AT&T Inc.

Good morning, everyone, and welcome to AT&T's second quarter 2025 earnings call. At this time, all participants are in a listen-only mode. If you need assistance during the call, please press star and then zero, and an operator will assist you offline. Following the presentation, the call will be open for questions. If you'd like to ask a question, please press star and then one, and you'll be placed in the question queue. If you are in the question queue and you would like to withdraw your question, you can do so by pressing star and then two. And as a reminder, this conference is being recorded. I would now like to turn the floor over to your host, Brett Feldman, Senior Vice President, Finance and Investor Relations. Please go ahead.

Thank you and good morning. Welcome to our second quarter call. I'm Brett Feldman, Head of Investor Relations for AT&T. Joining me on the call today are John Stanky, our Chairman and CEO, and Pascal DeRoche, our CFO. Before we begin, I need to call your attention to our Safe Harbor Statement. It says that some of our comments today may be forward-looking. As such, they are subject to risks and uncertainties described in AT&T's SEC filings. Results may differ materially. Additional information, as well as our earnings materials, are available on our Investor Relations website. With that, I will turn the call over to John Stanky. John? Thanks, Brett.

I appreciate everyone joining us this morning. Five years ago, we laid out a goal of becoming the best connectivity provider in America. To accomplish this, we set out a clear strategy built around putting the customer first and building the best network experience. We continue to make steady progress, and we're seeing the accumulating benefits from remaining consistent in our beliefs, and investing in the most advanced and cost-efficient technologies while providing customers with the services and experiences they want. Halfway through the year, we've delivered growth in service revenues, adjusted EBITDA, and free cash flow, and we're positioned to deliver on our full-year consolidated financial guidance for 2025. Pascal will cover the details of our second quarter results and updated outlook, including the expected impacts of recent tax legislation in just a moment. So I'll use my time to discuss how we put considerable effort into building a business that's well positioned to win across different operating environments, thanks to our leading investments in 5G and fiber. But before I do that, I'd like to acknowledge the recent Texas floods. Our heart goes out to all the families and communities affected by this devastating tragedy in our home state. I'd like to thank all of our employees who have stepped up and worked tirelessly to support the many first responders and government agencies with FirstNet. As Public Safety's partner, our support and obligations go beyond ensuring the continuity and availability of their purpose-built network. to include meeting the special and dynamic needs of these vital public safety resources in a manner unique to our industry. This is a role that commands the highest attention and resources from our company and one that we're proud to serve. Now, shifting back to the state of our business, our second quarter results highlight consistent trends across our operations. In mobility, we added over 400,000 postpaid phone customers, driving service revenue growth of 3.5%. We also added 243,000 Fiverr subscribers in the second quarter, in addition to 203,000 Internet Airnet additions. This represents nearly 450,000 new subscribers to our most advanced broadband services, driving further acceleration in the pace at which we're growing our base of home internet customers. In fact, we nearly tripled our quarterly total broadband net ads in only one year. Customers continue to choose AT&T because of the simplicity of our offers, the quality of our services, and increasingly because they want to be served by one connectivity provider. Our convergence trend accelerated in the second quarter, driven by growth in new customer relationships that subscribe to both our fiber and 5G services. As we've discussed in the past, our mobility share is higher in areas where we offer fiber. We're also seeing high rates of converged service adoption among our Internet Air customer base as well as lower churn and improve lifetime values compared to standalone services. We view this as further evidence that our brand can attract broadband internet customers nationwide while also driving share gains in mobility where we offer fiber or AT&T internet air. Our customers' preferences for being served by one connectivity provider is a key reason we launched the AT&T Guarantee earlier this year. Our guarantee is a promise to our customers that we will provide them with the connectivity they depend on, the deals they want, and the service they deserve guaranteed or we'll make it right. We make this promise because we know our customers increasingly rely on AT&T as a trusted provider for all their connectivity needs. The early data points indicate that this promise is resonating with our customers. For example, Since launching the AT&T Guarantee in January, we've seen improved Net Promoter scores among our wireless and fiber customers following a network event. It's clear that we're winning with customers and our performance through the first half of the year highlights the returns we're achieving as we accelerate our fiber deployment and complete our wireless network modernization. These initiatives are supported by pro-investment provisions in the One Big Beautiful Bill Act. Thanks to the policies in this legislation, we intend to invest more rapidly in next-generation networks. This includes plans to invest a portion of these savings into our network, primarily by accelerating our fiber deployment to a pace of 4 million new locations per year, a run rate we expect to achieve by the end of 2026. This will support good-paying, middle-class jobs all right here in the U.S. As a result of our stepped-up investment, we now expect that by the end of 2030, we'll reach approximately 50 million customer locations in region and more than 60 million fiber locations, one including the Lumen Mass Markets fiber assets we've agreed to acquire, our Gigapower joint venture, and agreements with other commercial open access providers. This would double our fiber reach from more than 30 million total locations, a milestone we reached ahead of schedule during the second quarter. This bill also creates a pipeline of mid-band spectrum that will help meet soaring consumer demand and keep the U.S. technologically competitive with other countries. Paired with the tax provisions in the bill, this legislation paves the way for the stated goals laid out by FCC Chairman Brendan Carr to unleash high-speed infrastructure builds and restore America's global lead in wireless technology through smart policy. The sustained growth in our customer base and free cash flow paired with our strong balance sheet positions us with ample financial flexibility to make opportunistic, growth-enhancing investments in fiber and spectrum that result from these policies, all while delivering on the capital returns we outlined at our Analyst and Investor Day last year. In addition to investing a portion of these cash tax savings into our network, we intend to contribute $1.5 billion to our pension plan by the end of next year. This, coupled with the job creation associated with our stepped-up investments in world-class U.S. communications infrastructure, demonstrates why the One Big Beautiful Bill Act is great policy for American workers. We're also making progress retiring our inefficient legacy copper infrastructure. I'm pleased to report that we filed with the FCC to discontinue service across approximately 10% of our wire centers in 17 states. This is a key step towards our target of discontinuing service across the large majority of our copper footprint by the end of 2029. We feel great about the steps we're taking to be the best connectivity provider in America and how this industry is positioned to evolve over the next decade. Investment and policy tailwinds are as strong as I can remember since maybe the Telecommunications Act of 1996. We're significantly expanding where we're able to offer next generation 5G and fiber connectivity services, allowing us to provide exceptional customer experiences that are more efficient to run and maintain. We expect the result to be faster growth, higher operating leverage, and lower capital intensity as we complete the large majority of these network investments and transformation initiatives over the remainder of this decade. This is why I strongly believe AT&T's best days are in front of us. And with that, I'll now turn it over to Pascal.