Executive Summary
T-Mobile US Inc delivered a solid Q3 2025 result with revenue of $21.96 billion, up 8.9% year over year and 3.9% quarter over quarter, supported by a healthy postpaid base and ongoing device-related monetization. Gross margins remained robust at approximately 49.3%, while operating margin stood around 20.6%, reflecting a mix of higher service revenues and ongoing network and device investments. Net income of $2.71 billion and EPS of $2.42 (diluted $2.41) underscore a durable profitability profile, even as the company absorbs elevated fixed costs associated with 5G network expansion and device ecosystems. EBITDA reached $7.80 billion, with an EBITDA margin of about 35.5%, signaling strong cash generation despite competitive and capex pressures.
Key Performance Indicators
QoQ: -21.32% | YoY:-17.59%
QoQ: -13.10% | YoY:-5.55%
QoQ: -15.77% | YoY:-11.28%
QoQ: -14.79% | YoY:-7.63%
Key Insights
Revenue: $21.957B; YoY +8.90%, QoQ +3.90%; Gross Profit: $10.823B; Gross Margin 49.29%; YoY -17.59%, QoQ -21.32%; Operating Income: $4.530B; Operating Margin 20.63%; YoY -5.55%, QoQ -13.10%; Net Income: $2.714B; Net Margin 12.36%; YoY -11.28%, QoQ -15.77%; EPS: $2.42; Diluted $2.41; YoY -7.63%, QoQ -14.79%; EBITDA: $7.796B; EBITDA Margin ~35.50%; Operating Cash Flow per Share: $6.64; Free Cash Flow per Share: $4.29; Cash per Share: $2.95; Payout Ratio: 36.4%; Interest Coverage: 5.27x; Debt to Ca...
Financial Highlights
Revenue: $21.957B; YoY +8.90%, QoQ +3.90%; Gross Profit: $10.823B; Gross Margin 49.29%; YoY -17.59%, QoQ -21.32%; Operating Income: $4.530B; Operating Margin 20.63%; YoY -5.55%, QoQ -13.10%; Net Income: $2.714B; Net Margin 12.36%; YoY -11.28%, QoQ -15.77%; EPS: $2.42; Diluted $2.41; YoY -7.63%, QoQ -14.79%; EBITDA: $7.796B; EBITDA Margin ~35.50%; Operating Cash Flow per Share: $6.64; Free Cash Flow per Share: $4.29; Cash per Share: $2.95; Payout Ratio: 36.4%; Interest Coverage: 5.27x; Debt to Capitalization: 65.6%; Current Ratio: 0.893; Quick Ratio: 0.796; Cash Ratio: 0.136; ROA: 1.25%; ROE: 4.49%; ROCE: 2.35%; Capex Coverage: 2.83x; Free Cash Flow to Operating Cash Flow Ratio: 0.646; Dividend Yield: 0.37%; Net Debt to EBITDA and other leverage metrics reflect a capital-intensive business with solid cash generation.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
21.96B |
8.90% |
3.90% |
| Gross Profit |
10.82B |
-17.59% |
-21.32% |
| Operating Income |
4.53B |
-5.55% |
-13.10% |
| Net Income |
2.71B |
-11.28% |
-15.77% |
| EPS |
2.42 |
-7.63% |
-14.79% |
Key Financial Ratios
operatingProfitMargin
20.6%
operatingCashFlowPerShare
$6.64
freeCashFlowPerShare
$4.29
dividendPayoutRatio
36.4%
Management Commentary
Note: The provided data set includes an empty earnings transcript. As a result, there are no management quotes or transcript-derived themes available to annotate in this section. Typical themes in TMUS calls include network investment cadence, ARPU/mix shifts, device financing and portfolio monetization, capital allocation (dividends vs. buybacks vs. debt reduction), and guidance updates. The absence of transcript content prevents direct thematic extraction here.
Transcript not provided in the supplied data.
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Transcript not provided in the supplied data.
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Forward Guidance
There is no explicit forward-looking guidance contained in the provided QQ3 2025 data. Given the strong quarterly cash generation (Operating Cash Flow per Share $6.64 and Free Cash Flow per Share $4.29) and a payout ratio of 36.4%, the company appears well-positioned to sustain dividends and fund ongoing network investments. Our assessment of achievability rests on stable postpaid/net-add momentum, continued 5G network monetization, and disciplined capex, balanced against potential macro headwinds and competitive intensity from Verizon and AT&T. Investors should monitor: (i) trajectory of ARPU and churn, (ii) variable costs tied to spectrum and device financing, (iii) capital expenditure cadence and spectrum costs, (iv) any shifts in capital allocation strategy (dividends vs. buybacks vs. debt reduction).