T-Mobile US Inc (TMUS) Third Quarter (Q3) 2025 Financial Results Analysis
$TMUS (T-Mobile US Inc) reported its financial results for the third quarter of 2025 (ended September 30, 2025) on October 23, 2025, before the market opened. The company exceeded expectations with total revenue of $21.96 billion (+9% YoY, vs. $21.88 billion estimated, +0.4%) and services revenue of $18.24 billion (+9% YoY). GAAP diluted EPS was $2.41 (vs. $2.40 estimated, slight beat +0.4%). GAAP net income was $2.71 billion. T-Mobile delivered record postpaid customer growth (2.3 million net additions, +903K phones), driven by its leadership in 5G and value. However, shares fell ~1.1% in pre-market trading to ~$225, on concerns about intensified competition and leadership changes (new CEO Srini Gopalan in November).
Below is a detailed structured analysis. Data comes from the official press release, 10-Q, and earnings call transcript.
1. Key Consolidated Results
$TMUS (T-Mobile US Inc) demonstrated momentum in a competitive wireless market, with stable customer growth and ARPU, driven by 5G differentiation and Go5G plans. The focus on lean metrics highlights profitability, with shareholder returns of $3.5 billion in Q3.
Growth: Postpaid customers ~130M; YTD postpaid phone nets ~2.5M. CEO Mike Sievert emphasized: “Q3 is just another proof point that the Un-carrier strategy is working, with wider differentiation.”
2. Segment Analysis
$TMUS (T-Mobile US Inc) generated balanced growth across channels, with postpaid leading with net additions and ARPU up, offsetting flat prepaid. Broadband (5G Home Internet) was strong with 1.4M nets YTD.
Notes: Postpaid revenue engine; broadband upside with fiber JVs. YTD: Postpaid accounts +3.4M. CFO Pete Osvaldik noted: “Our sustainable growth engine translates customer leadership into profitable financials.”
3. Cash Flow, Balance Sheet and Other Indicators
$TMUS (T-Mobile US Inc) maintains a solid balance sheet with strong net cash ops for 5G capex and returns ($41.8B cumulative since inception). Leverage is low post-UScellular deal.
Net Cash from Operating Activities YTD: Fuerte; FY guidance $27.8B-$28.0B (raised).
Capex Q3: ~$2.6B (up 35% por 5G/fiber).
Repurchases YTD: Parte de $14B auth; Q3 $2.5B.
Balance Sheet: Cash ~$5B estimated; net debt/EBITDA ~1.5x; shares 1.118B. Interest coverage >10x. Dividend yield ~1.2% ($0.88/share annualized).
CEO Sievert commented: “Extending industry-leading growth in sustainable and profitable financials.”
4. Full Year 2025 Guide and Outlook
$TMUS (T-Mobile US Inc) raised FY2025 guidance for a record Q3, with a focus on postpaid and broadband. For Q4, customer adds and EBITDA improved.
Outlook 2026: Guidance inicial en year-end call; +8-10% service revenue growth por 5G/broadband; upside en UScellular integration y AI experiences. Riesgos: Competencia (AT&T/Verizon pricing), regulatorio, capex inflation.
5. Conclusion and Implications
$TMUS (T-Mobile US Inc) Q3 2025 results highlight its leadership in wireless, with revenue and EPS beats, record customer growth, and raised guidance, offsetting the stock dip with solid fundamentals. The Un-carrier strategy and 5G position TMUS for profitable expansion in broadband and postpaid. Long-term, fiber JVs and returns ($14B auth) support the upside. Recommendation: Buy/Accumulate for growth investors (P/E ~18x, yield ~1.2%); catalysts in Q4 adds and 2026 guidance.
This analysis is based on public data and is not financial advice. It is for informational purposes only and does not constitute an investment recommendation.
$TMUS (T-Mobile US Inc) reported its financial results for the third quarter of 2025 (ended September 30, 2025) on October 23, 2025, before the market opened. The company exceeded expectations with total revenue of $21.96 billion (+9% YoY, vs. $21.88 billion estimated, +0.4%) and services revenue of $18.24 billion (+9% YoY). GAAP diluted EPS was $2.41 (vs. $2.40 estimated, slight beat +0.4%). GAAP net income was $2.71 billion. T-Mobile delivered record postpaid customer growth (2.3 million net additions, +903K phones), driven by its leadership in 5G and value. However, shares fell ~1.1% in pre-market trading to ~$225, on concerns about intensified competition and leadership changes (new CEO Srini Gopalan in November).
Below is a detailed structured analysis. Data comes from the official press release, 10-Q, and earnings call transcript.
1. Key Consolidated Results$TMUS (T-Mobile US Inc) demonstrated momentum in a competitive wireless market, with stable customer growth and ARPU, driven by 5G differentiation and Go5G plans. The focus on lean metrics highlights profitability, with shareholder returns of $3.5 billion in Q3.
| Financial Metrics | Q3 2025 (GAAP/Adjusted) | YoY Growth | vs. Estimates | Notes |
| Total Income | $21.96 billion | +9% | Overcome (+0.4%) | Includes equipment sales; FX neutral. |
| Service Income | $18.24 billion | +9% | N/A | Postpaid +10%; broadband contributes. |
| Net Income GAAP | $2.71 billion | N/A | N/A | Share dilution 1.118B; tax rate ~21%. |
| GAAP EPS (Diluted) | $2.41 | N/A | $2.40 (exceeded +0.4%) | Similar fit; excludes one-offs. |
| Core Adjusted EBITDA | N/A (Q3 not detailed) | N/A | N/A | FY guidance raised; Q3 strong implied. |
| Postpaid Phone Net Additions | 903K | +18% | N/A | Best Q3 in >10 years; churn 0.89%. |
| Total Postpaid Net Additions | 2.3 million | Record | N/A | Incluye 1.4M broadband; leadership. |
| Stockholder Returns Q3 | $3.5 billion | N/A | N/A | $2.5B repurchases; $987M dividends. |
Growth: Postpaid customers ~130M; YTD postpaid phone nets ~2.5M. CEO Mike Sievert emphasized: “Q3 is just another proof point that the Un-carrier strategy is working, with wider differentiation.”
2. Segment Analysis$TMUS (T-Mobile US Inc) generated balanced growth across channels, with postpaid leading with net additions and ARPU up, offsetting flat prepaid. Broadband (5G Home Internet) was strong with 1.4M nets YTD.
| Segment | % of Service Revenue (approx.) | Q3 YoY Revenue Growth | Net Customer Additions Q3 | Key Notes |
| Postpaid | ~75% | +10% | 2.3M (accounts + phones) | ARPU +2%; Go5G uptake; churn bajo. |
| Prepaid (Metro) | ~15% | Flat | +200K | Stable; focus on value plans. |
| Wholesale | ~10% | +5% | N/A | 5G partnerships; stable demand. |
| Broadband (5G Home/ Fiber JV) | Emerging ~5% | +50% | +400K | Récord; JV Lumos/Metronet $932M invest. |
| Total Portfolio | 100% | +9% | 2.9M total nets | 5G leadership; industry-best growth. |
3. Cash Flow, Balance Sheet and Other Indicators$TMUS (T-Mobile US Inc) maintains a solid balance sheet with strong net cash ops for 5G capex and returns ($41.8B cumulative since inception). Leverage is low post-UScellular deal.
Net Cash from Operating Activities YTD: Fuerte; FY guidance $27.8B-$28.0B (raised).
Capex Q3: ~$2.6B (up 35% por 5G/fiber).
Repurchases YTD: Parte de $14B auth; Q3 $2.5B.
Balance Sheet: Cash ~$5B estimated; net debt/EBITDA ~1.5x; shares 1.118B. Interest coverage >10x. Dividend yield ~1.2% ($0.88/share annualized).
CEO Sievert commented: “Extending industry-leading growth in sustainable and profitable financials.”
4. Full Year 2025 Guide and Outlook$TMUS (T-Mobile US Inc) raised FY2025 guidance for a record Q3, with a focus on postpaid and broadband. For Q4, customer adds and EBITDA improved.
| Metric | MY 2025 | Notes |
| Postpaid Net Customer Additions | 7.2 - 7.4 million | Raised from 6.1-6.4M (+1.05M midpoint). |
| Core Adjusted EBITDA | $33.7 - $33.9 billion | Raised $300M midpoint; synergies intactas. |
| Net Cash from Ops | $27.8 - $28.0 billion | Raised; capex ~$10B. |
| Stockholder Returns | Up to $14 billion | Ongoing repurchases/dividends. |
| Postpaid Phone Churn | <0.85% | Maintained; industry-low. |
| Broadband Net Additions | 5.5 - 6.0 million | Raised; 5G Home + fiber. |
Outlook 2026: Guidance inicial en year-end call; +8-10% service revenue growth por 5G/broadband; upside en UScellular integration y AI experiences. Riesgos: Competencia (AT&T/Verizon pricing), regulatorio, capex inflation.
5. Conclusion and Implications$TMUS (T-Mobile US Inc) Q3 2025 results highlight its leadership in wireless, with revenue and EPS beats, record customer growth, and raised guidance, offsetting the stock dip with solid fundamentals. The Un-carrier strategy and 5G position TMUS for profitable expansion in broadband and postpaid. Long-term, fiber JVs and returns ($14B auth) support the upside. Recommendation: Buy/Accumulate for growth investors (P/E ~18x, yield ~1.2%); catalysts in Q4 adds and 2026 guidance.
This analysis is based on public data and is not financial advice. It is for informational purposes only and does not constitute an investment recommendation.