8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported): October 27, 2022

T-MOBILE US, INC.

(Exact Name of Registrant as Specified in Charter)

Delaware	1-33409	20-0836269
(State or other jurisdiction	(Commission File Number)	(I.R.S. Employer
of incorporation)		Identification No.)

12920 SE 38th Street

Bellevue, Washington

(Address of principal executive offices)

98006-1350

(Zip Code)

Registrant’s telephone number, including area code: (425) 378-4000

(Former Name or Former Address, if Changed Since Last Report):

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $0.00001 per share	TMUS	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 — Results of Operations and Financial Condition

On October 27, 2022, T-Mobile US, Inc. (the “Company”) issued a press release announcing the financial and operating results of the Company for the quarter ended September 30, 2022. The text of the press release and accompanying Investor Factbook are furnished as Exhibits 99.1 and 99.2 and incorporated herein by reference.

The information in Item 2.02 to this Current Report on Form 8-K, including Exhibits 99.1 and 99.2, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing.

Item 9.01 — Financial Statements and Exhibits

(d) Exhibits:

Exhibit	Description
99.1	Press release, dated October 27, 2022, entitled "T-Mobile Delivers Industry-Leading Customer and Cash Flow Growth in Q3 2022 and Raises 2022 Guidance for the Third Consecutive Quarter"
99.2	Investor Factbook of T-Mobile US, Inc. Third Quarter 2022 Results
104	Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)
SIGNATURES
---

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	T-MOBILE US, INC.
October 27, 2022	/s/ Peter Osvaldik
	Peter Osvaldik<br>Executive Vice President and Chief Financial Officer

Document

EXHIBIT 99.1

T-Mobile Delivers Industry-Leading Customer and Cash Flow Growth in Q3 2022 and Raises 2022 Guidance for the Third Consecutive Quarter

The Un-carrier Further Extends its Network and Value Leadership, Driving Industry-Best Postpaid and Broadband Customer Growth

Industry-Leading Growth in Postpaid and Broadband Customers(1)

•Postpaid net account additions of 394 thousand, best in industry and highest in company history

•Postpaid net customer additions of 1.6 million, more than AT&T and Verizon combined

•Postpaid phone net customer additions of 854 thousand, best in industry and highest since merger

•Postpaid phone churn of 0.88%, only operator to improve year-over-year

•High Speed Internet net customer additions of 578 thousand, best in industry for fourth consecutive quarter

Strong Financial Results Drive Guidance Raise for the Third Consecutive Quarter in 2022

•Service revenues of $15.4 billion grew 4% year-over-year, including industry-leading Postpaid service revenue growth of 7%

•Net income of $508 million and diluted earnings per share (“EPS”) of $0.40 decreased year-over-year primarily due to merger-related costs and loss related to the anticipated sale of the wireline business amounting to a combined impact of $1.8 billion, net of tax, or $1.41 per share

•Core Adjusted EBITDA(2) of $6.7 billion grew 11% year-over-year, best growth in industry and raising guidance

•Net cash provided by operating activities of $4.4 billion grew 26% year-over-year, best growth in industry and raising guidance

•Free Cash Flow(2) of $2.1 billion grew 32% year-over-year, best growth in industry and raising guidance

•Repurchased 4.9 million shares of common stock in the quarter for a total purchase price of $669 million

5G Network Delivers Differentiated Customer Experience and Drives Overall Network Leadership

•Further extended network leadership as the nation’s largest, fastest, most reliable and most awarded 5G network

•Ultra Capacity 5G covers 250 million people, as many as Verizon plans to cover more than two years from now

Significant Integration Milestone Accomplished with Network Decommissioning Substantially Complete

•Raising merger synergies guidance range to $5.7 billion to $5.8 billion in 2022

Bellevue, WA — October 27, 2022 — T-Mobile US, Inc. (NASDAQ: TMUS) reported third quarter 2022 results today, leading the industry in postpaid and broadband customer growth and raising 2022 guidance for the third consecutive quarter. The company’s differentiated growth strategy and industry-best year-over-year postpaid phone churn improvement drove the highest postpaid service revenue and cash flow growth in the industry. The company’s sustained performance and significant progress on integration allowed T-Mobile to receive full investment grade ratings from all three rating agencies and board approval to commence a share repurchase program for up to $14 billion of the company’s common stock through September 2023.

"We’ve always said our aspiration was to be the first and only provider to offer customers both the best network and the best value without having to sacrifice one for the other — and based on another set of standout customer and financial results for Q3, it's clear we’re delivering on that promise," said Mike Sievert, CEO of T-Mobile. "On the heels of our highest ever postpaid account net additions and industry-leading postpaid and broadband customer growth, we are raising guidance for the third time this year. Our Un-carrier playbook continues to win in this ever-changing competitive and macro-economic climate and our momentum is only getting stronger.”

___________________________________________________________

(1)AT&T Inc. historically does not disclose postpaid net account additions. Industry-leading claims based on consensus expectations if results not yet reported.

(2)Core Adjusted EBITDA and Free Cash Flow are non-GAAP financial measures. These non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information provided in accordance with GAAP. Reconciliations for these non-GAAP financial measures to the most directly comparable GAAP financial measures are provided in the Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures tables. We are not able to forecast Net income on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting certain items that affect Net income including, but not limited to, Income tax expense and Interest expense. Core Adjusted EBITDA should not be used to predict Net income as the difference between this measure and Net income is variable.

Industry-Leading Growth in Postpaid and Broadband Customers

•Postpaid net account additions of 394 thousand increased 126 thousand year-over-year.

•Postpaid net customer additions of 1.6 million increased 368 thousand year-over-year.

•Postpaid phone net customer additions of 854 thousand increased 181 thousand year-over-year, leading the industry for the first time since Q1 2021. Postpaid phone churn of 0.88% improved by 8 basis points year-over-year.

•Prepaid net customer additions of 105 thousand increased 39 thousand year-over-year. Prepaid churn of 2.88% improved by 2 basis points year-over-year.

•High Speed Internet net customer additions of 578 thousand were a record high, and T-Mobile ended the quarter with over 2.1 million High Speed Internet customers.

•Total net customer additions of 1.7 million increased 407 thousand year-over-year and the total customer count increased to a record high of nearly 112 million.

	Quarter						Nine Months Ended September 30,
(in thousands, except churn)	Q3 2022		Q2 2022		Q3 2021		2022		2021
Postpaid net account additions	394		380		268		1,122		873
Total net customer additions	1,732		1,802		1,325		4,914		4,038
Postpaid net customer additions	1,627		1,656		1,259		4,601		3,745
Postpaid phone net customer additions	854		723		673		2,166		2,073
Postpaid other net customer additions (1)	773		933		586		2,435		1,672
Prepaid net customer additions (1)	105		146		66		313		293
Total customers, end of period (1)(2)(3)	111,755		110,023		106,920		111,755		106,920
Postpaid phone churn	0.88	%	0.80	%	0.96	%	0.87	%	0.93	%
Prepaid churn	2.88	%	2.58	%	2.90	%	2.71	%	2.76	%
High Speed Internet net customer additions	578		560		134		1,476		322
Total High Speed Internet customers, end of period	2,122		1,544		422		2,122		422

(1)Includes High-Speed Internet customers.

(2)Customers impacted by the decommissioning of the legacy Sprint CDMA and LTE and T-Mobile UMTS networks have been excluded from our customer base resulting in the removal of 212,000 postpaid phone customers and 349,000 postpaid other customers in the first quarter of 2022 and 284,000 postpaid phone customers, 946,000 postpaid other customers and 28,000 prepaid customers in the second quarter of 2022. In connection with our acquisition of companies, we included a base adjustment in the first quarter of 2022 to increase postpaid phone customers by 17,000 and reduce postpaid other customers by 14,000. Certain customers now serviced through reseller contracts were removed from our reported postpaid customer base resulting in the removal of 42,000 postpaid phone customers and 20,000 postpaid other customers in the second quarter of 2022.

(3)In the first quarter of 2021, we acquired 11,000 postpaid phone customers and 1,000 postpaid other customers through our acquisition of an affiliate. In the third quarter of 2021, we acquired 716,000 postpaid phone customers and 90,000 postpaid other customers through our acquisition of the Wireless Assets from Shenandoah Personal Communications Company LLC (“Shentel”).

Strong Financial Results

•Total service revenues increased 4% year-over-year to $15.4 billion, which included Postpaid service revenue growth of 7% year-over-year driven by continued customer growth.

•Net income of $508 million and Diluted EPS of $0.40 decreased year-over-year primarily due to the impacts in the current quarter, net of tax, associated with merger-related costs of $972 million, or $0.77 per share and loss related to the anticipated sale of the wireline business of $803 million, or $0.64 per share.

•Core Adjusted EBITDA increased 11% year-over-year to $6.7 billion primarily due to Service revenue growth and increased synergy realization.

•Net cash provided by operating activities increased 26% year-over-year to $4.4 billion, which included cash payments for merger-related costs of $942 million.

•Cash purchases of property and equipment, including capitalized interest, increased 23% year-over-year to $3.6 billion driven by the accelerated build-out of the nationwide 5G network.

•Free Cash Flow increased 32% year-over-year to $2.1 billion, which included cash payments for merger-related costs of $942 million.

(in millions, except EPS)		Quarter								Nine Months Ended September 30,					Q3 2022 vs.<br><br>Q2 2022		Q3 2022 vs.<br><br>Q3 2021		YTD 2022 vs.<br><br>YTD 2021
	Q3 2022			Q2 2022			Q3 2021		2022			2021
Total service revenues		$	15,361		$	15,316		$	14,722	$	45,805		$	43,406	0.3	%	4.3	%	5.5	%
Postpaid service revenues		11,548			11,445			10,804		34,194			31,599		0.9	%	6.9	%	8.2	%
Total revenues		19,477			19,701			19,624		59,298			59,333		(1.1)	%	(0.7)	%	(0.1)	%
Net (loss) income		508			(108)			691		1,113			2,602		NM		(26.5)	%	(57.2)	%
Diluted EPS		0.40			(0.09)			0.55		0.88			2.07		NM		(27.3)	%	(57.5)	%
Adjusted EBITDA		7,039			7,004			6,811		20,993			20,622		0.5	%	3.3	%	1.8	%
Core Adjusted EBITDA		6,728			6,618			6,041		19,809			17,897		1.7	%	11.4	%	10.7	%
Net cash provided by operating activities		4,391			4,209			3,477		12,445			10,917		4.3	%	26.3	%	14.0	%
Cash purchases of property and equipment, including capitalized interest		3,634			3,572			2,944		10,587			9,397		1.7	%	23.4	%	12.7	%
Free Cash Flow		2,065			1,758			1,559		5,472			4,534		17.5	%	32.5	%	20.7	%

NM = Not Meaningful

5G Network Delivers Differentiated Customer Experience and Drives Overall Network Leadership

T-Mobile is the leader in 5G with the country’s largest, fastest, most reliable and most awarded 5G network. The Un-carrier’s Extended Range 5G covers 97% of Americans, reaching more square miles than Verizon and AT&T combined, and its super-fast Ultra Capacity 5G covers 250 million people nationwide. Nearly 55% of T-Mobile’s postpaid customers have a 5G phone.

T-Mobile’s most awarded 5G network continues to lead the nation:

•Ookla: In its Q3 Speedtest Global Index Market Analysis of mobile providers, T-Mobile placed first in almost every category:

◦Winning as the fastest overall provider with the fastest download and upload speeds, highest consistency and best overall video score.

◦For 5G specific performance, T-Mobile was ranked #1 for 5G download speeds and 5G availability and was unsurpassed for 5G video score and 5G consistency.

◦T-Mobile’s median 5G download speeds were even faster than Comcast, Verizon, and AT&T’s fixed broadband median download speeds.

•Opensignal: In its 2022 5G Global Mobile Network Experience Awards, T-Mobile won big for having the best 5G availability and reach in the world.

•umlaut: In its latest 5G Network Performance Audit Report, T-Mobile was once again named as the most reliable 5G network in the country with the best coverage, stability and speeds.

Raising 2022 Merger Synergies Guidance on Accelerated Integration Progress

T-Mobile achieved a huge milestone with the network decommissioning substantially complete, less than 2.5 years post-merger closing, and more than a year ahead of the original merger plan.

Based on the continued strength of execution, T-Mobile is raising its merger synergies guidance range to $5.7 billion to $5.8 billion in 2022, up from the previous range of $5.4 billion to $5.6 billion.

•Approximately $2.4 billion of selling, general and administrative (SG&A) expense reductions

•Approximately $2.0 billion to $2.1 billion of cost of service expense reductions achieved through network efficiencies

•Approximately $1.3 billion of savings related to avoided network site builds

Raising 2022 Guidance Again

•Postpaid net customer additions are expected to be between 6.2 million and 6.4 million, an increase from prior guidance of 6.0 million to 6.3 million.

•Core Adjusted EBITDA, which is Adjusted EBITDA less lease revenues, is expected to be between $26.2 billion and $26.4 billion, an increase from prior guidance of $26.0 billion to $26.3 billion.

•Merger-related costs are expected to be between $4.8 billion and $5.0 billion before taxes, an increase from prior guidance of $4.7 billion to $5.0 billion. These costs are excluded from Core Adjusted EBITDA but will impact Net income, Net cash provided from operating activities and Free Cash Flow.

•Net cash provided by operating activities, including payments for Merger-related costs, is expected to be between $16.3 billion and $16.5 billion, an increase from prior guidance of $16.0 billion to $16.3 billion.

•Cash purchases of property and equipment, including capitalized interest, are expected to be between $13.7 billion to $13.9 billion, an increase from prior guidance of $13.5 billion to $13.7 billion, reflecting T-Mobile’s accelerated build-out of its nationwide 5G network and purchases of High Speed Internet routers.

•Free Cash Flow, including payments for Merger-related costs, is expected to be between $7.4 billion and $7.6 billion, an increase from prior guidance of $7.3 billion to $7.6 billion. Free Cash Flow guidance does not assume any material net cash inflows from securitization.

(in millions, except Postpaid net customer additions)	Previous		Current		Change (Mid-point)
Postpaid net customer additions (thousands)	6,000	6,300	6,200	6,400	150
Net income (1)	N/A	N/A	N/A	N/A	N/A
Core Adjusted EBITDA (2)	$26,000	$26,300	$26,200	$26,400	$150
Merger synergies	5,400	5,600	5,700	5,800	250
Merger-related costs (3)	4,700	5,000	4,800	5,000	50
Net cash provided by operating activities	16,000	16,300	16,300	16,500	250
Capital expenditures (4)	13,500	13,700	13,700	13,900	200
Free Cash Flow (5)	7,300	7,600	7,400	7,600	50

(1)T-Mobile is not able to forecast Net income on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting certain items that affect GAAP Net income, including, but not limited to, Income tax expense and Interest expense. Core Adjusted EBITDA should not be used to predict Net income as the difference between this measure and Net income is variable.

(2)Management uses Core Adjusted EBITDA as a measure to monitor the financial performance of company operations, excluding the impact of lease revenues from related device financing programs. Guidance ranges assume lease revenues to be between $1.3 billion and $1.4 billion for 2022.

(3)Merger-related costs are excluded from Core Adjusted EBITDA but will impact Net income, Net cash provided by operating activities and Free Cash Flow.

(4)Capital expenditures means cash purchases of property and equipment, including capitalized interest.

(5)Free Cash Flow guidance does not assume any material net cash inflows from securitization in 2022.

Doing Better by Doing Good — the Un-carrier Way

T-Mobile continues to stay true to its commitment to use its network, scale and resources for good, building a more connected, equitable and sustainable future. Most recently:

•T-Mobile published its second annual Corporate Responsibility Report, sharing its progress to bridge the digital divide, provide equitable opportunities and support a thriving planet.

•Through Project 10Million, T-Mobile has made offering reliable and affordable connectivity to students a priority, investing $3.65 billion in services to connect more than 4.3 million students since 2020.

•T-Mobile received multiple recognitions in the third quarter, including:

◦Finalist in Fast Company’s 2022 Best Workplaces for Innovators in both the Diversity and Sustainability categories

◦Environmental Protection Agency (EPA) 2022 Green Power Leadership award

◦Leading Disability Employer by The National Organization on Disability

•T-Mobile’s Emergency Management and Community Support teams supported more than 10,000 people during Hurricanes Ian and Fiona with thousands of supplies including smart phones, hot spots and charging banks, as well as free Wi-Fi connectivity.

•As part of T-Mobile’s commitment to bring 5G to rural America and support economic and community development, the Un-carrier has given more than $5.5 million to date to kick-start 125 community development projects across 37 states.

Financial Results

For more details on T-Mobile’s Q3 2022 financial results, including the Investor Factbook with detailed financial tables, please visit T-Mobile US, Inc.’s Investor Relations website at https://investor.t-mobile.com.

Earnings Call Information

Date/Time

•Thursday, October 27, 2022, at 4:30 p.m. (EDT)

Access via Phone (audio only)

Please plan on accessing the call 10 minutes prior to the scheduled start time.

•US/Canada: 866-580-3963

•International: +1 786-697-3501

•Participant Passcode: 0945508

Access via Webcast

The earnings call will be broadcast live via the Investor Relations website at https://investor.t-mobile.com. A replay of the earnings call will be available for two weeks starting shortly after the call concludes and can be accessed by dialing 866-580-3963 (toll free) or +1 786-697-3501 (international). The passcode required to listen to the replay is 0945508.

Submit Questions via Twitter

Send a tweet to @TMobileIR or @MikeSievert using $TMUS

Contact Information

•Media Relations: mediarelations@t-mobile.com

•Investor Relations: investor.relations@t-mobile.com

T-Mobile Social Media

Investors and others should note that we announce material financial and operational information to our investors using our investor relations website (https://investor.t-mobile.com), newsroom website (https://t-mobile.com/news), press releases, SEC filings and public conference calls and webcasts. We also intend to use certain social media accounts as a means of disclosing information about us and our services and for complying with our disclosure obligations under Regulation FD (the @TMobileIR Twitter account (https://twitter.com/TMobileIR), the @MikeSievert Twitter account (https://twitter.com/MikeSievert), which Mr. Sievert also uses as a means for personal communications and observations, and the @TMobileCFO Twitter Account (https://twitter.com/tmobilecfo), and our CFO’s LinkedIn account (https://www.linkedin.com/in/peter-osvaldik-3887394), both of which Mr. Osvaldik also uses as a means for personal communication and observations). The information we post through these social media channels may be deemed material. Accordingly, investors should monitor these social media channels in addition to following our press releases, SEC filings and public conference calls and webcasts. The social media channels that we intend to use as a means of disclosing the information described above may be updated from time to time as listed on our investor relations website.

About T-Mobile US, Inc.

T-Mobile US, Inc. (NASDAQ: TMUS) is America’s supercharged Un-carrier, delivering an advanced 4G LTE and transformative nationwide 5G network that will offer reliable connectivity for all. T-Mobile’s customers benefit from its unmatched combination of value and quality, unwavering obsession with offering them the best possible service experience and undisputable drive for disruption that creates competition and innovation in wireless and beyond. Based in Bellevue, Wash., T-Mobile provides services through its subsidiaries and operates its flagship brands, T-Mobile and Metro by T-Mobile. For more information please visit: https://www.t-mobile.com.

Forward-Looking Statements

This communication includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including information concerning T-Mobile US, Inc.’s future results of operations, are forward-looking statements. These forward-looking statements are generally identified by the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “could” or similar expressions. Forward-looking statements are based on current expectations and assumptions, which are subject to risks and uncertainties that may cause actual results to differ materially from the forward-looking statements, including unexpected delays, difficulties, and expenses in executing against our environmental, climate, or other “Environmental, Social, and Governance (ESG)” targets, goals and commitments outlined in this document, including, but not limited to, our efforts to reduce our greenhouse gas emissions, as well as changes in laws or regulations affecting us, such as changes in cybersecurity, data privacy, environmental, safety and health laws, and other risks as disclosed in our most recent annual report on Form 10-K, 10-Q and other filings with the Securities and Exchange Commission (the “SEC”). Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. T-Mobile does not undertake, and expressly disclaims any duty, to update any statements contained herein, whether as a result of new information, new developments, or otherwise, except to the extent that disclosure may be required by law. In addition, some of the statements contained in this document may rely on third-party information and projections that management believes to be reputable; however, T-Mobile does not independently verify or audit this information.

This document contains ESG-related statements based on hypothetical scenarios and assumptions as well as estimates that are subject to a high level of uncertainty, and these statements should not necessarily be viewed as being representative of current or actual risk or performance, or forecasts of expected risk or performance. In addition, historical, current, and forward-looking environmental and social-related statements may be based on standards for measuring progress that are still developing, and internal controls and processes that continue to evolve. Forward-looking and other statements in this document may also address our corporate responsibility and sustainability progress, plans, and goals, and the inclusion of such statements is not an indication that these contents are necessarily material for the purposes of complying with or reporting pursuant to the U.S. federal securities laws and regulations, even if we use the word “material” or “materiality” in this document in relation to those statements. Website references throughout this document are provided for convenience only, and the content on the referenced websites is not incorporated by reference into this document.

Forward-looking statements are based on current expectations and assumptions, which are subject to risks and uncertainties and may cause actual results to differ materially from the forward-looking statements. Important factors that could affect future results and cause those results to differ materially from those expressed in the forward-looking statements include, among others, the following: natural disasters, public health crises, including adverse impacts caused by the COVID-19 pandemic; competition, industry consolidation and changes in the market for wireless services; disruption, data loss or other security breaches, such as the criminal cyberattack we became aware of in August 2021; our inability to take advantage of technological developments on a timely basis; our inability to retain or motivate key personnel, hire qualified personnel or maintain our corporate culture; system failures and business disruptions, allowing for unauthorized use of or interference with our network and other systems; the scarcity and cost of additional wireless spectrum, and regulations relating to spectrum use; the impacts of the actions we have taken and conditions we have agreed to in connection with the regulatory proceedings and approvals of the Transactions (as defined below), including the acquisition by DISH Network Corporation (“DISH”) of the prepaid wireless business operated under the Boost Mobile and Sprint prepaid brands (excluding the Assurance brand Lifeline customers and the prepaid wireless customers of Shenandoah Personal Communications Company LLC (“Shentel”) and Swiftel Communications, Inc.), including customer accounts, inventory, contracts, intellectual property and certain other specified assets (the “Prepaid Business”), and the assumption of certain related liabilities (collectively, the “Prepaid Transaction”), the complaint and proposed final judgment (the “Consent Decree”) agreed to by us, Deutsche Telekom AG (“DT”), Sprint Corporation, now known as Sprint LLC (“Sprint”), SoftBank Group Corp. (“SoftBank”) and DISH with the U.S. District Court for the District of Columbia, which was approved by the Court on April 1, 2020, the proposed commitments filed with the Secretary of the Federal Communications Commission (“FCC”), which we announced on May 20, 2019, certain national security commitments and undertakings, and any other commitments or undertakings entered into, including but not limited to, those we have made to certain states and nongovernmental organizations (collectively, the “Government Commitments”), and the challenges in satisfying the Government Commitments in the required time frames and the significant cumulative costs incurred in tracking and monitoring compliance; adverse economic, political or market conditions in the U.S. and international markets, including those caused by the COVID-19 pandemic; our inability to manage the ongoing commercial and transition services arrangements entered into in connection with the Prepaid Transaction, and known or unknown liabilities arising in connection therewith; the timing and effects of any future acquisition, disposition, investment, or merger involving us; any disruption or failure of our third parties (including key suppliers) to provide products or services for the operation of our business; our substantial level of indebtedness and our inability to service our debt obligations in accordance with their terms or to comply with the restrictive covenants contained therein; changes in the credit market conditions, credit rating downgrades or an inability to access debt markets; restrictive covenants including the agreements governing our indebtedness and other financings; the risk of future material weaknesses we may identify while we continue to work to integrate the two companies following the Transactions, or any other failure by us to maintain effective internal controls, and the resulting significant costs and reputational damage; any changes in regulations or in the regulatory framework under which we operate; laws and regulations relating to the handling of privacy and data protection; unfavorable outcomes of and increased costs from existing or future legal proceedings, including these proceedings and inquiries relating to the criminal cyberattack we became aware of in August 2021; the possibility that we may be unable to adequately protect our intellectual property rights or be accused of infringing the intellectual property rights of others; our offering of regulated financial services products and exposure to a wide variety of state and federal regulations; new or amended tax laws or regulations or administrative interpretations and judicial decisions affecting the scope or application of tax laws or regulations; our exclusive forum provision as provided in our Certificate of Incorporation; interests of our significant stockholders that may differ from the interests of other stockholders; future sales of our common stock by DT and SoftBank and our inability to attract additional equity financing outside the United States due to foreign ownership limitations by the FCC; our stock repurchase program may not be fully consummated, and may not enhance long-term stockholder value; failure to realize the expected benefits and synergies of the merger with Sprint, pursuant to the Business Combination Agreement with Sprint and the other parties named therein (as amended, the “Business Combination Agreement”) and the other transactions contemplated by the Business Combination Agreement (collectively, the “Transactions”) in the expected time frames or in the amounts anticipated; any delay and costs of, or difficulties in, integrating our business and Sprint's business and operations, and unexpected additional operating costs, customer loss and business disruptions, including challenges in maintaining relationships with employees, customers, suppliers or vendors; unanticipated difficulties, disruption, or significant delays in our long-term strategy to migrate Sprint's legacy customers onto T-Mobile's existing billing platforms; and other risks as disclosed in our most recent annual report on Form 10-K, 10-Q and other filings with the SEC. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law.

T-Mobile US, Inc.

Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures

(Unaudited)

This Press Release includes non-GAAP financial measures. The non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information provided in accordance with GAAP. Reconciliations for the non-GAAP financial measures to the most directly comparable GAAP financial measures are provided below. T-Mobile is not able to forecast Net income on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting certain items that affect GAAP net income, including, but not limited to, Income tax expense and Interest expense. Adjusted EBITDA and Core Adjusted EBITDA should not be used to predict Net income as the difference between either of these measures and Net income is variable.

Adjusted EBITDA and Core Adjusted EBITDA are reconciled to Net income (loss) as follows:

	Quarter														Nine Months Ended September 30,
(in millions)	Q1 2021		Q2 2021		Q3 2021		Q4 2021		Q1 2022		Q2 2022		Q3 2022		2021		2022
Net income (loss)	$	933	$	978	$	691	$	422	$	713	$	(108)	$	508	$	2,602	$	1,113
Adjustments:
Interest expense, net	835		850		836		821		864		851		827		2,521		2,542
Other expense, net	125		1		60		13		11		21		3		186		35
Income tax expense (benefit)	246		277		(3)		(193)		218		(55)		(57)		520		106
Operating income	2,139		2,106		1,584		1,063		1,806		709		1,281		5,829		3,796
Depreciation and amortization	4,289		4,077		4,145		3,872		3,585		3,491		3,313		12,511		10,389
Stock-based compensation (1)	130		129		127		135		136		149		145		386		430
Merger-related costs	298		611		955		1,243		1,413		1,668		1,296		1,864		4,377
Impairment expense	—		—		—		—		—		477		—		—		477
Legal-related expenses (recoveries), net (2)	—		—		—		—		—		400		(19)		—		381
Loss on disposal group held for sale	—		—		—		—		—		—		1,071		—		1,071
Other, net (3)	49		(17)		—		(11)		10		110		(48)		32		72
Adjusted EBITDA	6,905		6,906		6,811		6,302		6,950		7,004		7,039		20,622		20,993
Lease revenues	(1,041)		(914)		(770)		(623)		(487)		(386)		(311)		(2,725)		(1,184)
Core Adjusted EBITDA	$	5,864	$	5,992	$	6,041	$	5,679	$	6,463	$	6,618	$	6,728	$	17,897	$	19,809

(1)Stock-based compensation includes payroll tax impacts and may not agree to stock-based compensation expense in the consolidated financial statements. Additionally, certain stock-based compensation expenses associated with the Sprint merger have been included in Merger-related costs.

(2)Legal-related expenses (recoveries), net, consists of the settlement of certain litigation associated with the August 2021 cyberattack, net of insurance recoveries.

(3)Other, net, primarily consists of certain severance, restructuring and other expenses and income, including gains from the sale of IP addresses, not directly attributable to the Merger which would not be expected to reoccur or are not reflective of T-Mobile’s ongoing operating performance, and are, therefore, excluded from Adjusted EBITDA and Core Adjusted EBITDA

Adjusted EBITDA represents earnings before Interest expense, net of Interest income, Income tax expense, Depreciation and amortization expense, stock-based compensation and certain income and expenses not reflective of T-Mobile’s ongoing operating performance. Core Adjusted EBITDA represents Adjusted EBITDA less lease revenues. Core Adjusted EBITDA and Adjusted EBITDA are non-GAAP financial measures utilized by T-Mobile’s management to monitor the financial performance of our operations. T-Mobile uses Core Adjusted EBITDA and Adjusted EBITDA as benchmarks to evaluate T-Mobile’s operating performance in comparison to its competitors. T-Mobile also uses Adjusted EBITDA internally as a measure to evaluate and compensate its personnel and management for their performance. Management believes analysts and investors use Core Adjusted EBITDA and Adjusted EBITDA as supplemental measures to evaluate overall operating performance and facilitate comparisons with other wireless communications companies because they are indicative of T-Mobile’s ongoing operating performance and trends by excluding the impact of Interest expense from financing, non-cash depreciation and amortization from capital investments, stock-based compensation, Merger-related costs, including network decommissioning costs, impairment expense, losses on disposal groups held for sale and certain legal-related recoveries and expenses, as they are not indicative of T-Mobile’s ongoing operating performance, as well as certain nonrecurring income and expenses. Management believes analysts and investors use Core Adjusted EBITDA because it normalizes for the transition in the company’s device financing strategy, by excluding the impact of lease revenues from Adjusted EBITDA, to align with the related depreciation expense on leased devices, which is excluded from the definition of Adjusted EBITDA. Core Adjusted EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as a substitute for Net income or any other measure of financial performance reported in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”)

T-Mobile US, Inc.

Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures (continued)

(Unaudited)

Free Cash Flow is calculated as follows:

	Quarter														Nine Months Ended September 30,
(in millions)	Q1 2021		Q2 2021		Q3 2021		Q4 2021		Q1 2022		Q2 2022		Q3 2022		2021		2022
Net cash provided by operating activities	$	3,661	$	3,779	$	3,477	$	3,000	$	3,845	$	4,209	$	4,391	$	10,917	$	12,445
Cash purchases of property and equipment, including capitalized interest	(3,183)		(3,270)		(2,944)		(2,929)		(3,381)		(3,572)		(3,634)		(9,397)		(10,587)
Proceeds from sales of tower sites	—		31		—		9		—		—		—		31		—
Proceeds related to beneficial interests in securitization transactions	891		1,137		1,071		1,032		1,185		1,121		1,308		3,099		3,614
Cash payments for debt prepayment or debt extinguishment costs	(65)		(6)		(45)		—		—		—		—		(116)		—
Free Cash Flow	$	1,304	$	1,671	$	1,559	$	1,112	$	1,649	$	1,758	$	2,065	$	4,534	$	5,472

Free Cash Flow - Net cash provided by operating activities less Cash purchases of property and equipment, including Proceeds from sales of tower sites and Proceeds related to beneficial interests in securitization transactions and less Cash payments for debt prepayment or debt extinguishment costs. Free Cash Flow is utilized by T-Mobile’s management, investors and analysts to evaluate cash available to pay debt and provide further investment in the business.

The current guidance range for Free Cash Flow is calculated as follows:

	FY 2022
(in millions)	Guidance Range
Net cash provided by operating activities	$	16,300	$	16,500
Cash purchases of property and equipment, including capitalized interest	(13,700)		(13,900)
Proceeds related to beneficial interests in securitization transactions (1)	4,800		5,000
Free Cash Flow	$	7,400	$	7,600

(1)Free Cash Flow guidance does not assume any material net cash inflows from securitization in 2022.

The previous guidance range for Free Cash Flow was calculated as follows:

	FY 2022
(in millions)	Guidance Range
Net cash provided by operating activities	$	16,000	$	16,300
Cash purchases of property and equipment, including capitalized interest	(13,500)		(13,700)
Proceeds related to beneficial interests in securitization transactions (1)	4,800		5,000
Free Cash Flow	$	7,300	$	7,600

(1)Free Cash Flow guidance does not assume any material net cash inflows from securitization in 2022.

T-Mobile US, Inc.

Operating Measures

(Unaudited)

The following table sets forth company operating measures ARPA and ARPU:

(in dollars)		Quarter																					Nine Months Ended September 30,
	Q1 2021			Q2 2021			Q3 2021			Q4 2021			Q1 2022			Q2 2022			Q3 2022			2021			2022
Postpaid ARPA		$	132.91		$	133.55		$	134.54		$	135.04		$	136.53		$	137.92		$	137.49		$	133.68		$	137.32
Postpaid phone ARPU		47.30			47.61			48.06			48.03			48.41			48.96			48.89			47.66			48.75
Prepaid ARPU		37.81			38.53			39.49			39.32			39.19			38.71			38.86			38.61			38.92

Postpaid Average Revenue Per Account (Postpaid ARPA) - Average monthly postpaid service revenue earned per account. Postpaid service revenues for the specified period divided by the average number of postpaid accounts during the period, further divided by the number of months in the period.

Average Revenue Per User (ARPU) - Average monthly service revenue earned per customer. Service revenues for the specified period divided by the average number of customers during the period, further divided by the number of months in the period.

Postpaid phone ARPU excludes postpaid other customers and related revenues.

10

Document

EXHIBIT 99.2

2
3	Highlights
---	---
4	Customer Metrics
7	Financial Metrics
13	Capital Structure
14	5G Network Leadership
15	Merger & Integration
16	Guidance
17	Contacts
18	Financial and Operational Tables
3
---		T-Mobile Delivers Industry-Leading Customer and Cash Flow Growth in Q3 2022 and Raises 2022 Guidance<br><br>for the Third Consecutive Quarter
---	---	---
	“We’ve always said our aspiration was to be the first and only provider to offer customers both the best network and the best value without having to sacrifice one for the other — and based on another set of standout customer and financial results for Q3, it's clear we’re delivering on that promise. On the heels of our highest ever postpaid account net additions and industry-leading postpaid and broadband customer growth, we are raising guidance for the third time this year. Our Un-carrier playbook continues to win in this ever-changing competitive and macro-economic climate and our momentum is only getting stronger.”
		Mike Sievert, CEO

AT&T Inc. historically does not disclose postpaid net account additions. Industry-leading claims based on consensus expectations if results not yet reported.

Core Adjusted EBITDA and Free Cash Flow are non-GAAP financial measures. These non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information provided in accordance with GAAP. Reconciliations for these non-GAAP financial measures to the most directly comparable GAAP financial measures are provided in the Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures tables. We are not able to forecast Net income on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting certain items that affect Net income including, but not limited to, Income tax expense and Interest expense. Core Adjusted EBITDA should not be used to predict Net income as the difference between this measure and Net income is variable.

4
Postpaid Accounts<br><br>(in thousands)
---

Year-Over-Year

Postpaid net account additions increased primarily due to:

■The company’s differentiated growth strategy in new and under-penetrated markets, including continued growth in High Speed Internet

Sequential

Postpaid net account additions increased primarily due to:

■The company’s differentiated growth strategy in new and under-penetrated markets, including continued growth in High Speed Internet

Year-Over-Year

Postpaid ARPA increased 2.2% primarily due to:

■Higher premium services, including Magenta MAX

■Continued adoption of High Speed Internet from existing accounts

■Higher non-recurring charges relative to muted COVID-19 pandemic levels

■Partially offset by an increase in High Speed Internet only accounts and an increase in promotional impacts for Sprint customers from the network transition

Postpaid phone ARPU increased 1.7% primarily due to:

■Higher premium services, including Magenta MAX

■Higher non-recurring charges relative to muted COVID-19 pandemic levels

■Partially offset by an increase in promotional impacts for Sprint customers from the network transition, and higher lines per account driven by deepening Sprint relationships

Sequential

Postpaid ARPA decreased 0.3% primarily due to:

■An increase in promotional impacts for Sprint customers from the network transition

■An increase in High Speed Internet only accounts

■Mostly offset by higher premium services, including Magenta MAX, higher non-recurring charges relative to muted COVID-19 pandemic levels, in addition to continued adoption of High Speed Internet from existing accounts

Postpaid phone ARPU decreased 0.1% primarily due to:

■An increase in promotional impacts for Sprint customers from the network transition, and higher lines per account driven by deepening Sprint relationships

■Mostly offset by higher premium services, including Magenta MAX, and higher non-recurring charges relative to muted COVID-19 pandemic levels

Postpaid ARPA & Postpaid Phone ARPU

5
Postpaid Customers<br><br>(in thousands)
---

Year-Over-Year

Postpaid phone net customer additions increased primarily due to:

■Higher gross additions primarily driven by growth in new customer account relationships

■Lower churn

Postpaid other net customer additions increased primarily due to:

■Continued growth in High Speed Internet

■Partially offset by lower net additions from mobile internet devices and wearables

Sequential

Postpaid phone net customer additions increased primarily due to:

■Seasonally higher gross additions

■Partially offset by seasonally higher churn

Postpaid other net customer additions decreased primarily due to:

■Lower net additions from wearables and mobile internet devices

Year-Over-Year

Postpaid phone churn decreased 8 basis points primarily due to:

■Reduced Sprint churn as we progress through the integration process

■Partially offset by more normalized switching activity and payment performance relative to muted Pandemic-driven conditions a year ago

Sequential

Postpaid phone churn increased 8 basis points primarily due to:

■Seasonal trends

Postpaid Phone Churn

6
Prepaid Customers<br><br>(in thousands)
---

Year-Over-Year

Prepaid net customer additions increased primarily due to:

■Growth in High Speed Internet

Sequential

Prepaid net customer additions decreased primarily due to:

■Seasonally higher churn

■Partially offset by higher gross additions, including growth in High Speed Internet

Year-Over-Year

High Speed Internet net customer additions increased primarily due to:

■Continued growth in customer demand driven by increasing awareness

Sequential

High Speed Internet net customer additions increased primarily due to:

■Continued growth in customer demand driven by increasing awareness

High Speed Internet Customers<br><br>(in thousands)

7
Service Revenues<br><br>($ in millions)
---

Year-Over-Year

Service revenues increased 4% primarily due to:

■Increase in Postpaid service revenues

■Partially offset by a decrease in Wholesale and other service revenues

Sequential

Service revenues increased slightly primarily due to:

■Increase in Postpaid service revenues

■Offset by a decrease in Wholesale and other service revenues

Year-Over-Year

Postpaid service revenues increased 7% primarily due to:

■Higher average postpaid accounts

■Higher postpaid ARPA

Sequential

Postpaid service revenues increased 1% primarily due to:

■Higher average postpaid accounts

Postpaid Service Revenues<br><br>($ in millions)

8
Equipment Revenues<br><br>($ in millions)
---

Year-Over-Year

Equipment revenues decreased 17% primarily due to:

■Lower lease revenues

■A lower number of devices sold due to fewer prepaid and postpaid upgrades

■Lower customer purchases of leased devices included in equipment sales

■An increase in contra revenue primarily driven by higher imputed interest rates on equipment installment plans, which is recognized in other revenues over the device financing term

■Partially offset by slightly higher average revenue per device sold, driven by an increase in the high-end phone mix

Sequential

Equipment revenues decreased 7% primarily due to:

■Lower lease revenues

■Fewer devices liquidated, partially driven by seasonality

■A lower number of devices sold due to fewer prepaid and postpaid upgrades

■The average revenue per device sold was relatively in-line with the prior quarter

Year-Over-Year

Cost of equipment sales, exclusive of Depreciation and Amortization (D&A), decreased 3% primarily due to:

■A lower number of devices sold due to fewer prepaid and postpaid upgrades

■Lower customer purchases of leased devices

■Partially offset by a higher average cost per device sold driven by an increase in the high-end phone mix, in addition to an increase in device insurance claims and warranty fulfillment

Sequential

Cost of equipment sales, exclusive of D&A, decreased 2% primarily due to:

■A lower number of devices sold due to fewer prepaid and postpaid upgrades

■Fewer devices liquidated, partially driven by seasonality

■The average cost per device sold was relatively in-line with the prior quarter

Cost of Equipment Sales, exclusive of D&A<br><br>($ in millions)

9
Cost of Services, exclusive of D&A<br><br>($ in millions, % of Service revenues)
---

Year-Over-Year

Cost of services, exclusive of D&A, increased 5% primarily due to:

■Higher Merger-related costs related to network decommissioning and integration

■Higher site costs related to the continued build-out of our nationwide 5G network

■Partially offset by higher realized Merger synergies

Sequential

Cost of services, exclusive of D&A, decreased 9% primarily due to:

■Higher realized Merger synergies

■Lower Merger-related costs related to network decommissioning and integration

■Partially offset by higher site costs related to the continued build-out of our nationwide 5G network

Year-Over-Year

SG&A expense decreased 2% primarily due to:

■Lower Merger-related costs

■Higher realized Merger synergies

■Gains from the sale of IP addresses

■Partially offset by higher bad debt expense driven by higher receivable balances as well as normalization relative to muted COVID-19 pandemic levels

Sequential

SG&A expense decreased 13% primarily due to:

■Lower legal-related expenses, as Q2 2022 included $400 million related to the settlement of certain litigation associated with the August 2021 cyberattack

■Gains from the sale of IP addresses

■Lower bad debt expense

Selling, General and Administrative (SG&A) Expense<br><br>($ in millions, % of Service revenues)

10
Net Income (Loss)<br><br>($ in millions, % of Service revenues)
---

Diluted Earnings (Loss) Per Share<br><br>(Diluted EPS)

Year-Over-Year

Net income was $508 million and Diluted earnings per share was $0.40 in Q3 2022, compared to Net income of $691 million and Diluted earnings per share of $0.55 in Q3 2021, primarily due to the factors described above and included the following, net of tax:

■Merger-related costs in Q3 2022 of $972 million or $0.77 per share, compared to $707 million, or $0.56 per share, in Q3 2021

■Loss related to the anticipated sale of the wireline business of $803 million, or $0.64 per share, in Q3 2022

Sequential

Net income was $508 million and Diluted earnings per share was $0.40 in Q3 2022, compared to Net loss of $108 million and Diluted loss per share of $0.09 in Q2 2022, primarily due to the factors described above and included the following, net of tax:

■Merger-related costs in Q3 2022 of $972 million, or $0.77 per share, compared to $1.3 billion, or $1.00 per share, in Q2 2022

■Loss related to the anticipated sale of the wireline business of $803 million, or $0.64 per share, in Q3 2022

■Impairment expense related to wireline assets in Q2 2022 of $358 million, or $0.29 per share

■Legal-related expenses including the impact of the settlement of certain litigation associated with the August 2021 cyberattack in Q2 2022 of $300 million, or $0.23 per share

11
Core Adjusted EBITDA*<br><br>($ in millions, % of Service revenues)
---

*Excludes Merger-related costs (see detail on page 15) and other special items

Year-Over-Year

Core Adjusted EBITDA increased 11% primarily due to:

■Higher Service revenues

■Lower Cost of services, excluding Merger-related costs

■Lower Cost of equipment sales, excluding Merger-related costs

■Partially offset by lower Equipment revenues, excluding Lease revenues, and higher SG&A expenses, excluding both Merger-related costs and other special items, such as gains from the sale of IP addresses

Sequential

Core Adjusted EBITDA increased 2% primarily due to:

■Lower Cost of services, excluding Merger-related costs

■Lower SG&A expenses, excluding Merger-related costs, certain legal-related expenses, net of recoveries, and other special items, such as gains from the sale of IP addresses

■Partially offset by lower Equipment revenues, excluding Lease revenues

Year-Over-Year

Net cash provided by operating activities increased 26% primarily due to:

■Lower net cash outflows from changes in working capital, including the impact of a $1.0 billion advanced rent payment in Q3 2021

■Partially offset by a lower Net income, adjusted for non-cash income and expenses

Sequential

Net cash provided by operating activities increased 4% primarily due to:

■Higher Net income, adjusted for non-cash income and expenses

■Partially offset by higher net cash outflows from changes in working capital

The impact of payments for Merger-related costs on Net cash provided by operating activities was $942 million in Q3 2022 compared to $907 million in Q2 2022 and $617 million in Q3 2021.

Net Cash Provided by Operating Activities<br><br>($ in millions)

12
Cash Purchases of Property and Equipment<br><br>($ in millions, % of Service revenues)
---

Year-Over-Year

Cash purchases of property and equipment, including capitalized interest, increased 23% primarily due to:

■Accelerated nationwide 5G network build-out

Sequential

Cash purchases of property and equipment, including capitalized interest, increased 2% primarily due to:

■Accelerated nationwide 5G network build-out

Year-Over-Year

Free Cash Flow increased 32% primarily due to:

■Higher Net cash provided by operating activities

■Higher proceeds related to securitization transactions, which were offset in Net cash provided by operating activities. There were no significant net cash proceeds during the quarter from securitization.

■Partially offset by higher Cash purchases of property and equipment

Sequential

Free Cash Flow increased 17% primarily due to:

■Higher proceeds related to securitization transactions, which were offset in Net cash provided by operating activities. There were no significant net cash proceeds during the quarter from securitization.

■Higher Net cash provided by operating activities

■Partially offset by higher Cash purchases of property and equipment

The impact of payments for Merger-related costs on Free Cash Flow was $942 million in Q3 2022 compared to $907 million in Q2 2022 and $617 million in Q3 2021.

Free Cash Flow<br><br>($ in millions)

13
Net Debt (Excluding Tower Obligations) & Net Debt to LTM Core Adj. EBITDA Ratio<br><br>($ in billions)
---

Total debt, excluding tower obligations, at the end of Q3 2022 was $76.6 billion.

Net debt, excluding tower obligations, at the end of Q3 2022 was $69.7 billion.

■The ratio of net debt, excluding tower obligations, to Core Adjusted EBITDA for the last twelve months (“LTM”) period was 2.7x at the end of Q3 2022 compared to 2.8x at the end of Q2 2022.

■On August 5, 2022, S&P Global Ratings upgraded T-Mobile’s credit rating to BBB- with a positive outlook, enabling the company to achieve its first-ever full investment grade rating.

■On September 8, 2022, T-Mobile’s Board of Directors authorized a stock repurchase program for up to $14.0 billion of the company’s common stock through September 30, 2023, including up to $3.0 billion in 2022.

■During Q3 2022, the company repurchased 4.9 million shares for a total purchase price of $669 million.

■From October 1, 2022, through October 20, 2022, the company repurchased 6.0 million shares for a total purchase price of $815 million.

■On October 12, 2022, T-Mobile closed its first issuance of asset backed securities related to equipment receivables of $750 million.

■On October 17, 2022, T-Mobile entered into a $7.5 billion unsecured revolving credit facility, which replaced the previous $5.5 billion secured facility.

15
---
The company expects full-year 2022 Merger synergies to be 5.7 billion to 5.8 billion:▪Approximately 2.4 billion of SG&A expense reductions.▪Approximately 2.0 billion to 2.1 billion of cost of service expense reductions achieved through network efficiencies▪Approximately 1.3 billion of savings related to avoided network site builds

All values are in US Dollars.

Merger-Related Costs
(in millions, excl. EPS)
	Q3 2021		Q4 2021		Q1 2022		Q2 2022		Q3 2022				%					%
Cost of services												(149)		(16)	%		533		191	%
Cost of equipment sales		236		678		751		459		258				(44)	%				9	%
Selling, general & administrative		440		238		55		248		226				(9)	%				(49)	%
Total Merger-related costs												(372)		(22)	%		341		36	%
Total Merger-related costs, <br>net of tax												(280)		(22)	%		265		37	%
Diluted EPS impact of Merger-related costs		0.56		0.76		0.84		1.00		0.77		(0.23)		(23)	%		0.21		38	%
Net cash payments for <br> Merger-related costs												35		4	%		325		53	%

All values are in US Dollars.

NM - Not Meaningful

16

2022 Outlook

Metric	Previous	Revised	Change at Midpoint
Postpaid net customer additions	6.0 to 6.3 million	6.2 to 6.4 million	150 thousand
Net income (1)	N/A	N/A	N/A
Core Adjusted EBITDA (2)	$26.0 to $26.3 billion	$26.2 to $26.4 billion	$150 million
Merger synergies	$5.4 to $5.6 billion	$5.7 to $5.8 billion	$250 million
Merger-related costs (3)	$4.7 to $5.0 billion	$4.8 to $5.0 billion	$50 million
Net cash provided by operating activities	$16.0 to $16.3 billion	$16.3 to $16.5 billion	$250 million
Capital expenditures (4)	$13.5 to $13.7 billion	$13.7 to $13.9 billion	$200 million
Free Cash Flow (5)	$7.3 to $7.6 billion	$7.4 to $7.6 billion	$50 million

(1)We are not able to forecast Net income on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting certain items that affect GAAP Net income, including, but not limited to, Income tax expense and Interest expense. Core Adjusted EBITDA should not be used to predict Net income as the difference between this measure and Net income is variable.

(2)Management uses Core Adjusted EBITDA as a measure to monitor the financial performance of our operations, excluding the impact of lease revenues from our related device financing programs. Our guidance ranges assume lease revenues to be between $1.3 billion and $1.4 billion for 2022.

(3)Merger-related costs are excluded from Core Adjusted EBITDA but will impact Net income, Net cash provided by operating activities and Free Cash Flow.

(4)Capital expenditures means cash purchases of property and equipment, including capitalized interest.

(5)Free Cash Flow guidance does not assume any material net cash inflows from securitization in 2022.

17

Investor Relations

Jud Henry	Justin Taiber	Trina Schurman
Senior Vice President	Senior Director	Senior Director
Investor Relations	Investor Relations	Investor Relations
Samia Bhatti	Zach Witterstaetter	Rose Kopecky	Jacob Marks
---	---	---	---
Investor Relations	Investor Relations	Investor Relations	Investor Relations
Manager	Manager	Manager	Manager

investor.relations@t-mobile.com

http://investor.t-mobile.com

T-Mobile US, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(in millions, except share and per share amounts)	September 30,<br>2022		December 31,<br>2021
Assets
Current assets
Cash and cash equivalents	$	6,888	$	6,631
Accounts receivable, net of allowance for credit losses of $161 and $146	4,324		4,194
Equipment installment plan receivables, net of allowance for credit losses and imputed discount of $624 and $494	5,048		4,748
Inventory	2,247		2,567
Prepaid expenses	711		746
Other current assets	2,209		2,005
Total current assets	21,427		20,891
Property and equipment, net	41,034		39,803
Operating lease right-of-use assets	29,264		26,959
Financing lease right-of-use assets	3,619		3,322
Goodwill	12,234		12,188
Spectrum licenses	95,767		92,606
Other intangible assets, net	3,763		4,733
Equipment installment plan receivables due after one year, net of allowance for credit losses and imputed discount of $125 and $136	2,514		2,829
Other assets	3,877		3,232
Total assets	$	213,499	$	206,563
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and accrued liabilities	$	11,971	$	11,405
Short-term debt	7,398		3,378
Short-term debt to affiliates	—		2,245
Deferred revenue	777		856
Short-term operating lease liabilities	3,367		3,425
Short-term financing lease liabilities	1,239		1,120
Other current liabilities	1,610		1,070
Total current liabilities	26,362		23,499
Long-term debt	64,834		67,076
Long-term debt to affiliates	1,495		1,494
Tower obligations	3,970		2,806
Deferred tax liabilities	10,397		10,216
Operating lease liabilities	30,271		25,818
Financing lease liabilities	1,590		1,455
Other long-term liabilities	4,430		5,097
Total long-term liabilities	116,987		113,962
Commitments and contingencies
Stockholders' equity
Common Stock, par value $0.00001 per share, 2,000,000,000 shares authorized; 1,256,555,323 and 1,250,751,148 shares issued, 1,250,104,426 and 1,249,213,681 shares outstanding	—		—
Additional paid-in capital	73,797		73,292
Treasury stock, at cost, 6,450,896 and 1,537,468 shares issued	(685)		(13)
Accumulated other comprehensive loss	(1,263)		(1,365)
Accumulated deficit	(1,699)		(2,812)
Total stockholders' equity	70,150		69,102
Total liabilities and stockholders' equity	$	213,499	$	206,563

T-Mobile US, Inc.

Condensed Consolidated Statements of Comprehensive Income (Loss)

(Unaudited)

	Three Months Ended						Nine Months Ended September 30,
(in millions, except share and per share amounts)	September 30,<br>2022		June 30,<br>2022		September 30,<br>2021		2022		2021
Revenues
Postpaid revenues	$	11,548	$	11,445	$	10,804	$	34,194	$	31,599
Prepaid revenues	2,484		2,469		2,481		7,408		7,259
Wholesale and other service revenues	1,329		1,402		1,437		4,203		4,548
Total service revenues	15,361		15,316		14,722		45,805		43,406
Equipment revenues	3,855		4,130		4,660		12,679		15,221
Other revenues	261		255		242		814		706
Total revenues	19,477		19,701		19,624		59,298		59,333
Operating expenses
Cost of services, exclusive of depreciation and amortization shown separately below	3,712		4,060		3,538		11,499		10,413
Cost of equipment sales, exclusive of depreciation and amortization shown separately below	4,982		5,108		5,145		16,036		15,740
Selling, general and administrative	5,118		5,856		5,212		16,030		14,840
Impairment expense	—		477		—		477		—
Loss on disposal group held for sale	1,071		—		—		1,071		—
Depreciation and amortization	3,313		3,491		4,145		10,389		12,511
Total operating expenses	18,196		18,992		18,040		55,502		53,504
Operating income	1,281		709		1,584		3,796		5,829
Other expense, net
Interest expense, net	(827)		(851)		(836)		(2,542)		(2,521)
Other expense, net	(3)		(21)		(60)		(35)		(186)
Total other expense, net	(830)		(872)		(896)		(2,577)		(2,707)
Income (loss) before income taxes	451		(163)		688		1,219		3,122
Income tax benefit (expense)	57		55		3		(106)		(520)
Net income (loss)	$	508	$	(108)	$	691	$	1,113	$	2,602
Net income (loss)	$	508	$	(108)	$	691	$	1,113	$	2,602
Other comprehensive income, net of tax
Reclassification of loss from cash flow hedges, net of tax effect of $13, $13, $12, $39, and $36	39		37		35		113		103
Unrealized loss on foreign currency translation adjustment, net of tax effect of $0, $(1), $0, $(1) and $0	(7)		(3)		(3)		(11)		—
Other comprehensive income	32		34		32		102		103
Total comprehensive income (loss)	$	540	$	(74)	$	723	$	1,215	$	2,705
Earnings (loss) per share
Basic	$	0.40	$	(0.09)	$	0.55	$	0.89	$	2.09
Diluted	$	0.40	$	(0.09)	$	0.55	$	0.88	$	2.07
Weighted-average shares outstanding
Basic	1,253,873,429		1,253,932,986		1,248,189,719		1,252,783,140		1,246,441,464
Diluted	1,259,210,271		1,253,932,986		1,253,661,245		1,258,061,478		1,254,391,787

T-Mobile US, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	Three Months Ended						Nine Months Ended September 30,
(in millions)	September 30,<br>2022		June 30,<br>2022		September 30,<br>2021		2022		2021
Operating activities
Net income (loss)	$	508	$	(108)	$	691	$	1,113	$	2,602
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	3,313		3,491		4,145		10,389		12,511
Stock-based compensation expense	150		154		131		445		403
Deferred income tax (benefit) expense	(36)		(76)		(27)		73		410
Bad debt expense	239		311		105		760		259
Losses (gains) from sales of receivables	60		62		4		168		(26)
Losses on redemption of debt	—		—		55		—		184
Impairment expense	—		477		—		477		—
Loss on remeasurement of disposal group held for sale	371		—		—		371		—
Changes in operating assets and liabilities
Accounts receivable	(1,224)		(1,573)		(454)		(3,781)		(2,197)
Equipment installment plan receivables	(77)		(189)		(530)		(801)		(1,825)
Inventories	(7)		484		41		384		904
Operating lease right-of-use assets	1,113		1,693		1,334		4,275		3,730
Other current and long-term assets	(334)		(112)		(88)		(450)		(188)
Accounts payable and accrued liabilities	342		36		111		319		(1,245)
Short- and long-term operating lease liabilities	(700)		(747)		(2,046)		(2,218)		(4,411)
Other current and long-term liabilities	550		200		(87)		587		(351)
Other, net	123		106		92		334		157
Net cash provided by operating activities	4,391		4,209		3,477		12,445		10,917
Investing activities
Purchases of property and equipment, including capitalized interest of $(16), $(13), $(46), $(44) and $(187)	(3,634)		(3,572)		(2,944)		(10,587)		(9,397)
Purchases of spectrum licenses and other intangible assets, including deposits	(360)		(116)		(407)		(3,319)		(9,337)
Proceeds from sales of tower sites	—		—		—		—		31
Proceeds related to beneficial interests in securitization transactions	1,308		1,121		1,071		3,614		3,099
Acquisition of companies, net of cash and restricted cash acquired	—		—		(1,886)		(52)		(1,916)
Other, net	131		8		14		138		46
Net cash used in investing activities	(2,555)		(2,559)		(4,152)		(10,206)		(17,474)
Financing activities
Proceeds from issuance of long-term debt	2,972		—		1,989		2,972		11,758
Repayments of financing lease obligations	(311)		(288)		(266)		(901)		(822)
Repayments of short-term debt for purchases of inventory, property and equipment and other financial liabilities	—		—		(76)		—		(167)
Repayments of long-term debt	(132)		(1,381)		(4,600)		(3,145)		(9,969)
Repurchases of common stock	(557)		—		—		(557)		—
Tax withholdings on share-based awards	(10)		(43)		(14)		(225)		(308)
Cash payments for debt prepayment or debt extinguishment costs	—		—		(45)		—		(116)
Other, net	(35)		(32)		(48)		(97)		(139)
Net cash provided by (used in) financing activities	1,927		(1,744)		(3,060)		(1,953)		237
Change in cash and cash equivalents, including restricted cash and cash held for sale	3,763		(94)		(3,735)		286		(6,320)
Cash and cash equivalents, including restricted cash and cash held for sale
Beginning of period	3,226		3,320		7,878		6,703		10,463
End of period	$	6,989	$	3,226	$	4,143	$	6,989	$	4,143

T-Mobile US, Inc.

Condensed Consolidated Statements of Cash Flows (Continued)

(Unaudited)

	Three Months Ended						Nine Months Ended September 30,
(in millions)	September 30,<br>2022		June 30,<br>2022		September 30,<br>2021		2022		2021
Supplemental disclosure of cash flow information
Interest payments, net of amounts capitalized	$	781	$	989	$	884	$	2,548	$	2,742
Operating lease payments	1,073		1,042		2,251		3,163		5,165
Income tax payments	12		63		38		75		123
Non-cash investing and financing activities
Non-cash beneficial interest obtained in exchange for securitized receivables	$	1,181	$	990	$	891	$	3,189	$	3,361
Change in accounts payable and accrued liabilities for purchases of property and equipment	390		(68)		113		139		(427)
Leased devices transferred from inventory to property and equipment	67		83		214		279		1,032
Returned leased devices transferred from property and equipment to inventory	(65)		(95)		(309)		(343)		(1,170)
Increase in Tower obligations from contract modification	—		—		—		1,158		—
Operating lease right-of-use assets obtained in exchange for lease obligations	479		591		985		7,045		2,939
Financing lease right-of-use assets obtained in exchange for lease obligations	348		551		623		1,197		1,109

T-Mobile US, Inc.

Supplementary Operating and Financial Data

(Unaudited)

	Quarter							Nine Months Ended September 30,
(in thousands)	Q1 2021	Q2 2021	Q3 2021	Q4 2021	Q1 2022	Q2 2022	Q3 2022	2021	2022
Customers, end of period
Postpaid phone customers (1)(2)	67,402	68,029	69,418	70,262	70,656	71,053	71,907	69,418	71,907
Postpaid other customers (1)(2)	15,170	15,819	16,495	17,401	17,767	17,734	18,507	16,495	18,507
Total postpaid customers	82,572	83,848	85,913	87,663	88,423	88,787	90,414	85,913	90,414
Prepaid customers (1)	20,865	20,941	21,007	21,056	21,118	21,236	21,341	21,007	21,341
Total customers	103,437	104,789	106,920	108,719	109,541	110,023	111,755	106,920	111,755
Adjustments to customers (1)(2)	12	—	806	—	(558)	(1,320)	—	818	(1,878)

(1)Customers impacted by the decommissioning of the legacy Sprint CDMA and LTE and T-Mobile UMTS networks have been excluded from our customer base resulting in the removal of 212,000 postpaid phone customers and 349,000 postpaid other customers in the first quarter of 2022 and 284,000 postpaid phone customers, 946,000 postpaid other customers and 28,000 prepaid customers in the second quarter of 2022. In connection with our acquisition of companies, we included a base adjustment in the first quarter of 2022 to increase postpaid phone customers by 17,000 and reduce postpaid other customers by 14,000. Certain customers now serviced through reseller contracts were removed from our reported postpaid customer base resulting in the removal of 42,000 postpaid phone customers and 20,000 postpaid other customers in the second quarter of 2022.

(2)     In the first quarter of 2021, we acquired 11,000 postpaid phone customers and 1,000 postpaid other customers through our acquisition of an affiliate. In the third quarter of 2021, we acquired 716,000 postpaid phone customers and 90,000 postpaid other customers through our acquisition of the Wireless Assets from Shentel.

	Quarter							Nine Months Ended September 30,
(in thousands)	Q1 2021	Q2 2021	Q3 2021	Q4 2021	Q1 2022	Q2 2022	Q3 2022	2021	2022
Net customer additions
Postpaid phone customers	773	627	673	844	589	723	854	2,073	2,166
Postpaid other customers	437	649	586	906	729	933	773	1,672	2,435
Total postpaid customers	1,210	1,276	1,259	1,750	1,318	1,656	1,627	3,745	4,601
Prepaid customers	151	76	66	49	62	146	105	293	313
Total customers	1,361	1,352	1,325	1,799	1,380	1,802	1,732	4,038	4,914
Migrations from prepaid to postpaid plans	170	190	175	205	165	155	155	535	475
	Quarter														Nine Months Ended September 30,
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(in millions, except percentages)	Q1 2021		Q2 2021		Q3 2021		Q4 2021		Q1 2022		Q2 2022		Q3 2022		2021		2022
Devices sold or leased
Phones	9.6		9.6		9.8		11.6		9.7		8.8		8.4		29.0		26.9
Mobile broadband and IoT devices	1.0		1.4		1.5		2.2		1.8		1.9		2.0		3.9		5.7
Total	10.6		11.0		11.3		13.8		11.5		10.7		10.4		32.9		32.6
Postpaid device upgrade rate	4.8	%	4.7	%	4.3	%	5.8	%	4.8	%	4.1	%	3.8	%	13.8	%	12.7	%
	Quarter														Nine Months Ended September 30,
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Q1 2021		Q2 2021		Q3 2021		Q4 2021		Q1 2022		Q2 2022		Q3 2022		2021		2022
Churn
Postpaid phone churn	0.98	%	0.87	%	0.96	%	1.10	%	0.93	%	0.80	%	0.88	%	0.93	%	0.87	%
Prepaid churn	2.78	%	2.62	%	2.90	%	3.01	%	2.67	%	2.58	%	2.88	%	2.76	%	2.71	%

T-Mobile US, Inc.

Supplementary Operating and Financial Data

(Unaudited)

	Quarter							Nine Months Ended September 30,
(in thousands)	Q1 2021	Q2 2021	Q3 2021	Q4 2021	Q1 2022	Q2 2022	Q3 2022	2021	2022
Accounts, end of period
Total postpaid customer accounts (1)(2)	26,014	26,363	26,901	27,216	27,507	27,818	28,212	26,901	28,212

(1)     Customers impacted by the decommissioning of the legacy Sprint CDMA and LTE and T-Mobile UMTS networks have been excluded from our postpaid account base resulting in the removal of 57,000 postpaid accounts in the first quarter of 2022, 69,000 postpaid accounts in the second quarter of 2022.

(2)    In the first quarter of 2021, we acquired 4,000 postpaid accounts through our acquisition of an affiliate. In the third quarter of 2021, we acquired 270,000 postpaid accounts through our acquisition of the Wireless Assets of Shentel.

	Quarter							Nine Months Ended September 30,
(in thousands)	Q1 2021	Q2 2021	Q3 2021	Q4 2021	Q1 2022	Q2 2022	Q3 2022	2021	2022
Net account additions
Postpaid net account additions	257	348	268	315	348	380	394	873	1,122
	Quarter							Nine Months Ended September 30,
---	---	---	---	---	---	---	---	---	---
(in thousands)	Q1 2021	Q2 2021	Q3 2021	Q4 2021	Q1 2022	Q2 2022	Q3 2022	2021	2022
High speed internet customers, end of period
Postpaid high speed internet customers	193	288	422	646	975	1,472	1,960	422	1,960
Prepaid high speed internet customers	—	—	—	—	9	72	162	—	162
Total high speed internet customers, end of period	193	288	422	646	984	1,544	2,122	422	2,122
	Quarter							Nine Months Ended September 30,
---	---	---	---	---	---	---	---	---	---
(in thousands)	Q1 2021	Q2 2021	Q3 2021	Q4 2021	Q1 2022	Q2 2022	Q3 2022	2021	2022
High speed internet - net customer additions
Postpaid high speed internet customers	93	95	134	224	329	497	488	322	1,314
Prepaid high speed internet customers	—	—	—	—	9	63	90	—	162
Total high speed internet net customer additions	93	95	134	224	338	560	578	322	1,476
	Quarter																					Nine Months Ended September 30,
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(in millions, except percentages)	Q1 2021			Q2 2021			Q3 2021			Q4 2021			Q1 2022			Q2 2022			Q3 2022			2021			2022
Device Financing - Equipment Installment Plans
Gross EIP financed	$	3,379		$	3,348		$	3,434		$	5,282		$	4,247		$	3,580		$	3,758		$	10,161		$	11,585
EIP billings	2,556			2,639			2,795			3,126			3,333			3,447			3,717			7,990			10,497
EIP receivables, net	6,062			6,348			6,586			7,577			7,898			7,734			7,562			6,586			7,562
EIP receivables classified as prime	57		%	61		%	60		%	62		%	61		%	61		%	61		%	60		%	61		%
EIP receivables classified as prime (including EIP receivables sold)	56		%	59		%	57		%	58		%	58		%	57		%	58		%	57		%	58		%
Device Financing - Leased Devices
Lease revenues	$	1,041		$	914		$	770		$	623		$	487		$	386		$	311		$	2,725		$	1,184
Leased device depreciation	897			842			755			627			445			317			226			2,494			988
Leased devices transferred from inventory to property and equipment	485			333			214			166			129			83			67			1,032			279
Returned leased devices transferred from property and equipment to inventory	(445)			(416)			(309)			(267)			(183)			(95)			(65)			(1,170)			(343)
Leased devices included in property and equipment, net	3,962			3,037			2,188			1,459			960			631			408			2,188			408
Leased devices (units) included in property and equipment, net	12.4			10.7			9.0			7.1			5.5			4.4			3.6			9.0			3.6

T-Mobile US, Inc.

Supplementary Operating and Financial Data (continued)

(Unaudited)

	Quarter																					Nine Months Ended September 30,
(in millions, except percentages)	Q1 2021			Q2 2021			Q3 2021			Q4 2021			Q1 2022			Q2 2022			Q3 2022			2021			2022
Financial Measures
Service revenues	$	14,192		$	14,492		$	14,722		$	14,963		$	15,128		$	15,316		$	15,361		$	43,406		$	45,805
Equipment revenue	$	5,346		$	5,215		$	4,660		$	5,506		$	4,694		$	4,130		$	3,855		$	15,221		$	12,679
Lease revenues	1,041			914			770			623			487			386			311			2,725			1,184
Equipment sales	$	4,305		$	4,301		$	3,890		$	4,883		$	4,207		$	3,744		$	3,544		$	12,496		$	11,495
Total revenues	$	19,759		$	19,950		$	19,624		$	20,785		$	20,120		$	19,701		$	19,477		$	59,333		$	59,298
Net income (loss)	$	933		$	978		$	691		$	422		$	713		$	(108)		$	508		$	2,602		$	1,113
Net income (loss) margin	6.6		%	6.7		%	4.7		%	2.8		%	4.7		%	(0.7)		%	3.3		%	6.0		%	2.4		%
Adjusted EBITDA	$	6,905		$	6,906		$	6,811		$	6,302		$	6,950		$	7,004		$	7,039		$	20,622		$	20,993
Adjusted EBITDA margin	48.7		%	47.7		%	46.3		%	42.1		%	45.9		%	45.7		%	45.8		%	47.5		%	45.8		%
Core Adjusted EBITDA	$	5,864		$	5,992		$	6,041		$	5,679		$	6,463		$	6,618		$	6,728		$	17,897		$	19,809
Core Adjusted EBITDA margin	41.3		%	41.3		%	41.0		%	38.0		%	42.7		%	43.2		%	43.8		%	41.2		%	43.2		%
Cost of services	$	3,384		$	3,491		$	3,538		$	3,521		$	3,727		$	4,060		$	3,712		$	10,413		$	11,499
Merger-related costs	136			273			279			327			607			961			812			688			2,380
Cost of services excluding Merger-related costs	$	3,248		$	3,218		$	3,259		$	3,194		$	3,120		$	3,099		$	2,900		$	9,725		$	9,119
Cost of equipment sales	$	5,142		$	5,453		$	5,145		$	6,931		$	5,946		$	5,108		$	4,982		$	15,740		$	16,036
Merger-related costs	17			87			236			678			751			459			258			340			1,468
Cost of equipment sales excluding Merger-related costs	$	5,125		$	5,366		$	4,909		$	6,253		$	5,195		$	4,649		$	4,724		$	15,400		$	14,568
Selling, general and administrative	$	4,805		$	4,823		$	5,212		$	5,398		$	5,056		$	5,856		$	5,118		$	14,840		$	16,030
Merger-related costs	145			251			440			238			55			248			226			836			529
Selling, general and administrative excluding Merger-related costs	$	4,660		$	4,572		$	4,772		$	5,160		$	5,001		$	5,608		$	4,892		$	14,004		$	15,501
Total bad debt expense and losses from sales of receivables	$	64		$	60		$	109		$	234		$	256		$	373		$	300		$	233		$	929
Bad debt and losses from sales of receivables as a percentage of Total revenues	0.32		%	0.30		%	0.56		%	1.13		%	1.27		%	1.89		%	1.54		%	0.39		%	1.57		%
Cash purchases of property and equipment including capitalized interest	$	3,183		$	3,270		$	2,944		$	2,929		$	3,381		$	3,572		$	3,634		$	9,397		$	10,587
Capitalized interest	84			57			46			23			15			13			16			187			44
Net cash proceeds from securitization	22			18			(2)			1			(3)			(10)			(18)			38			(31)
Operating Measures
Postpaid ARPA	$	132.91		$	133.55		$	134.54		$	135.04		$	136.53		$	137.92		$	137.49		$	133.68		$	137.32
Postpaid phone ARPU	47.30			47.61			48.06			48.03			48.41			48.96			48.89			47.66			48.75
Prepaid ARPU	37.81			38.53			39.49			39.32			39.19			38.71			38.86			38.61			38.92

T-Mobile US, Inc.

Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures

(Unaudited)

This Investor Factbook includes non-GAAP financial measures. The non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information provided in accordance with GAAP. Reconciliations for the non-GAAP financial measures to the most directly comparable GAAP financial measures are provided below. T-Mobile is not able to forecast Net income on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting certain items that affect GAAP net income including, but not limited to, Income tax expense and Interest expense. Adjusted EBITDA and Core Adjusted EBITDA should not be used to predict Net income, as the difference between either of these measures and Net income is variable.

Adjusted EBITDA and Core Adjusted EBITDA are reconciled to Net income (loss) as follows:

	Quarter														Nine Months Ended September 30,
(in millions)	Q1 2021		Q2 2021		Q3 2021		Q4 2021		Q1 2022		Q2 2022		Q3 2022		2021		2022
Net income (loss)	$	933	$	978	$	691	$	422	$	713	$	(108)	$	508	$	2,602	$	1,113
Adjustments:
Interest expense, net	835		850		836		821		864		851		827		2,521		2,542
Other expense, net	125		1		60		13		11		21		3		186		35
Income tax expense (benefit)	246		277		(3)		(193)		218		(55)		(57)		520		106
Operating income	2,139		2,106		1,584		1,063		1,806		709		1,281		5,829		3,796
Depreciation and amortization	4,289		4,077		4,145		3,872		3,585		3,491		3,313		12,511		10,389
Stock-based compensation (1)	130		129		127		135		136		149		145		386		430
Merger-related costs	298		611		955		1,243		1,413		1,668		1,296		1,864		4,377
Impairment expense	—		—		—		—		—		477		—		—		477
Legal-related expenses (recoveries), net (2)	—		—		—		—		—		400		(19)		—		381
Loss on disposal group held for sale	—		—		—		—		—		—		1,071		—		1,071
Other, net (3)	49		(17)		—		(11)		10		110		(48)		32		72
Adjusted EBITDA	6,905		6,906		6,811		6,302		6,950		7,004		7,039		20,622		20,993
Lease revenues	(1,041)		(914)		(770)		(623)		(487)		(386)		(311)		(2,725)		(1,184)
Core Adjusted EBITDA	$	5,864	$	5,992	$	6,041	$	5,679	$	6,463	$	6,618	$	6,728	$	17,897	$	19,809

(1)Stock-based compensation includes payroll tax impacts and may not agree to stock-based compensation expense in the Condensed Consolidated Financial Statements. Additionally, certain stock-based compensation expenses associated with the Merger have been included in Merger-related costs.

(2)Legal-related expenses (recoveries), net, consists of the settlement of certain litigation associated with the August 2021 cyberattack and is presented net of insurance recoveries.

(3)Other, net, primarily consists of certain severance, restructuring and other expenses and income, including gains from the sale of IP addresses, not directly attributable to the Merger which would not be expected to reoccur or are not reflective of T-Mobile’s ongoing operating performance (“special items”), and are, therefore, excluded from Adjusted EBITDA and Core Adjusted EBITDA.

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T-Mobile US, Inc.

Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures (continued)

(Unaudited)

Net debt (excluding tower obligations) to the LTM Adjusted EBITDA and LTM Core Adjusted EBITDA ratios are calculated as follows:

(in millions, except net debt ratios)	Mar 31,<br>2021		Jun 30,<br>2021		Sep 30,<br>2021		Dec 31,<br>2021		Mar 31,<br>2022		Jun 30,<br>2022		Sep 30,<br>2022
Short-term debt	$	4,423	$	4,648	$	2,096	$	3,378	$	2,865	$	2,942	$	7,398
Short-term debt to affiliates	—		2,235		2,240		2,245		1,250		—		—
Short-term financing lease liabilities	1,013		1,045		1,154		1,120		1,121		1,220		1,239
Long-term debt	66,395		65,897		66,645		67,076		66,861		66,552		64,834
Long-term debt to affiliates	4,721		2,490		1,494		1,494		1,494		1,495		1,495
Financing lease liabilities	1,316		1,376		1,587		1,455		1,447		1,597		1,590
Less: Cash and cash equivalents	(6,677)		(7,793)		(4,055)		(6,631)		(3,245)		(3,151)		(6,888)
Net debt (excluding tower obligations)	$	71,191	$	69,898	$	71,161	$	70,137	$	71,793	$	70,655	$	69,668
Divided by: Last twelve months Adjusted EBITDA	$	27,797	$	27,686	$	27,368	$	26,924	$	26,969	$	27,067	$	27,295
Net debt (excluding tower obligations) to LTM Adjusted EBITDA Ratio	2.6		2.5		2.6		2.6		2.7		2.6		2.6
Divided by: Last twelve months Core Adjusted EBITDA	$	22,740	$	23,136	$	23,398	$	23,576	$	24,175	$	24,801	$	25,488
Net debt (excluding tower obligations) to LTM Core Adjusted EBITDA Ratio	3.1		3.0		3.0		3.0		3.0		2.8		2.7

Free Cash Flow is calculated as follows:

	Quarter														Nine Months Ended September 30,
(in millions)	Q1 2021		Q2 2021		Q3 2021		Q4 2021		Q1 2022		Q2 2022		Q3 2022		2021		2022
Net cash provided by operating activities	$	3,661	$	3,779	$	3,477	$	3,000	$	3,845	$	4,209	$	4,391	$	10,917	$	12,445
Cash purchases of property and equipment, including capitalized interest	(3,183)		(3,270)		(2,944)		(2,929)		(3,381)		(3,572)		(3,634)		(9,397)		(10,587)
Proceeds from sales of tower sites	—		31		—		9		—		—		—		31		—
Proceeds related to beneficial interests in securitization transactions	891		1,137		1,071		1,032		1,185		1,121		1,308		3,099		3,614
Cash payments for debt prepayment or debt extinguishment costs	(65)		(6)		(45)		—		—		—		—		(116)		—
Free Cash Flow	$	1,304	$	1,671	$	1,559	$	1,112	$	1,649	$	1,758	$	2,065	$	4,534	$	5,472

T-Mobile US, Inc.

Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures (continued)

(Unaudited)

The current guidance range for Free Cash Flow is calculated as follows:

	FY 2022
(in millions)	Guidance Range
Net cash provided by operating activities	$	16,300	$	16,500
Cash purchases of property and equipment, including capitalized interest	(13,700)		(13,900)
Proceeds related to beneficial interests in securitization transactions (1)	4,800		5,000
Free Cash Flow	$	7,400	$	7,600

(1)Free Cash Flow guidance does not assume any material net cash inflows from securitization in 2022.

The previous guidance range for Free Cash Flow was calculated as follows:

	FY 2022
(in millions)	Guidance Range
Net cash provided by operating activities	$	16,000	$	16,300
Cash purchases of property and equipment, including capitalized interest	(13,500)		(13,700)
Proceeds related to beneficial interests in securitization transactions (1)	4,800		5,000
Free Cash Flow	$	7,300	$	7,600

(1)Free Cash Flow guidance does not assume any material net cash inflows from securitization in 2022.

Definitions of Terms

Operating and financial measures are utilized by T-Mobile’s management to evaluate its operating performance and, in certain cases, its ability to meet liquidity requirements. Although companies in the wireless industry may not define measures in precisely the same way, T-Mobile believes the measures facilitate key operating performance comparisons with other companies in the wireless industry to provide management, investors and analysts with useful information to assess and evaluate past performance and assist in forecasting future performance.

1.Account - A postpaid account is generally defined as a billing account number that generates revenue. Postpaid accounts generally consist of customers that are qualified for postpaid service utilizing phones, High Speed Internet, wearables, DIGITS or other connected devices which include tablets and SyncUp products, where they generally pay after receiving service.

2.Customer - SIM number with a unique T-Mobile mobile identifier which is associated with an account that generates revenue. Customers generally are qualified either for postpaid service, where they generally pay after incurring service, or prepaid service, where they generally pay in advance.

3.Churn - The number of customers whose service was disconnected as a percentage of the average number of customers during the specified period further divided by the number of months in the period. The number of customers whose service was disconnected is presented net of customers that subsequently have their service restored within a certain period of time.

4.Customers per account - The number of postpaid customers as of the end of the period divided by the number of postpaid accounts as of the end of the period. An account may include postpaid phone, home internet, mobile broadband, and DIGITS customers.

5.Postpaid Average Revenue Per Account (Postpaid ARPA) - Average monthly postpaid service revenue earned per account. Postpaid service revenues for the specified period divided by the average number of postpaid accounts during the period, further divided by the number of months in the period.

Average Revenue Per User (ARPU) - Average monthly service revenue earned per customer. Service revenues for the specified period divided by the average number of customers during the period, further divided by the number of months in the period.

Postpaid phone ARPU excludes postpaid other customers and related revenues.

Service revenues - Postpaid, including handset insurance, prepaid, wholesale and other service revenues.

6.Cost of services - Costs directly attributable to providing wireless service through the operation of T-Mobile’s network, including direct switch and cell site costs, such as rent, network access and transport costs, utilities, maintenance, associated labor costs, long distance costs, regulatory program costs, roaming fees paid to other carriers and data content costs.

Cost of equipment sales - Costs of devices and accessories sold to customers and dealers, device costs to fulfill insurance and warranty claims, write-downs of inventory related to shrinkage and obsolescence, and shipping and handling costs.

Selling, general and administrative expenses - Costs not directly attributable to providing wireless service for the operation of sales, customer care and corporate activities. These include all commissions paid to dealers and retail employees for activations and upgrades, labor and facilities costs associated with retail sales force and administrative space, marketing and promotional costs, customer support and billing, bad debt expense and administrative support activities.

7.Net income margin - Net income margin is calculated as net income divided by service revenues.

8.Adjusted EBITDA and Core Adjusted EBITDA - Adjusted EBITDA represents earnings before Interest expense, net of Interest income, Income tax expense, Depreciation and amortization expense, stock-based compensation and certain income and expenses not reflective of T-Mobile’s ongoing operating performance. Core Adjusted EBITDA represents Adjusted EBITDA less lease revenues. Core Adjusted EBITDA and Adjusted EBITDA are non-GAAP financial measures utilized by T-Mobile’s management to monitor the financial performance of our operations. T-Mobile uses Core Adjusted EBITDA and Adjusted EBITDA as benchmarks to evaluate T-Mobile’s operating performance in comparison to its competitors. T-Mobile also uses Adjusted EBITDA internally as a measure to evaluate and compensate its personnel and management for their performance. Management believes analysts and investors use Core Adjusted EBITDA and Adjusted EBITDA as supplemental measures to evaluate overall operating performance and facilitate comparisons with other wireless communications companies because they are indicative of T-Mobile’s ongoing operating performance and trends by excluding the impact of Interest expense from financing, non-cash depreciation and amortization from capital investments, stock-based compensation, Merger-related costs, including network decommissioning costs, impairment expense, losses on disposal groups held for sale and certain legal-related recoveries and expenses, as they are not indicative of T-Mobile’s ongoing operating performance, as well as certain nonrecurring income and expenses. Management believes analysts and investors use Core Adjusted EBITDA because it normalizes for the transition in the company’s device financing strategy, by excluding the impact of lease revenues from Adjusted EBITDA, to align with the related depreciation expense on leased devices, which is excluded from the definition of Adjusted EBITDA. Core Adjusted EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as a substitute for Net income or any other measure of financial performance reported in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”).

9.Adjusted EBITDA Margin and Core Adjusted EBITDA Margin - Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by service revenues. Core Adjusted EBITDA margin is calculated as Core Adjusted EBITDA divided by service revenues.

10.Free Cash Flow - Net cash provided by operating activities less cash purchases of property and equipment, including proceeds from sales of tower sites and proceeds related to beneficial interests in securitization transactions and less cash payments for debt prepayment or debt extinguishment costs. Free Cash Flow is utilized by T-Mobile’s management, investors, and analysts to evaluate cash available to pay debt and provide further investment in the business. The reconciliation of Free Cash Flow to net cash provided by operating activities is detailed in the Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures schedule.

11.Net debt - Short-term debt, short-term debt to affiliates, long-term debt, and long-term debt (excluding tower obligations) to affiliates, short-term financing lease liabilities and financing lease liabilities, less cash and cash equivalents.

12.Merger-related costs include:

•Integration costs to achieve efficiencies in network, retail, information technology and back office operations, migrate customers to the T-Mobile network and billing systems and the impact of legal matters assumed as part of the Merger;

•Restructuring costs, including severance, store rationalization and network decommissioning; and

•Transaction costs, including legal and professional services related to the completion of the Merger and the acquisitions of affiliates.

Cautionary Statement Regarding Forward-Looking Statements

This communication includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including information concerning T-Mobile US, Inc.’s future results of operations, are forward-looking statements. These forward-looking statements are generally identified by the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “could” or similar expressions. Forward-looking statements are based on current expectations and assumptions, which are subject to risks and uncertainties and may cause actual results to differ materially from the forward-looking statements. Important factors that could affect future results and cause those results to differ materially from those expressed in the forward-looking statements include, among others, the following: natural disasters, public health crises, including adverse impact caused by the COVID-19 pandemic; competition, industry consolidation and changes in the market for wireless services; disruption, data loss or other security breaches, such as the criminal cyberattack we became aware of in August 2021; our inability to take advantage of technological developments on a timely basis; our inability to retain or motivate key personnel, hire qualified personnel or maintain our corporate culture; system failures and business disruptions, allowing for unauthorized use of or interference with our network and other systems; the scarcity and cost of additional wireless spectrum, and regulations relating to spectrum use; the impacts of the actions we have taken and conditions we have agreed to in connection with the regulatory proceedings and approvals of the Transactions (as defined below), including the acquisition by DISH Network Corporation (“DISH”) of the prepaid wireless business operated under the Boost Mobile and Sprint prepaid brands (excluding the Assurance brand Lifeline customers and the prepaid wireless customers of Shenandoah Personal Communications Company LLC (“Shentel”) and Swiftel Communications, Inc.), including customer accounts, inventory, contracts, intellectual property and certain other specified assets (the “Prepaid Business”), and the assumption of certain related liabilities (collectively, the “Prepaid Transaction”), the complaint and proposed final judgment (the “Consent Decree”) agreed to by us, Deutsche Telekom AG (“DT”), Sprint Corporation, now known as Sprint LLC (“Sprint”), SoftBank Group Corp. (“SoftBank”) and DISH with the U.S. District Court for the District of Columbia, which was approved by the Court on April 1, 2020, the proposed commitments filed with the Secretary of the Federal Communications Commission (“FCC”), which we announced on May 20, 2019, certain national security commitments and undertakings, and any other commitments or undertakings entered into, including but not limited to, those we have made to certain states and nongovernmental organizations (collectively, the “Government Commitments”), and the challenges in satisfying the Government Commitments in the required time frames and the significant cumulative costs incurred in tracking and monitoring compliance; adverse economic, political or market conditions in the U.S. and international markets, including those caused by the COVID-19 pandemic; our inability to manage the ongoing commercial and transition services arrangements entered into in connection with the Prepaid Transaction, and known or unknown liabilities arising in connection therewith; the timing and effects of any future acquisition, disposition, investment, or merger involving us; any disruption or failure of our third parties (including key suppliers) to provide products or services for the operation of our business; our substantial level of indebtedness and our inability to service our debt obligations in accordance with their terms or to comply with the restrictive covenants contained therein; changes in the credit market conditions, credit rating downgrades or an inability to access debt markets; restrictive covenants including the agreements governing our indebtedness and other financings; the risk of future material weaknesses we may identify while we continue to work to integrate the two companies following the Transactions, or any other failure by us to maintain effective internal controls, and the resulting significant costs and reputational damage; any changes in regulations or in the regulatory framework under which we operate; laws and regulations relating to the handling of privacy and data protection; unfavorable outcomes and increased costs from existing or future legal proceedings, including these proceedings and inquiries relating to the criminal cyberattack we became aware of in August 2021; the possibility that we may be unable to adequately protect our intellectual property rights or be accused of infringing the intellectual property rights of others; our offering of regulated financial services products and exposure to a wide variety of state and federal regulations; new or amended tax laws or regulations or administrative interpretations and judicial decisions affecting the scope or application of tax laws or regulations; our exclusive forum provision as provided in our Certificate of Incorporation; interests of our significant stockholders that may differ from the interests of other stockholders; future sales of our common stock by DT and SoftBank and our inability to attract additional equity financing outside the United States due to foreign ownership limitations by the FCC; our stock repurchase program may not be fully consummated, and may not enhance long-term stockholder value; failure to realize the expected benefits and synergies of the merger with Sprint, pursuant to the Business Combination Agreement with Sprint and the other parties named therein (as amended, the “Business Combination Agreement”) and the other transactions contemplated by the Business Combination Agreement (collectively, the “Transactions”) in the expected time frames or in the amounts anticipated; any delay and costs of, or difficulties in, integrating our business and Sprint's business and operations, and unexpected additional operating costs, customer loss and business disruptions, including challenges in maintaining relationships with employees, customers, suppliers or vendors; unanticipated difficulties, disruption, or significant delays in our long-term strategy to migrate Sprint's legacy customers onto T-Mobile's existing billing platforms; and other risks as disclosed in our most recent annual report on Form 10-K, 10-Q and other filings with the Securities and Exchange Commission. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law.

About T-Mobile US, Inc.

T-Mobile US, Inc. (NASDAQ: TMUS) is America’s supercharged Un-carrier, delivering an advanced 4G LTE and transformative nationwide 5G network that will offer reliable connectivity for all. T-Mobile’s customers benefit from its unmatched combination of value and quality, unwavering obsession with offering them the best possible service experience and undisputable drive for disruption that creates competition and innovation in wireless and beyond. Based in Bellevue, Wash., T-Mobile provides services through its subsidiaries and operates its flagship brands, T-Mobile and Metro by T-Mobile. For more information please visit: http://www.t-mobile.com.