The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements (and the related notes) as at December 31, 2025 and 2024 and for each of the three years ended December 31, 2025, 2024 and 2023 included elsewhere in this report. This discussion contains forward-looking statements that reflect our current views with respect to future events and our future financial performance. These statements involve risks and uncertainties, and our actual results may differ materially from those anticipated in these forward-looking statements as a result of particular factors such as those set forth under "Forward-Looking Statements" and Item 3. "Key Information – Risk Factors" and elsewhere in this report. Our consolidated financial statements, and the financial information discussed below, have been prepared in accordance with IFRS Accounting Standards. For convenience, certain Philippine peso financial information in the following discussions have been converted to U.S. dollars at the exchange rate at December 31, 2025 of Php58.79 to US$1.00, as quoted through the BAP. A. Operating Results Overview We are one of the leading telecommunications and digital services providers in the Philippines, serving the fixed line, wireless and broadband markets. Through our three principal business segments, Wireless, Fixed Line and Others, we offer a wide range of telecommunications and digital services across our extensive fiber optic backbone and wireless and fixed line networks. See Note 4 – Operating Segment Information to the accompanying audited consolidated financial statements in Item 18. “Financial Statements” for further information on each of these segments. Key performance indicators and drivers that our management uses to monitor and direct the operation of our businesses include, among others, the general economic conditions in the Philippines; market trends, such as customer demands, behavior and satisfaction parameters; technological developments; network performance (in terms of speed, coverage and capacity); market share; and profitability. In addition, our results of operations and financial position are affected by fluctuations of the Philippine peso against the U.S. dollar. 42 Table of Contents Key Factors Affecting our Results of Operations The key factors that have affected and that we expect will continue to affect our results of operations are set out below. Competition The telecommunications market is competitive. Including us, there are five major local exchange carriers, seven major international gateway facility providers and three major mobile operators in the Philippines. Some new entrants in the Philippine telecommunications market have entered strategic alliances with foreign telecommunications companies, which provide them with access to technological and funding support, as well as service innovations and marketing strategies. To protect our market position, we need to continually invest in our network infrastructure to comply with regulatory obligations and to ensure that our services remain competitive. We also need to be able to identify market trends and customer preferences for our services to remain relevant. See Item 4. “Information on the Company – Competition” for further discussions. Technology Developments and Capital Expenditures Improvements in technology influence our customers’ demand for services and equipment. For example, demand for fixed line telecommunications services has been affected by continued significant growth in the mobile data services. The increase in broadband adoption has also proven to be a critical factor in facilitating the offering of value-added services to customers and the combination of products made available to customers. In providing data services, we must constantly upgrade our access technology and software, embrace emerging transmission technologies and improve the responsiveness, functionality, coverage and features of our services. In the mobile data business, to provide our subscribers with new and better services, we must enhance our mobile network and extend 5G technology and bandwidth for mobile data transmission. In addition, as new technologies develop, equipment may need to be replaced or upgraded, and network facilities may need to be rebuilt in whole or in part, at substantial cost, to remain competitive. These enhancements and the implementation of new technologies will require increased capital expenditures. Regulations We are significantly affected by laws and regulations, particularly those relating to service rates, taxes, labor and antitrust, and may incur significant capital expenditures to ensure compliance with such laws and regulations. For example, the NTC regulates the rates we are permitted to charge for services that have not yet been deregulated, such as local exchange services. We are also subject to a number of local and national taxes. We are also subject to antitrust and labor laws. We have an on-going petition with the PCC with respect to our acquisition of the telecommunications business of SMC in 2016, as well as an outstanding petition pending resolution by the Philippine Supreme Court with respect to the regularization orders by the DOLE. For more details of the regulations to which we are subject and their impacts on our business, see Item 4. “Information on the Company – Franchises, Licenses and Regulations”. Financial Instruments While a certain percentage of our revenues are either linked to or denominated in U.S. Dollars, a substantial portion of our capital expenditures, a portion of our indebtedness and related interest expense and a portion of our operating expenses are denominated in foreign currencies, mostly in U.S. Dollars. As such, a strengthening or weakening of the Philippine Peso against the U.S. Dollar will decrease or increase in Philippine Peso terms both the principal amount of our foreign currency-denominated debts and the related interest expense, our foreign currency-denominated capital expenditures and operating expenses as well as our U.S. Dollar-linked and U.S. Dollar-denominated revenues. In addition, many of our financial ratios and other financial tests are affected by the movements in the Philippine Peso to U.S. Dollar exchange rate. To manage our foreign exchange risks and to stabilize our cash flows in order to improve investment and cash flow planning, we enter into forward foreign exchange contracts, currency swap contracts, currency option contracts and other hedging products aimed at reducing and/or managing the adverse impact of changes in foreign exchange rates on our operating results and cash flows. We use forward foreign exchange purchase contracts, currency swap contracts and currency option contracts to manage the foreign currency risks associated with our foreign currency-denominated financial liabilities. See Note 27 – Financial Assets and Liabilities – Financial Risk Management Objectives and Policies to the accompanying consolidated financial statements in Item 18. “Financial Statements” for a detailed discussion of our foreign currency exchange risk and hedging instruments. 43 Table of Contents Key Components of Results of Operations Revenues We generate revenues primarily from providing the following telecommunications services: cellular voice, SMS and data services in the wireless business; and local exchange, international and national long distance, data and other network, and information and communications services in the fixed line business. Revenue from contracts with customers for the provision of the aforementioned services comprise service revenue and non-service revenue. Services may be rendered separately or bundled with goods or other services. In each of the years ended December 31, 2025, 2024 and 2023, the majority of our revenues are derived from our operations within the Philippines. Our revenues derived from outside the Philippines consist primarily of revenues from incoming international calls to the Philippines. See Note 2 – Summary of Material Accounting Policies – Revenues from contracts with customers to the accompanying consolidated financial statements in Item 18. “Financial Statements” for a detailed discussion of our revenues. Expenses Our expenses comprise (i) general operating costs, (ii) depreciation and amortization expenses, (iii) cost of devices, accessories and contract-specific services, (iv) asset impairment and (v) interconnection costs. General Operating Costs We incur general operating costs comprising the cost of repairs and maintenance, employee compensation and benefits, fees for professional and other contracted services, selling and promotions, taxes and licenses, insurance and security services, rent, communication, training and travel, and other expenses. Depreciation and Amortization Expenses We incur depreciation and amortization expenses in relation to our property and equipment, lease for our properties and subscriber contract cost to fulfill. Cost of Devices, Accessories and Contract-specific Services Cost of devices and accessories comprise the cost of mobile handsets, phone units and broadband data modems and devices which we purchase for sale to customers. Cost of contract-specific services comprise the costs from third-party vendors that are directly identifiable and distinct to specific customer contracts where we are the principal, such as content, license, and maintenance/warranty costs. Asset Impairment Asset impairment primarily comprises impairment on trade and other receivables, inventories and supplies, contract assets, property and equipment and other non-current assets. Other Income (Expenses) – Net Other income (expenses) – net primarily comprises gains (losses) on derivative financial instruments, gains on sale and leaseback of telecom towers, interest income, equity share in net income (losses) of associates and joint ventures, financing costs, foreign exchange gains (losses), and other miscellaneous income. 44 Table of Contents Results of Operations The following table sets forth a summary of our consolidated statements of operations for the years presented, both in millions and as a percentage of our revenues for the years presented. This information should be read together with our consolidated financial statements and related notes included elsewhere in this Annual Report. The results of operations in any period are not necessarily indicative of our future trends. 2025 % 2024 % 2023 % (amounts in million Php) Revenues from contracts with customers Service Revenues 212,186 97 208,382 96 201,832 96 Non-service Revenues 6,202 3 8,451 4 9,121 4 218,388 100 216,833 100 210,953 100 Expenses General operating costs 75,789 35 78,068 36 81,655 39 Depreciation and amortization 59,487 27 56,228 26 58,662 28 Cost of devices, accessories and contract-specific services 12,784 6 14,011 6 15,092 7 Asset impairment 3,970 2 4,321 2 4,432 2 Interconnection costs 16,010 7 13,718 6 10,418 5 168,040 77 166,346 77 170,259 81 50,348 23 50,487 23 40,694 19 Other Expenses – net (12,658 ) (6 ) (9,943 ) (5 ) (5,984 ) (3 ) Income Before Income Tax from Continuing Operations 37,690 17 40,544 19 34,710 16 Provision for Income Tax 8,821 4 9,601 4 9,170 4 Net Income from Continuing Operations 28,869 13 30,943 14 25,540 12 Net Loss from Discontinued Operations — — — — (41 ) — Net Income 28,869 13 30,943 14 25,499 12 The following table shows the contribution by each of our business segments to our consolidated statement of operations for the years presented. Wireless Fixed Line Others Intersegment and Consolidation Entries Consolidated (amounts in million Php) For the year ended December 31, 2025 Revenues 103,316 130,810 — (15,738 ) 218,388 Expenses 86,583 95,585 7 (14,135 ) 168,040 Other income (expenses) – net (4,587 ) (2,816 ) 546 (5,801 ) (12,658 ) Income (loss) before income tax 12,146 32,409 539 (7,404 ) 37,690 Provision for (benefit from) income tax 2,709 6,810 (29 ) (669 ) 8,821 Net income/Segment profit 9,437 25,599 568 (6,735 ) 28,869 For the year ended December 31, 2024 Revenues 105,734 126,490 — (15,391 ) 216,833 Expenses 86,653 95,357 90 (15,754 ) 166,346 Other income (expenses) – net (5,504 ) 6,370 (988 ) (9,821 ) (9,943 ) Income (loss) before income tax 13,577 37,503 (1,078 ) (9,458 ) 40,544 Provision for (benefit from) income tax 3,086 6,154 (9 ) 370 9,601 Net income (loss)/Segment profit (loss) 10,491 31,349 (1,069 ) (9,828 ) 30,943 For the year ended December 31, 2023 Revenues 104,401 120,734 — (14,182 ) 210,953 Expenses 82,827 102,352 18 (14,938 ) 170,259 Other income (expenses) – net 1,169 10,696 (2,251 ) (15,598 ) (5,984 ) Income (loss) before income tax 22,743 29,078 (2,269 ) (14,842 ) 34,710 Provision for income tax 5,458 3,652 1 59 9,170 Net income (loss)/Segment profit (loss) 17,285 25,426 (2,270 ) (14,901 ) 25,499 Continuing operations 17,285 25,426 (2,270 ) (14,901 ) 25,540 Discontinued operations — — — — (41 ) 45 Table of Contents The following table shows the breakdown of our consolidated revenues by service and non-service revenues for the years ended December 31, 2025, 2024 and 2023: Wireless Fixed Line Intersegment and Consolidation Entries Consolidated (amounts in million Php) For the year ended December 31, 2025 Service Revenues Wireless 97,568 (699 ) 96,869 Mobile 95,619 (646 ) 94,973 Fixed Wireless broadband 1,896 — 1,896 Other services 53 (53 ) — Fixed Line 130,355 (15,038 ) 115,317 Voice(1) 31,226 (1,254 ) 29,972 Data 99,068 (13,784 ) 85,284 Home broadband 53,375 (17 ) 53,358 Corporate data and ICT 45,693 (13,767 ) 31,926 Miscellaneous 61 — 61 Total Service Revenues 97,568 130,355 (15,737 ) 212,186 Non-Service Revenues Sale of devices and accessories 5,748 455 (1 ) 6,202 Total Non-Service Revenues 5,748 455 (1 ) 6,202 Total Revenues 103,316 130,810 (15,738 ) 218,388 For the year ended December 31, 2024 Service Revenues(2) Wireless 97,779 (790 ) 96,989 Mobile 96,246 (738 ) 95,508 Fixed Wireless broadband 1,481 — 1,481 Other services 52 (52 ) — Fixed Line 125,994 (14,601 ) 111,393 Voice(1) 29,660 (1,560 ) 28,100 Data 96,269 (13,041 ) 83,228 Home broadband 51,759 (18 ) 51,741 Corporate data and ICT 44,510 (13,023 ) 31,487 Miscellaneous 65 — 65 Total Service Revenues 97,779 125,994 (15,391 ) 208,382 Non-Service Revenues Sale of devices and accessories 7,955 496 — 8,451 Total Non-Service Revenues 7,955 496 — 8,451 Total Revenues 105,734 126,490 (15,391 ) 216,833 For the year ended December 31, 2023 Service Revenues(2) Wireless 95,677 (683 ) 94,994 Mobile 94,007 (642 ) 93,365 Fixed Wireless broadband 1,629 — 1,629 Other services 41 (41 ) — Fixed Line 120,336 (13,498 ) 106,838 Voice(1) 26,686 (1,526 ) 25,160 Data 93,597 (11,972 ) 81,625 Home broadband 50,876 (24 ) 50,852 Corporate data and ICT 42,721 (11,948 ) 30,773 Miscellaneous 53 — 53 Total Service Revenues 95,677 120,336 (14,181 ) 201,832 Non-Service Revenues Sale of devices and accessories 8,724 398 (1 ) 9,121 Total Non-Service Revenues 8,724 398 (1 ) 9,121 Total Revenues 104,401 120,734 (14,182 ) 210,953 (1) Consolidated voice services revenues include wholesale international voice of Php15,151 million, Php12,772 million and Php9,304 million with corresponding costs of Php14,887 million, Php12,535 million and Php9,258 million for the years ended December 31, 2025, 2024 and 2023, respectively. (2)Certain amounts for the year ended December 31, 2024 and 2023 were reclassified to conform with the current presentation. 46 Table of Contents Comparison of Years Ended December 31, 2025 and 2024 On a Consolidated Basis Revenues We reported consolidated revenues of Php218,388 million in 2025, an increase of Php1,555 million, or 1%, as compared with Php216,833 million in 2024, primarily due to higher consolidated revenues from data and voice services, partially offset by lower consolidated non-service revenues. Our consolidated service revenues of Php212,186 million in 2025, increased by Php3,804 million, or 2%, from Php208,382 million in 2024. Our consolidated non-service revenues of Php6,202 million in 2025, decreased by Php2,249 million, or 27%, from Php8,451 million in 2024. Consolidated service revenues, net of interconnection costs of Php16,010 million, amounted to Php196,176 million in 2025, an increase of Php1,512 million, or 1%, from Php194,664 million in 2024. The following table shows the breakdown of our consolidated revenues by business segment for the years ended December 31, 2025 and 2024: Change 2025 % 2024 % Amount % (amounts in million Php) Wireless 103,316 47 105,734 49 (2,418 ) (2 ) Fixed Line 130,810 60 126,490 58 4,320 3 Inter-segment transactions (15,738 ) (7 ) (15,391 ) (7 ) (347 ) (2 ) Consolidated 218,388 100 216,833 100 1,555 1 Expenses Consolidated expenses increased by Php1,694 million, or 1%, to Php168,040 million in 2025 from Php166,346 million in 2024, primarily due to higher depreciation and amortization, and interconnection costs, partially offset by lower expenses related to general operating costs, cost of devices, accessories and contract-specific services, and asset impairment. The following table shows the breakdown of our consolidated expenses by business segment for the years ended December 31, 2025 and 2024: Change 2025 % 2024 % Amount % (amounts in million Php) Wireless 86,583 51 86,653 52 (70 ) — Fixed Line 95,585 57 95,357 57 228 — Others 7 — 90 — (83 ) (92 ) Inter-segment transactions (14,135 ) (8 ) (15,754 ) (9 ) 1,619 10 Consolidated 168,040 100 166,346 100 1,694 1 Other Income (Expenses) – Net Consolidated other expenses – net amounted to Php12,658 million in 2025, an increase of Php2,715 million, or 27%, from Php9,943 million in 2024, primarily due to the combined effects of the following: (i) higher net financing costs by Php2,668 million; (ii) net losses on derivative financial instruments of Php41 million in 2025 as against net gains on derivative financial instruments of Php1,641 million in 2024; (iii) higher net foreign exchange losses by Php514 million; (iv) lower interest income by Php197 million; (v) lower equity share in net losses by Php562 million; and (vi) higher other miscellaneous income – net by Php1,784 million. 47 Table of Contents The following table shows the breakdown of our consolidated other income (expenses) – net by business segment for the years ended December 31, 2025 and 2024: Change 2025 2024 Amount % (amounts in million Php) Wireless (4,587 ) (5,504 ) 917 17 Fixed Line (2,816 ) 6,370 (9,186 ) (144 ) Others 546 (988 ) 1,534 155 Inter-segment transactions (5,801 ) (9,821 ) 4,020 41 Consolidated (12,658 ) (9,943 ) (2,715 ) (27 ) Net Income Consolidated net income decreased by Php2,074 million, or 7%, to Php28,869 million in 2025 from Php30,943 million in 2024. The decrease was mainly due to the combined effects of the following: (i) higher consolidated other expenses – net by Php2,715 million; (ii) higher consolidated expenses by Php1,694 million; (iii) higher consolidated revenues by Php1,555 million; and (iv) lower provision for income tax by Php780 million. Our consolidated basic and diluted EPS decreased to Php132.38 in 2025 from Php141.80 in 2024. Our weighted average number of outstanding common shares was approximately 216.06 million for each of the years ended December 31, 2025 and 2024. The following table shows the breakdown of our consolidated net income by business segment for the years ended December 31, 2025 and 2024: Change 2025 % 2024 % Amount % (amounts in million Php) Wireless 9,437 33 10,491 34 (1,054 ) (10 ) Fixed Line 25,599 88 31,349 101 (5,750 ) (18 ) Others 568 2 (1,069 ) (3 ) 1,637 153 Inter-segment transactions (6,735 ) (23 ) (9,828 ) (32 ) 3,093 31 Consolidated 28,869 100 30,943 100 (2,074 ) (7 ) On a Business Segment Basis Wireless Revenues We generated revenues of Php103,316 million from our Wireless business segment in 2025, a decrease of Php2,418 million, or 2%, from Php105,734 million in 2024. The following table summarizes our total revenues by service from our Wireless business segment for the years ended December 31, 2025 and 2024: Increase (Decrease) 2025 % 2024 % Amount % (amounts in million Php) Service Revenues: Mobile 95,619 92 96,246 91 (627 ) (1 ) Fixed Wireless broadband 1,896 2 1,481 1 415 28 Other services(1) 53 — 52 — 1 2 Total Wireless Service Revenues 97,568 94 97,779 92 (211 ) — Non-Service Revenues: Sale of devices and accessories 5,748 6 7,955 8 (2,207 ) (28 ) Total Wireless Revenues 103,316 100 105,734 100 (2,418 ) (2 ) (1)Includes facility service fees. Service Revenues Our wireless service revenues decreased by Php211 million to Php97,568 million in 2025 as compared with Php97,779 million in 2024, primarily due to lower revenues from our legacy mobile services (voice and SMS), partially offset by higher revenues from 48 Table of Contents mobile data and fixed wireless broadband services. As a percentage of our total wireless revenues, service revenues accounted for 94% and 92% in 2025 and 2024, respectively. Wireless service revenues, net of interconnection costs, amounted to Php96,527 million in 2025, a decrease of Php281 million from Php96,808 million in 2024. Mobile Services Our mobile service revenues amounted to Php95,619 million in 2025, a decrease of Php627 million, or 1%, from Php96,246 million in 2024. Mobile service revenues accounted for 98% of our wireless service revenues in each of 2025 and 2024. The following table shows the breakdown of our mobile service revenues for the years ended December 31, 2025 and 2024: Increase (Decrease) 2025 % 2024(1) % Amount % (amounts in million Php) Mobile Services: Data 79,604 83 78,971 82 633 1 Voice 8,446 9 9,374 10 (928 ) (10 ) SMS 6,401 7 6,761 7 (360 ) (5 ) Others(2) 1,168 1 1,140 1 28 2 Total 95,619 100 96,246 100 (627 ) (1 ) (1)Certain amounts for the year ended December 31, 2024 were reclassified to conform with the current year presentation. (2)Refers to other non-subscriber-related revenues. Data Services Mobile revenues from our data services, which include mobile internet, mobile broadband and other data services, increased by Php633 million, or 1%, to Php79,604 million in 2025 from Php78,971 million in 2024 due to higher mobile internet revenues, partially offset by lower mobile broadband data revenues. Data services accounted for 83% and 82% of our mobile service revenues for the years ended December 31, 2025 and 2024, respectively. The following table shows the breakdown of our mobile data service revenues for the years ended December 31, 2025 and 2024: Increase (Decrease) 2025 % 2024 % Amount % (amounts in million Php) Data Services: Mobile internet(1) 76,344 96 75,061 95 1,283 2 Mobile broadband 1,677 2 2,255 3 (578 ) (26 ) Other data 1,583 2 1,655 2 (72 ) (4 ) Total 79,604 100 78,971 100 633 1 (1)Includes revenues from web-based services, net of discounts and content provider costs. Mobile Internet Mobile internet service revenues increased by Php1,283 million, or 2%, to Php76,344 million in 2025 from Php75,061 million in 2024, primarily due to our mobile data offerings, such as Power All, Magic Data and Unli 5G offers. Smart continues to drive usage and top-ups via Smart App, the Smart Online Store, digital touchpoints and its retailer network. The increase in data traffic was driven by the 5G network expansion, growth of 5G devices, leading to higher 5G data usage. Smart has also rolled out 5G offers and device financing through partnerships with credit card companies to drive more users on 5G. Smart also launched iPhones on prepaid to drive 5G adoption in the prepaid category. Mobile internet services accounted for 80% and 78% of our mobile service revenues in 2025 and 2024, respectively. Mobile Broadband Mobile broadband revenues generated from the use of pocket WiFi, amounted to Php1,677 million in 2025, a decrease of Php578 million, or 26%, from Php2,255 million in 2024, primarily due to lower demand for pocket WiFi devices. Mobile broadband services accounted for 2% of our mobile service revenues in each of 2025 and 2024. 49 Table of Contents Other Data Revenues from our other data services, which include VAS and domestic leased lines, decreased by Php72 million, or 4%, to Php1,583 million in 2025 from Php1,655 million in 2024. Voice Services Mobile revenues from our voice services, which include all voice traffic, decreased by Php928 million, or 10%, to Php8,446 million in 2025 from Php9,374 million in 2024, due to subscribers’ shift to alternative calling options, digital teleconferencing solutions, and other OTT services. Nevertheless, our core modernization phase 1, which was finished in the fourth quarter of 2025 has enabled better voice services such as VoLTE, Voice over WiFi (VoWiFi) and ViLTE which has improved our voice revenues despite our 3G shutdown. Mobile voice services accounted for 9% and 10% of our mobile service revenues in 2025 and 2024, respectively. SMS Services Mobile revenues from our SMS services, which include all SMS-related services, decreased by Php360 million, or 5%, to Php6,401 million in 2025 from Php6,761 million in 2024, mainly on account of the decline in SMS volumes resulting from the increased adoption of alternative messaging solutions such as OTT messaging, social media and chat applications. Mobile SMS services accounted for 7% of our mobile service revenues in each of 2025 and 2024. Other Mobile Services Mobile revenues from other services increased by Php28 million, or 2%, to Php1,168 million in 2025 from Php1,140 million in 2024 mainly due to higher other subscriber-related revenues. Subscriber Base, ARPU and Churn Rates The following table shows our mobile subscriber base as at December 31, 2025 and 2024: Increase (Decrease) 2025 2024 Amount % Mobile subscriber base(1) Prepaid 57,534,812 56,731,489 803,323 1 Smart(2) 21,713,502 21,759,728 (46,226 ) — TNT 35,821,310 34,971,761 849,549 2 Postpaid 2,356,708 2,258,318 98,390 4 Total 59,891,520 58,989,807 901,713 2 (1)Includes mobile broadband subscribers. (2)Includes KIQ subscribers. In view of the SIM Registration Act, we recognize a prepaid mobile subscriber as active upon registration of the SIM card. We consider a prepaid mobile subscriber as churned if the subscriber does not reload within 180 days after the full usage or expiry of the last reload. The average monthly churn rates for Smart Prepaid subscribers were 2.5% and 2.2% in 2025 and 2024, respectively, while the average monthly churn rates for TNT subscribers were 2.3% and 2.0% in 2025 and 2024, respectively. The average monthly churn rates for Postpaid subscribers were 1.2% and 1.1% in 2025 and 2024, respectively. The following table summarizes our average monthly ARPUs for the years ended December 31, 2025 and 2024: Gross(1) Increase (Decrease) Net(2) Increase (Decrease) 2025 2024 Amount % 2025 2024 Amount % (amounts in Php) Prepaid Smart 132 137 (5 ) (4 )% 119 123 (4 ) (3 )% TNT 112 115 (3 ) (3 )% 102 105 (3 ) (3 )% Postpaid 719 729 (10 ) (1 )% 670 688 (18 ) (3 )% (1)Gross monthly ARPU is calculated by dividing gross mobile service revenues for the year, including interconnection income, but excluding inbound roaming revenues, gross of discounts, and content provider costs, by the average number of subscribers for the period. 50 Table of Contents (2)Net monthly ARPU is calculated by dividing gross mobile service revenues for the year, including interconnection income, but excluding inbound roaming revenues, net of discounts, and content provider costs, by the average number of subscribers for the period. Fixed Wireless Broadband Revenues from our Fixed Wireless Broadband services amounted to Php1,896 million in 2025, an increase of Php415 million, or 28%, from Php1,481 million in 2024. Other Services Revenues from our other services amounted to Php53 million in 2025, an increase of Php1 million, or 2%, from Php52 million in 2024. Non-Service Revenues Our wireless non-service revenues consist of sale of mobile handsets, broadband data routers and devices. Our wireless non-service revenues decreased by Php2,207 million, or 28%, to Php5,748 million in 2025 from Php7,955 million in 2024, primarily due to tighter credit parameters resulting in lower number of mobile handsets issued. Expenses Expenses associated with our Wireless business segment amounted to Php86,583 million in 2025, a decrease of Php70 million from Php86,653 million in 2024. The decrease was attributable to lower cost of devices, accessories and contract-specific services, general operating costs and asset impairment, partially offset by higher expenses related to depreciation and amortization and interconnection costs. As a percentage of our total wireless revenues, expenses associated with our Wireless business segment accounted for 84% and 82% in 2025 and 2024, respectively. The following table summarizes the breakdown of our total wireless-related expenses for the years ended December 31, 2025 and 2024 and the percentage of each expense item in relation to the total: Increase (Decrease) 2025 % 2024 % Amount % (amounts in million Php) Depreciation and amortization 40,560 47 36,483 42 4,077 11 General operating costs 36,637 42 37,813 44 (1,176 ) (3 ) Cost of devices, accessories and cost-specific services 7,693 9 10,480 12 (2,787 ) (27 ) Asset impairment 652 1 906 1 (254 ) (28 ) 85,542 99 85,682 99 (140 ) — Interconnection costs 1,041 1 971 1 70 7 Total 86,583 100 86,653 100 (70 ) — General operating costs decreased by Php1,176 million, or 3%, from 2024 to Php36,637 million in 2025, primarily due to lower expenses related to selling and promotions, compensation and employee benefits, and professional and other contracted services, partially offset by higher expenses related to taxes and licenses, and repairs and maintenance. Depreciation and amortization charges increased by Php4,077 million, or 11%, from 2024 to Php40,560 million in 2025, mainly on account of higher accelerated depreciation recognized in 2025 for the modernization of certain technology equipment, combined with the depreciation of newly capitalized property and equipment, and higher amortization of capitalized leases arising from the sale and leaseback of telecom towers. Cost of devices, accessories and contract-specific services decreased by Php2,787 million, or 27%, from 2024 to Php7,693 million in 2025, primarily due to lower number of units issued for mobile handsets and lower SIM printing costs. Asset impairment decreased by Php254 million, or 28%, from 2024 to Php652 million in 2025, primarily due to lower provision for inventory obsolescence. Interconnection costs increased by Php70 million, or 7%, from 2024 to Php1,041 million in 2025. 51 Table of Contents Other Income (Expenses) – Net The following table summarizes the breakdown of our total wireless-related other income (expenses) – net for the years ended December 31, 2025 and 2024: Change 2025 2024 Amount % (amounts in million Php) Other Income (Expenses) – Net: Interest income 554 698 (144 ) (21 ) Equity share in net earnings (losses) of associates and joint ventures (11 ) — (11 ) (100 ) Foreign exchange gains (losses) – net (12 ) 775 (787 ) (102 ) Gains (losses) on derivative financial instruments – net (27 ) 885 (912 ) (103 ) Financing costs – net (9,941 ) (9,763 ) (178 ) (2 ) Other income – net 4,850 1,901 2,949 155 Total (4,587 ) (5,504 ) 917 17 Our Wireless business segment’s other expenses – net amounted to Php4,587 million in 2025, a decrease of Php917 million, or 17%, from Php5,504 million in 2024, primarily due to the combined effects of the following: (i) net losses on derivative financial instruments of Php27 million in 2025 as against net gains on derivative financial instruments of Php885 million in 2024 mainly due to lower depreciation of the Philippine peso relative to the U.S. dollar in 2025 as compared to 2024; (ii) net foreign exchange losses of Php12 million in 2025 from net foreign exchange gains of Php775 million in 2024 mainly on account of revaluation of net foreign currency-denominated liabilities; (iii) higher net financing costs by Php178 million; (iv) lower interest income by Php144 million; (v) equity share in net losses of associates of Php11 million; and (vi) higher other income – net by Php2,949 million, which includes reversal of excess LTIP accrual. Provision for Income Tax Provision for income tax amounted to Php2,709 million in 2025, a decrease of Php377 million, or 12%, from Php3,086 million in 2024, mainly due to lower net income before tax. Net Income As a result of the foregoing, our Wireless business segment’s net income decreased by Php1,054 million, or 10%, to Php9,437 million in 2025 from Php10,491 million in 2024. Fixed Line Revenues Revenues generated from our Fixed Line business segment amounted to Php130,810 million in 2025, an increase of Php4,320 million, or 3%, from Php126,490 million in 2024. The following table summarizes our total revenues by service from our Fixed Line business segment for the years ended December 31, 2025 and 2024: Increase (Decrease) 2025 % 2024(1) % Amount % (amounts in million Php) Service Revenues: Data 99,068 76 96,269 76 2,799 3 Voice 31,226 24 29,660 24 1,566 5 Miscellaneous 61 — 65 — (4 ) (6 ) Total Fixed Line Service Revenues 130,355 100 125,994 100 4,361 3 Non-Service Revenues: Sale of devices and accessories 455 — 496 — (41 ) (8 ) Total Fixed Line Revenues 130,810 100 126,490 100 4,320 3 (1)Certain amounts for the year ended December 31, 2024 were reclassified to conform with current presentation. 52 Table of Contents Service Revenues Our fixed line service revenues increased by Php4,361 million, or 3%, to Php130,355 million in 2025 from Php125,994 million in 2024, primarily due to higher revenues from our data and voice services. Fixed Line service revenues, net of interconnection costs, amounted to Php114,122 million in 2025, an increase of Php2,447 million, or 2%, from Php111,675 million in 2024. Data Services Our data services, which include Home broadband, corporate data, and ICT, posted revenues of Php99,068 million in 2025, an increase of Php2,799 million, or 3%, from Php96,269 million in 2024, primarily due to higher revenues from Home broadband and ICT services, partially offset by lower revenues from corporate data and leased lines. The percentage contribution of this service segment to our fixed line service revenues accounted for 76% in each of 2025 and 2024. The following table shows information of our data service revenues for the years ended December 31, 2025 and 2024: Increase (Decrease) 2025 % 2024 % Amount % (amounts in million Php) Data service revenues Home broadband 53,375 54 51,759 54 1,616 3 Corporate data and ICT 45,693 46 44,510 46 1,183 3 Total 99,068 100 96,269 100 2,799 3 Home Broadband Home broadband data revenues amounted to Php53,375 million in 2025, an increase of Php1,616 million, or 3%, from Php51,759 million in 2024, mainly driven by the increasing demand for broadband services. Home broadband revenues accounted for 54% of fixed line data service revenues in each of 2025 and 2024. Corporate Data and ICT Corporate data services amounted to Php36,278 million in 2025, a decrease of Php398 million, or 1%, as compared with Php36,676 million in 2024, mainly due to lower revenues from legacy data networking services. Corporate data revenues accounted for 37% and 38% of our total data service revenues in 2025 and 2024, respectively. ICT revenues increased by Php1,581 million, or 20%, to Php9,415 million in 2025 from Php7,834 million in 2024, mainly due to higher revenues from data center, managed IT services, data center, and data and AI solutions. The percentage contribution of this service segment to our total data service revenues accounted for 9% and 8% in 2025 and 2024, respectively. Voice Services Revenues from our voice services increased by Php1,566 million, or 5%, to Php31,226 million in 2025 from Php29,660 million in 2024, primarily due to higher revenues from wholesale international voice of PLDT Global driven by higher traffic volume. Excluding wholesale international voice revenues of Php15,533 million and Php13,224 million in 2025 and 2024, respectively, our voice services decreased by Php743 million, or 5%, to Php15,693 million in 2025 from Php16,436 million in 2024. The percentage contribution of voice service revenues to our fixed line service revenues accounted for 24% in each of 2025 and 2024. Miscellaneous Services Miscellaneous service revenues are derived mostly from rentals and management fees. These service revenues decreased by Php4 million, or 6%, to Php61 million in 2025 from Php65 million in 2024. Non-service Revenues Non-service revenues decreased by Php41 million, or 8%, to Php455 million in 2025 from Php496 million in 2024. 53 Table of Contents Expenses Expenses related to our Fixed Line business segment totaled Php95,585 million in 2025, an increase of Php228 million as compared with Php95,357 million in 2024. The increase was primarily due to higher interconnection costs, and cost of devices, accessories and contract-specific services, partly offset by lower depreciation and amortization, and general operating costs. As a percentage of our total fixed line revenues, expenses associated with our Fixed Line business segment accounted for 73% and 75% in 2025 and 2024, respectively. The following table shows the breakdown of our total fixed line-related expenses for the years ended December 31, 2025 and 2024 and the percentage of each expense item in relation to the total: Increase (Decrease) 2025 % 2024 % Amount % (amounts in million Php) General operating costs 43,867 46 44,850 47 (983 ) (2 ) Depreciation and amortization 26,928 28 29,132 30 (2,204 ) (8 ) Cost of devices, accessories and contract-specific services 5,239 6 3,641 4 1,598 44 Asset impairment 3,318 3 3,415 4 (97 ) (3 ) 79,352 83 81,038 85 (1,686 ) (2 ) Interconnection costs 16,233 17 14,319 15 1,914 13 Total 95,585 100 95,357 100 228 — General operating costs decreased by Php983 million, or 2%, from 2024 to Php43,867 million in 2025, primarily due to lower expenses related to compensation and employee benefits, professional and other contracted services, and communication, training and travel, partially offset by higher expenses related to selling and promotions, rent and repairs and maintenance. Depreciation and amortization charges decreased by Php2,204 million, or 8%, from 2024 to Php26,928 million in 2025, mainly due to lower accelerated depreciation recognized in 2025 for the modernization of certain technology equipment, partially offset by higher amortization of subscriber contract cost to fulfill and capitalized leases. Cost of devices, accessories and contract-specific services increased by Php1,598 million, or 44%, from 2024 to Php5,239 million in 2025, primarily due to higher cost of content and services from third-party vendors. Asset impairment decreased by Php97 million, or 3%, from 2024 to Php3,318 million in 2025. Interconnection costs increased by Php1,914 million, or 13%, from 2024 to Php16,233 million in 2025, primarily due to higher cost of wholesale international voice of PLDT Global driven by higher traffic volume. Excluding cost of wholesale international voice of Php15,269 million and Php12,987 million in 2025 and 2024, respectively, our interconnection costs decreased by Php368 million, or 28%, to Php964 million in 2025 from Php1,332 million in 2024. Other Income (Expenses) – Net The following table summarizes the breakdown of our total fixed line-related other income (expenses) – net for the years ended December 31, 2025 and 2024: Change 2025 2024 Amount % (amounts in million Php) Other Income (Expenses) – Net: Gains on derivative financial instruments – net (14 ) 756 (770 ) (102 ) Interest income 171 230 (59 ) (26 ) Foreign exchange gains (losses) – net (545 ) (819 ) 274 (33 ) Equity share in net losses of associates and joint ventures (924 ) (67 ) (857 ) (1,279 ) Financing costs – net (9,411 ) (7,456 ) (1,955 ) (26 ) Other income – net 7,907 13,726 (5,819 ) (42 ) Total (2,816 ) 6,370 (9,186 ) (144 ) Our Fixed Line business segment’s other expenses – net amounted to Php2,816 million in 2025, a change of Php9,186 million from other income – net of Php6,370 million in 2024, primarily due to the combined effects of the following: (i) lower other income – net by Php5,819 million mainly due to lower dividend income recognized from the subsidiaries of our wireless business segment; (ii) higher net financing costs by Php1,955 million mainly due to higher weighted average outstanding principal amounts, higher interest rates, and lower capitalized interest; (iii) net losses on derivative financial instruments of Php14 million in 2025 as against net gains on derivative financial instruments by Php756 million in 2024 mainly due to lower depreciation of the Philippine peso to the U.S. dollar in 2025 as compared with 2024; (iv) higher equity share in net losses of associates by Php857 54 Table of Contents million mainly from Radius Telecoms (Radius) and Cignal TV; (v) lower interest income by Php59 million; and (vi) lower net foreign exchange losses by Php274 million. Provision for (Benefit from) Income Tax Provision for income tax amounted to Php6,810 million in 2025, an increase of Php656 million, or 11%, from Php6,154 million in 2024, mainly due to higher taxable income. Net Income As a result of the foregoing, our Fixed Line business segment registered a net income of Php25,599 million in 2025, a decrease of Php5,750 million, or 18%, as compared with Php31,349 million in 2024. Others Revenues Revenues generated from our Other business segment amounted to nil for each of the years ended December 31, 2025 and 2024. Expenses Expenses related to our Other business segment decreased by Php83 million to Php7 million in 2025 from Php90 million in 2024. Other Income (Expenses) – Net The following table summarizes the breakdown of other income (expenses) – net for Other business segment for the years ended December 31, 2025 and 2024: Change 2025 2024 Amount % (amounts in million Php) Other Income (Expenses) – Net: Equity share in net gains (losses) of associates and joint ventures 507 (923 ) 1,430 155 Interest income 11 15 (4 ) (27 ) Foreign exchange gains (losses) – net 4 (75 ) 79 105 Other income – net 24 (5 ) 29 580 Total 546 (988 ) 1,534 155 Our Other business segment’s other income – net amounted to Php546 million in 2025, a change of Php1,534 million from other expenses – net of Php988 million in 2024, primarily due to equity share in net income of MIH in 2025 as against equity share in net losses in 2024. Net Loss As a result of the foregoing, our Other business segment registered a net income of Php568 million in 2025, a change of Php1,637 million as against net loss of Php1,069 million in 2024. Comparison of Years Ended December 31, 2024 and 2023 On a Consolidated Basis Revenues We reported consolidated revenues of Php216,833 million in 2024, an increase of Php5,880 million, or 3%, as compared with Php210,953 million in 2023, primarily due to higher consolidated revenues from data, voice and SMS services, partially offset by lower consolidated non-service revenues and fixed wireless broadband service revenues. Our consolidated service revenues of Php208,382 million in 2024, increased by Php6,550 million, or 3%, from Php201,832 million in 2023. Our consolidated non-service revenues of Php8,451 million in 2024, decreased by Php670 million, or 7%, from Php9,121 million in 2023. 55 Table of Contents Consolidated service revenues, net of interconnection costs of Php13,718 million, amounted to Php194,664 million in 2024, an increase of Php3,250 million, or 2%, from Php191,414 million in 2023. The following table shows the breakdown of our consolidated revenues by business segment for the years ended December 31, 2024 and 2023: Change 2024 % 2023 % Amount % (amounts in million Php) Wireless 105,734 49 104,401 50 1,333 1 Fixed Line 126,490 58 120,734 57 5,756 5 Inter-segment transactions (15,391 ) (7 ) (14,182 ) (7 ) (1,209 ) (9 ) Consolidated 216,833 100 210,953 100 5,880 3 Expenses Consolidated expenses decreased by Php3,913 million, or 2%, to Php166,346 million in 2024 from Php170,259 million in 2023, primarily due to lower expenses related to general operating costs, depreciation and amortization, cost of devices, accessories and contract-specific services, and provisions, partially offset by higher interconnection costs and asset impairment. The following table shows the breakdown of our consolidated expenses by business segment for the years ended December 31, 2024 and 2023: Change 2024 % 2023 % Amount % (amounts in million Php) Wireless 86,653 52 82,827 49 3,826 5 Fixed Line 95,357 57 102,352 60 (6,995 ) (7 ) Others 90 — 18 — 72 400 Inter-segment transactions (15,754 ) (9 ) (14,938 ) (9 ) (816 ) (5 ) Consolidated 166,346 100 170,259 100 (3,913 ) (2 ) Other Income (Expenses) – Net Consolidated other expenses – net amounted to Php9,943 million in 2024, an increase of Php3,959 million, or 66%, from Php5,984 million in 2023, primarily due to the combined effects of the following: (i) lower other income – net from our Wireless business segment mainly on account of a lower gain on sale and leaseback of telecom towers, and from our Fixed Line business segment owing mainly to lower dividend income recognized from the subsidiaries of Wireless business segment; (ii) higher net financing costs from our Fixed Line and Wireless business segments; (iii) net foreign exchange losses from our Fixed Line business segment in 2024 as compared with net foreign exchange gains in 2023; (iv) higher net gains on derivative financial instruments from our Fixed Line and Wireless business segments; and (v) lower equity share in net losses from our Fixed Line and Other business segments. The following table shows the breakdown of our consolidated other income (expenses) – net by business segment for the years ended December 31, 2024 and 2023: Change 2024 2023 Amount % (amounts in million Php) Wireless (5,504 ) 1,169 (6,673 ) (571 ) Fixed Line 6,370 10,696 (4,326 ) (40 ) Others (988 ) (2,251 ) 1,263 56 Inter-segment transactions (9,821 ) (15,598 ) 5,777 37 Consolidated (9,943 ) (5,984 ) (3,959 ) (66 ) Net Income Consolidated net income increased by Php5,444 million, or 21%, to Php30,943 million in 2024 from Php25,499 million in 2023. The increase was mainly due to the combined effects of the following: (i) higher consolidated revenues by Php5,880 million; (ii) lower consolidated expenses by Php3,913 million; (iii) higher consolidated other expenses – net by Php3,959 million; (iv) higher provision for income tax by Php431 million; and (v) net loss from discontinued operations of Php41 million in 2023. Our consolidated basic and diluted EPS increased to Php141.80 in 2024 from Php116.77 in 2023. Our weighted average number of outstanding common shares was approximately 216.06 million for each of the years ended December 31, 2024 and 2023. 56 Table of Contents The following table shows the breakdown of our consolidated net income by business segment for the years ended December 31, 2024 and 2023: Change 2024 % 2023 % Amount % (amounts in million Php) Wireless 10,491 34 17,285 68 (6,794 ) (39 ) Fixed Line 31,349 101 25,426 100 5,923 23 Others (1,069 ) (3 ) (2,270 ) (9 ) 1,201 53 Inter-segment transactions (9,828 ) (32 ) (14,901 ) (58 ) 5,073 34 Continuing operations 30,943 100 25,540 100 5,403 21 Discontinued operations — — (41 ) — 41 100 Consolidated 30,943 100 25,499 100 5,444 21 On a Business Segment Basis Wireless Revenues We generated revenues of Php105,734 million from our Wireless business segment in 2024, an increase of Php1,333 million, or 1%, from Php104,401 million in 2023. The following table summarizes our total revenues by service from our Wireless business segment for the years ended December 31, 2024 and 2023: Increase (Decrease) 2024 % 2023 % Amount % (amounts in million Php) Service Revenues: Mobile 96,246 91 94,007 90 2,239 2 Fixed Wireless broadband 1,481 1 1,629 2 (148 ) (9 ) Other services(1) 52 — 41 — 11 27 Total Wireless Service Revenues 97,779 92 95,677 92 2,102 2 Non-Service Revenues: Sale of devices and accessories 7,955 8 8,724 8 (769 ) (9 ) Total Wireless Revenues 105,734 100 104,401 100 1,333 1 (1) Includes facility service fees. Service Revenues Our wireless service revenues increased by Php2,102 million, or 2%, to Php97,779 million in 2024 as compared with Php95,677 million in 2023, primarily due to higher revenues from mobile, partially offset by lower revenues from fixed wireless broadband. As a percentage of our total wireless revenues, service revenues accounted for 92% in each of 2024 and 2023. Wireless service revenues, net of interconnection costs, amounted to Php96,808 million in 2024, an increase of Php1,965 million, or 2%, from Php94,843 million in 2023. Mobile Services Our mobile service revenues amounted to Php96,246 million in 2024, an increase of Php2,239 million, or 2%, from Php94,007 million in 2023. Mobile service revenues accounted for 98% of our wireless service revenues in each of 2024 and 2023. The following table shows the breakdown of our mobile service revenues for the years ended December 31, 2024 and 2023: Increase (Decrease) 2024(1) % 2023(1) % Amount % (amounts in million Php) Mobile Services: Data 78,971 82 75,725 81 3,246 4 Voice 9,374 10 11,474 12 (2,100 ) (18 ) SMS 6,761 7 5,733 6 1,028 18 Others(2) 1,140 1 1,075 1 65 6 Total 96,246 100 94,007 100 2,239 2 57 Table of Contents (1)Certain amounts for the years ended December 31, 2024 and 2023 were reclassified to conform with the current presentation. (2)Refers to other non-subscriber-related revenues. Data Services Mobile revenues from our data services, which include mobile internet, mobile broadband and other data services, increased by Php3,204 million, or 4%, to Php78,971 million in 2024 from Php75,725 million in 2023 due to higher mobile internet revenues driven mainly by the continued strength of our mobile network, and promotion of data offers such as Power All, Double Giga and Magic Data, which cater to the needs of prepaid subscribers, partially offset by lower mobile broadband data revenues. Data services accounted for 82% and 81% of our mobile service revenues for the years ended December 31, 2024 and 2023, respectively. The following table shows the breakdown of our mobile data service revenues for the years ended December 31, 2024 and 2023: Increase (Decrease) 2024 % 2023 % Amount % (amounts in million Php) Data Services: Mobile internet(1) 75,061 95 71,268 94 3,793 5 Mobile broadband 2,255 3 2,900 4 (645 ) (22 ) Other data 1,655 2 1,557 2 98 6 Total 78,971 100 75,725 100 3,246 4 (1)Includes revenues from web-based services, net of discounts and content provider costs. Mobile Internet Mobile internet service revenues increased by Php3,793 million, or 5%, to Php75,061 million in 2024 from Php71,268 million in 2023, primarily due to our mobile data offerings, such as All Access+, Power All, Magic Data, TNT's Saya All, and Smart Postpaid's Unli 5G plans. Smart continues to drive usage and top-ups via Smart App, the Smart Online Store and its retailer network. Smart has also rolled out 5G offers and device financing through partnerships with credit card companies to drive more users on 5G. Smart also launched iPhones on prepaid to drive 5G adoption in the prepaid category. Mobile internet services accounted for 78% and 76% of our mobile service revenues in 2024 and 2023, respectively. Mobile Broadband Mobile broadband revenues generated from the use of pocket WiFi, amounted to Php2,255 million in 2024, a decrease of Php645 million, or 22%, from Php2,900 million in 2023, primarily due to lower mobile broadband subscriber base. Mobile broadband services accounted for 2% and 3% of our mobile service revenues in 2024 and 2023, respectively. Other Data Revenues from our other data services, which include VAS and domestic leased lines, increased by Php98 million, or 6%, to Php1,655 million in 2024 from Php1,557 million in 2023. Voice Services Mobile revenues from our voice services, which include all voice traffic, decreased by Php2,100 million, or 18%, to Php9,374 million in 2024 from Php11,474 million in 2023, due to subscribers’ shift to alternative calling options, digital teleconferencing solutions, and other OTT services. To adapt to these evolving consumer behaviors, PLDT is accelerating its transition toward a mobile-data-centric ecosystem, leveraging its extensive 4G and 5G networks and investing in next-generation voice technologies. To enhance call quality and improve customer experience, Smart has been providing its mobile users with Voice over LTE (VoLTE) and Voice over WiFi (VoWiFi) services, enabling voice calls to be transmitted over high-speed digital networks. These technologies provide superior voice clarity and better integration with mobile data service, ensuring continued relevance of voice offerings within a data-first environment. 58 Table of Contents PLDT is also optimizing its network investments to sustain growth in high-speed connectivity and digital voice solutions, ensuring long-term revenue stability despite the industry-wide decline in traditional voice services. Mobile voice services accounted for 10% and 12% of our mobile service revenues in 2024 and 2023, respectively. SMS Services Mobile revenues from our SMS services, which include all SMS-related services, increased by Php1,028 million, or 18%, to Php6,761 million in 2024 from Php5,733 million in 2023, mainly due to the increase in application-to-person (A2P) messaging services. While traditional person-to-person (P2P) SMS volumes continue to decline due to the rise of OTT messaging, social media, and chat applications, A2P messaging remains a key growth driver. Businesses are increasingly utilizing SMS for secure authentication, customer engagement, and real-time notifications, reinforcing its role as a critical communication channel for enterprises. Mobile SMS services accounted for 7% and 6% of our mobile service revenues in 2024 and 2023, respectively. Others Mobile revenues from other services increased by Php65 million, or 6%, to Php1,140 million in 2024 from Php1,075 million in 2023 mainly due to higher other subscriber-related revenues. Subscriber Base, ARPU and Churn Rates R.A. No. 11934 or the SIM Registration Act took effect on October 28, 2022. Under this law, all end-users are required to register their SIMs with public telecommunications entities (PTEs) as a pre-requisite to the activation thereof. On September 18, 2023, the NTC issued Memorandum Order No. ###-##-#### providing for guidelines for PTEs in the conduct of processes to verify submitted information and data by end-users of SIMs under the SIM Registration Act and its IRR. The following table shows our mobile subscriber base as at December 31, 2024 and 2023: Increase (Decrease) 2024 2023 Amount % Mobile subscriber base(1) Prepaid 56,731,489 55,667,880 1,063,609 2 Smart 21,759,728 21,530,993 228,735 1 TNT 34,971,761 34,136,887 834,874 2 Postpaid 2,258,318 2,159,246 99,072 5 Total 58,989,807 57,827,126 1,162,681 2 (1)Includes mobile broadband subscribers. In view of the SIM Registration Act, we recognize a prepaid mobile subscriber as active upon registration of the SIM card. Beginning the fourth quarter of 2023, we consider a prepaid mobile subscriber as churn if the subscriber does not reload within 180 days after the full usage or expiry of the last reload, and does not latch to the network within 180 days. The average monthly churn rates for Smart Prepaid subscribers were 2.2% and 2.6% in 2024 and 2023, respectively, while the average monthly churn rates for TNT subscribers were 2.0% and 2.8% in 2024 and 2023, respectively. The average monthly churn rates for Postpaid subscribers were 1.1% and 1.4% in 2024 and 2023, respectively. Smart introduced the first prepaid eSIM in the country in July 2023 and introduced digital delivery of eSIMs in September 2023. Smart enabled physical SIM to eSIM upgrades in the second quarter of 2024 to help mitigate churn. The following table summarizes our average monthly ARPUs for the years ended December 31, 2024 and 2023: Gross(1) Increase (Decrease) Net(2) Increase (Decrease) 2024 2023 Amount % 2024 2023 Amount % (amounts in Php) Prepaid Smart 137 135 2 1 % 123 119 4 3 % TNT 115 110 5 5 % 105 99 6 6 % Postpaid 729 727 2 — 688 688 — — (1)Gross monthly ARPU is calculated by dividing gross mobile service revenues for the year, including interconnection income, but excluding inbound roaming revenues, gross of discounts, and content provider costs, by the average number of subscribers for the period. (2)Net monthly ARPU is calculated by dividing gross mobile service revenues for the year, including interconnection income, but excluding inbound roaming revenues, net of discounts, and content provider costs, by the average number of subscribers for the period. 59 Table of Contents Fixed Wireless Broadband Revenues from our Fixed Wireless Broadband services amounted to Php1,481 million in 2024, a decrease of Php148 million, or 9%, from Php1,629 million in 2023. Other Services Revenues from our other services amounted to Php52 million in 2024, an increase of Php11 million, or 27%, from Php41 million in 2023. Non-Service Revenues Our wireless non-service revenues consist of sale of mobile handsets, broadband data routers and devices. Our wireless non-service revenues decreased by Php769 million, or 9%, to Php7,955 million in 2024 from Php8,724 million in 2023, primarily due to a lower sale of postpaid mobile handsets. Expenses Expenses associated with our Wireless business segment amounted to Php86,653 million in 2024, an increase of Php3,826 million, or 5%, from Php82,827 million in 2023. The increase was attributable to higher expenses related to depreciation and amortization, provisions, general operating costs, and interconnection costs, partially offset by lower cost of devices, accessories and contract-specific services. As a percentage of our total wireless revenues, expenses associated with our Wireless business segment accounted for 82% and 79% in 2024 and 2023, respectively. The following table summarizes the breakdown of our total wireless-related expenses for the years ended December 31, 2024 and 2023 and the percentage of each expense item in relation to the total: Increase (Decrease) 2024 % 2023 % Amount % (amounts in million Php) General operating costs 37,813 44 37,643 45 170 — Depreciation and amortization 36,483 42 31,684 38 4,799 15 Cost of devices, accessories and contract-specific services 10,480 12 12,018 15 (1,538 ) (13 ) Asset impairment 906 1 648 1 258 40 85,682 99 81,993 99 3,689 4 Interconnection costs 971 1 834 1 137 16 Total 86,653 100 82,827 100 3,826 5 General operating costs increased by Php170 million from 2023 to Php37,813 million in 2024, primarily due to higher expenses related to repairs and maintenance, and rent, partially offset by lower professional and other contracted services, compensation and employee benefits, selling and promotions, and communication, training and travel. Depreciation and amortization charges increased by Php4,799 million from 2023, or 15%, to Php36,483 million in 2024, mainly on account of accelerated depreciation recognized for the modernization of certain technology equipment resulting mainly from the migration to cloud-based platform, combined with the depreciation of newly capitalized property and equipment, and the higher amortization of capitalized leases of telecom towers. Cost of devices, accessories and contract-specific services decreased by Php1,538 million from 2023, or 13%, to Php10,480 million in 2024, primarily due to lower number of units issued for mobile handsets, and lower SIM registration and SIM printing costs. Asset impairment increased by Php258 million from 2023, or 40%, to Php906 million in 2024, primarily due to higher provision for expected credit losses and provision for inventory obsolescence. Interconnection costs increased by Php137 million from 2023, or 16%, to Php971 million in 2024, primarily due to higher interconnection costs on A2P transactions. 60 Table of Contents Other Income (Expenses) – Net The following table summarizes the breakdown of our total wireless-related other income (expenses) – net for the years ended December 31, 2024 and 2023: Change 2024 2023 Amount % (amounts in million Php) Other Income (Expenses) – Net: Gains on derivative financial instruments – net 885 (376 ) 1,261 335 Foreign exchange gains – net 775 981 (206 ) (21 ) Interest income 698 720 (22 ) (3 ) Financing costs – net (9,763 ) (9,034 ) (729 ) (8 ) Other income – net 1,901 8,878 (6,977 ) (79 ) Total (5,504 ) 1,169 (6,673 ) (571 ) Our Wireless business segment’s other expenses – net amounted to Php5,504 million in 2024, a change of Php6,673 million as against other income – net of Php1,169 million in 2023, primarily due to the combined effects of the following: (i) lower other income – net by Php6,977 million mainly due to lower gain on sale and leaseback of telecom tower, gross of transactions, which decreased by Php6,335 million to Php1,442 million in 2024 from Php7,777 million in 2023; (ii) higher net financing costs by Php729 million mainly due to higher interest rates and lower capitalized interest; (iii) lower net foreign exchange gains by Php206 million mainly on account of revaluation of net foreign currency-denominated liabilities due to depreciation of the Philippine peso relative to the U.S. dollar in 2024 as compared to the appreciation of the Philippine peso relative to the U.S. dollar in 2023; (iv) lower interest income by Php22 million; and (v) higher net gains on derivative financial instruments by Php1,261 million mainly due to the depreciation of the Philippine peso relative to the U.S. dollar in 2024 as compared to the appreciation of the Philippine peso relative to the U.S. dollar in 2023. Provision for Income Tax Provision for income tax amounted to Php3,086 million in 2024, a decrease of Php2,372 million, or 43%, from Php5,458 million in 2023, mainly due to lower net income before tax. Net Income As a result of the foregoing, our Wireless business segment’s net income decreased by Php6,794 million, or 39%, to Php10,491 million in 2024 from Php17,285 million in 2023. Fixed Line Revenues Revenues generated from our Fixed Line business segment amounted to Php126,490 million in 2024, an increase of Php5,756 million, or 5%, from Php120,734 million in 2023. The following table summarizes our total revenues by service from our Fixed Line business segment for the years ended December 31, 2024 and 2023: Increase (Decrease) 2024(1) % 2023(1) % Amount % (amounts in million Php) Service Revenues: Data 96,269 76 93,597 78 2,672 3 Voice 29,660 24 26,686 22 2,974 11 Miscellaneous 65 — 53 — 12 23 Total Fixed Line Service Revenues 125,994 100 120,336 100 5,658 5 Non-Service Revenues: Sale of devices and accessories 496 — 398 — 98 25 Total Fixed Line Revenues 126,490 100 120,734 100 5,756 5 61 Table of Contents Service Revenues Our fixed line service revenues increased by Php5,658 million, or 5%, to Php125,994 million in 2024 from Php120,336 million in 2023, primarily due to higher revenues from our voice, data and miscellaneous services. Fixed Line service revenues, net of interconnection costs, amounted to Php111,675 million in 2024, an increase of Php2,469 million, or 2%, from Php109,206 million in 2023. Data Services Our data services, which include Home broadband, corporate data, and ICT portfolio with data center, cloud, cybersecurity, and managed IT offerings, posted revenues of Php96,269 million in 2024, an increase of Php2,672 million, or 3%, from Php93,597 million in 2023, primarily due to higher revenues from Home broadband, corporate data and leased lines, and ICT services, inclusive of intersegment transactions. The percentage contribution of this service segment to our fixed line service revenues accounted for 76% and 78% in 2024 and 2023, respectively. The following table shows information of our data service revenues for the years ended December 31, 2024 and 2023: Increase (Decrease) 2024 % 2023 % Amount % (amounts in million Php) Data service revenues Home broadband 51,759 54 50,876 54 883 2 Corporate data and ICT 44,510 46 42,721 46 1,789 4 Total 96,269 100 93,597 100 2,672 3 Home Broadband Home broadband data revenues amounted to Php51,759 million in 2024, an increase of Php883 million, or 2%, from Php50,876 million in 2023, mainly driven by the increasing demand for broadband services. Home broadband revenues accounted for 54% of fixed line data service revenues in each of 2024 and 2023. Corporate Data and ICT Corporate data services amounted to Php36,676 million in 2024, an increase of Php1,087 million, or 3%, as compared with Php35,589 million in 2023, mainly due to the sustained demand for broadband internet and data networking services. Corporate data revenues accounted for 38% of our total data service revenues in each of 2024 and 2023. ICT revenues increased by Php702 million, or 10%, to Php7,834 million in 2024 from Php7,132 million in 2023, mainly due to higher revenues from managed IT, data center and cloud services. The percentage contribution of this service segment to our total data service revenues accounted for 8% in each of 2024 and 2023. Voice Services Revenues from our voice services increased by Php2,974 million, or 11%, to Php29,660 million in 2024 from Php26,686 million in 2023, primarily due to higher revenues from wholesale international voice of PLDT Global driven by higher traffic volume. Excluding wholesale international voice revenues of Php13,224 million and Php9,323 million in 2024 and 2023, respectively, our voice services decreased by Php927 million, or 5%, to Php16,436 million in 2024 from Php17,363 million in 2023. The percentage contribution of voice service revenues to our fixed line service revenues accounted for 24% and 22% in 2024 and 2023, respectively. Miscellaneous Services Miscellaneous service revenues are derived mostly from rentals and management fees. These service revenues increased by Php12 million, or 23%, to Php65 million in 2024 from Php53 million in 2023. 62 Table of Contents Non-service Revenues Non-service revenues increased by Php98 million, or 25%, to Php65 million in 2024 from Php53 million in 2023, primarily due higher sale of devices. Expenses Expenses related to our Fixed Line business segment totaled Php95,357 million in 2024, a decrease of Php6,995 million, or 7%, as compared with Php102,352 million in 2023. The decrease was primarily due to lower depreciation and amortization, general operating costs and provisions, partly offset by higher interconnection costs, cost of devices, accessories and contract-specific services and asset impairment. As a percentage of our total fixed line revenues, expenses associated with our Fixed Line business segment accounted for 75% and 85% in 2024 and 2023, respectively. The following table shows the breakdown of our total fixed line-related expenses for the years ended December 31, 2024 and 2023 and the percentage of each expense item in relation to the total: Increase (Decrease) 2024 % 2023 % Amount % (amounts in million Php) General operating costs 44,850 47 47,434 46 (2,584 ) (5 ) Depreciation and amortization 29,132 30 36,890 36 (7,758 ) (21 ) Cost of devices, accessories and contract-specific services 3,641 4 3,114 3 527 17 Asset impairment 3,415 4 3,784 4 (369 ) (10 ) 81,038 85 91,222 89 (10,184 ) (11 ) Interconnection costs 14,319 15 11,130 11 3,189 29 Total 95,357 100 102,352 100 (6,995 ) (7 ) General operating costs decreased by Php2,584 million, or 5%, to Php44,850 million in 2024, primarily due to lower expenses related to selling and promotions, repairs and maintenance, professional and other contracted services, and communication, training and travel. This is partly offset by higher expenses related to rent and compensation and employee benefits. Depreciation and amortization charges decreased by Php7,758 million, or 21%, to Php29,132 million in 2024, mainly due to accelerated depreciation and amortization in 2023 of subscriber contract cost to fulfill, partially offset by accelerated depreciation recognized in 2024 for the modernization of some core and transport network equipment, and depreciation of newly capitalized property and equipment. Cost of devices, accessories and contract-specific services increased by Php527 million, or 17%, to Php3,641 million in 2024, primarily due to higher cost of services, mainly from higher cost of content, and managed IT solutions and services. Asset impairment decreased by Php369 million, or 10%, to Php3,415 million in 2024, primarily due to lower provision for expected credit losses, mainly on account of higher collection efficiency for Home. Interconnection costs increased by Php3,189 million, or 29%, to Php14,319 million in 2024, primarily due to higher international interconnection costs of PLDT Global driven by higher traffic volume. Excluding cost of wholesale international voice of Php12,987 million and Php9,277 million in 2024 and 2023, respectively, our interconnection costs decreased by Php521 million, or 28%, to Php1,332 million in 2024 from Php1,853 million in 2023. Other Income (Expenses) – Net The following table summarizes the breakdown of our total fixed line-related other income (expenses) – net for the years ended December 31, 2024 and 2023: Change 2024 2023 Amount % (amounts in million Php) Other Income (Expenses) – Net: Gains on derivative financial instruments – net 756 (367 ) 1,123 (306 ) Interest income 230 324 (94 ) (29 ) Equity share in net losses of associates and joint ventures (67 ) (595 ) 528 89 Foreign exchange gains (losses) – net (819 ) 138 (957 ) (693 ) Financing costs – net (7,456 ) (6,824 ) (632 ) (9 ) Other income – net 13,726 18,020 (4,294 ) (24 ) Total 6,370 10,696 (4,326 ) (40 ) 63 Table of Contents Our Fixed Line business segment’s other income – net amounted to Php6,370 million in 2024, a decrease of Php4,236 million, or 40%, from Php10,696 million in 2023, primarily due to the combined effects of the following: (i) lower other income – net by Php4,294 million mainly due to lower dividend income recognized from the subsidiaries of Wireless business segment; (ii) net foreign exchange losses of Php819 million in 2024 as against net foreign exchange gains of Php138 million in 2023 mainly due to the depreciation of the Philippine peso relative to the U.S. dollar in 2024 as compared to the appreciation of the Philippine peso relative to the U.S. dollar in 2023; (iii) higher net financing costs by Php632 million mainly due to higher interest rates and higher accretion on lease liabilities, partly offset by higher capitalized interest; (iv) lower interest income by Php94 million; (v) lower equity share in net losses of associates by Php528 million mainly due to lower equity share in net losses of Cignal TV; (vi) net gains on derivative financial instruments of Php756 million in 2025 as against net losses on derivative financial instruments of Php367 million in 2024 mainly due to the depreciation of the Philippine peso relative to the U.S. dollar in 2024 as compared to the appreciation of the Philippine peso relative to the U.S. dollar in 2023. Provision for (Benefit from) Income Tax Provision for income tax amounted to Php6,154 million in 2024, an increase of Php2,502 million, or 69%, from Php3,652 million in 2023, mainly due to higher net income before tax. Net Income As a result of the foregoing, our Fixed Line business segment registered a net income of Php31,349 million in 2024, an increase of Php5,923 million, or 23%, as compared with Php25,426 million in 2023. Others Revenues Revenues generated from our Other business segment amounted to nil for each of the years ended December 31, 2024 and 2023. Expenses Expenses related to our Other business segment increased by Php72 million to Php90 million in 2024 from Php18 million in 2023. Other Income (Expenses) – Net The following table summarizes the breakdown of other income (expenses) – net for Other business segment for the years ended December 31, 2024 and 2023: Change 2024 2023 Amount % (amounts in million Php) Other Income (Expenses) – Net: Interest income 15 7 8 114 Foreign exchange losses – net (75 ) (76 ) 1 1 Equity share in net losses of associates and joint ventures (923 ) (2,211 ) 1,288 58 Other income (expenses) – net (5 ) 29 (34 ) (117 ) Total (988 ) (2,251 ) 1,263 56 Our Other business segment’s other expenses – net amounted to Php988 million in 2024, a decrease of Php1,263 million, or 56%, from Php2,251 million in 2023, primarily due to lower equity share in net losses of associates and joint ventures by Php1,288 million mainly on account of lower equity share in net losses in MIH. Net Loss As a result of the foregoing, our Other business segment registered a net loss of Php1,069 million in 2024, a decrease of Php1,201 million, or 53%, from Php2,270 million in 2023. Key Non-IFRS Financial Measures 64 Table of Contents In addition to the measures presented in our consolidated financial statements, we use the following key non-IFRS financial measures to help us evaluate our business, identify trends affecting our business, formulate business plans, and make strategic decisions. However, the definitions of our non-IFRS financial measures may be different from those used by other companies, and therefore, may not be comparable. Furthermore, these non-IFRS financial measures have certain limitations in that they do not include the impact of certain expenses reflected in our consolidated financial statements that are necessary to run our business. Thus, these non-IFRS financial measures should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with IFRS. We compensate for these limitations by providing a reconciliation of these non-IFRS financial measures to the related IFRS financial measures under the section titled “Reconciliation of Non-IFRS Financial Measures.” We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view these non-IFRS financial measures in conjunction with their respective related IFRS financial measures. Wireless Fixed Line Others Intersegment and Consolidation Entries Consolidated (amounts in million Php) For the year ended December 31, 2025 Adjusted EBITDA 57,589 63,253 (7 ) (9,604 ) 111,231 Adjusted EBITDA margin 59 % 49 % — — 52 % Telco core income 13,025 27,877 (113 ) (6,864 ) 33,925 Core income 13,025 27,877 598 (6,864 ) 34,636 For the year ended December 31, 2024 Adjusted EBITDA 55,634 61,953 (48 ) (9,024 ) 108,515 Adjusted EBITDA margin 57 % 49 % — — 52 % Telco core income 10,852 34,372 (32 ) (10,054 ) 35,138 Core income 10,852 34,518 (1,084 ) (10,054 ) 34,232 For the year ended December 31, 2023 Adjusted EBITDA 54,369 59,102 (18 ) (9,156 ) 104,233 Continuing operations 54,369 59,102 (18 ) (9,156 ) 104,297 Discontinued operations — — — — (64 ) Adjusted EBITDA margin(1) 57 % 49 % — — 52 % Telco core income 11,750 37,590 65 (15,064 ) 34,341 Core income 11,750 37,886 (2,110 ) (15,064 ) 32,421 Continuing operations 11,750 37,886 (2,110 ) (15,064 ) 32,462 Discontinued operations — — — — (41 ) Adjusted EBITDA and Adjusted EBITDA Margin Adjusted EBITDA is measured as net income excluding depreciation and amortization, asset impairment on noncurrent assets, financing costs – net, interest income, equity share in net earnings (losses) of associates and joint ventures, foreign exchange gains (losses) – net, gains (losses) on derivative financial instruments – net, provision for (benefit from) income tax, other income (expense) – net, manpower rightsizing program (MRP) and non-recurring income (expenses). Adjusted EBITDA is monitored by management for each business unit separately for purposes of making decisions about resource allocation and performance assessment. Adjusted EBITDA Margin is measured as Adjusted EBITDA divided by service revenues. Adjusted EBITDA and Adjusted EBITDA Margin are presented because our management believes that it is widely used by investors in their analysis of the performance of PLDT and can assist them in their comparison of PLDT’s performance with those of other companies in the technology, media and telecommunications sector. Companies in the technology, media and telecommunications sector have historically reported such measures as a supplement to financial measures in accordance with IFRS Accounting Standards. Adjusted EBITDA should not be considered as alternative to net income as an indicator of our performance, nor should Adjusted EBITDA be considered as an alternative to cash flows from operating activities, as a measure of liquidity or as an alternative to any other measure determined in accordance with IFRS Accounting Standards. Unlike net income, Adjusted EBITDA does not include depreciation and amortization, or financing costs and, therefore, does not reflect current or future capital expenditures or the cost of capital. We compensate for these limitations by using Adjusted EBITDA and Adjusted EBITDA Margin as only some of several comparative tools, together with IFRS Accounting Standards-based measurements, to assist in the evaluation of operating performance. Such IFRS Accounting Standards-based measurements include income before income tax, net income, and operating, investing and financing cash flows. We have significant uses of cash flows, including capital expenditures, interest payments, debt principal repayments, taxes and other non-recurring charges, which are not reflected in Adjusted EBITDA. Our calculation of Adjusted EBITDA may be different from the calculation methods used by other companies and, therefore, comparability may be limited. 65 Table of Contents Our consolidated Adjusted EBITDA amounted to Php111,231 million in 2025, an increase of Php2,716 million, or 3%, as compared with Php108,515 million in 2024. Our consolidated Adjusted EBITDA in 2024 represented an increase of Php4,282 million, or 4%, as compared with Php104,233 million in 2023. Our Wireless business segment’s Adjusted EBITDA increased by Php1,955 million, or 4%, to Php57,589 million in 2025 from Php55,634 million in 2024, which in turn, represented an increase of Php1,265 million, or 2% from Php54,369 million in 2023. Adjusted EBITDA margin increased to 59% in 2025 from 57% in 2024 and 2023. Our Fixed Line business segment’s Adjusted EBITDA increased by Php1,300 million, or 2%, to Php63,253 million in 2025 from Php61,953 million in 2024, which in turn, represented an increase of Php2,851 million, or 5%, from Php59,102 million in 2023. Adjusted EBITDA margin remained stable at 49% in 2025, 2024 and 2023. Core Income and Telco Core Income Core income is measured as net income attributable to equity holders of PLDT (net income less net income attributable to noncontrolling interests), excluding foreign exchange gains (losses) – net, gains (losses) on derivative financial instruments – net (excluding hedge costs), asset impairment on noncurrent assets, non-recurring gains (losses), net of tax effect of aforementioned adjustments, as applicable, and similar adjustments to equity share in net earnings (losses) of associates and joint ventures. Core income results are monitored by management for each business unit separately for purposes of making decisions about resource allocation and performance assessment. Meanwhile, telco core income is measured as net income attributable to equity holders of PLDT (net income less net income attributable to noncontrolling interests), excluding foreign exchange gains (losses) – net, gains (losses) on derivative financial instruments – net (excluding hedge costs), asset impairment on noncurrent assets, non-recurring gains (losses), net of tax effect of aforementioned adjustments, as applicable, and similar adjustments to equity share in net earnings (losses) of associates and joint ventures, adjusted for the effect of the share in Maya Innovations Holdings, Pte. Ltd. (MIH) (formerly Voyager Innovations Holdings, Pte. Ltd.) and Kayana Solutions, Inc. (Kayana) (formerly Limitless Growth Ventures, Inc.) income (losses), asset sales, and depreciation due to change in accounting estimate. Telco core income is used by the management as a basis for determining the level of dividend payouts to shareholders and one of the bases for granting incentives to employees. Core income and telco core income should not be considered as alternatives to income before income tax or net income determined in accordance with IFRS Accounting Standards as an indicator of our performance. Unlike net income, core income and telco core income do not include certain items, among others, foreign exchange gains and losses, gains and losses on derivative financial instruments, impairment on non-current assets and non-recurring gains and losses. We compensate for these limitations by using core income and telco core income as a few of several comparative tools, together with IFRS Accounting Standards-based measurements, to assist in the evaluation of operating performance. Such IFRS Accounting Standards-based measurements include income before income tax and net income. Our calculation of core income may be different from the calculation methods used by other companies and, therefore, comparability may be limited. Our consolidated telco core income amounted to Php33,925 million in 2025, a decrease of Php1,213 million, or 3%, as compared with Php35,138 million in 2024, mainly due to higher financing costs and depreciation and amortization, partially offset by higher Adjusted EBITDA and other miscellaneous income. Our consolidated telco core income in 2024 recorded an increase of Php797 million, or 2%, as compared with Php34,341 million in 2023, mainly due to higher Adjusted EBITDA and lower equity share in net losses of associates and joint ventures, partially offset by higher depreciation and amortization and financing costs. Our consolidated core income amounted to Php34,636 million in 2025, an increase of Php404 million, or 1%, as compared with Php34,232 million in 2024, mainly on account of higher Adjusted EBITDA, equity share in net earnings of associates and joint ventures in 2025 as against equity share in net losses of associates and joint ventures in 2024, and higher other miscellaneous income, partially offset by higher depreciation and amortization and financing costs. Our consolidated core income in 2024 was an increase of Php1,811 million, or 6%, as compared with Php32,421 million in 2023, mainly on account of higher Adjusted EBITDA and lower equity share in net losses of associates and joint ventures, partially offset by higher depreciation and amortization and financing costs. Our consolidated basic and diluted core EPS increased to Php160.04 in 2025 from Php158.17 in 2024 and Php149.78 in 2023. Our Wireless business segment’s core income increased by Php2,173 million, or 20%, to Php13,025 million in 2025 from Php10,852 million in 2024, mainly on account of higher EBITDA and other miscellaneous income, partially offset by higher depreciation and amortization, and financing costs. Our Wireless business segment’s core income in 2024 represented a decrease of Php898 million, or 8%, from Php11,750 million in 2023, mainly on account of higher depreciation and amortization, and financing costs, partially offset by higher Adjusted EBITDA and lower provision for income tax. Our Fixed Line business segment’s core income decreased by Php6,641 million, or 19%, to Php27,877 million in 2025 from Php34,518 million in 2024, primarily due to lower other miscellaneous income and higher financing costs, partially offset by higher Adjusted EBITDA. Our Fixed Line business segment’s core income represented a decrease of Php3,368 million, or 9%, 66 Table of Contents from Php37,886 million in 2023, primarily due to lower other miscellaneous income and higher financing costs, partially offset by higher Adjusted EBITDA. Our Other business segment’s core income amounted to Php598 million in 2025, a change of Php1,682 million as against core loss of Php1,084 million in 2024. Our Other business segment’s core loss amounted to Php1,084 million in 2024, a decrease of Php1,026 million, or 49%, from core loss of Php2,110 million in 2023. 67 Table of Contents Reconciliation of Non-IFRS Financial Measures The following table shows the reconciliation of our consolidated net income to our consolidated Adjusted EBITDA and Adjusted EBITDA Margin for the years ended December 31, 2025, 2024 and 2023: For the year ended December 31, 2025 Wireless Fixed Line Others Intersegment and Consolidation Entries Consolidated (amounts in million Php) Consolidated net income 9,437 25,599 568 (6,735 ) 28,869 Add (deduct) adjustments: Depreciation and amortization 40,560 26,928 — (8,001 ) 59,487 Financing costs – net 9,941 9,411 — (1,184 ) 18,168 Provision for income tax 2,709 6,810 (29 ) (669 ) 8,821 Manpower rightsizing program (MRP) 296 1,092 — — 1,388 Foreign exchange losses (gains) – net 12 545 (4 ) (3 ) 550 Equity share in net losses (earnings) of associates and joint ventures 11 924 (507 ) — 428 Losses on derivative financial instruments – net 27 14 — — 41 Impairment of non-current assets — 8 — — 8 Interest income (554 ) (171 ) (11 ) 17 (719 ) Income from prescription of liability on subscriber investment plan deposits and other non-recurring income (501 ) (229 ) — — (730 ) Gain on sale and leaseback of telecom towers – net of transaction costs (871 ) — — — (871 ) Others – net (3,478 ) (7,678 ) (24 ) 6,971 (4,209 ) Total adjustments 48,152 37,654 (575 ) (2,869 ) 82,362 Consolidated Adjusted EBITDA 57,589 63,253 (7 ) (9,604 ) 111,231 Service Revenues 97,568 130,355 — (15,737 ) 212,186 Adjusted EBITDA Margin 59 % 49 % — 61 % 52 % For the year ended December 31, 2024 Consolidated net income 10,491 31,349 (1,069 ) (9,828 ) 30,943 Add (deduct) adjustments: Depreciation and amortization 36,483 29,132 — (9,387 ) 56,228 Financing costs – net 9,763 7,456 — (1,719 ) 15,500 Provision for income tax 3,086 6,154 (9 ) 370 9,601 MRP 69 1,619 — — 1,688 Equity share in net losses of associates and joint ventures — 67 923 — 990 Impairment of non-current assets 1 68 — — 69 Foreign exchange losses (gains) – net (775 ) 819 75 (83 ) 36 Income from prescription of liability on redeemable preferred shares — (71 ) — — (71 ) Interest income (698 ) (230 ) (15 ) 27 (916 ) Gain on sale and leaseback of telecom towers – net of transaction costs (951 ) — — — (951 ) Gains on derivative financial instruments – net (885 ) (756 ) — — (1,641 ) Others – net (950 ) (13,654 ) 47 11,596 (2,961 ) Total adjustments 45,143 30,604 1,021 804 77,572 Consolidated Adjusted EBITDA 55,634 61,953 (48 ) (9,024 ) 108,515 Service Revenues 97,779 125,994 — (15,391 ) 208,382 Adjusted EBITDA Margin 57 % 49 % — 59 % 52 % For the year ended December 31, 2023 Net income from continuing operations 17,285 25,426 (2,270 ) (14,901 ) 25,540 Net loss from discontinued operations — — — (41 ) Consolidated net income 17,285 25,426 (2,270 ) (14,901 ) 25,499 Add (deduct) adjustments to continuing operations: Depreciation and amortization 31,684 36,890 — (9,912 ) 58,662 Financing costs – net 9,034 6,824 — (2,103 ) 13,755 Provision for income tax 5,458 3,652 1 59 9,170 Equity share in net earnings of associates and joint ventures — 595 2,211 — 2,806 Additional amortization of subscriber contract cost to obtain — 2,135 — — 2,135 MRP 327 1,694 — — 2,021 Losses on derivative financial instruments – net 376 367 — — 743 Interest income (720 ) (324 ) (7 ) 35 (1,016 ) Foreign exchange losses (gains) – net (981 ) (138 ) 76 (106 ) (1,149 ) Gain on sale and leaseback of telecom towers – net of transaction costs (6,992 ) — — — (6,992 ) Others – net (1,102 ) (18,019 ) (29 ) 17,772 (1,378 ) Total adjustments 37,084 33,676 2,252 5,745 78,757 Adjusted EBITDA from continuing operations 54,369 59,102 (18 ) (9,156 ) 104,297 Adjusted EBITDA from discontinued operations — — — — (64 ) Consolidated Adjusted EBITDA 54,369 59,102 (18 ) (9,156 ) 104,233 Service Revenues 95,677 120,336 — (14,181 ) 201,832 Adjusted EBITDA Margin 57 % 49 % — 65 % 52 % 68 Table of Contents The following table shows the reconciliation of our consolidated net income to our consolidated core income and consolidated telco core income for the years ended December 31, 2025, 2024 and 2023: For the year ended December 31, 2025 Wireless Fixed Line Others Intersegment and Consolidation Entries Consolidated (amounts in million Php) Consolidated net income 9,437 25,599 568 (6,735 ) 28,869 Add (deduct) adjustments: Accelerated depreciation and amortization 5,776 981 — — 6,757 MRP 296 1,092 — — 1,388 Core income adjustment on equity share in net losses of associates and joint ventures — 610 33 — 643 Foreign exchange losses (gains) – net 12 545 (4 ) (3 ) 550 Amortization of debt discount from debt modification 113 49 — — 162 Impairment of non-current assets — 8 — — 8 Net income attributable to noncontrolling interests (15 ) (65 ) — (127 ) (207 ) Income from prescription of liability on subscriber investment plan deposits and other non-recurring income (501 ) (229 ) — — (730 ) Gain on sale and leaseback of telecom towers – net of transaction costs (871 ) — — — (871 ) Gains on derivative financial instruments – net, excluding hedge costs (22 ) (135 ) — — (157 ) Net tax effect of aforementioned adjustments (1,200 ) (578 ) 1 1 (1,776 ) Total adjustments 3,588 2,278 30 (129 ) 5,767 Consolidated core income 13,025 27,877 598 (6,864 ) 34,636 Add (deduct) adjustments: Share in Kayana losses — — 92 — 92 Share in MIH income — — (716 ) — (716 ) Gain on asset sales, net of tax — — (87 ) — (87 ) Total adjustments — — (711 ) — (711 ) Consolidated telco core income 13,025 27,877 (113 ) (6,864 ) 33,925 For the year ended December 31, 2024 Consolidated net income 10,491 31,349 (1,069 ) (9,828 ) 30,943 Add (deduct) adjustments: Accelerated depreciation and amortization 2,787 2,899 — — 5,686 MRP 69 1,619 — — 1,688 Amortization of debt discount from debt modification 124 59 — — 183 Impairment of non-current assets 1 68 — — 69 Foreign exchange losses (gains) – net (775 ) 819 75 (83 ) 36 Core income adjustment on equity share in net loss (income) of associates and joint ventures — 66 (71 ) — (5 ) Income from prescription of liability on redeemable preferred shares and other non-recurring expenses (income) 210 (363 ) — — (153 ) Net income attributable to noncontrolling interests (16 ) (66 ) — (166 ) (248 ) Gain on sale and leaseback of telecom towers – net of transaction costs (951 ) — — — (951 ) Gains on derivative financial instruments – net, excluding hedge costs (943 ) (927 ) — — (1,870 ) Net tax effect of aforementioned adjustments (145 ) (1,005 ) (19 ) 23 (1,146 ) Total adjustments 361 3,169 (15 ) (226 ) 3,289 Consolidated core income 10,852 34,518 (1,084 ) (10,054 ) 34,232 Add (deduct) adjustments: Share in MIH losses — — 1,006 — 1,006 Share in Kayana losses — — 46 — 46 Gain on deconsolidation of Kayana — (146 ) — — (146 ) Total adjustments — (146 ) 1,052 — 906 Consolidated telco core income 10,852 34,372 (32 ) (10,054 ) 35,138 For the year ended December 31, 2023 Net income from continuing operations 17,285 25,426 (2,270 ) (14,901 ) 25,540 Net loss from discontinued operations — — — — (41 ) Consolidated net income 17,285 25,426 (2,270 ) (14,901 ) 25,499 Add (deduct) adjustments to continuing operations: Accelerated depreciation and amortization(1) — 13,924 — — 13,924 MRP 327 1,694 — — 2,021 Core income adjustment on equity share in net loss (income) of associates and joint ventures — 364 102 — 466 Other non-recurring expenses (income) (174 ) 433 — — 259 Amortization of debt discount from debt modification 125 52 — — 177 Impairment of investments 70 — — — 70 Net income attributable to noncontrolling interests (19 ) (129 ) — (62 ) (210 ) Foreign exchange losses (gains) – net (981 ) (142 ) 77 (106 ) (1,152 ) Losses on derivative financial instruments – net, excluding hedge costs 310 195 — — 505 Gain on sale and leaseback of telecom towers – net of transaction costs (6,992 ) — — — (6,992 ) Net tax effect of aforementioned adjustments 1,799 (3,931 ) (19 ) 5 (2,146 ) Total adjustments (5,535 ) 12,460 160 (163 ) 6,922 Core income from continuing operations 11,750 37,886 (2,110 ) (15,064 ) 32,462 Core loss from discontinued operations — — — — (41 ) Consolidated core income 11,750 37,886 (2,110 ) (15,064 ) 32,421 Core income from continuing operations 11,750 37,886 (2,110 ) (15,064 ) 32,462 Add (deduct) adjustments: Share in MIH losses — — 2,175 — 2,175 Gain on asset sales, net of tax — (296 ) — — (296 ) Total adjustments — (296 ) 2,175 — 1,879 Consolidated telco core income 11,750 37,590 65 (15,064 ) 34,341 (1) In 2023, accelerated depreciation and amortization includes subscriber contract cost to obtain of Php2,135 million and cost to fulfill of Php11,789 million. 69 Table of Contents The following table shows the reconciliation of our consolidated basic and diluted earnings per share (EPS) attributable to common equity holders of PLDT to our consolidated basic and diluted core EPS for the years ended December 31, 2025, 2024 and 2023: 2025 2024 2023 Basic Diluted Basic Diluted Basic Diluted (amounts in Php) EPS from continuing operations 132.38 132.38 141.80 141.80 116.96 116.96 EPS from discontinued operations — — — — (0.19 ) (0.19 ) Consolidated EPS attributable to common equity holders of PLDT 132.38 132.38 141.80 141.80 116.77 116.77 Add (deduct) adjustments: Accelerated depreciation and amortization 23.45 23.45 19.74 19.74 48.34 48.34 MRP 4.82 4.82 5.86 5.86 7.02 7.02 Foreign exchange losses (gains) – net 1.91 1.91 0.13 0.13 (4.00 ) (4.00 ) Core income adjustment on equity share in net (income) losses of associates and joint ventures 2.98 2.98 (0.02 ) (0.02 ) 2.16 2.16 Net losses on debt modification 0.56 0.56 0.64 0.64 0.61 0.61 Impairment of investments/noncurrent assets 0.03 0.03 0.31 0.31 0.32 0.32 Gains on derivative financial instruments – net, excluding hedge costs (0.54 ) (0.54 ) (6.49 ) (6.49 ) 1.75 1.75 Gain on sale and leaseback of telecom towers (3.02 ) (3.02 ) (3.31 ) (3.31 ) (24.59 ) (24.59 ) Income from prescription of liability on redeemable preferred shares/subscriber investment plan deposits and other non-recurring expenses (income) (2.53 ) (2.53 ) (0.49 ) (0.49 ) 1.40 1.40 Total adjustments 27.66 27.66 16.37 16.37 33.01 33.01 Core EPS from continuing operations 160.04 160.04 158.17 158.17 149.97 149.97 Core EPS from discontinued operations — — — — (0.19 ) (0.19 ) Consolidated core EPS 160.04 160.04 158.17 158.17 149.78 149.78 B. Liquidity and Capital Resources The following table shows our consolidated cash flows for the years ended December 31, 2025, 2024 and 2023: 2025 2024 2023 (amounts in million Php) Cash Flows Net cash flows provided by operating activities 98,738 81,731 85,765 Net cash flows used in investing activities (60,979 ) (65,704 ) (55,118 ) Payment for purchase of property and equipment, including capitalized interest (62,864 ) (68,257 ) (78,435 ) Net cash flows used in financing activities (35,927 ) (22,331 ) (39,418 ) Net increase (decrease) in cash and cash equivalents 1,855 (6,166 ) (9,034 ) The following table shows our consolidated capitalization and other consolidated selected financial data as at December 31, 2025 and 2024: 2025 2024 (amounts in million Php) Capitalization Interest-bearing financial liabilities: Long-term financial liabilities: Long-term debt 278,868 258,246 Current portion of interest-bearing financial liabilities: Long-term debt maturing within one year 16,180 23,340 Total interest-bearing financial liabilities 295,048 281,586 Total equity attributable to equity holders of PLDT 126,889 115,419 421,937 397,005 Other Selected Financial Data Total assets 634,828 623,275 Property and equipment 327,989 318,069 Cash and cash equivalents 11,866 10,011 Short-term investments 10 136 Our principal sources of liquidity are our cash and cash equivalents, cash flows from operating activities and investing activities, and proceeds from long-term debt. Our consolidated cash and cash equivalents and short-term investments totaled Php11,876 million, Php10,147 million and Php16,568 million as at December 31, 2025, 2024 and 2023, respectively. 70 Table of Contents In 2025, we had (i) cash flows from operating activities amounting to Php98,738 million, (ii) proceeds from availment of long-term debt of Php36,150 million, (iii) proceeds from availment of short-term debt of Php1,322 million, (iv) proceeds from the disposal of property and equipment of Php1,220 million, mainly comprising proceeds from the sale and leaseback of telecom towers, (v) proceeds from the disposal of investment in associates and joint ventures of Php775 million, mainly comprising return of capital from investment in Vega Telecom, Inc. (VTI) of Php600 million, (vi) proceeds from the disposal of AppCard shares of Php175 million; (vii) interest received of Php686 million, and (viii) proceeds from maturity of short-term investment of Php126 million. These funds were used principally for: (1) the purchase of property and equipment, including capitalized interest, of Php62,864 million; (2) long-term debt principal and interest payments of Php23,712 million and Php13,233 million, respectively; (3) cash dividends paid of Php20,590 million; (4) settlement of obligations under lease liabilities of Php14,328 million; (5) payment of short-term debt of Php1,022 million; (6) settlement of derivative financial instruments of Php243 million; and (7) payment for acquisition of investment in associates and joint ventures of Php186 million, mainly Smart’s investment in Dream Fearlessly Technologies, Inc. (DFTI). In 2024, we had (i) cash flows from operating activities amounting to Php81,731 million, (ii) proceeds from availment of long-term debt of Php37,000 million, (iii) proceeds from disposal of property of equipment of Php4,827 million, mainly comprising proceeds from the sale and leaseback of telecom towers, (iv) interest received of Php881 million, (v) collection of derivative financial instruments of Php704 million, and (vi) proceeds from redemption of investment in debt securities of Php200 million. These funds were used principally for: (1) the purchase of property and equipment, including capitalized interest, of Php68,257 million; (2) long-term debt principal and interest payments of Php12,059 million and Php10,740 million, respectively; (3) cash dividends paid of Php20,750 million; (4) settlement of obligations under lease liabilities of Php12,079 million; (5) payment for redemption of perpetual notes of Php4,200 million; (6) payment for acquisition of investment in associates and joint ventures of Php3,770 million, mainly PLDT's respective investments in Radius and Kayana, PCEV’s additional investment in MIH, and Smart’s investment in DFTI. In 2023, we had (i) cash flows from operating activities amounting to Php85,765 million, (ii) proceeds from availment of long-term debt of Php38,000 million, (iii) proceeds from disposal of property of equipment of Php23,971 million, mainly comprising proceeds from the sale and leaseback of telecom towers, and (iv) interest received of Php973 million and proceeds from maturity of short-term investments of Php440 million. These funds were used principally for: (1) the purchase of property and equipment, including capitalized interest, of Php78,435 million; (2) long-term debt principal and interest payments of Php22,611 million and Php9,715 million, respectively; (3) cash dividends paid of Php23,328 million; (4) payment of short-term debt of Php10,000 million; (5) settlement of obligations under lease liabilities of Php10,707 million; (6) payment for acquisition of investment in associates and joint ventures of Php1,636 million, mainly PCEV’s additional investment in MIH’s preferred shares; (7) settlement of derivative financial instruments of Php607 million; and (8) payment for purchase of short-term investments of Php449 million. Capital Expenditure Plans We are one of the leading telecommunications and digital services providers in the Philippines. We are committed to reinforcing our leading position by offering a broader range and higher quality products and services. Our consolidated capital expenditures, net of additions subject to sale and leaseback from tower companies, totaled Php60,336 million, Php78,246 million and Php85,083 million for the years ended December 31, 2025, 2024 and 2023, respectively. Our capex spending was primarily focused on Wireless LTE (4G) coverage and capacity expansion, and rollout of new sites and 5G base stations in key business areas and dense communities nationwide, and Fixed Line’s install, rollout, expansion and modernization of fiber optic transport network and backbone resiliency, and expansion of international submarine cable network. PLDT Group’s capital expenditures were financed from internally generated funds, complemented by our borrowings and proceeds from sale of assets. Our current estimate for our consolidated capital expenditures in 2026 will be in the mid-Php50 billion range, which is expected to be spent on network maintenance and expansion and IT projects, mainly to support the exponential rise in mobile data traffic, for broadband installations, and investments to support the growth of the corporate data and ICT businesses, including data centers. Our capital spending is focused on our objective of supporting the changing demand profile of our customers, allowing the delivery of a superior customer experience, and helping corporate customers to grow their businesses. We plan to expand our LTE network in line with our intention to expand capacity in step with the growth in customer usage, and our desire to provide coverage to substantially all of the country’s cities and municipalities. We are also heeding the government's call to expand telecommunications facilities to reach GIDAs. Furthermore, we are investing in building our 5G network to support an identified growth area in the mobile space. We intend to expand and upgrade our national and domestic transport network for cable fortification and resiliency in various locations. We continue to invest to expand capacity and improve resiliency of our international cable network which is critical in connecting the Philippines to the world. The design of our integrated network architecture optimizes the ability of PLDT to deliver diverse products and services offering to as wide a market as possible in the most cost-effective manner. We also plan to continue upgrading our IT and service delivery platforms in order to facilitate real-time, on demand and personalized customer experience across all touch points and channels. 71 Table of Contents Our capital expenditure budget includes projects addressing the following objectives: (1)Commercial expansion of capacity and footprint of our wired and wireless services, as well as new platforms to expand service offerings; (2)Technical modernization of the PLDT Group’s service delivery platform in order to realize operating and cost efficiencies, provision of greater resilience and redundancy for the network, and investments in additional cable systems; (3)Continuing investments to expand our LTE and 5G network coverage and capacity; (4)IT/Support Systems –upgrade of our IT and support systems, including investments to reinforce our cybersecurity platforms; and (5)Investments to support the growth of our corporate data and ICT businesses, including data centers. See also “- Contractual Obligations and Commercial Commitments.” We expect to fund incremental capital expenditures from internally generated funds and debt financing. We have adopted and implemented various operational enhancements to our policies, procedures and controls relating to our capital expenditure management processes, and we continue to review the same for any appropriate enhancements. Financing Requirements We believe that our available cash, including cash flows from operations, will provide sufficient liquidity to fund our projected operating, investment, capital expenditures and debt service requirements for the next 12 months and in the long-term. However, we may finance a portion of these costs from external sources if we consider it prudent to do so. See Note 27 – Financial Assets and Liabilities – Financial Risk Management Objectives and Policies to the accompanying consolidated financial statements in Item 18. “Financial Statements” for a detailed discussion on our financing requirements. Cash Flows from Operating Activities Our consolidated net cash flows provided by operating activities increased by Php17,007 million, or 21%, to Php98,738 million in 2025 from Php81,731 million in 2024 primarily due to lower level of settlement of accounts payable, higher level of collection of receivables and higher operating income, partially offset by higher pension and other employee benefits, and higher level of settlement of accrued expenses and other current liabilities. Our consolidated net cash flows provided by operating activities decreased by Php4,034 million, or 5%, to Php81,731 million in 2024 from Php85,765 million in 2023 primarily due to lower level of collection of receivables, higher level of settlement of accounts payable and accrued expenses and other current liabilities, and higher income taxes paid, partially offset by lower prepayments and higher operating income. Cash flows provided by operating activities of our Wireless business segment decreased by Php1,581 million, or 3%, to Php56,512 million in 2025 from Php58,093 million in 2024, primarily due to higher level of settlement of accrued expenses and other current liabilities and higher pension and other employee benefits, partially offset by lower level of settlement of accounts payable and higher level of collection of receivables. Cash flows provided by operating activities of our Fixed Line business segment increased by Php7,475 million, or 16%, to Php54,072 million in 2025 from Php46,597 million in 2024 primarily due to higher collection of receivables and lower level of settlement of accrued expenses and other current liabilities, partially offset by lower operating income. Cash flows used in operating activities of our Other business segment amounted to Php614 million in 2025 as against cash flows provided by operating activities of Php3,299 million in 2024 primarily due to higher level of settlement of accounts payable. Cash flows provided by operating activities of our Wireless business segment decreased by Php8,866 million, or 13%, to Php58,093 million in 2024 from Php66,959 million in 2023, primarily due to higher level of settlement of accounts payable, and accrued expenses and other current liabilities, and lower level of collection of receivables, partially offset by higher operating income and lower prepayments. Cash flows provided by operating activities of our Fixed Line business segment decreased by Php7,175 million, or 13%, to Php46,597 million in 2024 from Php53,772 million in 2023, primarily due to higher level of settlement of accounts payable, accrued expenses and other current liabilities, higher prepayments and lower level of collection of accounts receivables, partially offset by higher operating income. Cash flows provided by operating activities of our Other business segment amounted to Php3,299 million in 2024 as against cash flows used in operating activities of Php133 million in 2023, primarily due to higher level of collection of receivables and lower level of settlement of accounts payable. 72 Table of Contents Cash Flows Used in Investing Activities Our consolidated net cash flows used in investing activities amounted to Php60,979 million in 2025, a decrease of Php4,725 million, or 7%, from Php65,704 million in 2024, primarily due to the combined effects of the following: (1) lower payment for purchase of property and equipment, including capitalized interest, by Php5,393 million; (2) net proceeds from investments in associates and joint ventures of Php589 million in 2025 due to return of capital in investment in VTI and proceeds from disposal of AppCard Inc. shares, net of Smart’s additional investment in DFTI, as against payments for investments in associates and joint ventures of Php3,770 million in 2024, mainly PLDT’s respective investments in Radius and Kayana, PCEV’s additional investment in MIH and Smart's investment in DFTI; (3) lower proceeds from disposal of property and equipment by Php3,607 million, mainly lower proceeds from the sale and leaseback of telecom towers; (4) lower interest received by Php195 million; and (5) lower net proceeds from redemption of investment in debt securities by Php175 million. Our consolidated net cash flows used in investing activities amounted to Php65,704 million in 2024, an increase of Php10,586 million, or 19%, from Php55,118 million in 2023, primarily due to the combined effects of the following: (1) lower proceeds from disposal of property and equipment by Php19,144 million, mainly lower proceeds from the sale and leaseback of telecom towers; (2) higher payment for acquisition of investments in associates and joint ventures by Php2,134 million, mainly PLDT's respective investments in Radius and Kayana, PCEV's additional investment in MIH, and Smart’s investment in DFTI; (3) lower payment for purchase of property and equipment, including capitalized interest, by Php10,178 million; and (4) proceeds from redemption of investment in debt securities on Php200 million in 2024. Our consolidated payment for purchase of property and equipment, including capitalized interest, in 2025 totaled Php62,864 million, a decrease of Php5,393 million, or 8%, as compared with Php68,257 million in 2024. Smart’s payment for purchase of property and equipment, including capitalized interest, decreased by Php4,900 million, or 15%, to Php28,482 million in 2025 from Php33,382 million in 2024. PLDT’s payment for purchase of property and equipment, including capitalized interest, decreased by Php853 million, or 3%, to Php27,236 million in 2025 from Php28,089 million in 2024. The balance represents other subsidiaries’ capital spending. Our consolidated payment for purchase of property and equipment, including capitalized interest, in 2024 totaled Php68,257 million, a decrease of Php10,178 million, or 13%, as compared with Php78,435 million in 2023. Smart’s payment for purchase of property and equipment, including capitalized interest, decreased by Php8,701 million, or 21%, to Php33,382 million in 2024 from Php42,083 million in 2023. PLDT’s payment for purchase of property and equipment, including capitalized interest, decreased by Php4,727 million, or 14%, to Php28,089 million in 2024 from Php32,816 million in 2023. The balance represents other subsidiaries’ capital spending. As part of our growth strategy, we may from time to time, continue to make acquisitions and investments in companies or businesses. Cash Flows Used in Financing Activities On a consolidated basis, cash flows used in financing activities amounted to Php35,927 million in 2025, an increase of Php13,596 million, or 61%, from Php22,331 million in 2024, primarily due to the combined effects of the following: (1) higher payment of long-term debt by Php11,653 million; (2) higher interest paid by Php2,493 million; (3) higher settlement of obligations under capital lease by Php2,249 million; (4) settlements of derivative financial instruments of Php243 million in 2025 as against collections from derivative financial instruments of Php704 million in 2024; (5) lower proceeds from availment of long-term debt by Php850 million; and (6) payment for redemption of perpetual notes of Php4,200 million in 2024. On a consolidated basis, cash flows used in financing activities amounted to Php22,331 million in 2024, a decrease of Php17,087 million, or 43%, from Php39,418 million in 2023, primarily due to the combined effects of the following: (1) lower payment of long-term debt by Php10,552 million; (2) payment of short-term debt of Php10,000 million in 2023; (3) lower cash dividends paid by Php2,578 million; (4) collection from derivative financial instruments of Php704 million in 2024 as against settlement of Php607 million in 2023; (5) payment for redemption of perpetual notes of Php4,200 million in 2024; (6) higher settlement of obligations under lease liabilities by Php1,372 million; (7) higher interest paid by Php1,025 million; and (8) lower proceeds from availment of long-term debt by Php1,000 million. See Note 27 – Financial Assets and Liabilities – Financial Risk Management Objectives and Policies to the accompanying consolidated financial statements in Item 18. “Financial Statements” for a detailed discussion on our treasury policies and objectives in terms of the manner in which treasury activities are controlled. 73 Table of Contents Debt Financing Proceeds from availment of long-term and short-term debts for the year ended December 31, 2025 amounted to Php36,150 million and Php1,322 million, respectively, mainly from PLDT, Smart, Vitro and Multisys' drawings related to refinancing of maturing debt obligations and financing of capital expenditure requirements. Payments of principal on our long-term and short-term debts amounted to Php23,712 million and Php1,022 million, respectively, while payments of interest on our total debt amounted to Php13,223 million for the year ended December 31, 2025. Proceeds from availment of long-term debt for the year ended December 31, 2024 amounted to Php37,000 million mainly from PLDT, Smart and ePLDT’s drawings related to financing of capital expenditure requirements. Payments of principal on long-term debt amounted to Php12,059 million, while payments of interest on our total debt amounted to Php10,679 million for the year ended December 31, 2024. Proceeds from availment of long-term debt for the year ended December 31, 2023 amounted to Php38,000 million mainly from PLDT, Smart and ePLDT’s drawings related to financing of capital expenditure requirements. Payments of principal on long-term and short-term debts amounted to Php22,611 million and Php10,000 million, respectively, while payments of interest on our total debt amounted to Php9,596 million for the year ended December 31, 2023. Our consolidated long-term and short-term debts increased by Php13,462 million, or 5%, to Php295,048 million as at December 31, 2025 from Php281,586 million as at December 31, 2024 primarily due to drawings from our long-term facilities and the revaluation of foreign currency-denominated debt, partially offset by debt amortizations. As at December 31, 2025, PLDT’s long-term and short-term debt level increased by Php4,469 million, or 3%, to Php174,971 million from Php170,502 million as at December 31, 2024, Smart’s long-term and short-term debt level increased by Php3,654 million, or 4%, to Php107,147 million from Php103,493 million as at December 31, 2024, ePLDT's long-term debt level increased by Php5,039 million, or 66%, to Php12,630 million from Php7,591 million as at December 31, 2024, and Vitro's short-term debt of Php300 million as at December 31, 2025. Our consolidated long-term and short-term debts increased by Php26,788 million, or 11%, to Php281,586 million as at December 31, 2024 from Php254,798 million as at December 31, 2023 primarily due to drawings from our long-term facilities and the revaluation of foreign currency-denominated debt, partially offset by debt amortizations. As at December 31, 2024, PLDT’s long-term and short-term debt level increased by Php14,630 million, or 9%, to Php170,502 million from Php155,872 million as at December 31, 2023, Smart’s long-term and short-term debt level increased by Php9,531 million, or 10%, to Php103,493 million from Php93,962 million as at December 31, 2023, and Vitro's long-term debt level increased by Php2,627 million, or 53%, to Php7,591 million from Php4,964 million as at December 31, 2023. See Note 20 – Interest-bearing Financial Liabilities – Long-term Debt to the accompanying audited consolidated financial statements in Item 18. “Financial Statements” for a more detailed discussion of our long-term and short-term debts. Credit Ratings None of our existing indebtedness contains provisions under which credit rating downgrades would trigger a default, changes in applicable interest rates or other similar terms and conditions. As at February 25, 2026, PLDT maintained its investment grade credit ratings as follows: Rating Agency Credit Rating Moody’s Investors Service, or Moody’s Baa2 with stable outlook (most recently published on February 24, 2026) S&P Global (formerly Standard & Poor’s Ratings Services) BBB with stable outlook (most recently published on November 23, 2025) CRISP previously rated PLDT's retail peso bonds "AAA with stable outlook" and the credit rating agreement ended in 2024 following the full redemption of those bonds. Contractual Obligations and Commercial Commitments Various Trade and Other Obligations PLDT Group has various obligations to suppliers for the acquisition of phone and network equipment, contractors for services rendered on various projects, foreign administrations and domestic carriers for the access charges, shareholders for unpaid dividends distributions, employees for benefits and other related obligations, and various business and operational related agreements. Total obligations under these various agreements amounted to approximately Php116,304 million and Php133,811 million as at December 31, 2025 and 2024, respectively. See Note 22 – Accounts Payable and Note 23 – Accrued Expenses and Other Current Liabilities to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. 74 Table of Contents For a detailed discussion of our consolidated contractual undiscounted obligations as at December 31, 2025, see Note 27 – Financial Assets and Liabilities to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. Commercial Commitments Major Network Vendors Significant commitment in respect of major network vendors, net of advances and deliveries, amounted to about Php19,700 million and Php15,900 million as at December 31, 2025 and 2024, respectively. Other Capital Expenditure Vendors Commitments related to non-major capital expenditure vendors, net of advances and deliveries, amounted to Php16,900 million and Php11,200 million as at December 31, 2025 and 2024, respectively. We have no outstanding commercial commitments, in the form of letters of credit, as at December 31, 2025 and 2024. C. Research and development, patents and licenses, etc. See Item 4. “Information on the Company – Business Overview – Intellectual Property Rights”. D. Trend Information Please refer to Item 5. “Operating and Financial Review and Prospects — A. Operating Results” for a discussion of the most recent trends in our services, sales and expenses. In addition, please refer to Item 3. “Key Information,” Item 4. “Information on the Company,” and Item 11. “Quantitative and Qualitative Disclosures About Market Risk” for a discussion of known trends, uncertainties, demands, commitments or events that we believe are reasonably likely to have a material effect on our net sales or revenues, income from continuing operations, profitability, liquidity or capital resources, or that would cause the disclosed financial information to be not necessarily indicative of future results of operations or financial conditions. E. Critical Accounting Estimates The preparation of our consolidated financial statements in conformity with IFRS Accounting Standards requires us to make judgments, estimates and assumptions that affect the reported amounts of our revenues, expenses, assets and liabilities and disclosure of contingent liabilities at the end of each reporting period. The uncertainties inherent in these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the assets or liabilities affected in the future year. Judgments and estimates are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Judgments, key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period are consistent with those applied in the most recent annual financial statements. Selected critical judgments and estimates applied in the preparation of the consolidated financial statements are discussed below: Judgments In the process of applying our accounting policies, management has made judgments, apart from those involving estimations which have the most significant effect on the amounts recognized in our consolidated financial statements. Revenue Recognition Identifying performance obligations We identify performance obligations by considering whether the promised goods or services in the contract are distinct goods or services. A good or service is distinct when the customer can benefit from the good or service on its own or together with other resources that are readily available to the customer and our promise to transfer the good or service to the customer is separately identifiable from the other promises in the contract. 75 Table of Contents Revenues earned from multiple-deliverable arrangements offered by our fixed line and wireless businesses are split into separate identifiable performance obligations based on their relative stand-alone selling price in order to reflect the substance of the transaction. The transaction price represents the best evidence of stand-alone selling price for the services we offer since this is the observable price we charge if our services are sold separately. We account for customer contracts in accordance with IFRS 15 and have concluded that the service (telecommunication service) and non-service components (handset or equipment) may be accounted for as separate performance obligations. The handset or equipment is delivered first, followed by the telecommunication service (which is provided over the contract/lock-in period of two to three years). Revenues attributable to the separate performance obligations are based on the allocation of the transaction price relative to the stand-alone selling price. Installation fees for voice and data services that are not custom-built for the subscribers are considered as a single performance obligation together with monthly service fees, recognized over the estimated average customer relationship period since the subscriber cannot benefit from the installation services on its own or together with other resources that are readily available to the subscriber. On the other hand, installation fees of data services that are custom-built for the subscribers are considered as a separate performance obligation and is recognized upon completion of the installation services. Activation fees for both voice and data services are also considered as a single performance obligation together with monthly service fees, recognized over the estimated average customer relationship period. Principal versus agent consideration We enter into contracts with our customers involving multiple deliverable arrangements. We determined that we control the goods before they are transferred to customers, and we can direct the use of the inventory. The following factors indicate that we control the goods before they are being transferred to customers: a)We are primarily responsible for fulfilling the promise to provide the specified equipment; b)We bear inventory risk on our inventory before it has been transferred to the customer; and c)We have discretion in establishing the prices for the other party’s goods or services and, therefore, the benefit that we can receive from those goods or services is not limited. It is incumbent upon us to establish the price of our services to be offered to our subscribers. Based on the foregoing, we are considered the principal in our contracts with other service providers except for certain VAS arrangements. We have a primary obligation to provide the services to the subscriber. Timing of revenue recognition We recognize revenues from contracts with customers over time or at a point in time depending on our evaluation of when the customer obtains control of the promised goods or services and based on the extent of progress towards completion of the performance obligation. For the telecommunication service which is provided over the contract period of two or more years, revenue is recognized monthly as we provide the service because control is transferred over time. For the device, which is sold at the inception of the contract, revenue is recognized at the time of delivery because control is transferred at a point in time. Identifying methods for measuring progress of revenue recognized over time We determine the appropriate method of measuring progress which is either using input or output methods. Input method recognizes revenue based on the entity’s efforts or inputs to the satisfaction of a performance obligation while output method recognizes revenue based on direct measurements of the value to the customer of the goods or services transferred to date. Revenue from telecommunication services is recognized using input method wherein recognition is over time based on the customer subscription period since the customer simultaneously receives and consumes the benefits as the seller renders the services. Significant financing component We concluded that the handset component included in contracts with customers has a significant financing component considering the period between the time of the transfer of control over the handset and the customer’s payment of the price of the handset, which is more than one year. In determining the interest to be applied to the amount of consideration, we concluded that the interest rate is the market interest rate adjusted with credit spread to reflect the customer credit risk that is commensurate with the rate that would be reflected in a separate financing transaction between us and our customer at contract inception. 76 Table of Contents Estimation of stand-alone selling price We assessed that the service and non-service components represent separate performance obligations. Thus, the amount of revenues should be recognized based on the allocation of the transaction price to the different performance obligations based on their stand-alone selling prices. The stand-alone selling price is the price at which we sell the goods or services separately to a customer. However, if goods or services are not currently offered separately, we use the adjusted market or cost-plus margin method to determine the stand-alone selling price to be used in the revenue allocation. Financial Instruments Evaluation of business models in managing financial instruments We determine our business model at the level that best reflects how we manage groups of financial assets to achieve our business objectives. Our business model is not assessed on an instrument-by-instrument basis, but on a higher level of aggregated portfolios and is based on observable factors such as: a.How the performance of the business model and the financial assets held within that business model are evaluated and reported to the entity’s key management personnel; 2.The risks that affect the performance of the business model (and the financial assets held within that business model) and, in particular, the way those risks are managed; and 3.The expected frequency, value and timing of sales are also important aspects of our assessment. The business model assessment is based on reasonably expected scenarios without taking ‘worst case’ or ‘stress case’ scenarios into account. If cash flows after initial recognition are realized in a way that is different from our original expectations, we do not change the classification of the remaining financial assets held in that business model but incorporates such information when assessing newly originated or newly purchased financial assets going forward. We have determined that for cash and cash equivalents, short-term investments, investment in debt securities and other long-term investments, and trade and other receivables, the business model is to collect the contractual cash flows until maturity. IFRS 9, however, emphasizes that if more than an infrequent number of sales are made out of a portfolio and those sales are more than insignificant in value, of financial assets carried at amortized cost, we should assess whether and how such sales are consistent with the objective of collecting contractual cash flows. Definition of default and credit-impaired financial assets We define a financial instrument as in default, which is fully aligned with the definition of credit-impaired, when it meets one or more of the following criteria: •Quantitative criteria For trade receivables and all other financial assets subject to impairment, default occurs when the receivable becomes 90 days past due, except for trade receivables from corporate subscribers, which are determined to be in default when the receivables become 120 days past due. •Qualitative criteria The counterparty meets unlikeliness to pay criteria, which indicates the counterparty is in significant financial difficulty. These are instances where: 1.The counterparty is experiencing financial difficulty or is insolvent; 2.The counterparty is in breach of financial covenant(s); 3.An active market for that financial asset has disappeared because of financial difficulties; 4.Concessions have been granted by us, for economic or contractual reasons relating to the counterparty’s financial difficulty; 5.It is becoming probable that the counterparty will enter bankruptcy or other financial reorganization; and 6.Financial assets are purchased or originated at a deep discount that reflects the credit losses incurred. The criteria above have been applied to all financial instruments, except FVPL, held by us and are consistent with the definition of default used for internal credit risk management purposes. The default definition has been applied consistently to the ECL models throughout our expected loss calculation. 77 Table of Contents Significant increase in credit risk At each reporting date, we assess whether there has been a significant increase in credit risk for financial assets since initial recognition by comparing the risk of default occurring over the expected life between the reporting date and the date of initial recognition. We consider reasonable and supportable information that is relevant and available without undue cost or effort for this purpose. This includes quantitative and qualitative information and forward-looking analysis. An exposure will migrate through the ECL stages as asset quality deteriorates. If, in a subsequent period, asset quality improves and also reverses any previously assessed significant increase in credit risk since origination, then the loss allowance measurement reverts from lifetime ECL to 12-month ECL. Using our judgment and, where possible, relevant historical experience, we may determine that an exposure has undergone a significant increase in credit risk based on particular qualitative indicators that we consider are indicative of such and whose effect may not otherwise be fully reflected in its quantitative analysis on a timely basis. As a backstop, we consider that a significant increase in credit risk occurs no later than when an asset is more than 30 days past due. Days past due are determined by counting the number of days since the earliest due date elapsed in respect of which full payment has not been received. Due dates are determined without considering any grace period that might be available to the counterparty. Exposures that have not deteriorated significantly since their origination, or where the deterioration remains within our investment grade criteria, or which are less than 30 days past due, are considered to have a low credit risk. The provision for credit losses for these financial assets is based on a 12-month ECL. The low credit risk exemption has been applied on debt investments that meet the investment grade criteria of the PLDT Group. Determining the lease term of contracts with renewal and termination options – Company as a Lessee We apply a single recognition and measurement approach for all leases, except for short-term leases and leases of ‘low-value’ assets. See Section Leases for the accounting policy. We determine the lease term as the non-cancellable term of the lease, together with any period covered by an option to extend the lease if it is reasonably certain to be exercised, or any period covered by an option to terminate the lease, if it is reasonably certain not to be exercised. We, as the lessee, have the option under some of our lease agreements to lease the assets for additional terms. We apply judgment in evaluating whether it is reasonably certain to exercise the option to renew. That is, we consider all relevant factors that create an economic incentive for us to exercise the renewal. After the commencement date, we reassess the lease term if there is a significant event or change in circumstances that is within our control and affects our ability to exercise or not to exercise the option to renew or to terminate (e.g., a change in business strategy). We included the renewal period as part of the lease term for leases such as sites, leased circuits and poles due to the significance of these assets to our operations. These leases have a non-cancellable period (i.e., one to 30 years) and there will be a significant negative effect on our provision of services if a replacement is not readily available. Furthermore, the periods covered by termination options are included as part of the lease term only when they are reasonably certain not to be exercised. See Note 10 – Leases to the accompanying audited consolidated financial statements in Item 18. “Financial Statements” for information on potential future payments relating to periods following the exercise date of extension and termination options that are not included in the lease term. Sale and Leaseback of Telecom Towers The accounting for sale and leaseback transaction depends on whether the transfer of the asset qualifies as a sale. We applied judgment to determine whether the transfer of asset is accounted for as a sale based on the requirements for determining when a performance obligation is satisfied in IFRS 15. We also applied estimates and judgment in determining many aspects, among others, the passive telecom assets and land lease as unit of accounts, the fair value of the towers sold, the measurement of the ROU assets retained by us and determining an appropriate discount rate to calculate the present value of the minimum lease payments. Assets classified as held-for-sale The criteria for held-for-sale classification are regarded as met only when the sale is highly probable, and the asset is available for immediate sale in its present condition. Actions required to complete the sale should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will be withdrawn. 78 Table of Contents Smart and DMPI entered into sale and purchase agreements with certain tower companies in connection with the sale of telecom towers and related passive telecom infrastructure. The closing of the agreements is on a staggered basis depending on the satisfaction of closing conditions based on the number of towers transferred. Following the completion of the initial transaction with tower companies, Smart and DMPI plan to proceed with the sale of additional telecom towers and related passive infrastructure within a year. With these agreements, we believe that certain conditions were met that qualified the related assets to be reclassified as held-for-sale. See related discussion in Note 9 – Property and Equipment and Note 10 – Leases to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. Accounting for investments in MediaQuest Holdings, Inc., or MediaQuest, through Philippine Depositary Receipts, or PDRs ePLDT made various investments in PDRs issued by MediaQuest in relation to its direct interest in Satventures, Inc., or Satventures, and indirect interest in Cignal TV, Inc., or Cignal TV. Based on our judgment, at the PLDT Group level, ePLDT’s investments in PDRs gives ePLDT a significant influence over Satventures and Cignal TV as evidenced by provision of essential technical information and material transactions among PLDT, Smart, Satventures and Cignal TV, and thus are accounted for as investments in associates using the equity method. See related discussion in Note 11 – Investments in Associates and Joint Ventures – Investments in Associates – Investment of ePLDT in MediaQuest PDRs to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. Accounting for investment of PCEV in Maya Bank, Inc., or Maya Bank The shareholders’ agreement of Voyager Finserve Corporation, or VFC, and Paymaya Finserve Corporation, or PFC, (collectively known as the Bank HoldCos) requires affirmative vote of at least one director nominated by both PCEV and MIH to direct the relevant activities of the Bank HoldCos. The Bank HoldCos were incorporated for the sole purpose of holding shares or equity investments in Maya Bank. Because of the contractual arrangement between the parties, the investments in the Bank HoldCos are accounted for as joint venture. Accounting for investments in Vega Telecom Inc., or VTI, Bow Arken Holdings Company, or Bow Arken, and Brightshare Holdings, Inc., or Brightshare PLDT acquired a 50% equity interest in each of VTI, Bow Arken and Brightshare on May 30, 2016. Based on the Memorandum of Agreement, PLDT and Globe Telecom, Inc., or Globe, each has the right to appoint half the members of the Board of Directors of each of VTI, Bow Arken and Brightshare, as well as the (i) co-Chairman of the Board; (ii) co-Chief Executive Officer and President; and (iii) co-Controller where any matter requiring their approval shall be deemed passed or approved if the consents of both co-officers holding the same position are obtained. All decisions of each Board of Directors may only be approved if at least one director nominated by each of PLDT and Globe votes in favor of it. Based on these rights, PLDT and Globe have joint control over VTI, Bow Arken and Brightshare, which is defined in IFRS 11, Joint Arrangements, as a contractually agreed sharing of control of an arrangement and exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. Consequently, PLDT and Globe classified the joint arrangement as a joint venture in accordance with IFRS 11 given that PLDT and Globe each has the right to 50% of the net assets of VTI, Bow Arken and Brightshare and their respective subsidiaries. Accordingly, PLDT accounted for the investment in VTI, Bow Arken and Brightshare using the equity method of accounting in accordance with IAS 28. Under the equity method of accounting, the investment is initially recognized at cost and adjusted thereafter for the post-acquisition change in the investor’s share of the investee’s net assets. See Note 11 – Investments in Associates and Joint Ventures – Investment in Joint Ventures – Investments of PLDT in VTI, Bow Arken and Brightshare to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. Material partly-owned subsidiaries Our consolidated financial statements include additional information about subsidiaries that have non-controlling interest, or NCI, that are material to us. See Note 6 – Components of Other Comprehensive Loss to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. We determined material partly-owned subsidiaries as those with balance of NCI greater than 5% of the total equity as at December 31, 2025 and 2024. 79 Table of Contents Material associates and joint ventures Our consolidated financial statements include additional information about associates and joint ventures that are material to us. See Note 11 – Investments in Associates and Joint Ventures to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. We determined material associates and joint ventures are those investees where our carrying amount of investments is greater than 5% of the total investments in associates and joint ventures as at December 31, 2025 and 2024. Determining Taxable Profit, Tax Bases, Unused Tax Losses, Unused Tax Credits and Tax Rates We assess whether we have any uncertain tax position and apply significant judgment in identifying uncertainties over our income tax treatments. We determined based on our assessment that it is probable that our income tax treatments (including those for the subsidiaries) will be accepted by the taxation authorities. Estimates and Assumptions The key estimates and assumptions concerning the future and other key sources of estimation uncertainty at the end of the reporting period that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities recognized in our consolidated financial statements within the next financial year are discussed below. We based our estimates and assumptions on parameters available when our consolidated financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond our control. Such changes are reflected in the assumptions when they occur. Subscriber contract costs Subscriber contract costs are costs to obtain (i.e., commissions) and costs to fulfill (i.e., installation and CPE costs) in relation to the services we provide to our subscribers. We assessed that these subscriber contract costs are incremental in obtaining and fulfilling our performance obligations. Accordingly, we capitalized subscriber contract costs and amortized as expense over the average customer relationship period. We apply judgment to estimate the amortization period of subscriber contract costs. As at December 31, 2025 and 2024, the estimated useful lives of the subscriber contract costs would range from six to seven years. Further details on subscriber contract costs are disclosed in Note 18 – Prepayments and Other Non-Financial Assets to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. Leases – Estimating the incremental borrowing rate, or IBR In calculating the present value of lease payments, we use the IBR at the lease commencement date if the interest rate implicit in the lease is not readily determinable. IBR is the rate of interest that a lessee would have to pay to borrow over a similar term, similar security, the funds necessary to obtain an asset of a similar value to the ROU asset in a similar economic environment. We use benchmark rates from partner banks based on the tenor of our loan borrowings plus a spread adjustment based on our credit worthiness. See Note 10 – Leases to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. Impairment of non-financial assets IAS 36 requires that an impairment review be performed when certain impairment indicators are present. In the case of goodwill and intangible assets with indefinite useful life, at a minimum, such assets are subject to an impairment test annually and whenever there is an indication that such assets may be impaired. This requires an estimation of the VIU of the CGUs to which these assets are allocated. The VIU calculation requires us to make an estimate of the expected future cash flows from the CGU and to choose a suitable discount rate in order to calculate the present value of those cash flows. See Note 14 – Goodwill and Intangible Assets – Impairment Testing of Goodwill to the accompanying audited consolidated financial statements in Item 18. “Financial Statements” for the key assumptions used to determine the VIU of the relevant CGUs. Determining the recoverable amount of property and equipment, ROU assets, investments in associates and joint ventures, goodwill and intangible assets, prepayments and other noncurrent assets, requires us to make estimates and assumptions in the determination of future cash flows expected to be generated from the continued use and ultimate disposition of such assets. Future events could cause us to conclude that property and equipment, ROU assets, investments in associates and joint 80 Table of Contents ventures, goodwill and intangible assets, and prepayments and other noncurrent assets associated with an acquired business are impaired. Any resulting impairment loss could have a material adverse impact on our financial position and financial performance. The preparation of estimated future cash flows involves significant estimations and assumptions of future market conditions. While we believe that our assumptions are appropriate and reasonable, significant changes in our assumptions may materially affect our assessment of recoverable values and may lead to future impairment charges. See Note 4 – Operating Segment Information, Note 5 – Income and Expenses – Asset Impairment, and Note 9 – Property and Equipment to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. The carrying values of our property and equipment, ROU assets, investments in associates and joint ventures, goodwill and intangible assets, and prepayments and other non-financial assets are separately disclosed in Note 9 – Property and Equipment, Note 10 – Leases, Note 11 – Investments in Associates and Joint Ventures, Note 14 – Goodwill and Intangible Assets and Note 18 – Prepayments and Other Non-Financial Assets, respectively, to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. Estimating useful lives of property and equipment We estimate the useful lives of each item of our property and equipment based on the periods over which our assets are expected to be available for use. Our estimation of the useful lives of our property and equipment is also based on our collective assessment of industry practice, internal technical evaluation and experience with similar assets. The estimated useful lives of each asset are reviewed at least every year-end and updated if expectations differ from previous estimates due to physical wear and tear, technical or commercial obsolescence and legal or other limitations on the use of our assets. It is possible, however, that future results of operations could be materially affected by changes in our estimates brought about by changes in the factors mentioned above. The amounts and timing of recorded expenses for any period would be affected by changes in these factors and circumstances. A reduction in the estimated useful lives of our property and equipment would increase our recorded depreciation and decrease the carrying amount of our property and equipment. In 2023, PLDT and Smart increased the EUL of Information Technology assets and general computers and peripherals, due to technological advancement allowing extended warranty and Maintenance Agreement. Smart increased the EUL of Self-Supporting Towers due to cost-effective structure which allows future expansion and upgrades of mounting antennas and is designed for durability and resistance to withstand the elements, hence extending the vendor's warranty. Had the affected assets been depreciated using the original EUL, the depreciation would have been higher by Php934 million for the year 2023. In 2024, the PLDT Group launched further initiatives to continuously modernize its property and equipment to enhance operational efficiencies. On this basis, the Group reassessed the EUL of certain assets, including among others, certain legacy network systems replaced by Transport Network Transformation (TNT) and Core Transformation, Operations Support Systems and Optical Line and Terminal Access equipment. As a result of changes in accounting estimates, the PLDT Group recognized additional depreciation expense of Php5,686 million in the income statement for the year ended December 31, 2024. In 2025, based on the internal technical evaluation and assessment of industry practice, PLDT reassessed the EUL of International and Domestic submarine cable systems from 15 years to 25 years, resulting in a reduction in depreciation expense amounting to Php748 million for the year ended December 31, 2025. Conversely, the EUL of certain submarine network cables decreased due to aging and performance issues, resulting in additional depreciation expense of Php237 million. PLDT and Smart also recognized additional depreciation expense amounting to Php744 million and Php5,560 million respectively, in 2025, due to modernization of core network equipment and IT assets. In addition, Smart recognized additional depreciation expense of Php215 million upon the expiration of its lease during the year and the consequent termination of use of and move out from the related office premises. Overall, the total depreciation and amortization of property and equipment from continuing operations amounted to Php41,881 million, Php41,224 million and Php51,543 million for the years ended December 31, 2025, 2024 and 2023, respectively, while that from discontinued operations amounted to nil for the years ended December 31, 2025 and 2024, and Php2 million for the year ended December 31, 2023. Total carrying values of property and equipment, net of accumulated depreciation and amortization, amounted to Php327,989 million and Php318,069 million as at December 31, 2025 and 2024, respectively. See Note 4 – Operating Segment Information and Note 9 – Property and Equipment to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. Investment Properties We carry our investment properties at fair value, with changes in fair value being recognized in the consolidated income statements and in other comprehensive income for transfers from owner-occupied property to investment property. The fair 81 Table of Contents values of the investment properties have been determined based on appraisal performed by independent firms of appraisers, industry specialists in valuing these types of investment properties. The valuation for land is based on a market approach valuation technique while the valuation for building and land improvements is based on a cost approach valuation technique using current material and labor costs for improvements based on external and independent reviewers. See Note 13 – Investment Properties to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. Recognition of deferred income tax assets We review the carrying amounts of deferred income tax assets at the end of each reporting period and reduce these to the extent that these are no longer probable that sufficient taxable income will be available to allow all or part of the deferred income tax assets to be utilized. Our assessment on the recognition of deferred income tax assets on deductible temporary differences is based on the level and timing of forecasted taxable income of the subsequent reporting years. This forecast is based on our past results and future expectations on revenues and expenses as well as future tax planning strategies. Based on this, management expects that we will generate sufficient taxable income to allow all or part of our deferred income tax assets to be utilized. Based on the above assessment, our consolidated unrecognized deferred income tax assets amounted to Php934 million and Php803 million as at December 31, 2025 and 2024, respectively. Total consolidated provision for deferred income tax amounted to Php3,710 million, Php3,401 million and Php1,206 million for the years ended December 31, 2025, 2024 and 2023, respectively. Total consolidated recognized net deferred income tax assets amounted to Php11,582 million and Php14,643 million as at December 31, 2025 and 2024, respectively. See Note 4 – Operating Segment Information and Note 7 – Income Taxes to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. Estimating allowance for ECLs a)Measurement of ECLs ECLs are derived from unbiased and probability-weighted estimates of expected loss, and are measured as follows: •Financial assets that are not credit-impaired at the reporting date: as the present value of all cash shortfalls over the expected life of the financial asset discounted by the EIR. The cash shortfall is the difference between the cash flows due to us in accordance with the contract and the cash flows that we expect to receive; and •Financial assets that are credit-impaired at the reporting date: as the difference between the gross carrying amount and the present value of estimated future cash flows discounted by the EIR. We leverage existing risk management indicators (e.g., internal credit risk classification and restructuring triggers), credit risk rating changes and reasonable and supportable information which allow us to identify whether the credit risk of financial assets has significantly increased. b)Inputs, assumptions and estimation techniques •General approach for cash and cash equivalents, short-term investments, debt securities, and advances and other noncurrent assets The ECL is measured on either a 12-month or lifetime basis depending on whether a significant increase in credit risk has occurred since initial recognition. We consider the probability of our counterparty to default on its obligation and the expected loss at default after considering the effects of collateral, any potential value when realized and time value of money. Based on our assessment, there is no significant increase in credit risk and the ECL for these financial assets under a general approach is measured on a 12-month basis. The assumptions underlying the ECL calculation are monitored and reviewed on a quarterly basis. •Simplified approach for trade and other receivables and contract assets The simplified approach does not require the tracking of changes in credit risk but instead requires the recognition of lifetime ECL. For trade receivables and contract assets, we use the simplified approach for calculating ECL. We have considered similarities in underlying credit risk characteristics and behavior in determining the groupings of various customer segments. We used historically observed default rates and adjusted these historical credit loss experiences with forward-looking information. At every reporting date, the historical default rates are updated and changes in the forward-looking estimates are analyzed. 82 Table of Contents There have been no significant changes in the estimation techniques used for calculating ECL on trade and other receivables and contract assets. •Incorporation of forward-looking information We incorporated forward-looking information into both our assessment of whether the credit risk of an instrument has increased significantly since its initial recognition and our measurement of ECL. To do this, management considered a range of relevant forward-looking macroeconomic assumptions and probability weights for the determination of unbiased general industry adjustments and any related specific industry adjustments that support the calculation of ECLs. The macroeconomic factors are aligned with information used by us for other purposes such as strategic planning and budgeting. The probability weights used in the calculation of ECLs cover a range of possible outcomes based on the current and projected economic conditions. We have identified and documented key drivers of credit risk and credit losses of each portfolio of financial instruments and, using an analysis of historical data, has estimated relationships between macroeconomic variables and credit risk and credit losses. Predicted relationship between the key indicators and default and loss rates on various portfolios of financial assets have been developed based on analyzing historical data over the past three to eight years. The methodologies and assumptions, including any forecasts of future economic conditions are reviewed regularly. Due to lack of reasonable and supportable information, we have not identified any uncertain event that was assessed to be relevant to the risk of default occurring, thus we are not able to estimate the impact on ECL. Total provision for expected credit losses for trade and other receivables from continuing operations amounted to Php3,838 million, Php3,875 million and Php4,119 million for the years ended December 31, 2025, 2024 and 2023, respectively, while that from discontinued operations amounted to nil for the years ended December 31, 2025 and 2024, and Php4 million for the year ended December 31, 2023. Trade and other receivables, net of allowance for expected credit losses, amounted to Php31,367 million and Php31,612 million as at December 31, 2025 and 2024, respectively. See Note 5 – Income and Expenses and Note 16 – Trade and Other Receivables to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. Total impairment losses on contract assets amounted to Php101 million, Php181 million and Php224 million for the years ended December 31, 2025, 2024 and 2023, respectively. Contract assets, net of allowance for expected credit losses, amounted to Php1,487 million and Php1,886 million as at December 31, 2025 and 2024, respectively. See Note 5 – Income and Expenses – Contract Balances to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. •Grouping of instruments for losses measured on collective basis A broad range of forward-looking information was considered as economic inputs such as the gross domestic product, or GDP, inflation rate, unemployment rates, export rates, The Group of Twenty, or G20 GDP and G20 inflation rates. For expected credit loss provisions modelled on a collective basis, grouping of exposures is performed on the basis of shared risk characteristics, such that risk exposures within a group are homogeneous. In performing this grouping, there must be sufficient information for the PLDT Group to be statistically acceptable. Where sufficient information is not available internally, then we have considered benchmarking internal/external supplementary data to use for modelling purposes. The characteristics and any supplementary data used to determine groupings are outlined below. Trade receivables – Groupings for collective measurement a)Retail subscribers; b)Corporate subscribers; c)Foreign administrations and domestic carriers; and d)Dealers, agents and others. The following credit exposures are assessed individually: •All stage 3 assets, regardless of the class of financial assets; and •The cash and cash equivalents, short term investments, investment in debt securities and other financial assets. 83 Table of Contents Estimating pension benefit costs and other employee benefits The cost of defined benefit and present value of the pension obligation are determined using the projected unit credit method. An actuarial valuation includes making various assumptions which consist, among other things, discount rates, rates of compensation increases and mortality rates. Further, our accrued benefit cost is affected by the fair value of the plan assets. Key assumptions used to estimate fair value of the unlisted equity investments included in the plan assets consist of revenue growth rate, direct costs, capital expenditures, discount rates and terminal growth rates. See Note 25 – Pension and Other Employee Benefits. Due to complexity of valuation, the underlying assumptions and its long-term nature, a defined benefit obligation is highly sensitive to changes in assumptions. While we believe that our assumptions are reasonable and appropriate, significant differences in our actual experience or significant changes in our assumptions may materially affect our cost for pension and other retirement obligations. All assumptions are reviewed every year-end. The net consolidated pension benefit costs amounted to Php1,434 million, Php1,441 million and Php1,426 million for the years ended December 31, 2025, 2024 and 2023, respectively. The prepaid benefit costs amounted to Php810 million and Php975 million as at December 31, 2025 and 2024, respectively. The accrued benefit costs amounted to Php3,810 million and Php3,548 million as at December 31, 2025 and 2024, respectively. See Note 5 – Income and Expenses – Compensation and Employee Benefits, Note 18 – Prepayments and Note 25 – Pension and Other Employee Benefits to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. Long-term Incentive Plan, LTIP The Executive Compensation Committee (ECC) of the PLDT Board of Directors approved the LTIP covering the years 2022 to 2026, on December 23, 2021. It covers two cycles and is intended to provide incentive compensation in the form of cash to key officers, executives and other eligible participants who are consistent performers, compliant with codes of conduct and contributors to our strategic and financial goals, with defined metrics based on the achievement of telco core income, customer experience and sustainability. The target metrics for sustainability are expected to capture the Company’s performance in various ESG materiality areas, including but not limited to, climate action such as initiatives to reduce energy consumption and greenhouse gas (GHG) emissions, employee and customer welfare, diversity and inclusion, cybersecurity and data privacy, and business ethics. Cycle 1 covered the performance period from 2022 to 2024 and was settled in 2025 based on the achievement of performance targets. Cycle 2, which is intended to cover the performance period from 2025 to 2026, is still subject to the ECC’s evaluation. Accordingly, the expense accrued for the LTIP for the year ended December 31, 2025 amounted to nil. The expense accrued for the years ended December 31, 2024 and 2023 amounted to Php1,136 million and Php839 million, respectively. The accrued incentive payable amounted to nil and Php3,406 million as at December 31, 2025 and 2024, respectively. See Note 5 – Income and Expenses – Compensation and Employee Benefits and Note 25 – Pension and Other Employee Benefits – Other Long-term Employee Benefits to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. Provision for asset retirement obligations Provision for asset retirement obligations is recognized in the period in which this is incurred if a reasonable estimate can be made. This requires an estimation of the cost to restore or dismantle on a per square meter basis, depending on the location, and is based on the best estimate of the expenditure required to settle the obligation at the future restoration or dismantlement date, discounted using a pre-tax rate that reflects the current market assessment of the time value of money and, where appropriate, the risk specific to the liability. Total provision for asset retirement obligations amounted to Php1,836 million and Php1,752 million as at December 31, 2025 and 2024, respectively. See Note 21 – Deferred Credits and Other Noncurrent Liabilities to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. Provision for legal contingencies and tax assessments We are currently involved in various legal proceedings and tax assessments. Our estimates of the probable costs for the resolution of these claims have been developed in consultation with our counsel handling the defense in these matters and are based upon our analysis of potential results. Based on management’s assessment, appropriate provisions were made. We currently do not believe these proceedings could materially reduce our revenues and profitability. It is possible, however, that future financial position and performance could be materially affected by changes in our estimates or the effectiveness of our strategies relating to these proceedings and assessments. See Note 26 – Provisions and Contingencies to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. Determination of fair values of financial assets and financial liabilities When the fair value of financial assets and financial liabilities recorded in our consolidated statements of financial position cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the discounted cash flows model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. The judgments include considerations of inputs such as 84 Table of Contents liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments. Other than those whose carrying amounts are reasonable approximations of fair values, total fair values of noncurrent financial assets and noncurrent financial liabilities as at December 31, 2025 amounted to Php3,322 million and Php274,220 million, respectively, while the total fair values of noncurrent financial assets and noncurrent financial liabilities as at December 31, 2024 amounted to Php3,079 million and Php247,962 million, respectively. See Note 27 – Financial Assets and Liabilities to the accompanying audited consolidated financial statements in Item 18. “Financial Statements”. Amended Accounting Standards and Interpretations to Existing Standards Effective Subsequent to December 31, 2025 See Note 2 – Summary of Material Accounting Policies to the accompanying audited consolidated financial statements in Item 18. “Financial Statements” for the discussion of new accounting standards that will become effective subsequent to December 31, 2025 and their anticipated impact on our consolidated financial statements for the current and future periods. 85 Table of Contents