The company completed the acquisition of Ka’ena Corporation (Mint Mobile) on May 1, 2024, acquiring prepaid customers, and Vistar Media Inc. (digital-out-of-home advertising) on February 3, 2025, for $621 million, and Blis Holdco Limited (advertising solutions) on March 3, 2025, for $180 million. These acquisitions aim to expand the customer base and diversify revenue streams beyond core wireless.

T-Mobile invested $932 million to acquire a 50% equity interest in the Lumos fiber-to-the-home joint venture on April 1, 2025, adding 97,000 fiber customers, and expects to close the Metronet joint acquisition by July 24, 2025, with an expected investment of approximately $4.6 billion for a 50% equity interest. These ventures are critical for expanding into the fixed broadband market.

The company purchased remaining 600 MHz spectrum licenses for $604 million by June 2, 2025, and acquired additional spectrum from Comcast, with total cash consideration between $1.2 billion and $3.4 billion. Concurrently, it sold a portion of its 3.45 GHz spectrum licenses for $2.0 billion and plans to sell 800 MHz spectrum for $2.9 billion, demonstrating active spectrum management for 5G build-out.

Total operating expenses increased by 5% ($777 million) for the three months ended June 30, 2025, and 4% ($1.3 billion) for the six months ended June 30, 2025, which is lower than the 7% revenue growth for both periods. This indicates management's ability to control costs while investing in growth, partially offset by a $73 million decrease in Sprint Merger-related network decommissioning costs.

Total postpaid customers increased by 6.674 million (7%) to 107.284 million as of June 30, 2025, and 5G broadband net customer additions reached 427,000 for the three months ended June 30, 2025. This demonstrates successful execution on network build-out and customer acquisition strategies, including the integration of 97,000 fiber customers from Lumos.

The company settled the August 2021 cyberattack class action lawsuit, paying $350 million to class members and spending $150 million on data security in 2022-2023. It also reached an agreement with the FCC to resolve one inquiry related to the cyberattack, demonstrating management's commitment to addressing security challenges and regulatory compliance.

The company has recently completed or is in the process of significant acquisitions (Ka'ena, Vistar, Blis, UScellular Wireless Business) and joint ventures (Lumos, Metronet). These transactions introduce risks such as diversion of management attention, increased integration costs, potential loss of talent, and difficulties in integrating financial and operational systems, as highlighted in the risk factors.

The filing explicitly lists adverse economic conditions (inflation, interest rates, consumer credit, supply chain disruptions) and geopolitical instability (Ukraine-Russia, Iran-Israel, Israel-Hamas wars) as factors that could materially affect business, financial condition, and operating results. These external factors are largely beyond management's control.

The company faces ongoing litigation and regulatory matters, including FCC penalties for privacy violations ($47 million paid under protest) and investigations into Sprint's Lifeline program. Failure to fulfill Government Commitments from the Sprint Merger could also result in substantial fines and reputational harm, indicating a persistent regulatory burden.

Total postpaid customers increased by 6.674 million (7%) to 107.284 million as of June 30, 2025, and postpaid net account additions increased by 394,000 (29%) for the three months ended June 30, 2025. This indicates T-Mobile's ability to gain market share and attract new customers in a competitive environment.

Through joint ventures like Lumos and the pending Metronet acquisition, T-Mobile is expanding its fiber-to-the-home footprint, acquiring 97,000 fiber customers from Lumos. This strategic move diversifies its service offerings beyond wireless, positioning the company to compete in the growing fixed broadband market.

Postpaid ARPA increased by $7.33 (5%) to $149.87 for the three months ended June 30, 2025, primarily due to higher average revenue per device sold, an increase in high-end phone mix, and continued adoption of 5G broadband. This suggests successful upselling and leveraging of advanced network capabilities to drive revenue per user.

Cost of equipment sales, exclusive of depreciation and amortization, increased by $571 million (14%) for the three months ended June 30, 2025, and $970 million (11%) for the six months ended June 30, 2025. This was primarily driven by higher average cost per device sold and an increase in high-end phone mix, indicating a shift in sales strategy impacting cost of goods sold.

Cost of services saw a $73 million decrease for the three months ended June 30, 2025, due to lower Sprint Merger-related network decommissioning and integration costs recognized in the prior year. Similarly, depreciation and amortization decreased by $102 million (3%) for the three months and $275 million (4%) for the six months, partly due to acceleration of certain technology assets in the prior year. This reflects the winding down of significant merger-related expenses.

Selling, general and administrative expenses increased by $255 million (5%) for the three months ended June 30, 2025, primarily due to higher payroll and benefit-related expenses, including from acquisitions, and higher advertising expenses. This indicates increased operational costs associated with expanding the business and integrating new entities.

Purchases of property and equipment, including capitalized interest, primarily from the continued build-out of the nationwide 5G network, amounted to $2.4 billion for the three months ended June 30, 2025, and $4.8 billion for the six months ended June 30, 2025. This demonstrates a sustained commitment to enhancing core wireless technology.

The company invested $932 million in the Lumos joint venture to acquire a 50% equity interest in a fiber-to-the-home platform and expects to close the Metronet joint acquisition by July 24, 2025, for approximately $4.6 billion. These strategic investments highlight a move to diversify technological capabilities beyond wireless into fixed broadband.

In the second quarter of 2025, T-Mobile began implementing a new global enterprise resource planning (ERP) system, expected to occur in phases over several years. This initiative aims to replace existing operating and financial systems to improve financial record accuracy, support integrated billing, and accelerate information reporting, indicating a significant digital transformation effort.

T-Mobile repurchased $2.5 billion of common stock (10.1 million shares) during the three months ended June 30, 2025, and $4.9 billion (20.2 million shares) for the six months ended June 30, 2025, under the 2025 Stockholder Return Program. As of July 18, 2025, $6.6 billion remained available for repurchases and dividends through December 31, 2025, signaling strong commitment to shareholder returns.

The company paid $996 million in cash dividends during the three months ended June 30, 2025, and $2.0 billion for the six months ended June 30, 2025. The Board declared a $0.88 per share cash dividend on February 6, 2025, and another $0.88 per share on June 5, 2025, reinforcing a predictable return to shareholders.

During the six months ended June 30, 2025, T-Mobile issued long-term debt for net proceeds of $7.8 billion, including $1.0 billion from the ECA Facility. This capital raise primarily supports the continued build-out of the nationwide 5G network, spectrum acquisitions, and strategic investments, reflecting a proactive approach to funding growth initiatives.

As part of its Sprint Merger commitments, T-Mobile is obligated to deliver high-speed wireless services to the vast majority of Americans, including those in rural areas, and market in-home broadband where spectrum capacity is available. This commitment to widespread connectivity serves a key social responsibility objective.

Following the August 2021 cyberattack, T-Mobile spent $150 million on data security and related technology in 2022 and 2023, and settled a class action lawsuit for $350 million. This demonstrates a commitment to customer data protection and resolving past security incidents, enhancing social responsibility and trust.

The company continues to face regulatory inquiries and potential penalties related to past issues (e.g., FCC privacy violations, Sprint Lifeline program) and must fulfill extensive government commitments from the Sprint Merger. Failure to comply with these obligations could result in fines and reputational harm, highlighting the ongoing importance of governance and compliance.

The filing identifies changes in general economic conditions, including interest rates, consumer credit conditions, inflation, and supply chain disruptions, as factors that may adversely affect the business. Rising costs due to inflation and trade restrictions could pressure margins and growth, indicating a challenging macroeconomic backdrop.

The company explicitly notes the impacts of geopolitical conflicts such as the Ukraine-Russia, Iran-Israel, and Israel-Hamas wars as factors that could lead to further escalations and materially affect its financial and operating results. This highlights the broad external risks impacting global markets.

Management expects the wireless industry's customer growth rate to be moderate compared to historical rates, leading to ongoing competition for customers. This competitive pressure, combined with limitations on price increases due to government commitments, could challenge future growth and margins.