10-QPeriod: Q3 FY2025

T-Mobile US, Inc. Quarterly Report for Q3 Ended Sep 30, 2025

Filed October 23, 2025For Securities:TMUSTMUSZTMUSITMUSL

Summary

T-Mobile US, Inc. (TMUS) reported its third-quarter 2025 financial results, showing continued revenue growth and strategic expansion. Total revenues increased by 9% year-over-year for the quarter, driven by a robust performance in postpaid services, which saw a 12% increase, and strong equipment revenue growth. The company successfully integrated the UScellular wireless business, which closed on August 1, 2025, contributing to an increase in total customers and service revenues. Despite a slight increase in operating expenses, particularly due to merger-related costs and increased depreciation, T-Mobile maintained strong profitability, with net income for the quarter at $2.7 billion. The company demonstrated robust operational execution and strategic foresight, marked by significant investments in network infrastructure and the successful integration of recent acquisitions. Cash flows from operations remained strong, supporting substantial capital expenditures and financing activities, including significant share repurchases and dividend payments as part of its stockholder return program. T-Mobile continues to navigate a dynamic market, balancing growth initiatives with prudent financial management.

Financial Highlights

51 data points
Beta

Revenue

$21.96B

Net Income

$2.71B

12.4% Net Margin

EPS (Diluted)

$2.41

Total Assets

$217.18B

Cash & Equivalents

$3.31B

Free Cash Flow

$4.82B

Financial Statements
Beta
Revenue$21.96B
SG&A Expenses$6.01B
Operating Expenses$17.43B
Operating Income$4.53B
Net Income$2.71B
EPS (Basic)$2.42
EPS (Diluted)$2.41
Shares Outstanding (Basic)1.12B
Shares Outstanding (Diluted)1.13B

Key Highlights

  • 1Total revenues increased 9% year-over-year to $21.96 billion for the third quarter of 2025.
  • 2Postpaid revenues grew 12% to $14.88 billion, driven by higher average postpaid accounts and ARPA.
  • 3Net income was $2.71 billion for the quarter, a decrease of 11% year-over-year, impacted by higher operating expenses.
  • 4The acquisition of UScellular's wireless business closed on August 1, 2025, contributing to a 12% increase in total postpaid customers.
  • 5Net cash provided by operating activities increased by 21% to $7.46 billion for the quarter.
  • 6The company repurchased approximately $2.5 billion of its common stock during the third quarter.
  • 7T-Mobile made significant strategic investments, including the acquisition of UScellular and joint ventures in fiber broadband (Lumos and Metronet).

Frequently Asked Questions

T-Mobile's revenue growth in the third quarter of 2025 was primarily driven by a strong performance in postpaid services, which saw a 12% increase year-over-year, due to higher average postpaid accounts and an increase in Postpaid Average Revenue Per Account (ARPA). Equipment revenues also contributed significantly with an 8% increase, largely due to higher device sales and an increased mix of high-end phone sales.

The acquisition of UScellular, which closed on August 1, 2025, contributed to an increase in total customer and service revenues. While the acquisition led to increased operating expenses, including merger-related costs and higher depreciation, it is expected to generate significant synergies and enhance T-Mobile's rural 5G coverage. The financial results for the period reflect only a partial quarter's impact from UScellular due to the closing date.

T-Mobile maintained a strong liquidity position, with cash and cash equivalents of $3.3 billion as of September 30, 2025. Net cash provided by operating activities increased significantly by 21% to $7.46 billion for the quarter, supporting substantial capital expenditures for network build-out and financing activities. The company also has significant borrowing capacity available through its revolving credit facility and commercial paper program, indicating a stable outlook for meeting operational and strategic needs.

T-Mobile continues to actively return capital to shareholders through its 2025 Stockholder Return Program. During the third quarter of 2025, the company repurchased approximately $2.5 billion of its common stock and paid $987 million in cash dividends. As of September 30, 2025, approximately $3.6 billion remained available under the program for future repurchases and dividends.