What's Happening?
T-Mobile US has announced record customer growth for the third quarter of 2025, adding 2.35 million postpaid customers, including 1 million postpaid phone lines. This growth has led the company to raise
its full-year guidance for postpaid adds, EBITDA, and free cash flow. Despite these positive developments, T-Mobile's shares dipped due to an increase in capital expenditure guidance to $10 billion, reflecting heavy investment in network infrastructure. The company also reported a 9% year-over-year increase in service revenues, reaching $18.2 billion, and total revenues of $21.957 billion, up 3.9% from the previous year. T-Mobile's net income for the quarter was $2.7 billion, with operating cash flow of $7.457 billion and adjusted free cash flow of $4.818 billion.
Why It's Important?
The record customer growth and increased revenue highlight T-Mobile's strong market position in the U.S. wireless industry. The company's investment in network infrastructure, particularly in 5G and broadband, is crucial for maintaining its competitive edge and expanding its customer base. However, the increased capital expenditure raises concerns about potential impacts on profitability and investor sentiment. The company's ability to balance growth with financial stability will be closely watched by stakeholders. T-Mobile's strategic focus on expanding its 5G and broadband footprint is likely to influence industry standards and consumer expectations.
What's Next?
T-Mobile has raised its full-year guidance for postpaid net customer additions, core adjusted EBITDA, and net cash provided by operating activities. The company plans to continue its investment in network infrastructure, which may affect its margins and profitability. Investors and analysts will be monitoring the company's execution on network build-out and the return on investment from increased capital expenditure. The market will also be watching for any changes in customer retention and churn rates as T-Mobile expands its services.
