T-Mobile US (NASDAQ: TMUS) posts Q2 2026 growth, raises cash flow targets
Rhea-AI Filing Summary
T-Mobile US, Inc. reported strong results for the quarter ended June 30, 2026. Total service revenues were $19.0 billion, up 9% year-over-year, with postpaid service revenues of $15.9 billion, up 13%. Net income was $3.2 billion, up 1%, and diluted EPS was $2.99, up 5%, including UScellular merger-related costs of $146 million after tax, or $0.14 per share, and network restructuring costs of $46 million after tax, or $0.04 per share. Core Adjusted EBITDA reached $9.5 billion, up 12%. Net cash provided by operating activities was $7.5 billion, up 7%, and Adjusted Free Cash Flow was $4.8 billion, up 4%.
Operationally, postpaid ARPA was $152.91, up 2% year-over-year, with 277 thousand postpaid net account additions and postpaid account churn of 0.99%. The company highlighted a record wireless NPS score of 46 and multiple third-party network awards. For 2026, T-Mobile reaffirmed guidance for postpaid net account additions of 950 thousand to 1.05 million and Core Adjusted EBITDA of $37.1–$37.5 billion, while raising guidance for net cash provided by operating activities to $28.4–$28.8 billion and Adjusted Free Cash Flow to $18.4–$18.8 billion, with capital expenditures expected at approximately $10.0 billion. The company returned $3.3 billion to stockholders in Q2 2026, including $2.2 billion of share repurchases and $1.1 billion of cash dividends, bringing cumulative stockholder returns since Q3 2022 to $54.6 billion.
Positive
- None.
Negative
- None.
Filing Explained
At June 30, repurchases had reduced outstanding common shares to 1,074,817,571, while the $18.2 billion return program remained authorized through December 31, 2026.
The July 23 Form 8-K furnishes T-Mobile’s second-quarter results and states that the information is not deemed filed under Section 18; its accompanying tables report 11.4 million common shares repurchased during the quarter and 1,074,817,571 common shares outstanding at June 30, 2026.
The board’s stockholder-return authorization is for up to
At
The filing identifies a
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Total service revenues: $18,983 million
Postpaid service revenues: $15,853 million
Net income: $3,239 million
+6 more
9 metrics
Total service revenues
$18,983 million
Q2 2026 total service revenues; 8.9% year-over-year increase
Postpaid service revenues
$15,853 million
Q2 2026 postpaid service revenues; 12.6% year-over-year increase
Net income
$3,239 million
Q2 2026 net income; 0.5% year-over-year increase
Diluted EPS
$2.99
Q2 2026 diluted earnings per share; 5.3% year-over-year increase
Core Adjusted EBITDA
$9,537 million
Q2 2026 Core Adjusted EBITDA; 11.7% year-over-year increase
Net cash from operating activities
$7,500 million
Q2 2026 net cash provided by operating activities; 7.3% year-over-year increase
Adjusted Free Cash Flow
$4,797 million
Q2 2026 Adjusted Free Cash Flow; 4.4% year-over-year increase
Total postpaid accounts
34,700 thousand
Total postpaid accounts at June 30, 2026
Net debt (excl. tower obligations)
$84.1 billion
Net debt excluding tower obligations at June 30, 2026
Key Terms
Core Adjusted EBITDA, Adjusted Free Cash Flow, Postpaid ARPA, Postpaid account churn, +2 more
6 terms
Core Adjusted EBITDA financial
"Core Adjusted EBITDA increased 12% year-over-year to $9.5 billion."
A measure of a company's recurring operating performance that starts with earnings before interest, taxes, depreciation and amortization (EBITDA) and then removes one-time items, unusual charges, and results from non-core activities to show the business’s normal cash-generating strength. Investors use it like a cleaned-up snapshot—similar to judging a rental property by its regular rent after excluding one-off repairs or sale gains—because it helps compare profit trends and underlying health without distortions from temporary events.
Adjusted Free Cash Flow financial
"Adjusted Free Cash Flow increased 4% year-over-year to $4.8 billion."
Adjusted free cash flow is the amount of money a company generates from its operations after accounting for essential expenses and investments, like maintaining or upgrading equipment. It shows how much cash is truly available to grow the business, pay debts, or return to shareholders, helping investors see the company's financial health more clearly.
Postpaid ARPA financial
"Postpaid ARPA of $152.91 grew 2% year-over-year."
Postpaid ARPA measures the average monthly revenue a company earns from each postpaid customer account—customers who receive a bill after using services—calculated by dividing total postpaid revenue by the number of postpaid accounts. For investors it’s a quick signal of how much money each billed customer contributes, like checking average spend per shopper; rising postpaid ARPA points to stronger monetization or higher-value services, while declines can signal pricing pressure or downgrades.
Postpaid account churn financial
"Postpaid account churn of 0.99%."
Net debt (excluding tower obligations) financial
"Net debt, excluding tower obligations, at the end of Q2 2026 was $84.1 billion."
Special Items financial
"Special Items include UScellular merger-related costs, network restructuring initiative costs, certain legal-related expenses and recoveries."
Special items are unusual or infrequent gains or losses that a company reports separately from its regular operating profit, such as restructuring costs, asset write-downs, legal settlements, or one-time gains from selling a business. Investors pay attention because these items can make reported profits look better or worse than the company’s ongoing performance—like a homeowner’s one-off roof repair affecting a single month’s budget but not the household’s regular income and expenses.
Offering Details
IPO/secondary/shelf/ATM
Offering
Offering Type
IPO/secondary/shelf/ATM
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What were T-Mobile US (TMUS) Q2 2026 service and postpaid revenues?
T-Mobile generated $18.983 billion in total service revenues in Q2 2026, up 8.9% year-over-year. Postpaid service revenues were $15.853 billion, an increase of 12.6% compared with Q2 2025, reflecting higher average postpaid accounts and higher postpaid ARPA.
How profitable was T-Mobile US (TMUS) in Q2 2026?
Net income was $3.239 billion in Q2 2026, up 0.5% year-over-year, and diluted EPS was $2.99, up 5.3%. Results included UScellular merger-related costs of $146 million after tax ($0.14 per share) and network restructuring costs of $46 million after tax ($0.04 per share).
What were T-Mobile US (TMUS) Q2 2026 postpaid account metrics?
T-Mobile reported 277 thousand postpaid net account additions in Q2 2026 and ended the period with 34.7 million total postpaid accounts. Postpaid account churn was 0.99%, and postpaid ARPA reached $152.91, up 2% year-over-year, supported by more customers per account and higher fee revenue.
How did T-Mobile US (TMUS) Q2 2026 cash flow and free cash flow perform?
Net cash provided by operating activities was $7.5 billion in Q2 2026, up 7.3% year-over-year. Adjusted Free Cash Flow was $4.797 billion, up 4.4%, giving an Adjusted Free Cash Flow margin of 25.3%, calculated as Adjusted Free Cash Flow divided by service revenues.
What 2026 guidance did T-Mobile US (TMUS) provide or update?
For 2026, T-Mobile expects 950 thousand to 1.05 million postpaid net account additions and Core Adjusted EBITDA of $37.1–$37.5 billion. It raised guidance for net cash from operations to $28.4–$28.8 billion and Adjusted Free Cash Flow to $18.4–$18.8 billion, with capital expenditures around $10.0 billion.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): July 23, 2026
(Exact Name of Registrant as Specified in Charter)
| (State or other jurisdiction | (Commission File Number) | (I.R.S. Employer | ||||||||||||
of incorporation) | Identification No.) | |||||||||||||
(Address of principal executive offices)
(Zip Code)
Registrant’s telephone number, including area code: (425 ) 378-4000
(Former Name or Former Address, if Changed Since Last Report):
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 — Results of Operations and Financial Condition
On July 23, 2026, T-Mobile US, Inc. (the “Company”) issued a press release announcing the financial and operating results of the Company for the quarter ended June 30, 2026. The text of the press release and accompanying Investor Factbook are furnished as Exhibits 99.1 and 99.2 and incorporated herein by reference.
The information in Item 2.02 to this Current Report on Form 8-K, including Exhibits 99.1 and 99.2, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing.
Item 9.01 — Financial Statements and Exhibits
(d) Exhibits:
| Exhibit | Description | |||||||
99.1 | Press release, dated July 23, 2026, entitled "T-Mobile Delivers Continued Strong Account Growth, Translating into Industry-Leading Service Revenue Growth Driven by Widening Differentiation" | |||||||
99.2 | Investor Factbook of T-Mobile US, Inc. Second Quarter 2026 Results | |||||||
| 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) | |||||||
| SIGNATURES | |||||||||||
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
T-MOBILE US, INC. | |||||||||||
| July 23, 2026 | /s/ Peter Osvaldik | ||||||||||
| Peter Osvaldik Chief Financial Officer | |||||||||||
EXHIBIT 99.1
T-Mobile Delivers Continued Strong Account Growth, Translating into Industry-Leading Service Revenue Growth Driven by Widening Differentiation
Q2 Results, Alongside Record-High Wireless NPS Score, Another Proof Point that the Un-carrier’s Winning Formula of Best Network, Best Value and Best Experiences Drives Durable and Profitable Growth
Continued Strong Account Growth and Deepening Customer Relationships Fueled by Widening Differentiation
•Postpaid Average Revenue Per Account (“ARPA”) of $152.91 grew 2% year-over-year
•Postpaid net account additions of 277 thousand decreased 13% year-over-year
Translating Strong Account Growth into Durable and Profitable Financial Growth
•Service revenues of $19.0 billion grew 9% year-over-year, industry-leading growth(1)
•Postpaid service revenues of $15.9 billion grew 13% year-over-year, industry-leading growth
•Strong Net income of $3.2 billion grew 1% year-over-year and included the impact of UScellular merger-related costs, including accelerated depreciation, net of tax, of $146 million
•Diluted earnings per share (“EPS”) of $2.99 grew 5% year-over-year and included the impact of UScellular merger-related costs, including accelerated depreciation, net of tax, of $0.14
•Core Adjusted EBITDA(2) of $9.5 billion grew 12% year-over-year, industry-leading growth
•Net cash provided by operating activities of $7.5 billion grew 7% year-over-year
•Adjusted Free Cash Flow(2) of $4.8 billion grew 4% year-over-year
Extending Overall Network Lead with Best Assets, Customer Centricity and Technology Leadership
•T-Mobile achieved a record wireless NPS score of 46, the highest-ever NPS for a big three carrier, according to HarrisX survey data(3)
•Ookla awarded T-Mobile with the Best Mobile Network in its Speedtest Connectivity report for the third consecutive time(4)
•T-Mobile yet again recognized as the most awarded network by Opensignal, sweeping all Quality of Experience and Network Performance categories, while also leading in 5G Coverage and Application Experience categories(5)
•T-Mobile awarded Test Champion by P3 in their Q2 2026 US Mobile Benchmark, sweeping all 13 award categories, including AI Services Champion(6)
Bellevue, WA — July 23, 2026 — T-Mobile US, Inc. (NASDAQ: TMUS) reported second quarter 2026 results today, delivering strong postpaid net account and postpaid ARPA growth. The company’s robust account and ARPA growth contributed to industry-leading service revenue growth, including Postpaid service revenue growth, strong Net income, industry-leading Core Adjusted EBITDA growth, strong Net cash provided by operating activities margin and industry-leading Adjusted Free Cash Flow margin.
“Q2 marked another strong quarter of execution as we continued making meaningful progress toward our ambitious 2026 and 2027 objectives, including achieving our highest-ever wireless NPS score of 46,” said Srini Gopalan, CEO of T-Mobile. “Our strategy is simple: give customers the best network, the best value, and the best experience, all in one place. That’s how we eliminate trade-offs for our customers, and that’s what sets us apart, and our results represent another proof point that our strategy is working. Our differentiated approach is all about creating durable growth opportunities that no one else in the industry can match. As our unmatched value proposition continues to resonate with customers, and as we continue to invest in our network and our technology, we see a tremendous runway for growth across both wireless and broadband, as well as new businesses. We’re just getting started.”
___________________________________________________________
(1)Industry-leading claims are based on consensus expectations if results are not yet reported.
(2)Core Adjusted EBITDA and Adjusted Free Cash Flow are non-GAAP financial measures. These non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information provided in accordance with GAAP. Reconciliations for these non-GAAP financial measures to the most directly comparable GAAP financial measures are provided in the Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures tables. We are not able to forecast Net income on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting certain items that affect Net income, including, but not limited to, Special Items, Income tax expense and Interest expense. Core Adjusted EBITDA should not be used to predict Net income as the difference between this measure and Net income is variable.
(3)HarrisX Mobile Insights, Q2 2026. Net Promoter Score® (NPS®) is a registered trademark of Bain & Company.
(4)Ookla® U.S. Speedtest Connectivity Report H1 2026.
(5)Mobile Network Experience Report July 2026 © Opensignal Limited.
(6)P3 US Mobile Benchmark Q2 2026.
1
Continued Strong Account Growth and Deepening Customer Relationships Fueled by Widening Differentiation
•Postpaid ARPA of $152.91 grew 2% year-over-year.
•Postpaid net account additions of 277 thousand decreased 41 thousand, or 13%, year-over-year. Postpaid account churn of 0.99%.
| Quarter | Six Months Ended June 30, | ||||||||||||||||||||||||||||
| (in thousands, except churn and ARPA) | Q2 2026 | Q1 2026 | Q2 2025 | 2026 | 2025 | ||||||||||||||||||||||||
| Postpaid net account additions | 277 | 217 | 318 | 494 | 523 | ||||||||||||||||||||||||
Total postpaid accounts, end of period (1)(2)(3) | 34,700 | 34,439 | 31,502 | 34,700 | 31,502 | ||||||||||||||||||||||||
| Postpaid account churn | 0.99 | % | 1.04 | % | 0.92 | % | 1.02 | % | 0.93 | % | |||||||||||||||||||
| Postpaid ARPA | $ | 152.91 | $ | 151.93 | $ | 149.87 | $ | 152.42 | $ | 148.06 | |||||||||||||||||||
(1)In the second quarter of 2026, Metronet agreed to repurchase certain customer accounts, resulting in a base adjustment to decrease postpaid accounts by 16,000. This base adjustment had no impact on postpaid net account additions.
(2)In the first quarter of 2026, we recognized a base adjustment to decrease postpaid accounts by 18,000, primarily due to combining certain business accounts that have multiple billing account numbers. This base adjustment had no impact on postpaid net account additions.
(3)In the second quarter of 2025, we acquired 85,000 postpaid accounts from Lumos. This base adjustment had no impact on postpaid net account additions.
Translating Strong Account Growth into Durable and Profitable Financial Growth
•Total service revenues increased 9% year-over-year to $19.0 billion, and Postpaid service revenues increased 13% year-over-year to $15.9 billion.
•Net income increased 1% year-over-year to $3.2 billion and included the impact of UScellular merger-related costs, including accelerated depreciation, net of tax, of $146 million.
•Diluted EPS increased 5% year-over-year to $2.99 per share and included the impact of UScellular merger-related costs, including accelerated depreciation, net of tax, of $0.14.
•Core Adjusted EBITDA increased 12% year-over-year to $9.5 billion.
•Net cash provided by operating activities increased 7% year-over-year to $7.5 billion.
•Cash purchases of property and equipment, including capitalized interest, increased 13% year-over-year to $2.7 billion.
•Adjusted Free Cash Flow increased 4% year-over-year to $4.8 billion.
•Stockholder Returns of $3.3 billion in Q2 2026, including common stock repurchases of $2.2 billion and cash dividends of $1.1 billion as part of the current stockholder return authorization of up to $18.2 billion through December 31, 2026, for cumulative stockholder returns(1) of $54.6 billion since program inception, split across repurchases of $44.2 billion and cash dividends of $10.4 billion. In Q3 2026 through July 17, 2026, the company repurchased an additional $392 million in common stock, totaling $2.5 billion in total shares repurchased since the beginning of Q2 2026.
| Quarter | Six Months Ended June 30, | Q2 2026 vs. Q1 2026 | Q2 2026 vs. Q2 2025 | YTD 2026 vs. YTD 2025 | |||||||||||||||||||||||||||||||||||||||||||
| (in millions, except EPS) | Q2 2026 | Q1 2026 | Q2 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||
| Total service revenues | $ | 18,983 | $ | 18,831 | $ | 17,438 | $ | 37,814 | $ | 34,363 | 0.8 | % | 8.9 | % | 10.0 | % | |||||||||||||||||||||||||||||||
| Postpaid service revenues | 15,853 | 15,629 | 14,078 | 31,482 | 27,672 | 1.4 | % | 12.6 | % | 13.8 | % | ||||||||||||||||||||||||||||||||||||
| Total revenues | 22,791 | 23,107 | 21,132 | 45,898 | 42,018 | (1.4) | % | 7.9 | % | 9.2 | % | ||||||||||||||||||||||||||||||||||||
| Net income | 3,239 | 2,504 | 3,222 | 5,743 | 6,175 | 29.4 | % | 0.5 | % | (7.0) | % | ||||||||||||||||||||||||||||||||||||
| Diluted EPS | 2.99 | 2.27 | 2.84 | 5.26 | 5.42 | 31.7 | % | 5.3 | % | (3.0) | % | ||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | 9,537 | 9,241 | 8,547 | 18,778 | 16,806 | 3.2 | % | 11.6 | % | 11.7 | % | ||||||||||||||||||||||||||||||||||||
| Core Adjusted EBITDA | 9,537 | 9,240 | 8,541 | 18,777 | 16,799 | 3.2 | % | 11.7 | % | 11.8 | % | ||||||||||||||||||||||||||||||||||||
Net cash provided by operating activities | 7,500 | 7,222 | 6,992 | 14,722 | 13,839 | 3.8 | % | 7.3 | % | 6.4 | % | ||||||||||||||||||||||||||||||||||||
| Cash purchases of property and equipment, including capitalized interest | 2,703 | 2,623 | 2,396 | 5,326 | 4,847 | 3.0 | % | 12.8 | % | 9.9 | % | ||||||||||||||||||||||||||||||||||||
Adjusted Free Cash Flow | 4,797 | 4,599 | 4,596 | 9,396 | 8,992 | 4.3 | % | 4.4 | % | 4.5 | % | ||||||||||||||||||||||||||||||||||||
(1) Beginning in Q3 2022 through June 30, 2026.
2
Extending Overall Network Lead with Best Assets, Customer Centricity and Technology Leadership
•T-Mobile achieved a record wireless NPS score of 46, the highest-ever NPS for a big three carrier, according to HarrisX survey data
•Ookla awarded T-Mobile with the Best Mobile Network in its Speedtest Connectivity report for the third consecutive time
•T-Mobile yet again recognized as the most awarded network by Opensignal, sweeping all Quality of Experience and Network Performance categories, while also leading in 5G Coverage and Application Experience categories
•T-Mobile was awarded Test Champion by P3 in their Q2 2026 US Mobile Benchmark, sweeping all 13 award categories, including AI Services Champion
See 5G device, coverage, and access details at T-Mobile.com. NPS: HarrisX Mobile Insights, Q2 2026. Net Promoter Score® (NPS®) is a registered trademark of Bain & Company. Ookla Award: Ookla® U.S. Speedtest Connectivity Report H1 2026. Opensignal Awards: Mobile Network Experience Report July 2026 © Opensignal Limited. P3 Awards: P3 US Mobile Benchmark Q2 2026.
Raising Cash Flow Guidance, Reiterating Strong 2026 Account and Profitability Guidance
•Postpaid net account additions are expected to be between 950 thousand and 1.05 million.
•Core Adjusted EBITDA, which is Adjusted EBITDA less lease revenues, is expected to be between $37.1 billion and $37.5 billion.
•Net cash provided by operating activities, including net payments for UScellular merger-related costs, is now expected to be between $28.4 billion and $28.8 billion, an increase from prior guidance of $28.1 billion to $28.7 billion.
•Cash purchases of property and equipment, including capitalized interest, are expected to be approximately $10.0 billion.
•Adjusted Free Cash Flow, including net payments for UScellular merger-related costs, is now expected to be between $18.4 billion and $18.8 billion, an increase from prior guidance of $18.1 billion to $18.7 billion. Adjusted Free Cash Flow guidance does not assume any material net cash inflows from securitization.
| (in millions, except Postpaid net account additions and Effective tax rate) | Previous | Current | Change (Mid-point) | |||||||||||||||||||||||
| Postpaid net account additions (thousands) | 950 | 1,050 | 950 | 1,050 | — | |||||||||||||||||||||
Net income (1) | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||||||
| Effective tax rate | 25% | 26% | 25% | 26% | — | |||||||||||||||||||||
Core Adjusted EBITDA (2) | $37,100 | $37,500 | $37,100 | $37,500 | $— | |||||||||||||||||||||
| Net cash provided by operating activities | 28,100 | 28,700 | 28,400 | 28,800 | 200 | |||||||||||||||||||||
Capital expenditures (3) | ~10,000 | ~10,000 | — | |||||||||||||||||||||||
| Adjusted Free Cash Flow | 18,100 | 18,700 | 18,400 | 18,800 | 200 | |||||||||||||||||||||
(1)T-Mobile is not able to forecast Net income on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting certain items that affect GAAP Net income, including, but not limited to, Special Items, Income tax expense and Interest expense. Core Adjusted EBITDA should not be used to predict Net income as the difference between this measure and Net income is variable.
(2)Management uses Core Adjusted EBITDA as a measure to monitor the financial performance of company operations, excluding the impact of lease revenues from related device financing programs.
(3)Capital expenditures means cash purchases of property and equipment, including capitalized interest.
3
Financial Results
For more details on T-Mobile’s Q2 2026 financial results, including the Investor Factbook with detailed financial tables, please visit T-Mobile US, Inc.’s Investor Relations website at https://investor.t-mobile.com.
Earnings Call Information
Date/Time
•Thursday, July 23, 2026, at 7:30 a.m. (EDT)
Pre-registration link for dial-in access and personalized PIN
Participants can pre-register for the conference call here in order to receive dial-in information and a personalized PIN. This option is recommended to avoid wait times when joining the call.
Access via Phone (audio only)
Please plan on accessing the call 10 minutes prior to the scheduled start time.
•Toll Free: 1-844-539-1320
•International: 1-412-652-1263
Access via Webcast
The earnings call will be broadcasted live and can be replayed via the Investor Relations website at https://investor.t-mobile.com.
Submit Questions via X
Send a post to @TMobileIR or @SriniGopalan using $TMUS.
Contact Information
•Media Relations: mediarelations@t-mobile.com
•Investor Relations: investor.relations@t-mobile.com
T-Mobile Social Media
Investors and others should note that we announce material financial and operational information to our investors using our investor relations website (https://investor.t-mobile.com), newsroom website (https://t-mobile.com/news), press releases, SEC filings and public conference calls and webcasts. We also intend to use certain social media accounts as a means of disclosing information about us and our services and for complying with our disclosure obligations under Regulation FD (the @TMobileIR X account (https://x.com/TMobileIR), the @SriniGopalan X account (https://x.com/SriniGopalan) and our CEO’s LinkedIn account (https://www.linkedin.com/in/srini-gopalan/), both of which Mr. Gopalan also uses as a means for personal communications and observations, and the @TMobileCFO X account (https://x.com/tmobilecfo), and our CFO’s LinkedIn account (https://www.linkedin.com/in/peter-osvaldik-3887394), both of which Mr. Osvaldik also uses as a means for personal communications and observations). The information we post through these social media channels may be deemed material. Accordingly, investors should monitor these social media channels in addition to following our press releases, SEC filings and public conference calls and webcasts. The social media channels that we intend to use as a means of disclosing the information described above may be updated from time to time as listed on our investor relations website.
About T-Mobile US, Inc.
As the supercharged Un-carrier, T-Mobile US, Inc. (NASDAQ: TMUS) is powered by an award-winning 5G network that connects more people, in more places, than ever before. With T-Mobile’s unique value proposition of best network, best value and best experiences, the Un-carrier is redefining connectivity and fueling competition while continuing to drive the next wave of innovation in wireless and beyond. Headquartered in Bellevue, Wash., T-Mobile provides services through its subsidiaries and operates its flagship brands, T-Mobile, Metro by T-Mobile and Mint Mobile. For more information, visit https://www.t-mobile.com.
4
Forward-Looking Statements
This communication includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including information concerning T-Mobile US, Inc.’s future results of operations, are forward-looking statements. These forward-looking statements are generally identified by the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “could” or similar expressions.
Forward-looking statements are based on current expectations and assumptions, which are subject to risks and uncertainties and may cause actual results to differ materially from the forward-looking statements. Important factors that could affect future results and cause those results to differ materially from those expressed in the forward-looking statements include, among others, the following: competition, industry consolidation and changes in the market for wireless communications services and other forms of connectivity; cyberattacks, disruptions, data loss or other security breaches; our inability to adopt and deploy network technologies in a timely and effective manner; our inability to effectively execute our digital initiatives and drive customer and employee adoption of emerging technologies; our inability to retain or motivate key personnel, hire qualified personnel or maintain our corporate culture; system failures and business disruptions, allowing for unauthorized use of or interference with our network and other systems; the scarcity and cost of additional wireless spectrum, and regulations relating to spectrum use; the timing and effects of any pending and future acquisition, investment, joint venture, merger or divestiture involving us, including our inability to obtain any required regulatory approval necessary to consummate any such transactions or to achieve the expected benefits of such transactions; adverse economic, political or market conditions in the U.S. and international markets, including changes resulting from increases in oil prices, inflation or interest rates, tariffs and trade restrictions, supply chain disruptions, fluctuations in global currencies, immigration policies, and impacts of geopolitical instability, such as global conflict, wars and further escalations thereof; operational delays, higher procurement costs, such as memory chip cost impacts on smartphones, and operational costs, and increased regulatory and compliance complexities, for example, as a result of changes to trade policies, including higher tariffs, restrictions and other economic disincentives to trade; our inability to successfully deliver new products and services; any failure or inability of our third parties (including key suppliers) to provide products or services for the operation of our business; sociopolitical volatility and polarization and risks related to environmental, social and governance matters; our substantial level of indebtedness and our inability to service our debt obligations in accordance with their terms; changes in the credit market conditions, credit rating downgrades or an inability to access debt markets; our inability to maintain effective internal control over financial reporting; compliance with the current regulatory framework, including our national security obligations, and any changes in regulations or in the regulatory framework under which we operate; laws and regulations relating to the handling of privacy, data protection and artificial intelligence; unfavorable outcomes of and increased costs from existing or future regulatory or legal proceedings; difficulties in protecting our intellectual property rights or if we infringe on the intellectual property rights of others; our offering of regulated financial services products and exposure to a wide variety of state and federal regulations; new or amended tax laws or regulations or administrative interpretations and judicial decisions affecting the scope or application of tax laws or regulations; our wireless licenses, including those controlled through leasing agreements, are subject to renewal and may be revoked; our exclusive forum provision as provided in our Certificate of Incorporation; interests of Deutsche Telekom AG (“DT”), our controlling stockholder, which may differ from the interests of other stockholders; our current and future stockholder return programs may not be fully utilized, and our share repurchases and dividend payments pursuant thereto may fail to have the desired impact on stockholder value; future sales of our common stock by DT and our inability to attract additional equity financing outside the United States due to foreign ownership limitations by the Federal Communications Commission; and other risks as disclosed in our most recent annual report on Form 10-K, and subsequent Forms 10-Q and other filings with the Securities and Exchange Commission. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law.
5
T-Mobile US, Inc.
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures
(Unaudited)
This Press Release includes non-GAAP financial measures, including Adjusted EBITDA, Core Adjusted EBITDA, Adjusted Free Cash Flow and Adjusted Free Cash Flow margin. The non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information provided in accordance with GAAP. Reconciliations for the non-GAAP financial measures to the most directly comparable GAAP financial measures are provided below. T-Mobile is not able to forecast Net income on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting certain items that affect GAAP Net income, including, but not limited to, Special Items, Income tax expense and Interest expense. Adjusted EBITDA and Core Adjusted EBITDA should not be used to predict Net income as the difference between either of these measures and Net income is variable.
Adjusted EBITDA and Core Adjusted EBITDA are reconciled to Net income as follows:
| Quarter | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| (in millions) | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | 2025 | 2026 | |||||||||||||||||||||||||||||||||||||||
| Net income | $ | 2,953 | $ | 3,222 | $ | 2,714 | $ | 2,103 | $ | 2,504 | $ | 3,239 | $ | 6,175 | $ | 5,743 | |||||||||||||||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | 916 | 922 | 924 | 1,012 | 1,031 | 1,055 | 1,838 | 2,086 | |||||||||||||||||||||||||||||||||||||||
| Other expense, net | 46 | 11 | 78 | 89 | 132 | 107 | 57 | 239 | |||||||||||||||||||||||||||||||||||||||
| Income tax expense | 885 | 1,058 | 814 | 532 | 830 | 1,089 | 1,943 | 1,919 | |||||||||||||||||||||||||||||||||||||||
| Operating income | 4,800 | 5,213 | 4,530 | 3,736 | 4,497 | 5,490 | 10,013 | 9,987 | |||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 3,198 | 3,146 | 3,408 | 3,756 | 3,817 | 3,434 | 6,344 | 7,251 | |||||||||||||||||||||||||||||||||||||||
Stock-based compensation (1) | 168 | 178 | 217 | 209 | 203 | 212 | 346 | 415 | |||||||||||||||||||||||||||||||||||||||
| UScellular merger-related costs | 14 | 33 | 73 | 143 | 406 | 182 | 47 | 588 | |||||||||||||||||||||||||||||||||||||||
Network restructuring initiative costs (2) | — | — | — | 93 | 76 | 52 | — | 128 | |||||||||||||||||||||||||||||||||||||||
Legal-related expenses (recoveries), net (3) | 6 | (4) | 8 | 6 | 54 | 16 | 2 | 70 | |||||||||||||||||||||||||||||||||||||||
| Impairment expense | — | — | 278 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Other, net (4) | 73 | (19) | 170 | 504 | 188 | 151 | 54 | 339 | |||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | 8,259 | 8,547 | 8,684 | 8,447 | 9,241 | 9,537 | 16,806 | 18,778 | |||||||||||||||||||||||||||||||||||||||
Lease revenues | (1) | (6) | (4) | (2) | (1) | — | (7) | (1) | |||||||||||||||||||||||||||||||||||||||
| Core Adjusted EBITDA | $ | 8,258 | $ | 8,541 | $ | 8,680 | $ | 8,445 | $ | 9,240 | $ | 9,537 | $ | 16,799 | $ | 18,777 | |||||||||||||||||||||||||||||||
(1)Stock-based compensation includes payroll tax impacts and may not agree to stock-based compensation expense in the Condensed Consolidated Financial Statements.
(2)In Q4 2025, we began implementing network restructuring initiatives as a result of recent technological advancements that enhanced our Customer-Driven Coverage insights. Network restructuring initiative costs consist of network decommissioning and contract termination costs related to the rationalization of our network and backhaul services and the elimination of duplicative costs.
(3)Legal-related expenses (recoveries), net consists of the settlement of certain litigation and compliance costs associated with the August 2021 cyberattack, net of insurance recoveries.
(4)Other, net, primarily consists of certain severance, restructuring and other expenses, gains and losses, not directly attributable to the UScellular acquisition, which are not reflective of T-Mobile’s ongoing core business activities and are, therefore, excluded from Adjusted EBITDA and Core Adjusted EBITDA. Other, net, for the three months ended March 31, 2026 and December 31, 2025, includes $141 million and $390 million, respectively, and $141 million for the six months ended June 30, 2026, of severance and related costs associated with the 2025-2026 workforce transformation and reinvestment initiative. Additionally, Other, net, for both the three and six months ended June 30, 2026, includes $108 million of costs associated with retail initiatives to close certain dealer and corporate owned stores in connection with our ongoing digital initiatives to simplify routine transactions, as well as enhance customer experiences by transitioning in part to large-format experience stores.
Adjusted EBITDA represents earnings before Interest expense, net of Interest income, Income tax expense, Depreciation and amortization, stock-based compensation and certain expenses, gains and losses, which are not reflective of our ongoing operating performance (“Special Items”). Special Items include UScellular merger-related costs, costs associated with the network restructuring initiative (as discussed above), certain legal-related expenses and recoveries, Impairment expense, restructuring costs not directly attributable to the UScellular acquisition (including severance), and other non-core gains and losses. Core Adjusted EBITDA represents Adjusted EBITDA less device lease revenues. Core Adjusted EBITDA and Adjusted EBITDA are non-GAAP financial measures utilized by T-Mobile’s management, including our chief operating decision maker, to monitor the financial performance of our operations and allocate resources of the company as a whole. T-Mobile uses Core Adjusted EBITDA and Adjusted EBITDA as benchmarks to evaluate T-Mobile’s operating performance in comparison to its competitors. T-Mobile also uses Core Adjusted EBITDA internally as a measure to evaluate and compensate its personnel and management for their performance. Management believes analysts and investors use Core Adjusted EBITDA and Adjusted EBITDA as supplemental measures to evaluate overall operating performance and to facilitate comparisons with other wireless communications and broadband services companies because they are indicative of T-Mobile’s ongoing operating performance and trends by excluding the impact of Interest expense from financing, depreciation and amortization from capital investments, stock-based compensation and Special Items. Management believes analysts and investors use Core Adjusted EBITDA because it normalizes for the transition in the company’s device financing strategy, by excluding the impact of device lease revenues from Adjusted EBITDA, to align with the related depreciation expense on leased devices, which is excluded from the definition of Adjusted EBITDA. Core Adjusted EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as substitutes for Net income or any other measure of financial performance reported in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”).
6
T-Mobile US, Inc.
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures (continued)
(Unaudited)
Adjusted Free Cash Flow and Adjusted Free Cash Flow margin are calculated as follows:
| Quarter | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| (in millions, except percentages) | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | 2025 | 2026 | |||||||||||||||||||||||||||||||||||||||
| Net cash provided by operating activities | $ | 6,847 | $ | 6,992 | $ | 7,457 | $ | 6,654 | $ | 7,222 | $ | 7,500 | $ | 13,839 | $ | 14,722 | |||||||||||||||||||||||||||||||
| Cash purchases of property and equipment, including capitalized interest | (2,451) | (2,396) | (2,639) | (2,469) | (2,623) | (2,703) | (4,847) | (5,326) | |||||||||||||||||||||||||||||||||||||||
Adjusted Free Cash Flow | $ | 4,396 | $ | 4,596 | $ | 4,818 | $ | 4,185 | $ | 4,599 | $ | 4,797 | $ | 8,992 | $ | 9,396 | |||||||||||||||||||||||||||||||
| Net cash provided by operating activities margin (Net cash provided by operating activities divided by Service revenues) | 40.5 | % | 40.1 | % | 40.9 | % | 35.6 | % | 38.4 | % | 39.5 | % | 40.3 | % | 38.9 | % | |||||||||||||||||||||||||||||||
| Adjusted Free Cash Flow margin (Adjusted Free Cash Flow divided by Service revenues) | 26.0 | % | 26.4 | % | 26.4 | % | 22.4 | % | 24.4 | % | 25.3 | % | 26.2 | % | 24.8 | % | |||||||||||||||||||||||||||||||
Adjusted Free Cash Flow - Net cash provided by operating activities less Cash purchases of property and equipment, including capitalized interest. Adjusted Free Cash Flow is utilized by T-Mobile’s management, investors and analysts to evaluate cash available to pay debt, repurchase shares, pay dividends and provide further investment in the business.
Adjusted Free Cash Flow margin - Adjusted Free Cash Flow divided by Service revenues. Adjusted Free Cash Flow margin is utilized by T-Mobile’s management, investors, and analysts to evaluate the company’s ability to convert service revenue efficiently into cash available to pay debt, repurchase shares, pay dividends and provide further investment in the business.
7
T-Mobile US, Inc.
Operating Measures
(Unaudited)
The following table sets forth Postpaid ARPA:
| Quarter | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | 2025 | 2026 | ||||||||||||||||||||||||||||||||||||||||
| Postpaid ARPA | $ | 146.22 | $ | 149.87 | $ | 149.44 | $ | 150.17 | $ | 151.93 | $ | 152.91 | $ | 148.06 | $ | 152.42 | |||||||||||||||||||||||||||||||
Postpaid ARPA - Average monthly postpaid service revenue earned per account. Postpaid service revenues for the specified period divided by the average number of postpaid accounts during the period, further divided by the number of months in the period.
8
EXHIBIT 99.2
 | 2 | ||||
3 | Highlights | |||||||
4 | Account Metrics | |||||||
6 | Financial Metrics | |||||||
12 | Capital Structure | |||||||
13 | Guidance | |||||||
14 | Contacts | |||||||
15 | Financial and Operational Tables | |||||||
 | ||
 | 3 | ||||
 | ||||||||
(1)Industry-leading claims are based on consensus expectations if results are not yet reported.
(2)Core Adjusted EBITDA, Adjusted Free Cash Flow and Adjusted Free Cash Flow margin are non-GAAP financial measures. These non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information provided in accordance with GAAP. Reconciliations for these non-GAAP financial measures to the most directly comparable GAAP financial measures are provided in the Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures tables. We are not able to forecast Net income on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting certain items that affect Net income, including, but not limited to, Special Items, Income tax expense and Interest expense. Core Adjusted EBITDA should not be used to predict Net income as the difference between this measure and Net income is variable.
| ||
 | 4 | ||||
Postpaid Accounts (in thousands) | |||||
During Q2 2025, we acquired 85,000 postpaid accounts from Lumos.
During Q3 2025, we acquired 1,448,000 postpaid accounts, net of certain base adjustments, through the UScellular acquisition.
During Q3 2025, we acquired 633,000 postpaid accounts from Metronet and other acquisitions.
During Q1 2026, we recognized a base adjustment to decrease postpaid accounts by 18,000, primarily due to combining certain business accounts that have multiple billing account numbers.
During Q2 2026, Metronet agreed to repurchase certain customer accounts, resulting in a base adjustment to decrease postpaid accounts by 16,000.
These base adjustments had no impact on postpaid net account additions.
| Year-Over-Year | ||
Continued growth in Postpaid accounts with a decrease in net additions primarily due to:
■Higher account deactivations driven by the impact of a growing account base, including following the acquisition of UScellular, and higher average broadband-only accounts
■Partially offset by higher gross account additions, including fiber account additions following the acquisition of Metronet
| Sequential | ||
Continued growth in Postpaid accounts with an increase in net additions primarily due to:
■Lower account deactivations driven by seasonally lower switching activity
| Year-Over-Year | ||
Postpaid ARPA increased 2% primarily due to:
■Higher fee revenue, including from the adoption of new tax and fee exclusive plans
■An increase in customers per account, including from the continued adoption of 5G broadband and continued growth of T-Mobile for Business accounts, partially offset by fiber and UScellular accounts with fewer customers per account
■Partially offset by increased promotional activity, including the success of bundled offerings
| Sequential | ||
Postpaid ARPA increased 1% primarily due to:
■Higher fee revenue, including from the adoption of new tax and fee exclusive plans
■An increase in customers per account, including from the continued adoption of 5G broadband and continued growth of T-Mobile for Business accounts
■Higher device insurance revenue
■Partially offset by increased promotional activity, including the success of bundled offerings
| Postpaid ARPA | |||||
| ||
| 5 | ||||
| Year-Over-Year | ||
Postpaid account churn increased 7 basis points primarily due to:
■Higher average broadband-only accounts, including following the acquisition of Metronet
| Sequential | ||
Postpaid account churn decreased 5 basis points primarily due to:
■Seasonally lower switching activity
| Postpaid Account Churn | |||||
| ||
 | 6 | ||||
Service Revenues ($ in millions) | |||||
| Year-Over-Year | ||
Service revenues increased 9% primarily due to:
■An increase in Postpaid service revenues, including following the acquisitions of UScellular and Metronet
■Partially offset by lower Prepaid service revenues
| Sequential | ||
Service revenues increased slightly primarily due to:
■An increase in Postpaid service revenues
| Year-Over-Year | ||
Postpaid service revenues increased 13% primarily due to:
■Higher average postpaid accounts, including following the acquisitions of UScellular and Metronet
■Higher postpaid ARPA
| Sequential | ||
Postpaid service revenues increased 1% primarily due to:
■Higher average postpaid accounts
■Higher postpaid ARPA
Postpaid Service Revenues ($ in millions) | |||||
| ||
| 7 | ||||
Equipment Revenues ($ in millions) | |||||
| Year-Over-Year | ||
Equipment revenues increased 2% primarily due to:
■Higher average revenue per device sold, net of promotions, primarily driven by an increase in the high-end phone mix
■Partially offset by a decrease in the total number of devices sold, primarily driven by lower prepaid devices
| Sequential | ||
Equipment revenues decreased 12% primarily due to:
■A decrease in the total number of devices sold
■Lower average revenue per device sold, net of promotions, primarily due to a decrease in the high-end phone mix
■Lower liquidation revenue, primarily due to a lower number of liquidated devices
| Year-Over-Year | ||
■Higher average cost per device sold, primarily driven by an increase in the high-end phone mix
■Partially offset by a decrease in the total number of devices sold, primarily driven by lower prepaid devices
| Sequential | ||
Cost of equipment sales, exclusive of D&A, decreased 8% primarily due to:
■A decrease in the total number of devices sold
■Lower liquidation costs, primarily due to a lower number of liquidated devices
■Lower average cost per device sold, primarily due to a decrease in the high-end phone mix
Cost of Equipment Sales, exclusive of D&A ($ in millions, % of Equipment sales*) | |||||
*Equipment sales is defined as Equipment revenues less Lease revenues.
| ||
| 8 | ||||
Cost of Services, exclusive of D&A ($ in millions, % of Service revenues) | |||||
| Year-Over-Year | ||
Cost of services, exclusive of D&A, increased 10% primarily due to:
■Wholesale network access costs and amortization of customer installation fees paid to Metronet and Lumos
■Higher costs following the UScellular acquisition, including merger-related costs
| Sequential | ||
Cost of services, exclusive of D&A, decreased 11% primarily due to:
■Lower UScellular merger-related costs
| Year-Over-Year | ||
SG&A expense increased 8% primarily due to:
■Higher costs following the UScellular acquisition, including merger-related costs
■A $151 million gain in Q2 2025 related to the completed sale of a portion of our 3.45 GHz spectrum licenses
■Higher bad debt expense
■Contract termination and other costs associated with retail transformation initiatives
■Partially offset by an increase in vendor credits related to software services
| Sequential | ||
SG&A expense decreased 2% primarily due to:
■An increase in vendor credits related to software services
■$132 million in Q1 2026 of severance and related costs associated with the 2025-2026 workforce transformation and reinvestment initiative
■Partially offset by contract termination and other costs associated with retail transformation initiatives
Selling, General and Administrative (SG&A) Expense ($ in millions, % of Service revenues) | |||||
| ||
| 9 | ||||
Net Income ($ in millions, % of Service revenues) | |||||
Diluted Earnings Per Share (Diluted EPS) | |||||
| Year-Over-Year | ||
Net income was $3.2 billion and Diluted earnings per share was $2.99 in Q2 2026, compared to $3.2 billion and $2.84 in Q2 2025, primarily due to the factors described above and included the following:
■UScellular merger-related costs, including accelerated depreciation, net of tax, of $146 million, or $0.14 per share, in Q2 2026 and $25 million, or $0.02 per share, in Q2 2025
■A $113 million gain, net of tax, or $0.10 per share, in Q2 2025 related to the completed sale of a portion of our 3.45 GHz spectrum licenses
■Costs associated with the network restructuring initiative, including accelerated depreciation, net of tax, of $46 million, or $0.04 per share, in Q2 2026
| Sequential | ||
Net income was $3.2 billion and Diluted earnings per share was $2.99 in Q2 2026, compared to $2.5 billion and $2.27 in Q1 2026, primarily due to the factors described above and included the following:
■UScellular merger-related costs, including accelerated depreciation, net of tax, of $146 million, or $0.14 per share, in Q2 2026 and $476 million, or $0.43 per share, in Q1 2026
■Severance and related costs associated with the 2025-2026 workforce transformation and reinvestment initiative, net of tax, of $105 million, or $0.10 per share, in Q1 2026
■Costs associated with the network restructuring initiative, including accelerated depreciation, net of tax, of $46 million, or $0.04 per share, in Q2 2026 and $103 million, or $0.09 per share, in Q1 2026
| ||
| 10 | ||||
Core Adjusted EBITDA* ($ in millions, % of Service revenues) | |||||
*Excludes Special Items (see detail on page 22)
| Year-Over-Year | ||
Core Adjusted EBITDA increased 12% primarily due to:
■Higher Total service revenues
■Partially offset by higher Cost of equipment sales, excluding Special Items, higher Cost of services, excluding Special Items, and higher SG&A expenses, excluding Special Items
| Sequential | ||
Core Adjusted EBITDA increased 3% primarily due to:
■Lower Cost of equipment sales, excluding Special Items
■Higher Total service revenues
■Lower SG&A expenses, excluding Special Items
■Partially offset by lower Equipment revenues, excluding Lease revenues
| Year-Over-Year | ||
Net cash provided by operating activities increased 7% primarily due to:
■Higher Net income, adjusted for non-cash income and expenses
■Partially offset by higher net cash outflows from changes in working capital
| Sequential | ||
Net cash provided by operating activities increased 4% primarily due to:
■Higher Net income, adjusted for non-cash income and expenses
■Partially offset by higher net cash outflows from changes in working capital
The impact of net payments for Merger-related costs on Net cash provided by operating activities was $181 million in Q2 2026 compared to $153 million in Q1 2026 and $92 million in Q2 2025.
Net Cash Provided by Operating Activities ($ in millions) | |||||
| ||
| 11 | ||||
Cash Purchases of Property and Equipment, incl. Capitalized Interest ($ in millions, % of Service revenues) | |||||
| Year-Over-Year | ||
Cash purchases of property and equipment, including capitalized interest, increased 13% primarily due to:
■Planned timing of capital purchases, including for incremental capital expenditures following the UScellular acquisition
| Sequential | ||
Cash purchases of property and equipment, including capitalized interest, increased 3% primarily due to:
■Planned timing of capital purchases
| Year-Over-Year | ||
Adjusted Free Cash Flow increased 4% primarily due to:
■Higher Net cash provided by operating activities
■Partially offset by higher Cash purchases of property and equipment
| Sequential | ||
Adjusted Free Cash Flow increased 4% primarily due to:
■Higher Net cash provided by operating activities
The impact of net payments for Merger-related costs on Adjusted Free Cash Flow was $181 million in Q2 2026 compared to $153 million in Q1 2026 and $92 million in Q2 2025.
Adjusted Free Cash Flow ($ in millions) | |||||
| ||
 | 12 | ||||
Total Debt (Excluding Tower Obligations), Net Debt (Excluding Tower Obligations), and Net Debt to LTM Net Income and Core Adj. EBITDA Ratios ($ in billions) | |||||
Stockholder Returns ($ in millions) | |||||
Total debt, excluding tower obligations, at the end of Q2 2026 was $86.9 billion.
Net debt, excluding tower obligations, at the end of Q2 2026 was $84.1 billion.
■On December 11, 2025, the company announced that its Board of Directors authorized a stockholder return program for up to $14.6 billion that will run through December 31, 2026, consisting of additional repurchases of shares and payment of cash dividends with the next dividend payable September 10, 2026.
■On April 23, 2026, the company announced that its Board of Directors increased the company’s 2026 stockholder return authorization to up to $18.2 billion, representing an increase of up to $3.6 billion from its prior 2026 authorization.
■On a cumulative basis, since the company initiated its stockholder return program in Q3 2022, a total of $54.6 billion has been returned to stockholders as of June 30, 2026, with 250.8 million shares repurchased for $44.2 billion, and cumulative cash dividends of $10.4 billion.
■During Q2 2026, 11.4 million shares were repurchased for $2.2 billion.
■During Q2 2026, the company paid a cash dividend of $1.02 per share of common stock, or $1.1 billion, on June 11, 2026.
■In Q3 2026, through July 17, 2026, the company repurchased an additional $392 million in common stock, totaling $2.5 billion in total shares repurchased since the beginning of Q2 2026.
| ||
 | 13 | ||||
2026 Outlook
| Metric | Previous | Revised | Change at Midpoint | ||||||||
| Postpaid net account additions | 950 thousand to 1.05 million | 950 thousand to 1.05 million | No change | ||||||||
Net income (1) | N/A | N/A | N/A | ||||||||
| Effective tax rate | 25% to 26% | 25% to 26% | No change | ||||||||
Core Adjusted EBITDA (2) | $37.1 to $37.5 billion | $37.1 to $37.5 billion | No change | ||||||||
| Net cash provided by operating activities | $28.1 to $28.7 billion | $28.4 to $28.8 billion | $200 million | ||||||||
Capital expenditures (3) | ~$10.0 billion | ~$10.0 billion | No change | ||||||||
| Adjusted Free Cash Flow | $18.1 to $18.7 billion | $18.4 to $18.8 billion | $200 million | ||||||||
(1)We are not able to forecast Net income on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting certain items that affect GAAP Net income, including, but not limited to, Special Items, Income tax expense and Interest expense. Core Adjusted EBITDA should not be used to predict Net income as the difference between this measure and Net income is variable.
(2)Management uses Core Adjusted EBITDA as a measure to monitor the financial performance of our operations, excluding the impact of lease revenues from our related device financing programs.
(3)Capital expenditures means cash purchases of property and equipment, including capitalized interest.
| ||
 | 14 | ||||
Investor Relations
 |  |  | ||||||||||||||||||
| Cathy Yao | Matthew Hale | Jon Lanterman | ||||||||||||||||||
| Senior Vice President | Senior Director | Senior Director | ||||||||||||||||||
 |  |  |  | |||||||||||||||||||||||
| Charles Buffum | Chris Lo | Danna Tao | Aner Hezroni | |||||||||||||||||||||||
| Senior Manager | Manager | Manager | Senior Analyst | |||||||||||||||||||||||
investor.relations@t-mobile.com
https://investor.t-mobile.com
| ||
 | 15 | ||||
T-Mobile US, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
| (in millions, except share and per share amounts) | June 30, 2026 | December 31, 2025 | |||||||||
| Assets | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 2,825 | $ | 5,598 | |||||||
| Accounts receivable, net of allowance for credit losses of $216 and $226 | 5,247 | 4,874 | |||||||||
Equipment installment plan receivables, net of allowance for credit losses and imputed discount of $759 and $733 | 4,715 | 4,997 | |||||||||
| Inventory | 2,191 | 2,405 | |||||||||
| Prepaid expenses | 1,027 | 1,215 | |||||||||
| Other current assets | 5,764 | 5,372 | |||||||||
| Total current assets | 21,769 | 24,461 | |||||||||
| Property and equipment, net | 36,623 | 38,333 | |||||||||
| Operating lease right-of-use assets | 24,596 | 25,692 | |||||||||
| Financing lease right-of-use assets | 2,994 | 2,760 | |||||||||
| Goodwill | 13,667 | 13,678 | |||||||||
| Spectrum licenses | 98,178 | 98,032 | |||||||||
| Other intangible assets, net | 3,295 | 3,843 | |||||||||
Equipment installment plan receivables due after one year, net of allowance for credit losses and imputed discount of $198 and $213 | 2,458 | 2,683 | |||||||||
| Other assets | 9,973 | 9,755 | |||||||||
| Total assets | $ | 213,553 | $ | 219,237 | |||||||
| Liabilities and Stockholders' Equity | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable and accrued liabilities | $ | 8,774 | $ | 10,280 | |||||||
| Short-term debt | 6,117 | 5,135 | |||||||||
| Deferred revenue | 1,439 | 1,533 | |||||||||
| Short-term operating lease liabilities | 3,620 | 3,814 | |||||||||
| Short-term financing lease liabilities | 1,178 | 1,163 | |||||||||
| Other current liabilities | 2,426 | 2,575 | |||||||||
| Total current liabilities | 23,554 | 24,500 | |||||||||
| Long-term debt | 78,504 | 79,649 | |||||||||
| Long-term debt to affiliates | — | 1,498 | |||||||||
| Tower obligations | 3,461 | 3,532 | |||||||||
| Deferred tax liabilities | 21,225 | 19,583 | |||||||||
| Operating lease liabilities | 25,438 | 26,371 | |||||||||
| Financing lease liabilities | 1,121 | 1,107 | |||||||||
| Other long-term liabilities | 3,985 | 3,794 | |||||||||
| Total long-term liabilities | 133,734 | 135,534 | |||||||||
| Commitments and contingencies | |||||||||||
| Stockholders' equity | |||||||||||
| Common stock, par value $0.00001 per share, 2,000,000,000 shares authorized; 1,278,405,439 and 1,275,774,235 shares issued, 1,074,817,571 and 1,106,930,661 shares outstanding | — | — | |||||||||
| Additional paid-in capital | 69,879 | 69,460 | |||||||||
| Treasury stock, at cost, 203,587,868 and 168,843,574 shares issued | (37,667) | (30,545) | |||||||||
| Accumulated other comprehensive loss | (635) | (848) | |||||||||
| Retained earnings | 24,688 | 21,136 | |||||||||
| Total stockholders' equity | 56,265 | 59,203 | |||||||||
| Total liabilities and stockholders' equity | $ | 213,553 | $ | 219,237 | |||||||
| ||
| 16 | ||||
T-Mobile US, Inc.
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
| Three Months Ended | Six Months Ended June 30, | ||||||||||||||||||||||||||||
| (in millions, except share and per share amounts) | June 30, 2026 | March 31, 2026 | June 30, 2025 | 2026 | 2025 | ||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||
| Postpaid revenues | $ | 15,853 | $ | 15,629 | $ | 14,078 | $ | 31,482 | $ | 27,672 | |||||||||||||||||||
| Prepaid revenues | 2,473 | 2,517 | 2,643 | 4,990 | 5,286 | ||||||||||||||||||||||||
| Wholesale and other service revenues | 657 | 685 | 717 | 1,342 | 1,405 | ||||||||||||||||||||||||
| Total service revenues | 18,983 | 18,831 | 17,438 | 37,814 | 34,363 | ||||||||||||||||||||||||
| Equipment revenues | 3,524 | 3,996 | 3,439 | 7,520 | 7,143 | ||||||||||||||||||||||||
| Other revenues | 284 | 280 | 255 | 564 | 512 | ||||||||||||||||||||||||
| Total revenues | 22,791 | 23,107 | 21,132 | 45,898 | 42,018 | ||||||||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||||||||
| Cost of services, exclusive of depreciation and amortization shown separately below | 2,978 | 3,339 | 2,717 | 6,317 | 5,319 | ||||||||||||||||||||||||
| Cost of equipment sales, exclusive of depreciation and amortization shown separately below | 5,055 | 5,488 | 4,659 | 10,543 | 9,457 | ||||||||||||||||||||||||
| Selling, general and administrative | 5,834 | 5,966 | 5,397 | 11,800 | 10,885 | ||||||||||||||||||||||||
| Depreciation and amortization | 3,434 | 3,817 | 3,146 | 7,251 | 6,344 | ||||||||||||||||||||||||
| Total operating expenses | 17,301 | 18,610 | 15,919 | 35,911 | 32,005 | ||||||||||||||||||||||||
| Operating income | 5,490 | 4,497 | 5,213 | 9,987 | 10,013 | ||||||||||||||||||||||||
| Other expense, net | |||||||||||||||||||||||||||||
| Interest expense, net | (1,055) | (1,031) | (922) | (2,086) | (1,838) | ||||||||||||||||||||||||
| Other expense, net | (107) | (132) | (11) | (239) | (57) | ||||||||||||||||||||||||
| Total other expense, net | (1,162) | (1,163) | (933) | (2,325) | (1,895) | ||||||||||||||||||||||||
| Income before income taxes | 4,328 | 3,334 | 4,280 | 7,662 | 8,118 | ||||||||||||||||||||||||
| Income tax expense | (1,089) | (830) | (1,058) | (1,919) | (1,943) | ||||||||||||||||||||||||
| Net income | $ | 3,239 | $ | 2,504 | $ | 3,222 | $ | 5,743 | $ | 6,175 | |||||||||||||||||||
| Net income | $ | 3,239 | $ | 2,504 | $ | 3,222 | $ | 5,743 | $ | 6,175 | |||||||||||||||||||
| Other comprehensive income (loss), net of tax | |||||||||||||||||||||||||||||
Reclassification of loss from cash flow hedges, net of tax effect of $17, $17, $16, $34 and $32 | 50 | 50 | 47 | 100 | 93 | ||||||||||||||||||||||||
Gains (losses) on fair value hedges, net of tax effect of $48, $(12), $13, $36 and $(48) | 142 | (36) | 37 | 106 | (140) | ||||||||||||||||||||||||
Unrealized gain (loss) on foreign currency translation adjustment, net of tax effect of $0, $0, $0, $0 and $0 | 9 | — | (1) | 9 | (1) | ||||||||||||||||||||||||
Amortization of actuarial gain, net of tax effect $(1), $0, $(1), $(1) and $(1) | (1) | (1) | (2) | (2) | (3) | ||||||||||||||||||||||||
| Other comprehensive income (loss) | 200 | 13 | 81 | 213 | (51) | ||||||||||||||||||||||||
| Total comprehensive income | $ | 3,439 | $ | 2,517 | $ | 3,303 | $ | 5,956 | $ | 6,124 | |||||||||||||||||||
| Earnings per share | |||||||||||||||||||||||||||||
| Basic | $ | 2.99 | $ | 2.28 | $ | 2.84 | $ | 5.26 | $ | 5.43 | |||||||||||||||||||
| Diluted | $ | 2.99 | $ | 2.27 | $ | 2.84 | $ | 5.26 | $ | 5.42 | |||||||||||||||||||
| Weighted-average shares outstanding | |||||||||||||||||||||||||||||
| Basic | 1,081,771,279 | 1,100,174,423 | 1,132,760,465 | 1,090,922,014 | 1,136,627,715 | ||||||||||||||||||||||||
| Diluted | 1,082,409,636 | 1,102,053,246 | 1,134,846,966 | 1,092,356,249 | 1,139,770,739 | ||||||||||||||||||||||||
| ||
| 17 | ||||
T-Mobile US, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
| Three Months Ended | Six Months Ended June 30, | ||||||||||||||||||||||||||||
| (in millions) | June 30, 2026 | March 31, 2026 | June 30, 2025 | 2026 | 2025 | ||||||||||||||||||||||||
| Operating activities | |||||||||||||||||||||||||||||
| Net income | $ | 3,239 | $ | 2,504 | $ | 3,222 | $ | 5,743 | $ | 6,175 | |||||||||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||||||||||||||||||||
| Depreciation and amortization | 3,434 | 3,817 | 3,146 | 7,251 | 6,344 | ||||||||||||||||||||||||
| Stock-based compensation expense | 214 | 209 | 200 | 423 | 386 | ||||||||||||||||||||||||
| Deferred income tax expense | 893 | 682 | 937 | 1,575 | 1,708 | ||||||||||||||||||||||||
| Bad debt expense | 398 | 426 | 265 | 824 | 588 | ||||||||||||||||||||||||
| Losses from sales of receivables | 17 | 20 | 19 | 37 | 41 | ||||||||||||||||||||||||
| Changes in operating assets and liabilities | |||||||||||||||||||||||||||||
| Accounts receivable | (498) | (162) | (338) | (660) | (431) | ||||||||||||||||||||||||
| Equipment installment plan receivables | 103 | (55) | 65 | 48 | 89 | ||||||||||||||||||||||||
| Inventory | 142 | 86 | 264 | 228 | (54) | ||||||||||||||||||||||||
| Operating lease right-of-use assets | 965 | 1,196 | 883 | 2,161 | 1,738 | ||||||||||||||||||||||||
| Other current and long-term assets | (354) | 33 | (671) | (321) | (661) | ||||||||||||||||||||||||
| Accounts payable and accrued liabilities | (265) | (408) | 107 | (673) | (161) | ||||||||||||||||||||||||
| Short- and long-term operating lease liabilities | (976) | (1,218) | (886) | (2,194) | (1,784) | ||||||||||||||||||||||||
| Other current and long-term liabilities | (3) | (109) | (82) | (112) | (170) | ||||||||||||||||||||||||
| Other, net | 191 | 201 | (139) | 392 | 31 | ||||||||||||||||||||||||
| Net cash provided by operating activities | 7,500 | 7,222 | 6,992 | 14,722 | 13,839 | ||||||||||||||||||||||||
| Investing activities | |||||||||||||||||||||||||||||
Purchases of property and equipment, including capitalized interest of $(6), $(7), $(10), $(13) and $(20) | (2,703) | (2,623) | (2,396) | (5,326) | (4,847) | ||||||||||||||||||||||||
| Purchases of spectrum licenses and other intangible assets, including deposits | (484) | (26) | (842) | (510) | (915) | ||||||||||||||||||||||||
| Proceeds from the sale of property, equipment and intangible assets | 16 | 95 | 2,066 | 111 | 2,073 | ||||||||||||||||||||||||
| Acquisition of companies, net of cash acquired | — | (1) | 1 | (1) | (726) | ||||||||||||||||||||||||
| Investments in unconsolidated affiliates, net | (3) | — | (908) | (3) | (983) | ||||||||||||||||||||||||
| Other, net | 122 | (294) | 520 | (172) | 430 | ||||||||||||||||||||||||
| Net cash used in investing activities | (3,052) | (2,849) | (1,559) | (5,901) | (4,968) | ||||||||||||||||||||||||
| Financing activities | |||||||||||||||||||||||||||||
| Proceeds from issuance of long-term debt, net | (5) | 6,398 | (6) | 6,393 | 7,768 | ||||||||||||||||||||||||
| Repayments of financing lease obligations | (360) | (304) | (331) | (664) | (646) | ||||||||||||||||||||||||
| Repayments of long-term debt | (1,336) | (6,435) | (3,257) | (7,771) | (3,736) | ||||||||||||||||||||||||
| Repurchases of common stock | (2,320) | (4,826) | (2,555) | (7,146) | (5,049) | ||||||||||||||||||||||||
| Dividends on common stock | (1,101) | (1,120) | (996) | (2,221) | (1,999) | ||||||||||||||||||||||||
| Tax withholdings on share-based awards | (31) | (154) | (30) | (185) | (302) | ||||||||||||||||||||||||
| Other, net | (29) | 1 | (30) | (28) | (48) | ||||||||||||||||||||||||
| Net cash used in financing activities | (5,182) | (6,440) | (7,205) | (11,622) | (4,012) | ||||||||||||||||||||||||
| Effect of exchange rate changes on cash and cash equivalents, including restricted cash | — | — | 13 | — | 13 | ||||||||||||||||||||||||
| Change in cash and cash equivalents, including restricted cash | (734) | (2,067) | (1,759) | (2,801) | 4,872 | ||||||||||||||||||||||||
| Cash and cash equivalents, including restricted cash | |||||||||||||||||||||||||||||
| Beginning of period | 3,909 | 5,976 | 12,344 | 5,976 | 5,713 | ||||||||||||||||||||||||
| End of period | $ | 3,175 | $ | 3,909 | $ | 10,585 | $ | 3,175 | $ | 10,585 | |||||||||||||||||||
| ||
| 18 | ||||
T-Mobile US, Inc.
Condensed Consolidated Statements of Cash Flows (Continued)
(Unaudited)
| Three Months Ended | Six Months Ended June 30, | ||||||||||||||||||||||||||||
| (in millions) | June 30, 2026 | March 31, 2026 | June 30, 2025 | 2026 | 2025 | ||||||||||||||||||||||||
| Supplemental disclosure of cash flow information | |||||||||||||||||||||||||||||
| Interest payments, net of amounts capitalized | $ | 1,119 | $ | 1,054 | $ | 992 | $ | 2,173 | $ | 1,926 | |||||||||||||||||||
| Operating lease payments | 1,303 | 1,537 | 1,202 | 2,840 | 2,416 | ||||||||||||||||||||||||
| Income tax payments, net of refunds received | 757 | 10 | 342 | 767 | 352 | ||||||||||||||||||||||||
| Non-cash investing and financing activities | |||||||||||||||||||||||||||||
| Change in accounts payable and accrued liabilities for purchases of property and equipment | $ | (404) | $ | (357) | $ | (131) | $ | (761) | $ | (594) | |||||||||||||||||||
| Operating lease right-of-use assets obtained in exchange for lease obligations | 540 | 525 | 593 | 1,065 | 1,074 | ||||||||||||||||||||||||
| Financing lease right-of-use assets obtained in exchange for lease obligations | 488 | 222 | 430 | 710 | 678 | ||||||||||||||||||||||||
| ||
| 19 | ||||
T-Mobile US, Inc.
Supplementary Operating and Financial Data
(Unaudited)
| Quarter | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| (in thousands) | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | 2025 | 2026 | |||||||||||||||||||||||||||||||||||||||
| Accounts, end of period | |||||||||||||||||||||||||||||||||||||||||||||||
Total postpaid accounts (1) (2) (3) (4) (5) | 31,099 | 31,502 | 33,979 | 34,240 | 34,439 | 34,700 | 31,502 | 34,700 | |||||||||||||||||||||||||||||||||||||||
(1)In the second quarter of 2025, we acquired 85,000 postpaid accounts from Lumos.
(2)In the third quarter of 2025, we acquired 633,000 postpaid accounts from Metronet and other acquisitions.
(3)In the third quarter of 2025, we acquired 1,448,000 postpaid accounts through the UScellular acquisition, which includes the impact of certain base adjustments to align the policies of UScellular and T-Mobile.
(4)In the first quarter of 2026, we recognized a base adjustment to decrease postpaid accounts by 18,000, primarily due to combining certain business accounts that have multiple billing account numbers.
(5)In the second quarter of 2026, Metronet agreed to repurchase certain customer accounts, resulting in a base adjustment to decrease postpaid accounts by 16,000.
These base adjustments had no impact on postpaid net account additions.
| Quarter | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| (in thousands) | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | 2025 | 2026 | |||||||||||||||||||||||||||||||||||||||
| Net account additions | |||||||||||||||||||||||||||||||||||||||||||||||
| Postpaid net account additions | 205 | 318 | 396 | 261 | 217 | 277 | 523 | 494 | |||||||||||||||||||||||||||||||||||||||
| Quarter | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | 2025 | 2026 | ||||||||||||||||||||||||||||||||||||||||
| Churn | |||||||||||||||||||||||||||||||||||||||||||||||
| Postpaid account churn | 0.94 | % | 0.92 | % | 0.97 | % | 1.04 | % | 1.04 | % | 0.99 | % | 0.93 | % | 1.02 | % | |||||||||||||||||||||||||||||||
| Quarter | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | 2025 | 2026 | ||||||||||||||||||||||||||||||||||||||||
| Operating measure | |||||||||||||||||||||||||||||||||||||||||||||||
| Postpaid ARPA | $ | 146.22 | $ | 149.87 | $ | 149.44 | $ | 150.17 | $ | 151.93 | $ | 152.91 | $ | 148.06 | $ | 152.42 | |||||||||||||||||||||||||||||||
| Quarter | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | 2025 | 2026 | ||||||||||||||||||||||||||||||||||||||||
| Postpaid upgrade rate | |||||||||||||||||||||||||||||||||||||||||||||||
| Postpaid device upgrade rate | 2.8 | % | 2.5 | % | 2.7 | % | 3.8 | % | 2.8 | % | 2.6 | % | 5.3 | % | 5.5 | % | |||||||||||||||||||||||||||||||
| Quarter | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| (in millions) | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | 2025 | 2026 | |||||||||||||||||||||||||||||||||||||||
| Device financing - equipment installment plans | |||||||||||||||||||||||||||||||||||||||||||||||
| Gross EIP financed | $ | 3,565 | $ | 3,503 | $ | 3,871 | $ | 5,774 | $ | 4,322 | $ | 3,958 | $ | 7,068 | $ | 8,280 | |||||||||||||||||||||||||||||||
| EIP billings | 3,551 | 3,553 | 3,766 | 4,066 | 4,167 | 4,132 | 7,104 | 8,299 | |||||||||||||||||||||||||||||||||||||||
| EIP receivables, net | 6,405 | 6,201 | 6,915 | 7,680 | 7,488 | 7,173 | 6,201 | 7,173 | |||||||||||||||||||||||||||||||||||||||
| Device financing - leased devices | |||||||||||||||||||||||||||||||||||||||||||||||
| Lease revenues | $ | 1 | $ | 6 | $ | 4 | $ | 2 | $ | 1 | $ | — | $ | 7 | $ | 1 | |||||||||||||||||||||||||||||||
| Leased device depreciation | 4 | 1 | — | — | — | — | 5 | — | |||||||||||||||||||||||||||||||||||||||
| ||
| 20 | ||||
T-Mobile US, Inc.
Supplementary Operating and Financial Data (continued)
(Unaudited)
| Quarter | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| (in millions, except percentages) | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | 2025 | 2026 | |||||||||||||||||||||||||||||||||||||||
| Financial measures | |||||||||||||||||||||||||||||||||||||||||||||||
| Service revenues | $ | 16,925 | $ | 17,438 | $ | 18,241 | $ | 18,702 | $ | 18,831 | $ | 18,983 | $ | 34,363 | $ | 37,814 | |||||||||||||||||||||||||||||||
| Equipment revenues | $ | 3,704 | $ | 3,439 | $ | 3,465 | $ | 5,364 | $ | 3,996 | $ | 3,524 | $ | 7,143 | $ | 7,520 | |||||||||||||||||||||||||||||||
| Lease revenues | 1 | 6 | 4 | 2 | 1 | — | 7 | 1 | |||||||||||||||||||||||||||||||||||||||
| Equipment sales | $ | 3,703 | $ | 3,433 | $ | 3,461 | $ | 5,362 | $ | 3,995 | $ | 3,524 | $ | 7,136 | $ | 7,519 | |||||||||||||||||||||||||||||||
| Total revenues | $ | 20,886 | $ | 21,132 | $ | 21,957 | $ | 24,334 | $ | 23,107 | $ | 22,791 | $ | 42,018 | $ | 45,898 | |||||||||||||||||||||||||||||||
| Net income | $ | 2,953 | $ | 3,222 | $ | 2,714 | $ | 2,103 | $ | 2,504 | $ | 3,239 | $ | 6,175 | $ | 5,743 | |||||||||||||||||||||||||||||||
| Net income margin | 17.4 | % | 18.5 | % | 14.9 | % | 11.2 | % | 13.3 | % | 17.1 | % | 18.0 | % | 15.2 | % | |||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 8,259 | $ | 8,547 | $ | 8,684 | $ | 8,447 | $ | 9,241 | $ | 9,537 | $ | 16,806 | $ | 18,778 | |||||||||||||||||||||||||||||||
| Adjusted EBITDA margin | 48.8 | % | 49.0 | % | 47.6 | % | 45.2 | % | 49.1 | % | 50.2 | % | 48.9 | % | 49.7 | % | |||||||||||||||||||||||||||||||
| Core Adjusted EBITDA | $ | 8,258 | $ | 8,541 | $ | 8,680 | $ | 8,445 | $ | 9,240 | $ | 9,537 | $ | 16,799 | $ | 18,777 | |||||||||||||||||||||||||||||||
| Core Adjusted EBITDA margin | 48.8 | % | 49.0 | % | 47.6 | % | 45.2 | % | 49.1 | % | 50.2 | % | 48.9 | % | 49.7 | % | |||||||||||||||||||||||||||||||
| Cost of services, exclusive of depreciation and amortization | $ | 2,602 | $ | 2,717 | $ | 2,873 | $ | 3,305 | $ | 3,339 | $ | 2,978 | $ | 5,319 | $ | 6,317 | |||||||||||||||||||||||||||||||
| UScellular merger-related costs | — | — | 7 | 24 | 344 | 44 | — | 388 | |||||||||||||||||||||||||||||||||||||||
| Other Special Items | 20 | 28 | 55 | 250 | 101 | 69 | 48 | 170 | |||||||||||||||||||||||||||||||||||||||
| Cost of services, exclusive of depreciation and amortization and Special Items | $ | 2,582 | $ | 2,689 | $ | 2,811 | $ | 3,031 | $ | 2,894 | $ | 2,865 | $ | 5,271 | $ | 5,759 | |||||||||||||||||||||||||||||||
| Cost of equipment sales, exclusive of depreciation and amortization | $ | 4,798 | $ | 4,659 | $ | 4,853 | $ | 6,967 | $ | 5,488 | $ | 5,055 | $ | 9,457 | $ | 10,543 | |||||||||||||||||||||||||||||||
| UScellular merger-related costs | — | — | 2 | 8 | 14 | 23 | — | 37 | |||||||||||||||||||||||||||||||||||||||
| Other Special Items | — | — | — | — | 8 | — | — | 8 | |||||||||||||||||||||||||||||||||||||||
| Cost of equipment sales, exclusive of depreciation and amortization and Special Items | $ | 4,798 | $ | 4,659 | $ | 4,851 | $ | 6,959 | $ | 5,466 | $ | 5,032 | $ | 9,457 | $ | 10,498 | |||||||||||||||||||||||||||||||
| Selling, general and administrative | $ | 5,488 | $ | 5,397 | $ | 6,015 | $ | 6,570 | $ | 5,966 | $ | 5,834 | $ | 10,885 | $ | 11,800 | |||||||||||||||||||||||||||||||
| UScellular merger-related costs | 14 | 33 | 64 | 111 | 48 | 115 | 47 | 163 | |||||||||||||||||||||||||||||||||||||||
| Other Special Items | 59 | (51) | 123 | 353 | 209 | 150 | 8 | 359 | |||||||||||||||||||||||||||||||||||||||
| Selling, general and administrative, excluding Special Items | $ | 5,415 | $ | 5,415 | $ | 5,828 | $ | 6,106 | $ | 5,709 | $ | 5,569 | $ | 10,830 | $ | 11,278 | |||||||||||||||||||||||||||||||
| Total bad debt expense and losses from sales of receivables | $ | 345 | $ | 284 | $ | 354 | $ | 445 | $ | 446 | $ | 415 | $ | 629 | $ | 861 | |||||||||||||||||||||||||||||||
| Bad debt and losses from sales of receivables as a percentage of Total revenues | 1.7 | % | 1.3 | % | 1.6 | % | 1.8 | % | 1.9 | % | 1.8 | % | 1.5 | % | 1.9 | % | |||||||||||||||||||||||||||||||
| Cash purchases of property and equipment including capitalized interest | $ | 2,451 | $ | 2,396 | $ | 2,639 | $ | 2,469 | $ | 2,623 | $ | 2,703 | $ | 4,847 | $ | 5,326 | |||||||||||||||||||||||||||||||
| Capitalized interest | 10 | 10 | 13 | 10 | 7 | 6 | 20 | 13 | |||||||||||||||||||||||||||||||||||||||
| Net cash proceeds from securitization | $ | (26) | $ | (23) | $ | (25) | $ | (22) | $ | (20) | $ | (22) | $ | (49) | $ | (42) | |||||||||||||||||||||||||||||||
| Net payments for Merger-related costs | $ | 70 | $ | 92 | $ | 96 | $ | 100 | $ | 153 | $ | 181 | $ | 162 | $ | 334 | |||||||||||||||||||||||||||||||
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T-Mobile US, Inc.
Supplementary Operating and Financial Data (Continued)
(Unaudited)
| Quarter | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| (in millions, except share and per share amounts) | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | 2025 | 2026 | |||||||||||||||||||||||||||||||||||||||
| Stockholder returns | |||||||||||||||||||||||||||||||||||||||||||||||
| Total repurchases | $ | 2,470 | $ | 2,469 | $ | 2,470 | $ | 2,460 | $ | 4,901 | $ | 2,156 | $ | 4,939 | $ | 7,057 | |||||||||||||||||||||||||||||||
| Total shares repurchased | 10,091,227 | 10,148,791 | 10,204,072 | 11,919,136 | 23,329,925 | 11,420,845 | 20,240,018 | 34,750,770 | |||||||||||||||||||||||||||||||||||||||
| Average purchase price per share | $ | 244.77 | $ | 243.32 | $ | 242.01 | $ | 206.38 | $ | 210.07 | $ | 188.76 | $ | 244.04 | $ | 203.07 | |||||||||||||||||||||||||||||||
| Total dividends paid | $ | 1,003 | $ | 996 | $ | 987 | $ | 1,135 | $ | 1,120 | $ | 1,101 | $ | 1,999 | $ | 2,221 | |||||||||||||||||||||||||||||||
| Dividends per share | $ | 0.88 | $ | 0.88 | $ | 0.88 | $ | 1.02 | $ | 1.02 | $ | 1.02 | $ | 1.76 | $ | 2.04 | |||||||||||||||||||||||||||||||
| Total stockholder returns | $ | 3,473 | $ | 3,465 | $ | 3,457 | $ | 3,595 | $ | 6,021 | $ | 3,257 | $ | 6,938 | $ | 9,278 | |||||||||||||||||||||||||||||||
| Cumulative total repurchases | $ | 29,785 | $ | 32,254 | $ | 34,724 | $ | 37,184 | $ | 42,085 | $ | 44,241 | $ | 32,254 | $ | 44,241 | |||||||||||||||||||||||||||||||
| Cumulative shares repurchased | 183,754,602 | 193,903,393 | 204,107,465 | 216,026,601 | 239,356,526 | 250,777,371 | 193,903,393 | 250,777,371 | |||||||||||||||||||||||||||||||||||||||
| Cumulative stockholder returns | $ | 34,835 | $ | 38,300 | $ | 41,757 | $ | 45,352 | $ | 51,373 | $ | 54,630 | $ | 38,300 | $ | 54,630 | |||||||||||||||||||||||||||||||
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T-Mobile US, Inc.
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures
(Unaudited)
This Investor Factbook includes non-GAAP financial measures, including Adjusted EBITDA, Core Adjusted EBITDA, Net Debt, Adjusted Free Cash Flow and Adjusted Free Cash Flow margin. The non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information provided in accordance with GAAP. Reconciliations for the non-GAAP financial measures to the most directly comparable GAAP financial measures are provided below. T-Mobile is not able to forecast Net income on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting certain items that affect GAAP Net income, including, but not limited to, Special Items, Income tax expense and Interest expense. Adjusted EBITDA and Core Adjusted EBITDA should not be used to predict Net income, as the difference between either of these measures and Net income is variable.
Adjusted EBITDA and Core Adjusted EBITDA are reconciled to Net income as follows:
| Quarter | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| (in millions, except percentages) | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | 2025 | 2026 | |||||||||||||||||||||||||||||||||||||||
| Net income | $ | 2,953 | $ | 3,222 | $ | 2,714 | $ | 2,103 | $ | 2,504 | $ | 3,239 | $ | 6,175 | $ | 5,743 | |||||||||||||||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | 916 | 922 | 924 | 1,012 | 1,031 | 1,055 | 1,838 | 2,086 | |||||||||||||||||||||||||||||||||||||||
| Other expense, net | 46 | 11 | 78 | 89 | 132 | 107 | 57 | 239 | |||||||||||||||||||||||||||||||||||||||
| Income tax expense | 885 | 1,058 | 814 | 532 | 830 | 1,089 | 1,943 | 1,919 | |||||||||||||||||||||||||||||||||||||||
| Operating income | 4,800 | 5,213 | 4,530 | 3,736 | 4,497 | 5,490 | 10,013 | 9,987 | |||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 3,198 | 3,146 | 3,408 | 3,756 | 3,817 | 3,434 | 6,344 | 7,251 | |||||||||||||||||||||||||||||||||||||||
Stock-based compensation (1) | 168 | 178 | 217 | 209 | 203 | 212 | 346 | 415 | |||||||||||||||||||||||||||||||||||||||
| UScellular merger-related costs | 14 | 33 | 73 | 143 | 406 | 182 | 47 | 588 | |||||||||||||||||||||||||||||||||||||||
Network restructuring initiative costs (2) | — | — | — | 93 | 76 | 52 | — | 128 | |||||||||||||||||||||||||||||||||||||||
Legal-related expenses (recoveries), net (3) | 6 | (4) | 8 | 6 | 54 | 16 | 2 | 70 | |||||||||||||||||||||||||||||||||||||||
| Impairment expense | — | — | 278 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Other, net (4) | 73 | (19) | 170 | 504 | 188 | 151 | 54 | 339 | |||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | 8,259 | 8,547 | 8,684 | 8,447 | 9,241 | 9,537 | 16,806 | 18,778 | |||||||||||||||||||||||||||||||||||||||
| Lease revenues | (1) | (6) | (4) | (2) | (1) | — | (7) | (1) | |||||||||||||||||||||||||||||||||||||||
| Core Adjusted EBITDA | $ | 8,258 | $ | 8,541 | $ | 8,680 | $ | 8,445 | $ | 9,240 | $ | 9,537 | $ | 16,799 | $ | 18,777 | |||||||||||||||||||||||||||||||
| Net income margin (Net income divided by Service revenues) | 17.4 | % | 18.5 | % | 14.9 | % | 11.2 | % | 13.3 | % | 17.1 | % | 18.0 | % | 15.2 | % | |||||||||||||||||||||||||||||||
| Adjusted EBITDA margin (Adjusted EBITDA divided by Service revenues) | 48.8 | % | 49.0 | % | 47.6 | % | 45.2 | % | 49.1 | % | 50.2 | % | 48.9 | % | 49.7 | % | |||||||||||||||||||||||||||||||
| Core Adjusted EBITDA margin (Core Adjusted EBITDA divided by Service revenues) | 48.8 | % | 49.0 | % | 47.6 | % | 45.2 | % | 49.1 | % | 50.2 | % | 48.9 | % | 49.7 | % | |||||||||||||||||||||||||||||||
(1)Stock-based compensation includes payroll tax impacts and may not agree to stock-based compensation expense on the Condensed Consolidated Financial Statements.
(2)In Q4 2025, we began implementing network restructuring initiatives as a result of recent technological advancements that enhanced our Customer-Driven Coverage insights. Network restructuring initiative costs consist of network decommissioning and contract termination costs related to the rationalization of our network and backhaul services and the elimination of duplicative costs.
(3)Legal-related expenses (recoveries), net, consists of the settlement of certain litigation and compliance costs associated with the August 2021 cyberattack, net of insurance recoveries.
(4)Other, net, primarily consists of certain severance, restructuring and other expenses, gains and losses, not directly attributable to the UScellular acquisition, which are not reflective of T-Mobile’s ongoing core business activities and are, therefore, excluded from Adjusted EBITDA and Core Adjusted EBITDA. Other, net, for the three months ended March 31, 2026 and December 31, 2025, includes $141 million and $390 million, respectively, and $141 million for the six months ended June 30, 2026, of severance and related costs associated with the 2025-2026 workforce transformation and reinvestment initiative. Additionally, Other, net, for both the three and six months ended June 30, 2026, includes $108 million of costs associated with retail initiatives to close certain dealer and corporate owned stores in connection with our ongoing digital initiatives to simplify routine transactions, as well as enhance customer experiences by transitioning in part to large-format experience stores.
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| 23 | ||||
T-Mobile US, Inc.
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures (continued)
(Unaudited)
Net debt (excluding tower obligations) to the LTM Net income, LTM Adjusted EBITDA and LTM Core Adjusted EBITDA ratios are calculated as follows:
| (in millions, except net debt ratios) | Mar 31, 2025 | Jun 30, 2025 | Sep 30, 2025 | Dec 31, 2025 | Mar 31, 2026 | Jun 30, 2026 | |||||||||||||||||||||||||||||
| Short-term debt | $ | 8,214 | $ | 6,408 | $ | 6,333 | $ | 5,135 | $ | 2,238 | $ | 6,117 | |||||||||||||||||||||||
| Short-term financing lease liabilities | 1,136 | 1,157 | 1,157 | 1,163 | 1,155 | 1,178 | |||||||||||||||||||||||||||||
| Long-term debt | 76,033 | 75,018 | 76,365 | 79,649 | 83,809 | 78,504 | |||||||||||||||||||||||||||||
| Long-term debt to affiliates | 1,497 | 1,497 | 1,498 | 1,498 | — | — | |||||||||||||||||||||||||||||
| Financing lease liabilities | 1,117 | 1,188 | 1,186 | 1,107 | 1,024 | 1,121 | |||||||||||||||||||||||||||||
| Total debt (excluding tower obligations) | $ | 87,997 | $ | 85,268 | $ | 86,539 | $ | 88,552 | $ | 88,226 | $ | 86,920 | |||||||||||||||||||||||
| Less: Cash and cash equivalents | (12,003) | (10,259) | (3,310) | (5,598) | (3,520) | (2,825) | |||||||||||||||||||||||||||||
| Net debt (excluding tower obligations) | $ | 75,994 | $ | 75,009 | $ | 83,229 | $ | 82,954 | $ | 84,706 | $ | 84,095 | |||||||||||||||||||||||
| Divided by: Last twelve months Net income | $ | 11,918 | $ | 12,215 | $ | 11,870 | $ | 10,992 | $ | 10,543 | $ | 10,560 | |||||||||||||||||||||||
| Net debt (excluding tower obligations) to LTM Net income Ratio | 6.4 | 6.1 | 7.0 | 7.5 | 8.0 | 8.0 | |||||||||||||||||||||||||||||
| Divided by: Last twelve months Adjusted EBITDA | $ | 32,471 | $ | 32,965 | $ | 33,406 | $ | 33,937 | $ | 34,919 | $ | 35,909 | |||||||||||||||||||||||
| Net debt (excluding tower obligations) to LTM Adjusted EBITDA Ratio | 2.3 | 2.3 | 2.5 | 2.4 | 2.4 | 2.3 | |||||||||||||||||||||||||||||
| Divided by: Last twelve months Core Adjusted EBITDA | $ | 32,412 | $ | 32,926 | $ | 33,384 | $ | 33,924 | $ | 34,906 | $ | 35,902 | |||||||||||||||||||||||
| Net debt (excluding tower obligations) to LTM Core Adjusted EBITDA Ratio | 2.3 | 2.3 | 2.5 | 2.4 | 2.4 | 2.3 | |||||||||||||||||||||||||||||
Adjusted Free Cash Flow and Adjusted Free Cash Flow margin are calculated as follows:
| Quarter | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| (in millions, except percentages) | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | 2025 | 2026 | |||||||||||||||||||||||||||||||||||||||
| Net cash provided by operating activities | $ | 6,847 | $ | 6,992 | $ | 7,457 | $ | 6,654 | $ | 7,222 | $ | 7,500 | $ | 13,839 | $ | 14,722 | |||||||||||||||||||||||||||||||
| Cash purchases of property and equipment, including capitalized interest | (2,451) | (2,396) | (2,639) | (2,469) | (2,623) | (2,703) | (4,847) | (5,326) | |||||||||||||||||||||||||||||||||||||||
| Adjusted Free Cash Flow | $ | 4,396 | $ | 4,596 | $ | 4,818 | $ | 4,185 | $ | 4,599 | $ | 4,797 | $ | 8,992 | $ | 9,396 | |||||||||||||||||||||||||||||||
Net cash provided by operating activities margin | 40.5 | % | 40.1 | % | 40.9 | % | 35.6 | % | 38.4 | % | 39.5 | % | 40.3 | % | 38.9 | % | |||||||||||||||||||||||||||||||
Adjusted Free Cash Flow margin | 26.0 | % | 26.4 | % | 26.4 | % | 22.4 | % | 24.4 | % | 25.3 | % | 26.2 | % | 24.8 | % | |||||||||||||||||||||||||||||||
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| 24 | ||||
Definitions of Terms
Operating and financial measures are utilized by T-Mobile’s management to evaluate its operating performance and, in certain cases, its ability to meet liquidity requirements. Although companies in the telecommunications industry may not define measures in precisely the same way, T-Mobile believes the measures facilitate key operating performance comparisons with other companies in the telecommunications industry to provide management, investors and analysts with useful information to assess and evaluate past performance and assist in forecasting future performance.
1.Account - Generally, a billing account that generates revenue. Postpaid accounts generally consist of customers that are qualified for postpaid service utilizing phones, 5G broadband gateways, fiber connections, mobile internet devices, including tablets and hotspots, wearables, DIGITS or other connected devices, including SyncUP and IoT, where they generally pay after receiving service.
2.Account Churn - The number of accounts whose service was deactivated as a percentage of the average number of accounts during the specified period further divided by the number of months in the period. The number of accounts whose service was deactivated is calculated net of accounts that subsequently had their service restored within a certain period of time and excludes accounts who received service for less than a certain minimum period of time, account mergers and account migrations.
3.Postpaid Average Revenue Per Account (“ARPA”) - Average monthly postpaid service revenue earned per account. Postpaid service revenues for the specified period divided by the average number of postpaid accounts during the period, further divided by the number of months in the period.
Service revenues - Postpaid, including handset insurance, prepaid, wholesale and other service revenues.
4.Cost of services - Costs directly attributable to providing wireless communications and broadband services, including direct switch and cell site costs, such as rent, network access and transport costs, utilities, maintenance, associated labor costs, long distance costs, regulatory program costs, roaming fees paid to other carriers and data content costs.
Cost of equipment sales - Costs of devices and accessories sold to customers and dealers, device costs to fulfill insurance and warranty claims, write-downs of inventory related to shrinkage and obsolescence, and shipping and handling costs.
Selling, general and administrative expenses - Costs not directly attributable to providing wireless communications and broadband services for the operation of sales, customer care and corporate activities. These include all commissions paid to dealers and retail employees for activations and upgrades, labor and facilities costs associated with retail sales force and administrative space, marketing and promotional costs, customer support and billing, bad debt expense and administrative support activities.
5.Net income margin - Net income divided by Service revenues.
6.Adjusted EBITDA and Core Adjusted EBITDA - Adjusted EBITDA represents earnings before Interest expense, net of Interest income, Income tax expense, Depreciation and amortization, stock-based compensation and Special Items. Core Adjusted EBITDA represents Adjusted EBITDA less device lease revenues. Core Adjusted EBITDA and Adjusted EBITDA are non-GAAP financial measures utilized by T-Mobile’s management, including our chief operating decision maker, to monitor the financial performance of our operations and allocate resources of the Company as a whole. T-Mobile historically used Adjusted EBITDA and T-Mobile currently uses Core Adjusted EBITDA internally as a measure to evaluate and compensate its personnel and management for their performance. T-Mobile uses Adjusted EBITDA and Core Adjusted EBITDA as benchmarks to evaluate its operating performance in comparison to competitors. Management believes analysts and investors use Core Adjusted EBITDA and Adjusted EBITDA as supplemental measures to evaluate overall operating performance and to facilitate comparisons with other wireless communications and broadband services companies because they are indicative of T-Mobile’s ongoing operating performance and trends by excluding the impact of Interest expense from financing, depreciation and amortization from capital investments, stock-based compensation and Special Items. Management believes analysts and investors use Core Adjusted EBITDA because it normalizes for the transition in the company’s device financing strategy, by excluding the impact of device lease revenues from Adjusted EBITDA, to align with the related depreciation expense on leased devices, which is excluded from the definition of Adjusted EBITDA. Core Adjusted EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as a substitute for Income from operations, Net income or any other measure of financial performance reported in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”).
7.Special Items - Certain expenses, gains, and losses which are not reflective of our ongoing performance. Special Items include UScellular merger-related costs, network restructuring initiative costs (as discussed above), certain legal-related recoveries and expenses, Impairment expense, restructuring costs not directly attributable to the UScellular acquisition (including severance), and other non-core gains and losses.
8.Adjusted EBITDA margin and Core Adjusted EBITDA margin - Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Service revenues. Core Adjusted EBITDA margin is calculated as Core Adjusted EBITDA divided by Service revenues. Adjusted EBITDA margin and Core Adjusted EBITDA margin are non-GAAP financial measures utilized by T-Mobile’s management, including our chief operating decision maker, to monitor the financial performance of our operations and allocate resources of the Company as a whole.
9.Net cash provided by operating activities margin - Net cash provided by operating activities margin is calculated as Net cash provided by operating activities divided by Service revenues.
10.Adjusted Free Cash Flow - Net cash provided by operating activities less cash payments for purchases of property and equipment. Adjusted Free Cash Flow is utilized by T-Mobile’s management, investors, and analysts of our financial information to evaluate cash available to pay debt, repurchase shares, pay dividends and provide further investment in the business.
11.Adjusted Free Cash Flow margin - Adjusted Free Cash Flow margin is calculated as Adjusted Free Cash Flow divided by Service revenues. Adjusted Free Cash Flow margin is utilized by T-Mobile’s management, investors, and analysts to evaluate the company’s ability to convert service revenue efficiently into cash available to pay debt, repurchase shares, pay dividends and provide further investment in the business.
12.Net debt - Short-term debt, short-term debt to affiliates, long-term debt (excluding tower obligations), and long-term debt to affiliates, short-term financing lease liabilities and financing lease liabilities, less cash and cash equivalents.
13.Net payments for merger-related costs include net cash payments for Sprint merger-related costs and UScellular merger-related costs.
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| 25 | ||||
14.UScellular merger-related costs to date include:
•Integration costs to achieve efficiencies in network, retail, information technology and back office operations and migrate customers to the T-Mobile network and billing systems;
•Restructuring costs, including contract terminations, severance and network decommissioning; and
•Transaction costs, including legal and professional services related to the completion of the UScellular acquisition.
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| 26 | ||||
Cautionary Statement Regarding Forward-Looking Statements
This communication includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including information concerning T-Mobile US, Inc.’s future results of operations, are forward-looking statements. These forward-looking statements are generally identified by the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “could” or similar expressions. Forward-looking statements are based on current expectations and assumptions, which are subject to risks and uncertainties and may cause actual results to differ materially from the forward-looking statements. Important factors that could affect future results and cause those results to differ materially from those expressed in the forward-looking statements include, among others, the following: competition, industry consolidation and changes in the market for wireless communications services and other forms of connectivity; cyberattacks, disruptions, data loss or other security breaches; our inability to adopt and deploy network technologies in a timely and effective manner; our inability to effectively execute our digital initiatives and drive customer and employee adoption of emerging technologies; our inability to retain or motivate key personnel, hire qualified personnel or maintain our corporate culture; system failures and business disruptions, allowing for unauthorized use of or interference with our network and other systems; the scarcity and cost of additional wireless spectrum, and regulations relating to spectrum use; the timing and effects of any pending and future acquisition, investment, joint venture, merger or divestiture involving us, including our inability to obtain any required regulatory approval necessary to consummate any such transactions or to achieve the expected benefits of such transactions; adverse economic, political or market conditions in the U.S. and international markets, including changes resulting from increases in oil prices, inflation or interest rates, tariffs and trade restrictions, supply chain disruptions, fluctuations in global currencies, immigration policies, and impacts of geopolitical instability, such as global conflict, wars and further escalations thereof; operational delays, higher procurement costs, such as memory chip cost impacts on smartphones, and operational costs, and increased regulatory and compliance complexities, for example, as a result of changes to trade policies, including higher tariffs, restrictions and other economic disincentives to trade; our inability to successfully deliver new products and services; any failure or inability of our third parties (including key suppliers) to provide products or services for the operation of our business; sociopolitical volatility and polarization and risks related to environmental, social and governance matters; our substantial level of indebtedness and our inability to service our debt obligations in accordance with their terms; changes in the credit market conditions, credit rating downgrades or an inability to access debt markets; our inability to maintain effective internal control over financial reporting; compliance with the current regulatory framework, including our national security obligations, and any changes in regulations or in the regulatory framework under which we operate; laws and regulations relating to the handling of privacy, data protection and artificial intelligence; unfavorable outcomes of and increased costs from existing or future regulatory or legal proceedings; difficulties in protecting our intellectual property rights or if we infringe on the intellectual property rights of others; our offering of regulated financial services products and exposure to a wide variety of state and federal regulations; new or amended tax laws or regulations or administrative interpretations and judicial decisions affecting the scope or application of tax laws or regulations; our wireless licenses, including those controlled through leasing agreements, are subject to renewal and may be revoked; our exclusive forum provision as provided in our Certificate of Incorporation; interests of Deutsche Telekom AG (“DT”), our controlling stockholder, which may differ from the interests of other stockholders; our current and future stockholder return programs may not be fully utilized, and our share repurchases and dividend payments pursuant thereto may fail to have the desired impact on stockholder value; future sales of our common stock by DT and our inability to attract additional equity financing outside the United States due to foreign ownership limitations by the Federal Communications Commission; and other risks as disclosed in our most recent annual report on Form 10-K, and subsequent Forms 10-Q and other filings with the Securities and Exchange Commission. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law.
About T-Mobile US, Inc.
As the supercharged Un-carrier, T-Mobile US, Inc. (NASDAQ: TMUS) is powered by an award-winning 5G network that connects more people, in more places, than ever before. With T-Mobile’s unique value proposition of best network, best value and best experiences, the Un-carrier is redefining connectivity and fueling competition while continuing to drive the next wave of innovation in wireless and beyond. Headquartered in Bellevue, Wash., T-Mobile provides services through its subsidiaries and operates its flagship brands, T-Mobile, Metro by T-Mobile and Mint Mobile. For more information, visit https://www.t-mobile.com.
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