How strong was customer growth in Q4 and full-year 2025?

T-Mobile added 2.4 million total postpaid net customers in Q4 2025 and 7.8 million for the full year, including 3.3 million postpaid phone net additions and 2.0 million total broadband net additions. Total customers reached 142.4 million at year-end. Part of the growth came from acquisitions, including UScellular, which contributed about 3.7 million postpaid customers in Q3 2025.

Did earnings quality weaken in Q4 2025?

Reported results were affected by one-time items. Q4 net income of $2.1 billion included $293 million of after-tax severance related to the 2025 workforce initiative, and Q4 Core Adjusted EBITDA declined 2.7% sequentially. Net income fell 22.5% from Q3 and 29.5% from Q4 2024, partly due to higher costs following the UScellular acquisition, higher equipment costs, and increased SG&A. Investors should compare results excluding these Special Items.

What is the 2026 financial outlook?

For 2026, T-Mobile guided to Core Adjusted EBITDA of $37.0 to $37.5 billion (about 10% growth at the midpoint), operating cash flow of $28.0 to $28.7 billion, capital expenditures of about $10.0 billion, and Adjusted Free Cash Flow of $18.0 to $18.7 billion. It expects postpaid net account additions of 900,000 to 1.0 million and a 25% to 26% effective tax rate. The company does not provide net income guidance.

How is T-Mobile returning capital and managing its balance sheet?

T-Mobile returned $14.0 billion to stockholders in 2025, including $9.9 billion in share repurchases and $4.1 billion in dividends. Its current program authorizes up to $14.6 billion in repurchases and dividends through December 31, 2026. At year-end, total debt excluding tower obligations was $88.6 billion and net debt was $83.0 billion, roughly 2.4x LTM Core Adjusted EBITDA.

What should investors watch as risks or open questions?

Key watch items include rising churn (postpaid phone churn of 1.02% in Q4), increased promotional activity, higher cost of equipment and services, and the integration of UScellular, Metronet and Lumos. Management also flagged network restructuring costs of $93 million in Q4 and noted that the Capital Markets Day Update will revisit multi-year guidance through 2027. Adjusted Free Cash Flow guidance excludes material securitization inflows.

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

01—Abstract

Summary

Summary of the 8-K filed February 11, 2026. Cited figures are marked; the original filing is the authoritative source.

T-Mobile US (TMUS) reported Q4 and full-year 2025 results on February 11, 2026, with headline growth driven by customer acquisition and service revenue.

Full-year 2025 total postpaid net customer additions were 7.8 million (Q4: 2.4 million), postpaid phone net additions were 3.3 million, and total broadband net additions were 2.0 million. Total service revenues grew 8% to $71.3 billion^a for the year and 10% to $18.7 billion in Q4, with postpaid service revenues up 11% for the year, partly reflecting the UScellular, Metronet and Lumos acquisitions. Core Adjusted EBITDA rose 7% to $33.9 billion for 2025, and Adjusted Free Cash Flow rose 6% to $18.0 billion, though Q4 Adjusted Free Cash Flow declined 13% sequentially and Q4 net income fell 22.5% sequentially to $2.1 billion (diluted EPS $1.88).

Quality of earnings deserves attention. Q4 net income was reduced by $293 million^b (about $0.26 per share) of severance tied to the 2025 workforce transformation, and full-year results also absorbed a $208 million impairment on capitalized software. Q4 also showed a notable increase in Q4 churn, with postpaid phone churn rising to 1.02% from 0.92% a year earlier, and a new Q4 network restructuring charge of $93 million.

Management emphasized that gross customer growth remains strong, but investors should watch whether elevated churn and rising promotional activity pressure ARPU and margins. For 2026, management guided to Core Adjusted EBITDA of $37.0 to $37.5 billion^c (about 10% growth at the midpoint), operating cash flow of $28.0 to $28.7 billion, capital expenditures of roughly $10.0 billion, and Adjusted Free Cash Flow of $18.0 to $18.7 billion. Postpaid net account additions are expected to be 900,000 to 1.0 million.

The company also said it would update its multi-year guidance through 2027 at a Capital Markets Day Update, and it returned $14.0 billion^d to stockholders in 2025 and announced a program of up to $14.6 billion through December 2026. Total debt, excluding tower obligations, was $88.6 billion at year-end, with net debt of $83.0 billion.

02—Key points

Key Highlights

Full-year 2025 total postpaid net customer additions of 7.8 million and postpaid phone net additions of 3.3 million, both described by the company as industry-best.
Service revenues grew 8% to $71.3 billion in 2025 (Q4: $18.7 billion, up 10% YoY); postpaid service revenues grew 11% to $57.9 billion for the year.
Core Adjusted EBITDA rose 7% to $33.9 billion for 2025; Q4 Core Adjusted EBITDA was $8.4 billion, down 2.7% sequentially.
Adjusted Free Cash Flow of $18.0 billion for 2025 (up 6% YoY), with 2026 guidance of $18.0 to $18.7 billion.
Q4 2025 net income of $2.1 billion (diluted EPS $1.88) included $293 million of after-tax severance costs; full-year 2025 included a $208 million after-tax impairment on capitalized software.
Postpaid phone churn increased to 1.02% in Q4 2025 from 0.92% a year earlier, citing higher industry switching and seasonality.
2026 guidance calls for Core Adjusted EBITDA of $37.0 to $37.5 billion, with a Capital Markets Day Update to revisit multi-year targets through 2027; $14.6 billion stockholder return program authorized through December 2026.

03—Questions

Frequently Asked Questions

How strong was customer growth in Q4 and full-year 2025?
T-Mobile added 2.4 million total postpaid net customers in Q4 2025 and 7.8 million for the full year, including 3.3 million postpaid phone net additions and 2.0 million total broadband net additions. Total customers reached 142.4 million at year-end. Part of the growth came from acquisitions, including UScellular, which contributed about 3.7 million postpaid customers in Q3 2025.
Did earnings quality weaken in Q4 2025?
Reported results were affected by one-time items. Q4 net income of $2.1 billion included $293 million of after-tax severance related to the 2025 workforce initiative, and Q4 Core Adjusted EBITDA declined 2.7% sequentially. Net income fell 22.5% from Q3 and 29.5% from Q4 2024, partly due to higher costs following the UScellular acquisition, higher equipment costs, and increased SG&A. Investors should compare results excluding these Special Items.
What is the 2026 financial outlook?
For 2026, T-Mobile guided to Core Adjusted EBITDA of $37.0 to $37.5 billion (about 10% growth at the midpoint), operating cash flow of $28.0 to $28.7 billion, capital expenditures of about $10.0 billion, and Adjusted Free Cash Flow of $18.0 to $18.7 billion. It expects postpaid net account additions of 900,000 to 1.0 million and a 25% to 26% effective tax rate. The company does not provide net income guidance.
How is T-Mobile returning capital and managing its balance sheet?
T-Mobile returned $14.0 billion to stockholders in 2025, including $9.9 billion in share repurchases and $4.1 billion in dividends. Its current program authorizes up to $14.6 billion in repurchases and dividends through December 31, 2026. At year-end, total debt excluding tower obligations was $88.6 billion and net debt was $83.0 billion, roughly 2.4x LTM Core Adjusted EBITDA.
What should investors watch as risks or open questions?
Key watch items include rising churn (postpaid phone churn of 1.02% in Q4), increased promotional activity, higher cost of equipment and services, and the integration of UScellular, Metronet and Lumos. Management also flagged network restructuring costs of $93 million in Q4 and noted that the Capital Markets Day Update will revisit multi-year guidance through 2027. Adjusted Free Cash Flow guidance excludes material securitization inflows.

04—Continue

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