T-Mobile US (TMUS) Q3 2025 earnings summary

Executive summary

• Achieved record postpaid customer growth in Q3 2025, with over 2.3 million total postpaid net additions and 1 million postpaid phone net adds, marking the best Q3 in over a decade and industry-leading churn rates.

• Service revenues grew 9% year-over-year to $18.2 billion, with total revenues reaching $22.0 billion and net income of $2.7 billion, impacted by impairment charges.

• Major acquisitions completed, including UScellular, Metronet, Lumos, Vistar Media, Blis Holdco, and Ka’ena Corporation, significantly expanding the customer and fiber base.

• Leadership transition announced: Srini Gopalan to become CEO on Nov 1, 2025, with Mike Sievert moving to Vice Chairman.

• Recognized as a global leader in 5G coverage, reliability, and fixed wireless speeds, with ongoing digital transformation and AI initiatives enhancing customer experience.

Financial highlights

• Q3 2025 total revenues: $21.96B (+9% YoY); service revenues: $18.2B (+9% YoY); postpaid service revenues: $14.9B (+12% YoY).

• Net income: $2.7B for Q3 2025; diluted EPS: $2.41, both including impairment expenses.

• Core Adjusted EBITDA: $8.7B (+6% YoY), margin 47.6–48%.

• Adjusted Free Cash Flow: $4.8B for Q3 2025, margin 26.4%, up 5% sequentially but down 7% YoY due to higher CapEx.

• Cash purchases of property and equipment: $2.6B, up 35% YoY.

Outlook and guidance

• Raised 2025 guidance: total postpaid net customer additions 7.2–7.4M; postpaid phone net adds 3.3M.

• Core Adjusted EBITDA guidance increased to $33.7–$33.9B.

• Adjusted Free Cash Flow guidance raised to $17.8–$18.0B; CapEx expected at ~$10.0B.

• Net cash from operating activities guidance raised to $27.8–$28.0B.

• UScellular integration and restructuring expected to complete by end of 2027, targeting $1.2B in annual run-rate cost synergies.