T-Mobile Raises Guidance; Sees FY25 Total Postpaid Net Customer Additions 7.2M-7.4M

T-Mobile US, Inc. -2.75% Post

T-Mobile US, Inc.

TMUS

204.25

204.36

-2.75%

+0.05% Post

Raising 2025 Customer and Financial Guidance

  • Total postpaid net customer additions are expected to be between 7.2 million and 7.4 million, an increase from prior guidance of 6.1 million to 6.4 million, including approximately 3.3 million postpaid phone net customer additions, an increase from prior guidance of 2.95 million to 3.10 million and approximately 130 thousand fiber net customers additions, an increase from prior guidance of 100 thousand.
  • Core Adjusted EBITDA, which is Adjusted EBITDA less lease revenues, is expected to be between $33.7 billion and $33.9 billion, an increase from prior guidance of $33.3 billion to $33.7 billion.
  • Net cash provided by operating activities, including payments for Sprint merger-related costs and UScellular merger-related costs ("Merger-related costs"), is expected to be between $27.8 billion and $28.0 billion, an increase at the midpoint from prior guidance of $27.1 billion to $27.5 billion.
  • Cash purchases of property and equipment, including capitalized interest, are expected to be approximately $10.0 billion, an increase from prior guidance of $500 million.
  • Adjusted Free Cash Flow, including payments for Merger-related costs, is expected to be between $17.8 billion and $18.0 billion, an increase at the midpoint from prior guidance of $17.6 billion to $18.0 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) 6,100   6,400   7,200   7,400   1,050
Net income (1) N/A   N/A   N/A   N/A   N/A
Effective tax rate 24%   26%   23%   24%   (150) bps
Core Adjusted EBITDA (2) $33,300   $33,700   $33,700   $33,900   $300
Net cash provided by operating activities 27,100   27,500   27,800   28,000   600
Capital expenditures (3) ~9,500   ~10,000   500
Adjusted Free Cash Flow 17,600   18,000   17,800   18,000   100
(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.
(3) Capital expenditures means cash purchases of property and equipment, including capitalized interest.
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