Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported): October 23, 2024

T-MOBILE US, INC.

(Exact Name of Registrant as Specified in Charter)

Delaware

1-33409

20-0836269

(State or other jurisdiction

(Commission File Number)

(I.R.S. Employer

of incorporation)

Identification No.)

12920 SE 38th Street

Bellevue, Washington

(Address of principal executive offices)

98006-1350

(Zip Code)

Registrant’s telephone number, including area code: (425) 378-4000

(Former Name or Former Address, if Changed Since Last Report):

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.00001 per share

TMUS

The NASDAQ Stock Market LLC

3.550% Senior Notes due 2029

TMUS29

The NASDAQ Stock Market LLC

3.700% Senior Notes due 2032

TMUS32

The NASDAQ Stock Market LLC

3.850% Senior Notes due 2036

TMUS36

The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 — Results of Operations and Financial Condition

On October 23, 2024, T-Mobile US, Inc. (the “Company”) issued a press release announcing the financial and operating results of the Company for the quarter ended September 30, 2024. The text of the press release and accompanying Investor Factbook are furnished as Exhibits 99.1 and 99.2 and incorporated herein by reference.

The information in Item 2.02 to this Current Report on Form 8-K, including Exhibits 99.1 and 99.2, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing.

Item 9.01 — Financial Statements and Exhibits

(d) Exhibits:


Exhibit						Description
99.1						Press release, dated October 23 , 2024, entitled "T-Mobile Delivers Industry-Leading Growth in Customers, Service Revenues , P rofitability and Cash Flows in Q 3 , Raises 2024 Guidance Across the Board "
99.2						Investor Factbook of T-Mobile US, Inc. Th ird Quarter 2024 Results
104						Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)


						SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


						T-MOBILE US, INC.

October 23, 2024						/s/ Peter Osvaldik
						Peter Osvaldik Executive Vice President and Chief Financial Officer

EXHIBIT 99.1

T-Mobile Delivers Industry-Leading Growth in Customers, Service Revenues, Profitability and Cash Flows in Q3, Raises 2024 Guidance Across the Board

Un-carrier Delivers Highest Q3 Postpaid Phone Net Customer Additions in a Decade,

Lowest Q3 Postpaid Phone Churn in Company History and Hits 6 Million Broadband Customer Milestone

Industry-Leading Customer Growth Fueled by Best Network and Best Value Combination(1)

•Postpaid net account additions of 315 thousand, best in industry

•Postpaid net customer additions of 1.6 million, best in industry

•Postpaid phone net customer additions of 865 thousand, best in industry, highest Q3 in a decade

•Postpaid phone churn of 0.86%, record low for Q3

•High Speed Internet net customer additions of 415 thousand, best in industry

Translating Industry-Leading Customer Growth into Industry-Leading Financial Performance

•Service revenues of $16.7 billion grew 5% year-over-year, best in industry growth

•Postpaid service revenues of $13.3 billion grew 8% year-over-year, best in industry growth

•Net income of $3.1 billion grew 43% year-over-year, best in industry growth

•Diluted earnings per share (“EPS”) of $2.61 grew 43% year-over-year, best in industry growth

•Core Adjusted EBITDA(2) of $8.2 billion grew 9% year-over-year, best in industry growth

•Net cash provided by operating activities of $6.1 billion, record high and grew 16% year-over-year, best in industry growth

•Adjusted Free Cash Flow(2) of $5.2 billion, record high and grew 29% year-over-year, best in industry growth

•Returned $1.4 billion to stockholders in Q3 2024, including repurchases of $644 million and a cash dividend of $758 million, and returned an additional $891 million in repurchases in Q4 through October 18th

Extending Overall Network Lead with Best Assets, Customer Centricity and Technology Leadership

•For the fourth year in a row, T-Mobile won best 5G availability in the world and was the only US operator to earn a 5G Global Winner award for this category from Opensignal

•Largest Voice over New Radio (VoNR) coverage with more than 300 million Americans covered, further improving performance and spectral efficiency

Bellevue, WA — October 23, 2024 — T-Mobile US, Inc. (NASDAQ: TMUS) reported third quarter 2024 results today, raising full-year guidance across the board while delivering industry-leading customer growth, including its highest Q3 postpaid phone net customer additions in a decade, lowest Q3 postpaid phone churn in company history, and hitting 6 million broadband customers. The company translated best-in-class customer growth into industry-leading growth in service revenues, profitability and cash flows. T-Mobile shared plans to drive long-term value creation well into the future at its recent Capital Markets Day, with continued industry-leading growth in profitability leading to cash flows supporting an approximately $80 billion capacity for investments and stockholder returns through 2027.

“Delivering another quarter of industry-leading results, including our best Q3 postpaid phone net adds in a decade and record low Q3 churn, translated into outsized financial results and empowered us to raise our 2024 guidance yet again,” said Mike Sievert, CEO of T-Mobile. “Results like these prove that our powerful combination of best-in-class network, unmatched value and innovative experiences for customers is a winning formula and will enable us to keep pace with our ambitious multi-year plan for the future. It's an exciting time at T-Mobile as we have so much runway in front of us for profitable, industry-leading growth into the next era of Un-carrier.”

___________________________________________________________

(1)AT&T Inc. does not disclose postpaid net account additions. Comcast and Charter do not disclose postpaid phone net customer additions. Industry-leading claims are based on consensus expectations if results are not yet reported.

(2)Core Adjusted EBITDA and Adjusted Free Cash Flow are non-GAAP financial measures. These non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information provided in accordance with GAAP. Reconciliations for these non-GAAP financial measures to the most directly comparable GAAP financial measures are provided in the Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures tables. We are not able to forecast Net income on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting certain items that affect Net income, including, but not limited to, Income tax expense and Interest expense. Core Adjusted EBITDA should not be used to predict Net income as the difference between this measure and Net income is variable.

Industry-Leading Customer Growth Fueled by Best Network and Best Value Combination(1)

•Postpaid net account additions of 315 thousand decreased 71 thousand year-over-year.

•Postpaid net customer additions of 1.6 million increased 349 thousand year-over-year.

•Postpaid phone net customer additions of 865 thousand increased 15 thousand year-over-year. Postpaid phone churn of 0.86% improved 1 basis point year-over-year.

•Prepaid net customer additions of 24 thousand decreased 55 thousand year-over-year. Prepaid churn of 2.78% improved 3 basis points year-over-year.

•High Speed Internet net customer additions of 415 thousand decreased 142 thousand year-over-year. T-Mobile ended the quarter with 6.0 million High Speed Internet customers.

•Total net customer additions of 1.6 million increased 294 thousand year-over-year. Total customer connections increased to a record high of 127.5 million.


	Quarter						Nine Months Ended September 30,
(in thousands, except churn)	Q3 2024		Q2 2024		Q3 2023		2024		2023
Postpaid net account additions	315		301		386		834		972
Total net customer additions	1,599		1,517		1,305		4,288		4,309
Postpaid net customer additions	1,575		1,338		1,226		4,133		4,080
Postpaid phone net customer additions	865		777		850		2,174		2,148
Postpaid other net customer additions (2)	710		561		376		1,959		1,932
Prepaid net customer additions (2)	24		179		79		155		229
Total customers, end of period (2) (3)	127,492		125,893		117,907		127,492		117,907
Postpaid phone churn	0.86	%	0.80	%	0.87	%	0.84	%	0.84	%
Prepaid churn	2.78	%	2.54	%	2.81	%	2.69	%	2.73	%
High Speed Internet net customer additions	415		406		557		1,226		1,589
Total High Speed Internet customers, end of period	6,002		5,587		4,235		6,002		4,235

(2)Includes High Speed Internet customers.

(3)In the second quarter of 2024, we acquired 3,504,000 prepaid customers through our acquisition of Ka’ena, which includes the impact of certain base adjustments to align the policies of Ka’ena and T-Mobile.

Translating Industry-Leading Customer Growth Into Industry-Leading Financial Performance(1)

•Total service revenues of $16.7 billion increased 5% year-over-year, and Postpaid service revenues of $13.3 billion increased 8% year-over-year.

•Net income of $3.1 billion increased 43% year-over-year.

•Diluted EPS of $2.61 per share increased 43% year-over-year.

•Core Adjusted EBITDA of $8.2 billion increased 9% year-over-year.

•Net cash provided by operating activities of $6.1 billion increased 16% year-over-year, which included cash payments for Merger-related costs of $124 million.

•Cash purchases of property and equipment, including capitalized interest, of $2.0 billion decreased 19% year-over-year.

•Adjusted Free Cash Flow of $5.2 billion increased 29% year-over-year, which included cash payments for Merger-related costs of $124 million.

•Stockholder Returns included 3.2 million shares of common stock repurchased for $644 million in Q3 2024, with 153.4 million cumulative shares repurchased for $22.7 billion as of September 30, 2024.

◦In Q4 through October 18, 2024, the company returned an additional $891 million to stockholders.

◦The remaining authorization for stock repurchases and quarterly cash dividends as of October 18, 2024 is $6.4 billion through December 31, 2024.

◦The next dividend of $0.88 per share is payable on December 12, 2024.


	Quarter						Nine Months Ended September 30,				Q3 2024 vs. Q2 2024		Q3 2024 vs. Q3 2023		YTD 2024 vs. YTD 2023
(in millions, except EPS)	Q3 2024		Q2 2024		Q3 2023		2024		2023
Total service revenues	$	16,725	$	16,429	$	15,914	$	49,250	$	47,198	1.8	%	5.1	%	4.3	%
Postpaid service revenues	13,308		12,899		12,288		38,838		36,220		3.2	%	8.3	%	7.2	%
Total revenues	20,162		19,772		19,252		59,528		58,080		2.0	%	4.7	%	2.5	%
Net income	3,059		2,925		2,142		8,358		6,303		4.6	%	42.8	%	32.6	%
Diluted EPS	2.61		2.49		1.82		7.10		5.26		4.8	%	43.4	%	35.0	%
Adjusted EBITDA	8,243		8,053		7,600		23,948		22,204		2.4	%	8.5	%	7.9	%
Core Adjusted EBITDA	8,222		8,027		7,547		23,866		21,935		2.4	%	8.9	%	8.8	%
Net cash provided by operating activities	6,139		5,521		5,294		16,744		13,700		11.2	%	16.0	%	22.2	%
Cash purchases of property and equipment, including capitalized interest	1,961		2,040		2,424		6,628		8,214		(3.9)	%	(19.1)	%	(19.3)	%
Adjusted Free Cash Flow	5,162		4,439		4,003		12,948		9,281		16.3	%	29.0	%	39.5	%

(1) Industry-leading claims are based on consensus expectations if results are not yet reported.

Extending Overall Network Lead with Best Assets, Customer Centricity and Technology Leadership

T-Mobile’s combination of best network assets, customer centricity and technology leadership is expected to keep the company’s network years ahead of the competition well into the future. The company’s unique Customer-Driven-Coverage model employs AI based assessment of customer experiences utilizing T-Mobile’s network data in order to improve network performance, deliver higher customer satisfaction, and prioritize network investments where they matter most to customers. Additionally, T-Mobile operates the only scaled nationwide 5G stand-alone core with VoNR coverage now reaching more than 300 million people, further improving call quality, reducing latency and improving customer experiences. And as more new phones support advanced capabilities like VoNR and four-carrier aggregation to further increase spectral efficiency, the company will be able to further differentiate its network performance.

T-Mobile is the overall network leader, with the company continuing to earn third-party recognition for its overall network performance:

•Opensignal: In its latest 5G Global Mobile Network Experience report, for the fourth year in a row, T-Mobile was crowned the global leader in 5G availability and was the only US operator to win a 5G Global Winner award for any category.

Note: See 5G device, coverage, and access details at T-Mobile.com. Ookla awards: Based on analysis by Ookla® of Speedtest Intelligence® data for the U.S., 1H 2024. Ookla trademarks used under license and reprinted with permission. Opensignal Awards: USA: Mobile Network Experience Report July 2024, based on independent analysis of mobile measurements recorded during the period March 1 - May 29, 2024. 5G Global Mobile Network Experience Awards, T-Mobile USA large land mass group & T-Mobile Puerto Rico small land mass group, 2024, based on independent analysis of mobile measurements recorded during the period January 1–June 29, 2024 © 2024 Opensignal Limited.

Raising 2024 Guidance Across the Board

•Postpaid net customer additions are expected to be between 5.6 million and 5.8 million, an increase from prior guidance of 5.4 million to 5.7 million.

•Core Adjusted EBITDA, which is Adjusted EBITDA less lease revenues, is expected to be between $31.6 billion and $31.8 billion, an increase at the midpoint from prior guidance of $31.5 billion to $31.8 billion.

•Net cash provided by operating activities, including payments for Merger-related costs, is expected to be between $22.0 billion and $22.3 billion, an increase from prior guidance of $21.8 billion to $22.2 billion.

•Cash purchases of property and equipment, including capitalized interest, are expected to be between $8.8 billion and $9.0 billion, versus prior guidance of $8.7 billion to $9.1 billion.

•Adjusted Free Cash Flow, including payments for Merger-related costs, is expected to be between $16.7 billion and $17.0 billion, an increase at the midpoint from prior guidance of $16.6 billion to $17.0 billion. Adjusted Free Cash Flow guidance does not assume any material net cash inflows from securitization.


(in millions, except Postpaid net customer additions and Effective tax rate)	Previous				Current				Change (Mid-point)
Postpaid net customer additions (thousands)	5,400		5,700		5,600		5,800		150
Net income (1)	N/A		N/A		N/A		N/A		N/A
Effective tax rate	24%		25%		~24%				(50) bps
Core Adjusted EBITDA (2)	$	31,500	$	31,800	$	31,600	$	31,800	$	50


Net cash provided by operating activities	21,800		22,200		22,000		22,300		150
Capital expenditures (3)	8,700		9,100		8,800		9,000		—
Adjusted Free Cash Flow (4)	16,600		17,000		16,700		17,000		50

(1)T-Mobile is not able to forecast Net income on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting certain items that affect GAAP Net income, including, but not limited to, Income tax expense and Interest expense. Core Adjusted EBITDA should not be used to predict Net income as the difference between this measure and Net income is variable.

(2)Management uses Core Adjusted EBITDA as a measure to monitor the financial performance of Company operations, excluding the impact of lease revenues from related device financing programs. Guidance ranges assume lease revenues of approximately $100 million for 2024.

(3)Capital expenditures means cash purchases of property and equipment, including capitalized interest.

(4)Adjusted Free Cash Flow guidance does not assume any material net cash inflows from securitization in 2024.

Financial Results

For more details on T-Mobile’s Q3 2024 financial results, including the Investor Factbook with detailed financial tables, please visit T-Mobile US, Inc.’s Investor Relations website at https://investor.t-mobile.com.

Earnings Call Information

Date/Time

•Wednesday, October 23, 2024, at 4:30 p.m. (EDT)

Pre-registration link for dial-in access

Participants can pre-register for the conference call here in order to receive dial-in information.

Access via Phone (audio only)

Please plan on accessing the call 10 minutes prior to the scheduled start time.

•Toll Free: 1-866-777-2509

•International: 1-412-317-5413

Access via Webcast

The earnings call will be broadcasted live and can be replayed via the Investor Relations website at https://investor.t-mobile.com.

Submit Questions via X

Send a post to @TMobileIR or @MikeSievert using $TMUS

Contact Information

•Media Relations: mediarelations@t-mobile.com

•Investor Relations: investor.relations@t-mobile.com

T-Mobile Social Media

Investors and others should note that we announce material financial and operational information to our investors using our investor relations website (https://investor.t-mobile.com), newsroom website (https://t-mobile.com/news), press releases, SEC filings and public conference calls and webcasts. We also intend to use certain social media accounts as a means of disclosing information about us and our services and for complying with our disclosure obligations under Regulation FD (the @TMobileIR X account (https://x.com/TMobileIR), the @MikeSievert X account (https://x.com/MikeSievert), which Mr. Sievert also uses as a means for personal communications and observations, and the @TMobileCFO X account (https://x.com/tmobilecfo), and our CFO’s LinkedIn account (https://www.linkedin.com/in/peter-osvaldik-3887394), both of which Mr. Osvaldik also uses as a means for personal communication and observations). The information we post through these social media channels may be deemed material. Accordingly, investors should monitor these social media channels in addition to following our press releases, SEC filings and public conference calls and webcasts. The social media channels that we intend to use as a means of disclosing the information described above may be updated from time to time as listed on our investor relations website.

About T-Mobile US, Inc.

T-Mobile US, Inc. (NASDAQ: TMUS) is America’s supercharged Un-carrier, delivering an advanced 4G LTE and transformative nationwide 5G network that will offer reliable connectivity for all. T-Mobile’s customers benefit from its unmatched combination of value and quality, unwavering obsession with offering them the best possible service experience and undisputable drive for disruption that creates competition and innovation in wireless and beyond. Based in Bellevue, Wash., T-Mobile provides services through its subsidiaries and operates its flagship brands, T-Mobile, Metro by T-Mobile and Mint Mobile. For more information please visit: https://www.t-mobile.com.

Forward-Looking Statements

Forward-looking statements are based on current expectations and assumptions, which are subject to risks and uncertainties and may cause actual results to differ materially from the forward-looking statements. Important factors that could affect future results and cause those results to differ materially from those expressed in the forward-looking statements include, among others, the following: competition, industry consolidation and changes in the market for wireless communications services and other forms of connectivity; criminal cyberattacks, disruption, data loss or other security breaches; our inability to take advantage of technological developments on a timely basis; our inability to retain or motivate key personnel, hire qualified personnel or maintain our corporate culture; system failures and business disruptions, allowing for unauthorized use of or interference with our network and other systems; the scarcity and cost of additional wireless spectrum, and regulations relating to spectrum use; the impacts of the actions we have taken and conditions we have agreed to in connection with the regulatory proceedings and approvals of the Transactions (as defined below), including the acquisition by DISH Network Corporation (“DISH”) of the prepaid wireless business operated under the Boost Mobile and Sprint prepaid brands (excluding the Assurance brand Lifeline customers and the prepaid wireless customers of Shenandoah Personal Communications Company LLC and Swiftel Communications, Inc.), including customer accounts, inventory, contracts, intellectual property and certain other specified assets, and the assumption of certain related liabilities (collectively, the “Prepaid Transaction”), the complaint and proposed final judgment agreed to by us, Deutsche Telekom AG (“DT”), Sprint Corporation, now known as Sprint LLC (“Sprint”), SoftBank Group Corp. (“SoftBank”) and DISH with the U.S. District Court for the District of Columbia, which was approved by the Court on April 1, 2020, the proposed commitments filed with the Secretary of the Federal Communications Commission (“FCC”), which we announced on May 20, 2019, certain national security commitments and undertakings, and any other commitments or undertakings entered into, including, but not limited to, those we have made to certain states and nongovernmental organizations (collectively, the “Government Commitments”), and the challenges in satisfying the Government Commitments in the required time frames and the significant cumulative costs incurred in tracking and monitoring compliance over multiple years; adverse economic, political or market conditions in the U.S. and international markets, including changes resulting from increases in inflation or interest rates, supply chain disruptions, and impacts of geopolitical instability, such as the Ukraine-Russia war and Israel-Hamas war; sociopolitical volatility and polarization; our inability to manage the ongoing commercial services arrangements entered into in connection with the Prepaid Transaction, and known or unknown liabilities arising in connection therewith; the timing and effects of any future acquisition, divestiture, investment, or merger involving us, including our inability to obtain any required regulatory approval necessary to consummate any such transactions; any disruption or failure of our third parties (including key suppliers) to provide products or services for the operation of our business; our substantial level of indebtedness and our inability to service our debt obligations in accordance with their terms; changes in the credit market conditions, credit rating downgrades or an inability to access debt markets; the risk of future material weaknesses we may identify, or any other failure by us to maintain effective internal controls, and the resulting significant costs and reputational damage; any changes in regulations or in the regulatory framework under which we operate; laws and regulations relating to the handling of privacy and data protection; unfavorable outcomes of and increased costs from existing or future regulatory or legal proceedings; difficulties in protecting our intellectual property rights or if we infringe on the intellectual property rights of others; our offering of regulated financial services products and exposure to a wide variety of state and federal regulations; new or amended tax laws or regulations or administrative interpretations and judicial decisions affecting the scope or application of tax laws or regulations; our wireless licenses, including those controlled through leasing agreements, are subject to renewal and may be revoked; our exclusive forum provision as provided in our Certificate of Incorporation; interests of DT, our controlling stockholder, which may differ from the interests of other stockholders; the dollar amount authorized for our 2023-2024 Stockholder Return Program may not be fully utilized, and our share repurchases and dividend payments pursuant thereto may fail to have the desired impact on stockholder value; future sales of our common stock by DT and SoftBank and our inability to attract additional equity financing outside the United States due to foreign ownership limitations by the FCC; and other risks as disclosed in our most recent annual report on Form 10-K, 10-Q and other filings with the Securities and Exchange Commission. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law.

T-Mobile US, Inc.

Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures

(Unaudited)

This Press Release includes non-GAAP financial measures. The non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information provided in accordance with GAAP. Reconciliations for the non-GAAP financial measures to the most directly comparable GAAP financial measures are provided below. T-Mobile is not able to forecast Net income on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting certain items that affect GAAP net income, including, but not limited to, Income tax expense and Interest expense. Adjusted EBITDA and Core Adjusted EBITDA should not be used to predict Net income as the difference between either of these measures and Net income is variable.

Adjusted EBITDA and Core Adjusted EBITDA are reconciled to Net income as follows:


	Quarter														Nine Months Ended September 30,
(in millions)	Q1 2023		Q2 2023		Q3 2023		Q4 2023		Q1 2024		Q2 2024		Q3 2024		2023		2024

Net income	$	1,940	$	2,221	$	2,142	$	2,014	$	2,374	$	2,925	$	3,059	$	6,303	$	8,358
Adjustments:


Interest expense, net	835		861		790		849		880		854		836		2,486		2,570


Other (income) expense, net	(9)		(6)		(41)		(12)		(20)		8		(7)		(56)		(19)
Income tax expense	631		717		705		629		764		843		908		2,053		2,515
Operating income	3,397		3,793		3,596		3,480		3,998		4,630		4,796		10,786		13,424
Depreciation and amortization	3,203		3,110		3,187		3,318		3,371		3,248		3,151		9,500		9,770

Stock-based compensation (1)	173		155		152		164		140		147		143		480		430
Merger-related costs (gain), net (2)	358		276		152		248		130		(9)		—		786		121


Legal-related (recoveries) expenses, net (3)	(43)		—		—		1		—		15		1		(43)		16
(Gain) loss on disposal group held for sale	(42)		17		—		—		—		—		—		(25)		—
Other, net (4)	153		54		513		13		13		22		152		720		187
Adjusted EBITDA	7,199		7,405		7,600		7,224		7,652		8,053		8,243		22,204		23,948
Lease revenues	(147)		(69)		(53)		(43)		(35)		(26)		(21)		(269)		(82)
Core Adjusted EBITDA	$	7,052	$	7,336	$	7,547	$	7,181	$	7,617	$	8,027	$	8,222	$	21,935	$	23,866

(1)Stock-based compensation includes payroll tax impacts and may not agree to stock-based compensation expense in the Condensed Consolidated Financial Statements. Additionally, certain stock-based compensation expenses associated with the merger with Sprint Corporation (the “Merger”) have been included in Merger-related costs (gain), net.

(2)Merger-related costs (gain), net, for the nine months ended September 30, 2024, includes the $100 million gain recognized for the extension fee previously paid by DISH associated with the DISH License Purchase Agreement.

(3)Legal-related (recoveries) expenses, net consists of the settlement of certain litigation associated with the August 2021 cyberattack, net of insurance recoveries.

(4)Other, net, primarily consists of certain severance, restructuring and other expenses, gains and losses, including severance and related costs associated with the August 2023 workforce reduction, not directly attributable to the Merger, which are not reflective of T-Mobile’s core business activities and are, therefore, excluded from Adjusted EBITDA and Core Adjusted EBITDA.

Adjusted EBITDA represents earnings before Interest expense, net of Interest income, Income tax expense, Depreciation and amortization, stock-based compensation and certain expenses, gains and losses, which are not reflective of our ongoing operating performance (“Special Items”). Special Items include Merger-related costs (gain), net, (Gain) loss on disposal groups held for sale, certain legal-related recoveries and expenses, restructuring costs not directly attributable to the Merger (including severance), and other non-core gains and losses. Core Adjusted EBITDA represents Adjusted EBITDA less device lease revenues. Core Adjusted EBITDA and Adjusted EBITDA are non-GAAP financial measures utilized by T-Mobile’s management to monitor the financial performance of our operations. T-Mobile uses Core Adjusted EBITDA and Adjusted EBITDA as benchmarks to evaluate T-Mobile’s operating performance in comparison to its competitors. T-Mobile also uses Core Adjusted EBITDA internally as a measure to evaluate and compensate its personnel and management for their performance. Management believes analysts and investors use Core Adjusted EBITDA and Adjusted EBITDA as supplemental measures to evaluate overall operating performance and to facilitate comparisons with other wireless communications services companies because they are indicative of T-Mobile’s ongoing operating performance and trends by excluding the impact of Interest expense from financing, non-cash depreciation and amortization from capital investments, non-cash stock-based compensation, and Special Items. Management believes analysts and investors use Core Adjusted EBITDA because it normalizes for the transition in the company’s device financing strategy, by excluding the impact of device lease revenues from Adjusted EBITDA, to align with the related depreciation expense on leased devices, which is excluded from the definition of Adjusted EBITDA. Core Adjusted EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as substitutes for Net income or any other measure of financial performance reported in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”).

T-Mobile US, Inc.

Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures (continued)

(Unaudited)

Adjusted Free Cash Flow is calculated as follows:


	Quarter																					Nine Months Ended September 30,
(in millions, except percentages)	Q1 2023			Q2 2023			Q3 2023			Q4 2023			Q1 2024			Q2 2024			Q3 2024			2023			2024

Net cash provided by operating activities	$	4,051		$	4,355		$	5,294		$	4,859		$	5,084		$	5,521		$	6,139		$	13,700		$	16,744
Cash purchases of property and equipment, including capitalized interest	(3,001)			(2,789)			(2,424)			(1,587)			(2,627)			(2,040)			(1,961)			(8,214)			(6,628)
Proceeds from sales of tower sites	6			2			2			2			—			—			—			10			—
Proceeds related to beneficial interests in securitization transactions	1,345			1,309			1,131			1,031			890			958			984			3,785			2,832

Adjusted Free Cash Flow	$	2,401		$	2,877		$	4,003		$	4,305		$	3,347		$	4,439		$	5,162		$	9,281		$	12,948
Net cash provided by operating activities margin (Net cash provided by operating activities divided by Service revenues)	26.1		%	27.7		%	33.3		%	30.3		%	31.6		%	33.6		%	36.7		%	29.0		%	34.0		%
Adjusted Free Cash Flow margin (Adjusted Free Cash Flow divided by Service revenues)	15.4		%	18.3		%	25.2		%	26.8		%	20.8		%	27.0		%	30.9		%	19.7		%	26.3		%

Adjusted Free Cash Flow - Net cash provided by operating activities less Cash purchases of property and equipment, plus Proceeds from sales of tower sites and Proceeds related to beneficial interests in securitization transactions. Adjusted Free Cash Flow is utilized by T-Mobile’s management, investors and analysts to evaluate cash available to pay debt, repurchase shares, pay dividends and provide further investment in the business.

Adjusted Free Cash Flow margin - Adjusted Free Cash Flow divided by Service revenues. Adjusted Free Cash Flow Margin is utilized by T-Mobile’s management, investors, and analysts to evaluate the company’s ability to convert service revenue efficiently into cash available to pay debt, repurchase shares and provide further investment in the business.

The current guidance range for Adjusted Free Cash Flow is calculated as follows:


	FY 2024
(in millions)	Guidance Range

Net cash provided by operating activities	$	22,000	$	22,300
Cash purchases of property and equipment, including capitalized interest	(8,800)		(9,000)
Proceeds related to beneficial interests in securitization transactions (1)	3,500		3,700



Adjusted Free Cash Flow	$	16,700	$	17,000

(1)Adjusted Free Cash Flow guidance does not assume any material net cash inflows from securitization in 2024.

The previous guidance range for Adjusted Free Cash Flow was calculated as follows:


	FY 2024
(in millions)	Guidance Range

Net cash provided by operating activities	$	21,800	$	22,200
Cash purchases of property and equipment, including capitalized interest	(8,700)		(9,100)
Proceeds related to beneficial interests in securitization transactions (1)	3,500		3,900



Adjusted Free Cash Flow	$	16,600	$	17,000

(1)Adjusted Free Cash Flow guidance does not assume any material net cash inflows from securitization in 2024.

T-Mobile US, Inc.

Operating Measures

(Unaudited)

The following table sets forth company operating measures ARPA and ARPU:


	Quarter														Nine Months Ended September 30,
(in dollars)	Q1 2023		Q2 2023		Q3 2023		Q4 2023		Q1 2024		Q2 2024		Q3 2024		2023		2024





Postpaid ARPA	$	138.04	$	138.94	$	139.83	$	140.23	$	140.88	$	142.54	$	145.60	$	138.94	$	143.02







Postpaid phone ARPU	48.63		48.84		48.93		48.91		48.79		49.07		49.79		48.80		49.22















Prepaid ARPU	37.98		37.98		38.18		37.55		37.18		35.94		35.81		38.05		36.27

Postpaid Average Revenue Per Account (Postpaid ARPA) - Average monthly postpaid service revenue earned per account. Postpaid service revenues for the specified period divided by the average number of postpaid accounts during the period, further divided by the number of months in the period.

Average Revenue Per User (ARPU) - Average monthly service revenue earned per customer. Service revenues for the specified period divided by the average number of customers during the period, further divided by the number of months in the period.

Postpaid phone ARPU excludes postpaid other customers and related revenues.

EXHIBIT 99.2


			2


3						Highlights
4						Customer Metrics
7						Financial Metrics
13						Capital Structure

14						Guidance
15						Contacts
16						Financial and Operational Tables


			3

(1)AT&T Inc. historically does not disclose postpaid net account additions. Comcast and Charter do not disclose postpaid phone net customer additions. Industry leading claims are based on consensus expectations if results are not yet reported.


			4


			Postpaid Accounts (in thousands)


Year-Over-Year

Continued growth in Postpaid accounts with a decrease in net additions primarily due to:

■Fewer High Speed Internet only additions due to the sunsetting of promotional pricing


Sequential

Continued growth in Postpaid accounts with an increase in net additions primarily due to:

■Seasonally higher gross additions

■Mostly offset by seasonally higher deactivations


Year-Over-Year

Postpaid ARPA increased 4% primarily due to:

■Higher premium services, primarily high-end rate plans, net of contra revenues for content included in such plans, and discounts for specific affinity groups (55+, military, and first responders)

■An increase in customers per account, including continued adoption of High Speed Internet

■The impact from rate plan optimizations

■Partially offset by increased promotional activity and an increase in High Speed Internet only accounts

Postpaid phone ARPU increased 2% due to:

■Higher premium services, primarily high-end rate plans, net of contra revenues for content included in such plans, and discounts for specific affinity groups (55+, military, and first responders)

■The impact from rate plan optimizations

■Partially offset by increased promotional activity and growth in business customers with lower ARPU given larger account sizes


Sequential

Postpaid ARPA increased 2% due to:

■Higher premium services, primarily high-end rate plans, net of contra revenues for content included in such plans, and discounts for specific affinity groups (55+, military, and first responders)

■The impact from rate plan optimizations

■An increase in customers per account, including continued adoption of High Speed Internet

■Partially offset by increased promotional activity and an increase in High Speed Internet only accounts


Sequential

Postpaid phone ARPU increased 1% due to:

■The impact from rate plan optimizations

■Higher premium services, primarily high-end rate plans, net of contra revenues for content included in such plans, and discounts for specific affinity groups (55+, military, and first responders)

■Partially offset by increased promotional activity


			Postpaid ARPA & Postpaid Phone ARPU


			5


			Postpaid Customers (in thousands)


Year-Over-Year

Postpaid phone net customer additions increased primarily due to:

■Higher prepaid to postpaid migrations

■Lower churn

■Higher gross additions

■Partially offset by increased deactivations from a growing customer base

Postpaid other net customer additions increased primarily due to:

■Higher prior year deactivations of lower ARPU mobile internet devices in the educational sector that were activated during the Pandemic and no longer needed

■Partially offset by lower net additions from wearables and High Speed Internet


Sequential

Postpaid phone net customer additions increased due to:

■Seasonally higher gross additions

■Partially offset by seasonally higher churn

Postpaid other net customer additions increased primarily due to:

■Higher prior quarter deactivations of lower ARPU mobile internet devices in the educational sector that were activated during the Pandemic and no longer needed

■Partially offset by lower net additions from wearables


Year-Over-Year

Postpaid phone churn decreased 1 basis point.


Sequential

Postpaid phone churn increased 6 basis points primarily due to:

■Seasonal trends


			Postpaid Phone Churn


			6


			Prepaid Customers (in thousands)

During Q2 2024, we acquired 3.5 million prepaid customers, net of certain base adjustments, through the acquisition of Mint Mobile and Ultra Mobile.


Year-Over-Year

Prepaid net customer additions decreased primarily due to:

■Continued moderation of prepaid industry growth

■Higher prepaid to postpaid migrations

■Lower net additions from High Speed Internet

■Partially offset by higher net additions following the acquisition of Mint Mobile and Ultra Mobile


Sequential

Prepaid net customer additions decreased primarily due to:

■Continued moderation of prepaid industry growth and higher seasonal churn

■Partially offset by higher net additions from a full quarter of Mint Mobile and Ultra Mobile operations


Year-Over-Year

High Speed Internet net customer additions decreased primarily due to:

■Increased deactivations from a growing customer base

■Lower gross additions driven by sunsetting of promotional pricing

■Partially offset by a lower churn rate


Sequential

High Speed Internet net customer additions increased primarily due to:

■Higher gross additions

■Mostly offset by increased deactivations


			High Speed Internet Customers (in thousands)


			7


			Service Revenues ($ in millions)


Year-Over-Year

Service revenues increased 5% primarily due to:

■Increase in Postpaid service revenues

■An increase in Prepaid service revenues, primarily driven by the impact of the acquisition of Mint Mobile and Ultra Mobile

■Partially offset by a decrease in Wholesale and other service revenues, primarily driven by lower MVNO revenues, including the impact of the of acquisition of Mint Mobile and Ultra Mobile and lower Affordable Connectivity Program and Lifeline revenues


Sequential

Service revenues increased 2% primarily due to:

■Increase in Postpaid service revenues

■An increase in Prepaid service revenues, primarily driven by the impact of the acquisition of Mint Mobile and Ultra Mobile

■Partially offset by a decrease in Wholesale and other service revenues driven primarily by lower Affordable Connectivity Program revenues and the impact of the acquisition of Mint Mobile and Ultra Mobile


Year-Over-Year

Postpaid service revenues increased 8% primarily due to:

■Higher postpaid ARPA

■Higher average postpaid accounts


Sequential

Postpaid service revenues increased 3% primarily due to:

■Higher postpaid ARPA

■Higher average postpaid accounts


			Postpaid Service Revenues ($ in millions)


			8


			Equipment Revenues ($ in millions)


Year-Over-Year

Equipment revenues increased 4% primarily due to:

■A higher average revenue per device sold, net of promotions, primarily driven by an increase in the high-end phone mix

■Higher liquidation revenue primarily due to a higher number of in-house liquidated devices, including the impact from the transition of certain device recovery programs from external sources to in-house processing resulting in a change in presentation from Other revenues to Equipment revenues

■Partially offset by a net decrease in the total number of devices sold, driven by lower Assurance Wireless and prepaid devices, partially offset by higher postpaid devices


Sequential

Equipment revenues increased 3% primarily due to:

■A higher average revenue per device sold, net of promotions, primarily due to a seasonal increase in the high-end phone mix

■Slightly offset by a net decrease in the total number of devices sold, driven by lower Assurance Wireless sales which were mostly offset by a higher number of postpaid devices sold due to seasonality


Year-Over-Year

Cost of equipment sales, exclusive of Depreciation and Amortization (D&A), increased 1% due to:

■A higher average cost per device sold, primarily driven by an increase in the high-end phone mix

■Higher liquidation costs primarily due to a higher number of in-house liquidated devices, including the impact from the transition of certain device recovery programs from external sources to in-house processing

■Mostly offset by a net decrease in the total number of devices sold, driven by lower Assurance Wireless and prepaid devices, partially offset by higher postpaid devices


Sequential

Cost of equipment sales, exclusive of D&A, increased 5% primarily due to:

■A higher average cost per device sold due to a seasonal increase in the high-end phone mix


Sequential


			Cost of Equipment Sales, exclusive of D&A ($ in millions)


			9


			Cost of Services, exclusive of D&A ($ in millions, % of Service revenues)


Year-Over-Year

Cost of services, exclusive of D&A, decreased 6% primarily due to:

■Prior year severance and related costs of $140 million

■Prior year Merger-related costs related to network decommissioning and integration

■Higher Merger synergies

■Partially offset by higher site costs related to the continued build-out of our nationwide 5G network


Sequential

Cost of services, exclusive of D&A, increased 2%, or $58 million.


Year-Over-Year

SG&A expense decreased 3% primarily due to:

■Prior year severance and related costs of $331 million

■Higher Merger synergies

■Partially offset by higher costs as the result of the acquisition of Mint Mobile and Ultra Mobile


Sequential

SG&A expense increased slightly primarily due to:

■A $100 million gain recognized in the prior quarter for the extension fee previously paid by DISH pursuant to the license purchase agreement for 800 MHz spectrum, which was not purchased


			Selling, General and Administrative (SG&A) Expense ($ in millions, % of Service revenues)


			10


			Net Income ($ in millions, % of Service revenues)


			Diluted Earnings Per Share (Diluted EPS)


Year-Over-Year

Net income was $3.1 billion and Diluted earnings per share was $2.61 in Q3 2024, compared to $2.1 billion and $1.82 in Q3 2023, primarily due to the factors described above and included the following, net of tax:

■Merger-related costs of $114 million, or $0.10 per share, in Q3 2023

■Severance and related costs of $353 million or $0.30 per share, in Q3 2023


Sequential

Net income was $3.1 billion and Diluted earnings per share was $2.61 in Q3 2024, compared to $2.9 billion and $2.49 in Q2 2024, primarily due to the factors described above.


			11


			Core Adjusted EBITDA* ($ in millions, % of Service revenues)

*Excludes Special Items (see detail on page 23)


Year-Over-Year

Core Adjusted EBITDA increased 9% primarily due to:

■Higher Service revenues

■Higher Equipment revenues, excluding Lease revenues

■Partially offset by higher SG&A expenses, excluding Special Items, such as severance and related costs


Sequential

Core Adjusted EBITDA increased 2% primarily due to:

■Higher Service revenues

■Higher Equipment revenues, excluding Lease revenues

■Partially offset by higher Cost of equipment sales


Year-Over-Year

Net cash provided by operating activities increased 16% primarily due to:

■Higher Net income, adjusted for non-cash income and expenses

■Partially offset by higher net cash outflows from changes in working capital


Sequential

Net cash provided by operating activities increased 11% primarily due to:

■Lower net cash outflows from changes in working capital

■Higher Net income, adjusted for non-cash income and expenses

The impact of net payments for Merger-related costs on Net cash provided by operating activities was $124 million in Q3 2024 compared to $241 million in Q2 2024 and $345 million in Q3 2023.

Effective November 1, 2024, following amendments to the company’s Equipment Installment Plan Sale and Service Receivable Sale arrangements, all cash proceeds associated with the sale of such receivables, a portion of which is currently recognized as Proceeds related to beneficial interests in securitization transactions within investing cash flows, will be recognized as operating cash flows. These amendments will not have a net impact on Adjusted Free Cash Flow.


			Net Cash Provided by Operating Activities ($ in millions)


			12


			Cash Purchases of Property and Equipment, incl. Capitalized Interest ($ in millions, % of Service revenues)


Year-Over-Year

Cash purchases of property and equipment, including capitalized interest, decreased 19% primarily due to:

■Increased capital efficiencies from accelerated investments in our nationwide 5G network build-out in previous years


Sequential

Cash purchases of property and equipment, including capitalized interest, decreased 4% primarily due to:

■Planned timing of capital purchases


Year-Over-Year

Adjusted Free Cash Flow increased 29% primarily due to:

■Higher Net cash provided by operating activities

■Lower Cash purchases of property and equipment

■Partially offset by lower proceeds related to securitization transactions, which were offset in Net cash provided by operating activities. There were no significant net cash proceeds during the quarter from securitization.


Sequential

Adjusted Free Cash Flow increased 16% primarily due to:

■Higher Net cash provided by operating activities

The impact of net payments for Merger-related costs on Adjusted Free Cash Flow was $124 million in Q3 2024 compared to $241 million in Q2 2024 and $345 million in Q3 2023.


			Adjusted Free Cash Flow ($ in millions)


			13


			Net Debt (Excluding Tower Obligations) & Net Debt to LTM Net Income and Core Adj. EBITDA Ratios ($ in billions)


			Stockholder Returns ($ in millions)

Total debt, excluding tower obligations, at the end of Q3 2024 was $82.3 billion.

Net debt, excluding tower obligations, at the end of Q3 2024 was $72.6 billion.

■On September 6, 2023, the Board of Directors authorized a stockholder return program for up to $19.0 billion that will run through December 31, 2024, consisting of additional repurchases of shares and payment of cash dividends.

■During Q3 2024, 3.2 million shares were repurchased for $644 million.

■On a cumulative basis, as of September 30, 2024, a total of 153.4 million shares were repurchased for approximately $22.7 billion.

■During Q3 2024, the company paid a cash dividend of $0.65 per each share of common stock, or approximately $758 million, on September 12, 2024.

■As of September 30, 2024, the remaining authorization for stock repurchases and quarterly cash dividends through December 2024 is $7.3 billion, with the next dividend payable on December 12, 2024.


			14

2024 Outlook


Metric	Previous	Revised	Change at Midpoint
Postpaid net customer additions	5.4 to 5.7 million	5.6 to 5.8 million	150 thousand
Net income (1)	N/A	N/A	N/A
Effective tax rate	24% to 25%	~24%	(50) bps
Core Adjusted EBITDA (2)	$31.5 to $31.8 billion	$31.6 to $31.8 billion	$50 million
Net cash provided by operating activities	$21.8 to $22.2 billion	$22.0 to $22.3 billion	$150 million
Capital expenditures (3)	$8.7 to $9.1 billion	$8.8 to $9.0 billion	No change
Adjusted Free Cash Flow (4)	$16.6 to $17.0 billion	$16.7 to $17.0 billion	$50 million

(1)We are not able to forecast Net income on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting certain items that affect GAAP Net income, including, but not limited to, Income tax expense and Interest expense. Core Adjusted EBITDA should not be used to predict Net income as the difference between this measure and Net income is variable.

(2)Management uses Core Adjusted EBITDA as a measure to monitor the financial performance of our operations, excluding the impact of lease revenues from our related device financing programs. Our guidance ranges assume lease revenues of approximately $100 million for 2024.

(3)Capital expenditures means cash purchases of property and equipment, including capitalized interest.

(4)Adjusted Free Cash Flow guidance does not assume any material net cash inflows from securitization in 2024.


			15

Investor Relations

Cathy Yao

Justin Taiber

Rob Brust

Senior Vice President

Senior Director

Investor Relations

Zach Witterstaetter

Rose Kopecky

Jacob Marks

Investor Relations

Manager

investor.relations@t-mobile.com

https://investor.t-mobile.com


			16

T-Mobile US, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)


(in millions, except share and per share amounts)	September 30, 2024		December 31, 2023
Assets
Current assets

Cash and cash equivalents	$	9,754	$	5,135
Accounts receivable, net of allowance for credit losses of $162 and $161	4,286		4,692
Equipment installment plan receivables, net of allowance for credit losses and imputed discount of $575 and $623	3,595		4,456

Inventory	1,789		1,678

Prepaid expenses	953		702

Other current assets	2,154		2,352

Total current assets	22,531		19,015

Property and equipment, net	37,603		40,432
Operating lease right-of-use assets	25,833		27,135
Financing lease right-of-use assets	3,352		3,270
Goodwill	13,015		12,234
Spectrum licenses	98,736		96,707
Other intangible assets, net	2,762		2,618
Equipment installment plan receivables due after one year, net of allowance for credit losses and imputed discount of $130 and $150	1,752		2,042

Other assets	5,158		4,229

Total assets	$	210,742	$	207,682
Liabilities and Stockholders' Equity
Current liabilities

Accounts payable and accrued liabilities	$	7,496	$	10,373

Short-term debt	5,851		3,619

Deferred revenue	1,125		825
Short-term operating lease liabilities	3,328		3,555
Short-term financing lease liabilities	1,252		1,260

Other current liabilities	1,903		1,296

Total current liabilities	20,955		20,928

Long-term debt	72,522		69,903
Long-term debt to affiliates	1,497		1,496
Tower obligations	3,695		3,777
Deferred tax liabilities	15,849		13,458
Operating lease liabilities	26,821		28,240
Financing lease liabilities	1,185		1,236


Other long-term liabilities	3,968		3,929

Total long-term liabilities	125,537		122,039
Commitments and contingencies
Stockholders' equity


Common stock, par value $0.00001 per share, 2,000,000,000 shares authorized; 1,270,824,969 and 1,262,904,154 shares issued, 1,164,613,922 and 1,195,807,331 shares outstanding	—		—
Additional paid-in capital	68,659		67,705
Treasury stock, at cost, 106,211,047 and 67,096,823 shares issued	(15,921)		(9,373)
Accumulated other comprehensive loss	(889)		(964)
Retained earnings	12,401		7,347

Total stockholders' equity	64,250		64,715
Total liabilities and stockholders' equity	$	210,742	$	207,682


			17

T-Mobile US, Inc.

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)


	Three Months Ended						Nine Months Ended September 30,
(in millions, except share and per share amounts)	September 30, 2024		June 30, 2024		September 30, 2023		2024		2023
Revenues

Postpaid revenues	$	13,308	$	12,899	$	12,288	$	38,838	$	36,220
Prepaid revenues	2,716		2,592		2,473		7,711		7,334
Wholesale and other service revenues	701		938		1,153		2,701		3,644


Total service revenues	16,725		16,429		15,914		49,250		47,198

Equipment revenues	3,207		3,106		3,076		9,564		9,964
Other revenues	230		237		262		714		918

Total revenues	20,162		19,772		19,252		59,528		58,080

Operating expenses

Cost of services, exclusive of depreciation and amortization shown separately below	2,722		2,664		2,886		8,074		8,863
Cost of equipment sales, exclusive of depreciation and amortization shown separately below	4,307		4,088		4,249		12,794		12,925
Selling, general and administrative	5,186		5,142		5,334		15,466		16,031

Gain on disposal group held for sale	—		—		—		—		(25)
Depreciation and amortization	3,151		3,248		3,187		9,770		9,500


Total operating expenses	15,366		15,142		15,656		46,104		47,294

Operating income	4,796		4,630		3,596		13,424		10,786

Other expense, net

Interest expense, net	(836)		(854)		(790)		(2,570)		(2,486)


Other income (expense), net	7		(8)		41		19		56
Total other expense, net	(829)		(862)		(749)		(2,551)		(2,430)
Income before income taxes	3,967		3,768		2,847		10,873		8,356
Income tax expense	(908)		(843)		(705)		(2,515)		(2,053)



Net income	$	3,059	$	2,925	$	2,142	$	8,358	$	6,303



Net income	$	3,059	$	2,925	$	2,142	$	8,358	$	6,303
Other comprehensive income, net of tax


Reclassification of loss from cash flow hedges, net of tax effect of $15, $15, $15, $45 and $42	44		43		41		130		121
Net unrealized loss on fair value hedges, net of tax effect of $(5), $(10), $0, $(15) and $0	(12)		(30)		—		(42)		—
Unrealized gain on foreign currency translation adjustment, net of tax effect of $0, $0, $0, $0 and $0	—		—		—		—		9

Amortization of actuarial gain, net of tax effect of $(2), $(1), $(11), $(5) and $(11)	(4)		(4)		(33)		(13)		(33)


Other comprehensive income	28		9		8		75		97

Total comprehensive income	$	3,087	$	2,934	$	2,150	$	8,433	$	6,400
Earnings per share



Basic	$	2.62	$	2.50	$	1.83	$	7.12	$	5.28



Diluted	$	2.61	$	2.49	$	1.82	$	7.10	$	5.26
Weighted-average shares outstanding
Basic	1,166,961,755		1,170,025,862		1,171,336,373		1,174,069,336		1,194,497,722
Diluted	1,170,649,561		1,172,447,353		1,174,390,472		1,177,637,145		1,198,290,141


			18

T-Mobile US, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)


	Three Months Ended						Nine Months Ended September 30,
(in millions)	September 30, 2024		June 30, 2024		September 30, 2023		2024		2023
Operating activities
Net income	$	3,059	$	2,925	$	2,142	$	8,358	$	6,303
Adjustments to reconcile net income to net cash provided by operating activities

Depreciation and amortization	3,151		3,248		3,187		9,770		9,500
Stock-based compensation expense	170		164		156		474		500
Deferred income tax expense	817		747		671		2,279		1,985
Bad debt expense	299		255		228		836		663
Losses from sales of receivables	23		25		46		69		135





Loss on remeasurement of disposal group held for sale	—		—		—		—		9
Changes in operating assets and liabilities
Accounts receivable	(734)		(1,286)		(1,046)		(2,436)		(3,828)
Equipment installment plan receivables	(72)		155		165		360		563
Inventory	(448)		221		(309)		(57)		182
Operating lease right-of-use assets	877		872		886		2,605		2,823
Other current and long-term assets	(19)		(416)		(135)		(275)		77
Accounts payable and accrued liabilities	(165)		38		208		(1,861)		(1,538)
Short- and long-term operating lease liabilities	(805)		(1,148)		(692)		(2,970)		(2,884)
Other current and long-term liabilities	(125)		(360)		(260)		(657)		(909)
Other, net	111		81		47		249		119

Net cash provided by operating activities	6,139		5,521		5,294		16,744		13,700
Investing activities

Purchases of property and equipment, including capitalized interest of $(9), $(8), $(66), $(26) and $(94)	(1,961)		(2,040)		(2,424)		(6,628)		(8,214)
Purchases of spectrum licenses and other intangible assets, including deposits	(2,419)		(156)		(119)		(2,636)		(225)
Proceeds from sales of tower sites	—		—		2		—		10
Proceeds related to beneficial interests in securitization transactions	984		958		1,131		2,832		3,785

Acquisition of companies, net of cash acquired	—		(390)		—		(390)		—

Other, net	89		(50)		17		50		36

Net cash used in investing activities	(3,307)		(1,678)		(1,393)		(6,772)		(4,608)
Financing activities

Proceeds from issuance of long-term debt	2,480		2,136		1,983		8,089		8,446



Repayments of financing lease obligations	(347)		(351)		(304)		(1,025)		(914)

Repayments of long-term debt	(223)		(2,723)		(4,474)		(3,169)		(4,828)


Repurchases of common stock	(560)		(2,387)		(2,681)		(6,541)		(10,891)
Dividends on common stock	(758)		(759)		—		(2,286)		—


Tax withholdings on share-based awards	(36)		(16)		(10)		(244)		(267)


Other, net	(49)		(34)		(24)		(117)		(113)

Net cash provided by (used in) financing activities	507		(4,134)		(5,510)		(5,293)		(8,567)
Change in cash and cash equivalents, including restricted cash and cash held for sale	3,339		(291)		(1,609)		4,679		525
Cash and cash equivalents, including restricted cash and cash held for sale
Beginning of period	6,647		6,938		6,808		5,307		4,674
End of period	$	9,986	$	6,647	$	5,199	$	9,986	$	5,199


			19

T-Mobile US, Inc.

Condensed Consolidated Statements of Cash Flows (Continued)

(Unaudited)


	Three Months Ended						Nine Months Ended September 30,
(in millions)	September 30, 2024		June 30, 2024		September 30, 2023		2024		2023
Supplemental disclosure of cash flow information
Interest payments, net of amounts capitalized	$	947	$	935	$	915	$	2,778	$	2,651
Operating lease payments	1,127		1,457		1,037		3,928		3,834
Income tax payments	50		107		4		164		126
Non-cash investing and financing activities
Non-cash beneficial interest obtained in exchange for securitized receivables	$	789	$	833	$	920	$	2,283	$	3,148

Change in accounts payable and accrued liabilities for purchases of property and equipment	41		(232)		(459)		(1,085)		(1,196)




Operating lease right-of-use assets obtained in exchange for lease obligations	469		344		563		1,300		1,676
Financing lease right-of-use assets obtained in exchange for lease obligations	409		311		398		983		961
Contingent and other deferred consideration related to the Ka’ena Acquisition	—		210		—		210		—


			20

T-Mobile US, Inc.

Supplementary Operating and Financial Data

(Unaudited)


	Quarter							Nine Months Ended September 30,
(in thousands)	Q1 2023	Q2 2023	Q3 2023	Q4 2023	Q1 2024	Q2 2024	Q3 2024	2023	2024
Customers, end of period

Postpaid phone customers (1)	73,372	74,132	74,982	75,936	76,468	77,245	78,110	74,982	78,110
Postpaid other customers (1)	20,153	20,954	21,330	22,116	22,804	23,365	24,075	21,330	24,075

Total postpaid customers	93,525	95,086	96,312	98,052	99,272	100,610	102,185	96,312	102,185

Prepaid customers (2)	21,392	21,516	21,595	21,648	21,600	25,283	25,307	21,595	25,307

Total customers	114,917	116,602	117,907	119,700	120,872	125,893	127,492	117,907	127,492





Adjustments to customers (1) (2)	—	—	—	170	—	3,504	—	—	3,504

(1)In the fourth quarter of 2023, we recognized an additional base adjustment to increase postpaid phone customers by 20,000 and increase postpaid other customers by 150,000 due to fewer customers than expected whose service was deactivated as a result of the network shutdowns.

(2)In the second quarter of 2024, we acquired 3,504,000 prepaid customers through our acquisition of Ka’ena, which includes the impact of certain base adjustments to align the policies of Ka’ena and T-Mobile.


	Quarter							Nine Months Ended September 30,
(in thousands)	Q1 2023	Q2 2023	Q3 2023	Q4 2023	Q1 2024	Q2 2024	Q3 2024	2023	2024
Net customer additions (losses)

Postpaid phone customers	538	760	850	934	532	777	865	2,148	2,174
Postpaid other customers	755	801	376	636	688	561	710	1,932	1,959

Total postpaid customers	1,293	1,561	1,226	1,570	1,220	1,338	1,575	4,080	4,133

Prepaid customers	26	124	79	53	(48)	179	24	229	155

Total net customer additions	1,319	1,685	1,305	1,623	1,172	1,517	1,599	4,309	4,288

Migrations from prepaid to postpaid plans	145	140	155	170	145	140	175	440	460


	Quarter														Nine Months Ended September 30,
	Q1 2023		Q2 2023		Q3 2023		Q4 2023		Q1 2024		Q2 2024		Q3 2024		2023		2024
Churn
Postpaid phone churn	0.89	%	0.77	%	0.87	%	0.96	%	0.86	%	0.80	%	0.86	%	0.84	%	0.84	%
Prepaid churn	2.76	%	2.62	%	2.81	%	2.86	%	2.75	%	2.54	%	2.78	%	2.73	%	2.69	%


	Quarter														Nine Months Ended September 30,
	Q1 2023		Q2 2023		Q3 2023		Q4 2023		Q1 2024		Q2 2024		Q3 2024		2023		2024
Postpaid upgrade rate
Postpaid device upgrade rate	3.2	%	2.6	%	2.7	%	3.2	%	2.4	%	2.3	%	2.6	%	8.5	%	7.5	%


			21

T-Mobile US, Inc.

Supplementary Operating and Financial Data

(Unaudited)


	Quarter							Nine Months Ended September 30,
(in thousands)	Q1 2023	Q2 2023	Q3 2023	Q4 2023	Q1 2024	Q2 2024	Q3 2024	2023	2024
Accounts, end of period
Total postpaid customer accounts	28,813	29,112	29,498	29,797	30,015	30,316	30,631	29,498	30,631


	Quarter							Nine Months Ended September 30,
(in thousands)	Q1 2023	Q2 2023	Q3 2023	Q4 2023	Q1 2024	Q2 2024	Q3 2024	2023	2024
Net account additions
Postpaid net account additions	287	299	386	299	218	301	315	972	834


	Quarter							Nine Months Ended September 30,
(in thousands)	Q1 2023	Q2 2023	Q3 2023	Q4 2023	Q1 2024	Q2 2024	Q3 2024	2023	2024
High speed internet customers, end of period
Postpaid high speed internet customers	2,855	3,302	3,807	4,288	4,634	4,992	5,377	3,807	5,377
Prepaid high speed internet customers	314	376	428	488	547	595	625	428	625
Total high speed internet customers, end of period	3,169	3,678	4,235	4,776	5,181	5,587	6,002	4,235	6,002


	Quarter							Nine Months Ended September 30,
(in thousands)	Q1 2023	Q2 2023	Q3 2023	Q4 2023	Q1 2024	Q2 2024	Q3 2024	2023	2024
High speed internet - net customer additions
Postpaid high speed internet customers	445	447	505	481	346	358	385	1,397	1,089
Prepaid high speed internet customers	78	62	52	60	59	48	30	192	137
Total high speed internet net customer additions	523	509	557	541	405	406	415	1,589	1,226


	Quarter														Nine Months Ended September 30,
(in millions)	Q1 2023		Q2 2023		Q3 2023		Q4 2023		Q1 2024		Q2 2024		Q3 2024		2023		2024
Device financing - equipment installment plans
Gross EIP financed	$	3,335	$	2,858	$	3,116	$	4,275	$	3,218	$	3,037	$	3,304	$	9,309	$	9,559
EIP billings	3,871		3,732		3,622		3,829		3,880		3,604		3,423		11,225		10,907
EIP receivables, net	7,262		6,745		6,349		6,498		5,967		5,556		5,347		6,349		5,347



Device financing - leased devices
Lease revenues	$	147	$	69	$	53	$	43	$	35	$	26	$	21	$	269	$	82
Leased device depreciation	58		46		37		29		22		15		11		141		48


	Quarter														Nine Months Ended September 30,
(in dollars)	Q1 2023		Q2 2023		Q3 2023		Q4 2023		Q1 2024		Q2 2024		Q3 2024		2023		2024
Operating measures
Postpaid ARPA	$	138.04	$	138.94	$	139.83	$	140.23	$	140.88	$	142.54	$	145.60	$	138.94	$	143.02
Postpaid phone ARPU	48.63		48.84		48.93		48.91		48.79		49.07		49.79		48.80		49.22
Prepaid ARPU	37.98		37.98		38.18		37.55		37.18		35.94		35.81		38.05		36.27


			22

T-Mobile US, Inc.

Supplementary Operating and Financial Data (continued)

(Unaudited)


	Quarter																					Nine Months Ended September 30,
(in millions, except percentages)	Q1 2023			Q2 2023			Q3 2023			Q4 2023			Q1 2024			Q2 2024			Q3 2024			2023			2024
Financial measures

Service revenues	$	15,546		$	15,738		$	15,914		$	16,043		$	16,096		$	16,429		$	16,725		$	47,198		$	49,250

Equipment revenues	$	3,719		$	3,169		$	3,076		$	4,174		$	3,251		$	3,106		$	3,207		$	9,964		$	9,564
Lease revenues	147			69			53			43			35			26			21			269			82
Equipment sales	$	3,572		$	3,100		$	3,023		$	4,131		$	3,216		$	3,080		$	3,186		$	9,695		$	9,482

Total revenues	$	19,632		$	19,196		$	19,252		$	20,478		$	19,594		$	19,772		$	20,162		$	58,080		$	59,528

Net income	$	1,940		$	2,221		$	2,142		$	2,014		$	2,374		$	2,925		$	3,059		$	6,303		$	8,358
Net income margin	12.5		%	14.1		%	13.5		%	12.6		%	14.7		%	17.8		%	18.3		%	13.4		%	17.0		%

Adjusted EBITDA	$	7,199		$	7,405		$	7,600		$	7,224		$	7,652		$	8,053		$	8,243		$	22,204		$	23,948
Adjusted EBITDA margin	46.3		%	47.1		%	47.8		%	45.0		%	47.5		%	49.0		%	49.3		%	47.0		%	48.6		%
Core Adjusted EBITDA	$	7,052		$	7,336		$	7,547		$	7,181		$	7,617		$	8,027		$	8,222		$	21,935		$	23,866
Core Adjusted EBITDA margin	45.4		%	46.6		%	47.4		%	44.8		%	47.3		%	48.9		%	49.2		%	46.5		%	48.5		%

Cost of services, exclusive of depreciation and amortization	$	3,061		$	2,916		$	2,886		$	2,792		$	2,688		$	2,664		$	2,722		$	8,863		$	8,074
Merger-related costs	208			178			120			146			107			73			—			506			180
Other Special Items	23			18			154			—			1			—			67			195			68

Cost of services, excluding depreciation and amortization and Special Items	$	2,830		$	2,720		$	2,612		$	2,646		$	2,580		$	2,591		$	2,655		$	8,162		$	7,826

Cost of equipment sales, exclusive of depreciation and amortization	$	4,588		$	4,088		$	4,249		$	5,608		$	4,399		$	4,088		$	4,307		$	12,925		$	12,794
Merger-related recoveries	(9)			—			(3)			—			—			—			—			(12)			—

Cost of equipment sales, excluding depreciation and amortization and Special Items	$	4,597		$	4,088		$	4,252		$	5,608		$	4,399		$	4,088		$	4,307		$	12,937		$	12,794

Selling, general and administrative	$	5,425		$	5,272		$	5,334		$	5,280		$	5,138		$	5,142		$	5,186		$	16,031		$	15,466
Merger-related costs (gain), net	159			98			35			102			23			(82)			—			292			(59)
Other Special Items	87			36			359			14			12			37			86			482			135

Selling, general and administrative, excluding Special Items	$	5,179		$	5,138		$	4,940		$	5,164		$	5,103		$	5,187		$	5,100		$	15,257		$	15,390

Total bad debt expense and losses from sales of receivables	$	260		$	264		$	274		$	265		$	303		$	280		$	322		$	798		$	905
Bad debt and losses from sales of receivables as a percentage of Total revenues	1.3		%	1.4		%	1.4		%	1.3		%	1.5		%	1.4		%	1.6		%	1.4		%	1.5		%

Cash purchases of property and equipment including capitalized interest	$	3,001		$	2,789		$	2,424		$	1,587		$	2,627		$	2,040		$	1,961		$	8,214		$	6,628
Capitalized interest	14			14			66			10			9			8			9			94			26

Net cash proceeds from securitization	$	(29)		$	(31)		$	(33)		$	(21)		$	(29)		$	(30)		$	(29)		$	(93)		$	(88)

Net cash payments for Merger-related costs	$	484		$	728		$	345		$	416		$	293		$	241		$	124		$	1,557		$	658


	Quarter														Nine Months Ended September 30,
(in millions, except share and per share amounts)	Q1 2023		Q2 2023		Q3 2023		Q4 2023		Q1 2024		Q2 2024		Q3 2024		2023		2024
Stockholder returns
Total repurchases	$	4,766	$	3,525	$	2,675	$	2,241	$	3,568	$	2,277	$	644	$	10,966	$	6,489
Total shares repurchased	32,963,940		25,183,838		19,313,159		15,464,107		21,933,790		13,979,843		3,179,707		77,460,937		39,093,340
Average purchase price per share	$	144.57	$	140.00	$	138.48	$	144.95	$	162.69	$	162.85	$	202.45	$	141.57	$	165.98
Total dividends paid	$	—	$	—	$	—	$	747	$	769	$	759	$	758	$	—	$	2,286
Dividends per share	$	—	$	—	$	—	$	0.65	$	0.65	$	0.65	$	0.65	$	—	$	1.95
Total stockholder returns	$	4,766	$	3,525	$	2,675	$	2,988	$	4,337	$	3,036	$	1,402	$	10,966	$	8,775
Cumulative total repurchases	$	7,766	$	11,291	$	13,966	$	16,207	$	19,775	$	22,052	$	22,696	$	13,966	$	22,696
Cumulative shares repurchased	54,325,349		79,509,187		98,822,346		114,286,453		136,220,243		150,200,086		153,379,793		98,822,346		153,379,793
Cumulative stockholder returns	$	7,766	$	11,291	$	13,966	$	16,954	$	21,291	$	24,327	$	25,729	$	13,966	$	25,729


			23

T-Mobile US, Inc.

Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures

(Unaudited)

This Investor Factbook includes non-GAAP financial measures. The non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information provided in accordance with GAAP. Reconciliations for the non-GAAP financial measures to the most directly comparable GAAP financial measures are provided below. T-Mobile is not able to forecast Net income on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting certain items that affect GAAP net income, including, but not limited to, Income tax expense and Interest expense. Adjusted EBITDA and Core Adjusted EBITDA should not be used to predict Net income, as the difference between either of these measures and Net income is variable.

Adjusted EBITDA and Core Adjusted EBITDA are reconciled to Net income as follows:


	Quarter																					Nine Months Ended September 30,
(in millions, except percentages)	Q1 2023			Q2 2023			Q3 2023			Q4 2023			Q1 2024			Q2 2024			Q3 2024			2023			2024
Net income	$	1,940		$	2,221		$	2,142		$	2,014		$	2,374		$	2,925		$	3,059		$	6,303		$	8,358
Adjustments:


Interest expense, net	835			861			790			849			880			854			836			2,486			2,570


Other (income) expense, net	(9)			(6)			(41)			(12)			(20)			8			(7)			(56)			(19)
Income tax expense	631			717			705			629			764			843			908			2,053			2,515

Operating income	3,397			3,793			3,596			3,480			3,998			4,630			4,796			10,786			13,424
Depreciation and amortization	3,203			3,110			3,187			3,318			3,371			3,248			3,151			9,500			9,770

Stock-based compensation (1)	173			155			152			164			140			147			143			480			430
Merger-related costs (gain), net (2)	358			276			152			248			130			(9)			—			786			121


Legal-related (recoveries) expenses, net (3)	(43)			—			—			1			—			15			1			(43)			16
(Gain) loss on disposal group held for sale	(42)			17			—			—			—			—			—			(25)			—
Other, net (4)	153			54			513			13			13			22			152			720			187

Adjusted EBITDA	7,199			7,405			7,600			7,224			7,652			8,053			8,243			22,204			23,948
Lease revenues	(147)			(69)			(53)			(43)			(35)			(26)			(21)			(269)			(82)
Core Adjusted EBITDA	$	7,052		$	7,336		$	7,547		$	7,181		$	7,617		$	8,027		$	8,222		$	21,935		$	23,866
Net income margin (Net income divided by Service revenues)	12.5		%	14.1		%	13.5		%	12.6		%	14.7		%	17.8		%	18.3		%	13.4		%	17.0		%
Adjusted EBITDA margin (Adjusted EBITDA divided by Service revenues)	46.3		%	47.1		%	47.8		%	45.0		%	47.5		%	49.0		%	49.3		%	47.0		%	48.6		%
Core Adjusted EBITDA margin (Core Adjusted EBITDA divided by Service revenues)	45.4		%	46.6		%	47.4		%	44.8		%	47.3		%	48.9		%	49.2		%	46.5		%	48.5		%

(1)Stock-based compensation includes payroll tax impacts and may not agree to stock-based compensation expense on the Condensed Consolidated Financial Statements. Additionally, certain stock-based compensation expenses associated with the merger with Sprint Corporation (the “Merger”) have been included in Merger-related costs (gain), net.

(3)Legal-related (recoveries) expenses, net, consists of the settlement of certain litigation associated with the August 2021 cyberattack and is presented net of insurance recoveries.

(4)Other, net, primarily consists of certain severance, restructuring and other expenses, gains and losses, including severance and related costs associated with the August 2023 workforce reduction, not directly attributable to the Merger which are not reflective of T-Mobile’s core business activities and are, therefore, excluded from Adjusted EBITDA and Core Adjusted EBITDA.


			24

T-Mobile US, Inc.

Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures (continued)

(Unaudited)

Net debt (excluding tower obligations) to the LTM Net income, LTM Adjusted EBITDA and LTM Core Adjusted EBITDA ratios are calculated as follows:


(in millions, except net debt ratios)	Mar 31, 2023		Jun 30, 2023		Sep 30, 2023		Dec 31, 2023		Mar 31, 2024		Jun 30, 2024		Sep 30, 2024

Short-term debt	$	5,215	$	7,731	$	3,437	$	3,619	$	5,356	$	5,867	$	5,851

Short-term financing lease liabilities	1,180		1,220		1,286		1,260		1,265		1,252		1,252
Long-term debt	68,035		68,646		70,365		69,903		71,361		70,203		72,522
Long-term debt to affiliates	1,495		1,495		1,496		1,496		1,496		1,496		1,497
Financing lease liabilities	1,284		1,254		1,273		1,236		1,163		1,133		1,185
Less: Cash and cash equivalents	(4,540)		(6,647)		(5,030)		(5,135)		(6,708)		(6,417)		(9,754)

Net debt (excluding tower obligations)	$	72,669	$	73,699	$	72,827	$	72,379	$	73,933	$	73,534	$	72,553
Divided by: Last twelve months Net income	$	3,817	$	6,146	$	7,780	$	8,317	$	8,751	$	9,455	$	10,372
Net debt (excluding tower obligations) to LTM Net income Ratio	19.0		12.0		9.4		8.7		8.4		7.8		7.0




Divided by: Last twelve months Adjusted EBITDA	$	28,070	$	28,471	$	29,032	$	29,428	$	29,881	$	30,529	$	31,172
Net debt (excluding tower obligations) to LTM Adjusted EBITDA Ratio	2.6		2.6		2.5		2.5		2.5		2.4		2.3
Divided by: Last twelve months Core Adjusted EBITDA	$	26,980	$	27,698	$	28,517	$	29,116	$	29,681	$	30,372	$	31,047
Net debt (excluding tower obligations) to LTM Core Adjusted EBITDA Ratio	2.7		2.7		2.6		2.5		2.5		2.4		2.3

Adjusted Free Cash Flow is calculated as follows:


	Quarter																					Nine Months Ended September 30,
(in millions, except percentages)	Q1 2023			Q2 2023			Q3 2023			Q4 2023			Q1 2024			Q2 2024			Q3 2024			2023			2024

Net cash provided by operating activities	$	4,051		$	4,355		$	5,294		$	4,859		$	5,084		$	5,521		$	6,139		$	13,700		$	16,744
Cash purchases of property and equipment, including capitalized interest	(3,001)			(2,789)			(2,424)			(1,587)			(2,627)			(2,040)			(1,961)			(8,214)			(6,628)
Proceeds from sales of tower sites	6			2			2			2			—			—			—			10			—
Proceeds related to beneficial interests in securitization transactions	1,345			1,309			1,131			1,031			890			958			984			3,785			2,832



Adjusted Free Cash Flow	$	2,401		$	2,877		$	4,003		$	4,305		$	3,347		$	4,439		$	5,162		$	9,281		$	12,948
Net cash provided by operating activities margin	26.1		%	27.7		%	33.3		%	30.3		%	31.6		%	33.6		%	36.7		%	29.0		%	34.0		%
Adjusted Free Cash Flow margin	15.4		%	18.3		%	25.2		%	26.8		%	20.8		%	27.0		%	30.9		%	19.7		%	26.3		%


			25

T-Mobile US, Inc.

Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures (continued)

(Unaudited)

The current guidance range for Adjusted Free Cash Flow is calculated as follows:


	FY 2024
(in millions)	Guidance Range

Net cash provided by operating activities	$	22,000	$	22,300

Cash purchases of property and equipment, including capitalized interest	(8,800)		(9,000)
Proceeds related to beneficial interests in securitization transactions (1)	3,500		3,700


Adjusted Free Cash Flow	$	16,700	$	17,000

(1)Adjusted Free Cash Flow guidance does not assume any material net cash inflows from securitization in 2024.

The previous guidance range for Adjusted Free Cash Flow was calculated as follows:


	FY 2024
(in millions)	Guidance Range

Net cash provided by operating activities	$	21,800	$	22,200

Cash purchases of property and equipment, including capitalized interest	(8,700)		(9,100)
Proceeds related to beneficial interests in securitization transactions (1)	3,500		3,900


Adjusted Free Cash Flow	$	16,600	$	17,000

(1)Adjusted Free Cash Flow guidance does not assume any material net cash inflows from securitization in 2024.


			26

Definitions of Terms

Operating and financial measures are utilized by T-Mobile’s management to evaluate its operating performance and, in certain cases, its ability to meet liquidity requirements. Although companies in the wireless industry may not define measures in precisely the same way, T-Mobile believes the measures facilitate key operating performance comparisons with other companies in the wireless industry to provide management, investors and analysts with useful information to assess and evaluate past performance and assist in forecasting future performance.

1.Account - A billing account number that generates revenue. Postpaid accounts generally consist of customers that are qualified for postpaid service utilizing phones, High Speed Internet modems, mobile internet devices, including tablets and hotspots, wearables, DIGITS or other connected devices, including SyncUP and IoT, where they generally pay after receiving service.

2.Customer - A SIM number with a unique T-Mobile identifier which is associated with an account that generates revenue. Customers are qualified either for postpaid service utilizing phones, High Speed Internet modems, mobile internet devices, including tablets and hotspots, wearables, DIGITS or other connected devices, including SyncUP and IoT, where they generally pay after receiving service, or prepaid service, where they generally pay in advance of receiving service.

3.Churn - The number of customers whose service was deactivated as a percentage of the average number of customers during the specified period further divided by the number of months in the period. The number of customers whose service was deactivated is presented net of customers that subsequently have their service restored within a certain period of time and excludes customers who received service for less than a certain minimum period of time.

4.Postpaid Average Revenue Per Account (Postpaid ARPA) - Average monthly postpaid service revenue earned per account. Postpaid service revenues for the specified period divided by the average number of postpaid accounts during the period, further divided by the number of months in the period.

Postpaid phone ARPU excludes postpaid other customers and related revenues.

Service revenues - Postpaid, including handset insurance, prepaid, wholesale and other service revenues.

5.Cost of services - Costs directly attributable to providing wireless service through the operation of T-Mobile’s network, including direct switch and cell site costs, such as rent, network access and transport costs, utilities, maintenance, associated labor costs, long distance costs, regulatory program costs, roaming fees paid to other carriers and data content costs.

Cost of equipment sales - Costs of devices and accessories sold to customers and dealers, device costs to fulfill insurance and warranty claims, write-downs of inventory related to shrinkage and obsolescence, and shipping and handling costs.

Selling, general and administrative expenses - Costs not directly attributable to providing wireless service for the operation of sales, customer care and corporate activities. These include all commissions paid to dealers and retail employees for activations and upgrades, labor and facilities costs associated with retail sales force and administrative space, marketing and promotional costs, customer support and billing, bad debt expense and administrative support activities.

6.Net income margin - Net income divided by Service revenues.

7.Adjusted EBITDA and Core Adjusted EBITDA - Adjusted EBITDA represents earnings before Interest expense, net of Interest income, Income tax expense, Depreciation and amortization, stock-based compensation and Special Items. Core Adjusted EBITDA represents Adjusted EBITDA less device lease revenues. Core Adjusted EBITDA and Adjusted EBITDA are non-GAAP financial measures utilized by T-Mobile’s management to monitor the financial performance of our operations. T-Mobile historically used Adjusted EBITDA and T-Mobile currently uses Core Adjusted EBITDA internally as a measure to evaluate and compensate its personnel and management for their performance. T-Mobile uses Adjusted EBITDA and Core Adjusted EBITDA as benchmarks to evaluate its operating performance in comparison to competitors. Management believes analysts and investors use Core Adjusted EBITDA and Adjusted EBITDA as supplemental measures to evaluate overall operating performance and to facilitate comparisons with other wireless communications services companies because they are indicative of T-Mobile’s ongoing operating performance and trends by excluding the impact of Interest expense from financing, non-cash depreciation and amortization from capital investments, non-cash stock-based compensation and Special Items. Management believes analysts and investors use Core Adjusted EBITDA because it normalizes for the transition in the company’s device financing strategy, by excluding the impact of device lease revenues from Adjusted EBITDA, to align with the related depreciation expense on leased devices, which is excluded from the definition of Adjusted EBITDA. Core Adjusted EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as a substitute for Income from operations, Net income or any other measure of financial performance reported in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”).

8.Special Items - Certain expenses, gains, and losses which are not reflective of our ongoing performance. Special Items include Merger-related costs (gain), net, (Gain) loss on disposal groups held for sale, certain legal-related recoveries and expenses, restructuring costs not directly attributable to the Merger (including severance), and other non-core gains and losses.

9.Adjusted EBITDA margin and Core Adjusted EBITDA margin - Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Service revenues. Core Adjusted EBITDA margin is calculated as Core Adjusted EBITDA divided by Service revenues. Adjusted EBITDA margin and Core Adjusted EBITDA margin are non-GAAP financial measures utilized by T-Mobile’s management to monitor the financial performance of our operations.

10.Net cash provided by operating activities margin - Net cash provided by operating activities margin is calculated as Net cash provided by operating activities divided by Service revenues.

11.Adjusted Free Cash Flow - Net cash provided by operating activities less cash payments for purchases of property and equipment, plus proceeds from sales of tower sites and proceeds related to beneficial interests in securitization transactions and less Cash payments for debt prepayment or debt extinguishment costs. Adjusted Free Cash Flow is utilized by T-Mobile’s management, investors, and analysts of our financial information to evaluate cash available to pay debt, repurchase shares, pay dividends and provide further investment in the business.

12.Adjusted Free Cash Flow margin - Adjusted Free Cash Flow margin is calculated as Adjusted Free Cash Flow divided by Service revenues. Adjusted Free Cash Flow Margin is utilized by T-Mobile’s management, investors, and analysts to evaluate the company’s ability to convert service revenue efficiently into cash available to pay debt, repurchase shares, pay dividends and provide further investment in the business.


			27

13.Net debt - Short-term debt, short-term debt to affiliates, long-term debt (excluding tower obligations), and long-term debt to affiliates, short-term financing lease liabilities and financing lease liabilities, less cash and cash equivalents.

14.Merger-related costs include:

•Integration costs to achieve efficiencies in network, retail, information technology and back office operations, migrate customers to the T-Mobile network and billing systems and the impact of legal matters assumed as part of the Merger;

•Restructuring costs, including severance, store rationalization and network decommissioning; and

•Transaction costs, including legal and professional services related to the completion of the Merger and the acquisitions of affiliates.


			28

Cautionary Statement Regarding Forward-Looking Statements

This communication includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including information concerning T-Mobile US, Inc.’s future results of operations, are forward-looking statements. These forward-looking statements are generally identified by the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “could” or similar expressions. Forward-looking statements are based on current expectations and assumptions, which are subject to risks and uncertainties and may cause actual results to differ materially from the forward-looking statements. Important factors that could affect future results and cause those results to differ materially from those expressed in the forward-looking statements include, among others, the following: competition, industry consolidation and changes in the market for wireless communications services and other forms of connectivity; criminal cyberattacks, disruption, data loss or other security breaches; our inability to take advantage of technological developments on a timely basis; our inability to retain or motivate key personnel, hire qualified personnel or maintain our corporate culture; system failures and business disruptions, allowing for unauthorized use of or interference with our network and other systems; the scarcity and cost of additional wireless spectrum, and regulations relating to spectrum use; the impacts of the actions we have taken and conditions we have agreed to in connection with the regulatory proceedings and approvals of the Transactions (as defined below), including the acquisition by DISH Network Corporation (“DISH”) of the prepaid wireless business operated under the Boost Mobile and Sprint prepaid brands (excluding the Assurance brand Lifeline customers and the prepaid wireless customers of Shenandoah Personal Communications Company LLC and Swiftel Communications, Inc.), including customer accounts, inventory, contracts, intellectual property and certain other specified assets, and the assumption of certain related liabilities (collectively, the “Prepaid Transaction”), the complaint and proposed final judgment agreed to by us, Deutsche Telekom AG (“DT”), Sprint Corporation, now known as Sprint LLC (“Sprint”), SoftBank Group Corp. (“SoftBank”) and DISH with the U.S. District Court for the District of Columbia, which was approved by the Court on April 1, 2020, the proposed commitments filed with the Secretary of the Federal Communications Commission (“FCC”), which we announced on May 20, 2019, certain national security commitments and undertakings, and any other commitments or undertakings entered into, including, but not limited to, those we have made to certain states and nongovernmental organizations (collectively, the “Government Commitments”), and the challenges in satisfying the Government Commitments in the required time frames and the significant cumulative costs incurred in tracking and monitoring compliance over multiple years; adverse economic, political or market conditions in the U.S. and international markets, including changes resulting from increases in inflation or interest rates, supply chain disruptions and impacts of geopolitical instability, such as the Ukraine-Russia war and Israel-Hamas war; sociopolitical volatility and polarization; our inability to manage the ongoing commercial services arrangements entered into in connection with the Prepaid Transaction, and known or unknown liabilities arising in connection therewith; the timing and effects of any future acquisition, divestiture, investment, or merger involving us, including our inability to obtain any required regulatory approval necessary to consummate any such transactions; any disruption or failure of our third parties (including key suppliers) to provide products or services for the operation of our business; our substantial level of indebtedness and our inability to service our debt obligations in accordance with their terms; changes in the credit market conditions, credit rating downgrades or an inability to access debt markets; the risk of future material weaknesses we may identify, or any other failure by us to maintain effective internal controls, and the resulting significant costs and reputational damage; any changes in regulations or in the regulatory framework under which we operate; laws and regulations relating to the handling of privacy and data protection; unfavorable outcomes of and increased costs from existing or future regulatory or legal proceedings; difficulties in protecting our intellectual property rights or if we infringe on the intellectual property rights of others; our offering of regulated financial services products and exposure to a wide variety of state and federal regulations; new or amended tax laws or regulations or administrative interpretations and judicial decisions affecting the scope or application of tax laws or regulations; our wireless licenses, including those controlled through leasing agreements, are subject to renewal and may be revoked; our exclusive forum provision as provided in our Certificate of Incorporation; interests of DT, our controlling stockholder, which may differ from the interests of other stockholders; the dollar amount authorized for our 2023-2024 Stockholder Return Program may not be fully utilized, and our share repurchases and dividend payments pursuant thereto may fail to have the desired impact on stockholder value; future sales of our common stock by DT and SoftBank and our inability to attract additional equity financing outside the United States due to foreign ownership limitations by the FCC; and other risks as disclosed in our most recent annual report on Form 10-K, 10-Q and other filings with the Securities and Exchange Commission. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward- looking statements. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law.

About T-Mobile US, Inc.

Cover Page	Oct. 23, 2024
Cover [Abstract]
Document Type	8-K
Document Period End Date	Oct. 23, 2024
Entity Registrant Name	T-MOBILE US, INC.
Entity Incorporation, State or Country Code	DE
Entity File Number	1-33409
Entity Tax Identification Number	20-0836269
Entity Address, Address Line One	12920 SE 38th Street
Entity Address, City or Town	Bellevue
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98006-1350
City Area Code	425
Local Phone Number	378-4000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Entity Central Index Key	0001283699
Amendment Flag	false
Common Stock, Par Value $0.00001 Per Share
Cover [Abstract]
Title of 12(b) Security	Common Stock, par value $0.00001 per share
Trading Symbol	TMUS
Security Exchange Name	NASDAQ
Entity Listings [Line Items]
Title of 12(b) Security	Common Stock, par value $0.00001 per share
Trading Symbol	TMUS
Security Exchange Name	NASDAQ
3.550% Senior Notes Due 2029
Cover [Abstract]
Title of 12(b) Security	3.550% Senior Notes due 2029
Trading Symbol	TMUS29
Security Exchange Name	NASDAQ
Entity Listings [Line Items]
Title of 12(b) Security	3.550% Senior Notes due 2029
Trading Symbol	TMUS29
Security Exchange Name	NASDAQ
3.700% Senior Notes Due 2032
Cover [Abstract]
Title of 12(b) Security	3.700% Senior Notes due 2032
Trading Symbol	TMUS32
Security Exchange Name	NASDAQ
Entity Listings [Line Items]
Title of 12(b) Security	3.700% Senior Notes due 2032
Trading Symbol	TMUS32
Security Exchange Name	NASDAQ
3.850% Senior Notes Due 2036
Cover [Abstract]
Title of 12(b) Security	3.850% Senior Notes due 2036
Trading Symbol	TMUS36
Security Exchange Name	NASDAQ
Entity Listings [Line Items]
Title of 12(b) Security	3.850% Senior Notes due 2036
Trading Symbol	TMUS36
Security Exchange Name	NASDAQ