What changed in this filing

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Item 1. Financial Statements

2026-04-28 compared with 2025-10-23 · 264 added, 572 removed, 686 unchanged (55% of the section changed)

2 unchanged sentences

Condensed Consolidated Balance Sheets

(in millions, except share and per share amounts) September 30,

(in millions, except share and per share amounts) March 31,

2026 December 31,

48 unchanged sentences

Condensed Consolidated Statements of Comprehensive Income

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(in millions, except share and per share amounts) 2026 2025

10 unchanged sentences

Selling, general and administrative 5,966 5,488

Impairment expense 278 — 278 —

Depreciation and amortization 3,817 3,198

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Interest expense, net ( 1,031 ) ( 916 )

Other (expense) income, net ( 78 ) 7 ( 135 ) 19

Other expense, net ( 132 ) ( 46 )

Total other expense, net ( 1,163 ) ( 962 )

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Reclassification of loss from cash flow hedges, net of tax effect of $ 17 and $ 16

48 44 141 130

Losses on fair value hedges, net of tax effect of $( 12 ) and $( 61 )

( 36 ) ( 177 )

Unrealized loss on foreign currency translation adjustment, net of tax effect of $ 0 , $ 0 , $ 0 and $ 0

Amortization of actuarial gain, net of tax effect of $ 0 and $ 0

( 1 ) ( 4 ) ( 4 ) ( 13 )

Other comprehensive income (loss) 13 ( 132 )

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Condensed Consolidated Statements of Cash Flows

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(in millions) 2026 2025

7 unchanged sentences

Losses from sales of receivables 20 22

Impairment expense 278 — 278 —

Changes in operating assets and liabilities

14 unchanged sentences

Proceeds from the sale of property, equipment and intangible assets 95 7

Proceeds related to beneficial interests in securitization transactions — 984 — 2,832

Acquisition of companies, net of cash acquired ( 1 ) ( 727 )

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Net cash (used in) provided by financing activities ( 6,440 ) 3,193

Effect of exchange rate changes on cash and cash equivalents, including restricted cash — — 13 —

Change in cash and cash equivalents, including restricted cash ( 2,067 ) 6,631

7 unchanged sentences

(in millions, except share and per share amounts) Common Stock Outstanding Treasury Stock Outstanding Treasury Shares at Cost Par Value and Additional Paid-in Capital Accumulated Other Comprehensive Loss Retained Earnings Total Stockholders' Equity

Balance as of June 30, 2025 1,127,450,618 146,725,778 $ ( 25,569 ) $ 69,008 $ ( 908 ) $ 18,576 $ 61,107

Net income — — — — — 2,714 2,714

Dividends declared ($ 1.02 per share)

— — — — — ( 1,135 ) ( 1,135 )

Other comprehensive income — — — — 27 — 27

Stock-based compensation — — — 216 — — 216

Stock issued for employee stock purchase plan 437,777 — — 89 — — 89

Issuance of vested restricted stock units 1,175,288 — — — — — —

Shares withheld related to net share settlement of stock awards and stock options ( 365,677 ) — — ( 92 ) — — ( 92 )

Repurchases of common stock ( 10,204,072 ) 10,204,072 ( 2,494 ) — — — ( 2,494 )

Other, net 12,306 ( 654 ) ( 1 ) 46 — — 45

Balance as of September 30, 2025 1,118,506,240 156,929,196 $ ( 28,064 ) $ 69,267 $ ( 881 ) $ 20,155 $ 60,477

Balance as of December 31, 2025 1,106,930,661 168,843,574 $ ( 30,545 ) $ 69,460 $ ( 848 ) $ 21,136 $ 59,203

2 unchanged sentences

— — — — — ( 1,099 ) ( 1,099 )

Other comprehensive loss — — — — ( 24 ) — ( 24 )

Stock-based compensation — — — 596 — — 596

Stock issued for employee stock purchase plan 1,150,449 — — 214 — — 214

Issuance of vested restricted stock units 4,627,936 — — — — — —

Shares withheld related to net share settlement of stock awards and stock options ( 1,491,249 ) — — ( 394 ) — — ( 394 )

Repurchases of common stock ( 30,444,090 ) 30,444,090 ( 7,475 ) — — — ( 7,475 )

Other, net 83,513 ( 9,577 ) ( 5 ) 53 — — 48

Balance as of September 30, 2025 1,118,506,240 156,929,196 $ ( 28,064 ) $ 69,267 $ ( 881 ) $ 20,155 $ 60,477

The accompanying notes are an integral part of these condensed consolidated financial statements.

Index for Notes to the Condensed Consolidated Financial Statements

T-Mobile US, Inc.

Condensed Consolidated Statement of Stockholders’ Equity

Balance as of June 30, 2024 1,166,772,891 103,032,151 $ ( 15,270 ) $ 68,463 $ ( 917 ) $ 10,360 $ 62,636

Net income — — — — — 3,059 3,059

Dividends declared ($ 0.88 per share)

— — — — — ( 1,018 ) ( 1,018 )

Other comprehensive income — — — — 13 — 13

5 unchanged sentences

Other, net 26,711 2,292 ( 2 ) 3 — — 1

Balance as of September 30, 2024 1,164,613,922 106,211,047 $ ( 15,921 ) $ 68,659 $ ( 889 ) $ 12,401 $ 64,250

Balance as of March 31, 2026 1,085,872,037 192,175,791 $ ( 35,497 ) $ 69,670 $ ( 835 ) $ 22,541 $ 55,879

Balance as of December 31, 2024 1,144,579,681 126,494,683 $ ( 20,584 ) $ 68,798 $ ( 857 ) $ 14,384 $ 61,741

2 unchanged sentences

— — — — — ( 995 ) ( 995 )

Other comprehensive income — — — — 75 — 75

Other comprehensive loss — — — — ( 132 ) — ( 132 )

Stock-based compensation — — — 177 — — 177

3 unchanged sentences

Repurchases of common stock ( 10,091,227 ) 10,091,227 ( 2,495 ) — — — ( 2,495 )

Ka’ena Acquisition upfront consideration 3,264,952 — — 536 — — 536

Other, net 41,339 12,244 ( 6 ) 10 — — 4

Balance as of September 30, 2024 1,164,613,922 106,211,047 $ ( 15,921 ) $ 68,659 $ ( 889 ) $ 12,401 $ 64,250

Balance as of March 31, 2025 1,137,339,578 136,598,154 $ ( 23,085 ) $ 68,837 $ ( 989 ) $ 16,342 $ 61,105

The accompanying notes are an integral part of these condensed consolidated financial statements.

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Business Combinations

Joint Ventures

Receivables and Related Allowance for Credit Losses

Sales of Certain Receivables

Property and Equipment

Goodwill, Spectrum License Transactions and Other Intangible Assets

Spectrum License Transactions

Fair Value Measurements

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Commitments and Contingencies

Restructuring Costs

Additional Financial Information

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Investments in entities that we do not control but have significant influence are accounted for under the equity method.

We record our proportionate share of our equity method investees’ earnings within Other (expense) income, net on our Condensed Consolidated Statements of Comprehensive Income.

We record our proportionate share of our equity method investees’ earnings (losses) within Other expense, net on our Condensed Consolidated Statements of Comprehensive Income.

The preparation of financial statements in conformity with United States (“U.S.”) generally accepted accounting principles (“GAAP”) requires our management to make estimates and assumptions that affect the financial statements and accompanying notes.

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Estimates are inherently subject to judgment and actual results could differ from those estimates.

Accounting Pronouncements Not Yet Adopted

Income Tax Disclosures

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, “Income Taxes (Topic 740):

Improvements to Income Tax Disclosures.” The standard enhances income tax disclosure requirements for all entities by requiring specified categories and greater disaggregation within the rate reconciliation table, disclosure of income taxes paid by jurisdiction, and providing clarification on uncertain tax positions and related financial statement impacts.

The standard will be effective for us for our fiscal year 2025 annual financial statements with early adoption permitted.

We plan to adopt the standard when it becomes effective for us beginning in our fiscal year 2025 annual financial statements, and we expect the adoption of the standard will impact certain of our income tax disclosures.

Disaggregation of Income Statement Expenses

In November 2024, the FASB issued ASU 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses.” In January 2025, the FASB issued ASU 2025-01, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40):

Clarifying the Effective Date,” which clarifies the effective date of ASU 2024-03.

The standard requires that public business entities disclose additional information about specific expense categories in the notes to financial statements for interim and annual reporting periods.

The standard will become effective for us for our fiscal year 2027 annual financial statements and interim financial statements thereafter and may be applied prospectively to periods after the adoption date or retrospectively for all prior periods presented in the financial statements, with early adoption permitted.

We plan to adopt the standard when it becomes effective for us beginning in our fiscal year 2027 annual financial statements, and we are currently evaluating the impact this guidance will have on the disclosures included in the Notes to the Consolidated Financial Statements.

Accounting Pronouncements Adopted During the Current Year

Interim Reporting

In December 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2025-11, “Interim Reporting (Topic 270):

Narrow-Scope Improvements.” The standard improves the navigability of interim disclosures, clarifies when Topic 270 applies and provides additional interim disclosure guidance, including a principle to disclose material events since the most recent annual reporting period.

The amendments do not change the underlying objectives of interim reporting but are designed to enhance clarity in application.

We evaluated this standard and concluded our interim reporting disclosures are consistent with this standard.

Accordingly, the adoption of this standard in the first quarter of 2026 did not have a material impact on our interim reporting disclosures.

Internal-Use Software Accounting and Disclosures

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The new guidance modernizes accounting for software developed using incremental and iterative methods, where the existing model provided limited direction on when capitalization should begin.

Index for Notes to the Condensed Consolidated Financial Statements

The ASU also specifies that the disclosures under ASC 360-10, “Property, Plant, and Equipment—Overall,” apply to capitalized software costs accounted for under ASC 350-40, regardless of how those costs are presented in the financial statements.

The standard will become effective for our fiscal year 2028 annual financial statements and interim financial statements thereafter and may be applied prospectively to periods after the adoption date, retrospectively for all prior periods presented in the financial statements or using a modified retrospective transition approach with early adoption permitted.

We are currently evaluating the impact this guidance will have on our Consolidated Financial Statements and related disclosures.

As of January 1, 2026, we have adopted this standard, and it was applied prospectively after this date.

The adoption of this standard did not have a material impact on our condensed consolidated financial statements and related disclosures.

Accounting Pronouncements Not Yet Adopted

Disaggregation of Income Statement Expenses

In November 2024, the FASB issued ASU 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses.” The standard requires that public business entities disclose additional information about specific expense categories in the notes to financial statements for interim and annual reporting periods.

The standard will become effective for us for our fiscal year 2027 annual financial

Index for Notes to the Condensed Consolidated Financial Statements

statements and interim financial statements thereafter and may be applied prospectively to periods after the adoption date or retrospectively for all prior periods presented in the financial statements, with early adoption permitted.

Note 2 – Business Combinations

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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.

In accordance with the terms of the Merger and Unit Purchase Agreement, the total purchase price was variable, dependent upon specified performance indicators of Ka’ena, and consists of an upfront payment on the Ka’ena Acquisition Date and an earnout payable in the third quarter of 2026.

In accordance with the terms of the Merger and Unit Purchase Agreement, the total purchase price consisted of an upfront payment on the Ka’ena Acquisition Date and an earnout payable in the third quarter of 2026.

On June 30, 2025, we amended the Merger and Unit Purchase Agreement to set the calculation of the earnout as the difference between the maximum purchase price of $ 1.35 billion and the upfront payment, as adjusted, and removed the requirement for Ka’ena to achieve specified performance indicators.

As of September 30, 2025, $ 239 million of liabilities for deferred consideration and $ 149 million of liabilities for post-acquisition services were presented within current liabilities on our Condensed Consolidated Balance Sheets, and as of December 31, 2024, $ 202 million of liabilities for deferred consideration and $ 80 million of liabilities for post-acquisition services were presented within long-term liabilities on our Condensed Consolidated Balance Sheets.

Fair Value of Assets Acquired and Liabilities Assumed

We accounted for the Ka’ena Acquisition as a business combination.

The identifiable assets acquired and liabilities assumed from Ka’ena were recorded at their fair values as of the Ka’ena Acquisition Date and consolidated with those of T-Mobile.

Assigning fair values to the assets acquired and liabilities assumed at the Ka’ena Acquisition Date required the use of judgment regarding estimates and assumptions.

For the fair values of the assets acquired and liabilities assumed, we used the cost and income approaches.

Index for Notes to the Condensed Consolidated Financial Statements

The following table summarizes the assigned fair values for each class of assets acquired and liabilities assumed at the Ka’ena Acquisition Date, as adjusted during the measurement period, which closed on April 30, 2025, based on information identified after the Ka’ena Acquisition Date.

We retained the services of certified valuation specialists to assist with assigning values to certain acquired assets.

(in millions) May 1, 2024

Cash and cash equivalents $ 24

Accounts receivable 34

Prepaid expenses 5

Other current assets 10

Property and equipment 1

Operating lease right-of-use assets 2

Other intangible assets 740

Other assets 51

Total assets acquired 1,647

Accounts payable and accrued liabilities 42

Deferred revenue 297

Short-term operating lease liabilities 1

Deferred tax liabilities 83

Operating lease liabilities 2

Other long-term liabilities 81

Total liabilities assumed 506

Total consideration transferred $ 1,141

Intangible Assets

Goodwill with an assigned value of $ 777 million represents the excess of the consideration transferred over the fair values of assets acquired and liabilities assumed.

The assigned goodwill recognized includes expected growth in customers and service revenues to be achieved from the operations of the combined company, the assembled workforce of Ka’ena and intangible assets that do not qualify for separate recognition.

Of the total amount of assigned goodwill resulting from the Ka’ena Acquisition of $ 777 million, the amount deductible for tax purposes is $ 121 million.

All of the goodwill acquired is allocated to the Wireless reporting unit.

Based on the amount of the adjusted upfront payment, an additional $ 420 million in future cash and T-Mobile common stock is

payable in satisfaction of the earnout, related to:

• $ 251 million for the acquired Ka’ena business;

• $ 169 million for services to be provided to T-Mobile by certain of the sellers during the post-acquisition period, as well as the replacement of equity awards of certain Ka’ena employees.

As of March 31, 2026 and December 31, 2025, $ 244 million and $ 242 million of liabilities for deferred earnout consideration, respectively, and $ 164 million and $ 157 million of liabilities for post-acquisition services, respectively, were presented within current liabilities on our Condensed Consolidated Balance Sheets.

Acquisition of UScellular Wireless Business

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On May 23, 2025, we launched exchange offers (the “Exchange Offers”) for any and all of certain outstanding senior notes of UScellular for new notes of T-Mobile with the same interest rate, interest payment dates, maturity dates and redemption terms as each corresponding series of senior notes of UScellular.

In conjunction with the Exchange Offers, we also solicited consents for each series of the outstanding senior notes of UScellular to effect a number of amendments to the applicable indenture under which each such series of notes were issued and are governed (the “Consent Solicitations”).

The consummation of the Exchange Offers and Consent Solicitations were subject to the closing of the UScellular acquisition, which occurred on August 1, 2025.

On July 22, 2025, we entered into three separate asset purchase agreements for the acquisition of substantially all of the wireless operations assets (together with UScellular’s wireless operations and select spectrum assets, the “UScellular Wireless Business”) of each of Farmers Cellular Telephone Company, Inc., Iowa RSA No.

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Index for Notes to the Condensed Consolidated Financial Statements

The UScellular Wireless Business offers a comprehensive range of wireless communications products and services.

As a combined company, we expect to increase competition in the U.S.

wireless and broadband industries, achieve synergies and enhance our rural 5G coverage with our combined network footprint.

Following the closing of the transactions, UScellular and the Iowa Entities will retain ownership of their other spectrum licenses, as well as their towers.

On August 1, 2025, upon the completion of certain customary closing conditions, including the receipt of certain regulatory approvals (the “UScellular Acquisition Date”), we completed the acquisition of the UScellular Wireless Business (the “UScellular Acquisition”), and as a result, the UScellular Wireless Business became wholly owned by T-Mobile.

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Additionally, the closing of the UScellular Acquisition obligated us to execute the Exchange Offers.

UScellular senior notes with an aggregate outstanding principal balance of $ 1.7 billion were subsequently exchanged for T-Mobile notes in the Exchange Offers.

UScellular senior notes with an aggregate outstanding principal balance of $ 1.7 billion were subsequently exchanged for T-Mobile notes in the Exchange Offers on August 5, 2025.

The obligation to execute the Exchange Offers was recorded as debt assumed in the UScellular Acquisition with an aggregate assigned fair value of $ 1.7 billion.

On the UScellular Acquisition Date, UScellular changed its legal name to Array Digital Infrastructure, Inc.

On August 5, 2025, we issued debt with an aggregate principal balance of $ 1.7 billion in settlement of the Exchange Offers.

The issued debt consisted of 6.700 % Senior Notes due 2033 in an aggregate principal amount of $ 489 million, 6.250 % Senior Notes due 2069 in an aggregate principal amount of $ 393 million, 5.500 % Senior Notes due March 2070 in an aggregate principal amount of $ 401 million and 5.500 % Senior Notes due June 2070 in an aggregate principal amount of $ 395 million.

The notes rank equally with all other unsecured and unsubordinated indebtedness of T-Mobile USA.

On the UScellular Acquisition Date, we entered into a master license agreement to lease space on at least 2,100 towers being retained by UScellular and extended our tenancy term on approximately 600 additional towers where we are already leasing space from UScellular for 15 years post-closing.

In addition, through the master license agreement, we leased space on approximately 1,800 additional UScellular towers on an interim basis for up to 30 months after the UScellular Acquisition Date.

As a result of entering into the master license agreement, we recorded right-of use assets and lease liabilities of $ 1.0 billion each on the UScellular Acquisition Date, with a corresponding increase to both deferred tax liabilities and assets of $ 261 million.

For towers where we were not leasing space prior to the UScellular Acquisition Date, the related balances have been included in the fair value of assets acquired and liabilities assumed.

The financial results of the UScellular Wireless Business from the UScellular Acquisition Date through September 30, 2025, were not material to our Condensed Consolidated Statements of Comprehensive Income, nor were they material to our prior period consolidated results on a pro forma basis.

Transaction-related costs for the UScellular Acquisition did not have a material impact on our Condensed Consolidated Statements of Comprehensive Income.

Consideration Transferred

The acquisition-date fair value of consideration transferred in the UScellular Acquisition comprised of the following:

(in millions) August 1, 2025

Fair value of cash paid on the UScellular Acquisition Date $ 2,811

Fair value of T-Mobile replacement equity awards attributable to pre-combination service 44

Total fair value of consideration exchanged $ 2,855

The amount of cash paid on the UScellular Acquisition Date is subject to customary adjustments within a 120 -day review period.

Fair Value of Assets Acquired and Liabilities Assumed

We have accounted for the UScellular Acquisition as a business combination.

The identifiable assets acquired and liabilities assumed of the UScellular Wireless Business were recorded at their provisionally assigned fair values as of the UScellular Acquisition Date and consolidated with those of T-Mobile.

Assigning fair values to the assets acquired and liabilities assumed at the UScellular Acquisition Date requires the use of judgment regarding estimates and assumptions.

For the provisionally assigned fair values of the assets acquired and liabilities assumed, we used the cost, income and market approaches.

Index for Notes to the Condensed Consolidated Financial Statements

The following table summarizes the provisionally assigned fair values for each class of assets acquired and liabilities assumed at the UScellular Acquisition Date.

We retained the services of certified valuation specialists to assist with assigning values to certain acquired assets and liabilities assumed.

We are in the process of finalizing the valuation of the assets acquired and liabilities assumed.

Therefore, the provisionally assigned fair values set forth below are subject to adjustment as additional information is obtained.

(in millions) August 1, 2025

Cash and cash equivalents $ 12

Accounts receivable 317

Equipment installment plan receivables 503

Inventory 130

Prepaid expenses 63

Other current assets 33

Property and equipment 1,430

Operating lease right-of-use assets (1)

Spectrum licenses 1,730

Other intangible assets 397

Equipment installment plan receivables due after one year 388

Deferred tax assets 55

Other assets 126

Total assets acquired 6,614

Accounts payable and accrued liabilities 301

Deferred revenue 275

Short-term operating lease liabilities (1)

Other current liabilities 114

Long-term debt (2)

Operating lease liabilities (1)

Other long-term liabilities 208

Total liabilities assumed 3,759

Total consideration transferred $ 2,855

(1) Includes $ 749 million, $ 51 million and $ 698 million of Operating lease right-of-use assets, Short-term operating lease liabilities and Operating lease liabilities, respectively, for towers associated with the UScellular master license agreement where we were not leasing tower space prior to the UScellular Acquisition Date.

(2) The obligation to execute the Exchange Offers was recorded as debt assumed in the UScellular Acquisition with an aggregate assigned fair value of $ 1.7 billion.

Intangible Assets

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Expected synergies from the UScellular Acquisition include the cost savings from the planned integration of network infrastructure, facilities, personnel and systems.

Other intangible assets acquired include $ 379 million of customer relationships with an estimated weighted-average useful life of ten years and $ 18 million of tradenames with an estimated weighted-average useful life of one year .

The customer relationships are amortized using the sum-of-the-years digits method over their estimated useful lives and the tradenames are amortized on a straight-line basis over their estimated useful lives.

The preliminary fair value of customer relationships was estimated using the income approach.

This fair value measurement is based on significant inputs not observable in the market, and, therefore, represents a Level 3 measurement as defined in ASC 820.

The key assumptions in applying the income approach include revenue over an estimated period of time, the discount rate, forecasted expenses and contributory asset charges.

The preliminary fair value of Spectrum licenses of $ 1.7 billion was estimated using the market and income approach, specifically a Greenfield model.

This fair value measurement is based on significant inputs not observable in the market and,

Index for Notes to the Condensed Consolidated Financial Statements

therefore, represents a Level 3 measurement as defined in ASC 820.

The key assumptions in applying the income approach include the discount rate, estimated market share, estimated capital and operating expenditures, forecasted service revenue and a long-term growth rate for a hypothetical market participant that enters the wireless industry and builds a nationwide wireless network.

Acquired Receivables

The fair value of the assets acquired includes Accounts receivable of $ 317 million and equipment installment plan (“EIP”) receivables of $ 891 million.

The unpaid principal balance under these contracts as of the UScellular Acquisition Date was $ 328 million and $ 1.1 billion, respectively.

The difference between the fair value and the unpaid principal balance primarily represents discounting for market interest rates and amounts expected to be uncollectible.

Acquisition of Vistar Media Inc.

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A portion of the payment made on the Vistar Acquisition Date was for the settlement of preexisting relationships with Vistar and is excluded from the fair value of consideration transferred.

The financial results of Vistar from the Vistar Acquisition Date through September 30, 2025, were not material to our Condensed Consolidated Statements of Comprehensive Income, nor were they material to our prior period consolidated results on a pro forma basis.

Costs related to the Vistar Acquisition were not material to our Condensed Consolidated Statements of Comprehensive Income.

Fair Value of Assets Acquired and Liabilities Assumed

We have accounted for the Vistar Acquisition as a business combination.

The identifiable assets acquired and liabilities assumed from Vistar were recorded at their provisionally assigned fair values as of the Vistar Acquisition Date and consolidated with those of T-Mobile.

The identifiable assets acquired and liabilities assumed from Vistar were recorded at their fair values as of the Vistar Acquisition Date and consolidated with those of T-Mobile.

Assigning fair values to the assets acquired and liabilities assumed at the Vistar Acquisition Date requires the use of judgment regarding estimates and assumptions.

For the provisionally assigned fair values of the assets acquired and liabilities assumed, we used the cost and income approaches.

The following table summarizes the provisionally assigned fair values for each class of assets acquired and liabilities assumed at the Vistar Acquisition Date.

We are in the process of finalizing the valuation of the assets acquired and liabilities assumed, including income tax-related amounts.

Therefore, the provisionally assigned fair values set forth below are subject to adjustment as additional information is obtained.

For the fair values of the assets acquired and liabilities assumed, we used the cost and income approaches.

Index for Notes to the Condensed Consolidated Financial Statements

The following table summarizes the assigned fair values for each class of assets acquired and liabilities assumed at the Vistar Acquisition Date, as adjusted for information identified during the measurement period, which closed on February 2, 2026.

(in millions) February 3, 2025

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Total consideration transferred $ 618

Index for Notes to the Condensed Consolidated Financial Statements

Intangible Assets

Goodwill with a provisionally assigned value of $ 343 million represents the excess of the consideration transferred over the fair values of assets acquired and liabilities assumed.

The provisionally assigned goodwill recognized includes expected growth in service revenues to be achieved from the operations of the combined company, the assembled workforce of Vistar and intangible assets that do not qualify for separate recognition.

Other intangible assets acquired include $ 201 million of customer relationships with an estimated weighted-average useful life of ten years , $ 8 million of tradenames with an estimated weighted-average useful life of four years and $ 55 million of other intangible assets with an estimated weighted-average useful life of four years .

The preliminary fair value of customer relationships was estimated using the income approach.

This fair value measurement is based on significant inputs not observable in the market, and, therefore, represents a Level 3 measurement as defined in ASC 820.

The key assumptions in applying the income approach include revenue over an estimated period of time, the discount rate, forecasted expenses and contributory asset charges.

Acquisition of Blis Holdco Limited

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A portion of the payment made on the Blis Acquisition Date was for the settlement of preexisting relationships with Blis and is excluded from the fair value of consideration transferred.

The financial results of Blis from the Blis Acquisition Date through September 30, 2025, were not material to our Condensed Consolidated Statements of Comprehensive Income, nor were they material to our prior period consolidated results on a pro forma basis.

Costs related to the Blis Acquisition were not material to our Condensed Consolidated Statements of Comprehensive Income.

We have accounted for the Blis Acquisition as a business combination.

The fair value of consideration transferred as of the Blis Acquisition Date totaled $ 174 million.

The identifiable assets acquired and liabilities assumed from Blis were recorded at their provisionally assigned fair values as of the Blis Acquisition Date and consolidated with those of T-Mobile.

The provisionally assigned fair values of total assets acquired, including goodwill, and total liabilities assumed at the Blis Acquisition Date were $ 264 million and $ 90 million, respectively.

Goodwill with a provisionally assigned value of $ 105 million represents the excess of the consideration transferred over the fair values of assets acquired and liabilities assumed.

We are in the process of finalizing the valuation of the assets acquired and liabilities assumed.

Therefore, the provisionally assigned fair values above are subject to adjustment as additional information is obtained.

Note 3 – Joint Ventures

Lumos Joint Venture

On April 24, 2024, we entered into a definitive agreement with a fund operated by EQT, EQT Infrastructure VI (“Fund VI”), to establish a joint venture between us and Fund VI to acquire Lumos (“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 upon the completion of certain customary closing conditions, including the receipt of certain regulatory approvals.

During the three months ended June 30, 2025, we invested $ 932 million to acquire a 50 % equity interest in the joint venture and 97,000 fiber customers.

For the customers acquired, we recognized an intangible asset amortized using the sum-of-the-years digits method over a weighted-average useful life of nine years .

Following the joint acquisition, Lumos transitioned to a wholesale model where we are the anchor tenant owning residential and small business customer relationships.

The funds invested by us will be used by the joint venture to fund future fiber builds.

In addition, 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.

Index for Notes to the Condensed Consolidated Financial Statements

Metronet Joint Venture

On July 18, 2024, we entered into a definitive agreement with KKR & Co.

to establish a joint venture to acquire Metronet Holdings, LLC and certain of its affiliates (collectively, “Metronet”), a fiber-to-the-home platform.

On July 24, 2025, we completed the joint acquisition of Metronet upon the completion of certain customary closing conditions, including the receipt of certain regulatory approvals.

During the three months ended September 30, 2025, we invested $ 4.6 billion to acquire a 50 % equity interest in the joint venture and 713,000 fiber customers.

For the customers acquired, we recognized an intangible asset amortized using the sum-of-the-years digits method over a weighted-average useful life of ten years .

Following the joint acquisition, Metronet became a wholesale services provider, and its residential fiber retail operations and customers transitioned to us.

We do not anticipate making further capital contributions under the existing business plan.

Method of Accounting

We account for the Lumos and Metronet joint ventures under the equity method of accounting with our proportionate share of earnings presented within Other (expense) income, net on our Condensed Consolidated Statements of Comprehensive Income.

We recognize revenues for fiber customers and the related wholesale costs paid to the joint ventures for network access within Postpaid revenues and Cost of services, respectively, on our Condensed Consolidated Statements of Comprehensive Income.

The identifiable assets acquired and liabilities assumed from Blis were recorded at their fair values as of the Blis Acquisition Date and consolidated with those of T-Mobile.

The assigned fair values of total assets acquired were $ 263 million, including goodwill of $ 103 million, and total liabilities assumed were $ 89 million at the Blis Acquisition Date.

These amounts reflect adjustments or information identified during the measurement period, which closed on March 2, 2026.

Note 3 – Receivables and Related Allowance for Credit Losses

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Our portfolio of receivables is comprised of two portfolio segments:

accounts receivable and EIP receivables.

accounts receivable and equipment installment plan (“EIP”) receivables.

Accounts Receivable Portfolio Segment

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We estimate credit losses associated with our accounts receivable portfolio segment using an expected credit loss model, which utilizes an aging schedule methodology based on historical information and is adjusted for asset-specific considerations, current economic conditions and reasonable and supportable forecasts.

Index for Notes to the Condensed Consolidated Financial Statements

Our approach considers a number of factors, including our overall historical credit losses and payment experience, as well as current collection trends, such as write-off frequency and severity.

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In addition, certain customers within the Subprime category may be required to pay a deposit.

Index for Notes to the Condensed Consolidated Financial Statements

To determine a customer’s credit profile and assist in determining their credit class, we use a proprietary credit scoring model that measures the credit quality of a customer leveraging several factors, such as credit bureau information and consumer credit risk scores, as well as service and device plan characteristics.

Installment loans acquired in the UScellular Acquisition are included in EIP receivables and generally have an initial term of 36 months.

We applied our proprietary credit scoring model to the customers acquired in the UScellular Acquisition with an outstanding EIP receivable balance.

Based on tenure, consumer credit risk score and credit profile, these acquired customers were classified into our customer classes of Prime or Subprime.

Our proprietary credit scoring model is applied to all EIP arrangements originated after the UScellular Acquisition Date.

For EIP receivables acquired in the UScellular Acquisition, the difference between the fair value and unpaid principal balance of the loan at the acquisition date is accreted to interest income over the contractual life of the loan using the effective interest method.

EIP receivables had a combined weighted-average effective interest rate of 10.5 % and 11.1 % as of September 30, 2025, and December 31, 2024, respectively.

EIP receivables had a combined weighted-average effective interest rate of 10.4 % and 10.3 % as of March 31, 2026 and December 31, 2025, respectively.

The following table summarizes the EIP receivables, including imputed discounts and related allowance for credit losses:

(in millions) September 30,

(in millions) March 31,

2026 December 31,

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EIP receivables, net of allowance for credit losses and imputed discount $ 7,488 $ 7,680

$ 6,915 $ 6,588

Classified on our condensed consolidated balance sheets as:

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EIP receivables, net of allowance for credit losses and imputed discount $ 7,488 $ 7,680

(1) Through the UScellular Acquisition, we acquired EIP receivables with a fair value of $ 891 million as of August 1, 2025.

As they were recorded at fair value, an imputed discount was not recognized on the acquired receivables.

Many of our loss estimation techniques rely on delinquency-based models categorized by customer credit class;

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We manage our EIP receivables portfolio segment using delinquency and customer credit class as key credit quality indicators.

The following table presents the amortized cost of our EIP receivables, including EIP receivables acquired through the UScellular Acquisition, by delinquency status, customer credit class and year of origination as of September 30, 2025:

The following table presents the amortized cost of our EIP receivables by delinquency status, customer credit class and year of origination as of March 31, 2026:

Originated in 2026 Originated in 2025 Originated prior to 2025 Total EIP Receivables, Net of

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EIP receivables, net of unamortized imputed discount $ 1,504 $ 358 $ 3,923 $ 852 $ 1,044 $ 212 $ 6,471 $ 1,422 $ 7,893

Index for Notes to the Condensed Consolidated Financial Statements

We estimate credit losses on our EIP receivables segment by applying an expected credit loss model, which relies on historical loss data adjusted for current conditions to calculate default probabilities or an estimate for the frequency of customer default.

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We multiply these estimated default probabilities by our estimated loss given default, which is the estimated amount of default or the severity of loss.

Index for Notes to the Condensed Consolidated Financial Statements

As we do for our accounts receivable portfolio segment, we consider the need to adjust our estimate of credit losses on EIP receivables for reasonable and supportable forecasts of economic conditions through monitoring external forecasts and periodic internal statistical analyses.

The following table presents write-offs of our EIP receivables by year of origination for the nine months ended September 30, 2025:

The following table presents write-offs of our EIP receivables by year of origination for the three months ended March 31, 2026:

(in millions) Originated in 2026 Originated in 2025 Originated prior to 2025 Total

Write-offs $ 3 $ 166 $ 48 $ 217

Activity for the nine months ended September 30, 2025 and 2024, in the allowance for credit losses and unamortized imputed discount balances for the accounts receivable and EIP receivables segments were as follows:

September 30, 2025 September 30, 2024

Activity for the three months ended March 31, 2026 and 2025, in the allowance for credit losses and unamortized imputed discount balances for the accounts receivable and EIP receivables segments were as follows:

March 31, 2026 March 31, 2025

(in millions) Accounts Receivable Allowance EIP Receivables Allowance Total Accounts Receivable Allowance EIP Receivables Allowance Total

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Write-offs ( 193 ) ( 217 ) ( 410 ) ( 166 ) ( 158 ) ( 324 )

Allowance for credit losses for acquired credit deteriorated receivables 10 78 88 — — —

Change in imputed discount on short-term and long-term EIP receivables N/A 42 42 N/A 36 36

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Off-Balance-Sheet Credit Exposures

We do not have material off-balance-sheet credit exposures as of September 30, 2025.

We do not have material off-balance-sheet credit exposures as of March 31, 2026.

In connection with the sales of certain service accounts receivable and EIP receivables pursuant to the sale arrangements, we provide guarantees of credit performance included on our Condensed Consolidated Balance Sheets measured at fair value that are based on a discounted cash flow model using Level 3 inputs, including estimated customer default rates and credit worthiness, dilutions and recoveries.

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Overview of the Transaction

In 2015, we entered into an arrangement to sell certain EIP receivables on a revolving basis (the “EIP Sale Arrangement”), which has been revised and extended from time to time.

As of both September 30, 2025, and December 31, 2024, the EIP Sale Arrangement provided funding of $ 1.3 billion.

In 2015, we entered into an arrangement to sell certain EIP receivables on a revolving basis (the “EIP Sale Arrangement”), which expires November 2026.

As of both March 31, 2026, and December 31, 2025, the EIP Sale Arrangement provided funding of $ 1.3 billion.

In connection with this EIP Sale Arrangement, we formed a wholly owned subsidiary, which qualifies as a bankruptcy remote entity (the “EIP BRE”).

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The following table summarizes the carrying amounts and classification of liabilities, which consist of the recourse guarantee, included on our Condensed Consolidated Balance Sheets with respect to the EIP BRE:

(in millions) September 30,

(in millions) March 31,

2026 December 31,

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On February 24, 2026, we extended the scheduled expiration date of the Service Receivable Sale Arrangement to February 23, 2027.

As of both September 30, 2025, and December 31, 2024, the Service Receivable Sale Arrangement provided funding of $ 775 million.

As of both March 31, 2026, and December 31, 2025, the Service Receivable Sale Arrangement provided funding of $ 775 million.

In connection with the Service Receivable Sale Arrangement, we formed a wholly owned subsidiary, which qualifies as a bankruptcy remote entity, to sell service accounts receivable (the “Service BRE”).

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The following table summarizes the carrying amounts and classification of liabilities included on our Condensed Consolidated Balance Sheets with respect to the Service BRE:

(in millions) September 30,

(in millions) March 31,

2026 December 31,

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Sales of Receivables

On October 22, 2024, we executed an amendment to the EIP Sale Arrangement and an amendment to the Service Receivable Sale Arrangement (together, the “Pledge Amendments”).

Prior to the effective date of the Pledge Amendments, the credit enhancement feature of each of the EIP Sale Arrangement and the Service Receivable Sale Arrangement was in the form of a deferred purchase price.

Pursuant to the Pledge Amendments, effective on November 1, 2024, the credit enhancement feature of each arrangement is replaced by a recourse guarantee liability, which is collateralized by pledged but unsold receivables.

For the three and nine months ended September 30, 2025, all cash proceeds associated with sold receivables are recognized within Net cash provided by operating activities on our Condensed Consolidated Statements of Cash Flows.

For the three and nine months ended September 30, 2024, cash proceeds related to beneficial interests in securitization transactions in the form of the deferred purchase price were presented within Net cash used in investing activities on our Condensed Consolidated Statements of Cash Flows.

The credit enhancement feature of each of the EIP Sale Arrangement and the Service Receivable Sale Arrangement is in the form of a recourse guarantee liability, which is collateralized by pledged but unsold receivables.

The recourse guarantee represents a financial instrument that is primarily tied to the creditworthiness of our customers.

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The fair value of the recourse guarantee liabilities is determined based on a discounted cash flow model, which primarily uses Level 3 inputs, including estimated customer default rates and credit worthiness, dilutions and recoveries.

Our recourse guarantee liabilities related to the sales of service receivables and EIP receivables were $ 137 million and $ 148 million as of September 30, 2025, and December 31, 2024, respectively.

These liabilities were collateralized by $ 523 million and $ 286 million of gross service receivables and $ 535 million and $ 505 million of gross EIP receivables pledged, but unsold as of September 30, 2025, and December 31, 2024, respectively, which represent our maximum exposure under the recourse guarantee.

Index for Notes to the Condensed Consolidated Financial Statements

Our recourse guarantee liabilities related to the sales of service receivables and EIP receivables were $ 132 million and $ 130 million as of March 31, 2026, and December 31, 2025, respectively.

These liabilities were collateralized by $ 284 million and $ 266 million of gross service receivables and $ 579 million and $ 535 million of gross EIP receivables pledged, but unsold as of March 31, 2026, and December 31, 2025, respectively, which represent our maximum exposure under the recourse guarantee.

The following table summarizes the impact of the sales of certain service receivables and EIP receivables on our Condensed Consolidated Balance Sheets:

(in millions) September 30,

(in millions) March 31,

2026 December 31,

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Net cash proceeds funded by reinvested collections 1,372 1,468

We recognized losses from sales of receivables, including changes in fair value of the recourse guarantee liabilities and deferred purchase price assets, of $ 17 million and $ 23 million for the three months ended September 30, 2025 and 2024, respectively, and $ 58 million and $ 69 million for the nine months ended September 30, 2025 and 2024, respectively, in Selling, general and administrative expenses on our Condensed Consolidated Statements of Comprehensive Income.

We recognized losses from sales of receivables, including changes in fair value of the recourse guarantee liabilities, of $ 20 million and $ 22 million for the three months ended March 31, 2026 and 2025, respectively, in Selling, general and administrative expenses on our Condensed Consolidated Statements of Comprehensive Income.

Index for Notes to the Condensed Consolidated Financial Statements

Continuing Involvement

Pursuant to the EIP Sale Arrangement and Service Receivable Sale Arrangement described above, we have continuing involvement with the service accounts receivables and EIP receivables we sell, as we service the receivables, are required to replace certain receivables, including ineligible receivables, aged receivables and receivables where a write-off is imminent, and may be responsible for absorbing credit losses through performance under our recourse guarantee liabilities.

Pursuant to the EIP Sale Arrangement and Service Receivable Sale Arrangement described above, we have continuing involvement with the EIP receivables and service accounts receivables we sell, as we service the receivables, are required to replace certain receivables, including ineligible receivables, aged receivables and receivables where a write-off is imminent, and may be responsible for absorbing credit losses through performance under our recourse guarantee liabilities.

We continue to service the customers and their related receivables, including facilitating customer payment collection, in exchange for a monthly servicing fee.

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At the direction of the purchasers of the sold receivables, we apply the same policies and procedures while servicing the sold receivables as we apply to our owned receivables, and we continue to maintain normal relationships with our customers.

Note 6 – Property and Equipment

The components of property and equipment, excluding amounts transferred to held for sale, were as follows:

(in millions) Useful Lives September 30,

2025 December 31,

Land $ 100 $ 69

Buildings and equipment Up to 30 years

Wireless communications systems Up to 20 years

68,770 65,778

Leasehold improvements Up to 10 years

Capitalized software Up to 8 years

21,041 18,566

Leased wireless devices Up to 16 months

Construction in progress N/A 3,402 3,377

Accumulated depreciation and amortization ( 61,993 ) ( 56,367 )

Property and equipment, net $ 38,718 $ 38,533

Total depreciation expense relating to property and equipment and financing lease right-of-use assets was $ 3.2 billion and $ 2.9 billion for the three months ended September 30, 2025 and 2024, respectively, and $ 9.1 billion and $ 9.2 billion for the nine months ended September 30, 2025 and 2024, respectively.

We capitalize interest associated with the acquisition or construction of certain property and equipment and spectrum intangible assets.

We recognized capitalized interest of $ 13 million and $ 9 million for the three months ended September 30, 2025 and 2024, respectively, and $ 33 million and $ 26 million for the nine months ended September 30, 2025 and 2024, respectively.

Asset retirement obligations are primarily for certain legal obligations to remediate leased property on which our network infrastructure and administrative assets are located.

Index for Notes to the Condensed Consolidated Financial Statements

Activity in our asset retirement obligations for the nine months ended September 30, 2025, was as follows:

(in millions) Asset Retirement Obligations

Asset retirement obligations, beginning of year $ 1,535

Fair value of liabilities acquired from the UScellular Acquisition 165

Liabilities incurred 18

Liabilities settled ( 40 )

Accretion expense 52

Asset retirement obligations, end of period $ 1,730

Classified on the condensed consolidated balance sheets as:

Other current liabilities $ 117

Other long-term liabilities 1,613

The corresponding assets, net of accumulated depreciation, related to asset retirement obligations were $ 565 million and $ 423 million as of September 30, 2025 and December 31, 2024, respectively.

Billing System Impairment

In connection with our accelerated digital transformation initiatives, including streamlining our billing technology, we evaluated our billing system architecture strategy and concluded components of our billing system replacement plan and associated development will no longer serve our future needs.

As a result, we recorded a non-cash impairment of $ 278 million related to capitalized software development costs during the three and nine months ended September 30, 2025, within Impairment expense on our Condensed Consolidated Statements of Comprehensive Income.

Note 7 – Goodwill, Spectrum License Transactions and Other Intangible Assets

The changes in the carrying amount of goodwill for the nine months ended September 30, 2025, are as follows:

(in millions) Goodwill

Balance as of December 31, 2024, net of accumulated impairment losses of $ 10,984

Adjustment to goodwill from the Ka’ena Acquisition 6

Provisionally assigned goodwill from acquisitions in 2025 679

Balance as of September 30, 2025, net of accumulated impairment losses of $ 10,984

Note 5 – Spectrum License Transactions

Spectrum Licenses

The following table summarizes our spectrum license activity for the nine months ended September 30, 2025:

The following table summarizes our spectrum license activity for the three months ended March 31, 2026:

(in millions) Spectrum

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Spectrum license acquisitions 39

Spectrum licenses acquired from the UScellular Acquisition 1,730

Spectrum licenses transferred to held for sale ( 507 )

Costs to clear spectrum 1

Spectrum licenses, end of period $ 97,564

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Cash proceeds from the sale of spectrum licenses are included in Proceeds from the sale of property, equipment and intangible assets on our Condensed Consolidated Statements of Cash Flows.

Index for Notes to the Condensed Consolidated Financial Statements

License Purchase Agreements

Channel 51 License Co LLC and LB License Co, LLC

On August 8, 2022, we, Channel 51 License Co LLC and LB License Co, LLC (together with Channel 51 License Co LLC, the “Sellers”) entered into License Purchase Agreements pursuant to which we will acquire spectrum in the 600 MHz band from the Sellers in exchange for total cash consideration of $ 3.5 billion.

On March 30, 2023, we and the Sellers entered into Amended and Restated License Purchase Agreements pursuant to which we and the Sellers agreed to separate the transaction into two tranches of licenses, with the closings on the acquisitions of certain licenses in Chicago, Dallas and New Orleans being deferred in order to potentially expedite the regulatory approval process for the remainder of the licenses.

Subsequently, on August 25, 2023, we and the Sellers entered into Amendments No.

1 to the Amended and Restated License Purchase Agreements, which deferred the closings of certain additional licenses in Chicago and Dallas into the second closing tranche.

Together, the licenses with closings deferred into the second closing tranche represent $ 1.1 billion of the aggregate $ 3.5 billion cash consideration.

The licenses being acquired by us, and the total consideration being paid for the licenses, remain the same under the original License Purchase Agreements and subsequent amendments.

The Federal Communications Commission (the “FCC”) approved the purchase of the first tranche on December 29, 2023.

The first tranche closed on June 24, 2024, and the associated payment of $ 2.4 billion was made on August 5, 2024.

The FCC approved the purchase of the Dallas licenses included in the second tranche on October 22, 2024.

The purchase of the Dallas licenses closed on December 6, 2024, and the associated payment of $ 541 million was made on the same day.

The FCC approved the remaining Chicago and New Orleans deferred licenses from the second tranche on April 15, 2025.

The purchase of the remaining licenses closed on June 2, 2025, and the associated payment of $ 604 million was made on the same day.

Comcast Corporation

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As a result of additional spectrum acquisitions we are planning with third parties, we have agreed with Comcast to accelerate the consummation of our acquisition of approximately $ 45 million of the Comcast Licenses.

We anticipate our acquisition of this accelerated portion of the Comcast Licenses to close in the first half 2026, with the remaining spectrum license acquisitions expected to close in the first half of 2028.

The parties are currently targeting a closing on the acquisition of this accelerated portion of the Comcast Licenses in 2026, with the remaining spectrum license acquisitions targeting a closing in the first half of 2028.

Index for Notes to the Condensed Consolidated Financial Statements

N77 License Co LLC

On September 10, 2024, we entered into a License Purchase Agreement with N77 License Co LLC (“Buyer”), pursuant to which Buyer had the option to purchase all or a portion of our remaining 3.45 GHz spectrum licenses in exchange for a range of cash consideration, with the specific licenses sold to be determined based upon the amount of committed financing raised by Buyer.

Following receipt of the required regulatory approvals, on April 30, 2025, we completed the sale of a portion of our 3.45 GHz spectrum licenses for $ 2.0 billion.

During the nine months ended September 30, 2025, we recognized an associated gain of $ 151 million as a reduction to Selling, general and administrative expenses on our Condensed Consolidated Statements of Comprehensive Income.

Grain Management, LLC

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In addition, we may receive a share of certain future proceeds from transactions entered into by Grain that monetize the 800 MHz spectrum licenses, subject to certain terms and conditions and following a certain return on invested capital for Grain.

As of September 30, 2025, $ 3.6 billion of the associated 800 MHz spectrum licenses have been classified as held for sale at cost, with $ 2.9 billion and $ 690 million presented in Other current assets and Other assets, respectively, on our Condensed Consolidated Balance Sheets based on the nature of consideration to be received.

The transaction is subject to customary closing conditions and contingent on the receipt of regulatory approvals, including the FCC’s approval regarding certain modifications to the 800 MHz spectrum licenses, and is currently expected to close in the fourth quarter of 2025 or first quarter of 2026.

As of March 31, 2026, $ 3.6 billion of the associated 800 MHz spectrum licenses have been classified as held for sale at cost, with $ 2.9 billion and $ 690 million presented in Other current assets and Other assets, respectively, on our Condensed Consolidated Balance Sheets based on the nature of consideration to be received.

The transaction is subject to customary closing conditions and contingent on the receipt of regulatory approvals, including the FCC’s approval regarding certain modifications to the 800 MHz spectrum licenses, and the parties are currently targeting a closing in 2026.

We do not expect the transaction to have a material impact on our Condensed Consolidated Statements of Comprehensive Income upon the transaction close.

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Spectrum Exchange Transactions

During the nine months ended September 30, 2025, we recognized $ 173 million, and during the three and nine months ended September 30, 2024, we recognized $ 26 million and $ 165 million, respectively, of non-cash spectrum license acquisitions associated with the closing of certain spectrum exchange transactions.

There were no non-cash spectrum license acquisitions during the three months ended September 30, 2025.

During the nine months ended September 30, 2025, we recognized $ 13 million, and during the three and nine months ended September 30, 2024, we recognized $ 10 million and $ 57 million, respectively, of gains associated with the closing of certain spectrum exchange transactions as a reduction to Selling, general and administrative expenses on our Condensed Consolidated Statements of Comprehensive Income.

There were no gains or losses associated with spectrum exchange transactions during the three months ended September 30, 2025.

As of September 30, 2025, $ 243 million of spectrum licenses were classified as held for sale within Other assets on our Condensed Consolidated Balance Sheets related to additional spectrum exchange agreements pending regulatory approval and closing, which are expected to close in the next 12 months.

During the three months ended March 31, 2026 and 2025, we recognized $ 5 million and $ 172 million, respectively, of non-cash spectrum license acquisitions associated with the closing of certain exchange transactions, which were included in Spectrum Licenses on our Condensed Consolidated Balance Sheets.

During the three months ended March 31, 2026 and 2025, we recognized $ 2 million and $ 12 million, respectively, of gains associated with the closing of certain spectrum exchange transactions as a reduction to Selling, general and administrative expenses on our Condensed Consolidated Statements of Comprehensive Income.

As of March 31, 2026 and December 31, 2025, $ 507 million and $ 3 million of spectrum licenses were classified as held for sale within Other assets on our Condensed Consolidated Balance Sheets related to additional spectrum exchange agreements pending regulatory approval and closing, which are expected to close in the next 12 months.

The closings of these transactions are not expected to have a significant impact on our Condensed Consolidated Statements of Comprehensive Income.

Other Intangible Assets

The components of Other intangible assets were as follows:

Useful Lives September 30, 2025 December 31, 2024

(in millions) Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount

Customer relationships (1)

Up to 10 years

$ 7,597 $ ( 4,650 ) $ 2,947 $ 5,427 $ ( 4,123 ) $ 1,304

Reacquired rights Up to 9 years

770 ( 393 ) 377 770 ( 323 ) 447

Tradenames and patents (1)

Up to 19 years

418 ( 179 ) 239 338 ( 157 ) 181

Favorable spectrum leases Up to 27 years

567 ( 177 ) 390 620 ( 169 ) 451

Up to 10 years

557 ( 393 ) 164 478 ( 349 ) 129

Other intangible assets $ 9,909 $ ( 5,792 ) $ 4,117 $ 7,633 $ ( 5,121 ) $ 2,512

(1) Includes intangible assets acquired through our acquisitions.

See Note 2 - Business Combinations and Note 3 - Joint Ventures for more information.

Index for Notes to the Condensed Consolidated Financial Statements

Amortization expense for intangible assets subject to amortization was $ 260 million and $ 221 million for the three months ended September 30, 2025 and 2024, respectively, and $ 688 million and $ 637 million for the nine months ended September 30, 2025 and 2024, respectively.

The estimated aggregate future amortization expense for intangible assets subject to amortization is summarized below:

(in millions) Estimated Future Amortization

Twelve Months Ending September 30,

Thereafter 862

Total $ 4,117

Note 6 – Fair Value Measurements

The carrying values of Cash and cash equivalents, Accounts receivable and Accounts payable and accrued liabilities approximate fair value due to the short-term maturities of these instruments.

The carrying values of EIP receivables approximate fair value as the receivables are recorded at their present value using an imputed interest rate.

The carrying values of EIP receivables approximate fair value as the receivables are generally recorded at their present value using an imputed interest rate.

Derivative Financial Instruments

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Significant inputs to derivative valuations are generally observable in active markets and, as such, are classified as Level 2 in the fair value hierarchy.

Index for Notes to the Condensed Consolidated Financial Statements

Cross-Currency Swaps

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Accordingly, all changes in the fair value of the swaps will be initially recorded through Accumulated other comprehensive loss on our Condensed Consolidated Balance Sheets and reclassified to earnings in an amount that exactly offsets the periodic transaction gain or loss on remeasuring the debt, such that there will be no earnings volatility due to changes in foreign-currency exchange rates.

Transaction gains or losses on remeasuring the EUR-denominated debt, as well as the offsetting swap

Index for Notes to the Condensed Consolidated Financial Statements

amounts, are recorded within Other (expense) income, net on our Condensed Consolidated Statements of Comprehensive Income.

Transaction gains or losses on remeasuring the EUR-denominated debt, as well as the offsetting swap amounts, are recorded within Other expense, net on our Condensed Consolidated Statements of Comprehensive Income.

Changes in the fair value of the swaps may be different from the current period transaction gain or loss on remeasurement of the debt, in which case the difference will remain in Accumulated other comprehensive loss on our Condensed Consolidated Balance Sheets.

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The following table summarizes the activity of our cross-currency swaps:

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(in millions) 2026 2025

Other (expense) income, net

Other expense, net

Pre-tax transaction gain (loss) on remeasurement of EUR-denominated debt $ 183 $ ( 218 )

Amount recognized in Other (expense) income, net reclassified from Accumulated other comprehensive loss

( 25 ) 84 654 77

Amount recognized in Other expense, net reclassified from Accumulated other comprehensive loss

Accumulated other comprehensive loss

Amount recognized in Accumulated other comprehensive loss reclassified to Other (expense) income, net

Amount recognized in Accumulated other comprehensive loss reclassified to Other expense, net

$ 183 $ ( 218 )

(Loss) gain associated with the change in fair value of cross-currency swaps recognized in Accumulated other comprehensive loss

Losses associated with the change in fair value of cross-currency swaps recognized in Accumulated other comprehensive loss

( 231 ) ( 20 )

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In April 2020, we terminated our interest rate lock derivatives entered into in October 2018.

Aggregate changes in the fair value of our terminated interest rate lock derivatives, net of amortization, of $ 820 million and $ 960 million are presented in Accumulated other comprehensive loss on our Condensed Consolidated Balance Sheets as of September 30, 2025, and December 31, 2024, respectively.

During the three months ended September 30, 2025 and 2024, we amortized $ 64 million and $ 59 million, respectively, and during the nine months ended September 30, 2025 and 2024, we amortized $ 189 million and $ 175 million, respectively, from Accumulated other comprehensive loss into Interest expense, net, on our Condensed Consolidated Statements of Comprehensive Income.

We expect to amortize $ 269 million of the Accumulated other comprehensive loss associated with the derivatives into Interest expense, net, over the 12 months ending September 30, 2026.

Aggregate changes in the fair value of our terminated interest rate lock derivatives, net of amortization, of $ 721 million and $ 771 million are presented in Accumulated other comprehensive loss on our Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025, respectively.

During the three months ended March 31, 2026 and 2025, we amortized $ 67 million and $ 62 million, respectively, from Accumulated other comprehensive loss into Interest expense, net, on our Condensed Consolidated Statements of Comprehensive Income.

We expect to amortize $ 279 million of the Accumulated other comprehensive loss associated with the derivatives into Interest expense, net, over the 12 months ending March 31, 2027.

Index for Notes to the Condensed Consolidated Financial Statements

The fair values of our Senior Notes and spectrum-backed Senior Secured Notes to third parties were determined based on quoted market prices in active markets.

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Accordingly, our Senior Notes to third parties (EUR-denominated) and ABS Notes were classified as Level 2 within the fair value hierarchy.

The fair value of our ECA Facility due March 2036 (as defined below) was determined based on a discounted cash flow approach using market interest rates of instruments with similar maturities and credit risk.

Accordingly, our ECA Facility due March 2036 was classified as Level 2 within the fair value hierarchy.

Although we have determined the estimated fair values using available market information and commonly accepted valuation methodologies, judgment was required in interpreting market data to develop fair value estimates for the Senior Notes to third parties (EUR-denominated), Senior Notes to affiliates, ABS Notes and ECA Facility due March 2036.

The fair value estimates were based on information available as of September 30, 2025, and December 31, 2024.

The fair value of our borrowings related to credit agreements with certain financial institutions, backed by Export Credit Agencies (the “ECA Facilities”) and the MRFA (as defined below) were determined based on a discounted cash flow approach using market interest rates of instruments with similar maturities and credit risk.

Accordingly, our borrowings related to the ECA Facilities and MRFA were classified as Level 2 within the fair value hierarchy.

The fair value estimates were based on information available as of March 31, 2026 and December 31, 2025.

As such, our estimates are not necessarily indicative of the amount we could realize in a current market exchange.

Index for Notes to the Condensed Consolidated Financial Statements

The carrying amounts and fair values of our short-term and long-term debt, excluding accrued interest, included on our Condensed Consolidated Balance Sheets were as follows:

(in millions) Level within the Fair Value Hierarchy September 30, 2025 December 31, 2024

(in millions) Level within the Fair Value Hierarchy March 31, 2026 December 31, 2025

Carrying Amount Fair Value Carrying Amount Fair Value

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ABS Notes to third parties 2 1,994 2,003 1,995 2,017

ECA Facility to third parties 2 885 918 — —

Borrowings related to ECA Facilities and MRFA 2 2,774 2,828 1,819 1,876

Note 7 – Debt

The following table sets forth the debt balances and activity as of, and for the nine months ended, September 30, 2025:

The following table sets forth the debt balances and activity as of, and for the three months ended, March 31, 2026:

(in millions) December 31,

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Repayments Reclassifications (1)

September 30,

Short-term debt $ 5,135 $ — $ ( 3,300 ) $ ( 135 ) $ 538 $ — $ 2,238

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(1) Issuances and borrowings, note redemptions and reclassifications are recorded net of accrued or paid issuance costs and discounts.

(2) Other includes the amortization of premiums, discounts, debt issuance costs and consent fees, the impact from changes in foreign currency exchange rates and $ 1.7 billion of notes issued in settlement of the Exchange Offers.

See Note 2 – Business Combinations for further information regarding the Exchange Offers.

Our effective interest rate, excluding the impact of derivatives and capitalized interest, was 4.2 % and 4.0 % on weighted-average debt outstanding of $ 83.2 billion and $ 78.1 billion for the three months ended September 30, 2025 and 2024, respectively, and 4.1 % on weighted-average debt outstanding of $ 82.1 billion and $ 78.1 billion for the nine months ended September 30, 2025 and 2024, respectively.

(2) Other includes the amortization of premiums, discounts, debt issuance costs and consent fees, and the impact from changes in foreign currency exchange rates.

Our effective interest rate, excluding the impact of derivatives and capitalized interest, was 4.2 % and 4.0 % on weighted-average debt outstanding of $ 86.7 billion and $ 80.8 billion for the three months ended March 31, 2026 and 2025, respectively.

The weighted-average debt outstanding was calculated by applying an average of the monthly ending balances of total short-term and long-term debt to third parties and short-term and long-term debt to affiliates, net of unamortized premiums, discounts, debt issuance costs and consent fees.

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Issuances and Borrowings

During the nine months ended September 30, 2025, we issued and borrowed the following debt:

(in millions) Principal Issuances Discounts/Premiums and Issuance Costs, Net

Net Proceeds from Issuance of Long-Term Debt Issue Date

During the three months ended March 31, 2026, we issued and borrowed the following debt:

(in millions) Principal Issuances Discounts and Issuance Costs Net Proceeds from Issuance of Debt Issue Date

5.000 % Senior Notes due 2036

$ 1,150 $ ( 8 ) $ 1,142 January 12, 2026

5.850 % Senior Notes due 2056

850 ( 8 ) 842 January 12, 2026

3.200 % Senior Notes due 2032 (EUR-denominated)

4 unchanged sentences

1,175 ( 12 ) 1,163 February 19, 2026

5.125 % Senior Notes due 2032

1,250 ( 7 ) 1,243 March 27, 2025

5.300 % Senior Notes due 2035

1,000 ( 7 ) 993 March 27, 2025

5.875 % Senior Notes due 2055

1,250 ( 15 ) 1,235 March 27, 2025

6.700 % Senior Notes due 2033 (1)

489 56 — August 5, 2025

6.250 % Senior Notes due 2069 (1)

393 3 — August 5, 2025

5.500 % Senior Notes due March 2070 (1)

401 ( 42 ) — August 5, 2025

5.500 % Senior Notes due June 2070 (1)

395 ( 42 ) — August 5, 2025

Total of Senior Notes issued 4,937 ( 38 ) 4,899

4.250 % Class A Senior ABS Notes due 2030

500 ( 2 ) 498 February 27, 2025

4.340 % Class A Senior ABS Notes due 2030

500 ( 2 ) 498 August 6, 2025

Total of ABS Notes issued 1,000 ( 4 ) 996

4.927 % ECA Facility due March 2036

500 ( 2 ) 498 March 20, 2026

Total of credit facility borrowed 1,000 ( 30 ) 970

Total of ABS Notes issued 500 ( 2 ) 498

4.557 % MRFA due 2027

1,000 ( 4 ) 996 February 5, 2026

Total borrowings 1,000 ( 4 ) 996

Total issuances and borrowings $ 6,437 $ ( 44 ) $ 6,393

(1) In connection with the closing of the UScellular Acquisition, we became obligated to execute the Exchange Offers of certain senior notes of UScellular pursuant to which T-Mobile notes with an aggregate outstanding principal balance of $ 1.7 billion were issued with the same interest rate, interest payment dates, maturity dates and redemption terms as each corresponding series of senior notes of UScellular.

See Note 2 – Business Combinations for further information regarding the UScellular Acquisition.

Subsequent to September 30, 2025, on October 9, 2025, we issued $ 800 million of 4.625 % Senior Notes due 2033, $ 1.0 billion of 4.950 % Senior Notes due 2035 and $ 1.0 billion of 5.700 % Senior Notes due 2056.

Credit Facilities

On January 5, 2026, we entered into a Second Amended and Restated Credit Agreement (the “January 2026 Credit Agreement”) with certain financial institutions named therein.

The January 2026 Credit Agreement amends and restates in its entirety the Amended and Restated Credit Agreement, dated as of October 17, 2022, and provides for a $ 10.0 billion revolving credit facility, including a letter of credit sub-facility of up to $ 1.5 billion and a swingline loan sub-facility of up to $ 500 million.

Commitments under the January 2026 Credit Agreement will mature on January 5, 2031, except as otherwise extended or replaced.

Borrowings under the January 2026 Credit Agreement will bear interest based upon the applicable benchmark rate, depending on the type of loan and, in some cases, at our election, plus a margin that is determined by reference to the credit rating of T-Mobile USA’s senior unsecured long-term debt.

The January 2026 Credit Agreement contains customary representations, warranties and covenants, including a financial maintenance covenant of 4.5x with respect to T-Mobile USA, Inc.’s Leverage Ratio (as defined therein).

As of March 31, 2026, we did not have an outstanding balance under this facility.

Note Redemptions and Repayments

During the nine months ended September 30, 2025, we made the following redemptions and repayments:

During the three months ended March 31, 2026, we made the following redemptions and repayments:

(in millions) Principal Amount Write-off of Issuance Cost and Consent Fees (1)

1 unchanged sentence

4.750 % Senior Notes due 2028

$ 3,000 $ — April 15, 2025 N/A

$ 1,500 $ 3 February 1, 2026 100 %

4.750 % Senior Notes to affiliates due 2028

1,500 2 February 1, 2026 100 %

1.500 % Senior Notes due 2026

500 1 September 1, 2025 100 %

1,000 — February 15, 2026 N/A

2.250 % Senior Notes due 2026

1,800 — February 15, 2026 N/A

5.050 % Class A Senior ABS Notes due 2029

500 — March 20, 2026 100 %

Total Redemptions $ 6,300 $ 5

4.738 % Secured Series 2018-1 A-1 Notes due 2025

$ 131 $ — January 13, 2025 N/A

ECA Facility due March 2036 $ 43 $ — Various N/A

1 unchanged sentence

92 — Various N/A

4.910 % Class A Senior ABS Notes due 2025

570 — Various N/A

Total Repayments $ 135 $ —

(1) Write-off of issuance costs and consent fees are included in Other (expense) income, net on our Condensed Consolidated Statements of Comprehensive Income.

(1) Write-off of issuance costs and consent fees are included in Other expense, net on our Condensed Consolidated Statements of Comprehensive Income.

Write-off of issuance costs and consent fees are included in Other, net within Net cash provided by operating activities on our Condensed Consolidated Statements of Cash Flows.

Subsequent to September 30, 2025, on October 2, 2025, we delivered notice of redemption on $ 1.5 billion aggregate principal amount of our 7.625 % Senior Notes due 2026.

We will redeem the notes at par on November 1, 2025.

Index for Notes to the Condensed Consolidated Financial Statements

Asset-backed Notes

On February 27, 2025, we issued $ 500 million of 4.740 % Class A Senior ABS Notes, and on August 6, 2025, we issued $ 500 million of 4.340 % Class A Senior ABS Notes, each to third parties in a private placement transaction.

Net proceeds from these ABS Notes are presented in Proceeds from issuance of long-term debt, net on our Condensed Consolidated Statements of Cash Flows for the three and nine months ended September 30, 2025.

As of September 30, 2025, $ 2.0 billion of our ABS Notes were secured in total by $ 2.6 billion of gross EIP receivables and future collections on such receivables.

On March 20, 2026, we issued $ 500 million of 4.250 % Class A Senior ABS Notes to third parties in a private placement transaction.

Net Proceeds of $ 498 million from these ABS Notes are presented in Proceeds from issuance of long-term debt, net on our Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2026.

As of March 31, 2026, $ 2.0 billion of our ABS Notes were secured in total by $ 2.6 billion of gross EIP receivables and future collections on such receivables.

Our ABS Notes and the assets securing this debt are included on our Condensed Consolidated Balance Sheets.

The expected maturities of our ABS Notes as of September 30, 2025, were as follows:

The expected maturities of our ABS Notes as of March 31, 2026, were as follows:

(in millions) Expected Maturities

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The following table summarizes the carrying amounts and classification of assets and liabilities included on our Condensed Consolidated Balance Sheets with respect to the ABS Entities:

(in millions) September 30,

(in millions) March 31,

2026 December 31,

6 unchanged sentences

See Note 3 – Receivables and Related Allowance for Credit Losses for additional information on the EIP receivables used to secure the ABS Notes.

Master Receivables Financing Agreement

On February 5, 2026, we entered into a master receivables financing agreement with certain third parties that provides for a revolving loan facility secured by pledged service customer relationships, which include current as well as future monthly service receivables, during the borrowing period (the “MRFA”).

Concurrently with the execution of the MRFA, we borrowed $ 1.0 billion with a floating interest rate indexed to the Secured Overnight Financing Rate (“SOFR”) plus an applicable margin, with an initial scheduled expiry date of February 5, 2027, and principal paydowns beginning thereafter.

The net proceeds are presented in Proceeds from issuance of long-term debt on our Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2026.

As of March 31, 2026, $ 1.0 billion of borrowings are secured by approximately $ 195 million of outstanding service accounts receivable, the related customer service account contracts and future monthly service receivables.

The borrowings related to the MRFA and assets securing these borrowings are included on our Condensed Consolidated Balance Sheets.

Index for Notes to the Condensed Consolidated Financial Statements

Restricted Cash

2 unchanged sentences

See Note 1 5 – Additional Financial Information for our reconciliation of Cash and cash equivalents, including restricted cash.

ECA Facilities

On January 31, 2025, our wholly owned subsidiary, T-Mobile USA, Inc., entered into a credit agreement with certain financial institutions, backed by an Export Credit Agency (an “ECA Facility”), providing for a loan of up to $ 1.0 billion to finance network equipment-related purchases (the “ECA Facility due March 2036”).

The obligations under this ECA Facility are also guaranteed by us and by all of our wholly owned domestic restricted subsidiaries (subject to customary exceptions).

On March 17, 2025, we drew down the full $ 1.0 billion available under the ECA Facility due March 2036 and recognized the net proceeds within Proceeds from issuance of long-term debt, net on our Condensed Consolidated Statements of Cash Flows.

Index for Notes to the Condensed Consolidated Financial Statements

under this ECA Facility are amortized semi-annually in equal installments up to the maturity date of March 15, 2036.

Interest is based on the Secured Overnight Financing Rate for the interest period plus an applicable margin.

On August 29, 2025, our wholly owned subsidiary, T-Mobile USA, Inc., entered into an ECA Facility, providing for a loan of up to $ 1.0 billion to finance network equipment-related purchases (the “ECA Facility due November 2036”).

The obligations under this ECA Facility are also guaranteed by us and by all of our wholly owned domestic restricted subsidiaries (subject to customary exceptions).

Any amounts drawn under this ECA Facility through the availability period, which terminates December 31, 2025, will mature on November 30, 2036.

As of September 30, 2025, the ECA Facility due November 2036 is undrawn.

Note 8 – Tower Obligations

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The tower obligations are increased by the interest expense and amortized through contractual leaseback payments made by us to CCI.

The tower assets are reported in Property and

The tower assets are reported in Property and equipment, net on our Condensed Consolidated Balance Sheets and are depreciated to their estimated residual values over the expected useful life of the towers, which is 20 years.

Index for Notes to the Condensed Consolidated Financial Statements

equipment, net on our Condensed Consolidated Balance Sheets and are depreciated to their estimated residual values over the expected useful life of the towers, which is 20 years.

Leaseback Arrangement

6 unchanged sentences

The following table summarizes the balances associated with both of the tower arrangements on our Condensed Consolidated Balance Sheets:

(in millions) September 30,

(in millions) March 31,

2026 December 31,

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Other long-term liabilities 554 554

Future minimum payments related to the tower obligations are approximately $ 387 million for the 12-month period ending September 30, 2026, $ 804 million in total for both of the 12-month periods ending September 30, 2027 and 2028, $ 855 million in total for both of the 12-month periods ending September 30, 2029 and 2030, and $ 3.4 billion in total thereafter.

Future minimum payments related to the tower obligations are approximately $ 391 million for the 12-month period ending March 31, 2027, $ 816 million in total for both of the 12-month periods ending March 31, 2028 and 2029, $ 869 million in total for both of the 12-month periods ending March 31, 2030 and 2031, and $ 3.1 billion in total thereafter.

We are contingently liable for future ground lease payments through the remaining term of the CCI Lease Sites and the Master Lease Sites.

These contingent obligations are not included in Operating lease liabilities, as any amount due is contractually owed by CCI based on the subleasing arrangement.

Under the arrangement, we remain primarily liable for ground lease payments on approximately 900 sites and have included lease liabilities of $ 244 million in our Operating lease liabilities as of September 30, 2025.

Under the arrangement, we remain primarily liable for ground lease payments on approximately 900 sites and have included lease liabilities of $ 239 million in our Operating lease liabilities as of March 31, 2026.

Note 9 – Revenue from Contracts with Customers

Disaggregation of Revenue

We provide wireless communications services to three primary categories of customers:

• Postpaid customers generally include customers who are qualified to pay after receiving wireless communications services utilizing phones, 5G broadband, fiber, mobile internet devices (including tablets and hotspots), wearables, DIGITS and other connected devices (including SyncUP and IoT);

• Prepaid customers generally include customers who pay for wireless communications services in advance;

• Wholesale customers 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:

Three Months Ended September 30, Nine Months Ended September 30,

(in millions) 2025 2024 2025 2024

Postpaid service revenues

Postpaid phone revenues $ 12,645 $ 11,600 $ 36,497 $ 34,055

Postpaid other revenues 2,237 1,708 6,057 4,783

Total postpaid service revenues $ 14,882 $ 13,308 $ 42,554 $ 38,838

We provide wireless communications and broadband services to a variety of customers, but focus primarily on two categories:

• Postpaid generally includes customers that 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);

• Prepaid generally includes customers that 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.

The balances presented in each revenue line item on our Condensed 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

Index for Notes to the Condensed Consolidated Financial Statements

Revenue generated from the lease of mobile communication devices is included in Equipment revenues on our Condensed Consolidated Statements of Comprehensive Income.

Postpaid and prepaid service revenues also include revenues earned for providing premium services to customers, such as device insurance services.

Contract Balances

The contract asset and contract liability balances from contracts with customers as of September 30, 2025, and December 31, 2024, were as follows:

The contract asset and contract liability balances from contracts with customers as of March 31, 2026 and December 31, 2025, were as follows:

(in millions) Contract

1 unchanged sentence

Balance as of December 31, 2025 $ 1,307 $ 1,653

Balance as of September 30, 2025 1,030 1,622

Balance as of March 31, 2026 1,368 1,568

Change $ 61 $ ( 85 )

Index for Notes to the Condensed Consolidated Financial Statements

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 $ 752 million and $ 492 million as of September 30, 2025, and December 31, 2024, respectively, was included in Other current assets on our Condensed Consolidated Balance Sheets.

The current portion of our contract assets of $ 1.0 billion and $ 920 million as of March 31, 2026 and December 31, 2025, respectively, was included in Other current assets on our Condensed Consolidated Balance Sheets.

Contract liabilities are recorded when fees are collected, or we have an unconditional right to consideration (a receivable) in advance of delivery of goods or services.

Changes in contract liabilities are primarily related to the activity of prepaid customers, including customers acquired through the Ka’ena Acquisition, as well as contract liabilities assumed in the UScellular Acquisition.

Changes in contract liabilities are primarily related to the activity of prepaid customers and contract liabilities assumed in the UScellular Acquisition.

Contract liabilities are primarily included in Deferred revenue on our Condensed Consolidated Balance Sheets.

Revenues for the three and nine months ended September 30, 2025 and 2024, include the following:

Three Months Ended September 30, Nine Months Ended September 30,

Revenues for the three months ended March 31, 2026 and 2025, include the following:

Three Months Ended March 31,

(in millions) 2026 2025

1 unchanged sentence

Remaining Performance Obligations

As of September 30, 2025, the aggregate amount of the transaction price allocated to remaining service performance obligations for postpaid contracts with subsidized devices and promotional bill credits that result in an extended service contract is $ 2.2 billion.

As of March 31, 2026, the aggregate amount of the transaction price allocated to remaining service performance obligations for postpaid contracts with subsidized devices and promotional bill credits that result in an extended service contract is $ 2.8 billion.

We expect to recognize revenue as the service is provided on these postpaid contracts, generally over a period of 24 months from the time of origination.

2 unchanged sentences

This variable consideration has been excluded from the disclosure of remaining performance obligations.

As of September 30, 2025, the aggregate amount of the contractual minimum consideration for wholesale, roaming and service contracts is $ 158 million, $ 1.1 billion and $ 2.8 billion for the remainder of 2025, 2026 and 2027 and beyond, respectively.

As of March 31, 2026, the aggregate amount of the contractual minimum consideration for wholesale, roaming and service contracts is $ 986 million, $ 968 million and $ 2.2 billion for the remainder of 2026, 2027, and 2028 and beyond, respectively.

These contracts have a remaining duration ranging from less than one year to six years .

Contract Costs

The balance of deferred incremental costs to obtain contracts with customers was $ 2.0 billion for both September 30, 2025, and December 31, 2024, and is included in Other assets on our Condensed Consolidated Balance Sheets.

The balance of deferred incremental costs to obtain contracts with customers was $ 2.0 billion for both March 31, 2026 and December 31, 2025, and is included in Other assets on our Condensed Consolidated Balance Sheets.

Deferred contract costs incurred to obtain postpaid service contracts are amortized over a period of 24 months.

The amortization period is monitored to reflect any significant change in assumptions.

Amortization of deferred contract costs included in Selling, general and administrative expenses on our Condensed Consolidated Statements of Comprehensive Income were $ 474 million and $ 490 million for the three months ended September 30, 2025 and 2024, respectively, and $ 1.4 billion and $ 1.5 billion for the nine months ended September 30, 2025 and 2024, respectively.

Index for Notes to the Condensed Consolidated Financial Statements

Amortization of deferred contract costs included in Selling, general and administrative expenses on our Condensed Consolidated Statements of Comprehensive Income were $ 473 million and $ 485 million for the three months ended March 31, 2026 and 2025, respectively.

The deferred contract cost asset is assessed for impairment on a periodic basis.

There were no impairment losses recognized on deferred contract cost assets for the three and nine months ended September 30, 2025 and 2024.

There were no impairment losses recognized on deferred contract cost assets for the three months ended March 31, 2026 and 2025.

Note 10 – Segment Reporting

We manage our business activities on a consolidated basis and operate as a single operating segment:

We primarily derive our revenue in the United States by providing wireless communications services to customers using our wireless networks and selling devices that provide customers access to our wireless networks.

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 Part II, Item 8, Note 1 – Summary of Significant Accounting Policies of our Annual Report on Form 10-K for the year ended December 31, 2025.

Our chief operating decision maker (“CODM”) is our President and Chief Executive Officer, G.

Michael Sievert.

The CODM uses Net income, as reported on our Condensed 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.

Our chief operating decision maker (“CODM”) is our President and Chief Executive Officer.

Index for Notes to the Condensed Consolidated Financial Statements

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:

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(in millions) 2026 2025

7 unchanged sentences

Other segment items (1)

4,095 3,806 11,759 11,579

Impairment expense 278 — 278 —

Depreciation and amortization 3,817 3,198

Interest expense, net 1,031 916

Other expense (income), net 78 ( 7 ) 135 ( 19 )

Other expense, net 132 46

Income tax expense 830 885

6 unchanged sentences

The amount available under the 2026 Stockholder Return Program for share repurchases will be reduced by the amount of any cash dividends declared and paid by us.

On November 21, 2024, our Board of Directors declared a cash dividend of $ 0.88 per share on our issued and outstanding common stock, which was paid on March 13, 2025, to stockholders of record as of the close of business on February 28, 2025.

On February 6, 2025, our Board of Directors declared a cash dividend of $ 0.88 per share on our issued and outstanding common stock, which was paid on June 12, 2025, to stockholders of record as of the close of business on May 30, 2025.

On June 5, 2025, our Board of Directors declared a cash dividend of $ 0.88 per share on our issued and outstanding common stock, which was paid on September 11, 2025, to stockholders of record as of the close of business on August 29, 2025.

On December 4, 2025, our Board of Directors declared a cash dividend of $ 1.02 per share on our issued and outstanding common stock, which was paid on March 12, 2026, to stockholders of record as of the close of business on February 27, 2026.

On March 19, 2026, our Board of Directors declared a cash dividend of $ 1.02 per share on our issued and outstanding common stock, which will be paid on June 11, 2026, to stockholders of record as of the close of business on May 29, 2026.

During the three months ended March 31, 2026, we paid an aggregate of $ 1.1 billion in cash dividends to our stockholders, which was presented within Net cash (used in) provided by financing activities on our Condensed Consolidated Statements of Cash Flows, of which $ 594 million was paid to Deutsche Telekom AG (“DT”).

As of March 31, 2026, $ 1.1 billion for dividends payable is presented within Other current liabilities on our Condensed Consolidated Balance Sheets, of which $ 594 million is payable to DT.

During the three months ended March 31, 2026, we repurchased 23,329,925 shares of our common stock at an average price per share of $ 210.07 for a total purchase price of $ 4.9 billion, under the 2026 Stockholder Return Program.

All shares repurchased during the three months ended March 31, 2026, were purchased at market price.

As of March 31, 2026, we had up to $ 8.6 billion remaining under the 2026 Stockholder Return Program for repurchases of shares and quarterly dividends through December 31, 2026.

Subsequent to March 31, 2026, on April 23, 2026, we announced that our Board of Directors increased the 2026 Stockholder Return Program authorization to up to $ 18.2 billion.

Subsequent to March 31, 2026, from April 1, 2026, through April 24, 2026, we repurchased 3,791,020 shares of our common stock at an average price per share of $ 195.87 for a total purchase price of $ 743 million.

As of April 24, 2026, we had up to $ 11.5 billion remaining under the 2026 Stockholder Return Program for repurchases of shares and quarterly dividends through December 31, 2026.

Index for Notes to the Condensed Consolidated Financial Statements

On September 18, 2025, our Board of Directors declared a cash dividend of $ 1.02 per share on our issued and outstanding common stock, which will be paid on December 11, 2025, to stockholders of record as of the close of business on November 26, 2025.

During the three and nine months ended September 30, 2025, we paid an aggregate of $ 987 million and $ 3.0 billion, respectively, in cash dividends to our stockholders, which were presented within Net cash (used in) provided by financing activities on our Condensed Consolidated Statements of Cash Flows, of which during the three and nine months ended September 30, 2025, $ 514 million and $ 1.6 billion, respectively, were paid to Deutsche Telekom AG (“DT”).

As of September 30, 2025, $ 1.1 billion for dividends payable is presented within Other current liabilities on our Condensed Consolidated Balance Sheets, of which $ 595 million is payable to DT.

During the three months ended September 30, 2025, we repurchased 10,204,072 shares of our common stock at an average price per share of $ 242.01 for a total purchase price of $ 2.5 billion, and during the nine months ended September 30, 2025, we repurchased 30,444,090 shares of our common stock at an average price per share of $ 243.36 for a total purchase price of $ 7.4 billion, under the 2025 Stockholder Return Program.

All shares repurchased during the three and nine months ended September 30, 2025, were purchased at market price.

As of September 30, 2025, we had up to $ 3.6 billion remaining under the 2025 Stockholder Return Program for repurchases of shares and quarterly dividends through December 31, 2025.

Note 12 – Earnings Per Share

The computation of basic and diluted earnings per share was as follows:

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(in millions, except shares and per share amounts) 2026 2025

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Ka’ena Acquisition earnout (2)

— 1,228,008 — 685,713

(1) For three and nine months ended September 30, 2025, the weighted-average number of shares issuable related to the Ka’ena Acquisition earnout (“Ka’ena Shares”) are included in our calculations of basic and diluted weighted-average shares outstanding based on the 20 trading day volume-weighted average price as of September 30, 2025, as further described below.

(2) Represents the Ka’ena Shares that were contingently issuable based on achievement of specified performance indicators from the Ka’ena Acquisition closing date of May 1, 2024, based on the maximum number of shares contingently issuable for the earnout and 20 trading day volume-weighted average price as of September 30, 2024.

As of September 30, 2025, we had authorized 100 million shares of preferred stock, with a par value of $ 0.00001 per share.

There was no preferred stock outstanding as of September 30, 2025 and 2024.

(1) For the three months ended March 31, 2026, the weighted-average number of shares issuable related to the Ka’ena Acquisition earnout (“Ka’ena Shares”) are included in our calculations of basic and diluted weighted-average shares outstanding based on the 20 trading day volume-weighted average price as of March 31, 2026, as further described below.

As of March 31, 2026, we had authorized 100 million shares of preferred stock, with a par value of $ 0.00001 per share.

There was no preferred stock outstanding as of March 31, 2026 and 2025.

Potentially dilutive securities were not included in the computation of diluted earnings per share if to do so would have been anti-dilutive.

1 unchanged sentence

The Ka’ena Shares issuable are included in the calculation of basic and diluted weighted-average shares outstanding for the three and nine months ended September 30, 2025.

The Ka’ena Shares issuable are included in the calculation of basic and diluted weighted-average shares outstanding for the three months ended March 31, 2026.

The Ka’ena Shares are expected to be issued after the Ka’ena Acquisition earnout payment date.

Index for Notes to the Condensed Consolidated Financial Statements

Note 15 – Leases

We 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:

Three Months Ended September 30, Nine Months Ended September 30,

(in millions) 2025 2024 2025 2024

Operating lease expense $ 1,263 $ 1,203 $ 3,636 $ 3,580

Financing lease expense:

Amortization of right-of-use assets 203 198 596 588

Interest on lease liabilities 31 33 96 83

Total financing lease expense 234 231 692 671

Variable lease expense 77 67 169 215

Total lease expense $ 1,574 $ 1,501 $ 4,497 $ 4,466

As of September 30, 2025, the weighted-average remaining lease term and discount rate for operating leases were 8 years and 4.5 %, respectively.

Maturities of lease liabilities as of September 30, 2025, were as follows:

(in millions) Operating Leases Finance Leases

Twelve Months Ending September 30,

2026 $ 4,813 $ 1,223

2027 4,759 816

2028 4,393 370

2029 4,072 26

Thereafter 14,703 8

Total lease payments 36,471 2,447

imputed interest ( 6,142 ) ( 104 )

Total $ 30,329 $ 2,343

Interest payments for financing leases were $ 31 million and $ 30 million for the three months ended September 30, 2025 and 2024, respectively, and $ 96 million and $ 79 million for the nine months ended September 30, 2025 and 2024, respectively.

As of September 30, 2025, we have additional operating leases for commercial properties that have not yet commenced with future lease payments of approximately $ 56 million.

As of September 30, 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.

In addition, through the master license agreement, we leased space on approximately 1,800 additional UScellular towers on an interim basis for up to 30 months after the UScellular Acquisition Date.

Index for Notes to the Condensed Consolidated Financial Statements

Note 13 – Commitments and Contingencies

Purchase Commitments

We 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 September 30, 2025:

(in millions) Less Than 1 Year 1 - 3 Years 3 - 5 Years More Than 5 Years Total

Purchase commitments (1)

$ 4,936 $ 5,703 $ 2,393 $ 2,773 $ 15,805

(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.

Sprint Merger Commitments

In connection with the regulatory proceedings and approvals of the Sprint Merger 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, we have commitments and other obligations to various state and federal agencies and certain nongovernmental organizations, including pursuant to the Consent Decree agreed to by us, DT, Sprint, SoftBank Group Corp.

(“SoftBank”) and DISH Network Corporation and entered by the U.S.

(“SoftBank”) and DISH Network Corporation (“DISH”) and entered by the U.S.

District Court for the District of Columbia, and the FCC’s memorandum opinion and order approving our applications for approval of the Sprint Merger.

These commitments and obligations include, among other things, extensive 5G network build-out commitments, obligations to deliver high-speed wireless services to the vast majority of Americans, including Americans residing in rural areas, and the marketing of an in-home broadband product where spectrum capacity is available.

Other commitments relate to national security, pricing, service, employment and support of diversity initiatives.

These commitments and obligations include, among other things, extensive 5G network build-out commitments, obligations to deliver high-speed wireless services to the vast majority of Americans, including Americans residing in rural areas, the marketing of an in-home broadband product where spectrum capacity is available and national security commitments.

Many of the commitments specify time frames for compliance and reporting.

Failure to fulfill our obligations and commitments in a timely manner could result in substantial fines, penalties, or other legal and administrative actions.

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Contingencies and Litigation

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We recognize legal costs expected to be incurred in connection with Litigation and Regulatory Matters as they are incurred.

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some or all of the specific matters identified below, or other matters that we are or may become involved in could have a material adverse impact on results of operations or cash flows for a particular period.

Except as otherwise specified below, we do not expect that the ultimate resolution of these Litigation and Regulatory Matters, individually or in the aggregate, will have a material adverse effect on our financial position, but we note that an unfavorable outcome of some or all of the specific matters identified below, or other matters that we are or may become involved in could have a material adverse impact on results of operations or cash flows for a particular period.

This assessment is based on our current understanding of relevant facts and circumstances.

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On August 15, 2025, a panel of three judges denied the petitions for review.

On September 22, 2025, T-Mobile and Sprint filed a petition for rehearing and rehearing en banc.

On January 23, 2026, the Court of Appeals denied T-Mobile’s petitions for rehearing and rehearing en banc.

T-Mobile intends to file a petition for a writ of certiorari with the United States Supreme Court.

We are unable to predict the potential outcome of those proceedings.

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Those matters include a wide variety of disputes, claims, government agency investigations and enforcement actions, and other proceedings.

These matters include, among other things, certain ongoing FCC and state government agency investigations into Sprint’s Lifeline program.

In September 2019, Sprint notified the FCC that it had claimed monthly subsidies for serving subscribers, even though these subscribers may not have met usage requirements under Sprint's usage policy for the Lifeline program, due to an inadvertent coding issue in the system used to identify qualifying subscriber usage that occurred in July 2017 while the system was being updated.

Sprint has made a number of payments to reimburse the federal government and certain states for excess subsidy payments.

We note that, pursuant to Amendment No.

2, dated as of February 20, 2020, to the Business Combination Agreement, dated as of April 29, 2018, by and among the Company, Sprint and the other parties named therein, SoftBank agreed to indemnify us against certain specified matters and losses, including those relating to the Lifeline matters described above.

Resolution of these matters could require us to make additional reimbursements and pay additional fines and penalties, which we do not expect to have a significant impact on our financial results.

We expect that any additional liabilities related to these indemnified matters would be indemnified and reimbursed by SoftBank.

On October 1, 2025, the pledge agreement entered into on December 26, 2023 substantially concurrently with the issuance to SoftBank of the T-Mobile common stock representing the true-up shares, as described in and pursuant to the terms of the Letter Agreement, dated February 20, 2020, by and between SoftBank, Deutsche Telekom AG and us, was terminated in accordance with the satisfaction of all active corresponding indemnification obligations.

On June 1, 2021, a putative shareholder class action and derivative lawsuit was filed in the Delaware Court of Chancery, Dinkevich v.

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On August 12, 2021, we became aware of a cybersecurity issue involving unauthorized access to T-Mobile’s systems (the “August 2021 cyberattack”).

We immediately began an investigation and engaged cybersecurity experts to assist with the assessment of the incident and to help determine what data was impacted.

Our investigation uncovered that the perpetrator had illegally gained access to certain areas of our systems on or about March 18, 2021, but only gained access to and took data of current, former, and prospective customers beginning on or about August 3, 2021.

With the assistance of our outside cybersecurity experts, we located and closed the unauthorized access to our systems and identified current, former and prospective customers whose information was impacted and notified them, consistent with state and federal requirements.

We also undertook a number of other measures to demonstrate our continued support and commitment to data privacy and protection.

We also coordinated with law enforcement.

Our forensic investigation is complete, and we believe we have a full view of the data compromised.

As a result of the August 2021 cyberattack, we have become subject to numerous lawsuits, including mass arbitration claims and multiple class action lawsuits that have been filed in numerous jurisdictions seeking, among other things, unspecified monetary damages, costs and attorneys’ fees arising out of the August 2021 cyberattack.

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All appeals have been resolved, and the settlement is now final.

Under the terms of the settlement, we have

Under the terms of the settlement, we have paid an aggregate of $ 350 million to fund claims submitted by class members, the legal fees of plaintiffs’ counsel and the costs

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paid an aggregate of $ 350 million to fund claims submitted by class members, the legal fees of plaintiffs’ counsel and the costs of administering the settlement.

of administering the settlement.

As required under the terms of the settlement, we have spent an aggregate of $ 150 million for data security and related technology in 2022 and 2023.

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In connection with the class action settlement and the separate settlements, we recorded a total pre-tax charge of approximately $ 400 million in the second quarter of 2022.

In addition, in September 2022, a purported Company shareholder filed a derivative action in the Delaware Court of Chancery under the caption Harper v.

Sievert, et al., Case No.

2022-0819-SG, against our current directors and certain of our former directors, alleging claims for breach of fiduciary duty relating to the Company’s cybersecurity practices.

We are also named as a nominal defendant in the lawsuit.

On May 31, 2024, the court issued an opinion dismissing the plaintiff’s complaint in its entirety.

The plaintiff appealed that decision, and on February 17, 2025, the Delaware Supreme Court affirmed the Court of Chancery’s decision dismissing the complaint.

We are unable at this time to predict whether we may be subject to further private litigation relating to the August 2021 cyberattack or the Company’s cybersecurity practices.

We have also received inquiries and contested legal proceedings from various government agencies, law enforcement and other governmental authorities related to the August 2021 cyberattack, which could result in substantial fines or penalties.

We reached an agreement with the FCC, which was announced on September 30, 2024, to resolve one of those inquiries.

We will continue to cooperate fully with the other agencies and regulators inquiring about the matter with an aim to resolve all of these matters.

While we hope to resolve them in the near term, we cannot predict the timing or outcome of any of these matters or whether we may be subject to further regulatory inquiries, investigations, or enforcement actions.

We will continue to respond to the other agencies and regulators inquiring about the matter with an aim to resolve all of these matters.

In light of the inherent uncertainties involved in such matters, and based on the information currently available to us, in addition to the previously recorded pre-tax charge of approximately $ 400 million noted above, we believe it is reasonably possible that we could incur additional losses associated with these proceedings and inquiries, and we will continue to evaluate information as it becomes known and will record an estimate for losses at the time or times when it is both probable that a loss has been incurred and the amount of the loss is reasonably estimable.

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Deutsche Telekom AG, et al.

2025-0211-PAF, against four DT

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entities, our current directors, and certain of our former directors, asserting breach of fiduciary duty and unjust enrichment claims relating to our 2022 Stock Repurchase Program and our 2023-2024 Stockholder Return Program.

2025-0211-PAF, against four DT entities, our current directors, and certain of our former directors, asserting breach of fiduciary duty and unjust enrichment claims relating to our 2022 Stock Repurchase Program and our 2023-2024 Stockholder Return Program.

We are also named as a nominal defendant in the lawsuit.

We are unable to predict the potential outcome of these claims.

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Note 14 – Restructuring Costs

UScellular Acquisition Restructuring Initiatives

Upon completing the UScellular Acquisition on August 1, 2025, we began implementing restructuring initiatives to realize cost efficiencies and eliminate redundancies.

The major activities associated with the UScellular Acquisition restructuring initiatives will include contract termination costs associated with the rationalization of retail stores, distribution channels, duplicative network and backhaul services and other agreements, severance costs associated with the integration of redundant processes and functions and the decommissioning of certain cell sites and distributed antenna systems to achieve synergies in network costs.

The following table summarizes the expenses incurred in connection with our UScellular Acquisition restructuring initiatives:

(in millions) Three Months Ended March 31, 2026 Incurred to Date

Contract termination costs $ 41 $ 73

Severance costs 26 89

Network decommissioning 18 34

Total restructuring plan expenses $ 85 $ 196

The expenses associated with our UScellular Acquisition restructuring initiatives are included in Cost of services and Selling, general and administrative expenses on our Condensed Consolidated Statements of Comprehensive Income.

Our UScellular Acquisition restructuring initiatives will also include the acceleration or termination of certain of our operating leases for cell sites, switch sites and retail stores.

Incremental expenses associated with terminated leases and leases for which we have recognized accelerated lease expense were $ 280 million for the three months ended March 31, 2026, and are included in Cost of services on our Condensed Consolidated Statements of Comprehensive Income.

Additionally, we recognized $ 229 million of accelerated depreciation for the three months ended March 31, 2026, related to assets associated with the decommissioning of cell sites, which is included in Depreciation and amortization on our Condensed Consolidated Statements of Comprehensive Income.

The changes in the liabilities associated with our UScellular Acquisition restructuring initiatives, including expenses incurred and cash payments, are as follows:

(in millions) December 31,

2025 Expenses Incurred Cash Payments March 31,

Contract termination costs $ 31 $ 41 $ ( 32 ) $ 40

Severance costs 59 26 ( 8 ) 77

Network decommissioning 1 18 ( 15 ) 4

Total $ 91 $ 85 $ ( 55 ) $ 121

The liabilities accrued in connection with our UScellular Acquisition restructuring initiatives are presented in Accounts payable and accrued liabilities on our Condensed Consolidated Balance Sheets.

Our UScellular Acquisition restructuring activities are expected to occur over the next two years , with substantially all costs incurred by the end of fiscal year 2027.

We are evaluating additional restructuring initiatives associated with the UScellular Acquisition, which are dependent on consultations and negotiations with certain counterparties and the expected impact on our business operations, which could affect the amount or timing of the restructuring costs and related payments.

Network Restructuring Initiative

Recent technological advancements have enhanced our Customer-Driven Coverage insights, enabling us to identify, assess and shut down low customer value sites.

In the fourth quarter of 2025, we began implementing restructuring initiatives to identify and realize these cost savings on our network, excluding activities associated with the UScellular Acquisition (the “Network Restructuring Initiative”).

The major activities associated with the Network Restructuring Initiative include the rationalization of network and backhaul services and the decommissioning of cell sites and distributed antenna systems to reduce our overall network cost.

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The following table summarizes the expenses incurred in connection with our Network Restructuring Initiative:

(in millions) Three Months Ended March 31, 2026 Incurred to Date

Contract termination costs $ 27 $ 32

Network decommissioning 38 102

Total restructuring plan expenses $ 65 $ 134

The expenses associated with our Network Restructuring Initiative are included in Cost of services on our Condensed Consolidated Statements of Comprehensive Income.

Our Network Restructuring Initiative also includes the termination of certain of our operating leases for cell sites and switch sites.

Incremental expenses associated with terminated leases and leases for which we have recognized accelerated lease expense were $ 11 million for the three months ended March 31, 2026, and are included in Cost of services on our Condensed Consolidated Statements of Comprehensive Income.

Additionally, we recognized $ 60 million of accelerated depreciation for the three months ended March 31, 2026, related to assets associated with the decommissioning of cell sites, which is included in Depreciation and amortization on our Condensed Consolidated Statements of Comprehensive Income.

The changes in the liabilities associated with our Network Restructuring Initiative, including expenses incurred and cash payments, are as follows:

(in millions) December 31,

2025 Expenses Incurred Cash Payments March 31,

Contract termination costs $ — $ 27 $ ( 14 ) $ 13

Network decommissioning 1 38 ( 12 ) 27

Total $ 1 $ 65 $ ( 26 ) $ 40

The liabilities accrued in connection with our Network Restructuring Initiative are presented in Accounts payable and accrued liabilities on our Condensed Consolidated Balance Sheets.

Our Network Restructuring Initiative is expected to be completed prior to the end of 2027, with a majority of costs incurred by the end of 2026.

We are evaluating additional restructuring activities associated with the Network Restructuring Initiative, which are dependent on consultations and negotiations with certain counterparties and the expected impact on our business operations, which could affect the amount or timing of the restructuring costs and related payments.

2025-2026 Workforce Transformation

In the fourth quarter of 2025, we began implementing a restructuring initiative to streamline operations by centralizing leaders and teams, reducing organizational layers and eliminating duplicative roles (the “2025-2026 Workforce Transformation”).

The following table summarizes the expenses incurred in connection with our 2025-2026 Workforce Transformation initiative:

(in millions) Three Months Ended March 31, 2026 Incurred to Date

Severance costs $ 141 $ 531

The expenses associated with our workforce reduction initiative are included in Cost of services and Selling, general and administrative expenses on our Condensed Consolidated Statements of Comprehensive Income.

The changes in the liabilities associated with our 2025-2026 Workforce Transformation initiative, including expenses incurred and cash payments, are as follows:

(in millions) December 31,

2025 Expenses Incurred Cash Payments March 31,

Severance costs $ 374 $ 141 $ ( 123 ) $ 392

The liabilities accrued in connection with our 2025-2026 Workforce Transformation initiative are presented in Accounts payable and accrued liabilities on our Condensed Consolidated Balance Sheets.

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We have incurred substantially all of the costs associated with our 2025-2026 Workforce Transformation.

We expect substantially all remaining associated employee separations and related cash outflows to occur in 2026.

Note 15 – Additional Financial Information

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Accounts payable and accrued liabilities are summarized as follows:

(in millions) September 30,

(in millions) March 31,

2026 December 31,

Accounts payable $ 4,573 $ 5,219

Property and other taxes, including payroll 1,534 1,524

Payroll and related benefits 1,316 1,709

Property and other taxes, including payroll 1,697 1,601

Accrued interest 1,073 1,025

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Accounts payable and accrued liabilities $ 9,522 $ 10,280

Book overdrafts included in Accounts payable were $ 339 million and $ 460 million as of September 30, 2025, and December 31, 2024, respectively.

Book overdrafts included in Accounts payable were $ 363 million and $ 823 million as of March 31, 2026 and December 31, 2025, respectively.

Supplemental Condensed Consolidated Statements of Cash Flows Information

The following table summarizes T-Mobile’s supplemental cash flow information:

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(in millions) 2026 2025

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Operating lease payments 1,537 1,214

Income tax payments 65 50 427 164

Income tax payments, net of refunds received 10 10

Non-cash investing and financing activities

Non-cash beneficial interest obtained in exchange for securitized receivables $ — $ 789 $ — $ 2,283

Change in accounts payable and accrued liabilities for purchases of property and equipment $ ( 357 ) $ ( 463 )

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Financing lease right-of-use assets obtained in exchange for lease obligations 222 248

Deferred consideration related to the Ka’ena Acquisition — — — 210

Debt assumed in the UScellular Acquisition 1,653 — 1,653 —

Cash and Cash Equivalents, Including Restricted Cash

Cash and cash equivalents, including restricted cash, presented on our Condensed Consolidated Statements of Cash Flows were included on our Condensed Consolidated Balance Sheets as follows:

(in millions) September 30,

(in millions) March 31,

2026 December 31,

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Note 16 – Subsequent Events

On October 2, 2025, we delivered notice of redemption on $ 1.5 billion aggregate principal amount of our 7.625 % Senior Notes due 2026.

We will redeem the notes at par on November 1, 2025.

On October 9, 2025, we issued $ 800 million of 4.625 % Senior Notes due 2033, $ 1.0 billion of 4.950 % Senior Notes due 2035 and $ 1.0 billion of 5.700 % Senior Notes due 2056.

On April 23, 2026, we announced that our Board of Directors increased the 2026 Stockholder Return Program authorization from up to $ 14.6 billion to up to $ 18.2 billion.

From April 1, 2026, through April 24, 2026, we repurchased 3,791,020 shares of our common stock at an average price per share of $ 195.87 for a total purchase price of $ 743 million.

See Note 11 - Stockholder Return Program for additional information.

On April 24, 2026, we entered into a definitive agreement with an affiliate of Wren House Infrastructure Management Limited (“Wren House”) to establish a joint venture that will acquire i3 Broadband, one of Wren House’s existing fiber portfolio companies.

The transaction with Wren House is expected to close in the second half of 2026, subject to customary closing conditions and regulatory approvals, at which time we expect to invest approximately $ 700 million to acquire a 50 % equity interest in the joint venture and substantially all existing residential fiber customers.

Additionally, on April 25, 2026, we entered

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into definitive agreements with affiliates of Oak Hill Capital Management, LLC (“Oak Hill”) to establish a joint venture that will acquire and combine GoNetspeed and Greenlight Networks, two of Oak Hill’s existing fiber portfolio companies.

The transaction with Oak Hill is expected to close in the first half of 2027, subject to customary closing conditions and regulatory approvals, at which time we expect to invest approximately $ 2.0 billion to acquire a 50 % equity interest in the joint venture and substantially all existing residential fiber customers.

We expect to account for these joint ventures under the equity method of accounting and recognize service revenues for the acquired fiber customers and wholesale costs paid to the joint venture for network access within Postpaid revenues and Cost of services, respectively, on our Condensed Consolidated Statements of Comprehensive Income.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements