T-Mobile US (TMUS) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 postpaid net customer additions of 1.3 million, leading the industry, with total net customer additions of 1.4 million and total customer connections reaching 130.9 million.

• Delivered best-ever Q1 financial results, including net income of $3.0 billion (up 24% year-over-year), diluted EPS of $2.58 (up 29%), and Adjusted Free Cash Flow of $4.4 billion (up 31%).

• Maintained network leadership with the only nationwide 5G Advanced network, launched T-Satellite service, and received global recognition for 5G speed and availability.

• Completed acquisitions of Ka’ena Corporation (Mint Mobile), Vistar Media, and Blis Holdco; announced pending UScellular and Metronet deals.

• Repurchased $2.5 billion in common stock and paid $1.0 billion in dividends in Q1 2025; $10.5 billion remains under the 2025 Stockholder Return Program.

Financial highlights

• Service revenues grew 5% year-over-year to $16.9 billion; postpaid service revenues rose 8% to $13.6 billion.

• Core Adjusted EBITDA increased 8% year-over-year to $8.3 billion; Adjusted Free Cash Flow rose 31% to $4.4 billion.

• Net cash provided by operating activities was $6.8 billion, up 35% year-over-year.

• Equipment revenues rose 14% to $3.7 billion, reflecting higher device sales and a shift to high-end phones.

• Total customers reached 130.9 million, up 8% year-over-year, with 1.4 million net customer additions in Q1 2025.

Outlook and guidance

• 2025 guidance reaffirmed: postpaid net customer additions of 5.5–6.0 million; Core Adjusted EBITDA $33.2–$33.7 billion; net cash from operations $27.0–$27.5 billion; adjusted free cash flow $17.5–$18.0 billion; capex ~$9.5 billion.

• Guidance excludes pending UScellular and Metronet acquisitions.

• Anticipates $1.0 billion in annual run-rate cost synergies from the UScellular deal, with integration costs estimated at $2.2–$2.6 billion.

• 2025 Stockholder Return Program authorizes up to $14.0 billion in share repurchases and dividends through year-end.

• Capital expenditures expected to be approximately $9.5 billion, focusing on 5G network build-out and digital transformation.