Executive Summary

Q3 2025 delivered industry‑leading customer growth and raised guidance across the board; service revenues rose to $18.24B (+9.1% YoY) and core adjusted EBITDA reached $8.68B (+5.6% YoY), while diluted EPS was $2.41, impacted by a non‑cash software impairment (‑$0.18 per share) .
Postpaid phone net adds were 1.007M (best Q3 in over a decade), total postpaid net adds were 2.347M (best‑ever), and total broadband net adds were 560k (including 506k 5G broadband) .
Management raised FY25 guidance: postpaid net adds to 7.2–7.4M (from 6.1–6.4M), core adj. EBITDA to $33.7–$33.9B, operating cash flow to $27.8–$28.0B, capex to ~$10.0B, and adjusted FCF to $17.8–$18.0B .
Strategic catalysts: network/perception leadership (e.g., iPhone 17 speeds ~90% faster vs a benchmark competitor), accelerating UScellular and fiber (Metronet/Lumos) integration and synergy realization, and digital transformation (75%+ iPhone upgrades via T‑Life) .

What Went Well and What Went Wrong

What Went Well

Record customer momentum: 1.007M postpaid phone net adds, 2.347M total postpaid net adds, 560k broadband net adds; led industry in postpaid phone churn .
Revenue growth translating to cash conversion: service revenues $18.24B (+9.1% YoY), core adj. EBITDA $8.68B (+5.6% YoY), adjusted FCF $4.82B; net operating cash flow $7.46B (+21.5% YoY) .
Management conviction and guidance raise: “Q3 once again proves that our differentiated strategy is working… taking profitable share through wireless, through broadband, and smart adjacencies” — Srini Gopalan (incoming CEO) ; full‑year guidance raised across customers and financials .

What Went Wrong

EPS headwind from impairment: diluted EPS $2.41 (vs $2.84 in Q2 and $2.61 in Q3’24) included $208M after‑tax impairment expense, or $0.18 per share .
Higher SG&A and cost of services: SG&A increased 11% QoQ, driven by UScellular inclusion, personnel costs, and merger‑related costs; cost of services rose 6% QoQ .
Postpaid phone churn ticked +3 bps YoY to 0.89% amid elevated industry switching and rate plan optimization normalization (management noted temporary churn impacts earlier in the year) .

Financial Results

Key Financials vs Prior Periods and Estimates

Metric	Q3 2024	Q2 2025	Q3 2025
Total Revenues ($MM)	$20,162	$21,132	$21,957
Service Revenues ($MM)	$16,725	$17,438	$18,241
Postpaid Service Revenues ($MM)	$13,308	$14,078	$14,882
Net Income ($MM)	$3,059	$3,222	$2,714
Diluted EPS ($)	$2.61	$2.84	$2.41
Adjusted EBITDA ($MM)	$8,243	$8,547	$8,684
Core Adjusted EBITDA ($MM)	$8,222	$8,541	$8,680
Net Income Margin (%)	18.3%	18.5%	14.9%
Adjusted EBITDA Margin (%)	49.3%	49.0%	47.6%
Core Adjusted EBITDA Margin (%)	49.2%	49.0%	47.6%
Wall Street Consensus (S&P Global)	Unavailable*	Unavailable*	Unavailable*

Note: *S&P Global estimates were not returned by the tool; values unavailable. Values retrieved from S&P Global.

Growth Rates (as reported)

Metric	QoQ Change (Q3’25 vs Q2’25)	YoY Change (Q3’25 vs Q3’24)
Total Revenues	+3.9%	+8.9%
Service Revenues	+4.6%	+9.1%
Postpaid Service Revenues	+5.7%	+11.8%
Net Income	−15.8%	−11.3%
Diluted EPS	−15.1%	−7.7%
Adjusted EBITDA	+1.6%	+5.3%
Core Adjusted EBITDA	+1.6%	+5.6%
Adjusted Free Cash Flow	+4.8%	−6.7%

Service Revenue Components

Service Revenue Component ($MM)	Q3 2024	Q2 2025	Q3 2025
Postpaid Revenues	$13,308	$14,078	$14,882
Prepaid Revenues	$2,716	$2,643	$2,625
Wholesale & Other Service Revenues	$701	$717	$734
Total Service Revenues	$16,725	$17,438	$18,241

KPIs

KPI	Q3 2024	Q2 2025	Q3 2025
Postpaid Net Customer Adds (000s)	1,575	1,732	2,347
Postpaid Phone Net Adds (000s)	865	830	1,007
Postpaid Net Account Adds (000s)	315	318	396
Total Net Adds (000s)	1,599	1,771	2,390
Total Broadband Net Adds (000s)	418	470	560
5G Broadband Net Adds (000s)	415	454	506
Postpaid Phone Churn (%)	0.86%	0.90%	0.89%
Total Customers (MM)	127.492	132.778	139.949
Postpaid ARPA ($)	145.60	149.87	149.44
Postpaid Phone ARPU ($)	49.79	50.62	50.71
Prepaid ARPU ($)	35.81	34.63	33.93

Non‑GAAP reconciliation note: Core Adjusted EBITDA excludes lease revenues; special items include merger‑related costs, legal items, impairment, restructuring, and other non‑core gains/losses .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Postpaid Net Customer Adds (000s)	FY 2025	6,100–6,400	7,200–7,400	Raised (+1,050 midpoint)
Postpaid Phone Net Adds (000s)	FY 2025	2,950–3,100	~3,300	Raised
Fiber Net Adds (000s)	FY 2025	~100	~130	Raised
Effective Tax Rate (%)	FY 2025	24–26	23–24	Lowered (−150 bps midpoint)
Core Adjusted EBITDA ($B)	FY 2025	33.3–33.7	33.7–33.9	Raised (+$0.3B midpoint)
Net Cash from Operating Activities ($B)	FY 2025	27.1–27.5	27.8–28.0	Raised (+$0.6B midpoint)
Capital Expenditures ($B)	FY 2025	~9.5	~10.0	Raised (+$0.5B)
Adjusted Free Cash Flow ($B)	FY 2025	17.6–18.0	17.8–18.0	Raised (+$0.1B midpoint)

Management added color: ~$300M Q4 costs to achieve UScellular synergies (excluded from core adjusted EBITDA), ~$160M in cell site decommissioning expenses (excluded), Q4 D&A ~$3.7B and interest expense ~$1.0B .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2025 and Q1 2025 where available)	Current Period (Q3 2025)	Trend
Network leadership & perception	“America’s Best Network”; push perception with third‑party validation; greenfield build of ~4,000 sites; UScellular close to expand rural footprint; AI‑driven customer‑coverage build	Highlighted iPhone 17 median download speeds ~90% faster vs a benchmark competitor; continued deployment of 5G Advanced, slicing; commitment to widen lead	Strengthening; accelerating perception catch‑up
Broadband (5G FWA)	454k net adds; 14th straight industry leadership; average usage ~560GB, speeds up ~50% in two years; fallow capacity model focus	506k 5G broadband net adds; FWA ARPU/CLV similar to postpaid phone; runway remains strong	Continued scale; mainstream adoption
Fiber (T‑Fiber)	Launched; plan ≥100k nets FY25; capital‑light JV structure; homes passed strategy (12–15M target)	~130k nets FY25; Metronet closed in Q3; accretive service revenues, neutral to EBITDA/FCF FY25	Scaling; JV expansion
Digital transformation & AI	T‑Life ~75M installs; ~2/3 upgrades digital; Intent CX with OpenAI to simplify complex transactions	75% of iPhone pre‑order upgrades digital; AI making the complicated uncomplicated; broader acquisition flow underway	Adoption rising; broader use cases
UScellular integration & synergies	Accelerate rural coverage/capacity; anticipated synergy $1.2B run‑rate in OPEX/CAPEX within 2 years	Path to full run‑rate synergies inside ~2 years; front‑loaded costs in Q4; broadened network transformation	Execution accelerated
Spectrum strategy	Selective; densification often cheaper than secondary purchases; strong balance sheet and auction supply outlook	Intend to defend and grow spectrum lead; patient approach as supply rises; AWS‑3/C‑band dynamics noted	Opportunistic; disciplined

Q1 2025 call commentary was not listed in our document set; trends rely on Q2 2025 and Q3 2025 calls reviewed.

Management Commentary

Mike Sievert (CEO): “We smashed not only all‑time customer records… while also leading the industry in financial growth… beating expectations again” .
Srini Gopalan (incoming CEO): “Our differentiated strategy is working — more and more consumers recognize our industry‑leading network and elevated customer experiences through digital innovation… taking profitable share through wireless, through broadband, and smart adjacencies” .
Peter Osvaldik (CFO) on guidance: “We now expect core adjusted EBITDA to be between $33.7 and $33.9 billion… adjusted free cash flow in the range of $17.8 to $18 billion” .

Q&A Highlights

Network perception gap: tactics include localized messaging, digital activation, and customer‑driven coverage; recommendation effects from large switching cohorts help close the gap .
Fiber and FWA strategy: complementary, capital‑light fiber growth where economics work; FWA anchored by fallow capacity, with speeds and usage improving materially; confidence in multi‑year runway .
Spectrum posture: prefer densification over expensive secondary spectrum when ROI is superior; plan to defend and extend spectrum lead; patience for auction‑rich supply .
iPhone cycle: stronger cycle driving reassessment and switching; volume through widened differentiation supports EBITDA/FCF delivery .
UScellular synergies: $1.2B run‑rate in 2 years; Q4 costs to achieve excluded from core adjusted EBITDA; network transformation includes site optimization and decommissioning .

Estimates Context

S&P Global consensus for Q3 2025 EPS, revenue, and EBITDA was unavailable via tool; therefore, explicit beat/miss vs consensus cannot be determined here. Values retrieved from S&P Global.
Management characterized results as “beating expectations again,” but without S&P consensus values we do not attribute a quantified beat/miss to Wall Street forecasts .

Key Takeaways for Investors

Durable share gains across wireless and broadband should sustain double‑digit postpaid service revenue growth and healthy FCF conversion, even with near‑term EPS noise from non‑cash impairment and integration costs .
Guidance raise across customers and financials is a positive catalyst; watch Q4 cost‑to‑achieve and decommissioning dynamics (excluded from core adj. EBITDA) and D&A/interest trajectories .
Network leadership and perception are strengthening (notably with new iPhone performance and 5G Advanced features), enhancing switching and premium plan mix/ARPA; supports margin resilience .
Broadband flywheel remains intact: FWA adds with mainstream usage/speeds and capital‑light fiber JV scaling; monitor T‑Fiber economics and homes‑passed expansion .
UScellular integration accelerates rural coverage/capacity and synergy capture; near‑term opex/capex to enable faster run‑rate realization within two years .
Capital allocation remains disciplined: selective spectrum, densification ROI, and potential to harness cash tax benefits in 2026; maintain awareness of leverage target (~2.5x) and shareholder returns program .
Trading lens: raised FY25 guidance and demonstrated growth momentum are supportive; monitor execution on perception/digital initiatives and holiday device‑promo environment impacts on CLVs and churn (management indicates resilience) .

T-Mobile US, Inc. (TMUS)·Q3 2025 Earnings Summary