T-Mobile US Inc Q2 2025 Earnings Transcript Summary
Highlights
- Best Q2 postpaid phone recent additions in T-Mobile's history.
- ARPA growth: over 5% (highest growth in 8 years).
- Postpaid service revenue growth: 9% YoY.
- Total service revenue growth: 6% YoY.
- Industry-leading core adjusted EBITDA growth: 6% YoY.
- Adjusted free cash flow: $4.6 billion (new Q2 record, conversion 26% from service revenues).
- Improved network with launch of 1000 greenfield sites, planning 4000 in total for the year.
- Industry-leading postpaid share growth in smaller markets and rural areas.
- 14th consecutive quarter-leading broadband industry in net additions.
- Announced partnership with cable for growth in SMB sector.
T-Mobile Reports Record-breaking Q2 2025 Results
In a stellar quarter, T-Mobile has once again demonstrated its capabilities to lead the telecommunications industry both in customer acquisitions and financial performance. The company shattered its own Q2 records with tremendous growth across multiple metrics, emphasizing its powerful market presence even amid fierce competition.
Unprecedented Metrics in Growth and Revenue
T-Mobile has seen its best Q2 yet for postpaid phone net additions, along with setting new highs for total postpaid net additions. Revenue metrics also tell an impressive story, with postpaid service revenue rising by 9% year over year, and total service revenues up by 6%. This substantial growth path reflects T-Mobile's consistent ability to maintain its industry-leading position.
Financial Highlights
T-Mobile announced robust financial results, achieving a formidable 6% year-over-year growth in core adjusted EBITDA, showcasing their capacity for converting service revenue at an impressive rate of 26% to free cash flow, reaching a new Q2 record of $4.6 billion. Moreover, the company's ARPA growth exceeded 5%, marking the most substantial increase they've experienced in the past eight years.
Network Expansion and Strategic Alliances
T-Mobile fortified its network dominance by taking significant strides in rolling out advanced technologies and expanding its physical presence. The company's launch of 1,000 new greenfield sites this year, with plans to reach 4,000, reflects its commitment to maintaining the best network quality.
Further amplifying its reach, T-Mobile announced an innovative partnership with cable service providers. This alliance is tailored toward the small and mid-market business sector, presenting a significant opportunity for incremental revenue. The arrangement strategically positions T-Mobile to leverage its existing competitive advantages in smaller markets and rural spaces, which have already witnessed leading postpaid share growth.
In terms of fixed wireless access (FWA) and broadband, T-Mobile not only defended its leadership position but extended it by once again topping the industry in net additions for the 14th quarter in a row.
T-Mobile's Q2 results underscore the depth of its growth strategy, marked by record-breaking performances across multiple domains while carving out new opportunities through strategic partnerships and a relentless focus on network enhancements. As customer and shareholder expectations rise, T-Mobile's adaptability and forward-thinking approach assure its sustained eminence in the telecom sector.