Analyst(s): Olivier Blanchard
Publication Date: July 25, 2025
T-Mobile’s Q2 FY 2025 earnings highlight strong momentum across postpaid and broadband segments, supported by expanding 5G leadership and premium plan adoption. The company also raised its full-year guidance, reflecting sustained operating leverage.
What is Covered in this Article:
- T-Mobile’s Q2 FY 2025 financial results
- Record growth in postpaid and 5G broadband net additions
- Strategic expansion across fiber broadband through T-Fiber and Metronet
- Commercial launch of direct-to-cell satellite service for rural and enterprise segments
- Transition toward infrastructure ownership and its margin impact
- Upgraded full-year guidance for FY 2025 and final thoughts
The News: T-Mobile (NASDAQ: TMUS) reported Q2 FY 2025 revenue of $21.13 billion (+0.5% above consensus estimates), up 6.9% year-on-year (YoY), with service revenue of $17.4 billion growing 6.1% YoY and postpaid service revenue of $14.1 billion increasing 9.1% YoY. Core adjusted EBITDA was $8.54 billion (+1.7% above consensus), up 6.4% YoY, while adjusted free cash flow reached a Q2 record of $4.6 billion, up 3.5% YoY. Net income rose 10.2% YoY to a record $3.22 billion (+6.3% above consensus), and diluted earnings per share (EPS) grew 14.1% YoY to $2.84 and beat street estimates by 6.4%.
“T-Mobile crushed our own growth records with the best-ever total postpaid and postpaid phone nets in a Q2 in our history,” said Mike Sievert, CEO of T-Mobile. “T-Mobile is now America’s Best Network. When you combine that with the incredible value that we have always been famous for, it should surprise no one that customers are switching to the Un-carrier at a record pace. These durable advantages enabled us to once again translate customer growth into financial growth, with the industry’s best service revenue growth by a wide mile and record Q2 Adjusted Free Cash Flow.”
T-Mobile Q2 FY 2025 Results Top Estimates With Record Subscriber Gains
Analyst Take: T-Mobile posted a strong Q2 FY 2025, hitting record highs in postpaid phone and broadband net additions. Its solid financial performance and smart product launches helped sustain its lead in the U.S. telecom space. Despite fierce competition and heavy promotions, the company continued to grow revenue, profit, and subscribers, thanks to its strong spectrum position, brand power, and integrated wireless-broadband strategy. New offerings like satellite connectivity, the T-Fiber rollout, and the KKR-backed Metronet deal aim to grow its broadband reach, tap into new markets, and drive customer acquisition. With higher guidance and more users switching to premium plans, T-Mobile appears to be shifting from a primarily value-focused brand to a more balanced range of mainstream and higher-margin plans.
Record Postpaid and Broadband Growth Drives Subscriber Gains
T-Mobile hit a Q2 record with 830,000 postpaid phone net adds and over 1.7 million total postpaid net adds. Growth was fueled by more customers moving to premium plans and signing up for new services, including a five-year price lock. It added 454,000 5G customers on the broadband side, keeping its top spot in fixed wireless gains. Focused growth in underserved areas and continued broadband expansion kept subscriber growth steady. Strategic plan updates, pricing moves, and acquisition campaigns helped boost its market leadership. This subscriber push led to 6.1% YoY service revenue growth and 9.1% YoY growth in postpaid service revenue for the quarter.
Shifting Toward Infrastructure Ownership Opens New Growth Paths
T-Mobile is pushing a broad strategy to grow its broadband reach using a mix of fixed wireless and fiber. After closing its Lumos acquisition in April, it launched T-Fiber in June. It’s also teaming up with KKR to acquire Metronet, which will give a big boost to its fiber reach. These steps mark a shift from just using extra wireless capacity to owning and running last-mile infrastructure. With plans to add 100,000+ fiber customers by year-end, T-Mobile is moving toward long-term infrastructure control, which should help grow both EBITDA and cash flow.
Satellite Service Adds an Edge in Rural and Business Markets
T-Mobile rolled out the country’s first commercial direct-to-cell satellite messaging and data service for $10/month. The service aims to fill coverage gaps in rural areas, and interestingly, it does not lock out customers from rival networks.
The company sees the service as an opportunity to attract new customers and improve retention, where limited coverage has historically been a customer pain point. It also opens the door to revenue from business segments like logistics, farming, and emergency services, which have also been plagued by limited network access in areas with little-to-no land-based coverage. This aligns with T-Mobile’s broader strategy to maximize its spectrum and network utilization, aiming to boost Average Revenue Per User (ARPU) through innovative approaches (rather than relying solely on pricing strategies).
Guidance Raised as Momentum Carries Into H2 FY 2025
Following a strong Q2 and the July 4th close of the Metronet deal, T-Mobile raised its FY 2025 outlook. It now expects 6.1-6.4 million postpaid net adds (up from 5.5-6.0 million), including 2.95-3.10 million postpaid phone adds and around 100,000 fiber customer adds. Core adjusted EBITDA is now expected between $33.3-33.7 billion, slightly higher at the midpoint from the previous $33.2-33.7 billion. Capital expenditure (capex) guidance stays at about $9.5 billion. The update reflects steady subscriber growth, better operating leverage, and faster wireless and fiber broadband expansion.
See the complete T-Mobile Q2 FY 2025 earnings press release on the T-Mobile website.
Disclosure: Futurum is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of Futurum as a whole.
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Author Information
Olivier Blanchard is Research Director, Intelligent Devices. He covers edge semiconductors and intelligent AI-capable devices for Futurum. In addition to having co-authored several books about digital transformation and AI with Futurum Group CEO Daniel Newman, Blanchard brings considerable experience demystifying new and emerging technologies, advising clients on how best to future-proof their organizations, and helping maximize the positive impacts of technology disruption while mitigating their potentially negative effects. Follow his extended analysis on X and LinkedIn.
