8-K - TMUS - Equibles

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): July 27, 2023

New logo.jpg

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 July 27, 2023, T-Mobile US, Inc. (the “Company”) issued a press release announcing the financial and operating results of the Company for the quarter ended June 30, 2023. 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 July 27, 2023, entitled "T-Mobile Delivers Industry-Leading Growth in Customers and Profitability in Q 2 2023 ,Raises 2023 Guidance Again "
99.2	Investor Factbook of T-Mobile US, Inc.Second Quarter 2023 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.
July 27, 2023	/s/ Peter Osvaldik
	Peter Osvaldik<br>Executive Vice President and Chief Financial Officer

Document

EXHIBIT 99.1

T-Mobile Delivers Industry-Leading Growth in Customers and Profitability

in Q2 2023, Raises 2023 Guidance Again

Un-carrier Reaches Another Milestone with the Lowest Postpaid Phone Churn in the Industry

for the First Time Ever, while Delivering the Highest Q2 Postpaid Phone Net Adds in Eight Years

Industry-Leading Customer Growth Fueled by Network Leadership and Launch of Phone Freedom(1)

•Postpaid net account additions of 299 thousand, best in industry

•Postpaid net customer additions of 1.6 million, best in industry and raising guidance

•Postpaid phone net customer additions of 760 thousand, best in industry and best Q2 in eight years

•Postpaid phone churn of 0.77%, best in industry for the first time ever and a record low

•High Speed Internet net customer additions of 509 thousand, more than AT&T, Verizon, Comcast and Charter combined for the 5th consecutive quarter

Differentiated Profitable Growth Strategy Drives Industry-Leading Financial Performance

•Service revenues of $15.7 billion grew 3% year-over-year and Postpaid service revenues of $12.1 billion grew 5% year-over-year, both best in industry growth

•Net income of $2.2 billion grew $2.3 billion year-over-year and diluted earnings per share (“EPS”) of $1.86 grew $1.95 year-over-year, best in industry growth

•Core Adjusted EBITDA(2) of $7.3 billion grew 11% year-over-year, best in industry growth and raising guidance

•Net cash provided by operating activities of $4.4 billion grew 3% year-over-year, raising guidance

•Adjusted Free Cash Flow(2) of $2.9 billion grew 64% year-over-year

•Repurchased 25.2 million shares of common stock in Q2 2023 for $3.5 billion

T-Mobile Reigns as Nationwide Overall Network Leader and Largest, Fastest and Most-Awarded 5G Network

•Clean sweep across every category for overall network performance for the third quarter in a row from Ookla, along with continued wins across multiple overall network and 5G categories from Opensignal and umlaut

•5G network covers 98% of Americans and Ultra-Capacity 5G covers 285 million people

Bellevue, WA — July 27, 2023 — T-Mobile US, Inc. (NASDAQ: TMUS) reported second quarter 2023 results today, delivering industry-best growth in postpaid customers driven by growth in postpaid phone gross additions coupled with the lowest postpaid phone churn in the industry for the first time ever - fueled by the company’s unique combination of network and value leadership. The company continues to translate its industry-leading customer growth into best-in-class growth in Service revenues, Net income, and Core Adjusted EBITDA, while raising full-year 2023 guidance. Furthermore, T-Mobile continues delivering on its plan to return value to stockholders, buying back $3.5 billion of common stock throughout the quarter.

“If you were wondering how T-Mobile would perform if growth in our category moderated, I think you’ll find the answer in our latest results — including our best Q2 postpaid phone net adds in eight years, the lowest postpaid phone churn in the industry for the first-time ever, and industry-leading financial growth,” said Mike Sievert, CEO of T-Mobile. “We’ve set audacious goals and delivered a durable and differentiated plan that is working just as we said it would. And now, fueled by our unique growth opportunities, the momentum of our latest Un-carrier moves, and an unquenchable desire to be the very best at delivering for customers, we are the one to watch — with no plans to slow down.”

___________________________________________________________

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

(2)Core Adjusted EBITDA and Adjusted 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. Starting in Q1 2023, we renamed Free Cash Flow to Adjusted Free Cash Flow. This change in name did not result in any change to the definition or calculation of this non-GAAP financial measure.

Industry-Leading Customer Growth Fueled by Network Leadership and Launch of Phone Freedom(1)

•Postpaid net account additions of 299 thousand decreased 81 thousand year-over-year, reflecting continued industry-leading share of net account additions in an environment of moderating industry growth and fewer High Speed Internet only net account additions.

•Postpaid net customer additions of 1.6 million decreased 95 thousand year-over-year.

•Postpaid phone net customer additions of 760 thousand increased 37 thousand year-over-year, driven by an increase in postpaid phone gross additions and churn improvement. Postpaid phone churn of 0.77% improved 3 bps year-over-year.

•Prepaid net customer additions of 124 thousand decreased 22 thousand year-over-year, and Prepaid churn was 2.62%.

•High Speed Internet net customer additions of 509 thousand decreased 51 thousand year-over-year. T-Mobile ended the quarter with 3.7 million High Speed Internet customers.

•Total net customer additions of 1.7 million decreased 117 thousand year-over-year. The total customer count increased to a record high of 116.6 million.

	Quarter						Six Months Ended June 30,
(in thousands, except churn)	Q2 2023		Q1 2023		Q2 2022		2023		2022
Postpaid net account additions	299		287		380		586		728
Total net customer additions	1,685		1,319		1,802		3,004		3,182
Postpaid net customer additions	1,561		1,293		1,656		2,854		2,974
Postpaid phone net customer additions	760		538		723		1,298		1,312
Postpaid other net customer additions (2)	801		755		933		1,556		1,662
Prepaid net customer additions (2)	124		26		146		150		208
Total customers, end of period (2)(3)	116,602		114,917		110,023		116,602		110,023
Postpaid phone churn	0.77	%	0.89	%	0.80	%	0.83	%	0.86	%
Prepaid churn	2.62	%	2.76	%	2.58	%	2.69	%	2.62	%
High Speed Internet net customer additions	509		523		560		1,032		898
Total High Speed Internet customers, end of period	3,678		3,169		1,544		3,678		1,544

(2)Includes High Speed Internet customers.

(3)The total base adjustment in the second quarter of 2022 was a reduction of 1,320,000 total customers. 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.

Differentiated Profitable Growth Strategy Drives Industry-Leading Financial Performance

•Total service revenues of $15.7 billion increased 3% year-over-year and Postpaid service revenues of $12.1 billion increased 5% year-over-year.

•Net income of $2.2 billion increased $2.3 billion year-over-year, which included lower Merger-related costs, net of tax, of $207 million and a non-cash impairment expense of $358 million in the prior year related to the Wireline Business. Diluted EPS of $1.86 per share increased $1.95 per share year-over-year.

•Core Adjusted EBITDA of $7.3 billion increased 11% year-over-year, primarily due to Service revenue growth and increased synergy realization.

•Net cash provided by operating activities of $4.4 billion increased 3% year-over-year, which included cash payments for Merger-related costs of $728 million.

•Cash purchases of property and equipment, including capitalized interest, of $2.8 billion decreased 22% year-over-year, driven by increased capital efficiencies from accelerated investments in the nationwide 5G network in 2022.

•Adjusted Free Cash Flow of $2.9 billion increased 64% year-over-year, which included cash payments for Merger-related costs of $728 million.

•Common stock repurchases of 25.2 million shares for $3.5 billion in Q2 2023. As of July 21, 2023, the cumulative total repurchased was 83.5 million shares for $11.8 billion with remaining authorization of up to $2.2 billion through the end of September 2023.

	Quarter							Six Months Ended June 30,					Q2 2023<br><br>vs.<br><br>Q1 2023		Q2 2023<br><br>vs.<br><br>Q2 2022		YTD 2023<br><br>vs.<br><br>YTD 2022
(in millions, except EPS)	Q2 2023		Q1 2023		Q2 2022		2023			2022
Total service revenues	$	15,738	$	15,546	$	15,316		$	31,284		$	30,444	1.2	%	2.8	%	2.8	%
Postpaid service revenues	12,070		11,862		11,445			23,932			22,646		1.8	%	5.5	%	5.7	%
Total revenues	19,196		19,632		19,701			38,828			39,821		(2.2)	%	(2.6)	%	(2.5)	%
Net income (loss)	2,221		1,940		(108)			4,161			605		14.5	%	NM		587.8	%
Diluted EPS	1.86		1.58		(0.09)			3.44			0.48		17.7	%	NM		616.7	%
Adjusted EBITDA	7,405		7,199		7,004			14,604			13,954		2.9	%	5.7	%	4.7	%
Core Adjusted EBITDA	7,336		7,052		6,618			14,388			13,081		4.0	%	10.8	%	10.0	%
Net cash provided by operating activities	4,355		4,051		4,209			8,406			8,054		7.5	%	3.5	%	4.4	%
Cash purchases of property and equipment, including capitalized interest	2,789		3,001		3,572			5,790			6,953		(7.1)	%	(21.9)	%	(16.7)	%
Adjusted Free Cash Flow	2,877		2,401		1,758			5,278			3,407		19.8	%	63.7	%	54.9	%

NM - Not Meaningful

T-Mobile Reigns as Nationwide Overall Network Leader and Largest, Fastest and Most-Awarded 5G Network

T-Mobile’s 5G leadership has translated into overall network leadership while 5G is increasingly becoming the overall network experience for customers. The Un-carrier continues its third-party report winning streak for overall network and 5G:

•Ookla: In its latest Speedtest Global Index Market Analysis, T-Mobile dominated the competition, winning every single category for overall network for the third quarter in a row with undefeated 5G performance. T-Mobile’s network earned the top ranking for fastest mobile network, lowest latency, most consistent, best mobile video, best 5G performance and best 5G consistency.

•Opensignal: In its latest Network Experience Reports, T-Mobile took home several wins measuring overall network performance and 5G performance, including fastest download speeds (including 5G download speeds more than twice as fast as Verizon and AT&T), best overall live video experience, best overall consistent quality and best 5G availability.

•umlaut: In its latest 5G Network Performance Audit Report, T-Mobile once again received top honors with the overall highest 5G score including best 5G coverage, stability, and speeds.

T-Mobile’s 5G network covers 326 million people with more geographic coverage than AT&T and Verizon combined. 285 million people nationwide are covered by T-Mobile’s super-fast Ultra Capacity 5G, and the Un-carrier plans to reach 300 million people with Ultra Capacity this year.

Note: See 5G device, coverage, & access details at T-Mobile.com. Fastest: Based on median, overall combined 5G speeds according to analysis by Ookla® of Speedtest Intelligence® data 5G download speeds for Q2 2023. Ookla trademarks used under license and reprinted with permission.

Raising 2023 Guidance

•Postpaid net customer additions are expected to be between 5.6 million and 5.9 million, an increase from prior guidance of 5.3 million to 5.7 million.

•Core Adjusted EBITDA, which is Adjusted EBITDA less lease revenues, is expected to be between $28.9 billion and $29.2 billion, an increase from prior guidance of $28.8 billion to $29.2 billion.

•Merger synergies are expected to be approximately $7.5 billion, an increase from prior guidance of $7.3 billion to $7.5 billion.

•Merger-related costs are expected to be approximately $1.0 billion before taxes. These costs are excluded from Core Adjusted EBITDA but will impact Net income, Net cash provided by operating activities and Adjusted Free Cash Flow.

•Net cash provided by operating activities, including payments for Merger-related costs, is expected to be between $18.0 billion and $18.3 billion, an increase from prior guidance of $17.9 billion to $18.3 billion.

•Cash purchases of property and equipment, including capitalized interest, are expected to be between $9.5 billion and $9.7 billion an increase from the prior guidance of $9.4 billion to $9.7 billion.

•Adjusted Free Cash Flow, including payments for Merger-related costs, is expected to be between $13.2 billion and $13.6 billion. Adjusted 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)	5,300		5,700		5,600		5,900		250
Net income (1)	N/A		N/A		N/A		N/A		N/A
Core Adjusted EBITDA (2)	$	28,800	$	29,200	$	28,900	$	29,200	$	50
Merger synergies	7,300		7,500		~7,500				100
Merger-related costs (3)	~1,000				~1,000				—
Net cash provided by operating activities	17,900		18,300		18,000		18,300		50
Capital expenditures (4)	9,400		9,700		9,500		9,700		50
Adjusted Free Cash Flow (5)	13,200		13,600		13,200		13,600		—

(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 of approximately $300 million for 2023.

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

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

(5)Adjusted Free Cash Flow guidance does not assume any material net cash inflows from securitization in 2023.

Doing Good — The Un-carrier Way — Industry Leader in Building a More Connected and Sustainable Future

T-Mobile published its most recent annual Corporate Responsibility Report, detailing the ongoing initiatives to positively impact people, communities and the planet. The company continues to stay true to its commitment to use its network, scale and resources for good, building a more connected, equitable and sustainable future:

•T-Mobile landed #1 out of 400 companies on USA Today’s first-ever America’s Climate Leaders list, a reflection of the Un-carrier’s commitment to reducing its environmental footprint.

•The Un-carrier was the highest ranked telecommunications services provider for corporate reputation in the Axios Harris Poll for the most visible brands in America in 2023.

•T-Mobile named 25 more recipients of its Hometown Grant program, marking 200 towns supported throughout the United States since the start of 2021 with nearly $9 million distributed among 42 states.

Financial Results

For more details on T-Mobile’s Q2 2023 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, July 27, 2023, 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: 877-390-2342

•International: +1 309-216-6532

Access via Webcast

The earnings call will be broadcasted live and can be replayed via the Investor Relations website at https://investor.t-mobile.com.

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

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: competition, industry consolidation and changes in the market for wireless communication services and other forms of connectivity; criminal cyberattacks, disruption, data loss or other security breaches; 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 difficulties in maintaining multiple billing systems following the Merger (as defined below) and any unanticipated difficulties, disruption, or significant delays in our long-term strategy to convert Sprint’s legacy customers onto T-Mobile’s billing platforms; 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, and the assumption of certain related liabilities (collectively, the “Prepaid Transaction”), the complaint and proposed final judgment 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 over multiple years; adverse economic, political or market conditions in the U.S. and international markets, including changes resulting from increases in inflation or interest rates, supply chain disruption, impacts of current geopolitical instability caused by the war in Ukraine; 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, divestiture, 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 inability to fully realize the synergy benefits from the merger (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 frame; 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, 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 regulatory or legal proceedings; 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 wireless licenses, including those controlled through leasing agreements, are subject to renewal and may be revoked; our exclusive forum provision as provided in our Certificate of Incorporation; interests of DT, our controlling stockholder, 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 2022 Stock Repurchase Program may not be fully consummated, our share repurchase program may not enhance long-term stockholder value 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”).

For our environmental, climate, or other “Environmental, Social, and Governance (ESG)” targets, goals and commitments outlined in this communication, we face additional risks and uncertainties, including unexpected delays, difficulties, and expenses in executing against such targets, goals and commitments, 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 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.

In addition, some of the statements contained in this communication may rely on third-party information and projections that management believes to be reputable; however, we do not independently verify or audit this information. This communication also 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 communication 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 communication in relation to those statements. Website references throughout this communication are provided for convenience only, and the content on the referenced websites is not incorporated by reference into this communication.

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												Six Months Ended June 30,
(in millions)	Q1 2022		Q2 2022		Q3 2022		Q4 2022		Q1 2023		Q2 2023		2022		2023
Net income (loss)	$	713	$	(108)	$	508	$	1,477	$	1,940	$	2,221	$	605	$	4,161
Adjustments:
Interest expense, net	864		851		827		822		835		861		1,715		1,696
Other expense (income), net	11		21		3		(2)		(9)		(6)		32		(15)
Income tax expense (benefit)	218		(55)		(57)		450		631		717		163		1,348
Operating income	1,806		709		1,281		2,747		3,397		3,793		2,515		7,190
Depreciation and amortization	3,585		3,491		3,313		3,262		3,203		3,110		7,076		6,313
Stock-based compensation (1)	136		149		145		146		173		155		285		328
Merger-related costs	1,413		1,668		1,296		592		358		276		3,081		634
Impairment expense	—		477		—		—		—		—		477		—
Legal-related expenses (recoveries), net (2)	—		400		(19)		10		(43)		—		400		(43)
Loss (gain) on disposal group held for sale	—		—		1,071		16		(42)		17		—		(25)
Other, net (3)	10		110		(48)		55		153		54		120		207
Adjusted EBITDA	6,950		7,004		7,039		6,828		7,199		7,405		13,954		14,604
Lease revenues	(487)		(386)		(311)		(246)		(147)		(69)		(873)		(216)
Core Adjusted EBITDA	$	6,463	$	6,618	$	6,728	$	6,582	$	7,052	$	7,336	$	13,081	$	14,388

(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 are not reflective of T-Mobile’s core business activities (“special items”), 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, 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 Core 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 to 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, loss (gain) on disposal group held for sale and certain legal-related recoveries and expenses, as well as other special income and expenses which are not reflective of T-Mobile’s core business activities. 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)

Adjusted Free Cash Flow is calculated as follows:

	Quarter																		Six Months Ended June 30,
(in millions, except percentages)	Q1 2022			Q2 2022			Q3 2022			Q4 2022			Q1 2023			Q2 2023			2022			2023
Net cash provided by operating activities	$	3,845		$	4,209		$	4,391		$	4,336		$	4,051		$	4,355		$	8,054		$	8,406
Cash purchases of property and equipment, including capitalized interest	(3,381)			(3,572)			(3,634)			(3,383)			(3,001)			(2,789)			(6,953)			(5,790)
Proceeds from sales of tower sites	—			—			—			9			6			2			—			8
Proceeds related to beneficial interests in securitization transactions	1,185			1,121			1,308			1,222			1,345			1,309			2,306			2,654
Adjusted Free Cash Flow	$	1,649		$	1,758		$	2,065		$	2,184		$	2,401		$	2,877		$	3,407		$	5,278
Net cash provided by operating activities margin (Net cash provided by operating activities divided by Service revenues)	25.4		%	27.5		%	28.6		%	27.9		%	26.1		%	27.7		%	26.5		%	26.9		%
Adjusted Free Cash Flow margin (Adjusted Free Cash Flow divided by Service revenues)	10.9		%	11.5		%	13.4		%	14.1		%	15.4		%	18.3		%	11.2		%	16.9		%

Adjusted 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. Adjusted Free Cash Flow is utilized by T-Mobile’s management, investors and analysts to evaluate cash available to pay debt, repurchase shares and provide further investment in the business. Starting in Q1 2023, we renamed Free Cash Flow to Adjusted Free Cash Flow. This change in name did not result in any change to the definition or calculation of this non-GAAP measure.

Adjusted Free Cash Flow margin - Adjusted Free Cash Flow divided by Service revenues. Adjusted Free Cash Flow Margin is utilized by T-Mobile’s management, investors, and analysts to evaluate the company’s ability to convert service revenue efficiently into cash available to pay debt, repurchase shares and provide further investment in the business.

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

	FY 2023
(in millions)	Guidance Range
Net cash provided by operating activities	$	18,000	$	18,300
Cash purchases of property and equipment, including capitalized interest	(9,500)		(9,700)
Proceeds related to beneficial interests in securitization transactions (1)	4,700		5,000
Adjusted Free Cash Flow	$	13,200	$	13,600

(1)Adjusted Free Cash Flow guidance does not assume any material net cash inflows from securitization in 2023.

T-Mobile US, Inc.

Operating Measures

(Unaudited)

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

	Quarter												Six Months Ended June 30,
(in dollars)	Q1 2022		Q2 2022		Q3 2022		Q4 2022		Q1 2023		Q2 2023		2022		2023
Postpaid ARPA	$	136.53	$	137.92	$	137.49	$	137.78	$	138.04	$	138.94	$	137.23	$	138.49
Postpaid phone ARPU	48.41		48.96		48.89		48.86		48.63		48.84		48.69		48.73
Prepaid ARPU	39.19		38.71		38.86		38.29		37.98		37.98		38.95		37.98

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.

Document

EXHIBIT 99.2

2
3	Highlights
---	---
4	Customer Metrics
7	Financial Metrics
13	Capital Structure
14	Merger & Integration
15	Guidance
16	Contacts
17	Financial and Operational Tables
3
---

(1)AT&T Inc. historically does not disclose postpaid net account additions. Comcast and Charter do not disclose postpaid phone net additions. Industry leading claims are based on consensus expectations if results are not yet reported.

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

Year-Over-Year

Continued growth in Postpaid net accounts with a decrease in net additions primarily due to:

■Continued moderation of industry growth

■Fewer High Speed Internet only net account additions

Sequential

Continued growth in Postpaid net accounts with an increase in net additions primarily due to:

■Lower deactivations

Year-Over-Year

Postpaid ARPA increased 1% primarily due to:

■An increase in customers per account, including continued adoption of High Speed Internet

■Higher premium services, primarily high-end rate plans

■Partially offset by increased promotional activity, an increase in High Speed Internet only accounts and growth in rate plans for specific customer cohorts (Business, Military, First Responders)

Postpaid phone ARPU was relatively flat due to:

■Increased promotional activity and growth in rate plans for specific customer cohorts (Business, Military, First Responders)

■Mostly offset by higher premium services, primarily high-end rate plans

Sequential

Postpaid ARPA increased 1% primarily due to:

■An increase in customers per account, including continued adoption of High Speed Internet

■Higher premium services, primarily high-end rate plans

■Partially offset by increased promotional activity, an increase in High Speed Internet only accounts and growth in rate plans for specific customer cohorts (Business, Military, First Responders)

Sequential

Postpaid phone ARPU was relatively flat due to:

■Higher premium services, primarily high-end rate plans

■Partially offset by increased promotional activity and growth in rate plans for specific customer cohorts (Business, Military, First Responders)

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

■Lower churn

Postpaid other net customer additions decreased primarily due to:

■Lower net additions from mobile internet devices

■Lower net additions from High Speed Internet

Sequential

Postpaid phone net customer additions increased due to:

■Lower churn

Postpaid other net customer additions increased primarily due to:

■Higher net additions from wearables and other connected devices

■Partially offset by lower net additions from mobile internet devices

Year-Over-Year

Postpaid phone churn decreased 3 basis points primarily due to:

■Improved customer retention driven by a differentiated value proposition and network experience

Sequential

Postpaid phone churn decreased 12 basis points primarily due to:

■Seasonal trends

■Improved customer retention driven by a differentiated value proposition and network experience

Postpaid Phone Churn

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

Year-Over-Year

Prepaid net customer additions decreased primarily due to:

■Continued moderation of industry growth

■Continued industry migration of prepaid to postpaid

Sequential

Prepaid net customer additions increased primarily due to:

■Seasonally lower churn

■Higher net additions from summer travelers

Year-Over-Year

High Speed Internet net customer additions decreased primarily due to:

■Increased deactivations from a growing customer base

■Mostly offset by continued growth in gross additions driven by increasing customer demand

Sequential

High Speed Internet net customer additions decreased primarily due to:

■Increased deactivations from a growing customer base

■Mostly offset by continued growth in gross additions driven by increasing customer demand and lower churn

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

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

Year-Over-Year

Service revenues increased 3% primarily due to:

■Increase in Postpaid service revenues

■Partially offset by a decrease in Wholesale and other service revenues, including the impact from the sale of the Wireline Business

Sequential

Service revenues increased 1% primarily due to:

■Increase in Postpaid service revenues

■Partially offset by a decrease in Wholesale and other service revenues, including the impact from the sale of the Wireline Business

Year-Over-Year

Postpaid service revenues increased 5% primarily due to:

■Higher average postpaid accounts

■Higher postpaid ARPA

Sequential

Postpaid service revenues increased 2% primarily due to:

■Higher average postpaid accounts

■Higher postpaid ARPA

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

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

Year-Over-Year

Equipment revenues decreased 23% primarily due to:

■Lower lease revenues

■A lower number of devices sold primarily driven by higher postpaid upgrades in the prior year related to Sprint customers moving to devices that are compatible with the T-Mobile network, as well as longer device lifecycles, and lower prepaid sales

■Partially offset by higher average revenue per device sold, primarily driven by offers for Sprint customers in the prior year period moving to devices that are compatible with the T-Mobile network

Sequential

Equipment revenues decreased 15% primarily due to:

■Lower lease revenues

■A lower number of devices sold due to seasonally lower postpaid upgrades, as well as longer device lifecycles

Year-Over-Year

Cost of equipment sales, exclusive of Depreciation and Amortization (D&A), decreased 20% primarily due to:

■A lower number of devices sold primarily driven by higher postpaid upgrades in the prior year related to Sprint customers moving to devices that are compatible with the T-Mobile network, included in Merger-related costs, as well as longer device lifecycles, and lower prepaid sales

Sequential

Cost of equipment sales, exclusive of D&A, decreased 11% primarily due to:

■A lower number of devices sold due to seasonally lower postpaid upgrades, as well as longer device lifecycles

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, decreased 28% primarily due to:

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

■Higher realized Merger synergies

■Lower costs due to the sale of the Wireline Business

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

Sequential

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

■Lower costs due to the sale of the Wireline Business

Year-Over-Year

SG&A expense decreased 10% primarily due to:

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

■Lower Merger-related costs and higher realized Merger synergies

■Lower severance and restructuring expenses

■Lower bad debt expense

■Partially offset by higher advertising expenses and higher commission amortization

Sequential

SG&A expense decreased 3% primarily due to:

■Lower severance and restructuring expenses

■Partially offset by higher advertising expenses

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 $2.2 billion and Diluted earnings per share was $1.86 in Q2 2023, 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 Q2 2023 of $207 million, or $0.17 per share, compared to $1.3 billion, or $1.00 per share, in Q2 2022

■Impairment expense of $358 million, or $0.29 per share, in Q2 2022, compared to no impairment expense in Q2 2023

Sequential

Net income was $2.2 billion and Diluted earnings per share was $1.86 in Q2 2023, compared to $1.9 billion and $1.58 in Q1 2023, primarily due to the factors described above and included the following, net of tax:

■Merger-related costs in Q2 2023 of $207 million, or $0.17 per share, compared to $268 million, or $0.22 per share, in Q1 2023

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

*Excludes Merger-related costs (see detail on page 14) and other special items

Year-Over-Year

Core Adjusted EBITDA increased 11% primarily due to:

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

■Higher Service revenues

■Lower Cost of services, excluding Merger-related costs

■Partially offset by lower Equipment revenues, excluding Lease revenues

Sequential

Core Adjusted EBITDA increased 4% primarily due to:

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

■Higher Service revenues

■Lower Cost of services, excluding Merger-related costs

■Partially offset by lower Equipment revenues, excluding Lease revenues

Year-Over-Year

Net cash provided by operating activities increased 3% 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

Sequential

Net cash provided by operating activities increased 8% primarily due to:

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

■Lower net cash outflows from changes in working capital

The impact of net payments for Merger-related costs on Net cash provided by operating activities was $728 million in Q2 2023 compared to $484 million in Q1 2023 and $907 million in Q2 2022.

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

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

Year-Over-Year

Cash purchases of property and equipment, including capitalized interest, decreased 22% primarily due to:

■Increased capital efficiency following our accelerated nationwide 5G network build-out

Sequential

Cash purchases of property and equipment, including capitalized interest, decreased 7% primarily due to:

■Increased capital efficiency following our accelerated nationwide 5G network build-out

Year-Over-Year

Adjusted Free Cash Flow increased 64% primarily due to:

■Lower Cash purchases of property and equipment

■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.

Sequential

Adjusted Free Cash Flow increased 20% primarily due to:

■Higher Net cash provided by operating activities

■Lower Cash purchases of property and equipment

The impact of net payments for Merger-related costs on Adjusted Free Cash Flow was $728 million in Q2 2023 compared to $484 million in Q1 2023 and $907 million in Q2 2022.

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

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

Total debt, excluding tower obligations, at the end of Q2 2023 was $80.3 billion.

Net debt, excluding tower obligations, at the end of Q2 2023 was $73.7 billion.

■On September 8, 2022, our Board of Directors authorized a share repurchase program for up to $14.0 billion of our common stock through September 30, 2023

■During Q2 2023, 25.2 million shares were repurchased for $3.5 billion

■On a cumulative basis, as of July 21, 2023, a total of 83.5 million shares were repurchased for $11.8 billion

■On May 19, 2023, S&P upgraded T-Mobile’s senior unsecured credit rating to BBB (stable) from BBB- (positive)

■Subsequent to June 30, 2023, on July 25, 2023, we established an unsecured short-term commercial paper program with the ability to borrow up to $2.0 billion from time to time. This program will supplement our other available external financing arrangements and proceeds are expected to be used for general corporate purposes.

14
Merger-Related Synergies Guidance
---
Merger synergies are expected to be approximately $7.5 billion in 2023:<br><br>▪Approximately $2.7 billion of SG&A expense reductions<br><br>▪Approximately $3.2 billion of cost of service expense reductions achieved through network efficiencies<br><br>▪Approximately $1.6 billion of savings related to avoided network expenses
Merger-Related Costs
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(in millions, excl. EPS)

	Q2 2022			Q3 2022			Q4 2022			Q1 2023			Q2 2023					%					%
Cost of services		$	961		$	812		$	290		$	208		$	178		(30)		(14)	%		(783)		(81)	%
Cost of equipment sales		459			258			56			(9)			—					(100)	%				(100)	%
Selling, general & administrative		248			226			246			159			98					(38)	%				(60)	%
Total Merger-related costs		$	1,668		$	1,296		$	592		$	358		$	276		(82)		(23)	%		(1,392)		(83)	%
Total Merger-related costs, <br>net of tax		$	1,252		$	972		$	444		$	268		$	207		(61)		(23)	%		(1,045)		(83)	%
Diluted EPS impact of Merger-related costs		$	1.00		$	0.77		$	0.36		$	0.22		$	0.17		(0.05)		(23)	%		(0.83)		(83)	%
Net cash payments for <br> Merger-related costs		$	907		$	942		$	622		$	484		$	728		244		50	%		(179)		(20)	%

All values are in US Dollars.

15

2023 Outlook

Metric	Previous	Revised	Change at Midpoint
Postpaid net customer additions	5.3 to 5.7 million	5.6 to 5.9 million	250 thousand
Net income (1)	N/A	N/A	N/A
Core Adjusted EBITDA (2)	$28.8 to $29.2 billion	$28.9 to $29.2 billion	$50 million
Merger synergies	$7.3 to $7.5 billion	~$7.5 billion	$100 million
Merger-related costs (3)	~$1.0 billion	~$1.0 billion	No change
Net cash provided by operating activities	$17.9 to $18.3 billion	$18.0 to $18.3 billion	$50 million
Capital expenditures (4)	$9.4 to $9.7 billion	$9.5 to $9.7 billion	$50 million
Adjusted Free Cash Flow (5)	$13.2 to $13.6 billion	$13.2 to $13.6 billion	No change

(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 of approximately $300 million for 2023.

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

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

(5)Adjusted Free Cash Flow guidance does not assume any material net cash inflows from securitization in 2023.

16

Investor Relations

Jud Henry	Justin Taiber	Rob Brust
Senior Vice President	Senior Director	Senior Director
Investor Relations	Investor Relations	Investor Relations
Zach Witterstaetter	Rose Kopecky	Jacob Marks
---	---	---
Investor Relations	Investor Relations	Investor Relations
Manager	Manager	Manager

investor.relations@t-mobile.com

https://investor.t-mobile.com

17

T-Mobile US, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(in millions, except share and per share amounts)	June 30,<br>2023		December 31,<br>2022
Assets
Current assets
Cash and cash equivalents	$	6,647	$	4,507
Accounts receivable, net of allowance for credit losses of $151 and $167	4,592		4,445
Equipment installment plan receivables, net of allowance for credit losses and imputed discount of $623 and $667	4,779		5,123
Inventory	1,373		1,884
Prepaid expenses	814		673
Other current assets	2,032		2,435
Total current assets	20,237		19,067
Property and equipment, net	41,804		42,086
Operating lease right-of-use assets	27,891		28,715
Financing lease right-of-use assets	3,365		3,257
Goodwill	12,234		12,234
Spectrum licenses	95,889		95,798
Other intangible assets, net	3,032		3,508
Equipment installment plan receivables due after one year, net of allowance for credit losses and imputed discount of $131 and $144	1,966		2,546
Other assets	4,184		4,127
Total assets	$	210,602	$	211,338
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and accrued liabilities	$	9,872	$	12,275
Short-term debt	7,731		5,164
Deferred revenue	810		780
Short-term operating lease liabilities	3,289		3,512
Short-term financing lease liabilities	1,220		1,161
Other current liabilities	1,647		1,850
Total current liabilities	24,569		24,742
Long-term debt	68,646		65,301
Long-term debt to affiliates	1,495		1,495
Tower obligations	3,860		3,934
Deferred tax liabilities	12,226		10,884
Operating lease liabilities	29,053		29,855
Financing lease liabilities	1,254		1,370
Other long-term liabilities	3,749		4,101
Total long-term liabilities	120,283		116,940
Commitments and contingencies
Stockholders' equity
Common stock, par value $0.00001 per share, 2,000,000,000 shares authorized; 1,261,489,287 and 1,256,876,527 shares issued, 1,180,398,748 and 1,233,960,078 shares outstanding	—		—
Additional paid-in capital	74,161		73,941
Treasury stock, at cost, 81,090,539 and 22,916,449 shares issued	(11,392)		(3,016)
Accumulated other comprehensive loss	(957)		(1,046)
Retained earnings (accumulated deficit)	3,938		(223)
Total stockholders' equity	65,750		69,656
Total liabilities and stockholders' equity	$	210,602	$	211,338
18
---

T-Mobile US, Inc.

Condensed Consolidated Statements of Comprehensive Income (Loss)

(Unaudited)

	Three Months Ended						Six Months Ended June 30,
(in millions, except share and per share amounts)	June 30,<br>2023		March 31,<br>2023		June 30,<br>2022		2023		2022
Revenues
Postpaid revenues	$	12,070	$	11,862	$	11,445	$	23,932	$	22,646
Prepaid revenues	2,444		2,417		2,469		4,861		4,924
Wholesale and other service revenues	1,224		1,267		1,402		2,491		2,874
Total service revenues	15,738		15,546		15,316		31,284		30,444
Equipment revenues	3,169		3,719		4,130		6,888		8,824
Other revenues	289		367		255		656		553
Total revenues	19,196		19,632		19,701		38,828		39,821
Operating expenses
Cost of services, exclusive of depreciation and amortization shown separately below	2,916		3,061		4,060		5,977		7,787
Cost of equipment sales, exclusive of depreciation and amortization shown separately below	4,088		4,588		5,108		8,676		11,054
Selling, general and administrative	5,272		5,425		5,856		10,697		10,912
Impairment expense	—		—		477		—		477
Loss (gain) on disposal group held for sale	17		(42)		—		(25)		—
Depreciation and amortization	3,110		3,203		3,491		6,313		7,076
Total operating expenses	15,403		16,235		18,992		31,638		37,306
Operating income	3,793		3,397		709		7,190		2,515
Other expense, net
Interest expense, net	(861)		(835)		(851)		(1,696)		(1,715)
Other income (expense), net	6		9		(21)		15		(32)
Total other expense, net	(855)		(826)		(872)		(1,681)		(1,747)
Income (loss) before income taxes	2,938		2,571		(163)		5,509		768
Income tax (expense) benefit	(717)		(631)		55		(1,348)		(163)
Net income (loss)	$	2,221	$	1,940	$	(108)	$	4,161	$	605
Net income (loss)	$	2,221	$	1,940	$	(108)	$	4,161	$	605
Other comprehensive income, net of tax
Reclassification of loss from cash flow hedges, net of tax effect of $13, $14, $13, $27 and $26	40		40		37		80		74
Unrealized gain (loss) on foreign currency translation adjustment, net of tax effect of $0, $0, $(1), $0 and $(1)	7		2		(3)		9		(4)
Other comprehensive income	47		42		34		89		70
Total comprehensive income (loss)	$	2,268	$	1,982	$	(74)	$	4,250	$	675
Earnings (loss) per share
Basic	$	1.86	$	1.59	$	(0.09)	$	3.45	$	0.48
Diluted	$	1.86	$	1.58	$	(0.09)	$	3.44	$	0.48
Weighted-average shares outstanding
Basic	1,193,078,891		1,219,608,362		1,253,932,986		1,206,270,341		1,252,228,959
Diluted	1,195,533,499		1,224,604,698		1,253,932,986		1,210,220,958		1,256,873,827
19
---

T-Mobile US, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	Three Months Ended						Six Months Ended June 30,
(in millions)	June 30,<br>2023		March 31,<br>2023		June 30,<br>2022		2023		2022
Operating activities
Net income (loss)	$	2,221	$	1,940	$	(108)	$	4,161	$	605
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Depreciation and amortization	3,110		3,203		3,491		6,313		7,076
Stock-based compensation expense	167		177		154		344		295
Deferred income tax expense (benefit)	703		611		(76)		1,314		109
Bad debt expense	213		222		311		435		521
Losses from sales of receivables	51		38		62		89		108
Impairment expense	—		—		477		—		477
Loss (gain) on remeasurement of disposal group held for sale	22		(13)		—		9		—
Changes in operating assets and liabilities
Accounts receivable	(1,514)		(1,268)		(1,573)		(2,782)		(2,557)
Equipment installment plan receivables	246		152		(189)		398		(724)
Inventory	362		129		484		491		391
Operating lease right-of-use assets	929		1,008		1,693		1,937		3,162
Other current and long-term assets	354		(142)		(112)		212		(116)
Accounts payable and accrued liabilities	(864)		(882)		36		(1,746)		(23)
Short- and long-term operating lease liabilities	(1,183)		(1,009)		(747)		(2,192)		(1,518)
Other current and long-term liabilities	(466)		(183)		200		(649)		37
Other, net	4		68		106		72		211
Net cash provided by operating activities	4,355		4,051		4,209		8,406		8,054
Investing activities
Purchases of property and equipment, including capitalized interest of $(14), $(14), $(13), $(28) and $(28)	(2,789)		(3,001)		(3,572)		(5,790)		(6,953)
Purchases of spectrum licenses and other intangible assets, including deposits	(33)		(73)		(116)		(106)		(2,959)
Proceeds from sales of tower sites	2		6		—		8		—
Proceeds related to beneficial interests in securitization transactions	1,309		1,345		1,121		2,654		2,306
Acquisition of companies, net of cash and restricted cash acquired	—		—		—		—		(52)
Other, net	24		(5)		8		19		7
Net cash used in investing activities	(1,487)		(1,728)		(2,559)		(3,215)		(7,651)
Financing activities
Proceeds from issuance of long-term debt	3,450		3,013		—		6,463		—
Repayments of financing lease obligations	(304)		(306)		(288)		(610)		(590)
Repayments of long-term debt	(223)		(131)		(1,381)		(354)		(3,013)
Repurchases of common stock	(3,591)		(4,619)		—		(8,210)		—
Tax withholdings on share-based awards	(70)		(187)		(43)		(257)		(215)
Other, net	(46)		(43)		(32)		(89)		(62)
Net cash used in financing activities	(784)		(2,273)		(1,744)		(3,057)		(3,880)
Change in cash and cash equivalents, including restricted cash and cash held for sale	2,084		50		(94)		2,134		(3,477)
Cash and cash equivalents, including restricted cash and cash held for sale
Beginning of period	4,724		4,674		3,320		4,674		6,703
End of period	$	6,808	$	4,724	$	3,226	$	6,808	$	3,226	20
---

T-Mobile US, Inc.

Condensed Consolidated Statements of Cash Flows (Continued)

(Unaudited)

	Three Months Ended						Six Months Ended June 30,
(in millions)	June 30,<br>2023		March 31,<br>2023		June 30,<br>2022		2023		2022
Supplemental disclosure of cash flow information
Interest payments, net of amounts capitalized	$	896	$	840	$	989	$	1,736	$	1,767
Operating lease payments	1,483		1,314		1,042		2,797		2,090
Income tax payments	95		27		63		122		63
Non-cash investing and financing activities
Non-cash beneficial interest obtained in exchange for securitized receivables	$	1,109	$	1,119	$	990	$	2,228	$	2,008
Change in accounts payable and accrued liabilities for purchases of property and equipment	(408)		(329)		(68)		(737)		(251)
Increase in Tower obligations from contract modification	—		—		—		—		1,158
Operating lease right-of-use assets obtained in exchange for lease obligations	674		439		591		1,113		6,566
Financing lease right-of-use assets obtained in exchange for lease obligations	324		239		551		563		849
21
---

T-Mobile US, Inc.

Supplementary Operating and Financial Data

(Unaudited)

	Quarter						Six Months Ended June 30,
(in thousands)	Q1 2022	Q2 2022	Q3 2022	Q4 2022	Q1 2023	Q2 2023	2022	2023
Customers, end of period
Postpaid phone customers (1)	70,656	71,053	71,907	72,834	73,372	74,132	71,053	74,132
Postpaid other customers (1)	17,767	17,734	18,507	19,398	20,153	20,954	17,734	20,954
Total postpaid customers	88,423	88,787	90,414	92,232	93,525	95,086	88,787	95,086
Prepaid customers (1)	21,118	21,236	21,341	21,366	21,392	21,516	21,236	21,516
Total customers	109,541	110,023	111,755	113,598	114,917	116,602	110,023	116,602
Adjustments to customers (1)	(558)	(1,320)	—	—	—	—	(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.

	Quarter						Six Months Ended June 30,
(in thousands)	Q1 2022	Q2 2022	Q3 2022	Q4 2022	Q1 2023	Q2 2023	2022	2023
Net customer additions
Postpaid phone customers	589	723	854	927	538	760	1,312	1,298
Postpaid other customers	729	933	773	891	755	801	1,662	1,556
Total postpaid customers	1,318	1,656	1,627	1,818	1,293	1,561	2,974	2,854
Prepaid customers	62	146	105	25	26	124	208	150
Total customers	1,380	1,802	1,732	1,843	1,319	1,685	3,182	3,004
Migrations from prepaid to postpaid plans	165	155	155	175	145	140	320	285
	Quarter												Six Months Ended June 30,
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Q1 2022		Q2 2022		Q3 2022		Q4 2022		Q1 2023		Q2 2023		2022		2023
Churn
Postpaid phone churn	0.93	%	0.80	%	0.88	%	0.92	%	0.89	%	0.77	%	0.86	%	0.83	%
Prepaid churn	2.67	%	2.58	%	2.88	%	2.93	%	2.76	%	2.62	%	2.62	%	2.69	%
	Quarter												Six Months Ended June 30,
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Q1 2022		Q2 2022		Q3 2022		Q4 2022		Q1 2023		Q2 2023		2022		2023
Postpaid upgrade rate
Postpaid device upgrade rate	4.8	%	4.1	%	3.8	%	3.9	%	3.2	%	2.6	%	8.9	%	5.8	%	22
---

T-Mobile US, Inc.

Supplementary Operating and Financial Data

(Unaudited)

	Quarter						Six Months Ended June 30,
(in thousands)	Q1 2022	Q2 2022	Q3 2022	Q4 2022	Q1 2023	Q2 2023	2022	2023
Accounts, end of period
Total postpaid customer accounts (1)	27,507	27,818	28,212	28,526	28,813	29,112	27,818	29,112

(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 and 69,000 postpaid accounts in the second quarter of 2022.

	Quarter						Six Months Ended June 30,
(in thousands)	Q1 2022	Q2 2022	Q3 2022	Q4 2022	Q1 2023	Q2 2023	2022	2023
Net account additions
Postpaid net account additions	348	380	394	314	287	299	728	586
	Quarter						Six Months Ended June 30,
---	---	---	---	---	---	---	---	---
(in thousands)	Q1 2022	Q2 2022	Q3 2022	Q4 2022	Q1 2023	Q2 2023	2022	2023
High speed internet customers, end of period
Postpaid high speed internet customers	975	1,472	1,960	2,410	2,855	3,302	1,472	3,302
Prepaid high speed internet customers	9	72	162	236	314	376	72	376
Total high speed internet customers, end of period	984	1,544	2,122	2,646	3,169	3,678	1,544	3,678
	Quarter						Six Months Ended June 30,
---	---	---	---	---	---	---	---	---
(in thousands)	Q1 2022	Q2 2022	Q3 2022	Q4 2022	Q1 2023	Q2 2023	2022	2023
High speed internet - net customer additions
Postpaid high speed internet customers	329	497	488	450	445	447	826	892
Prepaid high speed internet customers	9	63	90	74	78	62	72	140
Total high speed internet net customer additions	338	560	578	524	523	509	898	1,032
	Quarter																		Six Months Ended June 30,
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(in millions, except percentages)	Q1 2022			Q2 2022			Q3 2022			Q4 2022			Q1 2023			Q2 2023			2022			2023
Device Financing - Equipment Installment Plans
Gross EIP financed	$	4,247		$	3,580		$	3,758		$	4,103		$	3,335		$	2,858		$	7,827		$	6,193
EIP billings	3,333			3,447			3,717			3,889			3,871			3,732			6,780			7,603
EIP receivables, net	7,898			7,734			7,562			7,669			7,262			6,745			7,734			6,745
EIP receivables classified as prime	61		%	61		%	61		%	59		%	59		%	59		%	61		%	59		%
EIP receivables classified as prime (including EIP receivables sold)	58		%	57		%	58		%	57		%	56		%	56		%	57		%	56		%
Device Financing - Leased Devices
Lease revenues	$	487		$	386		$	311		$	246		$	147		$	69		$	873		$	216
Leased device depreciation	445			317			226			141			58			46			762			104
23
---

T-Mobile US, Inc.

Supplementary Operating and Financial Data (continued)

(Unaudited)

	Quarter																		Six Months Ended June 30,
(in millions, except percentages)	Q1 2022			Q2 2022			Q3 2022			Q4 2022			Q1 2023			Q2 2023			2022			2023
Financial Measures
Service revenues	$	15,128		$	15,316		$	15,361		$	15,518		$	15,546		$	15,738		$	30,444		$	31,284
Equipment revenue	$	4,694		$	4,130		$	3,855		$	4,451		$	3,719		$	3,169		$	8,824		$	6,888
Lease revenues	487			386			311			246			147			69			873			216
Equipment sales	$	4,207		$	3,744		$	3,544		$	4,205		$	3,572		$	3,100		$	7,951		$	6,672
Total revenues	$	20,120		$	19,701		$	19,477		$	20,273		$	19,632		$	19,196		$	39,821		$	38,828
Net income (loss)	$	713		$	(108)		$	508		$	1,477		$	1,940		$	2,221		$	605		$	4,161
Net income (loss) margin	4.7		%	(0.7)		%	3.3		%	9.5		%	12.5		%	14.1		%	2.0		%	13.3		%
Adjusted EBITDA	$	6,950		$	7,004		$	7,039		$	6,828		$	7,199		$	7,405		$	13,954		$	14,604
Adjusted EBITDA margin	45.9		%	45.7		%	45.8		%	44.0		%	46.3		%	47.1		%	45.8		%	46.7		%
Core Adjusted EBITDA	$	6,463		$	6,618		$	6,728		$	6,582		$	7,052		$	7,336		$	13,081		$	14,388
Core Adjusted EBITDA margin	42.7		%	43.2		%	43.8		%	42.4		%	45.4		%	46.6		%	43.0		%	46.0		%
Cost of services	$	3,727		$	4,060		$	3,712		$	3,167		$	3,061		$	2,916		$	7,787		$	5,977
Merger-related costs	607			961			812			290			208			178			1,568			386
Cost of services excluding Merger-related costs	$	3,120		$	3,099		$	2,900		$	2,877		$	2,853		$	2,738		$	6,219		$	5,591
Cost of equipment sales	$	5,946		$	5,108		$	4,982		$	5,504		$	4,588		$	4,088		$	11,054		$	8,676
Merger-related costs	751			459			258			56			(9)			—			1,210			(9)
Cost of equipment sales excluding Merger-related costs	$	5,195		$	4,649		$	4,724		$	5,448		$	4,597		$	4,088		$	9,844		$	8,685
Selling, general and administrative	$	5,056		$	5,856		$	5,118		$	5,577		$	5,425		$	5,272		$	10,912		$	10,697
Merger-related costs	55			248			226			246			159			98			303			257
Selling, general and administrative excluding Merger-related costs	$	5,001		$	5,608		$	4,892		$	5,331		$	5,266		$	5,174		$	10,609		$	10,440
Total bad debt expense and losses from sales of receivables	$	256		$	373		$	300		$	311		$	260		$	264		$	629		$	524
Bad debt and losses from sales of receivables as a percentage of Total revenues	1.3		%	1.9		%	1.5		%	1.5		%	1.3		%	1.4		%	1.6		%	1.4		%
Cash purchases of property and equipment including capitalized interest	$	3,381		$	3,572		$	3,634		$	3,383		$	3,001		$	2,789		$	6,953		$	5,790
Capitalized interest	15			13			16			17			14			14			28			28
Net cash proceeds from securitization	(3)			(10)			(18)			(26)			(29)			(31)			(13)			(60)
Operating Measures
Postpaid ARPA	$	136.53		$	137.92		$	137.49		$	137.78		$	138.04		$	138.94		$	137.23		$	138.49
Postpaid phone ARPU	48.41			48.96			48.89			48.86			48.63			48.84			48.69			48.73
Prepaid ARPU	39.19			38.71			38.86			38.29			37.98			37.98			38.95			37.98
24
---

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																		Six Months Ended June 30,
(in millions, except percentages)	Q1 2022			Q2 2022			Q3 2022			Q4 2022			Q1 2023			Q2 2023			2022			2023
Net income (loss)	$	713		$	(108)		$	508		$	1,477		$	1,940		$	2,221		$	605		$	4,161
Adjustments:
Interest expense, net	864			851			827			822			835			861			1,715			1,696
Other expense (income), net	11			21			3			(2)			(9)			(6)			32			(15)
Income tax expense (benefit)	218			(55)			(57)			450			631			717			163			1,348
Operating income	1,806			709			1,281			2,747			3,397			3,793			2,515			7,190
Depreciation and amortization	3,585			3,491			3,313			3,262			3,203			3,110			7,076			6,313
Stock-based compensation (1)	136			149			145			146			173			155			285			328
Merger-related costs	1,413			1,668			1,296			592			358			276			3,081			634
Impairment expense	—			477			—			—			—			—			477			—
Legal-related expenses (recoveries), net (2)	—			400			(19)			10			(43)			—			400			(43)
Loss (gain) on disposal group held for sale	—			—			1,071			16			(42)			17			—			(25)
Other, net (3)	10			110			(48)			55			153			54			120			207
Adjusted EBITDA	6,950			7,004			7,039			6,828			7,199			7,405			13,954			14,604
Lease revenues	(487)			(386)			(311)			(246)			(147)			(69)			(873)			(216)
Core Adjusted EBITDA	$	6,463		$	6,618		$	6,728		$	6,582		$	7,052		$	7,336		$	13,081		$	14,388
Net income (loss) margin (Net income (loss) divided by Service revenues)	4.7		%	(0.7)		%	3.3		%	9.5		%	12.5		%	14.1		%	2.0		%	13.3		%
Adjusted EBITDA margin (Adjusted EBITDA divided by Service revenues)	45.9		%	45.7		%	45.8		%	44.0		%	46.3		%	47.1		%	45.8		%	46.7		%
Core Adjusted EBITDA margin (Core Adjusted EBITDA divided by Service revenues)	42.7		%	43.2		%	43.8		%	42.4		%	45.4		%	46.6		%	43.0		%	46.0		%

(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 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 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 are not reflective of T-Mobile’s core business activities (“special items”), and are, therefore, excluded from Adjusted EBITDA and Core Adjusted EBITDA.

25

T-Mobile US, Inc.

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

(Unaudited)

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

(in millions, except net debt ratios)	Mar 31,<br>2022		Jun 30,<br>2022		Sep 30,<br>2022		Dec 31,<br>2022		Mar 31,<br>2023		Jun 30,<br>2023
Short-term debt	$	2,865	$	2,942	$	7,398	$	5,164	$	5,215	$	7,731
Short-term debt to affiliates	1,250		—		—		—		—		—
Short-term financing lease liabilities	1,121		1,220		1,239		1,161		1,180		1,220
Long-term debt	66,861		66,552		64,834		65,301		68,035		68,646
Long-term debt to affiliates	1,494		1,495		1,495		1,495		1,495		1,495
Financing lease liabilities	1,447		1,597		1,590		1,370		1,284		1,254
Less: Cash and cash equivalents	(3,245)		(3,151)		(6,888)		(4,507)		(4,540)		(6,647)
Net debt (excluding tower obligations)	$	71,793	$	70,655	$	69,668	$	69,984	$	72,669	$	73,699
Divided by: Last twelve months Net income	$	2,804	$	1,718	$	1,535	$	2,590	$	3,817	$	6,146
Net debt (excluding tower obligations) to LTM Net income Ratio	25.6		41.1		45.4		27.0		19.0		12.0
Divided by: Last twelve months Adjusted EBITDA	$	26,969	$	27,067	$	27,295	$	27,821	$	28,070	$	28,471
Net debt (excluding tower obligations) to LTM Adjusted EBITDA Ratio	2.7		2.6		2.6		2.5		2.6		2.6
Divided by: Last twelve months Core Adjusted EBITDA	$	24,175	$	24,801	$	25,488	$	26,391	$	26,980	$	27,698
Net debt (excluding tower obligations) to LTM Core Adjusted EBITDA Ratio	3.0		2.8		2.7		2.7		2.7		2.7

Adjusted Free Cash Flow is calculated as follows:

	Quarter																		Six Months Ended June 30,
(in millions, except percentages)	Q1 2022			Q2 2022			Q3 2022			Q4 2022			Q1 2023			Q2 2023			2022			2023
Net cash provided by operating activities	$	3,845		$	4,209		$	4,391		$	4,336		$	4,051		$	4,355		$	8,054		$	8,406
Cash purchases of property and equipment, including capitalized interest	(3,381)			(3,572)			(3,634)			(3,383)			(3,001)			(2,789)			(6,953)			(5,790)
Proceeds from sales of tower sites	—			—			—			9			6			2			—			8
Proceeds related to beneficial interests in securitization transactions	1,185			1,121			1,308			1,222			1,345			1,309			2,306			2,654
Adjusted Free Cash Flow	$	1,649		$	1,758		$	2,065		$	2,184		$	2,401		$	2,877		$	3,407		$	5,278
Net cash provided by operating activities margin	25.4		%	27.5		%	28.6		%	27.9		%	26.1		%	27.7		%	26.5		%	26.9		%
Adjusted Free Cash Flow margin	10.9		%	11.5		%	13.4		%	14.1		%	15.4		%	18.3		%	11.2		%	16.9		%

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

	FY 2023
(in millions)	Guidance Range
Net cash provided by operating activities	$	18,000	$	18,300
Cash purchases of property and equipment, including capitalized interest	(9,500)		(9,700)
Proceeds related to beneficial interests in securitization transactions (1)	4,700		5,000
Adjusted Free Cash Flow	$	13,200	$	13,600

(1)Adjusted Free Cash Flow guidance does not assume any material net cash inflows from securitization in 2023.

26

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 billing account number that generates revenue. Postpaid accounts generally consist of customers that are qualified for postpaid service utilizing phones, High Speed Internet, mobile internet devices, including tablets and hotspots, wearables, DIGITS or other connected devices, including SyncUP and IoT, where they generally pay after receiving service.

2.Customer - A SIM number with a unique T-Mobile identifier which is associated with an account that generates revenue. Customers are qualified either for postpaid service utilizing phones, High Speed Internet, mobile internet devices, including tablets and hotspots, wearables, DIGITS or other connected devices, including SyncUP and IoT, where they generally pay after receiving service, or prepaid service, where they generally pay in advance of receiving service.

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 and excludes customers who received service for less than a certain minimum 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.

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.

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 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 Core 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 to 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, loss (gain) on disposal group held for sale and certain legal-related recoveries and expenses, as well as other certain special income and expenses which are not reflective of our core business activities. 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. Adjusted EBITDA margin and Core Adjusted EBITDA margin are non-GAAP financial measures utilized by T-Mobile’s management to monitor the financial performance of our operations.

10.Net cash provided by operating activities margin - Net cash provided by operating activities margin is calculated as Net cash provided by operating activities divided by Service revenues.

11.Adjusted 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. Adjusted Free Cash Flow is utilized by T-Mobile’s management, investors, and analysts to evaluate cash available to pay debt, repurchase shares and provide further investment in the business. Starting in Q1 2023, we renamed Free Cash Flow to Adjusted Free Cash Flow. This change in name did not result in any change to the definition or calculation of this non-GAAP financial measure.

27

12.Adjusted Free Cash Flow margin - Adjusted Free Cash Flow margin is calculated as Adjusted Free Cash Flow divided by Service revenues. Adjusted Free Cash Flow Margin is utilized by T-Mobile’s management, investors, and analysts to evaluate the company’s ability to convert service revenue efficiently into cash available to pay debt, repurchase shares and provide further investment in the business.

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

14.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.

28

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: competition, industry consolidation and changes in the market for wireless communication services and other forms of connectivity; criminal cyberattacks, disruption, data loss or other security breaches; 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 difficulties in maintaining multiple billing systems following the Merger (as defined below) and any unanticipated difficulties, disruption, or significant delays in our long-term strategy to convert Sprint’s legacy customers onto T-Mobile’s billing platforms; 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, and the assumption of certain related liabilities (collectively, the “Prepaid Transaction”), the complaint and proposed final judgment 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 over multiple years; adverse economic, political or market conditions in the U.S. and international markets, including changes resulting from increases in inflation or interest rates, supply chain disruption, impacts of current geopolitical instability caused by the war in Ukraine; 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, divestiture, 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 inability to fully realize the synergy benefits from the merger (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 frame; 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, 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 regulatory or legal proceedings; 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 wireless licenses, including those controlled through leasing agreements, are subject to renewal and may be revoked; our exclusive forum provision as provided in our Certificate of Incorporation; interests of DT, our controlling stockholder, 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 2022 Stock Repurchase Program may not be fully consummated, our share repurchase program may not enhance long-term stockholder value; 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.