of 2025, driven by lower demand for legacy and VPN services, which we expect to continue. Revenue declines for the first six months also reflect the absence of revenues from our cybersecurity business that was contributed to LevelBlue in the second quarter of 2024. These revenue declines were partially offset by targeted pricing actions in the first quarter of 2025.

Fiber and advanced connectivity services revenues increased in the second quarter and for the first six months of 2025, driven by higher fiber and fixed wireless revenues.

Equipment revenues decreased in the second quarter and for the first six months of 2025.

Operations and support expenses decreased in the second quarter and for the first six months of 2025, primarily driven by lower personnel and customer support costs associated with ongoing transformation initiatives and lower network-related costs. Decreases for the first six months were also driven by the contribution of our cybersecurity business. As part of our transformation activities, we expect operations and support expense improvements through the remainder of 2025 as we further right size our operations in alignment with the strategic direction of the business.

Depreciation expense increased in the second quarter and for the first six months of 2025, primarily due to ongoing capital investment for strategic initiatives such as fiber, which we expect to continue through the remainder of 2025.

Operating income decreased in the second quarter and for the first six months of 2025. Our Business Wireline operating income margin in the second quarter decreased from 2.1% in 2024 to (4.7)% in 2025 and for the first six months decreased from 1.7% in 2024 to (3.4)% in 2025. Our Business Wireline EBITDA margin in the second quarter decreased from 31.3% in 2024 to 30.6% in 2025 and for the first six months increased from 30.1% in 2024 to 31.0% in 2025.

AT&T INC.

JUNE 30, 2025

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations- Continued

Dollars in millions except per share amounts


Consumer Wireline Results
	Second Quarter						Six-Month Period
					Percent						Percent
	2025		2024		Change		2025		2024		Change
Operating revenues
Broadband	$	3,028	$	2,741	10.5	%	$	6,012	$	5,463	10.0	%
Legacy voice and data services	265		323		(18.0)		551		665		(17.1)
Other service and equipment	248		283		(12.4)		500		569		(12.1)
Total Operating Revenues	3,541		3,347		5.8		7,063		6,697		5.5

Operating expenses
Operations and support	2,248		2,249		—		4,472		4,505		(0.7)
Depreciation and amortization	958		914		4.8		1,907		1,795		6.2
Total Operating Expenses	3,206		3,163		1.4		6,379		6,300		1.3
Operating Income	$	335	$	184	82.1	%	$	684	$	397	72.3	%

The following tables highlight other key measures of performance for Consumer Wireline:


Broadband Connections
	June 30,		Percent
(in 000s)	2025	2024	Change


Broadband1	14,262	13,836	3.1	%
Fiber Broadband Connections	9,835	8,798	11.8	%





1Includes AIA.


Broadband Net Additions
	Second Quarter				Six-Month Period
			Percent				Percent
(in 000s)	2025	2024	Change		2025	2024	Change


Broadband Net Additions1,2	150	52	—	%	287	107	—	%
Fiber Broadband Net Additions	243	239	1.7	%	504	491	2.6	%
1Includes AIA.
2Excludes the impact of subscriber disconnections resulting from the termination of AIA services in areas with unfavorable regulatory requirements in the first quarter of 2025.

Broadband revenues increased in the second quarter and for the first six months of 2025, driven by increases in fiber revenues of 18.9% and 19.0%. Higher fiber revenues reflect an increase in fiber customers, which we expect to continue as we invest further in building our fiber footprint, and higher ARPU. This increase was partially offset by declines in copper-based broadband services.

Legacy voice and data services revenues decreased in the second quarter and for the first six months of 2025, reflecting the continued decline in demand for these services in favor of other technologies, such as wireless and fiber services.

Other service and equipment revenues decreased in the second quarter and for the first six months of 2025, reflecting the continued decline in the number of VoIP customers.

Operations and support expenses were flat in the second quarter and decreased for the first six months of 2025, primarily driven by lower customer support and content licensing costs, largely offset by higher network-related costs and higher marketing costs.

AT&T INC.

JUNE 30, 2025

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations- Continued

Dollars in millions except per share amounts

Depreciation expense increased in the second quarter and for the first six months of 2025, primarily due to ongoing capital spending for strategic initiatives such as fiber and network upgrades and expansion, which we expect to continue through the remainder of 2025.

Operating income increased in the second quarter and for the first six months of 2025. Our Consumer Wireline operating income margin in the second quarter increased from 5.5% in 2024 to 9.5% in 2025 and for the first six months increased from 5.9% in 2024 to 9.7% in 2025. Our Consumer Wireline EBITDA margin in the second quarter increased from 32.8% in 2024 to 36.5% in 2025 and for the first six months increased from 32.7% in 2024 to 36.7% in 2025.


LATIN AMERICA SEGMENT	Second Quarter						Six-Month Period
	2025		2024		Percent Change		2025		2024		Percent Change
Segment Operating Revenues
Service	$	662	$	699	(5.3)	%	$	1,277	$	1,389	(8.1)	%
Equipment	392		404		(3.0)		748		777		(3.7)
Total Segment Operating Revenues	1,054		1,103		(4.4)		2,025		2,166		(6.5)

Segment Operating Expenses
Operations and support	853		925		(7.8)		1,631		1,808		(9.8)
Depreciation and amortization	155		172		(9.9)		305		349		(12.6)
Total Segment Operating Expenses	1,008		1,097		(8.1)		1,936		2,157		(10.2)
Operating Income	$	46	$	6	—	%	$	89	$	9	—	%

The following tables highlight other key measures of performance for Mexico:


Subscribers
					June 30,		Percent
(in 000s)					2025	2024	Change

Postpaid					6,180	5,494	12.5	%
Prepaid					17,440	16,809	3.8
Reseller					223	333	(33.0)
Total Mexico Wireless Subscribers					23,843	22,636	5.3	%

Mexico Wireless Net Additions
	Second Quarter				Six-Month Period
			Percent				Percent
(in 000s)	2025	2024	Change		2025	2024	Change

Postpaid	183	142	28.9	%	343	258	32.9	%
Prepaid	64	67	(4.5)		(46)	146	—
Reseller	(12)	(32)	62.5		(30)	(84)	64.3
Total Mexico Wireless Net Additions	235	177	32.8	%	267	320	(16.6)	%

Service revenues decreased in the second quarter and for the first six months of 2025, reflecting unfavorable foreign exchange impacts, partially offset by growth in subscribers and ARPU.

Equipment revenues decreased in the second quarter and for the first six months of 2025, reflecting unfavorable foreign exchange impacts, partially offset by higher equipment sales.

Operations and support expenses decreased in the second quarter and for the first six months of 2025, primarily due to favorable foreign exchange impacts, partially offset by increased equipment and selling costs resulting from higher sales.

AT&T INC.

JUNE 30, 2025

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations- Continued

Dollars in millions except per share amounts

Depreciation and amortization expense decreased in the second quarter and for the first six months of 2025, primarily due to favorable foreign exchange impacts.

Operating income increased in the second quarter and for the first six months of 2025. Our Mexico operating income margin in the second quarter increased from 0.5% in 2024 to 4.4% in 2025 and for the first six months increased from 0.4% in 2024 to 4.4% in 2025. Our Mexico EBITDA margin in the second quarter increased from 16.1% in 2024 to 19.1% in 2025 and for the first six months increased from 16.5% in 2024 to 19.5% in 2025.

COMPETITIVE AND REGULATORY ENVIRONMENT

Overview AT&T subsidiaries operating within the United States are subject to federal and state regulations. AT&T subsidiaries operating outside the United States are subject to the jurisdiction of national and supranational regulations in the markets where service is provided. Complying with these regulations may affect our results of operations and cash flow, and compliance may be very costly.

On July 4, 2025, the One Big Beautiful Bill Act was enacted, which restores or makes permanent certain expiring business tax provisions from the Tax Cuts and Jobs Act of 2017. We do not anticipate the legislation to materially impact our income tax expense, but expect that it will have a material impact on cash taxes paid.

For further discussion of regulations impacting AT&T and its subsidiaries, please see “Management’s Discussion and Analysis of Financial Condition and Results of Operation—Regulatory Landscape” in our Annual Report on Form 10-K for the year-ended December 31, 2024.

LIQUIDITY AND CAPITAL RESOURCES


For six months ended June 30,	2025		2024
Cash provided by operating activities	$	18,812	$	16,640
Cash used in investing activities	(11,044)		(6,977)
Cash used in financing activities	(598)		(13,293)


	June 30,		December 31,
	2025		2024
Cash and cash equivalents	$	10,499	$	3,298
Total debt	132,311		123,532

We had $10,499 in cash and cash equivalents available at June 30, 2025, increasing $7,201 since December 31, 2024. Cash and cash equivalents included cash of $2,795 and money market funds and other cash equivalents of $7,704. Approximately $1,376 of our cash and cash equivalents were held in accounts outside of the U.S. and may be subject to restrictions on repatriation.

For the first six months of 2025, cash inflows were primarily provided by cash receipts from operations, including cash from our sale and transfer of our receivables to third parties, and distributions from DIRECTV. These inflows exceeded cash used to meet the needs of the business, including, but not limited to, payment of operating expenses, including higher device payments from higher sales volumes. The cash generated from operating activities was primarily used to fund capital improvements, make dividend payments to stockholders, repurchase preferred and common stock, and repay long-term debt. We maintain availability under our credit facilities and our commercial paper program to meet our short-term liquidity requirements.

Cash Provided by Operating Activities

During the first six months of 2025, cash provided by operating activities was $18,812, compared to $16,640 for the first six months of 2024, with increases resulting from higher cash flows related to DIRECTV, including a first-quarter 2025 dividend of $1,138, and operational growth.

AT&T INC.

JUNE 30, 2025

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations- Continued

Dollars in millions except per share amounts

We actively manage the timing of our supplier payments for operating items to optimize the use of our cash. Among other things, we seek to make payments on 90-day or greater terms, while providing the suppliers with access to bank facilities that permit earlier payments at their cost (referred to as supplier financing program). In addition, for payments to suppliers of handset inventory, as part of our working capital initiatives, we have arrangements that allow us to extend the stated payment terms by up to 90 days at an additional cost to us (referred to as direct supplier financing). The net impact of direct supplier financing, including principal and interest payments, was to decrease cash from operating activities approximately $2,146 and $2,120 for the six months ended June 30, 2025 and 2024, respectively. All supplier financing payments are due within one year. (See Note 10)

Cash Used in Investing Activities

For the first six months of 2025, cash used in investing activities totaled $11,044 and consisted primarily of $9,174 (including interest during construction) for capital expenditures. During the first six months of 2025, investing activities also included $38 of FirstNet sustainability payments net of reinvestment, and $620 for our investment in a new strategic partner related to wireline network transformation accounted for under the equity method of accounting.

We enter into multi-year software licensing arrangements, which are typically paid over the license terms of two to five years and referred to as vendor financing. Additionally, for capital improvements, we have negotiated favorable vendor payment terms of 120 days or more with some of our vendors, which are also referred to as vendor financing. Vendor financing is excluded from capital expenditures and reported as financing activities. For the first six months of 2025, vendor financing payments were $423, compared to $1,391 for the first six months of 2024. Capital expenditures for the first six months of 2025 were $9,174, and when including $423 cash paid for vendor financing, capital investment was $9,597 ($88 higher than the prior-year comparable period).

The vast majority of our capital expenditures are spent on our networks, including product development and related support systems. During the first six months of 2025, we placed $831 of productive assets in service under vendor financing arrangements (compared to $523 in the prior-year comparable period). The amount of capital expenditures is influenced by demand for services and products, capacity needs and network enhancements.

Cash Provided by or Used in Financing Activities

For the first six months of 2025, cash used in financing activities totaled $598 and was primarily comprised of dividend payments, preferred and common stock repurchases, debt repayments and vendor financing payments, offset by issuances of long-term debt and preferred interests.

A tabular summary of our debt activities for the six months ended June 30, 2025 is as follows:


	First Quarter		Second Quarter		Six months ended June 30, 2025

Issuance of Notes and Debentures:

EUR notes	$	2,956	$	—	$	2,956
USD notes	—		3,473		3,473
Debt Issuances	$	2,956	$	3,473	$	6,429

Repayments




EUR notes	$	1,321	$	32	$	1,353


Other	205		62		267
Repayments of long-term debt	$	1,526	$	94	$	1,620

The weighted average interest rate of our long-term debt portfolio, including credit agreement borrowings and the impact of derivatives, was approximately 4.2% as of June 30, 2025 and as of December 31, 2024. We had $130,929 of total notes and debentures outstanding at June 30, 2025. This also included Euro, British pound sterling, Canadian dollar, Swiss franc and Australian dollar denominated debt that totaled approximately $36,181.

AT&T INC.

JUNE 30, 2025

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations- Continued

Dollars in millions except per share amounts

At June 30, 2025, we had $9,254 of long-term debt maturing within one year. We had no outstanding commercial paper or other short-term borrowings on June 30, 2025.

For the first six months of 2025, we paid $423 of cash under our vendor financing program, compared to $1,391 in the prior-year comparable period. Total vendor financing payables included in our June 30, 2025 consolidated balance sheet were $1,916, with $1,193 due within one year (in “Accounts payable and accrued liabilities”) and the remainder predominantly due within five years (in “Other noncurrent liabilities”).

During the first six months of 2025, we repurchased approximately 34 million shares totaling $958 under our $10,000 common stock repurchase authorization approved by the Board of Directors in December 2024, excluding brokerage fees and the one percent excise tax imposed by the Inflation Reduction Act of 2022. At June 30, 2025, we had approximately $9,042 remaining under this repurchase authorization.

We paid dividends on common and preferred shares of $4,135 during the first six months of 2025, compared with $4,133 for the first six months of 2024.

Dividends on common stock declared by our Board of Directors totaled $0.5550 per share in the first six months of 2025 and 2024. Our dividend policy considers the expectations and requirements of stockholders, capital funding requirements of AT&T and long-term growth opportunities.

Financing activities in the first six months of 2025 also included the issuance of $2,250 of nonconvertible cumulative preferred interests in Telco LLC, with the funds used to redeem all outstanding Series B preferred stock for $2,075 (see Note 11). We also received approximately $850 in upfront cash proceeds from a structured sale-leaseback of real estate.

Credit Facilities

The following summary of our various credit and loan agreements does not purport to be complete and is qualified in its entirety by reference to each agreement filed as exhibits to our Annual Report on Form 10-K.

We use credit facilities as a tool in managing our liquidity status. We currently have one $12,000 revolving credit agreement that terminates on November 18, 2029 (Revolving Credit Agreement). No amount was outstanding under the Revolving Credit Agreement as of June 30, 2025.

We also utilize other external financing sources, which include various credit arrangements supported by government agencies to support network equipment purchases as well as a commercial paper program.

Our Revolving Credit Agreement contains covenants that are customary for an issuer with investment grade senior debt credit rating as well as a net debt-to-EBITDA financial ratio covenant requiring AT&T to maintain, as of the last day of each fiscal quarter, a ratio of not more than 3.75-to-1. As of June 30, 2025, we were in compliance with the covenants for our credit facilities.

Collateral Arrangements

Most of our counterparty collateral arrangements require cash collateral posting by AT&T only when derivative market values exceed certain thresholds. Under these arrangements, which cover the majority of our approximate $36,499 derivative portfolio, counterparties are still required to post collateral. During the first six months of 2025, we received $237 of cash collateral, on a net basis. Cash postings under these arrangements vary with changes in credit ratings and netting agreements. (See Note 7)

Other

Our total capital consists of debt (long-term debt and debt maturing within one year), redeemable noncontrolling interest and stockholders’ equity. Our capital structure does not include debt issued by our equity method investments. At June 30, 2025, our debt ratio was 51.7%, compared to 51.8% at June 30, 2024 and 50.7% at December 31, 2024. The debt ratio is affected by the same factors that affect total capital, and reflects our recent debt issuances, repayments and reclassifications related to redemption of noncontrolling interests.

AT&T INC.

JUNE 30, 2025

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations- Continued

Dollars in millions except per share amounts

DISCUSSION AND RECONCILIATION OF NON-GAAP MEASURES

We also evaluate segment and business unit performance based on EBITDA, which is defined as operating income excluding depreciation and amortization, and/or EBITDA margin, which is defined as EBITDA divided by total revenue. EBITDA is used as part of our management reporting, and we believe EBITDA to be a relevant and useful measurement to our investors as it measures the cash generation potential of our business units. EBITDA does not give effect to depreciation and amortization expenses incurred in operating income nor is it burdened by cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. There are material limitations to using these non-GAAP financial measures. EBITDA and EBITDA margin, as we have defined them, may not be comparable to similarly titled measures reported by other companies.


	Second Quarter								Six-Month Period
							Percent								Percent
	2025			2024			Change		2025			2024			Change
Communications Segment
Operating income	$	7,065		$	7,005		0.9	%	$	14,056		$	13,750		2.2	%
Add: Depreciation and amortization	5,035			4,776			5.4		10,008			9,506			5.3
EBITDA	$	12,100		$	11,781		2.7	%	$	24,064		$	23,256		3.5	%

Operating income margin	23.8		%	24.5		%			23.7		%	23.9		%
EBITDA margin	40.7		%	41.2		%			40.6		%	40.5		%

Mobility
Operating income	$	6,931		$	6,719		3.2	%	$	13,671		$	13,187		3.7	%
Add: Depreciation and amortization	2,556			2,476			3.2		5,082			4,963			2.4
EBITDA	$	9,487		$	9,195		3.2	%	$	18,753		$	18,150		3.3	%

Operating income margin	31.7		%	32.8		%			31.5		%	32.1		%
EBITDA margin	43.4		%	44.9		%			43.2		%	44.2		%

Business Wireline
Operating income (loss)	$	(201)		$	102		—	%	$	(299)		$	166		—	%
Add: Depreciation and amortization	1,521			1,386			9.7		3,019			2,748			9.9
EBITDA	$	1,320		$	1,488		(11.3)	%	$	2,720		$	2,914		(6.7)	%

Operating income margin	(4.7)		%	2.1		%			(3.4)		%	1.7		%
EBITDA margin	30.6		%	31.3		%			31.0		%	30.1		%

Consumer Wireline
Operating income	$	335		$	184		82.1	%	$	684		$	397		72.3	%
Add: Depreciation and amortization	958			914			4.8		1,907			1,795			6.2
EBITDA	$	1,293		$	1,098		17.8	%	$	2,591		$	2,192		18.2	%

Operating income margin	9.5		%	5.5		%			9.7		%	5.9		%
EBITDA margin	36.5		%	32.8		%			36.7		%	32.7		%

Latin America Segment
Operating income	$	46		$	6		—	%	$	89		$	9		—	%
Add: Depreciation and amortization	155			172			(9.9)		305			349			(12.6)
EBITDA	$	201		$	178		12.9	%	$	394		$	358		10.1	%

Operating income margin	4.4		%	0.5		%			4.4		%	0.4		%
EBITDA margin	19.1		%	16.1		%			19.5		%	16.5		%

AT&T INC.

JUNE 30, 2025

Item 3. Quantitative and Qualitative Disclosures About Market Risk

At June 30, 2025, we had no interest rate swaps.

We have fixed-to-fixed cross-currency swaps on foreign currency-denominated debt instruments with a U.S. dollar notional value of $36,499 to hedge our exposure to changes in foreign currency exchange rates and interest rates. These derivatives have been designated as fair value hedges with a net fair value of $(890) at June 30, 2025.

Item 4. Controls and Procedures

The registrant maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed by the registrant is recorded, processed, summarized, accumulated and communicated to its management, including its principal executive and principal financial officers, to allow timely decisions regarding required disclosure, and reported within the time periods specified in the SEC’s rules and forms. The Chief Executive Officer and Chief Financial Officer have performed an evaluation of the effectiveness of the design and operation of the registrant’s disclosure controls and procedures as of June 30, 2025. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the registrant’s disclosure controls and procedures were effective as of June 30, 2025.

There have not been any changes in our internal control over financial reporting during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

AT&T INC.

JUNE 30, 2025

CAUTIONARY LANGUAGE CONCERNING FORWARD-LOOKING STATEMENTS

Information set forth in this report contains forward-looking statements that are subject to risks and uncertainties, and actual results could differ materially. Many of these factors are discussed in more detail in the “Risk Factors” section herein and in our most recent Form 10-K. We claim the protection of the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995.

The following factors could cause our future results to differ materially from those expressed in the forward-looking statements:

•Adverse economic and political changes, public health emergencies and our ability to access financial markets on favorable terms.

•Increases in our benefit plans’ costs, including due to worse-than-assumed investment returns and discount rates, mortality assumptions, medical cost trends, or healthcare laws or regulations.

•The final outcome of FCC and other federal, state or foreign government agency proceedings (including judicial review of such proceedings) and legislative and regulatory efforts involving issues important to our business, including, without limitation, pending Notices of Apparent Liability; the transition from legacy technologies to IP-based infrastructure, including the withdrawal of legacy TDM-based services; universal service; broadband deployment; wireless equipment siting regulations; E911 services; rules concerning digital discrimination; competition policy; privacy; net neutrality; copyright protection; availability of new spectrum on fair and reasonable terms; and wireless and satellite license awards and renewals, and our response to such legislative and regulatory efforts.

•Enactment of or changes to state, local, federal and/or foreign tax laws and regulations, and actions by tax agencies and judicial authorities, and the resolution of disputes with any taxing jurisdictions, pertaining to our subsidiaries and foreign investments.

•U.S. and foreign laws and regulations regarding intellectual property rights protection and privacy, personal data protection and user consent, which are rapidly evolving.

•Our ability to compete in an increasingly competitive industry and against competitors that can offer product/service offerings at lower prices due to lower cost structures and regulatory and legislative actions adverse to us, including non-regulation of comparable alternative technologies and/or government-owned or subsidized networks, and our response to such competition and emerging technologies.

•Disruptions in our supply chain that have a material impact on our ability to acquire needed goods and services.

•The development and delivery of attractive and profitable wireless and broadband offerings and devices, including our ability to match speeds offered by competitors; and the availability, cost and/or reliability of technologies required to provide such offerings.

•Our ability to adequately fund additional wireless spectrum and network development, deployment and maintenance; and regulations and conditions relating to spectrum use, licensing, obtaining additional spectrum, technical standards and deployment and usage, including network management rules.

•Our ability to manage growth in wireless data services, including network quality.

•The outcome of pending, threatened or potential litigation and arbitration.

•The impact from major equipment, software or other failures or errors that disrupt our networks or cyber incidents; the effect of security breaches related to the network or customer information; our inability to obtain handsets, equipment/software or have handsets, equipment/software serviced in a timely and cost-effective manner from suppliers; severe weather conditions or other natural disasters including earthquakes and forest fires; public health emergencies; energy shortages; or wars or terrorist attacks.

•The issuance by the FASB or other accounting oversight bodies of new or revised accounting standards.

•The imposition of tariffs and their duration and uncertainty surrounding further tariffs and congressional action regarding spending and taxation, which may result in changes in government spending and affect the ability and willingness of businesses and consumers to spend in general.

•Our ability to realize or sustain the expected benefits of our business transformation initiatives, which are designed to reduce costs, enable legacy rationalization, streamline distribution, remove redundancies and simplify and improve processes and support functions.

•Our ability to successfully complete divestitures, as well as achieve our expectations regarding the financial impact of completed and/or pending transactions.

Readers are cautioned that other factors discussed in this report and in our most recent Form 10-K, although not enumerated here, also could materially affect our future earnings.

AT&T INC.

JUNE 30, 2025

PART II – OTHER INFORMATION

Dollars in millions except per share amounts

Item 1A. Risk Factors

We discuss in our Annual Report on Form 10-K for the year ended December 31, 2024 various risks that may materially affect our business. We use this section to update this discussion to reflect material developments since our Form 10-K was filed.

We may not realize or sustain the expected benefits from our business transformation initiatives, and these efforts could have a materially adverse effect on our business, operations, financial condition, results of operations and competitive position.

We have been and will be undertaking certain transformation initiatives, which are designed to reduce costs, enable legacy rationalization, streamline and modernize distribution and customer service, remove redundancies and simplify and improve processes and support functions. Our focus is on supporting added customer value with an improved customer experience. We intend for these efficiencies to enable increased investments in our strategic areas of focus, which include improving broadband connectivity (for example, fiber and 5G). We also expect these initiatives to drive efficiencies and improved margins. If we do not successfully manage and timely execute these initiatives and investments, which may include acquisitions, joint ventures and other strategic transactions, or if they are inadequate or ineffective, we may fail to meet our financial goals and achieve anticipated benefits, improvements may be delayed, not sustained or not realized, and our business, operations and competitive position could be adversely affected. In addition, any such transaction entails certain risks and could present financial, managerial and operational challenges. Further, we are using and intend to further use artificial intelligence (AI)-driven efficiencies in our network design and operations, software development, sales, marketing, customer support services and general and administrative costs. The models used in those products, particularly generative AI models, may produce output or take action that is incorrect, release private or confidential information, reflect biases included in the data on which they are trained, infringe on the intellectual property rights of others, or be otherwise harmful. Any of these risks could expose us to liability or adverse legal or regulatory consequences and harm our reputation and the public perception of our business or the effectiveness of our security measures.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds


	(a)	(b)		(c)	(d)
Period	Total Number of Shares (or Units) Purchased1,2	Average Price Paid Per Share (or Unit)		Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs1	Maximum Number (or Approximate Dollar Value) of Shares (or Units) That May Yet Be Purchased Under The Plans or Programs
April 1, 2025 - April 30, 2025	16,756	$	28.44	—	$	10,000
May 1, 2025 - May 31, 2025	6,491,464	$	27.43	6,400,000	$	9,824
June 1, 2025 - June 30, 2025	27,977,713	$	27.96	27,974,887	$	9,042
Total	34,485,933	$	27.86	34,374,887
1In December 2024, our Board of Directors approved, and we announced, an authorization to repurchase up to $10,000 of common stock. The authorization has no expiration date.
2Of the shares repurchased, 111,046 were acquired through the withholding of taxes on the vesting of restricted stock and performance shares or in respect of the exercise price of options.

Item 5. Other Information

(c) During the quarter ended June 30, 2025, no director or officer (as defined in Rule 16a-1(f)) of the Company adopted or terminated a contract, instruction or written plan for the purchase or sale of securities of the Company intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) and/or a non-Rule 10b5-1 trading arrangement.

AT&T INC.

JUNE 30, 2025

Item 6. Exhibits

The following exhibits are filed or incorporated by reference as a part of this report:


Exhibit
Number						Exhibit Description
2.1						Purchase Agreement, dated as of May 21, 2025, by and among Lumen Technologies, Inc., the Sellers named therein, Forged Fiber 37, LLC, and, solely for purposes of Section 11.16 thereof, AT&T DW Holdings, Inc. (Exhibit 2.1 to Form 8-K filed May 21, 2025)†
10.1						AT&T Inc. Health Plan effective January 1, 2026
31						Rule 13a-14(a)/15d-14(a) Certifications
						31.1 Certification of Principal Executive Officer
						31.2 Certification of Principal Financial Officer
32						Section 1350 Certifications
101						The following financial statements from the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, formatted in Inline XBRL: (i) Consolidated Statements of Cash Flows, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Balance Sheets, and (v) Notes to Consolidated Financial Statements, tagged as blocks of text and including detailed tags.
104						The cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, (formatted as Inline XBRL and contained in Exhibit 101).


† Certain schedules, annexes or exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K, but will be furnished supplementally to the SEC upon request.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


			AT&T Inc.

July 24, 2025			/s/ Pascal Desroches
			Pascal Desroches
			Senior Executive Vice President
			and Chief Financial Officer