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Did T-Mobile US beat or miss consensus estimates last quarter?

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What is the revenue and EPS growth rate for T-Mobile US year over year?

- **Record Q3 Growth**: 1.1M postpaid phone adds, 500K+ 5G broadband adds, and 103K T-Fiber adds highlight broad-based momentum.
- **Network Dominance**: 90% speed advantage over competitors and 75% digital upgrades via T-Life app drive switching.
- **Financial Strength**: $1.2B UScellular synergies, 26% cash conversion, and $18B free cash flow guidance reflect disciplined execution.
- **AI Innovation**: IntentCX AI reduces customer friction, enabling 22% YoY FWA growth and 3.8% ARPA expansion.
- **Strategic Position**: 2-year network lead, capital-light fiber expansion, and selective spectrum densification maintain competitive edge.


**【CEO Summary Section】**
- T-Mobile delivered record Q3 results, including 1.1 million postpaid phone net additions, 500,000+ 5G broadband additions, and 103,000 T-Fiber net adds.
- Postpaid ARPA grew 3.8% organically, with service revenue up 12% YoY and core adjusted EBITDA up 6%.
- Network perception among switchers hit an all-time high, driven by Ookla's 90% speed advantage over competitors.
- Digital transformation initiatives, like 75% of iPhone upgrades via T-Life app, reduced customer friction and improved retention.

**【CFO Financial Commentary】**
- Full-year guidance raised: postpaid net adds to 7.2-7.4M, ARPA growth of 3.5%+, core EBITDA $33.7-33.9B, and free cash flow $17.8-18B.
- UScellular integration on track for $1.2B OpEx/CapEx synergies within 2 years, with $300M in Q4 merger costs.
- Cash CapEx increased to $10B, driven by UScellular and network expansion.

**【Q&A Highlights】**
- **Network Leadership**: 70M+ customers paying premium for outdated networks; T-Mobile's 5G advanced speeds 40% faster than competitors.
- **Broadband Growth**: 580GB/month 5G broadband usage, 12M-15M homes passed for fiber, and 103,000 T-Fiber adds in Q3.
- **AI Integration**: IntentCX AI reduces customer acquisition steps from 36 to 1, driving 22% YoY FWA growth and 3.8% ARPA expansion.
- **Balance Sheet Utilization**: Capital-light fiber JVs and selective spectrum densification maintain 2-year network lead over peers.
- **Customer Lifetime Value**: CLVs resilient despite industry churn normalization, with 3.8% organic ARPA growth and 26% cash conversion.


T-Mobile US, Inc. (TMUS) Q3 2025 Earnings Call Transcript

- **Customer Growth Record**: Q2 2025 marked the best postpaid net additions in T-Mobile's history, with ARPA up 5% YoY.
- **Premium Plan Surge**: New Experience Beyond plan adoption doubled YoY, driving revenue mix shift.
- **Strategic Acquisitions**: UScellular acquisition and T-Satellite launch expand rural reach, while Metronet/Lumos JVs target 100,000+ fiber net adds.
- **Financial Strength**: Service revenue growth of 9% YoY, $4.6 billion free cash flow, and updated guidance reflecting strong momentum.
- **Tax Efficiency**: $1.5 billion tax savings to be deployed in 2026, supporting long-term growth initiatives.

**【CEO Summary Section】**
- **Record Customer Growth**: Q2 2025 saw the best postpaid phone net additions in T-Mobile's history, with total postpaid net additions up 10%+ YoY. Postpaid ARPA grew 5%, the highest in 8 years.
- **Premium Plan Adoption**: Customers are migrating to higher-tier plans, with the new Experience Beyond plan selected at double the rate of the previous premium plan.
- **UScellular Acquisition**: Closing on August 1, adding 12,000 sites and expanding rural coverage. T-Satellite service launched to cover 500,000 square miles of rural areas.
- **Fiber Expansion**: Acquired Metronet and Lumos, targeting 100,000+ fiber net additions in 2025. T-Fiber will leverage existing infrastructure for rapid scaling.
- **Financial Highlights**: Service revenue grew 9% YoY, core adjusted EBITDA up 6%, and $4.6 billion in free cash flow, a new Q2 record.

**【CFO Financial Commentary】**
- **Updated Guidance**: Total postpaid net additions raised to 6.1-6.4 million (midpoint +500k). Service revenue growth expected at least 6%, core EBITDA $33.3-33.7 billion.
- **800 MHz Sale**: Divestiture of 800 MHz licenses to Grain Management for $2.9 billion, generating $850 million in tax benefits.
- **Free Cash Flow**: Projected at $17.6-18 billion, up $100 million at the lower end, driven by cost control and operational efficiency.

**【Q&A Highlights】**
- **Churn Management**: Q2 churn elevated due to rate plan optimizations, but expected to stabilize in Q3. ARPA growth driven by premium plan migration.
- **Fiber Momentum**: Metronet and Lumos JV launches in Q2, with 100,000+ net adds expected in 2025. T-Fiber platform enables rapid scaling through wholesale and JV partnerships.
- **Cable Partnership**: New SMB deal with cable providers to target underserved markets, with no overlap in large enterprise or small retail segments.
- **Network Leadership**: 67% of traffic on 5G, leading in 5G Advanced and automated slicing. Greenfield builds of 4,000 sites in 2025 to expand rural coverage.
- **Tax Benefits**: $1.5 billion tax savings from recent legislation to be deployed in 2026, supporting capital allocation priorities.

T-Mobile US, Inc. (TMUS) Q2 2025 Earnings Call Transcript

- **Customer Growth Record**: Q1 2025 set new records for postpaid net adds (1.3M) and ARPU growth (4%), driven by superior value and innovation.
- **5G Leadership**: Launched 5G Advanced with 6.3 Gbps speeds, leading 5G broadband net adds (424K Q1) and ARPU growth of 15% YoY.
- **Fiber Expansion**: Targeting 12-15M homes passed by 2028 via Lumos and Metronet, with T-Fiber leveraging 1M+ fixed wireless waitlist.
- **Financial Strength**: Service revenues +5%, EBITDA +8%, free cash flow $4.4B (26% conversion), with updated 2025 guidance for $17.5-18B free cash flow.
- **Innovation Edge**: T-Satellite at $10/month, T-Life digital upgrades >50%, and 5G slicing for first responders (e.g., key priority service).


**【CEO Opening Remarks】**
- **Record Customer Growth**: Q1 2025 saw the highest postpaid net additions in T-Mobile's history, with 1.3 million total postpaid net adds and 495,000 postpaid phone net adds. ARPU grew 4% YoY, the highest Q1 in 8 years.
- **5G Network Leadership**: Launched 5G Advanced nationwide, achieving 6.3 Gbps download speeds. T-Mobile leads in 5G broadband net adds (424,000 Q1) and ARPU growth.
- **Innovation Highlights**: Introduced T-Satellite at $10/month, with Gen 1 pricing locked for a year. T-Life digital platform now handles >50% of phone upgrades digitally.
- **Fiber Expansion**: Completed Lumos acquisition, set to launch T-Fiber later in Q2. Metronet deal pending, targeting 12-15 million homes passed by 2028.

**【CFO Financial Update】**
- **Revenue & Profitability**: Service revenues grew 5% YoY, core adjusted EBITDA up 8%, and free cash flow reached $4.4B (new Q1 record). Free cash flow conversion hit 26%.
- **Guidance Update**: Full-year postpaid ARPA growth raised to 3.5%+ (from 3%), EBITDA expected $33.2-33.7B. Adjusted free cash flow guidance increased to $17.5-18B.
- **M&A Impact**: Lumos to be slightly accretive to service revenues in 2025, with T-Fiber go-to-market leveraging T-Mobile's 1M fixed wireless waitlist.

**【Key Q&A Takeaways】**
- **Lumos Strategy**: T-Fiber launch will prioritize high-demand areas, using T-Mobile's retail distribution and 1M+ fixed wireless waitlist to drive adoption.
- **Pricing & Churn**: Price increases are temporary and well-managed, with churn impacts minimal. Q1 gross adds up 15% YoY despite industry-wide promotional intensity.
- **Broadband Momentum**: 5G broadband ARPU grew 15% YoY, leading industry in net adds for 13 straight quarters. T-Fiber targeting 12M+ subscribers by 2028.
- **Macroeconomic Resilience**: Prepaid business stable with 25.5M customers, churn down 7bps YoY. Wholesale revenue decline expected to reverse in H2.
- **M&A Appetite**: Open to pure-play fiber deals with >20% IRR, prioritizing T-Fiber expansion over cable assets.


T-Mobile US (TMUS)-24 Apr 25-2025 Q1 Earnings call transcript

- **Growth Records**: 2024 marked highest postpaid phone net adds (3M+), Q4 leading industry with 903K net adds. Broadband ARPU growth at 7-year high.
- **Network Excellence**: Top network rankings, AI-driven self-healing, and emergency 5G Starlink deployment during wildfires.
- **2025 Ambitions**: Raised service revenue growth to 5%, guided for 5.5-6M postpaid net adds, and $17.3-18B free cash flow.
- **Strategic Acquisitions**: Vistar to transform digital OOH ads; U.S. Cellular deal to enhance rural coverage.
- **Sustainability**: 26% cash flow conversion from service revenue, $31.4B returns to shareholders since 2022.

**【CEO Key Highlights】**
- **Record Growth in 2024**: Delivered highest-ever postpaid phone gross additions, with Q4 net additions of 903,000, leading the industry. Full-year postpaid net additions exceeded 3 million for the third consecutive year.
- **Broadband Dominance**: Led industry in broadband net additions for the 12th quarter in a row (428,000 in Q4), with ARPU growth at the highest rate in 7 years.
- **Network Leadership**: Named top network performer by OpenSignal and Ookla, with advanced AI-driven network optimization (e.g., self-healing during wildfires).
- **New York City Contract**: Secured public safety network deal, leveraging T-Priority service for 5x capacity allocation in emergencies.
- **2025 Outlook**: Raised service revenue growth guidance to 5% (up from 4%), driven by ARPU expansion and customer retention.

**【CFO Financial Summary】**
- **Q4 Financials**: Core adjusted EBITDA up 10%, free cash flow $17B (highest ever), and diluted EPS at record levels.
- **2025 Guidance**: 
  - Postpaid net adds: 5.5-6M (highest-ever Q1 guide)
  - Service revenue growth: 5% (vs. 4% prior)
  - Core EBITDA: $33.1-33.6B (5% midpoint growth)
  - CapEx: $9.5B to maintain network leadership.
- **Acquisition Impact**: Pending deals (e.g., U.S. Cellular, Vistar) excluded from guidance but expected to be accretive.

**【Key Q&A Takeaways】**
- **Broadband Strategy**: Focused on selling into existing base (60%+ new customers choose premium plans), with ARPU growth offsetting slower industry-wide broadband adoption.
- **Vistar Acquisition**: Targets $10B TAM in digital out-of-home advertising, enabling addressable ads with customer opt-in.
- **Prepaid Resilience**: Metro by T-Mobile leads prepaid market with lowest churn, insulated from immigration trends due to premium pricing focus.
- **AI & Network**: AI-RAN optimizes network efficiency, with self-optimizing technologies reducing downtime (e.g., 99% recovery post-wildfires).
- **Fiber JV Progress**: JV with Lumos and Metronet to deploy fiber via partners, minimizing capital intensity.


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