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TEF

Telefónica, S.A.

TEF

Telefónica, S.A. • NYSE
$4.29 ▲ 0.47% (+0.02)
Market Cap $24.20 B
52w High $5.72
52w Low $3.89
Dividend Yield 0.35%
P/E -19.5
Volume 337.49K
Outstanding Shares 5.64B

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $9.36B ▲ $2.181B ▼ $276M ▲ 2.949% ▲ $0.048 ▲ $4.644B ▲
Q2-2025 $8.792B ▼ $7.792B ▼ $-51M ▲ -0.58% ▲ $-0.009 ▲ $3.431B ▲
Q1-2025 $9.221B ▼ $8.112B ▼ $-1.304B ▼ -14.142% ▼ $-0.23 ▼ $2.686B ▼
Q4-2024 $10.897B ▲ $11.305B ▲ $-1.038B ▼ -9.526% ▼ $-0.2 ▼ $3.544B ▲
Q3-2024 $10.023B $9.283B $10M 0.1% $0.002 $2.939B

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $6.374B ▼ $92.568B ▼ $71.225B ▼ $17.614B ▲
Q2-2025 $8.194B ▼ $94.369B ▼ $73.395B ▼ $17.283B ▼
Q1-2025 $10.151B ▲ $99.014B ▼ $75.349B ▼ $19.717B ▲
Q4-2024 $9.262B ▲ $100.502B ▲ $77.753B ▲ $19.347B ▼
Q3-2024 $8.704B $100.484B $76.344B $20.562B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $316.676M ▲ $2.444B ▼ $-1.47B ▲ $-3.327B ▼ $-2.475B ▼ $864.177M ▼
Q2-2025 $149.731M ▲ $2.899B ▲ $-2.34B ▼ $-1.052B ▲ $10.762M ▲ $1.438B ▲
Q1-2025 $0 $1.837B ▼ $-1.734B ▼ $-1.067B ▲ $-1.003B ▼ $429M ▼
Q4-2024 $0 ▼ $3.874B ▲ $-463M ▲ $-1.568B ▼ $1.737B ▲ $2.158B ▲
Q3-2024 $10.985M $2.746B $-723.687M $-875.768M $1.413B $1.704B

Five-Year Company Overview

Income Statement

Income Statement Telefónica’s revenue has been fairly steady, with a slight recovery after the pandemic dip, but profitability has been very uneven. Operating profit and EBITDA jump around a lot from year to year, which usually reflects one‑off items such as asset sales, impairments, or restructuring costs rather than a smooth, growing core business. After a couple of profitable years, the company slipped back into small losses recently, showing how tight margins are in telecom and how sensitive results are to write‑downs and competitive pressure. Overall, this looks like a mature business fighting to protect profitability in a tough market, rather than a clear growth story on the income statement today.

Balance Sheet

Balance Sheet The balance sheet shows a large, asset‑heavy infrastructure business with meaningful leverage. Total assets have edged down slightly, suggesting some discipline around investments and possible asset disposals. Cash balances are reasonably stable, giving a liquidity cushion, but debt is high relative to the company’s equity base, and equity has been drifting lower. This combination points to a capital structure that needs ongoing careful management: the network is a long‑lived strength, but it comes with sizeable financing and refinancing risk that can matter if interest costs rise or cash flows weaken.

Cash Flow

Cash Flow Despite the noisy accounting earnings, cash generation from operations has been solid and quite stable over the last few years. The company continues to spend heavily on its networks and technology, but capital spending has been gradually trending down from earlier peaks. Even after this investment, free cash flow has consistently remained positive, which is a key strength: the core telecom activities are still throwing off cash. The story here is a cash‑generative, capital‑intensive utility‑like business, where the main questions are how that cash is allocated—debt reduction, network upgrades, or shareholder returns—rather than whether cash is being generated at all.

Competitive Edge

Competitive Edge Telefónica is a major incumbent in its core markets, with strong brands like Movistar, O2, and Vivo and very extensive fixed and mobile networks. This scale and network depth are real advantages and hard for new entrants to match. However, telecom services themselves are often commoditized: customers can switch relatively easily, regulation keeps prices in check, and rivals are also investing in high‑quality networks. External research that views Telefónica as having little durable “moat” reflects this reality—its strengths are more about size and reach than about unique products or high switching costs. The competitive position is solid but pressured, and success hinges on using its network and customer base to sell higher‑value digital services, especially to businesses.

Innovation and R&D

Innovation and R&D Telefónica is trying to move beyond being just a connectivity provider by leaning heavily into innovation. It is investing in advanced 5G (including standalone 5G and network slicing), network virtualization and Open RAN to make its networks more flexible and efficient. AI is being woven into network management and customer experience, with analytics tools that can predict traffic patterns and detect threats. Through Telefónica Tech, the company offers cybersecurity, cloud, IoT, and data services, aiming to become a digital partner for enterprises rather than just their carrier. Its Wayra startup hub and the GSMA Open Gateway initiative—turning network capabilities into programmable APIs for developers—are bolder, more experimental moves. The big open question is how quickly and how profitably these innovations can be scaled, and whether they can offset the structural pressure in the traditional telecom business.

Summary

Overall, Telefónica looks like a mature telecom operator in the middle of a strategic transition. The core business delivers steady revenue and reliable cash flow, but earnings are volatile and margins are under pressure. The balance sheet carries meaningful debt, which is manageable today but limits room for error and makes disciplined capital allocation important. On the positive side, the company benefits from strong brands, large networks, and entrenched positions in key markets. Its innovation agenda—5G, AI‑driven networks, cybersecurity, cloud, IoT, and programmable network APIs—offers real opportunities to shift towards higher‑value, more differentiated services. The medium‑term story hinges on execution: managing debt and investment carefully while proving that these digital and tech initiatives can translate into more stable, higher‑quality profits in a very competitive and regulated industry.

NEWS

November 26, 2025 · 3:00 AM UTC

Nokia and Telefónica Germany agree 5-year RAN deal to advance 5G expansion

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November 11, 2025 · 4:05 PM UTC

Telefónica Germany Selects Amdocs to Deploy GenAI Use Cases and Extend its Billing Platform

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September 5, 2025 · 9:00 AM UTC

Millicom (Tigo) subsidiary Telefónica Celular del Paraguay S.A.E. announces its intent to partially redeem Senior Notes due 2027

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