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Segment Information
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Segment Information
Note 11—Segment Information

Our business is managed based on customer-facing sales channels to align with how we support our customers. Our chief operating decision maker ("CODM"), who is our CEO, makes decisions and assesses the performance of the Company reviewing two segments: Business and Mass Markets. Our reportable segments have not been aggregated.

Under our Business segment we provide products and services to meet the needs of our enterprise and wholesale customers under five distinct sales channels — Large Enterprise, Mid-Market Enterprise, Public Sector, Wholesale, and International and Other. For Business segment revenue, we report the following product categories: Grow, Nurture, Harvest, and Other, in each case through the sales channels outlined above.

Under our Mass Markets Segment, we provide products and services to residential and small business customers. We report the following product categories — Fiber Broadband, Other Broadband, and Voice and Other.

See detailed descriptions of these product and service categories in Note 4—Revenue Recognition.

As described in more detail below, our segments are managed based on the direct costs of providing services to their customers and directly associated headcount and non-headcount operating expenses. Shared costs are managed separately and included in "other unallocated expense" in the table included below under the heading "— Revenue and Expenses". As referenced above, we reclassified certain prior period amounts to conform to the current period presentation. See Note 1— Background for additional detail on these changes. The CODM uses adjusted EBITDA as the key indicator in assessing performance and allocating resources for both the Business segment and Mass Markets segment.

The following tables summarize our segment results for the three and nine months ended September 30, 2025 and 2024, based on the segment categorization under which we were operating at September 30, 2025.

Three Months Ended September 30, 2025Nine Months Ended September 30, 2025
BusinessMass MarketsBusinessMass Markets
(Dollars in millions)
Segment revenue$2,456 631 7,470 1,891 
Segment expenses
Cost of services and products691 13 2,120 40 
Headcount costs
294 142 874 434 
Non-headcount costs
363 129 1,050 372 
Total segment expense1,348 284 4,044 846 
Total segment adjusted EBITDA$1,108 347 3,426 1,045 

Three Months Ended September 30, 2024Nine Months Ended September 30, 2024
BusinessMass MarketsBusinessMass Markets
(Dollars in millions)
Segment revenue$2,537 684 7,706 2,073 
Segment expenses
Cost of services and products766 16 2,265 53 
Headcount costs
300 162 948 484 
Non-headcount costs
371 149 1,061 420 
Total segment expense1,437 327 4,274 957 
Total segment adjusted EBITDA$1,100 357 3,432 1,116 
Revenue and Expenses

Our segment revenue includes all revenue from our two segments as described in more detail above. Our segment revenue is based upon each customer's classification. We report our segment revenue based upon all services provided to that segment's customers. Our segment expenses include (i) specific cost of service expenses incurred as a direct result of providing services and products to segment customers, (ii) headcount costs, which primarily include salaries, commissions, and group insurance, and (iii) non-headcount costs, which primarily include legal and other professional fees, marketing and advertising expenses, other network-related expenses, and external commissions. We have not allocated assets or debt to specific segments.

The following items are excluded from our segment results, because they are centrally managed and not monitored by or reported to our chief operating decision maker by segment:

•network expenses not incurred as a direct result of providing services and products to segment customers and centrally managed expenses such as Finance, Human Resources, Legal, Marketing, Product Management, and IT, all of which are reported as "other unallocated expense" in the table below;

•depreciation and amortization expense;

•goodwill or other impairments;

•interest expense;

•stock-based compensation;

•other income and expense items; and

•income tax expense.

The following table reconciles total segment adjusted EBITDA to net loss for the three and nine months ended September 30, 2025 and 2024:

 Three Months Ended September 30,Nine Months Ended September 30,
 2025202420252024
 (Dollars in millions)
Total segment adjusted EBITDA$1,455 1,457 4,471 4,548 
Depreciation and amortization(674)(707)(2,075)(2,198)
Goodwill impairment— — (628)— 
Other unallocated expense(884)(614)(2,345)(2,023)
Stock-based compensation expense(13)(10)(35)(21)
Operating (loss) income(116)126 (612)306 
Total other expense, net(697)(298)(1,595)(417)
Loss before income taxes(813)(172)(2,207)(111)
Income tax (benefit) expense(192)(24)(470)29 
Net loss$(621)(148)(1,737)(140)