8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

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

T-MOBILE US, INC.

(Exact Name of Registrant as Specified in Charter)

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

12920 SE 38th Street

Bellevue, Washington

(Address of principal executive offices)

98006-1350

(Zip Code)

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

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

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

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

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

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

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

Emerging growth company ☐

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

Item 2.02 — Results of Operations and Financial Condition

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

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

Item 9.01 — Financial Statements and Exhibits

(d) Exhibits:

Exhibit	Description
99.1	Press release, dated July 27, 2022, entitled "T-Mobile Delivers Industry-Leading Postpaid Service Revenue and Cash Flow Growth in Q2 2022 and Raises Guidance Across the Board"
99.2	Investor Factbook of T-Mobile US, Inc. Second Quarter 2022 Results
104	Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

SIGNATURES

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

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

EX-99.1

EXHIBIT 99.1

T-Mobile Delivers Industry-Leading Postpaid Service Revenue and Cash Flow Growth in Q2 2022 and Raises Guidance Across the Board

The Un-carrier Leads the Industry in Postpaid and Broadband Customer Growth

Fueled by Network and Value Leadership

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

•Postpaid net account additions of 380 thousand, best in industry and highest in company history

•Postpaid net customer additions of 1.7 million, more than AT&T and Verizon combined and highest Q2 ever

•Postpaid phone net customer additions of 723 thousand, including lower churn than Verizon for first time ever

•High Speed Internet net customer additions of 560 thousand, best in industry for third consecutive quarter

Strong Financial Results Drive 2022 Guidance Raise Across the Board

•Service revenues of $15.3 billion grew 6% year-over-year, including industry-leading Postpaid service revenue growth of 9% and best postpaid phone ARPU growth in more than 5 years

•Net loss of $108 million and diluted (loss) per share (“EPS”) of $(0.09) decreased year-over-year due to merger-related costs and other special expense items amounting to $1.9 billion, net of tax, or $1.52 per share

•Core Adjusted EBITDA(2) of $6.6 billion grew 10% year-over-year, best growth in industry and raising guidance

•Net cash provided by operating activities of $4.2 billion grew 11% year-over-year, best growth in industry and raising guidance

•Free Cash Flow(2) of $1.8 billion grew 5% year-over-year, best growth in industry and raising guidance

Unprecedented Pace of 5G Network Build Delivers Differentiated Customer Experience

•Extended Range 5G covers 320 million people, or 97% of Americans

•Ultra Capacity 5G covers 235 million people and approximately 87% of T-Mobile customers

•50% of postpaid customers are now using a 5G phone, and 5G devices account for 55% of all network traffic

Commenced Sprint Network Shutdown and Will Substantially Complete Decommissioning by End of Q3

•Raising merger synergies guidance range to $5.4 to $5.6 billion in 2022

Bellevue, WA - July 27, 2022 - T-Mobile US, Inc. (NASDAQ: TMUS) reported second quarter 2022 results today, leading the industry with record postpaid account and broadband customer growth driven by its unmatched combination of value and quality. T-Mobile raises guidance across the board as its synergy-backed model and differentiated growth strategy continue to deliver the highest growth in postpaid service revenue and cash flows in the industry.

“Our relentless focus on putting customers first delivered yet another outstanding quarter for T-Mobile with industry-leading postpaid and broadband customer growth, including our highest ever postpaid account adds in company history,” said Mike Sievert, CEO of T-Mobile. “This momentum fueled our growth strategy and allowed us to raise guidance across the board yet again -- further proof that our commitment to addressing customer pain points in this challenging macro-economic environment is working.”

___________________________________________________________

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

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

1

Industry-Leading Growth in Postpaid and Broadband Customers

•Postpaid net account additions of 380 thousand increased 32 thousand year-over-year.

•Postpaid net customer additions of 1.7 million increased 380 thousand year-over-year.

•Postpaid phone net customer additions of 723 thousand increased 96 thousand year-over-year, including higher gross additions and industry-leading churn improvement. Postpaid phone churn of 0.80% improved 7 basis points year-over-year and 13 basis points sequentially.

•Prepaid net customer additions of 146 thousand increased 70 thousand year-over-year. Prepaid churn of 2.58% was the lowest in company history and improved by 4 basis points year-over-year.

•High Speed Internet net customer additions of 560 thousand were a record-high, and T-Mobile ended the quarter with more than 1.5 million High Speed Internet customers.

•Total net customer additions of 1.8 million increased 450 thousand year-over-year and the total customer count increased to a record-high of 110 million.

	Quarter						Six Months Ended June 30,
(in thousands, except churn)	Q2 2022		Q1 2022		Q2 2021		2022		2021
Postpaid net account additions	380		348		348		728		605
Total net customer additions	1,802		1,380		1,352		3,182		2,713
Postpaid net customer additions	1,656		1,318		1,276		2,974		2,486
Postpaid phone net customer additions	723		589		627		1,312		1,400
Postpaid other net customer additions (1)	933		729		649		1,662		1,086
Prepaid net customer additions (1)	146		62		76		208		227
Total customers, end of period (1)(2)(3)	110,023		109,541		104,789		110,023		104,789
Postpaid phone churn	0.80	%	0.93	%	0.87	%	0.86	%	0.92	%
Prepaid churn	2.58	%	2.67	%	2.62	%	2.62	%	2.70	%
High Speed Internet net customer additions	560		338		95		898		188
Total High Speed Internet customers, end of period	1,544		984		288		1,544		288

(1)Includes high-speed internet customers.

(2)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.

(3)In the first quarter of 2021, T-Mobile acquired 11,000 postpaid phone customers and 1,000 postpaid other customers through the acquisition of an affiliate.

Strong Financial Results

•Total service revenues increased 6% year-over-year to $15.3 billion, which included Postpaid service revenue growth of 9% year-over-year driven by continued customer account and ARPA growth.

•Net loss of $108 million and Diluted EPS of $(0.09) decreased year-over-year due to the impacts in the current quarter, net of tax, associated with merger-related costs of $1.3 billion, or $1.00 per share, impairment expense related to wireline assets of $358 million, or $0.29 per share, and legal-related expenses including from the impact of the settlement of certain litigation associated with the August 2021 cyberattack of $300 million, or $0.23 per share.

•Core Adjusted EBITDA increased 10% year-over-year to $6.6 billion primarily due to Service revenue growth and increased synergy realization.

•Net cash provided by operating activities increased 11% year-over-year to $4.2 billion, which included cash payments for merger-related costs of $907 million.

•Cash purchases of property and equipment, including capitalized interest increased 9% year-over-year to $3.6 billion driven by the accelerated build-out of the nationwide 5G network.

•Free Cash Flow increased 5% year-over-year to $1.8 billion, which included cash payments for merger-related costs of $907 million.

2

(in millions, except EPS)	Quarter						Six Months Ended June 30,				Q2 2022 vs. Q1 2022		Q2 2022 vs. Q2 2021		YTD 2022 vs. YTD 2021
	Q2 2022		Q1 2022		Q2 2021		2022		2021
Total service revenues	$	15,316	$	15,128	$	14,492	$	30,444	$	28,684	1.2	%	5.7	%	6.1	%
Postpaid service revenues	11,445		11,201		10,492		22,646		20,795		2.2	%	9.1	%	8.9	%
Total revenues	19,701		20,120		19,950		39,821		39,709		(2.1)	%	(1.2)	%	0.3	%
Net (loss) income	(108)		713		978		605		1,911		NM		NM		NM
Diluted EPS	(0.09)		0.57		0.78		0.48		1.52		NM		NM		NM
Adjusted EBITDA	7,004		6,950		6,906		13,954		13,811		0.8	%	1.4	%	1.0	%
Core Adjusted EBITDA	6,618		6,463		5,992		13,081		11,856		2.4	%	10.4	%	10.3	%
Net cash provided by operating activities	4,209		3,845		3,779		8,054		7,440		9.5	%	11.4	%	8.3	%
Cash purchases of property and equipment, including capitalized interest	3,572		3,381		3,270		6,953		6,453		5.6	%	9.2	%	7.7	%
Free Cash Flow	1,758		1,649		1,671		3,407		2,975		6.6	%	5.2	%	14.5	%

NM = Not Meaningful

Un-carrier Tackles More Pain Points When Customers Need it Most

The Un-carrier announced several moves to help tackle pain points for mobile and broadband customers that have only been exacerbated by the current macroeconomic environment:

•Price Lock: While AT&T and Verizon responded to inflation with recent price hikes, T-Mobile is standing by its existing commitment to customers who switch to T-Mobile to ensure rate plan prices aren’t raised even as costs for everything else increase

•Internet Freedom: T-Mobile launched a customer-first disruption to broadband for consumers and businesses and expanded T-Mobile Business Internet nationwide, making it easy for broadband customers to break up with Big Internet, lock in their price with massive savings, and finally feel appreciated

•Coverage Beyond: T-Mobile provides coverage and keeps customers connected across the US, in the air, and with high speed data in 210+ countries and destinations, plus exclusive travel benefits and discounts

Unprecedented Pace of 5G Network Build Delivers Differentiated Customer Experience

T-Mobile is the leader in 5G with the country’s largest, fastest, most reliable and most awarded 5G network. The Un-carrier’s Extended Range 5G covers nearly everyone in the country – 320 million people, delivering more geographic coverage than Verizon and AT&T combined. 235 million people nationwide are covered with super-fast Ultra Capacity 5G, and T-Mobile expects to cover 260 million in 2022 and 300 million next year.

With more than 20 reports from third-party industry experts in the last two years, T-Mobile continues to live up to its hype as the most awarded 5G and overall network in the nation:

•Ookla: In its Q2 Speedtest Global Index Market Analysis, T-Mobile took the top spot for overall speed, lowest latency, highest consistency and overall video score. The report also ranked the Un-carrier’s 5G network first for download speed, availability and consistency

•Opensignal: In its latest USA 5G Experience Report, T-Mobile received top marks for fastest 5G download speed and 5G upload speed along with the best 5G availability and 5G reach nationwide. Opensignal also noted that T-Mobile’s download speed is not only getting faster but is widening its gap versus the competition, while customers are seeing over 3x the 5G availability of Verizon and 2x AT&T

•umlaut: In its latest nationwide study, T-Mobile is ranked #1 for the most reliable 5G network, most 5G coverage and highest active 5G download and upload speeds

3

Raising 2022 Merger Synergies Guidance on Accelerated Integration Progress

T-Mobile achieved a significant milestone with the commencement of the Sprint network shutdown. Nearly two thirds of the 35,000 targeted sites have been decommissioned at the end of Q2, and the company will substantially complete decommissioning by the end of Q3.

Based on the continued strength of execution, T-Mobile is raising its merger synergies guidance range to $5.4 to $5.6 billion in 2022, up from the previous range of $5.2 to $5.4 billion.

•Approximately $2.3 billion to $2.4 billion of selling, general and administrative (SG&A) expense reductions

•Approximately $1.8 billion to $1.9 billion of network synergies achieved through cost of service expense reductions

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

Raising 2022 Guidance Across the Board

•Postpaid net customer additions are expected to be between 6.0 million and 6.3 million, an increase from prior guidance of 5.3 to 5.8 million.

•Core Adjusted EBITDA, which is Adjusted EBITDA less lease revenues, is expected to be between $26.0 billion and $26.3 billion, an increase from prior guidance of $25.8 to $26.2 billion.

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

•Net cash provided by operating activities, including payments for Merger-related costs, is expected to be between $16.0 billion and $16.3 billion, an increase from prior guidance of $15.7 to $16.1 billion.

•Cash purchases of property and equipment, including capitalized interest, are expected to be between $13.5 billion to $13.7 billion, an increase from the prior guidance of $13.2 to $13.5 billion as T-Mobile continues its accelerated build-out of its nationwide 5G network.

•Free Cash Flow, including payments for Merger-related costs, is expected to be between $7.3 billion and $7.6 billion, an increase from prior guidance of $7.2 to $7.6 billion. Free Cash Flow guidance does not assume any material net cash inflows from securitization.

(in millions, except Postpaid net customer additions)	Previous		Current		Change (Mid-point)
Postpaid net customer additions (thousands)	5,300	5,800	6,000	6,300	600
Net income (1)	N/A	N/A	N/A	N/A	N/A
Core Adjusted EBITDA (2)	$25,800	$26,200	$26,000	$26,300	$150
Merger synergies	5,200	5,400	5,400	5,600	200
Merger-related costs (3)	4,500	5,000	4,700	5,000	100
Net cash provided by operating activities	15,700	16,100	16,000	16,300	250
Capital expenditures (4)	13,200	13,500	13,500	13,700	250
Free Cash Flow (5)	7,200	7,600	7,300	7,600	50

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

(2)Management uses Core Adjusted EBITDA as a measure to monitor the financial performance of company operations, excluding the impact of lease revenues from related device financing programs. Guidance ranges assume lease revenues to be between $1.2 billion and $1.4 billion for 2022.

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

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

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

4

Doing Better by Doing Good - the Un-carrier Way

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

•Since 2020, T-Mobile has connected over 4.3 million students across its education initiatives. And as the third year of Project 10Million approaches, the Un-carrier’s $10.7 billion initiative focused on providing students free internet connectivity is continuing to look for ways to reach more students

◦T-Mobile and Big Brothers Big Sisters of America recently announced a new partnership that makes access to T-Mobile’s Project 10Million even easier

•T-Mobile continues to lead the US wireless industry in green power usage and now ranks #3 on the EPA’s Green Power Partnership National Top 100 list (behind Microsoft and Google and ahead of AT&T at #8 and Verizon who isn’t on the list)

•T-Mobile was recently named Disability:IN’s Employer of the Year and was included on the Top Companies Disability Equality Index for the sixth year in a row

Financial Results

For more details on T-Mobile’s Q2 2022 financial results, including the Investor Factbook with detailed financial tables, please visit T-Mobile US, Inc.’s Investor Relations website at http://investor.t-mobile.com.

Earnings Call Information

Date/Time

•Wednesday, July 27, 2022 at 8:00 a.m. (EDT)

Access via Phone (audio only)

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

•US/Canada: 866-575-6534

•International: +1 856-344-9215

•Participant Passcode: 9665247

Access via Webcast

The earnings call will be broadcast live via the Investor Relations website at http://investor.t-mobile.com. A replay of the earnings call will be available for two weeks starting shortly after the call concludes and can be accessed by dialing 888-203-1112 (toll free) or +1-719-457-0820 (international). The passcode required to listen to the replay is 9665247.

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

5

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: http://www.t-mobile.com.

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Forward-Looking Statements

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

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

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

7

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 2021		Q2 2021		Q3 2021		Q4 2021		Q1 2022		Q2 2022		2021		2022
Net income (loss)	$	933	$	978	$	691	$	422	$	713	$	(108)	$	1,911	$	605
Adjustments:
Interest expense, net	835		850		836		821		864		851		1,685		1,715
Other expense, net	125		1		60		13		11		21		126		32
Income tax expense (benefit)	246		277		(3)		(193)		218		(55)		523		163
Operating income	2,139		2,106		1,584		1,063		1,806		709		4,245		2,515
Depreciation and amortization	4,289		4,077		4,145		3,872		3,585		3,491		8,366		7,076
Stock-based compensation (1)	130		129		127		135		136		149		259		285
Merger-related costs	298		611		955		1,243		1,413		1,668		909		3,081
Impairment expense	—		—		—		—		—		477		—		477
Legal-related expenses (2)	—		—		—		—		—		400		—		400
Other, net (3)	49		(17)		—		(11)		10		110		32		120
Adjusted EBITDA	6,905		6,906		6,811		6,302		6,950		7,004		13,811		13,954
Lease revenues	(1,041)		(914)		(770)		(623)		(487)		(386)		(1,955)		(873)
Core Adjusted EBITDA	$	5,864	$	5,992	$	6,041	$	5,679	$	6,463	$	6,618	$	11,856	$	13,081

(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 consist of the settlement of certain litigation associated with the August 2021 cyberattack.

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

Adjusted EBITDA - Earnings before Interest expense, net of Interest income, Income tax expense, Depreciation and amortization expense, Stock-based compensation and certain expenses not reflective of T-Mobile’s ongoing operating performance, such as Merger-related costs, COVID-19-related costs and Impairment expense. Core Adjusted EBITDA represents Adjusted EBITDA less lease revenues. Core Adjusted EBITDA and Adjusted EBITDA are non-GAAP financial measures utilized by T-Mobile’s management to monitor the financial performance of our operations. T-Mobile uses Core Adjusted EBITDA and Adjusted EBITDA as benchmarks to evaluate T-Mobile’s operating performance in comparison to its competitors. T-Mobile also uses Adjusted EBITDA internally as a measure to evaluate and compensate its personnel and management for their performance. Management believes analysts and investors use Core Adjusted EBITDA and Adjusted EBITDA as supplemental measures to evaluate overall operating performance and facilitate comparisons with other wireless communications companies because they are indicative of T-Mobile’s ongoing operating performance and trends by excluding the impact of Interest expense from financing, non-cash depreciation and amortization from capital investments, stock-based compensation, Merger-related costs, including network decommissioning costs, impairment expense and certain legal-related expenses, as they are not indicative of T-Mobile’s ongoing operating performance, as well as certain nonrecurring income and expenses. Management believes analysts and investors use Core Adjusted EBITDA because it normalizes for the transition in the company’s device financing strategy, by excluding the impact of lease revenues from Adjusted EBITDA, to align with the related depreciation expense on leased devices, which is excluded from the definition of Adjusted EBITDA. Core Adjusted EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as a substitute for Net income or any other measure of financial performance reported in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”).

8

T-Mobile US, Inc.

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

(Unaudited)

Free Cash Flow is calculated as follows:

	Quarter												Six Months Ended June 30,
(in millions)	Q1 2021		Q2 2021		Q3 2021		Q4 2021		Q1 2022		Q2 2022		2021		2022
Net cash provided by operating activities	$	3,661	$	3,779	$	3,477	$	3,000	$	3,845	$	4,209	$	7,440	$	8,054
Cash purchases of property and equipment	(3,183)		(3,270)		(2,944)		(2,929)		(3,381)		(3,572)		(6,453)		(6,953)
Proceeds from sales of tower sites	—		31		—		9		—		—		31		—
Proceeds related to beneficial interests in securitization transactions	891		1,137		1,071		1,032		1,185		1,121		2,028		2,306
Cash payments for debt prepayment or debt extinguishment costs	(65)		(6)		(45)		—		—		—		(71)		—
Free Cash Flow	$	1,304	$	1,671	$	1,559	$	1,112	$	1,649	$	1,758	$	2,975	$	3,407

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

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

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

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

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

	FY 2022
(in millions)	Guidance Range
Net cash provided by operating activities	$	15,700	$	16,100
Cash purchases of property and equipment	(13,200)		(13,500)
Proceeds related to beneficial interests in securitization transactions (1)	4,700		5,000
Free Cash Flow	$	7,200	$	7,600

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

9

T-Mobile US, Inc.

Operating Measures

(Unaudited)

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

(in dollars)	Quarter												Six Months Ended June 30,
	Q1 2021		Q2 2021		Q3 2021		Q4 2021		Q1 2022		Q2 2022		2021		2022
Postpaid ARPA	$	132.91	$	133.55	$	134.54	$	135.04	$	136.53	$	137.92	$	133.23	$	137.23
Postpaid phone ARPU	47.30		47.61		48.06		48.03		48.41		48.96		47.45		48.69
Prepaid ARPU	37.81		38.53		39.49		39.32		39.19		38.71		38.17		38.95

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

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

Postpaid phone ARPU excludes postpaid other customers and related revenues.

10

EX-99.2

EXHIBIT 99.2

2

3	Highlights
4	Customer Metrics
7	Financial Metrics
13	Capital Structure
14	5G Network Leadership
15	Merger & Integration
16	Guidance
17	Contacts
18	Financial and Operational Tables

3

	T-Mobile Delivers Industry-Leading Postpaid Service Revenue and Cash Flow Growth in Q2 2022 and Raises Guidance Across the Board
		“Our relentless focus on putting customers first delivered yet another outstanding quarter for T-Mobile with industry-leading postpaid and broadband customer growth, including our highest ever postpaid account adds in company history. This momentum fueled our growth strategy and allowed us to raise guidance across the board yet again -- further proof that our commitment to addressing customer pain points in this challenging macro-economic environment is working."
			Mike Sievert, CEO

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

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

4

Postpaid Accounts

(in thousands)

Year-Over-Year

Postpaid net account additions increased primarily due to continued growth in High Speed Internet.

■Postpaid net account additions were the highest in company history, driven by the company’s differentiated growth strategy including new and under-penetrated markets

Sequential

Postpaid net account additions increased primarily due to continued growth in High Speed Internet.

■Postpaid net account additions were the highest in company history, driven by the company’s differentiated growth strategy including new and under-penetrated markets

Year-Over-Year

Postpaid ARPA increased 3.3% primarily due to:

■Higher premium services, including Magenta MAX

■An increase in customers per account, including from the success of High Speed Internet

Postpaid phone ARPU increased 2.8% primarily due to:

■Higher premium services, including Magenta MAX

Sequential

Postpaid ARPA increased 1.0% primarily due to:

■Higher premium services, including Magenta MAX

■The success of High Speed Internet

Postpaid phone ARPU increased 1.1% primarily due to:

■Higher premium services, including Magenta MAX

Postpaid ARPA & Postpaid Phone ARPU

5

Postpaid Customers

(in thousands)

Year-Over-Year

Postpaid phone net customer additions increased primarily due to:

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

■Lower churn

■Partially offset by lower migrations of prepaid to postpaid plans

Postpaid other net customer additions increased primarily due to:

■Continued growth in High Speed Internet

Sequential

Postpaid phone net customer additions increased primarily due to:

■Lower churn

■Partially offset by seasonally lower gross additions

Postpaid other net customer additions increased primarily due to:

■Continued growth in High Speed Internet

Year-Over-Year

Postpaid phone churn decreased 7 basis points primarily due to:

■Reduced Sprint churn as we progress through the integration process

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

Sequential

Postpaid phone churn decreased 13 basis points primarily due to:

■Reduced Sprint churn as we progress through the integration process

■Seasonal trends

Postpaid Phone Churn

6

Prepaid Customers

(in thousands)

Year-Over-Year

Prepaid net customer additions increased primarily due to:

■Introduction of High Speed Internet offering

■Higher gross additions

■Lower churn

■Lower migrations to postpaid plans

Sequential

Prepaid net customer additions increased primarily due to:

■Growth in High Speed Internet

■Higher gross additions

Year-Over-Year

High Speed Internet net customer additions increased primarily due to:

■Continued growth in customer demand driven by increasing awareness and product availability

Sequential

High Speed Internet net customer additions increased primarily due to:

■Continued growth in customer demand driven by increasing awareness and product availability

High Speed Internet Customers

(in thousands)

7

Service Revenues

($ in millions)

Year-Over-Year

Service revenues increased 6% primarily due to:

■Increase in Postpaid service revenues

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

Sequential

Service revenues increased 1% primarily due to:

■Increase in Postpaid service revenues

Year-Over-Year

Postpaid service revenues increased 9% 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

($ in millions)

8

Equipment Revenues

($ in millions)

Year-Over-Year

Equipment revenue decreased 21% primarily due to:

■Lower lease revenues and lower customer purchases of leased devices driven by a continued strategic shift from device financing to equipment installment plans

■Lower average revenue per device sold, driven primarily by higher promotions, which included Sprint customers moving to devices that are compatible with the T-Mobile network

■Partially offset by a higher number of devices sold, including Sprint customers moving to devices that are compatible with the T-Mobile network

Sequential

Equipment revenues decreased 12% primarily due to:

■A lower number of devices sold due to seasonally lower gross additions and upgrades

■Lower average revenue per device sold, driven by a decrease in the high-end phone mix

■Lower lease revenues driven by a continued strategic shift from device financing to equipment installment plans

Year-Over-Year

Cost of equipment sales, exclusive of Depreciation and Amortization (D&A), decreased 6% primarily due to:

■Fewer customer purchases of leased devices driven by a continued strategic shift from device financing to equipment installment plans

■Lower average cost per device sold

■Partially offset by a higher number of devices sold, driven by Sprint customers moving to devices that are compatible with the T-Mobile network

Sequential

Cost of equipment sales, exclusive of D&A, decreased 14% primarily due to:

■A lower number of devices sold due to seasonally lower gross additions and upgrades

■Lower average cost per device sold, driven by a decrease in the high-end phone mix

Cost of Equipment Sales, exclusive of D&A

($ in millions)

9

Cost of Services, exclusive of D&A

($ in millions, % of Service revenues)

Year-Over-Year

Cost of services, exclusive of D&A, increased 16% primarily due to:

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

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

■Partially offset by higher realized Merger synergies

Sequential

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

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

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

■Partially offset by higher realized Merger synergies

Year-Over-Year

SG&A expense increased 21% primarily due to:

■Higher legal-related expenses of $400 million, including the settlement of certain litigation associated with the August 2021 cyberattack

■Higher bad debt expense driven by higher receivable balances as well as normalization relative to muted COVID-19 pandemic levels and estimated potential future macroeconomic impacts

■Partially offset by higher realized Merger synergies

Sequential

SG&A expense increased 16% primarily due to:

■Higher legal-related expenses of $400 million, including the settlement of certain litigation associated with the August 2021 cyberattack

■Higher Merger-related costs

■Higher bad debt expense driven by higher receivable balances as well as normalization relative to muted COVID-19 pandemic levels and estimated potential future macroeconomic impacts    

Selling, General and Administrative (SG&A) Expense

($ in millions, % of Service revenues)

10

Net (Loss) Income

($ in millions, % of Service revenues)

Diluted (Loss) Earnings Per Share

(Diluted EPS)

Year-Over-Year

Net loss was $108 million and Diluted loss per share was $0.09 in Q2 2022, compared to Net income of $978 million and Diluted earnings per share of $0.78 in Q2 2021, primarily due to the factors described above and included the following, net of tax:

■Merger-related costs in Q2 2022 of $1.3 billion or $1.00 per share, compared to $453 million or $0.36 per share, in Q2 2021

■Impairment expense related to wireline assets in Q2 2022 of $358 million, or $0.29 per share, compared to no impairment expense in Q2 2021

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

Sequential

Net loss was $108 million and Diluted loss per share was $0.09 in Q2 2022, compared to Net income of $713 million and Diluted earnings per share of $0.57 in Q1 2022, primarily due to the factors described above and included the following, net of tax:

■Impairment expense related to wireline assets in Q2 2022 of $358 million, or $0.29 per share, compared to no impairment expense in Q2 2021

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

■Merger-related costs in Q2 2022 of $1.3 billion or $1.00 per share, compared to $1.1 billion or $0.84 per share, in Q1 2022

11

Core Adjusted EBITDA*

($ in millions, % of Service revenues)

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

Year-Over-Year

Core Adjusted EBITDA increased 10% primarily due to:

■Higher Service revenues

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

■Lower Cost of services, excluding Merger-related costs

■Partially offset by lower Equipment revenues, excluding Lease revenues, and higher SG&A expenses, excluding Merger-related costs and other special expense items

Sequential

Core Adjusted EBITDA increased 2% primarily due to:

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

■Higher Service revenues

■Partially offset by lower Equipment revenues, excluding Lease revenues, and higher SG&A expenses, excluding Merger-related costs and other special expense items

Year-Over-Year

Net cash provided by operating activities increased 11% primarily due to:

■Lower net cash outflows from changes in working capital

■Partially offset by a lower Net income, adjusted for noncash income and expenses and higher net cash payments for Merger-related costs

Sequential

Net cash provided by operating activities increased 9% primarily due to:

■Lower net cash outflows from changes in working capital

■Partially offset by a lower Net income, adjusted for noncash income and expenses

The impact of payments for Merger-related costs on Net cash provided by operating activities was $907 million in Q2 2022 compared to $893 million in Q1 2022 and $190 million in Q2 2021.

Net Cash Provided by Operating Activities

($ in millions)

12

Cash Purchases of Property and Equipment

($ in millions, % of Service revenues)

Year-Over-Year

Cash purchases of property and equipment increased 9% primarily due to:

■Accelerated build-out of our nationwide 5G network

Sequential

Cash purchases of property and equipment increased 6% primarily due to:

■Accelerated build-out of our nationwide 5G network

Year-Over-Year

Free Cash Flow increased 5% primarily due to:

■Higher Net cash provided by operating activities

■Partially offset by higher Cash purchases of property and equipment

Sequential

Free Cash Flow increased 7% primarily due to:

■Higher Net cash provided by operating activities

■Partially offset by higher Cash purchases of property and equipment

There were no significant net cash proceeds during the quarter from securitization.

The impact of payments for Merger-related costs on Free Cash Flow was $907 million in Q2 2022 compared to $893 million in Q1 2022 and $190 million in Q2 2021.

Free Cash Flow

($ in millions)

13

Net Debt (Excluding Tower Obligations) & Net Debt to LTM Core Adj. EBITDA Ratio

($ in billions)

Total debt, excluding tower obligations, at the end of Q2 2022 was $73.8 billion.

Net debt, excluding tower obligations, at the end of Q2 2022 was $70.7 billion.

■The ratio of net debt, excluding tower obligations, to Core Adjusted EBITDA for the last twelve months (“LTM”) period was 2.8x at the end of Q2 2022 compared to 3.0x at the end of Q1 2022.

■On July 20, 2022, Moody's upgraded T-Mobile’s senior unsecured credit rating to Baa3 (stable) from Ba1 (positive), based on the Company's continued operational and financial momentum, network strength, and robust merger integration. This upgrade will provide us with significant incremental flexibility to further optimize the company’s capital structure.

14

15

	T-Mobile raises Merger synergies guidance range to $5.4 to $5.6 billion in 2022, driven by continued strength of integration execution.
The Company expects full-year 2022 Merger synergies to be $5.4 billion to $5.6 billion: ▪$2.3 billion to $2.4 billion of SG&A expense reductions. ▪$1.8 billion to $1.9 billion of network synergies achieved through cost of service expense reductions. ▪Approximately $1.3 billion of network synergies related to avoided site builds.

Merger-Related Costs
(in millions, excl. EPS)
											Sequential Change				Year-Over-Year Change
	Q2 2021		Q3 2021		Q4 2021		Q1 2022		Q2 2022		$		%		$		%
Cost of services	$	273	$	279	$	327	$	607	$	961	$	354	58	%	$	688	252	%
Cost of equipment sales	87		236		678		751		459		(292)		(39)	%	372		NM
Selling, general & administrative	251		440		238		55		248		193		351	%	(3)		(1)	%
Total Merger-related costs	$	611	$	955	$	1,243	$	1,413	$	1,668	$	255	18	%	$	1,057	173	%
Total Merger-related costs, net of tax	$	453	$	707	$	950	$	1,059	$	1,252	$	193	18	%	$	799	176	%
Diluted EPS impact of Merger-related costs	$0.36		$0.56		$0.76		$0.84		$1.00		$	0.16	19	%	$	0.64	178	%
Net cash payments for  Merger-related costs	$	190	$	617	$	1,086	$	893	$	907	$	14	2	%	$	717	377	%

NM - Not Meaningful

16

2022 Outlook

Metric	Previous	Revised	Change at Midpoint
Postpaid net customer additions	5.3 to 5.8 million	6.0 to 6.3 million	600 thousand
Net income (1)	N/A	N/A	N/A
Core Adjusted EBITDA (2)	$25.8 to $26.2 billion	$26.0 to $26.3 billion	$150 million
Merger synergies	$5.2 to $5.4 billion	$5.4 to $5.6 billion	$200 million
Merger-related costs (3)	$4.5 to $5.0 billion	$4.7 to $5.0 billion	$100 million
Net cash provided by operating activities	$15.7 to $16.1 billion	$16.0 to $16.3 billion	$250 million
Capital expenditures (4)	$13.2 to $13.5 billion	$13.5 to $13.7 billion	$250 million
Free Cash Flow (5)	$7.2 to $7.6 billion	$7.3 to $7.6 billion	$50 million

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

(2)Management uses Core Adjusted EBITDA as a measure to monitor the financial performance of our operations, excluding the impact of lease revenues from our related device financing programs. Our guidance ranges assume lease revenues to be between $1.2 billion and $1.4 billion for 2022.

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

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

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

17

Investor Relations

Jud Henry	Justin Taiber	Trina Schurman
Senior Vice President	Senior Director	Senior Director
Investor Relations	Investor Relations	Investor Relations

Samia Bhatti	Zach Witterstaetter	Rose Kopecky	Jacob Marks
Investor Relations	Investor Relations	Investor Relations	Investor Relations
Manager	Manager	Manager	Manager

investor.relations@t-mobile.com

http://investor.t-mobile.com

T-Mobile US, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(in millions, except share and per share amounts)	June 30, 2022		December 31, 2021
Assets
Current assets
Cash and cash equivalents	$	3,151	$	6,631
Accounts receivable, net of allowance for credit losses of $177 and $146	4,466		4,194
Equipment installment plan receivables, net of allowance for credit losses and imputed discount of $600 and $494	5,129		4,748
Inventory	2,243		2,567
Prepaid expenses	776		746
Other current assets	1,711		2,005
Total current assets	17,476		20,891
Property and equipment, net	40,245		39,803
Operating lease right-of-use assets	30,110		26,959
Financing lease right-of-use assets	3,588		3,322
Goodwill	12,234		12,188
Spectrum licenses	95,632		92,606
Other intangible assets, net	4,140		4,733
Equipment installment plan receivables due after one year, net of allowance for credit losses and imputed discount of $122 and $136	2,605		2,829
Other assets	3,433		3,232
Total assets	$	209,463	$	206,563
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and accrued liabilities	$	11,182	$	11,405
Short-term debt	2,942		3,378
Short-term debt to affiliates	—		2,245
Deferred revenue	810		856
Short-term operating lease liabilities	3,348		3,425
Short-term financing lease liabilities	1,220		1,120
Other current liabilities	1,120		1,070
Total current liabilities	20,622		23,499
Long-term debt	66,552		67,076
Long-term debt to affiliates	1,495		1,494
Tower obligations	4,006		2,806
Deferred tax liabilities	10,433		10,216
Operating lease liabilities	30,916		25,818
Financing lease liabilities	1,597		1,455
Other long-term liabilities	3,808		5,097
Total long-term liabilities	118,807		113,962
Commitments and contingencies
Stockholders' equity
Common Stock, par value $0.00001 per share, 2,000,000,000 shares authorized; 1,255,574,620 and 1,250,751,148 shares issued, 1,254,010,072 and 1,249,213,681 shares outstanding	—		—
Additional paid-in capital	73,552		73,292
Treasury stock, at cost, 1,564,549 and 1,537,468 shares issued	(16)		(13)
Accumulated other comprehensive loss	(1,295)		(1,365)
Accumulated deficit	(2,207)		(2,812)
Total stockholders' equity	70,034		69,102
Total liabilities and stockholders' equity	$	209,463	$	206,563

T-Mobile US, Inc.

Condensed Consolidated Statements of Comprehensive (Loss) Income

(Unaudited)

	Three Months Ended						Six Months Ended June 30,
(in millions, except share and per share amounts)	June 30, 2022		March 31, 2022		June 30, 2021		2022		2021
Revenues
Postpaid revenues	$	11,445	$	11,201	$	10,492	$	22,646	$	20,795
Prepaid revenues	2,469		2,455		2,427		4,924		4,778
Wholesale and other service revenues	1,402		1,472		1,573		2,874		3,111
Total service revenues	15,316		15,128		14,492		30,444		28,684
Equipment revenues	4,130		4,694		5,215		8,824		10,561
Other revenues	255		298		243		553		464
Total revenues	19,701		20,120		19,950		39,821		39,709
Operating expenses
Cost of services, exclusive of depreciation and amortization shown separately below	4,060		3,727		3,491		7,787		6,875
Cost of equipment sales, exclusive of depreciation and amortization shown separately below	5,108		5,946		5,453		11,054		10,595
Selling, general and administrative	5,856		5,056		4,823		10,912		9,628
Impairment expense	477		—		—		477		—
Depreciation and amortization	3,491		3,585		4,077		7,076		8,366
Total operating expenses	18,992		18,314		17,844		37,306		35,464
Operating income	709		1,806		2,106		2,515		4,245
Other expense, net
Interest expense, net	(851)		(864)		(850)		(1,715)		(1,685)
Other expense, net	(21)		(11)		(1)		(32)		(126)
Total other expense, net	(872)		(875)		(851)		(1,747)		(1,811)
(Loss) income from continuing operations before income taxes	(163)		931		1,255		768		2,434
Income tax benefit (expense)	55		(218)		(277)		(163)		(523)
Net (loss) income	$	(108)	$	713	$	978	$	605	$	1,911
Net (loss) income	$	(108)	$	713	$	978	$	605	$	1,911
Other comprehensive income, net of tax
Reclassification of loss from cash flow hedges, net of tax effect of $13, $13, $12, $26, and $24	37		37		34		74		68
Unrealized (loss) gain on foreign currency translation adjustment, net of tax effect of $(1), $0, $0, $(1) and $0	(3)		(1)		1		(4)		3
Other comprehensive income	34		36		35		70		71
Total comprehensive (loss) income	$	(74)	$	749	$	1,013	$	675	$	1,982
(Loss) earnings per share
Basic	$	(0.09)	$	0.57	$	0.78	$	0.48	$	1.53
Diluted	$	(0.09)	$	0.57	$	0.78	$	0.48	$	1.52
Weighted-average shares outstanding
Basic	1,253,932,986		1,250,505,999		1,247,563,331		1,252,228,959		1,245,552,847
Diluted	1,253,932,986		1,255,368,592		1,253,718,122		1,256,873,827		1,254,264,464

T-Mobile US, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	Three Months Ended						Six Months Ended June 30,
(in millions)	June 30, 2022		March 31, 2022		June 30, 2021		2022		2021
Operating activities
Net (loss) income	$	(108)	$	713	$	978	$	605	$	1,911
Adjustments to reconcile net (loss) income to net cash provided by operating activities
Depreciation and amortization	3,491		3,585		4,077		7,076		8,366
Stock-based compensation expense	154		141		134		295		272
Deferred income tax (benefit) expense	(76)		185		226		109		437
Bad debt expense	311		210		72		521		154
Losses (gains) from sales of receivables	62		46		(12)		108		(30)
Losses on redemption of debt	—		—		28		—		129
Impairment expense	477		—		—		477		—
Changes in operating assets and liabilities
Accounts receivable	(1,573)		(984)		(1,839)		(2,557)		(1,743)
Equipment installment plan receivables	(189)		(535)		(568)		(724)		(1,295)
Inventories	484		(93)		584		391		863
Operating lease right-of-use assets	1,693		1,469		1,272		3,162		2,396
Other current and long-term assets	(112)		(4)		(154)		(116)		(100)
Accounts payable and accrued liabilities	36		(59)		28		(23)		(1,356)
Short- and long-term operating lease liabilities	(747)		(771)		(996)		(1,518)		(2,365)
Other current and long-term liabilities	200		(163)		(47)		37		(264)
Other, net	106		105		(4)		211		65
Net cash provided by operating activities	4,209		3,845		3,779		8,054		7,440
Investing activities
Purchases of property and equipment, including capitalized interest of $(13), $(15), $(57), $(28) and $(141)	(3,572)		(3,381)		(3,270)		(6,953)		(6,453)
Purchases of spectrum licenses and other intangible assets, including deposits	(116)		(2,843)		(8)		(2,959)		(8,930)
Proceeds from sales of tower sites	—		—		31		—		31
Proceeds related to beneficial interests in securitization transactions	1,121		1,185		1,137		2,306		2,028
Acquisition of companies, net of cash and restricted cash acquired	—		(52)		(1)		(52)		(30)
Other, net	8		(1)		28		7		32
Net cash used in investing activities	(2,559)		(5,092)		(2,083)		(7,651)		(13,322)
Financing activities
Proceeds from issuance of long-term debt	—		—		3,006		—		9,769
Repayments of financing lease obligations	(288)		(302)		(269)		(590)		(556)
Repayments of short-term debt for purchases of inventory, property and equipment and other financial liabilities	—		—		(36)		—		(91)
Repayments of long-term debt	(1,381)		(1,632)		(3,150)		(3,013)		(5,369)
Tax withholdings on share-based awards	(43)		(172)		(76)		(215)		(294)
Cash payments for debt prepayment or debt extinguishment costs	—		—		(6)		—		(71)
Other, net	(32)		(30)		(46)		(62)		(91)
Net cash (used in) provided by financing activities	(1,744)		(2,136)		(577)		(3,880)		3,297
Change in cash and cash equivalents, including restricted cash	(94)		(3,383)		1,119		(3,477)		(2,585)
Cash and cash equivalents, including restricted cash
Beginning of period	3,320		6,703		6,759		6,703		10,463
End of period	$	3,226	$	3,320	$	7,878	$	3,226	$	7,878

T-Mobile US, Inc.

Condensed Consolidated Statements of Cash Flows(Continued)

(Unaudited)

	Three Months Ended						Six Months Ended June 30,
(in millions)	June 30, 2022		March 31, 2022		June 30, 2021		2022		2021
Supplemental disclosure of cash flow information
Interest payments, net of amounts capitalized	$	989	$	778	$	913	$	1,767	$	1,858
Operating lease payments	1,042		1,048		1,263		2,090		2,914
Income tax payments	63		—		63		63		85
Non-cash investing and financing activities
Non-cash beneficial interest obtained in exchange for securitized receivables	$	990	$	1,018	$	1,089	$	2,008	$	2,470
Change in accounts payable and accrued liabilities for purchases of property and equipment	(68)		(183)		(367)		(251)		(540)
Leased devices transferred from inventory to property and equipment	83		129		333		212		818
Returned leased devices transferred from property and equipment to inventory	(95)		(183)		(416)		(278)		(861)
Increase in Tower obligations from contract modification	—		1,158		—		1,158		—
Operating lease right-of-use assets obtained in exchange for lease obligations	591		5,975		1,043		6,566		1,954
Financing lease right-of-use assets obtained in exchange for lease obligations	551		298		377		849		486

T-Mobile US, Inc.

Supplementary Operating and Financial Data

(Unaudited)

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

(1)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.

(2)     In the first quarter of 2021, T-Mobile acquired 11,000 postpaid phone customers and 1,000 postpaid other customers through the acquisition of an affiliate. In the third quarter of 2021, we acquired 716,000 postpaid phone customers and 90,000 postpaid other customers through our acquisition of Shentel’s Wireless Assets.

	Quarter						Six Months Ended June 30,
(in thousands)	Q1 2021	Q2 2021	Q3 2021	Q4 2021	Q1 2022	Q2 2022	2021	2022
Net customer additions
Postpaid phone customers	773	627	673	844	589	723	1,400	1,312
Postpaid other customers	437	649	586	906	729	933	1,086	1,662
Total postpaid customers	1,210	1,276	1,259	1,750	1,318	1,656	2,486	2,974
Prepaid customers	151	76	66	49	62	146	227	208
Total customers	1,361	1,352	1,325	1,799	1,380	1,802	2,713	3,182
Migrations from prepaid to postpaid plans	170	190	175	205	165	155	360	320

	Quarter												Six Months Ended June 30,
(in millions, except percentages)	Q1 2021		Q2 2021		Q3 2021		Q4 2021		Q1 2022		Q2 2022		2021		2022
Devices sold or leased
Phones	9.6		9.6		9.8		11.6		9.7		8.8		19.2		18.5
Mobile broadband and IoT devices	1.0		1.4		1.5		2.2		1.8		1.9		2.4		3.7
Total	10.6		11.0		11.3		13.8		11.5		10.7		21.6		22.2
Postpaid device upgrade rate	4.8	%	4.7	%	4.3	%	5.8	%	4.8	%	4.1	%	9.6	%	8.9	%

	Quarter												Six Months Ended June 30,
	Q1 2021		Q2 2021		Q3 2021		Q4 2021		Q1 2022		Q2 2022		2021		2022
Churn
Postpaid phone churn	0.98	%	0.87	%	0.96	%	1.10	%	0.93	%	0.80	%	0.92	%	0.86	%
Prepaid churn	2.78	%	2.62	%	2.90	%	3.01	%	2.67	%	2.58	%	2.70	%	2.62	%

T-Mobile US, Inc.

Supplementary Operating and Financial Data

(Unaudited)

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

(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.

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

	Quarter						Six Months Ended June 30,
(in thousands)	Q1 2021	Q2 2021	Q3 2021	Q4 2021	Q1 2022	Q2 2022	2021	2022
Net account additions
Postpaid net account additions	257	348	268	315	348	380	605	728

	Quarter						Six Months Ended June 30,
(in thousands)	Q1 2021	Q2 2021	Q3 2021	Q4 2021	Q1 2022	Q2 2022	2021	2022
High speed internet customers, end of period
Postpaid high speed internet customers	193	288	422	646	975	1,472	288	1,472
Prepaid high speed internet customers	—	—	—	—	9	72	—	72
Total high speed internet customers, end of period	193	288	422	646	984	1,544	288	1,544

	Quarter						Six Months Ended June 30,
(in thousands)	Q1 2021	Q2 2021	Q3 2021	Q4 2021	Q1 2022	Q2 2022	2021	2022
High speed internet - net customer additions
Postpaid high speed internet customers	93	95	134	224	329	497	188	826
Prepaid high speed internet customers	—	—	—	—	9	63	—	72
Total high speed internet net customer additions	93	95	134	224	338	560	188	898

	Quarter																		Six Months Ended June 30,
(in millions, except percentages)	Q1 2021			Q2 2021			Q3 2021			Q4 2021			Q1 2022			Q2 2022			2021			2022
Device Financing - Equipment Installment Plans
Gross EIP financed	$	3,379		$	3,348		$	3,434		$	5,282		$	4,247		$	3,580		$	6,727		$	7,827
EIP billings	2,556			2,639			2,795			3,126			3,333			3,447			5,195			6,780
EIP receivables, net	6,062			6,348			6,586			7,577			7,898			7,734			6,348			7,734
EIP receivables classified as prime	57		%	61		%	60		%	62		%	61		%	61		%	61		%	61		%
EIP receivables classified as prime (including EIP receivables sold)	56		%	59		%	57		%	58		%	58		%	57		%	59		%	57		%
Device Financing - Leased Devices
Lease revenues	$	1,041		$	914		$	770		$	623		$	487		$	386		$	1,955		$	873
Leased device depreciation	897			842			755			627			445			317			1,739			762
Leased devices transferred from inventory to property and equipment	485			333			214			166			129			83			818			212
Returned leased devices transferred from property and equipment to inventory	(445)			(416)			(309)			(267)			(183)			(95)			(861)			(278)
Leased devices included in property and equipment, net	3,962			3,037			2,188			1,459			960			631			3,037			631
Leased devices (units) included in property and equipment, net	12.4			10.7			9.0			7.1			5.5			4.4			10.7			4.4

T-Mobile US, Inc.

Supplementary Operating and Financial Data (continued)

(Unaudited)

	Quarter																		Six Months Ended June 30,
(in millions, except percentages)	Q1 2021			Q2 2021			Q3 2021			Q4 2021			Q1 2022			Q2 2022			2021			2022
Financial Measures
Service revenues	$	14,192		$	14,492		$	14,722		$	14,963		$	15,128		$	15,316		$	28,684		$	30,444
Equipment revenue	$	5,346		$	5,215		$	4,660		$	5,506		$	4,694		$	4,130		$	10,561		$	8,824
Lease revenues	1,041			914			770			623			487			386			1,955			873
Equipment sales	$	4,305		$	4,301		$	3,890		$	4,883		$	4,207		$	3,744		$	8,606		$	7,951
Total revenues	$	19,759		$	19,950		$	19,624		$	20,785		$	20,120		$	19,701		$	39,709		$	39,821
Net income (loss)	$	933		$	978		$	691		$	422		$	713		$	(108)		$	1,911		$	605
Net income (loss) margin	6.6		%	6.7		%	4.7		%	2.8		%	4.7		%	(0.7)		%	6.7		%	2.0		%
Adjusted EBITDA	$	6,905		$	6,906		$	6,811		$	6,302		$	6,950		$	7,004		$	13,811		$	13,954
Adjusted EBITDA margin	48.7		%	47.7		%	46.3		%	42.1		%	45.9		%	45.7		%	48.1		%	45.8		%
Core Adjusted EBITDA	$	5,864		$	5,992		$	6,041		$	5,679		$	6,463		$	6,618		$	11,856		$	13,081
Core Adjusted EBITDA margin	41.3		%	41.3		%	41.0		%	38.0		%	42.7		%	43.2		%	41.3		%	43.0		%
Cost of services	$	3,384		$	3,491		$	3,538		$	3,521		$	3,727		$	4,060		$	6,875		$	7,787
Merger-related costs	136			273			279			327			607			961			409			1,568
Cost of services excluding Merger-related costs	$	3,248		$	3,218		$	3,259		$	3,194		$	3,120		$	3,099		$	6,466		$	6,219
Cost of equipment sales	$	5,142		$	5,453		$	5,145		$	6,931		$	5,946		$	5,108		$	10,595		$	11,054
Merger-related costs	17			87			236			678			751			459			104			1,210
Cost of equipment sales excluding Merger-related costs	$	5,125		$	5,366		$	4,909		$	6,253		$	5,195		$	4,649		$	10,491		$	9,844
Selling, general and administrative	$	4,805		$	4,823		$	5,212		$	5,398		$	5,056		$	5,856		$	9,628		$	10,912
Merger-related costs	145			251			440			238			55			248			396			303
Selling, general and administrative excluding Merger-related costs	$	4,660		$	4,572		$	4,772		$	5,160		$	5,001		$	5,608		$	9,232		$	10,609
Total bad debt expense and losses from sales of receivables	$	64		$	60		$	109		$	234		$	256		$	373		$	124		$	629
Bad debt and losses from sales of receivables as a percentage of Total revenues	0.32		%	0.30		%	0.56		%	1.13		%	1.27		%	1.89		%	0.31		%	1.58		%
Cash purchases of property and equipment including capitalized interest	$	3,183		$	3,270		$	2,944		$	2,929		$	3,381		$	3,572		$	6,453		$	6,953
Capitalized interest	84			57			46			23			15			13			141			28
Net cash proceeds from securitization	22			18			(2)			1			(3)			(10)			40			(13)
Operating Measures
Postpaid ARPA	$	132.91		$	133.55		$	134.54		$	135.04		$	136.53		$	137.92		$	133.23		$	137.23
Postpaid phone ARPU	47.30			47.61			48.06			48.03			48.41			48.96			47.45			48.69
Prepaid ARPU	37.81			38.53			39.49			39.32			39.19			38.71			38.17			38.95

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)	Q1 2021		Q2 2021		Q3 2021		Q4 2021		Q1 2022		Q2 2022		2021		2022
Net income (loss)	$	933	$	978	$	691	$	422	$	713	$	(108)	$	1,911	$	605
Adjustments:
Interest expense, net	835		850		836		821		864		851		1,685		1,715
Other expense, net	125		1		60		13		11		21		126		32
Income tax expense (benefit)	246		277		(3)		(193)		218		(55)		523		163
Operating income	2,139		2,106		1,584		1,063		1,806		709		4,245		2,515
Depreciation and amortization	4,289		4,077		4,145		3,872		3,585		3,491		8,366		7,076
Stock-based compensation (1)	130		129		127		135		136		149		259		285
Merger-related costs	298		611		955		1,243		1,413		1,668		909		3,081
Impairment expense	—		—		—		—		—		477		—		477
Legal-related expenses (2)	—		—		—		—		—		400		—		400
Other, net (3)	49		(17)		—		(11)		10		110		32		120
Adjusted EBITDA	6,905		6,906		6,811		6,302		6,950		7,004		13,811		13,954
Lease revenues	(1,041)		(914)		(770)		(623)		(487)		(386)		(1,955)		(873)
Core Adjusted EBITDA	$	5,864	$	5,992	$	6,041	$	5,679	$	6,463	$	6,618	$	11,856	$	13,081

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

(2)Legal-related expenses consist of the settlement of certain litigation associated with the August 2021 cyberattack.

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

.

T-Mobile US, Inc.

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

(Unaudited)

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

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

Free Cash Flow is calculated as follows:

	Quarter												Six Months Ended June 30,
(in millions)	Q1 2021		Q2 2021		Q3 2021		Q4 2021		Q1 2022		Q2 2022		2021		2022
Net cash provided by operating activities	$	3,661	$	3,779	$	3,477	$	3,000	$	3,845	$	4,209	$	7,440	$	8,054
Cash purchases of property and equipment	(3,183)		(3,270)		(2,944)		(2,929)		(3,381)		(3,572)		(6,453)		(6,953)
Proceeds from sales of tower sites	—		31		—		9		—		—		31		—
Proceeds related to beneficial interests in securitization transactions	891		1,137		1,071		1,032		1,185		1,121		2,028		2,306
Cash payments for debt prepayment or debt extinguishment costs	(65)		(6)		(45)		—		—		—		(71)		—
Free Cash Flow	$	1,304	$	1,671	$	1,559	$	1,112	$	1,649	$	1,758	$	2,975	$	3,407

T-Mobile US, Inc.

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

(Unaudited)

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

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

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

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

	FY 2022
(in millions)	Guidance Range
Net cash provided by operating activities	$	15,700	$	16,100
Cash purchases of property and equipment	(13,200)		(13,500)
Proceeds related to beneficial interests in securitization transactions (1)	4,700		5,000
Free Cash Flow	$	7,200	$	7,600

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

Definitions of Terms

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

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

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

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

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

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

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

Postpaid phone ARPU excludes postpaid other customers and related revenues.

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

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

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

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

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

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

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

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

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

12.Merger-related costs include:

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

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

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

Cautionary Statement Regarding Forward-Looking Statements

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

About T-Mobile US, Inc.

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

XML

Cover Page	Jul. 27, 2022
Cover [Abstract]
Document Type	8-K
Document Period End Date	Jul. 27, 2022
Entity Registrant Name	T-MOBILE US, INC.
Entity Incorporation, State or Country Code	DE
Entity File Number	1-33409
Entity Tax Identification Number	20-0836269
Entity Address, Address Line One	12920 SE 38th Street
Entity Address, City or Town	Bellevue
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98006-1350
City Area Code	425
Local Phone Number	378-4000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.00001 per share
Trading Symbol	TMUS
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Entity Central Index Key	0001283699
Amendment Flag	false