T-Cellular US COO and incoming CEO Srini Gopalan stated the service had its ‘greatest Q3 in over a decade’
In sum – what to know:
Subscriber progress surges: T-Cellular added a document 2.35 million postpaid clients in Q3 2025 — together with 1 million postpaid telephone traces — cementing its lead in U.S. wi-fi progress.
Raised full-year outlook: The corporate lifted its 2025 steering for postpaid provides, EBITDA, and free money circulate, signaling confidence regardless of greater spending.
Capex issues weigh on sentiment: Shares dipped as T-Cellular boosted capital expenditure steering to $10 billion, reflecting heavy funding.
T-Cellular US reported robust outcomes for the third quarter of 2025, saying document buyer additions and elevating full-year steering, whereas additionally signaling elevated capital expenditure that weighed on traders’ sentiment.
Subscriber momentum leads the cost
T-Cellular delivered distinctive internet buyer additions. Complete postpaid internet buyer additions reached 2.3 million for the quarter, a rise of roughly 772,000 from a 12 months in the past. Inside that, postpaid telephone internet additions got here in at 1.0 million — the very best Q3 stage in additional than a decade and an industry-leading determine.
Placing these numbers into perspective, T-Cellular COO and incoming CEO US Srini Gopalan stated on the investor name: “We had our all-time greatest postpaid buyer account progress … we achieved our best-ever complete postpaid internet additions and delivered over 1,000,000 postpaid internet additions … What I like is how broad-based this progress is. It’s within the high 10 markets; it’s in smaller markets and rural areas.”
Past its core wi-fi enterprise, T-Cellular additionally added 560,000 broadband clients (up 34 % year-over-year), together with 506,000 5G broadband internet provides, ending the quarter with about 7.955 million 5G broadband clients. Gopalan famous that these additions embrace contributions from the not too long ago acquired Metronet.
Complete internet buyer additions have been 2.4 million and elevated 791 thousand year-over-year and reaching a document excessive of 139.9 million.
Churn developments strengthen buyer retention narrative
T-Cellular maintained its industry-leading churn efficiency in Q3 2025. Postpaid telephone churn was 0.89%, almost flat year-over-year (up simply 3 foundation factors) — persevering with to outperform friends. Pay as you go churn improved barely to 2.77%, down one foundation level. These metrics spotlight the operator’s continued buyer loyalty features because it expands its 5G and broadband footprint, reinforcing its declare because the “greatest in {industry}” for retention.
Income and revenue: Rising service income, strong money circulate
Service revenues rose 9 % year-over-year to $18.2 billion, led by postpaid service income progress of 12 % to $14.9 billion. Complete revenues reached $21.957 billion, a rise of three.9 % from a 12 months in the past.
Web earnings for the quarter was $2.7 billion, or $2.41 diluted EPS, although that included an impairment expense of $208 million (about $0.18 per share) after tax. On the cash-flow aspect, T-Cellular reported working money circulate of $7.457 billion (up 21 % year-over-year) and adjusted free money circulate of $4.818 billion. Core Adjusted EBITDA rose 6 % year-over-year to $8.7 billion.
Elevated capex and up to date steering
Whereas lots of the headline numbers impressed, T-Cellular additionally disclosed a major improve in capital spending. Money purchases of property and tools (together with capitalized curiosity) have been $2.639 billion, up 35 % year-over-year. This displays the corporate’s push to construct extra greenfield websites and assimilate incremental spend following its acquisition of UScellular.
Administration raised its full-year 2025 steering:
- Postpaid internet buyer additions at the moment are anticipated to be between 7.2 million and seven.4 million (up from prior steering of 6.1 million to six.4 million).
- Core Adjusted EBITDA is guided to $33.7 billion-$33.9 billion (up from $33.3 billion-$33.7 billion).
- Web money supplied by working actions is seen at $27.8 billion-$28.0 billion (versus $27.1 billion-$27.5 billion).
- Capital expenditures (money purchases of property and tools) at the moment are anticipated to be roughly $10.0 billion — up $0.5 billion from prior steering of $9.5 billion.
- Adjusted Free Money Movement is predicted at $17.8 billion-$18.0 billion.
Market response and investor concerns
Analyst commentary from Searching for Alpha’s Ahmed Farhath flagged a blended response: Whereas the subscriber progress and repair income growth have been extensively lauded, the sharp improve in capital expenditure and its potential pressure on incremental return raised warning amongst traders. “T-Cellular US forecast robust subscriber metrics and likewise reported strong buyer additions for the third quarter, however a half-billion-dollar surge in capex for the 12 months, together with a income and revenue miss, weighed on its shares after a short premarket rally,” Farhath famous. The elevated spend implies the corporate is in heavy funding mode, which can compress margins or delay payback if progress slows or prices rise.
Backside line
T-Cellular continues to emphasise its differentiated positioning: Its community is acknowledged as best-in-class (for instance, by Opensignal for 5G protection and reliability). Administration says it has continued to “widen differentiation.” The robust additions of higher-value postpaid telephone clients additionally assist bolster common income per account (ARPA) and long-term monetization.
In Q3 2025, T-Cellular delivered standout buyer and income progress, raised steering, and demonstrated robust money circulate era. Nevertheless, the sharp rise in capital funding and the query of when and the way that spend will translate into greater profitability stay areas to look at. With its raised steering, the corporate reveals confidence, however the market will probably be carefully monitoring execution on the community build-out and whether or not the incremental funding yields the anticipated returns.
