T-Mobile US, Inc. (NASDAQ: TMUS)

T-Mobile’s Q2 2025 financial performance demonstrated the company’s ability to translate industry-leading customer growth into exceptional financial results. Service revenues increased 6% year-over-year to $17.4 billion, representing the best growth rate in the wireless industry. This growth was driven primarily by strong postpaid service revenue growth of 9% to $14.1 billion, reflecting both customer additions and improved revenue per user metrics.

Net income reached a record $3.2 billion, representing a 10% increase year-over-year and the highest quarterly net income in company history. This strong profitability was driven by revenue growth, operational efficiencies, and disciplined cost management. Diluted earnings per share increased 14% to $2.84, the highest-ever Q2 EPS, benefiting from both earnings growth and ongoing share repurchase activities.

Core Adjusted EBITDA grew 6% year-over-year to $8.5 billion, demonstrating industry-leading growth and the scalability of T-Mobile’s business model. The company’s ability to grow EBITDA at a similar pace to revenue growth while making significant investments in network infrastructure and customer acquisition underscores operational excellence.

Cash flow metrics remained robust, with net cash provided by operating activities increasing 27% to $7.0 billion. Adjusted Free Cash Flow grew 4% to $4.6 billion, representing the highest-ever Q2 Adjusted Free Cash Flow. This strong cash generation enabled T-Mobile to return $3.5 billion to stockholders during the quarter through $2.5 billion in share repurchases and $996 million in dividends.

The company’s financial strength is further evidenced by cumulative stockholder returns of $38.3 billion since the inception of its capital return program in Q3 2022, split between $32.3 billion in share repurchases and $6.0 billion in dividends. This demonstrates T-Mobile’s commitment to balanced capital allocation while maintaining investment in growth initiatives.

Postpaid customer growth reached exceptional levels in Q2 2025, with 1.7 million net additions representing the best-ever Q2 performance in T-Mobile’s history and industry-leading results. This growth was driven by the company’s combination of America’s best network, exceptional value propositions, and superior customer experiences that continue to attract customers from competitors.

Postpaid phone net additions of 830,000 also achieved best-ever Q2 results, increasing 53,000 year-over-year despite a slight increase in postpaid phone churn to 0.90% (up 10 basis points). The strong gross additions more than offset the modest churn increase, demonstrating the effectiveness of T-Mobile’s customer acquisition strategies and competitive positioning.

5G broadband continues to be a significant growth driver, with 454,000 net additions representing a 12% increase year-over-year and industry-leading performance. T-Mobile ended the quarter with 7.3 million 5G broadband customers, positioning the company as a major player in the fixed wireless access market and providing a significant runway for future growth.

Postpaid net account additions of 318,000 increased 6% year-over-year, reflecting T-Mobile’s success in attracting entire families and business accounts. This metric is particularly important as account additions typically generate higher lifetime value than individual line additions and demonstrate deeper customer relationships.

Total customer connections reached a record high of 132.8 million, with total net customer additions of 1.8 million increasing 254,000 year-over-year. While prepaid net additions of 39,000 decreased compared to the prior year (largely due to market dynamics and the comparison to the Ka’ena acquisition in Q2 2024), the overall customer momentum remains exceptional.

The customer growth metrics demonstrate T-Mobile’s market share gains across multiple segments and reinforce the company’s position as the preferred wireless carrier for consumers seeking network quality, value, and service excellence.

T-Mobile’s network leadership position was further reinforced during Q2 2025 through multiple third-party recognitions that validate the company’s significant network investments and superior performance:

Third-Party Network Recognition

• Ookla Awards: T-Mobile became the only carrier in the country to win back-to-back Best Mobile Network awards in the largest, most comprehensive tests leveraging half a billion real-world data points on millions of devices measuring speed and experience
• Opensignal Recognition: T-Mobile was recognized for best Overall Experience for the fourth consecutive year, demonstrating consistent network leadership over time
• Download Speed Leadership: T-Mobile delivered download speeds nearly 200% faster than the nearest competitor, showcasing significant performance advantages
• Upload Speed Superiority: The company achieved upload speeds approximately 65% faster than the nearest competitor

These third-party validations are particularly significant because they are based on real-world usage data from millions of devices, providing an objective measure of network performance that customers actually experience. The consistency of these awards over multiple quarters demonstrates that T-Mobile’s network leadership is not temporary but represents a sustained competitive advantage.

T-Mobile’s network superiority stems from several key factors:

• The largest, fastest, and most advanced 5G network in the United States
• Successful integration and optimization of Sprint spectrum assets
• Continued investment in network infrastructure and modernization
• Strategic spectrum positioning across low-band, mid-band, and high-band frequencies
• Advanced network technologies and optimization techniques

The network leadership position is a critical competitive moat for T-Mobile, as network quality is consistently ranked as one of the most important factors in wireless carrier selection. This advantage enables the company to attract and retain customers while supporting premium pricing strategies and reducing churn rates.

CEO Mike Sievert emphasized this competitive advantage: “T-Mobile is now America’s Best Network. When you combine that with the incredible value that we have always been famous for, it should surprise no one that customers are switching to the Un-carrier at a record pace.”

T-Mobile’s updated 2025 guidance reflects strong confidence in the company’s ability to sustain industry-leading customer growth and financial performance throughout the year. The guidance updates incorporate the expected inclusion of Metronet (closing July 24th) while excluding the pending UScellular acquisition.

The most significant guidance raise was for postpaid net customer additions, increased to 6.1-6.4 million from the previous range of 5.5-6.0 million. This represents a substantial increase at both the low and high end of the range, reflecting management’s confidence in the company’s competitive positioning and market share gains.

The company also provided specific guidance for postpaid phone net additions of 2.95-3.10 million, providing investors with greater visibility into the most valuable customer segment. Additionally, T-Mobile expects approximately 100,000 fiber net customer additions, reflecting the company’s expansion into adjacent markets.

Financial guidance improvements include raising the midpoint of Core Adjusted EBITDA guidance to $33.5 billion, demonstrating confidence in the company’s ability to scale profitability alongside customer growth. The net cash from operations midpoint was raised to $27.3 billion, while Adjusted Free Cash Flow midpoint increased to $17.8 billion.

Capital expenditure guidance remained unchanged at approximately $9.5 billion, indicating T-Mobile’s disciplined approach to network investment while maintaining growth momentum. This suggests the company can achieve its customer and financial targets without requiring incremental network investment beyond planned levels.

The guidance updates reflect several positive factors:

• Sustained competitive advantages driving market share gains
• Strong execution on customer acquisition and retention strategies
• Effective cost management and operational leverage
• Confidence in full-year financial performance
• Strategic acquisitions (Metronet) contributing to growth

T-Mobile’s strategic initiatives continue to focus on leveraging its network leadership position to drive sustainable growth across multiple business segments and customer types:

Network Investment & Leadership

• 5G Network Expansion: Continued deployment of the nation’s largest, fastest, and most advanced 5G network, maintaining significant competitive advantages
• Spectrum Optimization: Maximizing the value of mid-band and low-band spectrum assets acquired through the Sprint merger
• Network Modernization: Ongoing infrastructure upgrades to support capacity growth and emerging technologies

Customer Experience & Value Innovation

• Un-carrier Initiatives: Continued focus on eliminating customer pain points and introducing industry-first benefits
• Digital Transformation: Investment in digital channels and self-service capabilities to enhance customer experience
• Value Leadership: Maintaining T-Mobile’s reputation for providing superior value while leveraging network quality advantages

Market Expansion Opportunities

• 5G Broadband Growth: Significant runway for fixed wireless access expansion, targeting underserved markets and competitive cable/fiber areas
• Business & Enterprise: Continued expansion in business markets leveraging network advantages and IoT capabilities
• Adjacent Markets: Strategic expansion into complementary services like fiber through acquisitions (Metronet)

Operational Excellence

• Integration Synergies: Continued realization of Sprint merger synergies and operational efficiencies
• Cost Management: Disciplined approach to cost structure while investing in growth initiatives
• Capital Allocation: Balanced approach to growth investment, debt management, and shareholder returns

T-Mobile’s strategic positioning is particularly strong given the company’s ability to offer the best network, best value, and best customer experience combination in the wireless industry. This differentiated positioning enables the company to compete effectively across multiple customer segments while maintaining pricing discipline and profitability.