T-Mobile US, Inc. 10-Q Summary: Q2 2026
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended June 30, 2026. T-Mobile US, Inc. operates as a single reporting segment (Wireless), providing wireless communications and broadband services in the United States. The reporting period reflects the ongoing integration of the UScellular Wireless Business (acquired August 2025) and continued network expansion.
Key Financial Metrics
| Metric | Q2 2026 (3 Months) | Q2 2025 (3 Months) | YTD 2026 (6 Months) | YTD 2025 (6 Months) |
|---|---|---|---|---|
| Total Revenues | $22,791 million | $21,132 million | $45,898 million | $42,018 million |
| Net Income | $3,239 million | $3,222 million | $5,743 million | $6,175 million |
| Operating Income | $5,490 million | $5,213 million | $9,987 million | $10,013 million |
| Adjusted EBITDA | $9,537 million | $8,547 million | $18,778 million | $16,806 million |
| Operating Cash Flow | $7,500 million | $6,992 million | $14,722 million | $13,839 million |
| Adjusted Free Cash Flow | $4,797 million | $4,596 million | $9,396 million | $8,992 million |
| Total Debt (Excl. Tower Obligations) | $84.6 billion (as of June 30, 2026) | |||
| Cash & Equivalents | $2.8 billion (as of June 30, 2026) |
Material Changes vs. Prior Period
- Revenue Growth: Total revenues increased 8% ($1.7 billion) in Q2 2026 compared to Q2 2025, driven by a 13% increase in postpaid revenues due to higher account counts (including UScellular and Metronet acquisitions) and higher Average Revenue Per Account (ARPA).
- Profitability: Net income remained flat quarter-over-quarter ($3.2 billion) but declined 7% year-to-date ($5.7 billion vs. $6.2 billion) due to increased merger-related costs and restructuring expenses.
- Expense Increases: Operating expenses rose 9% in Q2 and 12% YTD. Increases were primarily attributed to UScellular integration costs, higher bad debt expense, and accelerated depreciation from network restructuring.
- Capital Allocation: The company repurchased $2.2 billion of stock in Q2 and $7.1 billion YTD. Dividends paid were $1.1 billion in Q2 and $2.2 billion YTD.
Guidance, Outlook, and Risks
- Stockholder Returns: The Board increased the 2026 Stockholder Return Program authorization to $18.2 billion. As of July 17, 2026, approximately $8.5 billion remained available for repurchases and dividends.
- Strategic Investments: T-Mobile announced joint ventures to acquire fiber assets (i3 Broadband and GoNetspeed/Greenlight Networks) with expected investments of $2.7 billion total. A new joint venture with AT&T and Verizon was announced to address rural coverage gaps.
- Restructuring: Significant costs are being incurred for the UScellular integration ($1.2 billion expected annual run-rate synergies) and a Network Restructuring Initiative ($500-$800 million total expected cost).
- Risks: Key risks include ongoing cybersecurity threats (following 2021 and 2023 incidents), regulatory compliance regarding the Sprint merger, and the financial impact of integrating acquired businesses.
Investor Verification Checklist
- UScellular Integration Costs: Verify the trajectory of merger-related expenses against the projected $2.6 billion total cost to achieve synergies.
- Postpaid Churn: Monitor the slight increase in postpaid account churn (0.99% in Q2 2026 vs. 0.92% in Q2 2025) and its impact on long-term revenue stability.
- Spectrum Transactions: Confirm the closing of the $2.9 billion sale of 800 MHz spectrum to Grain Management, approved by the FCC on July 1, 2026, and the associated $850 million tax liability.
- Debt Maturity Profile: Review the debt schedule, noting $7.8 billion in redemptions/repayments YTD and the remaining $84.6 billion debt balance.
- Legal Contingencies: Assess potential liabilities from ongoing litigation related to the 2021 and 2023 cyberattacks and the Sprint merger antitrust class action.