The sharp drop in wholesale and other service revenues in Q3 2024 was primarily due to **lower MVNO revenues**—including the impact from the **Ka’ena Acquisition**—in addition to reduced contributions from **DISH and TracFone MVNO revenue** and **lower Affordable Connectivity Program and Lifeline revenues**.  **[0001283699-24-000142_tmus-20240930.htm:45]** **[0001283699-24-000142_tmus-20240930.htm:46]** 

Why did Wholesale and other service revenues drop so sharply in Q3 2024?

The surge in **Total revenues** in **Q4 2024** was primarily driven by a **strong growth in service revenues** and a **seasonal increase in equipment revenues**. Service revenues benefitted from higher postpaid service revenues—up **8.3% year-over-year**—boosted by improved postpaid ARPA and **903,000 postpaid phone net additions**, while equipment revenues saw a significant jump due to a seasonal boost in the high-end phone mix during the holiday season.  **[0001283699-25-000008_tmus12312024ex991.htm:3]** **[0001283699-25-000008_tmus12312024ex992.htm:6]** **[0001283699-25-000008_tmus12312024ex991.htm:0]** **[0001283699-25-000008_tmus12312024ex991.htm:2]** 

What drove the surge in Total revenues in Q4 2024?

The significant increase in **Operating Income** in **Q3 2024** was driven by a combination of **higher service revenues** and **cost efficiencies**. Specifically, **service revenues** grew by **5% year-over-year**, with an **8% increase in postpaid revenues** and a **10% increase in prepaid revenues**. At the same time, **operating expenses** were reduced by **$290 million (2%)**, primarily due to a **6% reduction in the cost of services** (excluding depreciation and amortization) and a **3% decrease in selling, general, and administrative expenses**. These factors collectively improved margins, significantly contributing to the higher operating income.  **[0001283699-24-000142_tmus-20240930.htm:45]** 

What factors contributed to the higher Operating income in Q3 2024?

T-Mobile’s strong **net income** performance in Q3 2024 was driven by several key factors. **Higher service revenues**—increasing 5% year-over-year with robust postpaid growth (up 8% year-over-year)—greatly supported the results.  **[0001283699-24-000141_tmus09302024ex991.htm:1]** **[0001283699-24-000142_tmus-20240930.htm:58]**  Additionally, **operating income** saw a significant boost, increasing by **$1,200 million (33%)** thanks to improved profitability and operational efficiencies.  **[0001283699-24-000142_tmus-20240930.htm:58]**  The elimination of **merger-related costs** (dropping from **$152 million** in Q3 2023 to **$0** in Q3 2024) and enhanced **cost management**, as evidenced by a 29% year-over-year increase in **Adjusted Free Cash Flow**, further propelled the improvement.  **[0001283699-24-000141_tmus09302024ex992.htm:3]** **[0001283699-24-000142_tmus-20240930.htm:58]**  Even though there were increases in income tax and interest expenses, these were outweighed by the overall revenue and efficiency gains, leading to the strong net income performance in Q3 2024.  **[0001283699-24-000142_tmus-20240930.htm:58]** 

What drove the strong Net income performance in Q3 2024?

The surge in **Other income in Q4 2024** was driven by two main factors. First, there was an **$80 million gain** recognized from the partial settlement of the Sprint Retirement Pension Plan retiree obligations. Second, despite cross-currency swap agreements involving EUR-denominated debt yielding a **$79 million pre-tax transaction gain** on remeasurement, this gain was offset by a similar amount reclassified from accumulated other comprehensive loss; however, the overall impact still contributed to the significant increase in Other income.  **[0001283699-25-000012_tmus-20241231.htm:51]** **[0001283699-25-000012_tmus-20241231.htm:122]** 

Why did Other income surge in Q4 2024?

881ac95b5df65c82e717f7e540e46d89abf17b52ce0466cf1fb51be24820f90f

T‑Mobile’s operating cash flow increased to **6,139.00 million USD** in Q3 2024 due to an overall boost of **$845 million (16%)** compared to Q3 2023. This jump was primarily driven by a **$1.2 billion increase in net income adjusted for non‑cash items**, along with favorable changes in working capital. Additionally, the reduction in merger‑related costs—from **$345 million** in Q3 2023 to **$124 million** in Q3 2024—also contributed to the improved cash flow.  **[0001283699-24-000142_tmus-20240930.htm:60]** 

Why did Operating Cash Flow jump to 6,139.00 in Q3 2024?

The notable increase in FY 2024 Operating Cash Flow is primarily driven by a **$3,022 million (36%) increase in net income** resulting from improved operating performance and higher revenues.  **[0001283699-25-000012_tmus-20241231.htm:63]** **[0001283699-25-000012_tmus-20241231.htm:49]**  Additionally, there were **beneficial adjustments for non-cash items**, including a **$520 million increase in deferred income tax expense**.  **[0001283699-25-000012_tmus-20241231.htm:83]**  Improvements in working capital also contributed, with a **$49 million decrease** in net cash outflows from working capital changes, and the company benefited from **reduced merger-related costs**—FY 2024 incurred **$767 million** in these costs compared to **$2.0 billion** in FY 2023.  **[0001283699-25-000012_tmus-20241231.htm:63]** **[0001283699-25-000012_tmus-20241231.htm:64]** 

What explains the notable increase in FY 2024 Operating Cash Flow?

The lower CAPEX in Q3 2024 was driven by **increased capital efficiencies** from accelerated investments in T‑Mobile's nationwide 5G network build-out in previous years. This improvement resulted in a **19% decline** in CAPEX year-over-year, and the planned timing of capital expenditures contributed to a **4% sequential decrease**, making the CAPEX figure less negative than in the previous year.  **[0001283699-24-000141_tmus09302024ex992.htm:3]** 

Why was CAPEX lower (less negative) in Q3 2024 compared to the previous year?

3cdbf4af6a82741a57273256edb6410315d10f0fe4c1ee7191c48dc2aede52ee

The increase in **Cash and cash equivalents** in **Q3 2024** was primarily driven by a significant shift in T-Mobile US, Inc.'s cash flows, resulting from improved operating performance and a swing in financing activities. In particular, there was an increase in **Net Cash Provided by Operating Activities** (with a $1.2 billion boost in net income and positive adjustments) and a major shift in financing, with a change of **$6,017 million** from outflows to inflows. Although there was also a rise in cash used for investing activities due to substantial purchases in spectrum licenses, intangible assets, and property and equipment, the inflows from operating and financing activities more than offset these uses, thus resulting in the higher cash balance in Q3 2024.  **[0001283699-24-000142_tmus-20240930.htm:2]** **[0001283699-24-000141_tmus09302024ex992.htm:5]** **[0001283699-24-000142_tmus-20240930.htm:60]** 

Why was Cash and cash equivalents so high in Q3 2024?

The increase in **Short-term debt** in Q3 2024 was primarily driven by **reclassifications** and **repayments**. Specifically, **$5,458 million** of long-term debt was reclassified as short-term debt, reflecting the shift of debt due within the next 12 months, while **$669 million** in repayments partially offset this increase. Additionally, earlier note redemptions, such as the **$2,500 million** redemption of 7.125% Senior Notes, also played a role in shaping the debt profile during the period.  **[0001283699-24-000142_tmus-20240930.htm:24]** 

What drove the increase in Short-term debt in Q3 2024?

T-Mobile’s rise in long-term debt during Q4 2024 was driven by several key factors. **New issuances of Senior Notes** significantly increased the total debt, with a combined principal amount of **$7,650 million** (net proceeds of **$7,592 million** after adjustments) from multiple note offerings, including the **4.850% Senior Notes due 2029**, **5.150% Senior Notes due 2034**, and **5.500% Senior Notes due 2055**. Meanwhile, there were substantial **redemptions and repayments** totaling **$5,073 million** that partially offset the new issuances. Collectively, the net effect of these activities led to the reported **$2,798 million** increase in long-term debt for the period.  **[0001283699-25-000012_tmus-20241231.htm:125]** 

What factors contributed to the rise in Long-term debt in Q4 2024?

822d2e3dc03d2b809ffc9d538f5e5db3f5dfd12049522dde5db272caa8da5aaf

Postpaid revenues (USD, millions)

Prepaid revenues (USD, millions)

Wholesale and other service revenues (USD, millions)

Total service revenues (USD, millions)

Equipment revenues (USD, millions)

Other revenues (USD, millions)

Total revenues (USD, millions)

Cost of services, exclusive of depreciation and amortization (USD, millions)

Cost of equipment sales, exclusive of depreciation and amortization (USD, millions)

Selling, general and administrative expenses (USD, millions)

Depreciation and amortization (USD, millions)

Total operating expenses (USD, millions)

Operating income (USD, millions)

Interest expense, net (USD, millions)

Other income (expense), net (USD, millions)

Total other expense, net (USD, millions)

Income before income taxes (USD, millions)

Income tax expense (USD, millions)

Net income (USD, millions)

d62b4d629d54fcf4e2c273ac854464e1b5e44df50eafbcd308273fdd171af639

Net Income (USD, millions)

Depreciation and Amortization (USD, millions)

Stock-Based Compensation Expense (USD, millions)

Deferred Income Tax Expense (USD, millions)

Bad Debt Expense (USD, millions)

Losses from Sales of Receivables (USD, millions)

Changes in Accounts Receivable (USD, millions)

Changes in Equipment Installment Plan Receivables (USD, millions)

Changes in Inventory (USD, millions)

Changes in Operating Lease Right-of-Use Assets (USD, millions)

Changes in Other Current and Long-Term Assets (USD, millions)

Changes in Accounts Payable and Accrued Liabilities (USD, millions)

Changes in Short- and Long-Term Operating Lease Liabilities (USD, millions)

Changes in Other Current and Long-Term Liabilities (USD, millions)

Changes in Other, Net Operating Assets and Liabilities (USD, millions)

Net Cash Provided by Operating Activities (USD, millions)

Purchases of Property and Equipment, including Capitalized Interest (USD, millions)

Purchases of Spectrum Licenses and Other Intangible Assets, including Deposits (USD, millions)

Proceeds Related to Beneficial Interests in Securitization Transactions (USD, millions)

Acquisition of Companies, Net of Cash Acquired (USD, millions)

Other, Net Investing Activities (USD, millions)

Net Cash Used in Investing Activities (USD, millions)

Proceeds from Issuance of Long-Term Debt (USD, millions)

Repayments of Financing Lease Obligations (USD, millions)

Repayments of Long-Term Debt (USD, millions)

Repurchases of Common Stock (USD, millions)

Dividends on Common Stock (USD, millions)

Tax Withholdings on Share-Based Awards (USD, millions)

Other, Net Financing Activities (USD, millions)

Net Cash Used in Financing Activities (USD, millions)

Change in Cash and Cash Equivalents, Including Restricted Cash and Cash Held for Sale (USD, millions)

Cash and Cash Equivalents, Including Restricted Cash and Cash Held for Sale, Beginning of Period (USD, millions)

Cash and Cash Equivalents, Including Restricted Cash and Cash Held for Sale, End of Period (USD, millions)

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4be19a8a7daed992a47879596aa70227df7d59458a1460856aeba23a2c9d517b

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

1463d41408315c7406759913aa5d7b0410a009b25a3bf3c15319c1beddeabbb0

b6d330c0389e1c57ec352b303d3a309793879982c72b467127a421d3b809e312

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4a26421036104ed2b9e56b143aab24e7359f14bb33eff461c8e85939fa199b12

T-Mobile US (TMUS)

Financials