T-Mobile US, Inc. Q3 FY2025 earnings call

• Welcomes and Introductions: Mike Sievert welcomes André Almeida and John Saw to the team. - Q3 Performance: Strong wireless growth (broad-based postpaid customer additions, low churn), broadband growth, and industry-leading financials (postpaid service revenue up 12% YOY, core adjusted EBITDA up). - Network Leadership: Focus on widening network perception through digital transformation, local engagement, and network investment. - Digital Transformation: Progress in digital adoption, with 75% of iPhone upgrades during preorder window being digital. - UScellular Integration: Seamless integration using T-Mobile's Sprint playbook, deepening relationships with UScellular customers.

Wireless: Achieved all-time best postpaid customer account growth, best-ever total postpaid net additions, over 1 million postpaid phone net additions (best Q3 in over a decade), broad-based growth across markets, led industry in postpaid phone churn, and postpaid ARPA grew 3.8% organically. Broadband: Led industry with over 500,000 customer additions on 5G broadband and over 50,000 on fiber (including Metronet contribution). 5G broadband ARPUs and customer lifetime values are similar to postpaid phone business.

• Raised total postpaid net additions guidance to 7.2–7.4 million, postpaid phone net additions to 3.3 million. - Increased fiber customer net additions guidance to ~130,000. - Postpaid ARPA guidance raised to at least 3.5% full year. - Core adjusted EBITDA guidance: $33.7–$33.9 billion. - Accelerated UScellular synergy realization to within 2 years, incurring ~$300M in Q4. - Adjusted free cash flow guidance raised to $17.8–$18 billion.

• Industry competition and potential overinvestment. - Network perception challenges and customer inertia. - Fluctuations in spectrum prices and auction dynamics.

Q: Benjamin Swinburne asked about network perception strategy and UScellular synergies.

A: Srini Gopalan discussed network perception through multiple vectors (marketing, digital engagement) and Peter Osvaldik talked about UScellular synergy timeline, aiming for full run rate within 2 years.

Q: John Hodulik asked about broadband business.

A: Srini Gopalan and André Almeida talked about FWA (22% YOY growth, sustainable product) and fiber opportunities, emphasizing capital-light strategy and complementary capabilities.

Q: Samuel McHugh asked about cost of acquisition and digital customer acquisition.

A: Peter Osvaldik discussed strong customer lifetime values and SAC, while Srini Gopalan and Mike Sievert talked about digital upgrade flows and AI integration in simplifying the customer experience.

Q: David Barden asked about satellite partnership and AI.

A: Mike Sievert and Srini Gopalan talked about satellite partnership progress and AI integration in network and customer experience.

Q: Michael Rollins asked about iPhone cycle and retention costs.

A: Srini Gopalan discussed iPhone performance and its impact on customer acquisition, noting strong momentum into Q4.

Q: Craig Moffett asked about iPhone cycle and subsidies.

A: Srini Gopalan and John Saw talked about iPhone cycle impact and network leadership, highlighting network capabilities driving customer retention.

Q: Eric Luebchow asked about spectrum positioning.

A: Srini Gopalan and John Saw discussed spectrum strategy (rigorous process for buying spectrum) and network capabilities (dense cell sites, 5G advanced network) extending lead.

Q: Kannan Venkateshwar asked about balance sheet leverage.

A: Srini Gopalan and Mike Sievert talked about balance sheet responsibility, emphasizing thoughtful capital allocation in fiber, go-to-market, and spectrum.