Product Trade-in — Contract with Customer, Liability
Verizon Communications Product Trade-in — Contract with Customer, Liability decreased by 8.1% to $305M in Q1 2026 compared to the prior quarter. Year-over-year, this metric declined by 6.2%, from $325M to $305M. Over 3 years (FY 2021 to FY 2025), Product Trade-in — Contract with Customer, Liability shows an upward trend with a 15.8% CAGR.
Analysis
How to read this metric
An increase in this liability suggests higher customer upgrade activity or more aggressive promotional trade-in programs, which may signal future revenue recognition or increased customer retention efforts. A decrease may indicate lower upgrade volumes or a shift in promotional strategy.
Detailed definition
This metric represents the financial obligation recognized when a customer trades in a device as part of a service contr...
Peer comparison
Comparable to 'Deferred Revenue' or 'Contract Liabilities' related to equipment trade-in programs at other major wireless carriers like AT&T or T-Mobile.
vz_segment_product_trade_in_contract_with_customer_liabilityHistorical Data
| Q2 '21 | Q3 '21 | Q4 '21 | Q1 '22 | Q4 '22 | Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $174M | $192M | $366M | $372M | $562M | $527M | $449M | $400M | $566M | $522M | $421M | $341M | $396M | $325M | $342M | $300M | $332M | $305M |
| QoQ Change | — | +10.3% | +90.6% | +1.6% | +51.1% | -6.2% | -14.8% | -10.9% | +41.5% | -7.8% | -19.3% | -19.0% | +16.1% | -17.9% | +5.2% | -12.3% | +10.7% | -8.1% |
| YoY Change | — | — | — | — | +53.6% | +41.7% | — | — | +0.7% | -0.9% | -6.2% | -14.8% | -30.0% | -37.7% | -18.8% | -12.0% | -16.2% | -6.2% |
Similar Metrics at Other Companies
Frequently Asked Questions
- What is Verizon Communications's product trade-in — contract with customer, liability?
- Verizon Communications (VZ) reported product trade-in — contract with customer, liability of $305M in Q1 2026.
- How has Verizon Communications's product trade-in — contract with customer, liability changed year-over-year?
- Verizon Communications's product trade-in — contract with customer, liability decreased by 6.2% year-over-year, from $325M to $305M.
- What is the long-term trend for Verizon Communications's product trade-in — contract with customer, liability?
- Over 3 years (2021 to 2025), Verizon Communications's product trade-in — contract with customer, liability has grown at a 15.8% compound annual growth rate (CAGR), from $836M to $1.3B.
- What does product trade-in — contract with customer, liability mean?
- The value of customer-traded devices that the company owes as a credit against future service or equipment costs.