T-Mobile (TMUS) delivered a record-setting performance in Q2 2025, driven by strong customer momentum and robust financial results. Total revenue rose 7% year-over-year to $21.1 billion, marking a new quarterly high. This growth was fueled primarily by a 9% increase in postpaid service revenue, which reached $14.1 billion, alongside a 6% rise in total service revenue to $17.4 billion. Notably, postpaid phone ARPU climbed 3% to $50.62, supported by rate plan optimization and increased premium service adoption. Meanwhile, equipment revenue jumped 11% to $3.4 billion, reflecting higher device sales.

T-Mobile posted record-high net income of $3.2 billion, up 10% year-over-year, and delivered its highest-ever Q2 diluted EPS of $2.84, a 14% improvement. Profitability remained strong, with Core Adjusted EBITDA up 6% to $8.5 billion, and Adjusted Free Cash Flow hitting a Q2 record of $4.6 billion, up 4%. Operating cash flow surged 27% to $7.0 billion, highlighting the company’s efficient cost structure and growing customer base.

Customer growth continued to set the pace for the industry. T-Mobile reported its best-ever Q2 postpaid net customer additions of 1.7 million, including 830,000 postpaid phone net adds and 318,000 new postpaid accounts, a 6% increase. 5G broadband also saw strong traction, with 454,000 net additions, up 12% from the prior year. This growth helped offset a 24% decline in wholesale and other service revenue, which fell to $717 million, largely due to softness in MVNO and Affordable Connectivity Program contributions.

Despite some pressure on prepaid ARPU, which declined 4% to $34.63, overall service revenue trends remained positive. Management credited performance to a combination of network leadership, strong value proposition, and continued adoption of premium offerings. CEO Mike Sievert emphasized the company’s “durable advantages,” calling out record customer additions and the industry's strongest service revenue growth.

Looking ahead, T-Mobile raised its full-year 2025 guidance, now expecting 6.1 to 6.4 million postpaid net additions (up from 5.5 to 6.0 million), Core Adjusted EBITDA of $33.3 to $33.7 billion, and Adjusted Free Cash Flow of $17.6 to $18.0 billion. Capital expenditures are unchanged at approximately $9.5 billion. The outlook includes the Metronet acquisition but excludes the pending UScellular deal.

Overall, Q2 2025 reinforced T-Mobile’s momentum, as its industry-leading customer growth and efficient execution translated into record financial results, setting a solid foundation for continued outperformance through the rest of the year.