Comcast Corporation (NASDAQ: CMCSA)
Q2 2025 Financial Analysis | July 31, 2025
Executive Summary
Comcast reported solid financial results for Q2 2025, with revenue increasing 2.1% to $30.3 billion and Adjusted EPS growing 3.3% to $1.25. The company generated strong free cash flow of $4.5 billion and returned $2.9 billion to shareholders through dividends and share repurchases. Net income surged 183% to $11.1 billion, primarily driven by a $9.4 billion gain from the sale of its interest in Hulu. Operationally, the company made significant progress with its residential broadband strategy pivot, achieved record wireless growth with 378,000 net additions, and celebrated the successful opening of Epic Universe at Universal Orlando Resort.
Q2 2025 Highlights
Financial Performance
Comcast delivered solid Q2 2025 results with revenue increasing 2.1% to $30.3 billion, demonstrating resilience across its diversified business portfolio. The revenue growth was primarily driven by increases in domestic wireless, international connectivity, business services, and theme parks, partially offset by declines in domestic video subscribers and advertising revenue.
Net income experienced a dramatic increase to $11.1 billion from $3.9 billion in the prior year, primarily due to the $9.4 billion pre-tax gain from the sale of Comcast’s interest in Hulu. Excluding this one-time gain, adjusted net income decreased 1.7% to $4.7 billion, reflecting operational pressures while maintaining overall profitability.
Adjusted EBITDA grew 1.1% to $10.3 billion, demonstrating the company’s ability to generate consistent cash flow despite challenging market conditions. The improvement was driven by growth in Connectivity & Platforms and Content & Experiences segments, with Peacock showing particularly strong progress in reducing losses.
Diluted EPS surged to $2.98 from $1.00 in the prior year, while adjusted EPS increased 3.3% to $1.25. The company’s strong cash flow generation enabled significant capital returns to shareholders, with $2.9 billion returned through $1.2 billion in dividends and $1.7 billion in share repurchases, reducing shares outstanding by 5% compared to the prior year.
Free cash flow of $4.5 billion represents a substantial increase from $1.3 billion in Q2 2024, reflecting strong operational performance and the positive impact of the Hulu transaction. This robust cash generation supports the company’s capital allocation strategy and positions it well for continued investment in growth initiatives.
Segment Performance
| Segment | Revenue ($M) | YoY Change | Adjusted EBITDA ($M) | EBITDA Margin |
|---|---|---|---|---|
| Connectivity & Platforms | $20,389 | +0.7% | $8,526 | 41.8% |
| Content & Experiences | $10,625 | +5.6% | $2,019 | 19.0% |
| Corporate & Other | $708 | +0.3% | ($282) | N/A |
Connectivity & Platforms generated revenue of $20.4 billion, up 0.7% year-over-year, with adjusted EBITDA of $8.5 billion and a healthy margin of 41.8%. The segment benefited from strong growth in domestic wireless (378,000 net additions), business services connectivity (+6.3%), and international connectivity, which helped offset continued pressure in the domestic video business.
Within Connectivity & Platforms, Residential Connectivity revenue was essentially flat at $17.8 billion, with domestic broadband revenue increasing 1.6% despite customer losses of 201,000. The company’s strategic pivot to new national internet plans with everyday pricing and bundled offerings showed early positive signs. Business Services Connectivity continued its strong performance with 6.3% revenue growth to $2.6 billion.
Content & Experiences delivered solid growth with revenue increasing 5.6% to $10.6 billion and adjusted EBITDA of $2.0 billion. The segment was led by Theme Parks (+18.9% revenue growth) driven by the successful opening of Epic Universe, Studios (+8.0% growth), and Media (+1.8% growth) with continued Peacock improvement.
Theme Parks revenue of $2.3 billion reflected the positive impact of Epic Universe’s opening on May 22, 2025, which has been well-received by guests. Studios benefited from strong theatrical performance including “How to Train Your Dragon,” while Media showed resilience with Peacock revenue growing 18% to $1.2 billion and EBITDA losses improving by $247 million to $101 million.
Key Business Metrics
| Metric | Q2 2025 | Q2 2024 | Net Change |
|---|---|---|---|
| Total Customer Relationships (000s) | 51,156 | 51,696 | (349) |
| Domestic Broadband Customers (000s) | 31,540 | 32,068 | (226) |
| Domestic Wireless Lines (000s) | 8,527 | 7,199 | +378 |
| Domestic Video Customers (000s) | 11,771 | 13,199 | (325) |
| Wireless Penetration (%) | 14% | N/A | N/A |
Domestic Wireless delivered exceptional performance with 378,000 net additions, the best quarterly result on record. The company now serves 8.5 million wireless lines, representing 14% penetration of domestic residential broadband customers. This growth was driven by the launch of new premium unlimited wireless plans that deliver gigabit speeds and significant customer savings when bundled with broadband.
Domestic Broadband experienced net losses of 226,000 customers, though this represents an improvement in the trajectory following the company’s go-to-market strategy pivot in April 2025. The new approach includes national internet plans with everyday pricing (EDP), everything included, a 5-year internet price guarantee, and a free Xfinity unlimited mobile line for one year.
Video Customers continued to decline with net losses of 325,000, consistent with industry-wide cord-cutting trends. However, the company is successfully transitioning customers to its Peacock streaming platform, which showed strong growth in both revenue and reduced losses during the quarter.
The strong wireless performance demonstrates Comcast’s competitive advantage in convergence, offering customers integrated broadband and wireless solutions. The 14% penetration rate suggests significant room for continued growth, particularly as the company enhances its premium wireless offerings and bundling strategies.
Business Services Connectivity showed resilience with customer relationships growing to 2.7 million, supporting the segment’s continued revenue growth and demonstrating the value proposition for enterprise customers seeking reliable connectivity solutions.
Strategic Initiatives
Comcast executed several key strategic initiatives during Q2 2025 that position the company for future growth and market leadership:
Connectivity & Platforms Strategy Pivot
- Go-to-Market Transformation: Launched new national internet plans with everyday pricing (EDP) and everything included, simplifying the customer experience and improving value proposition
- 5-Year Price Guarantee: Introduced industry-leading 5-year internet price guarantee to provide customers with pricing certainty and reduce churn
- Wireless Integration: Bundled free Xfinity unlimited mobile line for one year with internet plans, driving wireless adoption and customer stickiness
- Premium Wireless Plans: Launched new premium unlimited wireless plans delivering gigabit speeds, upgraded features, and significant savings for customers
Content & Experiences Expansion
- Epic Universe Opening: Successfully opened Epic Universe at Universal Orlando Resort on May 22, 2025, featuring five immersive worlds and receiving strong positive guest reactions
- Horror Entertainment Expansion: Universal Horror Unleashed opens August 14th in Las Vegas, expanding the parks footprint with year-round horror-themed entertainment
- Film Franchise Success: “How to Train Your Dragon” debuted in June, grossing over $600 million worldwide and pushing the franchise’s cumulative total past $2 billion
- Peacock Growth: Continued differentiation with premium content and robust live sports lineup, with NBA coverage addition planned for fall 2025
Capital Allocation Excellence
The company demonstrated disciplined capital allocation with $2.9 billion returned to shareholders through dividends and share repurchases, while maintaining strong investment in growth initiatives. The Hulu transaction provides additional financial flexibility for strategic investments.
Management emphasized the company’s strategic focus on leveraging world-class assets, maintaining disciplined capital allocation, and positioning for future growth opportunities across its diversified business portfolio.
Peacock Streaming Performance
Peacock continued its strong trajectory in Q2 2025, demonstrating significant operational improvements and strategic positioning in the competitive streaming landscape:
Financial Performance
- Revenue Growth: Peacock revenue increased 18% to $1.2 billion, reflecting continued subscriber growth and improved monetization
- Loss Reduction: EBITDA losses improved by $247 million to $101 million compared to the prior year period, demonstrating clear path toward profitability
- Cost Management: Programming and production costs decreased while maintaining content quality, offset by strategic increases in marketing and promotion investments
Content Strategy
- Premium Content Differentiation: Peacock continues to differentiate itself with premium original content and exclusive programming
- Live Sports Leadership: Maintains one of the most robust lineups of live sports among streaming platforms
- NBA Partnership: Exciting addition of NBA coverage this fall will further strengthen sports offering and drive subscriber growth
The combination of revenue growth and significant loss reduction positions Peacock as a key driver of future growth within the Media segment. The platform’s focus on premium content and live sports creates a differentiated value proposition in the increasingly competitive streaming market.
Management’s confidence in building on Peacock’s leadership position with the NBA addition demonstrates the strategic importance of sports content in driving subscriber acquisition and retention in the streaming ecosystem.
Risks & Opportunities
Opportunities
Risks
Conclusion
Strengths
- Strong free cash flow generation ($4.5 billion in Q2)
- Record wireless growth (378,000 net additions)
- Successful Epic Universe opening driving theme park growth
- Peacock improving trajectory toward profitability
- Disciplined capital allocation with significant shareholder returns
Areas of Focus
- Stabilizing domestic broadband customer base
- Accelerating benefits from go-to-market strategy pivot
- Managing continued video subscriber declines
- Driving Peacock to sustainable profitability
- Optimizing content investments across platforms
Summary
Comcast delivered solid Q2 2025 results with revenue growing 2.1% to $30.3 billion and adjusted EPS increasing 3.3% to $1.25. The $9.4 billion Hulu transaction gain significantly boosted reported earnings while underlying operational performance showed resilience across the diversified business portfolio.
The company made meaningful strategic progress with its connectivity business pivot, achieving record wireless growth of 378,000 net additions and reaching 14% penetration of broadband customers. The successful opening of Epic Universe demonstrates the strength of the Universal brand and drives significant theme park growth potential.
Peacock’s continued improvement with 18% revenue growth and $247 million in loss reduction shows clear progress toward profitability. The upcoming NBA content addition positions the platform well for continued subscriber growth and differentiation in the competitive streaming market.
With strong free cash flow generation, disciplined capital allocation, and strategic investments in growth areas like wireless and streaming, Comcast is well-positioned for long-term value creation despite near-term challenges in traditional video and broadband customer dynamics.
