Executive Summary
T-Mobile US Inc reported solid QQ3 2024 results, underscoring resilience in a competitive US wireless market. Revenue of $20.162 billion rose 4.7% year over year and 1.97% quarter over quarter, while gross profit reached $13.133 billion, delivering a gross margin of approximately 65.1%. Operating income of $4.796 billion and net income of $3.060 billion translated into an operating margin of 23.8% and a net margin of 15.2%, with EPS of $2.62 (diluted $2.61). EBITDA was $7.954 billion, supporting a strong EBITDA margin around 39.5%. Free cash flow to the equity holder was $1.76 billion, and net cash from operations stood at $6.14 billion, with capital expenditures of $4.38 billion and a year-to-date free cash flow realization consistent with a cash-generative core business.
The balance sheet shows a large but manageable scale of leverage: total debt at $116.15 billion and net debt of about $106.40 billion against total assets of $210.74 billion and stockholders’ equity of $64.25 billion. Liquidity remains robust with cash and cash equivalents of about $9.75 billion and total liquidity signals (operating cash flow, cash balance) supporting near-term obligations. Profitability metrics remain strong by telecom standards, with an implied coverage profile (interest coverage about 6.1x) and a payout ratio of roughly 24.8% based on reported figures. However, the long-term debt burden underscores a leverage-sensitive setup that warrants attention to debt refinancing risk and cash flow stability.
Overall, the QQ3 2024 print reinforces T-Mobile’s position as a leading US wireless carrier with meaningful upside from 5G monetization, postpaid growth, and disciplined cash flow generation, while highlighting the ongoing imperative to manage a high debt load in a high-capital-expenditure environment.
Key Performance Indicators
Key Insights
Revenue: $20.162B; YoY +4.73%, QoQ +1.97%. Gross Profit: $13.133B; YoY +8.38%, QoQ +0.87%. Gross Margin: 65.14%. Operating Income: $4.796B; YoY +33.37%, QoQ +3.59%. Operating Margin: 23.79%. Net Income: $3.060B; YoY +42.81%, QoQ +4.58%. Net Margin: 15.17%. EBITDA: $7.954B; EBITDA Margin: 39.45%. Earnings per Share (EPS): $2.62 (diluted $2.61); YoY +43.17%, QoQ +4.80%. Weighted average shares outstanding: ~1.1669B (basic) / ~1.1707B (diluted).
Cash Flow and liquidity: Net cash provided by operat...
Financial Highlights
Revenue: $20.162B; YoY +4.73%, QoQ +1.97%. Gross Profit: $13.133B; YoY +8.38%, QoQ +0.87%. Gross Margin: 65.14%. Operating Income: $4.796B; YoY +33.37%, QoQ +3.59%. Operating Margin: 23.79%. Net Income: $3.060B; YoY +42.81%, QoQ +4.58%. Net Margin: 15.17%. EBITDA: $7.954B; EBITDA Margin: 39.45%. Earnings per Share (EPS): $2.62 (diluted $2.61); YoY +43.17%, QoQ +4.80%. Weighted average shares outstanding: ~1.1669B (basic) / ~1.1707B (diluted).
Cash Flow and liquidity: Net cash provided by operating activities $6.139B; Capex $4.380B; Free cash flow $1.760B; Net change in cash $3.339B; Cash at end of period $9.986B; Cash at beginning of period $6.647B. Operating cash flow to sales ratio: 0.304; Free cash flow to operating cash flow ratio: 0.681; Cash conversion cycle ~25.96 days.
Balance sheet and leverage: Total assets $210.742B; Total liabilities $146.492B; Shareholders’ equity $64.250B. Total debt $116.151B; Net debt $106.397B. Current ratio 1.075; Quick ratio 0.990; Cash ratio 0.473. Long-term debt $105.720B; Short-term debt $10.431B. Debt-to-equity 1.372; Debt-to-capitalization 0.578. Interest coverage ~6.14x. Smart growth indicators include price-to-book ~3.75, price-to-sales ~11.94, price-to-earnings ~19.67, and price-to-operating cash flow ~39.21.
Operating efficiency and margins: Gross margin ~65.1%, Operating margin ~23.8%, Net margin ~15.2%. Return on assets ~1.45%, Return on equity ~4.76%, Return on capital employed ~2.52%. Cash conversion and capital expenditure coverage ratios indicate robust but debt-intensive cash generation capability.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
20.16B |
4.73% |
1.97% |
| Gross Profit |
13.13B |
8.38% |
0.87% |
| Operating Income |
4.80B |
33.37% |
3.59% |
| Net Income |
3.06B |
42.81% |
4.58% |
| EPS |
2.62 |
43.17% |
4.80% |
Key Financial Ratios
operatingProfitMargin
23.7%
operatingCashFlowPerShare
$5.26
freeCashFlowPerShare
$3.58
dividendPayoutRatio
24.8%
Management Commentary
Transcript data not provided in the input. No management quotes or call highlights are available for QQ3 2024. If transcript material is supplied, a themes-based synthesis (strategy, operations, market conditions) with direct quotes will be added here.
Forward Guidance
No formal forward-looking guidance was included in the provided QQ3 2024 materials. Nevertheless, a qualitative outlook can be inferred from the results and typical sector dynamics: (i) continued monetization of 5G networks and higher postpaid ARPU, (ii) steady devices and accessories revenue support from Metro by T-Mobile and ecosystem lock-in, (iii) sustained free cash flow generation supportive of deleveraging and capital allocation, (iv) ongoing capex intensity to expand network capacity and fixed wireless access. The achievability of mid-to-long-term targets hinges on: maintenance of postpaid growth, competitive pricing discipline, continued network leadership, and the ability to convert EBITDA into meaningful FCF given a high debt load. Investors should monitor: growth in postpaid subscribers and ARPU, spectrum investments, capex trajectory, debt refinancing risk, and any regulatory developments affecting pricing or investment incentives.