CMCSA 10-K & 10-Q changes, risk factors and insider trading

Below is a summary of our most significant sources of competition. Many of these competitors offer competitive pricing, packaging and/or bundling of services to customers, which further increases competition. For a more detailed description of the competition facing our businesses, see Item 1: Business and refer to the “Competition” discussiondiscussions within that section.

•Connectivity & Platforms’ broadband services compete primarily against wireline telecommunications companies, including many that are increasing deployment of fiber-based networks; wireless telecommunications companies offering internet services (using a variety of wireless technologies, including 5G fixed wireless networks and 4G and 5G wireless broadband services); electric cooperativesmunicipalities and municipalitiespower companies in the United States that own and operate their own broadband networks; and DBS and newer satellite broadband providers. Broadband-deploymentDomestic broadband-deployment funding initiatives at the federal and state level may result in other service providers deploying new subsidized internet access networks within our footprint, and in cases where we receive subsidies, may impose constraints on how we conduct our businesses. For a more extensive discussion of the significant risks associated with the regulation of our businesses, see “—We are subject to regulation by federal, state, local and foreign authorities, which impose additional costs and restrictions on our businesses” below and Item 1: Business and refer to the “Legislation and Regulation” discussion within that section.

•Our businesses in Content & Experiences, as well as our video business, face substantial and increasing competition from providers of similar types of entertainment, sports, news and information content, as well as from other forms of entertainment, including from social networking and user-generated content or technologies such as AI that can rapidly produce large volumes of content, as well as tourism, recreational activities and lodging. They must compete to obtain talent, popular content (including sports programming), advertising and other resources required to successfully operate their businesses. This competition has further intensified as certain DTC streaming service providers have commissioned, and may continue to commission, high-cost programming and acquire live sports programming rights to attract viewers at significant costs.

Our competitive position may be negatively affected if we do not provide our customers with a satisfactory customer experience. In addition, our ability to compete effectively depends on our perceived image and reputation among our various constituencies, including our customers, consumers, advertisers, business partners, employees, investors and government authorities. For example, some of these constituencies may have their own, and some have conflicting,conflicting environmental, socialenvironmental and governancesocial priorities, which may present risks to our reputation and brands if these constituencies perceive misalignment.

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 to increase, intensify audience fragmentation and disaggregate how content traditionally has been distributed to and viewed by consumers. The continuing trend of 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 and video revenues, and linear television network subscriber fees received from video service providers, each decrease. In addition to reducing traditional television viewership, these trendstrends, when coupled with time-shifting technologies,technologies such as DVR and on demand services, have caused, and likely 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 of our video and content offerings to compete in the evolving media distribution landscape, such as by offering Peacock 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.

We compete for the sale of advertising time with digital properties, including an increasing number of ad-supported DTC streaming service providers as advertisers have shifted, and may continue to shift, a larger portion of their total expenditures to digital media. We also compete with other online content providers, such as social networking platforms and user-generated content providers, television networks and stations, and all other advertising platforms. Because we derive substantial revenue from the sale of advertising, a decline in expenditures by advertisers, including through traditional linear television distribution models or on Peacock, could negatively impact our results of operations. We have experienced, and may continue to experience, declines caused by the economic prospects of specific advertisers or industries and economic conditions generally; increased competition for the leisure time of viewers, audience fragmentation and viewing content on DTC streaming services; use of time-shifting or advertising-blocking technologies; and regulatory intervention on advertising placement. Lower audience ratings and reduced viewership, which many of our linear television networks have experienced, and likely will continue to experience, as well as the level of popularity of Peacock, affect advertisers’ willingness to purchase advertising from us and the rates paid. Advertising sales and rates also are dependent on the methodology used for audience measurement and could be negatively affected if methodologies do not accurately reflect actual viewership levels.

We create and acquire media, sports and entertainment content, the success of which depends substantially on consumer tastes and preferences that often change in unpredictable ways. To meet the changing preferences of our consumer markets, we must consistently create, acquire, market and distribute a broad array of content and theme park attractions. We have invested, and will continue to invest, substantial amounts in content, such as sports rights, the production of films and original content for television networks and streaming services, and in the creation of new theme parks and theme park attractions, before learning the extent to which they will earn consumer acceptance.

We obtain a significant portion of our content from third parties, such as movie studios, television production companies, sports organizations and other suppliers, sometimes on an exclusive basis. Competition for popular content, particularly for sports programming,rights, is intense. Entering into or renewing contracts for such content rights or acquiring additional rights has in the past resulted, and may result in the future, in significantly increased costs, potentially over an extended contractual term. Particularly with respect to contracts for sports rights, our results of operations and cash flows over the term of a contract depend on a number of factors, including the strength of the advertising market, audience size, the timing and amount of rights payments, and the ability to secure distribution from, impose surcharges on, or obtain carriage on multichannel video providers or to grow and retain subscribers to our own DTC services. There can be no assurance that revenue generated from these contracts will exceed our costs for the rights and of producing and distributing the programming. In addition, media companies may determine not to license popular content to us, and as more content owners offer their content directly to consumers through their own platforms, they may reduce the quantity and quality of the content they license to our linear television networks or Peacock. The inability to enter into or renew some or all of these contracts on acceptable terms could reduce the reach of our programming, which could adversely affect our results of operations and businesses.

Our linear television networks depend on their ability to secure and maintain distribution agreements with traditional and virtual multichannel video providers. The number of subscribers to our television networks has been,decreased, and likely will continue to be, reduceddecrease, as a result of fewerreduced subscribersviewing toof linear television. If our networks do not attract sufficient viewers, both new and existing multichannel video providers asmay thebe mediareluctant distributionto businessdistribute modelour changes.networks or may decide to distribute our networks with significantly less favorable terms. Similarly, multichannel video providers may elect not to enter into agreements to distribute some or all of our linear television networks as a result of these changing market dynamics. In addition, our broadcast television networks depend on their ability to secure and maintain network affiliation agreements with third-party local broadcast television stations in the markets where we do not own the affiliated local broadcast television station. Our owned local broadcast television stations must elect, with respect to retransmission by certain multichannel video providers, either “must-carry” status, in which we require the provider to carry the station without paying any compensation to us, or “retransmission consent,” in which we give up our right to mandatory carriage and instead seek to negotiate the terms and conditions of carriage, including the amount of compensation, if any, paid to us by such provider.

For all of these types of arrangements, our ability to renew agreements on acceptable terms and/or in a timely manner may be affected by evolving market dynamicsdynamics, government regulations and industry consolidation. There can be no assurance that any of these agreements will be entered into or renewed in the future on similar terms. The inability to enter into or renew some or all of these agreements could reduce our revenues and the reach of our programming, which could adversely affect our businesses.

In addition, intellectual property constitutes a significant part of the value of our businesses, and our success is highly dependent on protecting the intellectual property rights of the content we create or acquire against third-party misappropriation, reproduction or infringement. The unauthorized reproduction, distribution or display of copyrighted material negatively affects our ability to generate revenue from the legitimate sale of our content, as well as from the sale of advertising in connection with our content, and increases our costs due to our active enforcement of our intellectual property rights. The legal landscape for new technologies, including AI, remains uncertain, and legal developments could impact our ability to protect our intellectual property against uses by unauthorized third-partythird use,parties, including generative AI developers, misappropriation, reproduction or infringement or impact our ability to deploy new technologies. Our use or adoption of new and emerging technologies may also increase our exposure to intellectual property claims.

Piracy and other unauthorized uses of content are made easier, and the enforcement of intellectual property rights more challenging, by technological advances that allow the conversion of programming, films and other content into digital formats, which facilitates the creation, transmission and sharing of high-quality unauthorized copies. In particular, piracy of programming and films through unauthorized distribution platforms continues to present challenges for our businesses. For example, certain entities may stream our broadcast television content illegally online without our consent and without paying us any compensation, and sporting events on our international networks may be illegally transmitted. While piracy is a challenge in the United States, it is particularly prevalent in many parts of the world that lack developed copyright laws, effective enforcement of copyright laws and technical protective measures like those in effect in the United States. If any U.S. or internationalforeign laws intended to combat piracy and protect intellectual property rights are repealed or weakened or are not adequately enforced, or if the legal system fails to adapt to new technologies that facilitate piracy, we may be unable to effectively protect our rights, the value of our intellectual property may be negatively impacted and our costs of enforcing our rights may increase.

Our success is, to a large extent, dependent on our ability to acquire, develop, adopt and leverage new and existing technologies, such as AI, and our competitors’ use of certain types of technology, including AI,technology and equipment may provide them with a competitive advantage. New technologies can materially impact our businesses in a number of ways, including affecting the demand for our products, the distribution methods of our products and content to our customers, how we create our entertainment products, the ways in which our customers can purchase and view our content and the growth of distribution platforms available to advertisers. For example, current and new wireless internet technologies (including 5G fixed wireless networks and 4G and 5G wireless broadband services) continue to evolve rapidly and may allow for greater speed and reliability for those services as compared with prior technologies and create further competition for our businesses. In addition, some companies and U.S. municipalities are building advanced fiber-based networks that provide very fast internet access speeds, and some providers offer newer satellite broadband services. We expect advances in communications technology to continue to occur in the future.

A cyber attack, information or security breach, or technology disruption or failure may negatively impact our ability to conduct our business or result in the misuse of confidential information, all of which could adversely affect our business, reputation andor results of operations.

Network and information systems and other technologies, including those that are related to our network management, customer service operations and programming delivery and are embedded in our products and services, are critical to our business activities. In the ordinary course of our business, there are constant attempts by unauthorized parties to cause systems-related events and security incidents and to identify and exploit vulnerabilities in security architecture and system design. These incidents include computer hacking, cyber attacks, computer viruses, worms or other destructive or disruptive software, denial of service attacks, phishing attacks, malware, ransomware, malicious social engineering, theft, misconduct, fraud and other malicious activities. Incidents can be caused inadvertently by us or our third-party vendors,vendors due to factors such as process breakdowns, human error, software or hardware failures or vulnerabilities in security architecture or system design.

While we develop and maintain systems, and operate programs that seek to prevent security incidents from occurring, these efforts are costly and must be constantly monitored and updated in the face of sophisticated and rapidly evolving attempts to overcome our security measures and protections. The occurrence of both intentional and unintentional incidents has caused, and may from time to time in the future cause, a variety of business impacts. These include degradation or disruption of our network, products and services, excessive call volume to call centers, theft or misuse of our intellectual property or other assets, disruption of the security of our internal systems, products, services or satellite transmission signals, power outages, and the compromise or exfiltration of sensitive, personal, proprietary, confidential or technical business information and customer or vendor data, and reputational impacts. In addition, despite efforts to detect unlawful intrusions, attacks can persist for an extended period of time before being detected, and following detection, it may take considerable time to understand the nature, scope, impact and timing of the incident. Moreover, the amount and scope of insurance we maintain against losses resulting from any of the foregoing events likely would not be sufficient to fully cover our losses or otherwise adequately compensate us for disruptions to our business that may result. Repercussions of these incidents, some of which weincidents have experienced in the past,past couldincluded and may in the future include litigationlegal proceedings or cause regulators to impose significant finesregulatory fines, oversight or other remedial measures, including with respect to relevant customerconsumer privacy rules, or otherwise have an adverse effect on our company. Despite our efforts, we expect that we will continue to experience such incidents in the future, and there can be no assurance that any such incident will not have an adverse effect on our business, reputation or results of operations. Refer to Item 1C: Cybersecurity for additional information.

From time to time, we make acquisitions and investments and may pursue other strategic initiatives, such as the proposedSeparation Spin-off.of Versant. In connection with such acquisitions and strategic initiatives, we may incur significant or unanticipated expenses,expenses and dyssynergies, fail to realize anticipated benefits and synergies, have difficulty incorporating an acquired or new line of business, disrupt relationships with current and new employees, customers and vendors, incur significant debt, divert the attention of management from our current operations, or have to delay or not proceed with announced transactions or initiatives. These and other circumstances could also result in the impairment of goodwill and long-lived assets. Additionally, federal regulatory or antitrust agencies such as the FCC or DOJ or international regulators may impose restrictions on the operation of our businesses as a result of our seeking regulatory approvals for any significant acquisitions and strategic initiatives or may dissuade us from pursuing certain transactions. The occurrence of any of these events could have an adverse effect on our business and results of operations.

We operate our businesses worldwide. There are risks inherent in doing business internationally, including global financial market turmoil; economic volatility and global economic slowdown; currency exchange rate fluctuations and inflationary pressures; geopolitical risks, including acts of terror and war; requirements of local laws and customs relating to the publication and distribution of content and the display and sale of advertising; changes in import or export restrictions, tariffs, sanctions and trade policies and regulations; difficulties in developing, staffing and managing foreign operations; issues related to occupational safety and adherence to diverse local labor laws and regulations; and potentially adverse tax developments. Additionally, although we employ foreign currency derivative instruments to hedge certain exposure to foreign currency exchange rate risks, including the British pound, euro and Japanese yen, the use of such derivative instruments may not be sufficient to mitigate exchange rate fluctuations. In addition, doing business internationally subjects us to risks relating to political or social unrest, as well as corruption and government regulations, including U.S. laws such as the Foreign Corrupt Practices Act and the U.K. Bribery Act, that impose stringent requirements on how we conduct our foreign operations. Moreover, foreign enforcement of laws and contractual rights in certain countries where we do business can be inconsistent and unpredictable, which may affect our ability to enforce our rights or make investments that we believe otherwise make strategic sense. If any of these events occur or our conduct does not comply with such laws and regulations, our businesses may be adversely affected.

Our businesses are subject to various federal, state, local and federalforeign laws and regulations. In the United States in particular, the Communications Act and FCC rulesregulations and regulationspolicies affect significant aspects of our communications businesses.

Legislative and regulatory activity has increased in recent years, particularly with respect to broadband networks. For example, Congress has approved tens of billions of dollars in new funding for broadband deployment and adoption initiatives, and it may from time to time consider other proposals that address communications issues, including whether it should rewrite the Communications Act to account for changes in the communications marketplace. Federal agencies have considered adopting new regulations for communications services, including broadband, althoughfrom ittime isto uncertain whether those initiatives will continue under the new Administration.time. States and localities are increasingly proposing new regulations impacting communications services, including broader regulation of broadband networks. Regulators in various international jurisdictions are similarly considering changes to telecommunications and media requirements. Any of these regulations could significantly affect our business and our legal and compliance costs.

We are subject from time to time to a number of lawsuits both in the United States and in foreign countries, including claims relating to competition, intellectual property rights (including copyrights, trademarks and patents), employment and labor matters, personal injury and property damage, defamation, disparagement, libel, free speech, negligence, customer privacy, regulatory requirements, advertising, marketing and selling practices, and credit and collection issues. Greater constraints on the use of arbitration to resolve certain of these disputes could adversely affect our business. We also spend substantial resources complying with various regulatory and government standards, including any related investigations and litigation. WeGreater mayconstraints incuron the use of arbitration to resolve certain of these disputes also could adversely affect our business. Adverse outcomes in any lawsuits or investigations could result in significant expensesmonetary defending any such suitdamages or governmentinjunctive charge and may be required to pay amounts or otherwise change our operations in waysrelief that could adversely impactaffect our businesses, results of operations or financial condition. In addition, regardless of the ultimate merit or outcome of such lawsuits, investigations or claims, these proceedings may have an adverse impact on our business as a result of legal costs, diversion of the attention of management and other personnel, harm to our reputation and other factors.

Our Class B common stock has substantial voting rights and separate approval rights over several potentially material transactions, and our Chairman and CEOCo-CEO has considerable influence over our company through his beneficial ownership of our Class B common stock.

Our Class B common stock has a non-dilutable 33 1/3% of the combined voting power of our Class A and Class B common stock. This non-dilutable voting power is subject to proportional decrease to the extent the number of shares of Class B common stock is reduced below 9,444,375, which was the number of shares of Class B common stock outstanding on the date of our 2002 acquisition of AT&T Corp.’s cable business, subject to adjustment in specified situations. Stock dividends payable on the Class B common stock in the form of Class B or Class A common stock do not decrease the non-dilutable voting power of the Class B common stock. The Class B common stock also has separate approval rights over several potentially material transactions, even if they are approved by our Board of Directors or by our other shareholders and even if they might be in the best interests of our other shareholders. These potentially material transactions include mergers or consolidations involving us, transactions (such as a sale of all or substantially all of our assets) or issuances of securities that require shareholder approval, transactions that result in any person or group owning shares representing more than 10% of the combined voting power of the resulting or surviving corporation, issuances of Class B common stock or securities exercisable or convertible into Class B common stock, and amendments to our articles of incorporation or by-lawsbylaws that would limit the rights of holders of our Class B common stock. Brian L. Roberts, our chairman and CEO,Co-CEO, beneficially owns all of the outstanding shares of our Class B common stock and, accordingly, has considerable influence over our company and the potential ability to transfer effective control by selling the Class B common stock, which could be at a premium.

We are a global media and technology company with two primary businesses: Connectivity & Platforms and Content & Experiences. We present the operations of (1) our Connectivity & Platforms business in two segments: Residential Connectivity & Platforms and Business Services Connectivity; and (2) our Content & Experiences business in three segments: Media, Studios and Theme Parks. The discussion and analysis that follows includes the results of the cable television networks and complementary digital assets proposed to be included in the Spin-off and does not reflect or give effect to what our results of operations and financial condition may be following the Spin-off, if consummated.

The following graph illustrates the contributions to the change in consolidated costs and expenses, excluding depreciation expense and amortization expense, made by our Connectivity & Platforms and Content & Experiences businesses, as well as by Corporate and Other activities, including adjustments and eliminations. The increase in adjustments in the current year is primarily driven by transaction and transaction-related costs associated with the Separation of Versant that are excluded from Adjusted EBITDA and our segment operating results.

Consolidated depreciation and amortization expense increased in 20242025 compared to 20232024 primarily due to increased amortization of certain acquisition-related intangible assets related to the linear media business, partiallyincreased offsetdepreciation bydue ato decreasethe opening of Epic Universe in depreciationMay 2025, impairments of ourcertain internationallong-lived propertyassets in 2025 and equipment and a decrease in the amortizationimpact of software.foreign currency.

Amortization expense from acquisition-related intangible assets totaled $2.7$3.3 billion and $2.3$2.7 billion in 20242025 and 2023,2024, respectively. Amounts primarily relate to customer relationship intangible assets recorded in connection with the NBCUniversal transaction in 2011 and the Sky transaction in 2018 and the NBCUniversal transaction in 2011.2018.

Consolidated interest expense increased in 20242025 compared to 20232024 primarily due to ana increasedecrease in averagecapitalized debtinterest outstandingdriven andby the opening of Epic Universe, as well as higher weighted-average interest rates in the current year, partially offset by interest expense in the prior year associated with a collateralized obligation that was repaid in the fourth quarter of 2023.year.

The change in equity in net income (losses) of investees, net in 20242025 compared to 20232024 was primarily due to our investmentinvestments in Atairos.Atairos and Hulu. The income (losses) at Atairos were driven by fair value adjustments on its underlying investments with income (loss) of $(474377) million and $1.1$(474) billionmillion in 20242025 and 2023,2024, respectively.

The change in realized and unrealized gains (losses) on equity securities, net in 20242025 compared to 20232024 was primarily due to a gain on the sale of a nonmarketable security in the current year and due to higher net unrealized losses on nonmarketable securities in the currentprior year.

The change in other income (loss), net in 20242025 compared to 20232024 primarily resulted from foreigna exchange$9.4 remeasurement.billion pre-tax gain from the sale of our interest in Hulu in 2025 (see Note 8).

The decreaseincrease in income tax expense in 20242025 was primarily driven by a tax benefit in the prior year from an internal corporate reorganization completed in 2024,2024 asand well as lowerhigher domestic income before income taxes.taxes in the current year.

The changes in net income (loss) attributable to noncontrolling interests in 20242025 compared to 20232024 waswere primarily due to our regional sports networks.networks and Universal Beijing Resort.

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 competitive environment, which has increased in recent years, has had negative impacts on ourOur customer relationshipsrelationship additions/(losses). Incontinue addition,to governmentbe fundingnegatively forimpacted theby Affordablean Connectivityincreasingly Program,competitive whichenvironment. providedWe aare monthly discount towards broadband service for eligible low-income households, expired during the second quarter of 2024, which had a negative impactfocused on our residential domestic broadband customer relationships. We believeincreasing our residential connectivity revenuerevenue. 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 increaseimprove ascustomer aretention resultand ofstrengthen growthour inability to compete for new customers, but will negatively impact average domestic broadband revenue per customer,customer. asWe well as increases in domestic wireless and international connectivity revenue. At the same time, wealso 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.expenses, Weas alsowell expectas continued declines in other revenue related to declines in wireline voice revenue. We believeare also focused on growing our Business Services Connectivity segment will continue to growrevenue by offering competitive services, including enterprise solutions, and driving higher adoption of our advanced solutions.

(b)Business Services Connectivity customer metrics are generally counted based on the number of locationsconnections receiving services, including locationsconnections within our network in the United States, as well as locationsconnections outside of our network both in the United States and internationally. Certain arrangements whereby third parties provide connectivity services leveraging our network are also generally counted based on the number of locationsconnections served.

(cd)Domestic wireless lines represent the number of residential and business customers’ wireless devices. An individual customer relationship may have multiple wireless lines.

(de)Connectivity & Platforms domestic homes and businesses are considered passed if we can connect them to our network in the United States without further extending the transmission lines. Homes and businesses passed is an estimate based on the best available information.

(ef)Penetration is calculated by dividing the number of domestic customers located within our network by the number of domestic homes and businesses passed.

(b)Technical and support expenses primarily consistsconsist of costs for labor to complete service call and installation activities; and costs for network operations and satellite transmission, product development, fulfillment and provisioning.

(c)Direct product costs primarily consistsconsist of access fees related to using wireless and broadband networks owned by third parties to deliver our services and costs of products sold, including wireless devices and Sky Glass smart televisions.

(d)Marketing and promotion expenses primarily consistsconsist of the costs associated with attracting new customers and promoting our service offerings.

(e)Customer service expenses primarily consistsconsist of the personnel and other costs associated with customer service and certain selling activities.

(f)Other expenses primarily consistsconsist of administrative personnel costs; franchise and other regulatory fees; fees paid to third parties where we sell advertising on their behalf; bad debt; building and office expenses, taxes and billing costs; and other business, headquarters and support costs necessary to operate the Connectivity & Platforms business.

(ab)Constant currency is a non-GAAP financial measure. Refer to the “Non-GAAP Financial Measures” section on page 4446 for additional information, including our definition and our use of constant currency, and for a reconciliation of constant currency amounts.

Domestic broadband revenue primarily consists of revenue from sales of broadband services to residential customers in the United States, including equipment and installation services. Domestic broadband revenue also includes revenue related to Xumo Stream Boxes and commission revenue from the sale of certain DTC streaming services.

Domestic broadband revenue increasedremained consistent in 2024 primarily2025 due to an increase in average rates.rates, offset by a decline in the number of domestic broadband customers.

International connectivity revenue primarily consists of revenue from sales of broadband services, including equipment and installation services, wireless servicesdevices and wireless devicesservices to residential customers in the United Kingdom and Italy, as well as commission revenue from the sale of certain third-party DTC streaming services.Italy.

International connectivity revenue increased in 20242025 primarily due to an increase in broadband revenue resulting from an increase in average rates and an increase in wireless revenue primarily resulting from an increase in the salenumber of wirelesscustomer services.lines Thisand increasedevice includessales. These increases include the positive impact of foreign currency.

Video revenue primarily consists of revenue from sales of video services to residential and business customers across the Connectivity & Platforms markets, including equipment and installation services. Video revenue includes pay-per-view and other transactional revenue and franchise fees, as well as revenue from sales of certain hardware, including Sky Glass smart televisions.televisions, commission revenue from the sale of certain DTC streaming services, and revenue related to Xumo Stream Boxes.

Video revenue decreased in 20242025 due to declines in the overall number of video customers, partially offset by an overall increase in average rates.rates and the positive impact of foreign currency.

Advertising revenue increaseddecreased in 20242025 primarily driven by an increase inlower domestic political and nonpolitical advertising, partially offset by lowerthe domesticpositive nonpoliticalimpact advertising.of foreign currency.

Programming expenses decreased in 20242025 primarily due to a decline in the number of domestic video subscribers, partially offset by rate increases under our domestic contractualprogramming ratecontracts, increases.an increase in programming expenses for our international sports networks and the impact of foreign currency.

Other expenses increased in 20242025 primarily due to an increase inincreased direct product costs, the impact of foreign currency and higherincreased technicalspending on marketing and support costs,promotion, partially offset by lowera severance chargesdecrease in 2024 compared to severancefranchise and other chargesregulatory fees, and a decrease in 2023.fees paid to third parties relating to advertising sales.

Business services connectivity revenue increased in 20242025 primarily due to an increase in revenue from enterprise solutions offeringsofferings, including the results from Nitel, which was acquired in April 2025, and from higheran ratesincrease in revenue from small business customers.

Business services connectivity costs and expenses increased in 20242025 primarily due to increases in direct product costs, marketingwhich andinclude promotionthe expenses,results andfrom technical and support expenses. Severance charges in 2024 were consistent compared to severance and other charges in 2023.Nitel.

We operate our Media segment as a combined television and streaming business and will continue to do so following the Separation of the Versant business. We expect that the number of subscribers and audience ratings at our remaining linear television networks will continue to decline as a result of the competitive environment and shifting video consumption patterns, which we aim to mitigate over time by continued growth in both paid subscribers and advertising revenue at Peacock. We expect to continue to incur significant costs related to content and marketing at Peacock. Revenue and programming expenses are also impacted by the timing of certain sporting events, including the Paris Olympics in the third quarter of 2024 and ourthe acquisitionNBA beginning in the fourth quarter of NBA2025. rights,We whichexpect beginlower revenue and costs and expenses for the Media segment in 2025.2026 as a result of the Separation of Versant.

Our Studios segment generates revenue primarily from third parties and from licensing content to our Media segment. While the results of operations for our Studios segment are not impacted, results for our total Content & Experiences business may be impacted as the Studios segment licenses content to the Media segment, including for Peacock, rather than licensing the content to third parties. The Writers Guild and the SAG work stoppages from May to September 2023 and July to November 2023, respectively, resulted in reduced content licensing revenue at our Studios segment and reduced programming and production costs at both our Studios and Media segments in 2023.

We continue to invest significantly in existing and new theme park attractions, hotels and infrastructure, including Epic Universe in Orlando, which we expect will openopened in May 2025, as well as in new destinations and experiences, which we believe will haveincluding a positiveUniversal impacttheme on attendancepark and guestresort spendingin atthe ourUnited themeKingdom parks.with a projected opening date in 2031, subject to various approvals.

Revenue increaseddecreased in 20242025 primarily due to the Paris Olympics in 2024. Excluding incremental revenue associated with this event, revenue increased in 20242025 driven by increases in international networks, domestic distribution and internationalother networksrevenue, partially offset by a decrease in domestic advertising revenue.

Domestic advertising revenue increaseddecreased in 20242025 primarily due to the Paris Olympics in 2024. Excluding incremental revenue associated with this event, domestic advertising revenue remained consistentdecreased in 20242025 primarily due to a decrease in revenue at our linear television networks, partially offset by an increase in revenue at Peacock.

Domestic distribution revenue increaseddecreased in 2024,2025, including the impact of the Paris Olympics in 2024. Excluding incremental revenue associated with this event, domestic distribution revenue increased in 20242025 primarily due to an increase in Peacockrevenue paidat subscribers,Peacock, partially offset by a decrease in revenue at our linear television networks. The decrease at our linear television networks was primarily due to a decline in the number of subscribers, partially offset by contractual rate increases.

Media segment total revenue included $4.9$5.4 billion and $3.4$4.9 billion related to Peacock in 20242025 and 2023,2024, respectively, including amounts related to the Paris Olympics in 2024. We had 3644 million and 3136 million paid subscribers of Peacock as of 20242025 and 2023,2024, respectively. Peacock paid subscribers represent customers from which we recognize distribution revenue, including both customers that pay us directly and customers receiving the service through arrangements with companies who sell Peacock on our behalf. In these arrangements, paid subscribers are counted based on the terms of the arrangement when the related revenue is recognized. As a result, certain customers are counted when they activate their account, while other customers are counted when the Peacock service is made available to them as part of their bundled service offering regardless of whether it is activated. The increase in paid subscribers in 2025 is mainly due to the availability of Peacock through third-party bundled service offerings.

Programming and production costs increaseddecreased in 20242025 primarily due to costs associated with the Paris Olympics,Olympics in 2024, partially offset by an increase in other sports programming costs for our domesticinternational television networks,networks and the impact of foreign currency, an increase in entertainment content costs for our television networks, including the impact of the Writers Guild and SAG work stoppages in the prior year, and higher programming costs at Peacock.currency.

Marketing and promotion expenses increasedremained consistent in 20242025 primarily due to increased costs associated with the Paris Olympics,Olympics partiallyin 2024, offset by lowerhigher costs related to marketing for entertainmentour programming.linear television networks.

Other expenses increasedremained consistent in 20242025 primarily due to higher severance charges in 2024, offset by an increase in costs related to Peacock and higher severance charges in 2024.Peacock.

Content licensing revenue decreasedincreased in 20242025 primarily due to the timing of when content was made available by our film studios, partially offset by the timing of when content was made available by our television studios under licensing agreements, includingpartially offset by the impacttiming of thewhen Writerscontent Guildwas andmade SAGavailable workby stoppagesour infilm the prior year.studios.

Theatrical revenue decreased in 20242025 primarily due to higher revenue from releases in our 2023 slate, including The Super Mario Bros. Movie, Oppenheimer and Fast X, compared to revenue from releases in our 2024 slate, including Despicable Me 4, Wicked, and Kung Fu Panda 4.4, compared to revenue from releases in our 2025 slate, including Jurassic World Rebirth, How to Train Your Dragon and Wicked: For Good.

Programming and production costs primarily consists of the amortization of capitalized film and television production and acquisition costs; residualsparticipations and participationsresiduals expenses; and distribution expenses.

Programming and production costs decreasedincreased in 20242025 primarily due to lower costs associated with theatrical releases, partially offset by higher costs associated with content licensing sales, includingpartially theoffset impactby oflower thecosts Writersassociated Guildwith andtheatrical SAG work stoppages in the prior year.releases.

Marketing and promotion expenses decreasedincreased in 20242025 primarily due to decreasedincreased spending on current year and upcoming theatrical film releases.

Theme parks segment costs and expenses increased in 20242025 primarily due to higheroperating costs associated with park operations and preopening costs for Epic Universe, partially offset by the impact of foreign currency. We expect to incur additional preopening costs for Epic Universe ahead of the expected opening in May 2025.Universe.

Headquarters and Other expenses primarily consistsconsist of overhead, personnel and other costs necessary to operate the Content & Experiences business. Expenses decreased in 2024 primarily due to higher severance charges in 2023.

Corporate and Other primarily consists of overhead and personnel costs; Sky-branded video services and television networks in Germany; Comcast Spectacor, which owns the Philadelphia Flyers and the WellsXfinity FargoMobile Center arenaArena in Philadelphia, Pennsylvania; and Xumo, our consolidated streaming platform joint venture.

The Versant Separation of Versant occurred on January 2, 2026. The results of Versant are included in our consolidated results of operations for the three and six months ended MarchJune 31,30, 2025 and are excluded from our segment operating results (see Note 2). The sale of our Sky operations in Germany was completed on May 31, 2026; its results are included in our consolidated results of operations through the date of sale (see Note 6) and are excluded from our segment operating results.

Consolidated interestrevenue expense increaseddecreased for the three months ended MarchJune 31,30, 2026 compared to the same period in 2025 primarily due to decreasesthe Versant Separation and a decrease in capitalizedthe interestConnectivity driven& Platforms business, partially offset by an increase in the openingContent of& EpicExperiences Universe.business.

Consolidated netdepreciation incomeand (loss)amortization attributableexpense to noncontrolling interests changeddecreased for the three months ended MarchJune 31,30, 2026 compared to the same period in 2025 primarily due to ourlower regionalamortization sportsof networkscustomer relationships and Universalother Beijingagreements Resort.and rights due to the Versant Separation and an impairment of certain long-lived assets in the prior year period.

(b)Total Residential Connectivity & Platforms customer relationships and International Residential Connectivity & Platforms customer relationships were updated in the first quarter of 2026 due to a conforming change in methodology, resulting in a decrease of 125,000 customers. There was no impact to net additions and information for the prior periodperiods has been recast on a comparable basis.

(c)Connectivity & Platforms domestic residential passings are considered passedpassings if we can connect them to our network in the United States without further extending the transmission lines. The number of domestic residential passings is an estimate based on the best available information.

Domestic broadband revenue primarily consists of revenue from sales of broadband services to residential customers in the United States, including equipment and installation sales.services. Domestic broadband revenue also includes commission revenue from the sale of DTC streaming services that a customer is entitled to receive through a broadband service offering, as well as revenue from streaming devices available to our broadband customers.

Domestic broadband revenue decreased for the three and six months ended MarchJune 31,30, 2026 compared to the same periodperiods in 2025 due to a decreasedecreases in average rates and a declinedeclines in the number of domestic broadband customers.

Domestic wireless service revenue increased for the three and six months ended MarchJune 31,30, 2026 compared to the same periodperiods in 2025 due to an increaseincreases in the number of customer lines.

Domestic wireless equipment revenue increased for the three and six months ended MarchJune 31,30, 2026 compared to the same periodperiods in 2025 due to an increaseincreases in the number of device sales.

AdvertisingInternational connectivity revenue increased for the three months ended MarchJune 31,30, 2026 compared to the same period in 2025 primarily due to an increase in revenuewireless fromrevenue, ourreflecting advancedhigher advertisingequipment business,and services revenue, as well as the positive impact fromof foreign currency and higher domestic political advertising.currency.

Other revenue decreased for the three and six months ended MarchJune 31,30, 2026 compared to the same periodperiods in 2025 primarily due to a decreasedecreases in residential wireline voice revenue driven by a declinedeclines in the number of customers.

Programming expenses decreased for the three and six months ended MarchJune 31,30, 2026 compared to the same periodperiods in 2025 primarily due to a declinedeclines in the number of domestic video subscribers,subscribers. The decrease for the six months ended June 30, 2026 is partially offset by the impact of foreign currency.

Other expenses increased for the three months ended MarchJune 31,30, 2026 compared to the same period in 2025 primarily due to increased direct product costs,costs themainly impactdue ofto foreigngrowth currencyin andour domestic wireless business, increased spending on marketing and promotion.promotion, and the impact of foreign currency.

Business services connectivity revenue increased for the three and six months ended MarchJune 31,30, 2026 compared to the same periodperiods in 2025 primarily due to an increaseincreases in revenue from enterprise solutions offerings,offerings. includingThe increase in enterprise solutions offerings for the resultssix frommonths Nitel,ended whichJune was30, acquired2026 inreflects the April 2025.2025 acquisition of Nitel.

Business services connectivity costs and expenses increased for the three and six months ended MarchJune 31,30, 2026 compared to the same periodperiods in 2025 primarily due to anincreases in marketing and promotion expenses and increases in direct product costs. The increase in direct product costs,costs which includefor the resultssix frommonths Nitel,ended andJune an30, increase2026 inreflects marketingthe andApril promotion2025 expenses.acquisition of Nitel.

We operate our Media segment as a combined television and streaming business. We expect that the number of subscribers and audience ratings at our linear television networks will continue to decline as a result of the competitive environment and shifting video consumption patterns, which we aim to mitigate over time by growth in both paid subscribers and advertising revenue at Peacock. We expect to continue to incur significant costs related to content and marketing at Peacock. Revenue and programming expenses are also impacted by the timing of certain sporting events, including the Milan Cortina Olympics andOlympics, Super Bowl and FIFA World Cup in the firstcurrent quarteryear of 2026period and the NBA season beginning in the fourth quarter of 2025.

We continue to invest significantly in existing and new theme park attractions, hotels and infrastructure, including Epic Universe in Orlando, which opened in May 2025, as well as in new destinations and experiences, including Universal United Kingdom Resort, a Universal theme park and resort in the United Kingdom with a projected opening date in 2031, subject to various approvals.2031.

Revenue increased for the three months ended MarchJune 31,30, 2026 compared to the same period in 2025, including the impact of the FIFA World Cup in the second quarter of 2026. Revenue increased for the six months ended June 30, 2026 compared to the same period in 2025 primarily due to the Milan Cortina Olympics andOlympics, Super Bowl inand theFIFA firstWorld quarter of 2026.Cup. Excluding incremental revenue associated with these events, revenue for the three and six months ended MarchJune 31,30, 2026 increased primarily due to increases in domestic distribution, domestic advertising and international networks and domestic advertising revenue.

Domestic advertising revenue increased for the three months ended MarchJune 31,30, 2026 compared to the same period in 20252025, primarily due toincluding the Milanimpact Cortina Olympics and Super Bowl inof the firstFIFA quarterWorld of 2026.Cup. Excluding the incremental revenue associated with thesethis events,event, domestic advertising revenue increased for the three months ended MarchJune 31,30, 2026 primarily due to an increase in revenue at Peacock,our partiallylinear offsettelevision bynetworks aand decreasean increase in revenue at our linear television networks.Peacock.

Domestic distribution revenue increased for the three months ended MarchJune 31,30, 2026 compared to the same period in 2025, including the impact of the Milan Cortina Olympics in the first quarter of 2026. Excluding the incremental revenue associated with this event, domestic distribution revenue increased for the three months ended March 31, 20262025 primarily due to an increase in revenue at Peacock driven by higher average rates and an increase in paid subscribers and higher average rates compared to the prior year period, partially offset by a decrease in revenue at our linear television networks. The decrease at our linear television networks was primarily due to a decline in the number of subscribers, partially offset by contractual rate increases.

International networks revenue increased for the three and six months ended MarchJune 31,30, 2026 compared to the same periodperiods in 2025 primarily due to the positive impact of foreign currency.

Media segment total revenue included $2.1$1.9 billion and $4.0 billion related to Peacock for the three and six months ended MarchJune 31,30, 2026, respectively, including amounts related to the FIFA World Cup for the three months ended June 30, 2026 and to the Milan Cortina OlympicsOlympics, Super Bowl, and SuperFIFA Bowl.World Cup for the six months ended June 30, 2026. Media segment total revenue included $1.2 billion and $2.5 billion related to Peacock for the three and six months ended MarchJune 31,30, 2025.2025, respectively. Peacock revenue includes advertising, distribution and other revenue for our Peacock DTC streaming service, as well as distribution and advertising revenue from NBC Sports Network due to shared programming. We had 4648 million and 41 million paid subscribers of Peacock as of MarchJune 31,30, 2026 and 2025, respectively. Peacock paid subscribers represent customers from which we recognize distribution revenue from the Peacock service, including both customers that pay us directly and customers receiving the service through arrangements with companies who sell Peacock on our behalf. In these arrangements, paid subscribers are counted based on the terms of the arrangement when the related revenue is recognized. As a result, certain customers are counted when they activate their account, while other customers are counted when the Peacock service is made available to them as part of their bundled service offering regardless of whether it is activated.

Programming and production costs increased for the three months ended MarchJune 31,30, 2026 compared to the same period in 2025 primarily due to costs associated with the Milan Cortina Olympics and Super Bowl and an increase due to the impact of NBA rights and costs associated with the FIFA World Cup in the current year period.

Marketing and promotion expenses increased for the three months ended MarchJune 31,30, 2026 compared to the same period in 2025 primarily due to higher costs associated with the FIFA World Cup, partially offset by lower costs related to marketing for Peacock and higher costs associated with the Milan Cortina Olympics.Peacock.