CMCSAComcast

The number of entertainment choices available to consumers, including DTC streaming service providers and aggregators, social networking and user-generated content platforms, and gaming and virtual reality products and services, continue continues to increase, intensify audience fragmentation and disaggregate how content traditionally has been distributed to and viewed by consumers. The continuing trend popularity of many of these content owners, including us with Peacock, delivering their content directly to consumers, rather than through, or in addition to, traditional video distribution channels also disrupts traditional media distribution business models. As consumers increasingly turn to DTC streaming services in lieu of linear video services, which continue to experience accelerated net customer losses, our video customers platforms has changed, and video revenues, and linear television network subscriber fees received from video service providers, each decrease. In addition to reducing traditional television viewership, these trends when coupled with time-shifting technologies, such as DVR and on demand services, have caused, and likely we expect will continue to cause, audience ratings declines for our television networks. Shifting content consumption patterns also may result in lower demand for home entertainment products or theatrical attendance. While we have adapted some change, consumers’ expectations of video content, video aggregation services and the value of our video services, their willingness to pay for such content and content offerings to compete in the evolving media distribution landscape, such as by offering Peacock services, their perception of quality entertainment and NOW, there also can be no assurance that we will be able to successfully compete or that Peacock will grow or sustain its revenue or user base, successfully compete as a stand-alone DTC streaming service or fully offset decreases to our linear television networks’ results of operations. their tolerance for commercial interruptions.

We continue to focus on growing our higher-margin connectivity businesses while managing overall operating costs. We also continue to invest in our network to support higher-speed broadband offerings and to expand the number of homes and businesses passed. A Our customer relationship additions/(losses) continue to be negatively impacted by an increasingly competitive environment, which has increased in recent years, has had negative impacts environment. We are focused on our customer relationships additions/(losses). In addition, government funding for the Affordable Connectivity Program, which provided a monthly discount towards broadband service for eligible low-income households, expired during the second quarter of 2024, which had a negative impact on our residential domestic broadband customer relationships. We believe increasing our residential connectivity revenue revenue. In 2025, we simplified our broadband pricing structure and began offering a free wireless line for one year to new and existing domestic broadband customers, which we expect will increase as a result of growth in improve customer retention and strengthen our ability to compete for new customers, but will negatively impact average domestic broadband revenue per customer, as well as increases in domestic wireless and international connectivity revenue. At the same time, we customer. We also expect continued declines in video revenue as a result of domestic customer net losses due to shifting video consumption patterns and the competitive environment, although customer net losses typically mitigate the impact of continued rate increases on programming expenses. We also expect expenses, as well as continued declines in other revenue related to declines in wireline voice revenue. We believe are also focused on growing our Business Services Connectivity segment will continue to grow revenue by offering competitive services, including enterprise solutions, and driving higher adoption of our advanced solutions.

In November 2024, On January 2, 2026 (the “Separation date”), we completed the previously announced our intention to create SpinCo, a new separation of Versant into an independent publicly traded company comprised of select domestic cable television networks along with and complementary digital assets platforms through a tax-free spin-off. We are targeting to complete spin-off (the “Separation”). As the Spin-off by Separation occurred after December 31, 2025, the end of 2025, subject to the satisfaction of customary conditions, including obtaining final approval from our Board of Directors, satisfactory completion of SpinCo financings, receipt of tax opinions and receipt of any regulatory approvals. There can be no assurance that a separation transaction will occur, or, if one does, of its terms or timing. The consolidated financial statements and related notes do not reflect the proposed Spin-off. Separation. See Note 16 for additional information.

Operating Lease Assets and Liabilities Recorded in our Consolidated Balance Sheet Sheets December 31 (in millions) 2025 2024 2023 Other noncurrent assets, net $5,287 $5,524 $5,786 Accrued expenses and other current liabilities $686 $751 $748 Other noncurrent liabilities $5,410 $5,569 $5,838