T-Mobile Q2 2025 slides: Record customer growth drives upward guidance revision

Introduction & Market Context

T-Mobile US Inc. (NASDAQ:TMUS) released its Q2 2025 investor presentation on July 23, 2025, showcasing record customer growth and strong financial performance that prompted the company to raise its full-year guidance. The wireless carrier continues to outpace competitors in key metrics while delivering substantial returns to shareholders.

Despite the strong quarterly performance, T-Mobile’s stock closed at $233.25 on July 23, relatively unchanged with a modest 0.29% increase. This follows a pattern seen in the previous quarter when the stock dipped 4.87% after Q1 earnings despite beating forecasts.

Quarterly Performance Highlights

T-Mobile reported exceptional customer growth in Q2 2025, achieving what it described as "industry-leading" results across multiple categories. The company added 830,000 postpaid phone customers, marking its best-ever second quarter performance in this critical metric.

As shown in the following comprehensive overview of key performance indicators, T-Mobile demonstrated strong growth across both customer and financial metrics:

Total (EPA:TTEF) postpaid net customer additions reached 1.7 million, while postpaid net account additions totaled 318,000 – both described as industry-leading figures. The company also added 454,000 5G broadband customers, continuing its momentum in the home internet market.

The customer growth trends are clearly illustrated in the following chart showing consistent increases in postpaid accounts over the past five quarters:

T-Mobile’s Average Revenue Per Account (ARPA) increased 5% year-over-year to $149.87, primarily driven by rate plan optimizations, higher fee revenue, increased customers per account, and greater adoption of premium services. Postpaid phone Average Revenue Per User (ARPU) also rose 3% to $50.62.

Detailed Financial Analysis

The strong customer performance translated into robust financial results. Service revenues grew 6% year-over-year to $17.4 billion, with postpaid service revenues increasing 9% to $14.1 billion, as shown in the following chart:

Net income reached a record $3.2 billion, up 10% year-over-year, while diluted earnings per share grew 14% to $2.84. This represents a significant acceleration from the $2.58 EPS reported in Q1 2025.

The following chart illustrates T-Mobile’s consistent net income growth and improving margins:

Core Adjusted EBITDA increased 6% year-over-year to $8.5 billion, while net cash provided by operating activities surged 27% to $7.0 billion, representing a strong margin of 40%. Adjusted free cash flow grew 4% to $4.6 billion.

Equipment revenues increased 11% year-over-year, primarily due to higher average revenue per device sold and increased liquidation revenue. Meanwhile, cost of services increased just 2%, and SG&A expenses as a percentage of service revenue decreased slightly to 31.1% from 31.6% a year earlier.

Forward-Looking Statements & Revised Guidance

Based on its strong first-half performance, T-Mobile raised its full-year 2025 guidance across multiple key metrics, as shown in the following table:

The company now expects postpaid net customer additions of 6.1 to 6.4 million for the full year, up from the previous forecast of 5.5 to 6.0 million – a 500,000 customer increase at the midpoint. Core Adjusted EBITDA guidance was raised by $50 million to $33.3 to $33.7 billion.

Similarly, T-Mobile increased its cash flow projections, with net cash provided by operating activities now expected to be $27.1 to $27.5 billion (up $50 million) and adjusted free cash flow projected at $17.6 to $18.0 billion (also up $50 million).

This upward revision contrasts with the more conservative guidance provided after Q1 results, when the company maintained its original outlook despite strong performance. The raised guidance suggests increasing confidence in T-Mobile’s competitive position and execution capabilities.

Capital Structure & Shareholder Returns

T-Mobile continued to return significant capital to shareholders while managing its debt load. The company reported total debt, excluding tower obligations, of $85.3 billion at the end of Q2 2025, with net debt of $75.0 billion.

As illustrated in the following chart, T-Mobile’s shareholder return program remained robust:

During Q2 2025, the company repurchased 10.1 million shares for approximately $2.5 billion. Additionally, T-Mobile paid a cash dividend of $0.88 per share, totaling approximately $996 million, on June 12, 2025.

The combination of strong operational performance, raised guidance, and substantial shareholder returns underscores T-Mobile’s continued momentum in the wireless telecommunications market. The company’s ability to deliver industry-leading customer growth while maintaining financial discipline positions it well for the remainder of 2025.

Full presentation:

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