T-Mobile US, Inc. 6.250% Senior Notes due 2069

What they do

T-Mobile provides postpaid and prepaid wireless communications and broadband services to 142.4 million customers as of December 31, 2025. It sells devices and accessories through its brands T-Mobile, Metro by T-Mobile, and Mint Mobile via owned retail stores, websites, apps, and national retailers. Wholesale services are offered to partners who resell to their customers. The company's network combines low-band, mid-band, and mmWave spectrum.

Revenue drivers

• Postpaid service revenues — Largest revenue stream; $15.9 billion in Q2 2026, up 13% year-over-year, driven by account growth and higher ARPA.
• Total service revenues — Includes postpaid, prepaid, and wholesale; $19.0 billion in Q2 2026, up 9% year-over-year.
• Device and accessory sales — Sale of smartphones, wearables, tablets, and 5G broadband gateways, typically bundled with service plans.
• Broadband services — Includes 5G fixed wireless product; part of the strategy to expand into home broadband, though size relative to total is not disclosed in the provided excerpts.

Recent performance

In Q2 2026, T-Mobile reported service revenues of $19.0 billion (up 9% YoY) and postpaid service revenues of $15.9 billion (up 13% YoY). Net income was $3.2 billion, up 1% YoY, including $146 million after-tax impact of UScellular merger-related costs. Diluted EPS was $2.99, up 5% YoY. Core Adjusted EBITDA grew 12% to $9.5 billion. Net cash from operations was $7.5 billion and Adjusted Free Cash Flow was $4.8 billion, up 7% and 4% YoY, respectively.

Strategy

Management emphasizes the Un-carrier strategy: best network, best value, and best experience. The company is investing in an AI-enabled, data-informed, digital-first organization to improve customer service and efficiency. It is expanding its 5G network footprint and using its spectrum position to offer innovative products like 5G broadband. The UScellular acquisition (closed August 1, 2025) is key to enhancing rural 5G coverage and achieving synergies. Management also highlights the T-Life app for simplifying customer transactions.

Risks

• Intense competition — Competes with AT&T and Verizon, plus cable providers (Comcast, Charter, Cox, Altice) and regional MNOs/MVNOs, which could pressure pricing and margins.
• Integration and merger-related costs — UScellular acquisition brings integration, restructuring, and transaction costs that could weigh on near-term profitability.
• Spectrum and regulatory — Wireless licenses are subject to renewal and may be revoked; spectrum scarcity and regulation could limit network expansion.
• Macro and trade risks — Inflation, tariffs, and supply chain disruptions could raise costs, particularly for smartphones and network equipment.

Outlook

Management says Q2 2026 results show momentum toward its 'ambitious 2026 and 2027 objectives,' without specific figures. They see growth runway in wireless, broadband, and new businesses. The UScellular acquisition is expected to increase competition, achieve synergies, and enhance rural 5G coverage. They continue to invest in network and technology to drive durable growth.