Core Insights - T-Mobile US Inc. reported strong second-quarter results, exceeding analyst expectations for new contract subscribers and revenue growth [1][2] - The company is actively expanding its market presence through aggressive marketing strategies and new service offerings [2][3] - T-Mobile has raised its full-year performance guidance, anticipating significant user growth and improved cash flow [3] Group 1: Financial Performance - T-Mobile added 830,000 contract subscribers in the second quarter, surpassing Wall Street's expectation of 714,000 [1] - Service revenue grew by 6% year-over-year to $17.4 billion, slightly above market expectations [1] - Total revenue reached $21.13 billion, marginally exceeding analyst forecasts of $21.02 billion, with diluted earnings per share rising 14% to $2.84, outperforming the expected $2.69 [1] Group 2: Market Strategy - T-Mobile is leveraging aggressive marketing and value-added services to enhance its competitive edge in the telecom market [2] - The company launched new pricing plans and a five-year price guarantee to attract price-sensitive customers [2] - T-Mobile is expanding into the home broadband market, adding 454,000 high-speed internet users, exceeding the market expectation of 416,000 [2] Group 3: Future Outlook - T-Mobile has raised its full-year guidance, expecting to add hundreds of thousands of users and increase free cash flow and EBITDA [3] - The company plans to develop at least 100,000 users through its fiber service by the end of the year [3] - A partnership with Comcast and Charter Communications will allow T-Mobile to provide mobile services based on its network, targeting the underdeveloped small and medium-sized business market [3]

Group 1 - T-Mobile reported quarterly earnings of $2.84 per share, exceeding the Zacks Consensus Estimate of $2.69 per share, and up from $2.49 per share a year ago, representing an earnings surprise of +5.58% [1][2] - The company achieved revenues of $21.13 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.77%, and an increase from $19.77 billion year-over-year [2] - T-Mobile has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2][6] Group 2 - The stock's immediate price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - T-Mobile shares have increased approximately 5.7% since the beginning of the year, compared to a 7.3% gain for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $2.75 on revenues of $21.41 billion, and for the current fiscal year, it is $10.59 on revenues of $86.38 billion [7] Group 3 - The Zacks Industry Rank indicates that the Wireless National industry is currently in the bottom 28% of over 250 Zacks industries, which may impact T-Mobile's stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - Postpaid service revenues grew by 9% year over year, accelerating from Q1, while total service revenues increased by 6%, significantly outpacing closest competitors [19][24] - Core adjusted EBITDA growth was 6% year over year, with adjusted free cash flow reaching $4.6 billion, setting a new Q2 record and translating to an industry-leading adjusted free cash flow conversion from service revenues of 26% [19][24] Business Line Data and Key Metrics Changes - The business group achieved record growth, leading the industry in net additions, with postpaid account nets accelerating year over year [5][7] - The launch of new rate plans in April resulted in a 5% increase in ARPA, the highest growth in eight years, with customers increasingly selecting premium tiers [7][19] Market Data and Key Metrics Changes - T-Mobile's postpaid share of households grew across all cohorts within the top 100 markets, as well as in smaller markets and rural areas [6][19] - The company reported leading the broadband industry in net additions for the fourteenth consecutive quarter, with significant growth in both speeds and usage [14][19] Company Strategy and Development Direction - T-Mobile announced a multiyear partnership with Cable to enhance mobile service offerings to small and mid-market businesses, aiming for incremental revenue growth in underexposed areas [8][20] - The company is focused on expanding its network capabilities, with plans to add nearly 4,000 sites this year, enhancing coverage in smaller markets and rural areas [11][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the competitive environment, noting that T-Mobile thrives in dynamic conditions and continues to see robust customer growth despite increased churn [6][39] - The company anticipates a decrease in churn in Q3, with expectations for strong postpaid ARPA growth and service revenue growth of at least 6% for the full year [24][39] Other Important Information - T-Mobile is set to close its joint venture acquisition of MetroNet, which is expected to enhance its fiber offerings and customer base [26][100] - The company reached an agreement to divest its 800 megahertz licenses for $2.9 billion, which is anticipated to generate approximately $850 million in incremental income taxes [29][102] Q&A Session Summary Question: What is the current market environment and churn expectations? - Management noted that the competitive market is dynamic, and while churn increased in Q2, it is expected to decrease in Q3, remaining flat to slightly up year over year [39][40] Question: Can you provide more details on fiber growth expectations? - The company expects to achieve 100,000 fiber net additions this year, with growth driven by joint ventures and wholesale markets [41][42] Question: How does T-Mobile plan to improve network perception? - Management indicated that advertising and customer experience will play significant roles in improving network perception, with a focus on maintaining network leadership [68][70] Question: What is the strategy behind the partnership with cable operators? - The partnership targets small and mid-market businesses, where T-Mobile has limited exposure, and is expected to generate incremental revenue without entering the consumer market [60][61] Question: What is the current market share in rural areas? - T-Mobile has surpassed a 20% share of households in smaller markets and continues to see growth opportunities, especially with the addition of U.S. Cellular assets [110][113]

Financial Data and Key Metrics Changes - Postpaid service revenues grew 9% year over year, an acceleration from Q1, while total service revenues grew 6%, significantly outpacing closest competitors [18] - Adjusted free cash flow reached $4.6 billion, setting a new Q2 record, with an industry-leading adjusted free cash flow conversion from service revenues of 26% [18] - Core adjusted EBITDA growth was 6% year over year, with full-year expectations for core adjusted EBITDA set between $33.3 billion and $33.7 billion [23][24] Business Line Data and Key Metrics Changes - The business group led the industry in net additions, with postpaid account nets accelerating year over year [6] - The company achieved its highest ever business 5G broadband net additions, continuing to lead the overall broadband industry in net additions for the fourteenth consecutive quarter [13] - ARPA (Average Revenue Per Account) grew over 5%, marking the highest growth in eight years, with customers increasingly selecting premium rate plans [6][17] Market Data and Key Metrics Changes - The company surpassed 20% share of households in smaller markets and rural areas, achieving its goal set for 2025 [108] - The competitive environment remains dynamic, with the company benefiting from increased customer speeds and lower costs in real terms over the past few years [35] - The company is focused on expanding its network in smaller markets and rural areas, with plans to increase site coverage significantly through acquisitions and new builds [12][88] Company Strategy and Development Direction - The company announced a multiyear partnership with Cable to enhance mobile service offerings to small and mid-market businesses, aiming for incremental growth in an area with previously low exposure [7] - The strategy emphasizes maintaining a competitive edge through network leadership and customer experience, with ongoing investments in infrastructure and technology [9][10] - The company is committed to digital transformation, with significant progress in customer engagement through its app, which has over 75 million installs [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a competitive environment, highlighting the unique value proposition of best network, best value, and best experiences [19] - The company anticipates continued strong growth in service revenues and customer additions, with expectations for postpaid net additions raised to between 6.1 million and 6.4 million for the year [22] - Management noted the potential for significant growth in the broadband sector, particularly through fiber investments and partnerships [97] Other Important Information - The company is set to close the acquisition of MetroNet, which is expected to enhance its fiber capabilities and customer base [25][99] - A recent agreement to divest its 800 megahertz licenses is anticipated to generate approximately $2.9 billion in cash, with additional potential upside [27] - The company expects a $1.5 billion benefit to cash taxes in 2026 from recent legislation, which will be allocated thoughtfully [26] Q&A Session Summary Question: What is the outlook for churn in the second half and the competitive environment? - Management indicated that while churn increased in Q2 due to rate plan optimizations, they expect it to decrease in Q3 and remain flat to slightly up year over year [36][37] Question: Can you provide more details on fiber growth and potential inorganic opportunities? - Management confirmed that the fiber business is expected to add 100,000 net additions this year, with ongoing evaluations for inorganic growth opportunities [39][40] Question: How does the company plan to improve network perception among prospective customers? - Management acknowledged that while current customers recognize the network's quality, efforts will focus on advertising and customer experience to enhance perception among prospective customers [62][66] Question: What is the current market share in rural areas and future expectations? - Management reported surpassing 20% market share in rural areas and expressed optimism for further growth, especially with the integration of U.S. Cellular assets [108][112] Question: How will the $1.5 billion tax benefit be utilized? - Management stated that the capital will be deployed thoughtfully, considering various options such as M&A, buybacks, or network investments [106]

Financial Performance - T-Mobile exceeded expectations for both revenue and earnings [1] - The company raised its full-year customer and financial guidance [1] - T-Mobile achieved an all-time record Q2 for post-paid net additions and post-paid phone net additions [2] Strategic Initiatives & Partnerships - T-Mobile's guidance reflects the inclusion of Metronet [3] - T-Mobile has partnered with Comcast and Charter to provide wireless services to small and medium business customers starting in 2026 [4][5] - The partnership with cable companies is expected to be highly incremental [6] - T-Mobile's primary focus remains on the smallest businesses, where it already competes with cable [6] Customer Base & Churn - T-Mobile saw a healthy prepaid business, net of migration from prepaid to postpaid [7] - T-Mobile customers are the best paying in the industry, with the lowest post-paid bad debt as a percentage of total revenues among major competitors [8] Leadership & Succession - T-Mobile recruited Serini Gopalin as part of its long-term succession plan [9]

Core Insights - T-Mobile US experienced growth in wireless and internet subscribers in the second quarter, surpassing Wall Street expectations and outperforming competitors [1] - The company reported an addition of 830,000 net postpaid wireless phone connections, representing a nearly 7% year-over-year increase, exceeding analyst expectations of 704,500 net additions [2] Financial Performance - T-Mobile's net postpaid wireless phone connections increased by 830,000 in Q2, which is a significant growth compared to the previous year [2] - The company has raised its guidance for the full year, indicating a positive outlook for future performance [1]

Financial Performance - T-Mobile reported quarterly earnings of $2.84 per share, exceeding the analyst consensus estimate of $2.68 [1] - Quarterly revenue reached $21.13 billion, surpassing the Street estimate of $20.98 billion and increasing from $19.77 billion in the same period last year [1] Customer Growth - T-Mobile achieved postpaid net customer additions of 1.7 million and postpaid phone net customer additions of 830,000 [5] - The company reported postpaid net account additions of 318,000, representing a 6% year-over-year increase, the best in the industry [5] - 5G broadband net customer additions were 454,000, up 12% year-over-year [5] Service Revenue - Service revenues totaled $17.4 billion, growing 6% year-over-year [5] - Postpaid service revenues amounted to $14.1 billion, reflecting a 9% year-over-year increase [5] Future Outlook - T-Mobile revised its fiscal 2025 postpaid net customer additions guidance to between 6.1 million and 6.4 million, up from the previous estimate of 5.5 million to 6 million [4] - The updated guidance includes 2.95 million to 3.1 million postpaid phone net customer additions and approximately 100,000 fiber net customer additions [4] Market Reaction - Following the earnings report, T-Mobile's stock rose by 5.16% to $246 in extended trading [4]

Customer Metrics - Total postpaid customers reached 107284 thousand in Q2 2025[23] - Postpaid net customer additions were 1732 thousand in Q2 2025[23] - Postpaid phone net customer additions were 830 thousand in Q2 2025[23] - Postpaid other net customer additions were 902 thousand in Q2 2025[23] - Prepaid customers reached 25494 thousand in Q2 2025[34] - Prepaid net customer additions were 39 thousand in Q2 2025[34] - Postpaid phone churn decreased slightly to 090% in Q2 2025[29] - Total 5G broadband customers reached 7308 thousand in Q2 2025[37] Financial Metrics - Service revenues increased 6% year-over-year to $17438 million in Q2 2025[41,42] - Postpaid service revenues increased 9% year-over-year to $14078 million in Q2 2025[43,44] - Equipment revenues increased 11% year-over-year to $3439 million in Q2 2025[47,49] - Net income was $3222 million in Q2 2025[68] - Diluted earnings per share was $284 in Q2 2025[70] - Core Adjusted EBITDA increased 6% year-over-year to $8541 million in Q2 2025[74,76] - Net cash provided by operating activities increased 27% year-over-year to $6992 million in Q2 2025[77,78] - Adjusted Free Cash Flow increased 4% year-over-year to $4596 million in Q2 2025[87,89] Capital Allocation - During Q2 2025, 101 million shares were repurchased for approximately $25 billion[97] - During Q2 2025, the company paid a cash dividend of $088 per share of common stock, or approximately $996 million[97] Guidance - The company revised its 2025 guidance for postpaid net customer additions to 61 to 64 million, an increase of 500 thousand at the midpoint[99] - The company revised its 2025 guidance for Core Adjusted EBITDA to $333 to $337 billion, an increase of $50 million at the midpoint[99] - The company revised its 2025 guidance for Net cash provided by operating activities to $271 to $275 billion, an increase of $50 million at the midpoint[99] - The company revised its 2025 guidance for Adjusted Free Cash Flow to $176 to $180 billion, an increase of $50 million at the midpoint[99]

Subscriber Growth - T-Mobile, the nation's second-largest wireless provider, reported more new subscribers than analysts were expecting in the second quarter [1] - The subscriber growth overcame a sluggish start to the year [1]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Commission File Number: 1-33409 T-MOBILE US, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) Delaware 20-0836269 12920 SE 38th Street Bellevue, Washington (Address of principal executive offices) 98006-1350 (Zip Code) (425) 378-4000 (Registrant's telephone number, including area code) Securities reg ...