T-Mobile US Inc Q2 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: John Hodulik - UBS AG - Analyst : Great. Thank you guys. And two, if I may first, you guys saw strong sub growth in the quarter, despite slightly higher churn. Could you just give us an idea, Mike, about what you're seeing in the market today? How do you expect churn to sort of trend in the second half and what you're seeing just from a competitive standpoint. And then, number two, thanks for the disclosure on the fiber side. 100,000 for the year. Can you give us a little more color on that? Is that sort of 50,000 run rate for the next two quarters, or is that -- does that include some that we saw here in the second quarter? And, just any other color you can give us on the sort of growth of that business either today or over time and do you anticipate other opportunities for some inorganic growth in that business? Thanks.

Question: Benjamin Swinburne - Morgan Stanley - Analyst : Thank you. Good afternoon. Just reflecting back on your Capital Markets Day last September to now, one metric that really jumps out is the ARPA growth. I think you talked about 2% growth or 2%-plus last year over the kind of the three year planning period. You're up almost 5% year-to-date. Could you guys unpack a little bit of the drivers there and whether you're more optimistic about growth in that line and service revenue over the course of the next couple of years just given the strength that you've seen? And then like I didn't think of you having doing a deal with the cable operators as a possible outcome on this call. I wanted to ask if you could spend a little more time on your strategy there and why you think it makes sense for T-Mobile and what the opportunity is long term around partnering with that industry going forward.

Question: Benjamin Swinburne - Morgan Stanley - Analyst : Thanks so much.

Question: Samuel McHugh - Exane Bnp Paribas - Analyst : Hey, afternoon guys. You talks about only 20% of switches perceiving teams as having the best network, and I guess that's increased over time, but what do you think you need to do to improve that? Is it leaning on advertising? What can shift it up even further? And then secondly on the Cable [MBO] just to clarify, so they restricted from selling to certain subsets of the enterprise community, then they can't sell to the super large enterprise. Is that the right reason? Thank you very much. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Craig Moffett - Moffettnathanson LLC - Analyst : Hi. Mike, you just talked about a moment ago, T-Satellite. I wonder if you could just dig into that a little bit, and the contribution that it had to your ARPU growth and -- but also how it sort of changes the way you think about serving rural markets and customer segments. It sounds like it surprised even you with the kind of impact that it had on the market.

Question: Craig Moffett - Moffettnathanson LLC - Analyst : Just based on what you learned in the beta period, does it change your thinking about the way you deploy your network assets in very rural areas?

Question: Jonathan Chaplin - New Street Research LLP - Analyst : Okay, thank you. So Mike, I'm wondering if you can give us an update on how many locations you pass in the Metronet and Lumos markets at the moment and what penetration is on those assets. And then one tiny housekeeping question, I don't think you told us in the past what the cash tax expectation for '26 was, so I'm wondering what it is now that you get the $1.5 billion benefit in '26. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Gregory Williams - TD Cowen - Analyst : Great, thanks for taking my questions. First one is on your rural market share. A few years back on your Analyst Day, you noted a goal of reaching 20%, I believe, of the smaller markets. I think it was right around by 2025. Here we are in 2025, I'm curious what your market share is now and if it's reached that 20% where it could go and if USCellular changes that calculus as well? Second question is just on the $1.5 billion benefit from the tax release bill. You said you deploy the capital thoughtfully so I was wondering if you can add more color to those words thoughtfully whether we think about M&A buybacks or network investment? Thanks.

Question: Michael Rollins - Citigroup - Analyst : Thanks and good afternoon. A couple of questions on 5G broadband and FWA. First, just curious what you're seeing that's driving the ongoing momentum in that volume. How much of that quarterly volume may be benefiting from greater breadth of coverage versus deeper penetration in some of the existing markets? And then secondly, are you seeing evidence that FWA may move from a fallow capacity model to one which you can invest in specific capacity enhancements for additional growth and returns over time? Thanks.

Question: Kutgun Maral - Evercore ISI - Analyst : Great, thank you. I have one high-level question. Going back to the 2021 Analyst Day and for maybe a few years afterwards. Part of the narrative was that you were increasingly mindful of T-Mobile's role evolving from being an insurgent to more of a steward of the industry. And while you'd continue to push for competitive pressure and execute as on carrier, perhaps there would be a greater consideration of not only your leadership position in the space but also the merits of helping to ensure it remains a profitable and an attractive one. Maybe fast forward to today, competition isn't new, but the offers in the marketplace keep getting more and more aggressive and some of your peers are perhaps acting more and more on carrier-like. So with all that context, can you update us on where you view T-Mobile as being on the insurgent versus steward spectrum? And I guess, ultimately, how much more runway is there to be as disruptive without the tilt in competitive postures disrupting the balance for the broader industry? Thank you.

Question: Kutgun Maral - Evercore ISI - Analyst : Very helpful. Thanks.

Question: Kannan Venkateshwar - Barclays Services Corp - Analyst : Thank you. Mike, maybe just one question on the build ambitions for broadband. When you think about fixed wireless, obviously, all your peers offer it. But when you think about the wireline side of it, your peers have between $40 million to $70 million kind of build ambitions or existing scale if you think about the Cable companies in that mix. So when you think about your goals of $15 million-ish in wireline, why is that enough? And I know you want to look at more fiber opportunities. But given your -- the scale of your peers, would this call for maybe consideration of some bigger transactions or bigger opportunities to scale up your network faster than you would otherwise. Thank you.