T-Mobile: T-Mobile Leads the Industry Once Again With Continued Durable Customer Growth, Including Best Ever Q1 Postpaid Gross and Net Additions, Translating to Outstanding Financial Growth

In This Article: Higher Gross Additions in Every Category Drove Industry-Leading Customer Performance, Alongside Record Q1 Diluted EPS, Strong Net Cash Provided by Operating Activities and Record Q1 Adjusted Free Cash Flow, Underscoring Un-carrier's Focus on Consistent Execution and Profitable Growth BELLEVUE, Wash., April 24, 2025 --( BUSINESS WIRE )--T-Mobile US, Inc. (NASDAQ: TMUS): Industry-Leading Customer Growth Fueled by Best Network, Best Value and Best Experience Combination (1) Postpaid net customer additions of 1.3 million, best ever Q1 and best in industry Postpaid phone net customer additions of 495 thousand, best in industry Postpaid net account additions of 205 thousand, best in industry High Speed Internet net customer additions of 424 thousand, industry best alongside best ever churn Translating Industry-Leading Customer Growth into Industry-Leading Financial Growth Service revenues of $16.9 billion grew 5% year-over-year, best in industry growth Postpaid service revenues of $13.6 billion grew 8% year-over-year, best in industry growth Net income of $3.0 billion grew 24% year-over-year, best ever Q1 Diluted earnings per share ("EPS") of $2.58 grew 29% year-over-year, best ever Q1 Core Adjusted EBITDA (2) of $8.3 billion grew 8% year-over-year, best in industry growth Net cash provided by operating activities of $6.8 billion grew 35% year-over-year Adjusted Free Cash Flow (2) of $4.4 billion grew 31% year-over-year, best ever Q1 Extending Overall Network Lead with Best Assets, Customer Centricity and Technology Leadership T-Mobile adds to its network technology leadership, as the only carrier in the country to roll out a nationwide 5G Advanced network leveraging the nation's only standalone 5G core to better serve customers, enabling advanced carrier aggregation to achieve record-breaking 6.3 Gbps downlink speeds in a recent field test, along with dynamic slicing, lower latency, and more efficient IoT throughput Additionally, with the beta launch of T-Satellite, T-Mobile now operates the only satellite network in the US that works on most modern smartphones (3) , and seamlessly connects from terrestrial to satellite networks, with hundreds of thousands of active customers already using it and over a million messages delivered, providing an unparalleled direct-to-cell experience to any mobile customer enrolled in the beta, including AT&T and Verizon customers Opensignal named T-Mobile the global winner in download speed experience among countries with large landmass (4) , the only carrier in the world with the honor RootMetrics, an Ookla company, awarded T-Mobile with the best 5G availability in a February 2025 report for the 8th consecutive time T-Mobile US, Inc. (NASDAQ: TMUS) reported first quarter 2025 results today, delivering its highest ever postpaid net and gross customer additions, alongside industry-leading postpaid phone, postpaid account, and broadband net additions. The company translated its industry-leading customer growth into industry-best service revenue growth, which grew at a rate more than three times its next closest wireless competitor, record Q1 Net income, industry-leading Core Adjusted EBITDA growth at double the average of its wireless peer group, strong net cash provided by operating activities and highest-ever Q1 Adjusted Free Cash Flow, while fueling stockholder returns of $3.5 billion in Q1. "T-Mobile delivered big yet again with outstanding Q1 results across wireless and broadband, including our best ever Q1 total postpaid customer gross and net additions-proof that our consistent customer-first focus has put us in the best position to succeed in this dynamic environment," said Mike Sievert, CEO of T-Mobile. "A record number of customers chose the Un-carrier in Q1 - we grew postpaid gross additions year-over-year across the board and our High Speed Internet business led the industry in net customer additions for the 13th straight quarter. And all of this customer growth drove fantastic financial growth with strong net cash provided by operating activities and our highest-ever Q1 Adjusted Free Cash Flow. This is a great start to 2025, and we're excited about what's to come as we continue to deliver innovative experiences, our best-in-class network, and unmatched value to customers." (1) AT&T Inc. does not disclose postpaid net account additions. Comcast and Charter do not disclose postpaid phone net customer additions. 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, 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) T-Satellite service is compatible with most modern smartphones released in the last 4 years. (4) Opensignal awarded T-Mobile the sole global Winner in its "large land area group", which contains operators from markets with a land area of more than 200,000km 2 . Industry-Leading Customer Growth Fueled by Best Network, Best Value and Best Experience Combination (1) Postpaid net customer additions of 1.3 million increased 117 thousand year-over-year. Postpaid phone net customer additions of 495 thousand decreased 37 thousand year-over-year. Postpaid phone churn of 0.91% increased 5 basis points year-over-year. Postpaid net account additions of 205 thousand decreased 13 thousand year-over-year. Prepaid net customer additions of 45 thousand increased 93 thousand year-over-year. Prepaid churn of 2.68% improved 7 basis points year-over-year. High Speed Internet net customer additions of 424 thousand increased 19 thousand year-over-year. T-Mobile ended the quarter with 6.9 million High Speed Internet customers. Total net customer additions were 1.4 million and increased 210 thousand year-over-year. Total customer connections increased to a record high of 130.9 million. Quarter (in thousands, except churn) Q1 2025 Q4 2024 Q1 2024 Postpaid net account additions 205 263 218 Total net customer additions 1,382 2,036 1,172 Postpaid net customer additions (2) 1,337 1,933 1,220 Postpaid phone net customer additions 495 903 532 Postpaid other net customer additions (2) 842 1,030 688 Prepaid net customer additions (losses) (2) 45 103 (48 ) Total customers, end of period (2) 130,910 129,528 120,872 Postpaid phone churn 0.91 % 0.92 % 0.86 % Prepaid churn 2.68 % 2.85 % 2.75 % High Speed Internet net customer additions 424 428 405 Total High Speed Internet customers, end of period 6,854 6,430 5,181 (1) AT&T Inc. does not disclose postpaid net account additions. Comcast and Charter do not disclose postpaid phone net customer additions. Industry-leading claims are based on consensus expectations if results are not yet reported. (2) Includes High Speed Internet customers. Translating Industry-Leading Customer Growth into Industry-Leading Financial Growth (1) Total service revenues increased 5% year-over-year to $16.9 billion, and Postpaid service revenues increased 8% year-over-year to $13.6 billion. Net income increased 24% year-over-year to $3.0 billion. Diluted EPS increased 29% year-over-year to $2.58 per share. Core Adjusted EBITDA increased 8% year-over-year to $8.3 billion. Net cash provided by operating activities (2) increased 35% year-over-year to $6.8 billion. Cash purchases of property and equipment, including capitalized interest decreased 7% year-over-year to $2.5 billion. Adjusted Free Cash Flow increased 31% year-over-year to $4.4 billion. Stockholder Returns of $3.5 billion in Q1 2025, including common stock repurchases of $2.5 billion and cash dividends of $1.0 billion as part of current stockholder return authorization of up to $14.0 billion, for cumulative stockholder returns (3) of $34.8 billion since program inception, split across repurchases of $29.8 billion and cash dividends of $5.1 billion. Quarter Q1 2025 vs. Q4 2024 Q1 2025 vs. Q1 2024 (in millions, except EPS) Q1 2025 Q4 2024 Q1 2024 Total service revenues $ 16,925 $ 16,928 $ 16,096 - % 5.2 % Postpaid service revenues 13,594 13,502 12,631 0.7 % 7.6 % Total revenues 20,886 21,872 19,594 (4.5 )% 6.6 % Net income 2,953 2,981 2,374 (0.9 )% 24.4 % Diluted EPS 2.58 2.57 2.00 0.4 % 29.0 % Adjusted EBITDA 8,259 7,916 7,652 4.3 % 7.9 % Core Adjusted EBITDA 8,258 7,905 7,617 4.5 % 8.4 % Net cash provided by operating activities (2) 6,847 5,549 5,084 23.4 % 34.7 % Cash purchases of property and equipment, including capitalized interest 2,451 2,212 2,627 10.8 % (6.7 )% Adjusted Free Cash Flow 4,396 4,084 3,347 7.6 % 31.3 % (1) Industry-leading claims are based on consensus expectations if results are not yet reported. (2) Effective November 1, 2024, following amendments to the company's Equipment Installment Plan Sale and Service Receivable Sale arrangements, all cash proceeds associated with the sale of such receivables, a portion of which was previously recognized as Proceeds related to beneficial interests in securitization transactions within investing cash flows, were recognized as operating cash flows. These amendments did not have a net impact on Adjusted Free Cash Flow. (3) Beginning in Q3 2022 through March 31, 2025. Extending Overall Network Lead with Best Assets, Customer Centricity and Technology Leadership The company continues to extend its network leadership through innovati