T-Mobile US (TMUS) Financials

T-Mobile US, Inc. (NASDAQ: TMUS) has demonstrated solid financial performance over the last several quarters, with notable trends and operational highlights observed across income statements, balance sheets, and cash flow statements.

Key Positive Financial Trends and Highlights:

• Consistent revenue growth: Operating revenue increased from $19.6 billion in Q1 2023 to $21.1 billion in Q2 2025, reflecting steady top-line expansion.
• Rising net income: Consolidated net income grew from $1.94 billion in Q1 2023 to $3.22 billion in Q2 2025, indicating improving profitability.
• Strong operating cash flow: Net cash from continuing operating activities rose from approximately $4.05 billion in Q1 2023 to $6.99 billion in Q2 2025, evidencing robust cash generation capability.
• Stable operating margins: Total gross profit margin remained stable, with gross profit increasing alongside revenue, supported by controlled cost of revenue.
• Effective capital investment: Property, plant & equipment (net) remains steadily invested around $37-$42 billion, supporting network expansion and technological development.
• Substantial equity base: Total common equity is healthy at about $61 billion as of Q2 2025, underpinned by solid retained earnings growth reflecting ongoing profitability.
• Continued dividend payments: The company maintained stable cash dividends to common shareholders, consistently paying $0.88 per share in recent quarters.

Neutral Observations:

• Depreciation expense slightly fluctuated but remains within a consistent range around $3.1 - $3.3 billion per quarter, aligning with capital investments.
• Weighted average diluted shares outstanding decreased modestly from approximately 1.22 billion in early 2023 to about 1.13 billion in mid-2025, reflecting share repurchases.
• Interest and investment income has remained a significant non-operating expense item, roughly in the range of $800 million to $920 million loss per quarter.

Areas of Concern or Negative Trends:

• Higher financing outflows: Net cash used in financing activities increased markedly in recent quarters, with $7.2 billion used in Q2 2025 versus net inflows in earlier periods, primarily driven by significant debt repayments and equity repurchases.
• Increases in total liabilities: Total liabilities reached $151.5 billion in Q2 2025, up from around $143 billion a year earlier, largely due to elevated long-term debt balances (~$76 billion).
• Rising total current liabilities: Current liabilities fluctuate but remain high near $22 billion, which may imply pressure on short-term obligations.
• Negative changes in operating assets and liabilities: Working capital changes have sometimes been cash outflows (negative values), slightly dampening operating cash flow.
• Significant acquisitions spending: Acquisition-related cash outflows increased to $1.8 billion in Q2 2025, potentially impacting liquidity in the near term.

Summary: T-Mobile US has shown substantial revenue and profit growth over the last four years into mid-2025, supported by strong operating cash flow and steady capital expenditure to enhance its network. The company maintains a solid equity position and continues rewarding shareholders through dividends. However, elevated debt levels and increased cash outflows for financing and acquisitions warrant close monitoring. The increase in leveraging and financing cash outflows could weigh on financial flexibility if not balanced with ongoing strong operational cash generation.

Retail investors might view T-Mobile's financial health as fundamentally strong with demonstrated growth and cash flow strength, but should be aware of the company’s sizable liabilities and capital needs as it continues investing in network and growth initiatives.