T-Mobile (TMUS) Q2 2025 Financial Results Summary

# T-Mobile US, Inc. (TMUS) Q2 2025 Financial Results Summary

T-Mobile US, Inc. (NASDAQ: TMUS) released its second quarter 2025 financial results on July 23, 2025, showcasing record customer growth and financial performance metrics.

## Key Financial and Operational Highlights

### Customer Growth
– **Postpaid net customer additions:** 1.7 million, an increase of **394,000** (up **30%**) year-over-year, marking the best-ever Q2 in the industry.
– **Postpaid phone net customer additions:** 830,000, up **53,000** (up **7%**) year-over-year, also the best-ever Q2 in the industry.
– **Postpaid net account additions:** 318,000, a rise of **17,000** (up **6%**) year-over-year, continuing to lead the industry.
– **5G broadband net customer additions:** 454,000, reflecting an increase of **48,000** (up **12%**) year-over-year.
– **Total net customer additions:** 1.8 million, an increase of **254,000** (up **16.4%**) year-over-year.
– **Total customer connections:** Increased to a record high of **132.8 million**.

### Financial Performance
– **Total service revenues:** $17.4 billion, an increase of **6%** year-over-year.
– **Postpaid service revenues:** $14.1 billion, representing a **9%** rise year-over-year.
– **Net income:** $3.2 billion, highest in T-Mobile’s history, reflecting a **10%** year-over-year growth.
– **Diluted earnings per share (EPS):** $2.84, an increase of **14%** from the previous year.
– **Core Adjusted EBITDA:** $8.5 billion, up **6%** year-over-year.
– **Net cash provided by operating activities:** $7.0 billion, growth of **27%** year-over-year.
– **Adjusted Free Cash Flow:** $4.6 billion, an increase of **4%** year-over-year.

### Stockholder Returns
– **Total stockholder returns:** $3.5 billion in Q2 2025, which includes:
– **Common stock repurchases:** $2.5 billion.
– **Cash dividends:** $996 million, as part of an ongoing stockholder return authorization of up to $14.0 billion.
– Total cumulative stockholder returns since the initiation of the program reached **$38.3 billion**, comprising **$32.3 billion** in repurchases and **$6.0 billion** in dividends.

## Operational Metrics
– **Postpaid phone churn:** 0.90%, which is an increase of **10 basis points** year-over-year.
– **Prepaid net customer additions:** 39,000, declining by **140,000** (down **78%**) year-over-year.
– **Prepaid churn rate:** 2.65%, which increased by **11 basis points** year-over-year.
– **Total 5G broadband customers:** Rose to **7.3 million**.

## Industry Recognition
– T-Mobile has been recognized as the “Best Mobile Network” by Ookla for the second consecutive year.
– The company was awarded “Best Overall Experience” by Opensignal, noted for its download speeds being nearly **200%** faster than the nearest competitor and upload speeds approximately **65%** faster.

## Full-Year 2025 Guidance Changes
– **Postpaid net customer additions:** Revised upward to 6.1 million to 6.4 million, up from the previous estimate of 5.5 million to 6.0 million.
– **Core Adjusted EBITDA guidance:** Expected to be between **$33.3 billion** and **$33.7 billion**.
– **Net cash provided by operating activities:** Estimated to be between **$27.1 billion** and **$27.5 billion**.
– **Adjusted Free Cash Flow:** Forecasted between **$17.6 billion** and **$18.0 billion**.

### Conclusion
T-Mobile’s Q2 2025 financial performance emphasizes strong growth in customer additions, a rise in service revenues, and substantial stockholder returns, reaffirming its position as a leader in the wireless communications industry. The adjustments to the company’s 2025 guidance align with its optimistic outlook as it continues its investment in customer experience and network performance upgrades.

### Condensed Consolidated Statements of Income

### Condensed Consolidated Balance Sheets