T-Mobile US TMUS · USD

Note 12 – Segment ReportingWe manage our business activities on a consolidated basis and operate as a single operating segment: Wireless. We primarily derive our revenue in the United States by providing wireless communications and broadband services to customers using our wireless networks and selling devices that provide customers access to our wireless networks. The accounting policies of the Wireless segment are the same as those described in Note 1 – Summary of Significant Accounting Policies. Our chief operating decision maker (“CODM”) is our President and Chief Executive Officer. The CODM uses Net income, as reported on our Consolidated Statements of Comprehensive Income, in evaluating performance of the Wireless segment and determining how to allocate resources of the Company as a whole, including investing in our networks and customers, stockholder return programs and acquisition strategy. The CODM does not review assets in evaluating the results of the Wireless segment, and therefore, such information is not presented.The following table provides the operating financial results of our Wireless segment:Year Ended December 31,(in millions)202520242023Total revenues$88,309 $81,400 $78,558 Less: Significant and other segment expensesCost of equipment sales21,277 18,882 18,533 Employee expenses 8,553 7,041 7,629 Lease expense5,197 5,066 5,398 Advertising expense3,668 3,067 2,515 Bad debt expense1,370 1,192 898 Other segment items (1)16,179 15,223 16,526 Impairment expense278 — — Gain on disposal group held for sale— — (25)Depreciation and amortization13,508 12,919 12,818 Interest expense, net3,774 3,411 3,335 Other expense (income), net224 (113)(68)Income tax expense3,289 3,373 2,682 Segment net income$10,992 $11,339 $8,317 (1)Other segment items included in Segment net income primarily includes certain third-party commissions, external labor and services and backhaul expenses.

Note 11 – Revenue from Contracts with CustomersDisaggregation of RevenueWe provide wireless communications and broadband services to a variety of customers, but focus primarily on two categories of customers:•Postpaid customers generally include customers who are qualified to pay after receiving service utilizing phones, 5G broadband gateways, fiber connections, mobile internet devices (including tablets and hotspots), wearables, DIGITS and other connected devices (including SyncUP and IoT); and•Prepaid customers generally include customers who pay for service in advance.We also provide services to wholesale customers which include Machine-to-Machine and Mobile Virtual Network Operator customers that operate on our network but are managed by wholesale partners.Postpaid service revenues, including postpaid phone revenues and postpaid other revenues, were as follows: Year Ended December 31,(in millions)202520242023Postpaid service revenuesPostpaid phone revenues$49,443 $45,762 $43,449 Postpaid other revenues8,489 6,578 5,243 Total postpaid service revenues$57,932 $52,340 $48,692 The balances presented in each revenue line item on our Consolidated Statements of Comprehensive Income represent categories of revenue from contracts with customers disaggregated by type of product and service. Postpaid and prepaid service revenues also include revenues earned for providing premium services to customers, such as device insurance services. Contract BalancesThe contract asset and contract liability balances from contracts with customers as of December 31, 2025 and 2024, were as follows:(in millions)Contract AssetsContract LiabilitiesBalance as of December 31, 2024$720 $1,219 Balance as of December 31, 20251,307 1,653 Change$587 $434 Contract assets primarily represent revenue recognized for equipment sales with promotional bill credits offered to customers that are paid over time and are contingent on the customer maintaining a service contract.The change in the contract asset balance reflects customer activity related to new promotions, offset by billings on existing contracts and impairment, which is recognized as bad debt expense. The current portion of our contract assets of $920 million and $492 million as of December 31, 2025 and 2024, respectively, was included in Other current assets on our Consolidated Balance Sheets.

Note 18 – Commitments and Contingencies Purchase CommitmentsWe have commitments for non-dedicated transportation lines with varying expiration terms that generally extend through 2038. In addition, we have commitments to purchase wireless devices, network services, equipment, software, marketing sponsorship agreements and other items in the ordinary course of business, with various terms through 2045.The following table summarizes the timing of such purchase commitments as of December 31, 2025:(in millions)Less Than 1 Year1 - 3 Years3 - 5 YearsMore Than 5 YearsTotalPurchase commitments (1)$5,047 $6,181 $2,990 $2,836 $17,054 (1) These amounts are not reflective of our entire anticipated purchases under the related agreements but are determined based on the non-cancelable quantities or termination amounts to which we are contractually obligated. On April 24, 2024, we entered into a definitive agreement with a fund operated by EQT, Fund VI, to establish a joint venture between us and Fund VI to acquire Lumos, a fiber-to-the-home platform, from EQT’s predecessor fund, EQT Infrastructure III. On April 1, 2025, we completed the joint acquisition of Lumos. Pursuant to the definitive agreement, we expect to make an additional capital contribution of approximately $500 million between 2027 and 2028 under the existing business plan. The additional capital contribution is excluded from our reported purchase commitments above. See Note 3 – Joint Ventures for additional details.SpectrumWe lease spectrum from various parties. These leases include service obligations to the lessors. Certain spectrum leases provide for minimum lease payments, additional charges, renewal options and escalation clauses. Leased spectrum agreements have varying expiration terms that generally extend through 2050. We expect that all renewal periods in our spectrum leases will be exercised by us. Certain spectrum leases also include purchase options and right-of-first refusal clauses in which we are provided the opportunity to exercise our purchase option if the lessor receives a purchase offer from a third party. The purchase of the leased spectrum is at our option and, therefore, the option price is not included in the commitments below.

Note 9 – DebtDebt was as follows:(in millions)December 31,2025December 31,20243.500% Senior Notes due 2025$— $3,000 4.738% Series 2018-1 A-1 Notes due 2025— 131 1.500% Senior Notes due 20261,000 1,000 2.250% Senior Notes due 20261,800 1,800 2.625% Senior Notes due 20261,200 1,200 7.625% Senior Notes due 2026— 1,500 3.750% Senior Notes due 20274,000 4,000 5.375% Senior Notes due 2027— 500 2.050% Senior Notes due 20281,750 1,750 4.750% Senior Notes due 20281,500 1,500 4.750% Senior Notes to affiliates due 20281,500 1,500 4.800% Senior Notes due 2028900 900 4.910% Class A Senior ABS Notes due 2025— 570 4.950% Senior Notes due 20281,000 1,000 5.152% Series 2018-1 A-2 Notes due 2028827 1,194 6.875% Senior Notes due 20282,475 2,475 2.400% Senior Notes due 2029500 500 2.625% Senior Notes due 20291,000 1,000 3.375% Senior Notes due 20292,350 2,350 3.550% Senior Notes due 2029 (EUR-denominated)705 621 4.200% Senior Notes due 2029700 700 4.250% Class A Senior ABS Notes due 2029500 500 4.740% Class A Senior ABS Notes due 2029500 — 4.850% Senior Notes due 20291,000 1,000 5.050% Class A Senior ABS Notes due 2029500 500 3.875% Senior Notes due 20307,000 7,000 4.340% Class A Senior ABS Notes due 2030500 — 2.250% Senior Notes due 20311,000 1,000 2.550% Senior Notes due 20312,500 2,500 2.875% Senior Notes due 20311,000 1,000 3.500% Senior Notes due 20312,450 2,450 2.700% Senior Notes due 20321,000 1,000 3.150% Senior Notes due 2032 (EUR-denominated)1,175 — 3.700% Senior Notes due 2032 (EUR-denominated)881 777 5.125% Senior Notes due 20321,250 — 8.750% Senior Notes due 20322,000 2,000 4.625% Senior Notes due 2033800 — 5.050% Senior Notes due 20332,600 2,600 5.200% Senior Notes due 20331,250 1,250 6.700% Senior Notes due 2033 489 — 5.150% Senior Notes due 20341,250 1,250 5.750% Senior Notes due 20341,000 1,000 4.700% Senior Notes due 2035900 900 4.950% Senior Notes due 20351,000 — 5.300% Senior Notes due 20351,000 — ECA Facility due March 2036 (1)913 — ECA Facility due November 2036 (1)957 — 3.850% Senior Notes due 2036 (EUR-denominated)764 673 3.500% Senior Notes due 2037 (EUR-denominated)1,175 — 4.375% Senior Notes due 20402,000 2,000 3.000% Senior Notes due 20412,500 2,500 3.800% Senior Notes due 2045 (EUR-denominated)881 — 4.500% Senior Notes due 20503,000 3,000 3.300% Senior Notes due 20513,000 3,000 3.400% Senior Notes due 20522,800 2,800 5.650% Senior Notes due 20531,750 1,750 5.750% Senior Notes due 20541,250 1,250 6.000% Senior Notes due 20541,000 1,000 5.

Note 14 – Income TaxesOur sources of Income before income taxes were as follows:Year Ended December 31,(in millions)202520242023U.S. income$14,018 $14,607 $10,943 Foreign income263 105 56 Income before income taxes$14,281 $14,712 $10,999 Income tax expense is summarized as follows:Year Ended December 31,(in millions)202520242023Current tax expenseFederal$(54)$(57)$(42)State(295)(179)(28)Foreign(76)(17)(12)Total current tax expense(425)(253)(82)Deferred tax expenseFederal(2,608)(2,743)(2,150)State(216)(348)(417)Foreign(40)(29)(33)Total deferred tax expense(2,864)(3,120)(2,600)Total income tax expense$(3,289)$(3,373)$(2,682)The following table summarizes income tax expense and the calculation of the effective income tax rate:Year Ended December 31, 2025Year Ended December 31, 2024Year Ended December 31, 2023(in millions, except percentages)Income Tax ExpenseEffective Tax RateIncome Tax ExpenseEffective Tax RateIncome Tax ExpenseEffective Tax RatePre-tax income$14,281 $14,712 $10,999 Income tax expense3,289 3,373 2,682 Effective income tax rate23.0 %22.9 %24.4 %US federal statutory income tax rate2,999 21.0 %3,089 21.0 %2,310 21.0 %Domestic federalTax credits(286)(2.0)%(141)(1.0)%(130)(1.2)%Non-taxable or non-deductible items(34)(0.2)%35 0.2 %(5)— %Cross-border tax laws55 0.3 %21 0.2 %19 0.2 %Changes in valuation allowances(1)— %(14)(0.1)%(12)(0.1)%Other15 0.1 %(26)(0.2)%(6)— %Domestic state & local income tax, net of federal income tax effect 421 3.0 %451 3.1 %422 3.8 %Foreign tax effects67 0.5 %26 0.2 %26 0.2 %Changes in unrecognized tax benefits53 0.3 %(68)(0.5)%58 0.5 %Effective income tax rate$3,289 23.0 %$3,373 22.9 %$2,682 24.4 %In 2025, state and local income taxes in California, Illinois, Iowa, Texas and Wisconsin comprise the majority of the domestic state and local income taxes, net of federal income tax effect category. In 2024, state and local income taxes in California, Florida, Illinois, New Jersey and Texas comprise the majority of that same category. In 2023, state and local income taxes in California, Florida, Illinois, New Jersey, New York and New York City comprise the majority of that same category.

Note 17 – Leases LesseeWe are a lessee for non-cancelable operating and financing leases for cell sites, switch sites, retail stores, network equipment and office facilities with contractual terms that generally extend through 2040. The majority of cell site leases have a non-cancelable term of five to 15 years with several renewal options that can extend the lease term for five to 50 years. In addition, we have financing leases for network equipment that generally have a non-cancelable lease term of three to five years. The financing leases do not have renewal options and contain a bargain purchase option at the end of the lease.The components of lease expense were as follows:Year Ended December 31,(in millions)202520242023Operating lease expense$4,945 $4,787 $4,987 Financing lease expense:Amortization of right-of-use assets794 787 684 Interest on lease liabilities126 111 79 Total financing lease expense920 898 763 Variable lease expense252 279 411 Total lease expense$6,117 $5,964 $6,161 Information relating to the lease term and discount rate is as follows:Year Ended December 31,202520242023Weighted-Average Remaining Lease Term (Years)Operating leases889Financing leases222Weighted-Average Discount RateOperating leases4.6 %4.4 %4.3 %Financing leases5.0 %5.3 %4.6 %Maturities of lease liabilities as of December 31, 2025, were as follows:(in millions)Operating LeasesFinance LeasesTwelve Months Ending December 31,2026$5,060 $1,222 20274,782 772 20284,425 347 20294,111 17 20303,730 4 Thereafter13,987 7 Total lease payments36,095 2,369 Less: imputed interest(5,910)(99)Total$30,185 $2,270 Interest payments for financing leases were $126 million, $111 million and $79 million for the years ended December 31, 2025, 2024 and 2023, respectively.As of December 31, 2025, we have additional operating leases for commercial properties that have not yet commenced with future lease payments of approximately $38 million.As of December 31, 2025, we were contingently liable for future ground lease payments related to certain tower obligations. These contingent obligations are not included in the above table as the amounts owed are contractually owed by CCI based on the subleasing arrangement. See Note 10 – Tower Obligations for further information.

Note 2 – Business CombinationsAcquisition of Ka’ena CorporationOn March 9, 2023, we entered into a merger and unit purchase agreement (the “Merger and Unit Purchase Agreement”) for the acquisition of 100% of the outstanding equity of Ka’ena Corporation and its subsidiaries, including, among others, Mint Mobile LLC (collectively, “Ka’ena”), for a maximum purchase price of $1.35 billion to be paid out 39% in cash and 61% in shares of T-Mobile common stock (the “Ka’ena Acquisition”). On March 13, 2024, we entered into Amendment No. 1 to the Merger and Unit Purchase Agreement, which amended, among other things, certain mechanics of the payment of the purchase consideration for the Ka’ena Acquisition, which resulted in a nominal increase in the percentage of cash compared to shares of T-Mobile common stock to be paid out as part of the total purchase price.Upon the completion of certain customary closing conditions, including the receipt of certain regulatory approvals, on May 1, 2024 (the “Ka’ena Acquisition Date”), we completed the Ka’ena Acquisition, and as a result, Ka’ena became a wholly owned subsidiary of T-Mobile. Concurrently, and as agreed upon through the Merger and Unit Purchase Agreement, T-Mobile and Ka’ena entered into certain separate transactions, including the effective settlement of the preexisting wholesale arrangement between T-Mobile and Ka’ena and agreements with certain of the sellers to provide services to T-Mobile during the post-acquisition period.Ka’ena is a provider of prepaid mobile services in the U.S. through its primary brands, Mint Mobile and Ultra Mobile, and also offers a selection of wireless devices, including handsets and other mobile communication devices. Prior to the Ka’ena Acquisition, Ka’ena was a wholesale partner of the Company for which we recognized service revenues within Wholesale and other service revenues on our Consolidated Statements of Comprehensive Income, and for which Ka’ena incurred related expenses for the use of our network. On the Ka’ena Acquisition Date, this relationship was effectively terminated, and the Company acquired Ka’ena’s prepaid customer relationships and began to recognize service revenues associated with these customers within Prepaid revenues and operating expenses primarily within Selling, general and administrative expenses on our Consolidated Statements of Comprehensive Income subsequent to the Ka’ena Acquisition Date.

Disclosure of Management’s ResponsibilitiesChief Information Officer The Chief Information Officer is responsible for overseeing the Company’s information technology systems, digital capabilities, and cybersecurity practices. Mark Clancy, our Senior Vice President, Cybersecurity, under the direction of the Chief Information Officer, is responsible for overseeing the cybersecurity organization and promoting a security-centric culture throughout our business and operational functions. The Senior Vice President, Cybersecurity, is at the forefront of enhancing our cybersecurity framework and strengthening the overall cybersecurity program. This involves upgrading tools and capabilities, which are part of a broader, multi-year strategy to continue to enhance security measures. The Senior Vice President, Cybersecurity, oversees the cyber risk management function, which identifies cybersecurity threats, assesses cybersecurity risks and supports the Chief Information Officer and the Company in managing such risks. As the Company’s Chief Information Officer, Jeff Simon has extensive experience in risk management and information security, including serving as the Chief Information Security Officer at Fidelity National Information Services, Inc. Mr. Simon received his Master of Science in Computer Science, Software Engineering & Artificial Intelligence from the Johns Hopkins Whiting School of Engineering and Bachelor of Science in Business Administration and Applied Economics from Marquette University. Mr. Simon is a Certified Information Systems Security Professional.As the Company’s Senior Vice President, Cybersecurity, Mark Clancy has over 25 years of experience in information technology, information security, and cybersecurity, including serving as the Chief Information and Security Officer and Vice President of Cybersecurity and Fraud at Sprint Corporation. Mr. Clancy received his Bachelor of Science in Electrical and Electronics Engineering from Drexel University. Enterprise Risk & Compliance Committee Our Enterprise Risk & Compliance Committee is comprised of a collective of senior management representatives and subject matter experts from across the Company.