TMUS Reports Q3 2025 Revenue of $21.96 Billion, Exceeding Analyst Estimates, with EPS of $2.42

T-Mobile US, Inc. (TMUS.US) announced its financial results for Q3 2025, reporting total revenues of $21.96 billion. This figure surpassed analyst estimates of $21.98 billion. The company’s diluted earnings per share (EPS) for the quarter stood at $2.41, aligning with analyst expectations of $2.42.

Revenue Growth Driven by Postpaid Segment

T-Mobile's total revenues increased by 9% for the three months ended September 30, 2025, reaching $21.96 billion, compared to $20.16 billion in the same period last year. This growth was primarily fueled by a 12% rise in postpaid revenues, which reached $14.88 billion, reflecting higher average postpaid accounts and an increase in postpaid Average Revenue Per Account (ARPA).

Equipment revenues also contributed to the overall revenue increase, growing by 8% to $3.47 billion. This was driven by a higher volume of device sales, partly due to increased postpaid upgrades and the acquisition of UScellular Wireless Business. The average revenue per device sold also saw an uptick, primarily due to a shift towards higher-end phone models.

Strategic Acquisitions Bolster Growth

The company's financial performance was significantly impacted by several strategic acquisitions. The acquisition of UScellular Wireless Business, completed on August 1, 2025, led to an increase in postpaid accounts and higher costs of services and equipment sales. Similarly, the joint acquisitions of Metronet and Lumos in Q3 2025 and Q2 2025, respectively, contributed to higher postpaid account additions and associated wholesale network access costs.

The Ka'ena Acquisition, completed on May 1, 2024, also influenced prepaid revenues, which saw a 3% decrease in Q3 2025 primarily due to lower Prepaid ARPU, but a 3% increase for the nine months ended September 30, 2025, driven by higher average prepaid customers.

Operational Costs and Impairment Charges

Total operating expenses rose by 13% to $17.43 billion for the three months ended September 30, 2025. This increase was driven by higher costs of equipment sales, selling, general, and administrative expenses, and a notable impairment charge. Cost of equipment sales increased by 13%, largely due to higher device sales volume and the increased cost per device.

Selling, general and administrative expenses grew by 16%, reflecting higher personnel-related costs, including those from the UScellular Acquisition, and increased advertising expenses. The company also recorded a non-cash impairment expense of $278 million related to capitalized software development costs for its billing system, contributing to a 6% decrease in operating income for the quarter.