Mar 31

T-Mobile Q1 2025 Earnings Report

T-Mobile delivered record-breaking Q1 results with best-ever postpaid customer additions and strong financial performance.

Key Takeaways

T-Mobile posted its best-ever Q1 performance in terms of postpaid net additions and achieved record service revenue, net income, and free cash flow, reflecting strong customer growth and operational efficiency.

Total Revenue
$20.9B
Previous year: $19.6B
+6.6%
EPS
$2.58
Previous year: $2
+29.0%
Net Postpaid Additions
1.34M
Previous year: 1.22M
+9.6%
Net Prepaid Additions
45K
Previous year: -48K
-193.8%
Postpaid Phone Churn
0.01%
Previous year: 0.01%
+5.8%
Free Cash Flow
$4.4B
Previous year: $2.46B
+78.9%

T-Mobile

T-Mobile

T-Mobile Revenue by Segment

T-Mobile Revenue by Geographic Location

Forward Guidance

T-Mobile raised full-year 2025 guidance, driven by momentum in customer growth, network leadership, and operational efficiency.

Positive Outlook

  • Maintained highest-ever postpaid net addition guidance: 5.5M–6.0M
  • Raised Core Adjusted EBITDA guidance midpoint by $100M to $33.2B–$33.7B
  • Increased expected net cash from operations to $27.0B–$27.5B
  • Maintained capex guidance at ~$9.5B
  • Raised free cash flow guidance midpoint by $200M to $17.5B–$18.0B

Challenges Ahead

  • No forecasted net income due to variability of tax and interest
  • Increased effective tax rate guidance to 26%
  • Postpaid phone net additions decreased YoY
  • Postpaid phone churn slightly increased YoY
  • Capex slightly increased sequentially, impacting short-term cash flow