Key Points:

• T-Mobile service revenue grew to $17.4 billion during Q2, postpaid net customer additions rose by 318,000 accounts.
• The second-largest wireless company in the U.S. now serves nearly 133 million postpaid lines.
• T-Mobile’s loyalty app, called T-Life, has been downloaded more than 75 million times.

T-Mobile saw its service revenue increase 6 percent during the company’s second financial quarter (Q2) of the year, driven primarily by postpaid subscriber additions and higher service-based revenue.

The country’s second-largest wireless provider earned $17.4 billion during Q2, with postpaid service revenue accounting for most of its earnings, clocking in at $14.1 billion or 9 percent higher on a year-over basis.

Net income climbed 10 percent to $3.2 billion, while diluted earnings per share (EPS) rose 14 percent to $2.84.

T-Mobile added 1.7 million postpaid lines during the period, which the company characterized as its best Q2 in its history. Net postpaid line additions rose to 830,000, up from 770,000 net additions logged during Q2 2024. T-Mobile occasionally offers its long-time subscribers free wireless lines to help juice net postpaid additions. Total subscriber postpaid account additions climbed to 318,000, a 6 percent increase.

By the end of June, T-Mobile counted nearly 133 million postpaid wireless lines served on its 4G LTE and 5G networks.

“Customers are switching to the Un-carrier at a record pace,” T-Mobile CEO Mike Sievert said in a statement on Wednesday. “These durable advantages enabled us to once again translate customer growth into financial growth, with the industry’s best service revenue growth by a wide mile and record Q2 Adjusted Free Cash Flow.”

On a conference call with investors, Sievert said customers were largely shrugging off recent rate increases on the company’s postpaid service, with most taking advantage of upgrade offers and perks like free Netflix with Ads, in-flight WiFi access and international data allotments through the pricier plans.

While the company’s postpaid business remains healthy, its prepaid business was stagnant. T-Mobile added just 39,000 net prepaid lines during Q2, down from the 179,000 prepaid lines logged last year. Prepaid churn ticked up slightly to 2.65 percent, up from 2.54 percent reported during Q2 2024. T-Mobile offers prepaid service under its own brand name and through wireless subsidiaries like Mint Mobile, Ultra Mobile and Metro by T-Mobile.

Fixed wireless broadband service continues to be a growth element for T-Mobile, with the company adding 454,000 new fixed wireless customers, a 12 percent increase compared to last year. T-Mobile offers fixed wireless broadband to residential subscribers and business clients.

The company expects core adjusted earnings before interest, tax, depreciation and amortization (EBITDA) for the year to land between $33.3 billion and $33.7 billion, while adjusted free cash flow is forecast in the range of $17.6 billion to $18.0 billion dollars, the company said.

New deal with Comcast, Charter

During its earning call, Sievert remarked on a blockbuster deal with peer telecoms Charter and Comcast that involves a new business wireless product rolling out next year.

On Tuesday, Comcast and Charter affirmed T-Mobile’s wireless network will power its forthcoming mobile offerings called Comcast Business Mobile and Spectrum Mobile for Business.

The companies currently work with T-Mobile rival Verizon for its consumer wireless products, but a Verizon executive’s remarks during an industry conference that were critical of cable-backed wireless products may have encouraged Comcast and Charter to partner with T-Mobile for its enterprise wireless service.

Sievert said the pact was a win for all involved parties, saying it allows Charter and Comcast to deepen their relationships with large enterprise clients while also giving them an opportunity to reach small business customers that have driven incremental revenue growth for T-Mobile over the past few years.

“While it’s going to take some time for this to grow into something meaningful, I’m super excited about their capabilities to generate growth in the SMB sector in a way that will be truly incremental for T-Mobile U.S.,” Sievert affirmed.

T-Life app grows to 75 million installs

Sievert also offered some rare insight into T-Life, the loyalty app that powers the company’s rewards program T-Mobile Tuesdays and which offers wireless subscribers access to various discounts and freebies throughout the month.

Since launching last year, T-Life has been installed on smartphones and other devices more than 75 million times, Sievert confirmed. Customers are not just taking advantage of free perks like access to Major League Baseball’s streaming platform each year, they’re also upgrading their devices through the T-Life app, with two-thirds of customers using the platform to buy new phones or other devices.

While T-Mobile does not break out its advertising revenue as a standalone line item in its earnings report, Sievert promised that T-Mobile is focused on harnessing the power of T-Life and other digital platforms to increase ad-based revenue opportunities.