T-Mobile Reports Strong Q4 & Full Year 2025 Results with Industry-Leading Customer Growth and Positive 2026 Outlook

summarizeSummary

T-Mobile reported strong Q4 and full year 2025 financial and operating results, driven by industry-leading customer growth and network quality awards, alongside a positive outlook for 2026.

check_boxKey Events

• Industry-Leading Customer Growth

  Achieved 2.4 million total postpaid net customer additions in Q4 2025 and 7.8 million for the full year, along with 558 thousand total broadband net customer additions in Q4 and 2.0 million for the full year, both noted as industry best.

• Strong Financial Performance

  Reported service revenues of $18.7 billion in Q4 2025 (up 10% YoY) and $71.3 billion for the full year (up 8% YoY). Core Adjusted EBITDA grew 7% year-over-year to $33.9 billion for 2025, and Adjusted Free Cash Flow increased 6% to $18.0 billion.

• Q4 Net Income Impacted by One-Time Costs

  Net income for Q4 2025 was $2.1 billion, and diluted EPS was $1.88, impacted by $293 million in severance and related costs from a 2025 workforce transformation and reinvestment initiative.

• Positive 2026 Outlook

  Provided guidance for 2026, expecting postpaid net account additions between 900 thousand and 1.0 million, Core Adjusted EBITDA between $37.0 billion and $37.5 billion (up 10% YoY at midpoint), and Adjusted Free Cash Flow between $18.0 billion and $18.7 billion.

auto_awesomeAnalysis

T-Mobile US, Inc. delivered robust fourth quarter and full year 2025 results, showcasing industry-leading customer growth across all key categories, including postpaid net customer additions and total broadband net customer additions. While Q4 and full-year net income and diluted EPS saw a slight decrease due to one-time severance and impairment costs, underlying profitability metrics like Core Adjusted EBITDA and Adjusted Free Cash Flow demonstrated strong year-over-year growth. The company also provided an optimistic outlook for 2026, projecting continued growth in customer accounts and a 10% increase in Core Adjusted EBITDA at the midpoint, reinforcing its competitive position and operational efficiency. This positive earnings report follows recent financing activities, including a $2.0 billion senior notes offering and an amended $10.0 billion revolving credit facility, which have strengthened the company's financial flexibility.