T-Mobile US, Inc. 5.5 % Notes 2025-01.03.70

Q3 performance: strong “volume + value” execution (good) - Led the industry in postpaid phone net adds and 5G broadband net adds, driving 274,000 postpaid net account additions. - Postpaid ARPA grew 4% YoY (and 5G broadband ARPU grew YoY + sequentially). - Financial growth: Postpaid service revenue +9% YoY, total service revenue +6% YoY, core adjusted EBITDA +11% YoY. - Adjusted free cash flow margin: 26% (strong cash efficiency).

Guidance/upside for full-year 2026 (good; implies durability into year-end) - Account net adds: now expected ~1.0M for full year (exceeding industry). - Service revenue: ~$76.8B, ~8% YoY growth, driven by postpaid strength; partially offset by wholesale/other line declines (including faster roll-off of Boost MVNO) and prepaid trends. - Postpaid ARPA outlook: ~3.5% full-year growth (raised from prior 2.5% to 3% expectation), driven by adoption of premium rate plans, deeper customer relationships, and rate plan modernization. - Q4 postpaid organic service revenue growth: expected ~7% YoY. - EBITDA guidance: $37.35B–$37.45B (midpoint + $100M vs prior). - CapEx: unchanged ~$10B. - Adjusted free cash flow: $18.7B–$18.8B (midpoint + $150M vs prior).

Capital returns: steady dividends + continued aggressive buybacks (good) - Shareholder returns remain balanced with investment needs and spectrum planning. - Through Oct 23, company disclosed $10.3B buybacks in 2026 vs $9.9B in all of 2025. - Dividend per share increased 15% (multi-year trend). - CFO-designate note from guidance: buybacks look unlikely to accelerate aggressively without factoring spectrum needs; management expects more capital envelope devoted to spectrum in 2027–2028 due to upcoming auctions.