T-Mobile US Inc reported solid QQ3 2024 results, underscoring resilience in a competitive US wireless market. Revenue of $20.162 billion rose 4.7% year over year and 1.97% quarter over quarter, while gross profit reached $13.133 billion, delivering a gross margin of approximately 65.1%. Operating income of $4.796 billion and net income of $3.060 billion translated into an operating margin of 23.8% and a net margin of 15.2%, with EPS of $2.62 (diluted $2.61). EBITDA was $7.954 billion, supporting a strong EBITDA margin around 39.5%. Free cash flow to the equity holder was $1.76 billion, and net cash from operations stood at $6.14 billion, with capital expenditures of $4.38 billion and a year-to-date free cash flow realization consistent with a cash-generative core business.
The balance sheet shows a large but manageable scale of leverage: total debt at $116.15 billion and net debt of about $106.40 billion against total assets of $210.74 billion and stockholders’ equity of $64.25 billion. Liquidity remains robust with cash and cash equivalents of about $9.75 billion and total liquidity signals (operating cash flow, cash balance) supporting near-term obligations. Profitability metrics remain strong by telecom standards, with an implied coverage profile (interest coverage about 6.1x) and a payout ratio of roughly 24.8% based on reported figures. However, the long-term debt burden underscores a leverage-sensitive setup that warrants attention to debt refinancing risk and cash flow stability.
Overall, the QQ3 2024 print reinforces T-Mobile’s position as a leading US wireless carrier with meaningful upside from 5G monetization, postpaid growth, and disciplined cash flow generation, while highlighting the ongoing imperative to manage a high debt load in a high-capital-expenditure environment.