T-Mobile US (TMUS) Q4 2025 earnings summary

Executive summary

• Achieved industry-leading customer and service revenue growth in Q4 2025, with 2.4M net postpaid customer additions, 558K broadband net additions, and service revenue up 10% year-over-year to $18.7B, outpacing competitors.

• Adjusted EBITDA rose 7% year-over-year to $8.4B in Q4 2025, with a margin of 45.2%.

• Raised outlook for 2026 and 2027, projecting $77B in service revenue for 2026 (8% growth) and $80.5–$81.5B for 2027 (5% growth), with strong organic and M&A contributions.

• Recognized for best network quality by J.D. Power, Opensignal, and Ookla, driving high NPS and customer loyalty.

• Returned $14B to shareholders in 2025, with cumulative returns of $45.4B since program inception and a new $5B Q1 2026 share buyback announced.

Financial highlights

• Total revenues for Q4 2025 were $24.3B, up from $21.9B in Q4 2024; service revenues grew 10% year-over-year to $18.7B.

• Net income for Q4 2025 was $2.1B, with diluted EPS of $1.88, impacted by $293M in severance and related costs.

• Core Adjusted EBITDA reached $8.4B in Q4 2025, up 7% year-over-year, and $33.9B for 2025.

• Net cash from operating activities was $6.7B in Q4 2025, up 20% year-over-year; Adjusted Free Cash Flow was $4.2B in Q4 and $18.0B for 2025.

• Equipment revenues increased 14% year-over-year, driven by higher average revenue per device and increased high-end phone mix.

Outlook and guidance

• 2026 guidance: $77B service revenue, $37–$37.5B adjusted EBITDA, $18–$18.7B free cash flow, and capital expenditures around $10B.

• 2027 guidance: $80.5–$81.5B service revenue, $40–$41B adjusted EBITDA, $19.5–$20.5B free cash flow.

• Postpaid net account additions expected at 900,000–1 million in 2026, with 2.5 million postpaid phone net adds implied.

• ARPA growth guided at 2.5–3% annually.

• Broadband business projected to reach 18–19 million customers by 2030, including 15 million FWA and 3–4 million fiber customers.