Product Trade In — Contract with Customer, Liability
Products & Services · Contract with Customer, LiabilityVerizon Communications Product Trade In — Contract with Customer, Liability increased by 10.7% to $332.00M in Q4 2025 compared to the prior quarter. Year-over-year, this metric declined by 16.2%, from $396.00M to $332.00M. Over 2 years (FY 2023 to FY 2025), Product Trade In — Contract with Customer, Liability shows a downward trend with a -18.2% 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
| Q4 '21 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $366.00M | $562.00M | $527.00M | $449.00M | $400.00M | $566.00M | $522.00M | $421.00M | $341.00M | $396.00M | $325.00M | $342.00M | $300.00M | $332.00M |
| QoQ Change | — | +53.6% | -6.2% | -14.8% | -10.9% | +41.5% | -7.8% | -19.3% | -19.0% | +16.1% | -17.9% | +5.2% | -12.3% | +10.7% |
| YoY Change | — | +53.6% | — | — | — | +0.7% | -0.9% | -6.2% | -14.8% | -30.0% | -37.7% | -18.8% | -12.0% | -16.2% |
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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 $332.00M in Q4 2025.
- 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 16.2% year-over-year, from $396.00M to $332.00M.
- What is the long-term trend for Verizon Communications's product trade in — contract with customer, liability?
- Over 2 years (2023 to 2025), Verizon Communications's product trade in — contract with customer, liability has grown at a -18.2% compound annual growth rate (CAGR), from $1.94B to $1.30B.
- 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.