TMUS
CommsT-Mobile US
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Market Data
Financials
XBRL · SEC EDGAR2008–2025(18yr)| Metric | FY 2008 | FY 2009 | FY 2010 | FY 2011 | FY 2012 | FY 2013 | FY 2014 | FY 2015 | FY 2016 | FY 2017 | FY 2018 | FY 2019 | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025Latest | YoY |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $2.8B | $3.5B | $4.1B | $20.6B | $19.7B | $24.4B | $29.6B | $32.1B | $37.2B | $40.6B | $43.3B | $45.0B | $68.4B | $80.1B | $79.6B | $78.6B | $81.4B | $88.3B | +8.5% |
| Gross Profit | $2.0B | $1.5B | $1.8B | $17.7B | $16.8B | $17.4B | $19.9B | $22.7B | $26.4B | $29.0B | — | — | — | — | — | — | — | — | — |
| Gross Margin | 74.4% | 42.4% | 43.0% | 85.9% | 85.1% | 71.4% | 67.5% | 70.8% | 70.9% | 71.4% | — | — | — | — | — | — | — | — | — |
| Operating Income | $467.8M | $535.3M | $718.9M | $747.5M | $824.0M | $996.0M | $1.4B | $2.1B | $3.8B | $4.9B | $5.3B | $5.7B | $6.6B | $6.9B | $6.5B | $14.3B | $18.0B | $18.3B | +1.5% |
| Operating Margin | 17.0% | 15.4% | 17.7% | 3.6% | 4.2% | 4.1% | 4.8% | 6.4% | 10.2% | 12.0% | 12.3% | 12.7% | 9.7% | 8.6% | 8.2% | 18.2% | 22.1% | 20.7% | -1.4pp |
| Net Income | $149.4M | $176.8M | $193.4M | $301.3M | $394.2M | $35.0M | $247.0M | $733.0M | $1.5B | $4.5B | $2.9B | $3.5B | $3.1B | $3.0B | $2.6B | $8.3B | $11.3B | $11.0B | -3.1% |
| Net Margin | 5.4% | 5.1% | 4.8% | 1.5% | 2.0% | 0.1% | 0.8% | 2.3% | 3.9% | 11.2% | 6.7% | 7.7% | 4.5% | 3.8% | 3.3% | 10.6% | 13.9% | 12.4% | -1.5pp |
| Free Cash Flow | -$507.1M | $67.7M | $204.1M | $172.0M | $335.6M | -$480.0M | -$171.0M | $690.0M | $1.4B | $2.7B | -$1.6B | $433.0M | -$2.4B | $1.6B | $2.8B | $8.8B | $13.5B | $18.0B | +33.8% |
| FCF Margin | -18.4% | 1.9% | 5.0% | 0.8% | 1.7% | -2.0% | -0.6% | 2.2% | 3.8% | 6.7% | -3.8% | 1.0% | -3.5% | 2.0% | 3.5% | 11.1% | 16.5% | 20.4% | +3.9pp |
| EPS (Diluted) | $0.42 | $0.49 | $0.54 | $0.82 | $1.07 | $0.05 | $0.30 | $0.82 | $1.69 | $5.20 | $3.36 | $4.02 | $2.65 | $2.41 | $2.06 | $6.93 | $9.66 | $9.72 | +0.6% |
1. THE BIG PICTURE
T-Mobile US has effectively inverted the traditional telecom narrative by combining a "value" brand with what it asserts is the nation's fastest and most advanced 5G network (10-K Item 1). By leveraging excess 5G capacity to aggressively enter the broadband market, T-Mobile US is no longer just a wireless provider but a diversified connectivity engine that is currently outperforming both AT&T and Verizon in revenue growth.
2. WHERE THE RISKS HIT HARDEST
The "Un-carrier" strategy, which relies on eliminating customer "pain points" like service contracts, is threatened by intense industry competition from cable providers like Comcast and Charter (10-K Item 1). These competitors are squeezing margins just as T-Mobile US faces a "substantial indebtedness" of $78.3 billion, which limits its ability to respond to pricing wars or fund the high capital expenditures required for 5G Advanced technology (XBRL). Furthermore, T-Mobile US’s push to become an "AI-enabled, digital-first organization" creates a larger surface area for the "persistent, evolving cyberattacks" it identifies as a material risk to its reputation and cash flows.
3. WHAT THE NUMBERS SAY TOGETHER
The financial data reveals a company that is operating with significantly higher efficiency than its traditional telecom peers. T-Mobile US keeps 21.4% of its revenue as free cash flow, besting Verizon (16.1%) and AT&T (16.2%), and trailing only Netflix in the broader peer group (XBRL). While T-Mobile US’s TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter revenue growth stands at 8.5%, its most recent quarter showed a 10% jump in service revenues, suggesting that the growth trajectory is accelerating rather than mean-reverting. This acceleration is supported by the 2.4 million postpaid customers added in Q4 2025 and the strategic acquisition of UScellular for $4.4 billion (8-K). However, the market remains cautious; short interest stands at 3.3% of the float, likely reflecting concerns over the 4.3x net leverage and the $293 million in severance costs tied to its recent workforce transformation (8-K).
4. IS IT WORTH IT AT THIS PRICE?
At 15.5x Forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations, T-Mobile US trades at a 13% premium to the peer median of 13.8x. This premium is justified by a growth profile (+8.5% revenue) that far outpaces Verizon (+2.5%) and AT&T (+2.7%). According to CAPM analysis, the current price implies a long-term growth rate of just 0.3%. Given that T-Mobile US is currently delivering 14% growth in postpaid service revenues and retiring 3.3% of its shares annually through buybacks, this implied rate appears highly conservative. For the current valuation to be "wrong," T-Mobile US would have to see a near-total collapse in its ability to convert 5G capacity into new broadband subscribers, or face a regulatory denial of its spectrum licenses (10-K Item 1).
5. WHAT WOULD CHANGE THIS VIEW?
- Cautious if net leverage (currently 4.3x) increases further to fund secondary-market spectrum acquisitions, as this would likely force a reduction in the 3.3% buyback yield.
- Constructive if 5G broadband additions (currently 495,000 per quarter) accelerate, proving that T-Mobile US can continue to monetize its "excess capacity" without degrading mobile network quality.
6. BOTTOM LINE
Structural Advantage: A dominant 5G spectrum position combined with a digital-first cost structure that yields superior free cash flow conversion. Bottom Line: T-Mobile US is the premier growth play in a defensive sector, and its current valuation fails to account for its continued ability to take share from legacy carriers.
1. Top 5 Material Risks
- Intense Industry Competition: The telecommunications market is saturated, leading to pricing pressure and margin compression as T-Mobile US competes with traditional MNOs like AT&T and Verizon, as well as cable providers like Comcast and Charter.
- Cybersecurity Threats: T-Mobile US faces persistent, evolving cyberattacks from nation-state actors and other groups seeking to access sensitive customer and business information, which can lead to operational disruptions and significant remediation costs.
- Substantial Indebtedness: The high level of debt on T-Mobile US’s balance sheet reduces flexibility to respond to market conditions and limits funds available for capital expenditures, share repurchases, or dividends.
- Network Technology Execution: Failure to effectively deploy emerging technologies like 5G Advanced or AI-driven Radio Access Networks could erode T-Mobile US’s competitive position and market share.
- Digital Transformation Challenges: The complexity of integrating new platforms with legacy infrastructure and driving customer adoption of digital-first channels creates risks to operational efficiency and revenue generation.
2. Company-Specific Risks
- Controlled Company Status: Deutsche Telekom (DT) controls a majority of the voting power, allowing T-Mobile US to bypass NASDAQ requirements for independent directors and committees, and restricting T-Mobile US from taking certain actions—such as incurring debt or making acquisitions over $1.0 billion—without DT’s consent.
- Trademark Royalty Obligations: T-Mobile US is obligated to pay DT a royalty of 0.25% of net revenue generated under the "T-Mobile" brand, subject to an $80 million annual cap through December 31, 2028.
- Government Commitments: Following the Sprint Merger, T-Mobile US is bound by specific government commitments, including extensive 5G build-out requirements and fixed wireless marketing obligations, which increase compliance costs and potential penalty exposure.
- UScellular Acquisition Integration: The integration of the UScellular Wireless Business over the next two years introduces risks related to network migration, potential service disruptions, and the challenge of maintaining customer experience.
3. Regulatory/Legal Risks
- FCC Licensing and Compliance: T-Mobile US’s wireless licenses are subject to renewal and revocation for cause; failure to meet construction or substantial service requirements could result in the loss of spectrum access.
- Privacy and AI Regulation: Compliance with evolving state-level privacy laws (e.g., CCPA) and emerging AI regulations imposes significant implementation costs and potential liability for data breaches or algorithmic bias.
- National Security Obligations: T-Mobile US operates under a mitigation agreement with the Committee on Foreign Investment in the United States, which limits control over certain facilities, vendor selection, and operations.
- Financial Services Regulation: The offering of products like the T-Mobile Visa credit card and T-Mobile Money debit card subjects T-Mobile US to oversight by the Consumer Financial Protection Bureau and other federal and state agencies.
4. Financial Impact Map
Intense Industry Competition → Operating Margins → Pricing pressure and margin compression across prepaid, postpaid, and enterprise segments. Cybersecurity Threats → Cash Flows → Significant costs incurred for responding to litigation, mass arbitration claims, and regulatory investigations. Substantial Indebtedness → Interest Expense → Increased cash requirements to service debt, potentially limiting funds for capital expenditures and shareholder returns. Digital Transformation Challenges → Capital and Operational Expenditures → Substantial spending required for new technology implementation and employee training. Trademark Royalty Obligations → Net Revenue → Royalty payments of 0.25% of net revenue (capped at $80 million annually) paid to DT.
Recent Filings
| Form | Filed | Period |
|---|---|---|
| 8-K | Feb 2026 | — |
| 10-K | Feb 2026 | Dec 2025 |
| 10-Q | Oct 2025 | Sep 2025 |
| 14A | Apr 2025 | — |
AI-extracted key facts from press releases and SEC filings. Significance 1–10.
T-Mobile declares quarterly cash dividend of $1.02 per share
- ▸Quarterly cash dividend declared at $1.02 per share
- ▸Dividend payable on June 11, 2026
- ▸Record date set for May 29, 2026
T-Mobile partners with NVIDIA and Nokia to deploy AI-RAN on 5G network
- ▸Collaboration with NVIDIA and Nokia to integrate AI-RAN infrastructure
- ▸Focus on physical AI applications via distributed edge computing
- ▸Current share price $214.82 with 2.13% decline over past month
- ▸3-year total shareholder return of 53.44%
- ▸Valuation analysis suggests 6.5% overvaluation based on earnings and margins
T-Mobile Expands Enterprise 5G Strategy With Healthcare Network Solution and Rugged Handset Launch
- ▸Partnering with Cellhub and Extreme Networks for healthcare-focused integrated network solutions
- ▸Launched Siyata SD7 Ultra rugged 5G push-to-talk handset for enterprise and public safety
- ▸Strategic shift targeting mission-critical connectivity for hospitals and first responders
- ▸Aims to diversify revenue beyond core consumer wireless business
- ▸Trading at $214.37, approximately 20% below analyst consensus target of $268.52
T-Mobile Q4 Revenue $24.33B Beats Estimates, Adjusted EPS $2.14 Tops Consensus
- ▸Q4 revenue $24.33B, exceeding consensus estimate of $23.63B
- ▸Q4 adjusted EPS $2.14, beating consensus estimate of $2.03
- ▸Postpaid service revenue $15.37B, up 13.9% year-over-year
- ▸Added 2.4 million postpaid net customers and 962,000 postpaid phone customers
- ▸Full-year 2025 revenue $88.3B, up from $81.4B in 2024
T-Mobile expands 6G collaboration with Qualcomm to accelerate network transition and customer perks
- ▸Expanded 6G collaboration with Qualcomm to accelerate 5G Advanced to 6G transition
- ▸New device offerings include iPhone 17e and iPad Air across T-Mobile and Metro
- ▸Renewed MLB.TV perk to drive customer loyalty and reduce churn
- ▸Projected 2028 revenue of $98.3B and earnings of $17.3B
- ▸Requires 5.3% annual revenue growth to meet long-term financial targets
TMUS Q4 EPS $1.88 misses estimates on severance charges; postpaid net adds hit 962,000
- ▸Q4 postpaid phone net adds 962,000, leading industry
- ▸Q4 free cash flow $4.19B, +67% YoY
- ▸FY2026 adjusted EBITDA guidance set at $37.0B–$37.5B
- ▸Authorized $14.6B share buyback program through December 2026
- ▸Q4 EPS $1.88 missed $2.42 consensus due to $390M workforce transformation charges