Core Insights - T-Mobile US, Inc. (TMUS) reported strong third-quarter 2025 results, exceeding both revenue and earnings estimates, driven by significant postpaid customer growth [1][10] Financial Performance - Net income for Q3 was $2.71 billion or $2.41 per share, a decrease from $3.05 billion or $2.61 per share in the same quarter last year, reflecting an 11.3% year-over-year decline due to increased operating and interest expenses [2] - Total revenues reached $21.95 billion, up from $20.16 billion year-over-year, surpassing the consensus estimate of $21.78 billion [3] - Total service revenues increased to $18.3 billion from $16.7 billion in the prior year, with a 9.1% year-over-year growth primarily driven by postpaid services [4] Customer Growth and Churn - T-Mobile added 2.3 million postpaid net customers and 396,000 postpaid net accounts during the quarter, with a postpaid phone churn rate of 0.89% [5] - Postpaid average revenues per account rose to $149.44 from $145.60 year-over-year [5] Segment Performance - Net sales from prepaid services were $2.62 billion, down from $2.71 billion in the previous year, with a prepaid net customer addition of 43,000 and a churn rate of 2.77% [6] - Equipment revenues increased to $3.46 billion from $3.2 billion year-over-year, attributed to a higher average revenue per device sold [7] Operating Expenses and EBITDA - Total operating expenses rose to $17.42 billion from $15.36 billion in the prior year, leading to a decline in operating income to $4.5 billion from $4.7 billion [8] - Core adjusted EBITDA was $8.68 billion, up from $8.24 billion a year ago, supported by strong service revenue growth [8] Cash Flow and Liquidity - T-Mobile generated $7.45 billion in cash from operating activities, compared to $6.13 billion in the prior year, while adjusted free cash flow was $4.81 billion, down from $5.16 billion [11] - As of September 30, 2025, the company had $3.31 billion in cash and cash equivalents and $76.36 billion in long-term debt [11] Future Outlook - T-Mobile has raised its 2025 guidance, now expecting postpaid net customer additions between 7.2 million and 7.4 million, and core adjusted EBITDA in the range of $33.7 billion to $33.9 billion [12]

Financial Performance - For the quarter ended June 2025, United States Cellular (USM) reported revenue of $916 million, down 1.2% year-over-year, with EPS at $0.36 compared to $0.20 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $904.19 million by +1.31%, while the EPS surprise was +9.09% against the consensus estimate of $0.33 [1] Key Metrics - U.S. Cellular's shares returned +6.1% over the past month, outperforming the Zacks S&P 500 composite's +2.7% change [3] - The company experienced net losses in retail connections, with postpaid at -42 million versus an estimate of -30 million, and prepaid at -2 million against an estimate of 4 million [4] - Gross additions for postpaid retail connections were 109 million, exceeding the average estimate of 101.81 million [4] Customer and Revenue Insights - Total connections stood at 4.33 million, slightly below the average estimate of 4.39 million [4] - Average Revenue Per User (ARPU) for prepaid was $31.72, above the average estimate of $31.08, while postpaid ARPU was $51.91, also exceeding the estimate of $51.77 [4] - Operating revenues from service were reported at $736 million, surpassing the estimate of $728.62 million, but reflecting a -0.9% change year-over-year [4] - Net operating revenues from service retail were $652 million, compared to an estimate of $650.86 million, indicating a -2.1% year-over-year change [4] - Equipment sales generated $180 million, exceeding the estimate of $175.58 million, with a -2.2% change year-over-year [4]

Core Insights - T-Mobile US, Inc. reported better-than-expected first-quarter fiscal 2025 results with non-GAAP earnings of $2.58 per share, exceeding the Zacks Consensus Estimate by $0.13. Revenues increased by 6.6% year over year to $20.88 billion, surpassing the Zacks Consensus Estimate of $20.57 billion [1] Segment Performance - Total postpaid revenues rose by 7.6% year over year to $13.59 billion, exceeding the estimate of $13.54 billion. The company achieved its strongest first-quarter postpaid net addition with 1.3 million net customer additions, an increase of 117,000 year over year [2] - The majority of new customers are opting for premium plans, leading to a 4% year-over-year growth in Postpaid average revenues per account, marking the best first-quarter growth in eight years [3] - In 5G broadband, T-Mobile added 424,000 net high-speed Internet customers with record-low churn, supported by updated pricing plans and a focus on network slicing and advanced 5G infrastructure [4] Financial Position - T-Mobile generated $6.84 billion in cash from operating activities, up from $5.08 billion in the prior-year quarter. Adjusted free cash flow was reported at $4.39 billion, indicating strong operational efficiency [7] - As of March 31, 2025, the company had $12 billion in cash and cash equivalents, with long-term debt of $76 billion, an increase from $72.7 billion at the end of the previous quarter [8] Share Buyback and Guidance - During the March quarter, T-Mobile repurchased 10.1 million shares for approximately $2.5 billion, with $10.5 billion remaining under its 2025 buyback program [9] - For 2025, T-Mobile expects postpaid net customer additions between 5.5-6 million and has raised its growth expectation for postpaid ARPA to 3.5% for the full year [9][10]