T-Mobile’s net income for the quarter totaled $3.22 billion and revenue rose nearly 7% year-over-year to $21.13 billion
In sum – what you need to know:
Postpaid growth crushes forecasts – T-Mobile added 1.73 million postpaid customers in Q2, far surpassing expectations and bringing its total subscriber base to 132.8 million.
Broadband momentum holds – 5G broadband net adds rose 12% YoY to 454,000, as T-Mobile continues to scale its fixed wireless access footprint.
Outlook raised across the board – The carrier boosted its 2025 guidance for postpaid net adds, EBITDA, and free cash flow, signaling strong confidence in continued growth.
T-Mobile US raised its full-year guidance and posted blockbuster second-quarter results, beating Wall Street estimates on virtually every key metric and asserting its leadership in customer and financial growth.
The company now expects 2025 postpaid net customer additions between 6.1 million and 6.4 million — up from a prior forecast of 5.5 million to 6 million, and well ahead of the 5.94 million analysts had anticipated. T-Mobile also slightly lifted its core adjusted EBITDA guidance to a range of $33.3 billion to $33.7 billion, with a midpoint matching the previous consensus estimate of $33.5 billion. Adjusted free cash flow is now expected between $17.6 billion and $18 billion, up from prior guidance of $17.5 billion to $18 billion.
In Q2, T-Mobile added 830,000 postpaid phone net customers, topping analyst expectations of 713,522. Total postpaid net customer additions reached 1.73 million, well ahead of the 1.34 million estimate. Meanwhile, 5G broadband net additions rose 12% year-over-year to 454,000, and postpaid phone churn edged up slightly to 0.90%, a 10-basis-point increase from last year.
By the end of the quarter, the company served 132.8 million total customers, compared to 125.9 million in the same period last year and above the expected 132.2 million.
T-Mobile’s performance starkly contrasted with rivals. Verizon reported 51,000 wireless retail postpaid phone losses in its consumer segment, with 65,000 additions in its business unit. AT&T posted 401,000 postpaid phone net additions, also ahead of expectations.
Seeking Alpha analyst Michael Dion expressed surprise at the strength of the quarter. “I’ve been cautious on T-Mobile due to valuation concerns and the rising risk of a price war, but this Q2 print really surprised me,” he said. “With 1.7 million postpaid net adds, 9% growth in postpaid service revenue, and a 27% surge in operating cash flow, this was a beat across every metric that matters. On top of that, they raised full-year guidance for net adds, EBITDA, and free cash flow. It is really hard to poke holes in execution this strong.”
Net income for the quarter totaled $3.22 billion, up from $2.93 billion a year ago, and revenue rose nearly 7% year-over-year to $21.13 billion, exceeding the consensus estimate by more than $100 million.
On the investor call, CEO Mike Sievert emphasized the company’s momentum: “We led the industry in both customer growth and in financial growth across multiple metrics. And more importantly, we smashed our own records. This was the greatest Q2 for growth ever in T-Mobile’s storied history.”
He highlighted several growth initiatives, including the recently launched T-Satellite service that aims to connect users across 500,000 square miles of previously uncovered U.S. territory. T-Mobile also continues to expand its footprint in fiber. Following the April close of its joint venture acquisition of Lumos, the company launched T-Fiber and expects to finalize its Metronet JV acquisition soon. With both up and running, T-Mobile plans to deliver 100,000 or more fiber net additions on top of its 5G broadband growth this year.
“We are off to the races,” Sievert said. “There are growth opportunities everywhere we look. We have built these differentiated and durable advantages over time and with unwavering focus.
T-Mobile executive VP and CFO Peter Osvaldik also detailed a spectrum transaction with Grain Management that will see T-Mobile divest its entire 800 MHz portfolio in exchange for $2.9 billion in cash and Grain’s 600 MHz licenses, plus potential upside from future monetization. The deal is expected to generate $850 million in incremental tax income after close.
The company’s updated guidance includes the pending Metronet acquisition but excludes its planned acquisition of UScellular assets. On that front, Sievert said, “We can’t wait to welcome UScellular customers to the T-Mobile family. The combination gives us an expected 50% or more increase in capacity in the combined footprint and our site coverage will expand by one-third from 9,000 to 12,000 sites.”
