How did T-Mobile perform in customer growth in 2024?

T-Mobile added 6.1 million postpaid net customers in 2024, including 3.1 million postpaid phone net additions, and management states these figures lead the industry. Postpaid phone churn improved to 0.86% for the full year, the best in company history, while the company also added 1.7 million High Speed Internet customers and ended the year with 6.4 million such customers.

What does the 2025 guidance imply for investors?

The company guided to 5.5–6.0 million postpaid net customer additions, Core Adjusted EBITDA of $33.1–33.6 billion (about 5% growth at the midpoint), and Adjusted Free Cash Flow of $17.3–18.0 billion. Capital expenditures are expected to be about $9.5 billion. The guidance excludes pending acquisitions of UScellular, Metronet, Lumos, and Vistar Media, so results could differ materially once those close.

How much capital has T-Mobile returned to shareholders?

In 2024, T-Mobile returned $14.4 billion to shareholders, comprised of $11.1 billion in share repurchases and $3.3 billion in cash dividends. Cumulative returns since Q3 2022 total $31.4 billion. The Board authorized up to an additional $14.0 billion for repurchases and dividends through December 31, 2025.

Are there accounting or reporting changes investors should understand?

Effective November 1, 2024, following amendments to its Equipment Installment Plan and Service Receivable Sale arrangements, T-Mobile reclassified cash proceeds from receivable sales into operating cash flow, previously partly recorded in investing activities. This lifted reported operating cash flow but had no net impact on Adjusted Free Cash Flow, so investors should compare operating cash flow trends with this change in mind.

Why did Q4 results look weaker sequentially compared with Q3?

Q4 2024 net income declined 2.5% and Adjusted Free Cash Flow fell 21% from Q3, driven primarily by higher cost of equipment sales from a seasonal increase in high-end phone sales, higher SG&A expenses including seasonal advertising, and higher working capital outflows. Management also pointed to higher capital purchases in the quarter. Year-over-year, however, Q4 Adjusted Free Cash Flow declined only 5%, and Q4 net income grew 48%.

T-Mobile US, Inc. 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed January 29, 2025. Cited figures are marked; the original filing is the authoritative source.

T-Mobile US (TMUS) reported a strong close to 2024, with Q4 and full-year results highlighted by industry-leading customer growth and record profitability.

Q4 2024 postpaid phone net additions were 903 thousand and full-year postpaid phone net additions were 3.1 million, with postpaid phone churn at a record-low 0.86% for the full year. Total service revenues grew 5% to $66.2 billion^a for 2024, net income rose 36% to $11.3 billion, and diluted EPS reached $9.66, the highest in company history. Core Adjusted EBITDA grew 9% to $31.8 billion, and Adjusted Free Cash Flow rose 25% to $17.0 billion, which management characterized as industry-leading.

Capital return was significant: $14.4 billion^b was returned to stockholders in 2024 (including $11.1 billion of buybacks and $3.3 billion of dividends), bringing cumulative returns since Q3 2022 to $31.4 billion. The Board authorized up to an additional $14.0 billion through December 2025. Q4 2024 showed some sequential softness, with Q4 net income down 2.5% and Adjusted Free Cash Flow down 21% versus Q3, driven by seasonal device costs and working capital outflows, and Q4 Adjusted Free Cash Flow was down 5% year over year.

For 2025, guidance calls for 5.5 to 6.0 million postpaid net customer additions, Core Adjusted EBITDA of $33.1 to $33.6 billion^c (about 5% growth at the midpoint), operating cash flow of $26.8 to $27.5 billion, capital expenditures of about $9.5 billion, and Adjusted Free Cash Flow of $17.3 to $18.0 billion. This guidance excludes pending acquisitions of UScellular, Metronet, Lumos, and Vistar Media. Investors should note that Adjusted EBITDA and Adjusted Free Cash Flow are non-GAAP measures, and that 2024 Adjusted Free Cash Flow benefited from securitization proceeds that were reclassified into operating cash flow beginning November 1, 2024, with no net impact on the metric.

02—Key points

Key Highlights

Record 2024 profitability: net income of $11.3 billion (up 36% YoY) and diluted EPS of $9.66 (up 39% YoY), both highest full-year results in company history
Industry-leading customer growth: 6.1 million postpaid net customer additions and 3.1 million postpaid phone net additions in 2024, with record-low full-year postpaid phone churn of 0.86%
Service revenue growth: total service revenues of $66.2 billion (up 5%) and postpaid service revenues of $52.3 billion (up 7%) for 2024
Strong cash generation: operating cash flow of $22.3 billion (up 20%) and Adjusted Free Cash Flow of $17.0 billion (up 25%) for 2024
Shareholder returns: $14.4 billion returned in 2024 and a new authorization of up to $14.0 billion through December 2025
2025 guidance: 5.5–6.0 million postpaid net customer additions and Core Adjusted EBITDA of $33.1–33.6 billion, excluding pending acquisitions
Q4 sequential softness: Q4 net income fell 2.5% and Adjusted Free Cash Flow fell 21% versus Q3 2024, reflecting seasonal device costs and working capital outflows

03—Questions

Frequently Asked Questions

How did T-Mobile perform in customer growth in 2024?
T-Mobile added 6.1 million postpaid net customers in 2024, including 3.1 million postpaid phone net additions, and management states these figures lead the industry. Postpaid phone churn improved to 0.86% for the full year, the best in company history, while the company also added 1.7 million High Speed Internet customers and ended the year with 6.4 million such customers.
What does the 2025 guidance imply for investors?
The company guided to 5.5–6.0 million postpaid net customer additions, Core Adjusted EBITDA of $33.1–33.6 billion (about 5% growth at the midpoint), and Adjusted Free Cash Flow of $17.3–18.0 billion. Capital expenditures are expected to be about $9.5 billion. The guidance excludes pending acquisitions of UScellular, Metronet, Lumos, and Vistar Media, so results could differ materially once those close.
How much capital has T-Mobile returned to shareholders?
In 2024, T-Mobile returned $14.4 billion to shareholders, comprised of $11.1 billion in share repurchases and $3.3 billion in cash dividends. Cumulative returns since Q3 2022 total $31.4 billion. The Board authorized up to an additional $14.0 billion for repurchases and dividends through December 31, 2025.
Are there accounting or reporting changes investors should understand?
Effective November 1, 2024, following amendments to its Equipment Installment Plan and Service Receivable Sale arrangements, T-Mobile reclassified cash proceeds from receivable sales into operating cash flow, previously partly recorded in investing activities. This lifted reported operating cash flow but had no net impact on Adjusted Free Cash Flow, so investors should compare operating cash flow trends with this change in mind.
Why did Q4 results look weaker sequentially compared with Q3?
Q4 2024 net income declined 2.5% and Adjusted Free Cash Flow fell 21% from Q3, driven primarily by higher cost of equipment sales from a seasonal increase in high-end phone sales, higher SG&A expenses including seasonal advertising, and higher working capital outflows. Management also pointed to higher capital purchases in the quarter. Year-over-year, however, Q4 Adjusted Free Cash Flow declined only 5%, and Q4 net income grew 48%.

04—Continue

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